EPIC Crude Pipeline Owners Explore $3 Billion Sale

The owners of the EPIC Crude pipeline, including Ares Management which holds a 45% stake, along with Diamondback Energy and Kinetik Holdings, are exploring a potential sale of the pipeline valued between $2.5 billion and $3.5 billion including debt. EPIC Crude is a significant pipeline transporting oil from Texas shale basins to U.S. Gulf Coast export facilities, with a capacity exceeding 600,000 barrels per day since its full service commencement in 2020. The owners have engaged investment bankers and begun reaching out to potential buyers, with pipeline companies that have existing Permian assets seen as the most likely acquirers. While a sale is not guaranteed, Diamondback and Kinetik have signaled openness to divesting their stakes as part of broader asset management strategies. Analysts project a moderate upside for Ares Management's stock price, though some valuation models suggest a potential downside. The pipeline sale could impact Ares Management’s financial outlook as it represents a major asset in their portfolio.