EPIC Crude pipeline owners weighing $3B sale - Reuters

[Golden pipes going to oil refinery]
kodda/iStock via Getty Images

The owners of the EPIC Crude pipeline - one of the major pipelines transporting oil from the Permian and Eagle Ford basins in Texas to export facilities on the U.S. Gulf coast - are weighing a potential sale [https://www.reuters.com/legal/transactional/epic-crude-pipeline-owners-explore-3-billion-sale-sources-say-2025-08-25/], with any deal likely valued in the $2.5B-$3.5B range including debt, Reuters reported Monday.

Ares Management (NYSE:ARES [https://seekingalpha.com/symbol/ARES]) owns ~45% of EPIC Midstream, the company which holds EPIC Crude, with the rest held equally by Diamondback Energy (NASDAQ:FANG [https://seekingalpha.com/symbol/FANG]) and Kinetik Holdings (NYSE:KNTK [https://seekingalpha.com/symbol/KNTK]).

The owners are working with investment bankers on the sale and have begun reaching out to prospective buyers, according to the report.

Diamondback (NASDAQ:FANG [https://seekingalpha.com/symbol/FANG]) CEO Kaes Van't Hof and Kinetik (NYSE:KNTK [https://seekingalpha.com/symbol/KNTK]) CEO Jamie Welch indicated in their earnings conference calls earlier this month (I [https://seekingalpha.com/article/4808921-diamondback-energy-inc-fang-q2-2025-earnings-conference-call-transcript], II [https://seekingalpha.com/article/4811511-kinetik-holdings-inc-kntk-q2-2025-earnings-call-transcript]) that they may be open to selling their stakes in EPIC Crude, which are not core to their main businesses.

EPIC Crude has a capacity of more than 600K bbl/day and could be expanded to carry up to 1M bbl/day; in addition to more than 700 miles of pipeline, EPIC Crude includes ~6.8M barrels of storage capacity.

MORE ON ARES MANAGEMENT, DIAMONDBACK ENERGY AND KINETIK HOLDINGS

* Ares Management: Rapid Growth In Alternative Investments [https://seekingalpha.com/article/4802096-ares-management-rapid-growth-in-alternative-investments]
* Diamondback Energy: Long-Term Strategy Again At The Forefront [https://seekingalpha.com/article/4802096-ares-management-rapid-growth-in-alternative-investments]
* Kinetik Cut Guidance By 5% But Stock Looks Attractive At A 7+% Yield [https://seekingalpha.com/article/4814503-kinetik-cut-guidance-by-5-percent-stock-attractive-at-7-plus-percent-yield]