Epic Pipeline Announces Purchase of Robstown, Texas, Fractionator and Associated Infrastructure from Southcross Holdings Borrower, LP

Source Press
Company Ares Management Corporation 
Tags Asset Deals, Deals, Pipelines/ tankers/ distribution
Date October 10, 2018

EPIC Midstream Holdings, LP (EPIC) today announced that a subsidiary of EPIC Y-Grade Holdings, LP, entered into a definitive equity purchase agreement with Southcross Holdings Borrower LP (Southcross Holdings) to acquire the Robstown NGL fractionation facility located near Corpus Christi, Texas. The purchase will also include a 57-mile pipeline that will enable the Robstown facility to receive natural gas liquids from various pipelines that allow the delivery of fractionated products to several Corpus Christi-area markets. EPIC will assume all of the NGL purchase and sale agreements associated with the fractionator including those with Southcross Energy Partners, LP, a Southcross Holdings affiliate.

The Robstown fractionator has a current capacity of 64 thousand barrels per day (MB/D) of NGLs with an expansion underway to 68 MB/D of capacity. The purchase of the Robstown fractionator provides immediate fractionation capacity to EPIC NGL customers via Sand Hills Pipeline. EPIC will have incremental NGL fractionation capacity during first quarter 2020 once its new 100 MB/D fractionation unit under construction near the Robstown facility comes online and the final phase of the EPIC NGL Pipeline is returned from early crude service in January 2020.

“EPIC is extremely pleased to meet our customers’ current need for NGL fractionation capacity in the Corpus Christi marketplace,” said Phillip Mezey, Chief Executive Officer of EPIC Pipeline.

“This acquisition will further expand EPIC’s NGL infrastructure asset base while allowing EPIC to immediately serve the rapidly developing Corpus Christi market,” said Nate Walton, Partner and Co-Head of North American Private Equity at Ares Management, L.P. (NYSE: ARES). The EPIC Pipelines are backed by capital commitments from funds managed by the Private Equity Group of Ares Management, L.P.

The completion of the transaction is subject to the satisfaction or waiver of customary closing conditions, including the expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and there being no law or injunction prohibiting the consummation of the transaction. EPIC expects to close the transaction in November.

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd