Kinetik To Divest 27.5% Stake In EPIC Crude To Plains For ~$500M Upfront, $96M Contingent; Implies $2.85B Valuation

Benzinga · 09/02/2025 12:12

Kinetik Holdings Inc. (NYSE:KNTK) ("Kinetik" or the "Company") today announced it has entered into a definitive agreement to divest and directly transfer its 27.5% equity interest in EPIC Crude Holdings, LP ("EPIC Crude"), an affiliate of EPIC Midstream Holdings LP, to a wholly owned subsidiary of Plains All American Pipeline, L.P. and Plains GP Holdings (collectively "Plains") for approximately $500 million in net upfront cash and an additional $96 million contingent cash payment due should a capacity expansion of EPIC Crude be formally sanctioned ("Contingent Consideration"). The transaction terms imply an upfront valuation for 100% of EPIC Crude at $2.85 billion and $350 million for the Contingent Consideration.

The cash proceeds 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.