Kinetik Sells 27.5% Stake in Epic Crude for $500M

By Tamara Parker • Saturday, September 06 15:35 • Permanent Link

Kinetik Holdings Inc. (NYSE: KNTK) has just announced the sale of its 27.5% equity interest in Epic Crude Holdings, LP to a subsidiary of Plains All American Pipeline, L.P. and Plains GP Holdings for approximately $500 million in net upfront cash. Additionally, there is a potential $96 million contingent cash payment if a capacity expansion of Epic Crude is formally sanctioned.

The transaction values 100% of Epic Crude at $2.85 billion upfront and $350 million for the contingent consideration. Jamie Welch, Kinetik's President & CEO, highlighted that the sale is part of the company's commitment to maximizing long-term shareholder value. The cash proceeds from this sale will be used for general corporate purposes.

The deal is expected to close by early 2026, subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Vinson & Elkins LLP served as legal counsel to Kinetik in this transaction.

Kinetik is a fully integrated, pure-play, Permian-to-Gulf Coast midstream C-Corporation operating in the Delaware Basin. The company is headquartered in Houston and Midland, Texas, and provides comprehensive gathering, transportation, compression, processing, and treating services for companies that produce natural gas, natural gas liquids, crude oil, and water. The market has reacted to these announcements by moving the company's shares -1.73% to a price of $41.95. If you want to know more, read the company's complete 8-K report here.

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