Plains All American Pipeline completed the acquisition of 100% equity interest in EPIC Crude Holdings, LP in October and November 2025, taking full control of an 800-mile crude oil pipeline system connecting the Permian Basin and Eagle Ford to the Gulf Coast at Corpus Christi. The combined transaction value exceeded $2.9 billion, making it one of the largest midstream deals of 2025 and a defining move in Plains’ strategy to consolidate crude oil transportation from wellhead to export terminal.
How Plains All American Secured Full Ownership of EPIC
The deal was executed in two stages. Plains first announced in September 2025 a definitive agreement to acquire a 55% non-operated interest in EPIC Crude Holdings from subsidiaries of Diamondback Energy and Kinetik Holdings for approximately $1.57 billion, inclusive of $600 million of debt. That transaction closed on October 31, 2025.
The following day, Plains completed the acquisition of the remaining 45% operated interest from a portfolio company of Ares Private Equity funds for approximately $1.33 billion, inclusive of $500 million of debt. The back-to-back closings gave Plains 100% ownership of the system within 24 hours. A potential earnout of up to $157 million remains contingent on pipeline expansion milestones being met by 2028.
The EPIC Pipeline: Assets and Capacity
The acquired system — now being rebranded as Cactus III by Plains, reflecting integration with its existing Cactus long-haul pipeline network — comprises approximately 800 miles of long-haul crude oil pipelines running from the Permian Basin and Eagle Ford to the Gulf Coast market at Corpus Christi. Operating capacity exceeds 600,000 barrels per day, with low-cost expansion potential that could take the system to at least 900,000 barrels per day if formally sanctioned before year-end 2027.
The asset portfolio includes approximately 7 million barrels of operational storage and over 200,000 barrels per day of export capacity at Corpus Christi. The system is underpinned by long-term minimum volume commitments from a roster of Permian producers, providing predictable cash flows and revenue stability across commodity price cycles. Plains expects a 2026 EBITDA multiple of approximately 10x on the combined acquisition, improving materially as synergies are captured across the integrated system.
For context on how major crude oil pipeline companies are repositioning their Permian infrastructure in 2026, the Plains-EPIC deal sits alongside a broader wave of consolidation as operators seek wellhead-to-water integration across the basin.
Strategic Logic: Permian Wellhead to Water
Plains All American has framed the EPIC acquisition explicitly as an extension of its Permian wellhead-to-water strategy — the ambition to control crude oil movement from production site to export terminal without a handoff to a third-party system. By combining the Cactus III system with its existing Permian gathering networks and Eagle Ford infrastructure, Plains can offer producers a single integrated route from the wellhead to Corpus Christi export berths.
The strategic rationale also includes synergy capture. Plains highlighted meaningful 2026 cost savings from operating the full system under single ownership, compared to the previous non-operated 55% stake structure where Ares-backed EPIC Management retained operational control. Full ownership removes that friction and allows Plains to optimise throughput, scheduling, and tariff structures across the combined network.
Plains simultaneously progressed the divestiture of its Canadian NGL business to Keyera Corp, a transaction expected to close by end of Q1 2026. The two moves together — acquiring a high-margin US crude pipeline system while exiting lower-margin Canadian NGL operations — represent a deliberate portfolio reshaping toward crude oil midstream as Plains’ primary value driver. As the upstream sector in the Permian Basin continues to grow production volumes through 2026, integrated takeaway capacity of this scale becomes increasingly strategic.
Plains All American in 2026: Financial Position and Outlook
Plains All American (Nasdaq: PAA) reported full-year 2025 Adjusted EBITDA guidance of $2.84 to $2.89 billion, inclusive of approximately $40 million contribution from the EPIC acquisition in the final weeks of the year. The company targets a leverage ratio of approximately 3.5x post-acquisition and post NGL divestiture — within its established range and supported by the cash flows underpinning its approximately 9.5% distribution yield.
Plains is headquartered in Houston, Texas, and operates one of North America’s largest crude oil midstream networks. The EPIC acquisition — now integrated as Cactus III — adds a strategically positioned long-haul system that directly connects two of the continent’s most prolific producing basins to a major export hub. The Western Gateway Pipeline announced by Phillips 66 and Kinder Morgan earlier in 2026 signals that Permian takeaway infrastructure remains a high-conviction investment theme across the sector, with Plains now holding a strengthened position in the Gulf Coast export corridor.
For more information on Plains All American’s operations, visit plains.com.
Did Plains All American complete the EPIC Crude Pipeline acquisition?
Yes. Plains All American completed the acquisition of 100% equity interest in EPIC Crude Holdings across two back-to-back closings on October 31 and November 1, 2025. The 55% stake from Diamondback Energy and Kinetik Holdings closed first, followed immediately by the remaining 45% from Ares Private Equity funds.
What is the total value of Plains All American’s EPIC acquisition?
The combined transaction exceeded $2.9 billion. The initial 55% stake was valued at approximately $1.57 billion inclusive of $600 million of debt. The remaining 45% cost approximately $1.33 billion inclusive of $500 million of debt. A further earnout of up to $157 million is contingent on pipeline expansion milestones being met by 2028.
What is the EPIC Crude Pipeline being renamed?
Plains All American intends to rebrand the EPIC Crude Oil Pipeline as Cactus III, integrating it with the company’s existing Cactus long-haul pipeline systems that it has operated for years in the Permian Basin.
What assets does the EPIC pipeline system include?
The system comprises approximately 800 miles of long-haul crude oil pipelines running from the Permian Basin and Eagle Ford to Corpus Christi on the Gulf Coast. It has operating capacity exceeding 600,000 barrels per day, approximately 7 million barrels of operational storage, and over 200,000 barrels per day of export capacity.
What is Plains All American’s strategy behind the EPIC acquisition?
Plains framed the deal as a core part of its Permian wellhead-to-water strategy — controlling crude oil transportation from production site to Gulf Coast export terminal without third-party handoffs. Full ownership of Cactus III eliminates the operational friction of the previous non-operated structure and enables synergy capture across Plains’ integrated Permian and Eagle Ford network.