Plains All American Announces Closing of Acquisitions Totaling 100% Equity Interest in EPIC

On October 31, 2025, Plains All American Pipeline, L.P. (Nasdaq: PAA) (“Plains” “The Company”) completed the previously announced acquisition of a 55% equity interest in EPIC Crude Holdings, LP (“EPIC”), the entity that owns and operates the EPIC Crude Oil Pipeline (the “EPIC Pipeline”), from subsidiaries of Diamondback Energy, Inc. and Kinetik Holdings Inc.

Effective November 1, 2025, Plains completed the acquisition of the remaining 45% operated equity interest in EPIC, from a portfolio company of Ares Private Equity funds for a purchase price of approximately $1.33 billion, inclusive of approximately $500 million of debt. Additionally, Plains has agreed to a potential earnout payment of up to $157 million tied to certain expansions of the pipeline system by 2028. This transaction, along with the transaction described above, results in PAA owning a 100% equity interest in EPIC.

The acquisition of the remaining 45% interest in EPIC allows Plains to accelerate and increase synergy capture on the full system, including meaningful 2026 cost savings. The Company expects solid mid-teens returns with a 2026 EBITDA multiple of ~10x, improving significantly over the next few years. Going forward Plains intends to rename the system Cactus III, reflecting integration with its existing Cactus long-haul systems that it has operated for years.
 
“We have made significant progress in our journey of becoming the premier crude oil midstream provider. The pending divestiture of our NGL business, acquisition of EPIC, and streamlining efforts across the broader organization will provide tailwinds for the business despite near term macro volatility. We remain committed to our capital allocation framework and returning cash to unitholders. Our approximately 9.5% distribution yield is well supported with distribution coverage and offers an attractive opportunity to participate in energy markets where we expect improving oil market fundamentals” said Willie Chiang, Chairman, CEO, and President.