Diamondback Energy and Kinetik Expand EPIC Crude Stake

Diamondback Energy and Kinetik Holdings have made significant moves to enhance their stake in EPIC Crude Holdings, LP, acquiring a combined 30% equity interest. Each company now holds 27.5% of EPIC Crude, while EPIC Midstream retains a 45% interest and manages operations. This strategic partnership aims to bolster the growth and financial profile of EPIC Crude, which currently transports over 600 MBpd and has secured long-term contracts for 90% of its expected 2025 volumes. The collaboration is particularly timely as Diamondback increases its crude commitment to 200 MBpd following its merger with Endeavor Energy Resources, positioning itself as a leading crude producer in the Permian Basin. Kinetik is also establishing a new transportation arrangement that connects its crude gathering system to the EPIC Crude pipeline, further enhancing operational efficiency. The long-term volume commitments from both companies are set to commence in 2025 and will extend through 2035, representing over one-third of EPIC Crude's total capacity. This strategic alignment is designed to reduce costs and improve financial returns for both partners, ensuring a reliable and cost-effective transportation solution for their crude products. Statements from company executives highlight the importance of these transactions in securing a preferred pipeline for Diamondback's expanded crude portfolio. The partnership is expected to generate additional value for customers seeking access to premium markets, reinforcing the companies' commitment to long-term success in the crude transportation sector.