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, with an additional $96 million contingent cash payment if a capacity expansion of Epic Crude is formally sanctioned. This results in an upfront valuation for 100% of Epic Crude at $2.85 billion and $350 million for the contingent consideration.
The company's president and chief executive officer, Jamie Welch, stated that the transaction represents an opportunity to maximize long-term shareholder value by recycling proceeds from non-core asset sales to attractive growth projects and potentially accelerating shareholder returns. The cash proceeds from the sale will be used for general corporate purposes.
The transaction is expected to close by early 2026, subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Kinetik Holdings Inc. is a fully integrated, pure-play, Permian-to-Gulf Coast midstream C-corporation operating in the Delaware Basin, with headquarters in Houston and Midland, Texas. The company provides comprehensive gathering, transportation, compression, processing, and treating services for companies that produce natural gas, natural gas liquids, crude oil, and water. Following these announcements, the company's shares moved -1.73%, and are now trading at a price of $41.95. Check out the company's full 8-K submission here.
