Plains All American Pipeline, L.P. to acquire a 55% non-operated interest in EPIC Crude Holdings, LP.
Transaction valued at approximately $1.57 billion, including debt of about $600 million.
Expected to be immediately accretive to distributable cash flow with synergistic opportunities yielding mid-teens unlevered returns.
Transaction Value
Approximately $1.57 billion, inclusive of $600 million debt.
Accretive Impact
Expected immediate positive impact on distributable cash flow.
Synergistic Benefits
Anticipated synergies to result in mid-teens unlevered returns.
- The acquisition of a 55% interest in EPIC Crude Holdings expands Plains' reach in the crude oil midstream market.
- Enhanced upstream and downstream connectivity provides increased market optionality and customer offerings.
- The transaction strengthens Plains' existing Permian well-head to water strategy, further linking gathering systems to Corpus Christi for improved market access.
- Financial flexibility utilized to finance the acquisition while maintaining leverage ratio targets.
The acquisition of EPIC Crude Holdings marks a strategic move for Plains All American Pipeline, L.P., enhancing its position as a leading crude oil midstream provider with increased connectivity and market access opportunities.