SAN ANTONIO—EPIC Midstream Holdings LP Feb. 4 announced that Noble Midstream Partners LP (NYSE: NBLX) exercised its option for a 30% equity stake in the EPIC Crude Pipeline Project and a 15% equity stake in the EPIC NGL Pipeline while Altus Midstream Co. (Nasdaq: ALTM), through one of its subsidiaries; and Rattler Midstream LP, a subsidiary of Diamondback Energy, Inc. (Nasdaq: FANG), exercised options for 15% and 10%, respectively, in the EPIC Crude Pipeline Project.
Closing of the equity interest in each project is anticipated in February 2019 and subject to certain conditions precedent. The pro forma ownership for both projects is listed in the tables below.
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EPIC Crude Pipeline: |
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Company |
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Equity Ownership |
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EPIC |
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45% |
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Noble Midstream Partners LP |
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30% |
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Altus Midstream Company |
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15% |
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Rattler Midstream LP |
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10% |
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EPIC Y-Grade Pipeline: |
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Company |
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Equity Ownership |
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EPIC |
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75% |
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Noble Midstream Partners LP |
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15% |
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Salt Creek Midstream LLC |
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10% |
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“The strategic value of these projects to our shippers is clear through the exercising of the options by our partners,” said Phillip Mezey, CEO of EPIC. “Both projects remain on schedule and are critical to the continued development of the Permian Basin and Eagle Ford Shale.”
“We are thrilled to have our strategic partners as equity owners in developing these critical infrastructure assets. We believe the alignment of interest created by these equity investments will continue to be mutually beneficial over the long term,” said Nate Walton, Partner and Co-Head of North American Private Equity at Ares Management Corporation (NYSE: ARES).
EPIC was formed in 2017 to build, own and operate midstream infrastructure in both the Permian and Eagle Ford Basins. EPIC’s first two projects, the EPIC Crude Oil Pipeline and the EPIC NGL Pipeline, will transport crude and NGL across Texas for delivery into the Corpus Christi market. The EPIC Pipelines are backed by capital commitments from funds managed by the Private Equity Group of Ares Management Corp.
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