(Bloomberg) -- Diamondback Energy, Inc. and Kinetik Holdings Inc. together acquired a 30% equity stake in Epic Crude, the pipeline operator that’s a unit of Epic Midstream.
Diamondback, the third-largest crude producer in the Permian Basin after agreeing to buy Endeavor Energy Resources LP earlier this year, and Kinetik now each own 27.5% of Epic Crude, the companies said in a statement Tuesday. Epic Midstream owns a 45% stake in Epic Crude and manages its operations.
With robust production out of the prolific US shale patch, companies are continuing to look for ways to transport oil and gas from wells to export terminals and refineries. Epic Crude transports more than 600 million barrels per day of oil along a a 700-mile pipeline that runs from Orla, Texas, to the Port of Corpus Christi and services the Midland, Delaware and Eagle Ford basins.
The deal with Epic Crude helps to ensure “reliable, cost-effective takeaway out of the basin for our expanded crude portfolio for a significant period of time,” Diamondback President Kaes Van’t Hof said in the statement.
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