EPIC Announces Option Exercise by Affiliates of Noble Energy Inc., Apache Corporation and Diamondback Energy in Both the EPIC Crude and NGL Pipelines

Source Press Release
Company Altus Midstream CompanyAres Management CorporationDiamondback Energy Inc.Noble Midstream Partners LP 
Tags Asset Deals, Deals, Eagle Ford, Pipelines/ tankers/ distribution
Date February 04, 2019

Final phase of the NGL Pipeline remains on schedule and construction of the Crude Pipeline begins this month.

EPIC Midstream Holdings, LP (“EPIC” or “the Company”) today 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 Company (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.

EPIC Crude Pipeline:       
Company      Equity Ownership 
EPIC      45% 
Noble Midstream Partners LP      30% 
Altus Midstream Company      15% 
Rattler Midstream LP      10% 
       
       
EPIC Y-Grade Pipeline:       
Company      Equity Ownership 
EPIC      75% 
Noble Midstream Partners LP      15% 
Salt Creek Midstream LLC      10% 
       

“The strategic value of these projects to our shippers is clear through the exercising of the options by our partners,” said Phillip Mezey, Chief Executive Officer 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).

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd