09:23 AM EDT, 09/02/2025 (MT Newswires) -- Plains All American Pipeline ( PAA ) and Plains GP Holdings ( PAGP ) said Tuesday that a unit has agreed to acquire a 55% non-operated interest in Epic Crude Holdings from units of Diamondback Energy ( FANG ) and Kinetik Holdings ( KNTK ) in a deal valued at $1.57 billion, inclusive of $600 million of debt.

Epic Crude Holdings owns and operates the Epic Crude Oil Pipeline, Plains said, adding that Epic Crude Holdings' assets include an operating capacity of more than 600,000 barrels per day.

Plains said it has agreed to a potential $193 million earnout payment if the pipeline is expanded to a capacity of at least 900,000 barrels per day before year-end 2027.

The deal is slated to be completed by early next year, Plains said.

The transaction is expected to be immediately accretive to distributable cash flow with synergistic opportunities expected to result in mid-teens unlevered returns, Plains said.

The remaining 45% interest in Epic Crude is owned by a portfolio company of Ares Management (ARES), which also serves as operator, Plains said.