By Dean Seal
Diamondback Energy and Kinetik Holdings have jointly acquired a 30% equity interest in EPIC Crude Holdings, bringing each company's stake in the oil pipeline network up to 27.5% apiece.
The companies said Tuesday that they have entered into a series of transactions with EPIC Midstream Holdings, of which EPIC Crude is an affiliate, to support the network's growth and financial profile.
The financial terms of the equity investment weren't disclosed. EPIC Midstream still holds a 45% equity interest in EPIC Crude and manages its operations.
Diamondback said it plans to convert its existing commitments on EPIC Crude into a significantly larger volume commitment to accommodate additional barrels from Diamondback's recent merger with Endeavor Energy Resources. The merger has made Diamondback the third-largest crude producer in the Permian Basin.
Kinetik meanwhile has signed a new transportation agreement with EPIC Crude and formed a new connection between its crude gathering system and the EPIC Crude pipeline.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
September 24, 2024 07:30 ET (11:30 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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