Diamondback Energy, Inc. Announces the Sale of Its Equity Interest in Epic Crude Holdings, LP

Rhea-AI Summary

Diamondback Energy (NASDAQ:FANG) has announced the sale of its 27.5% equity interest in EPIC Crude Holdings, LP to Plains All American Pipeline subsidiary for approximately $500 million in upfront cash. The deal includes an additional $96 million contingent payment if EPIC Crude's capacity expansion is approved by 2027.

The transaction values EPIC Crude at $2.85 billion, with a $350 million contingent consideration component. The deal is expected to close by early 2026, subject to regulatory approvals. Diamondback will maintain its position as an anchor shipper on the EPIC Crude pipeline.

Positive

• Immediate cash injection of $500 million from the sale
• Potential additional $96 million contingent payment
• Meaningful return on invested capital as stated by CEO
• Maintains strategic relationship as anchor shipper

Negative

• Divestment of significant infrastructure asset stake (27.5%)
• Contingent payment dependent on expansion approval by 2027

MIDLAND, Texas, Sept. 02, 2025 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback”) today announced that its wholly owned subsidiaries have entered into a definitive agreement to sell their 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 before year-end 2027 (“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 transaction is expected to be completed by early 2026, subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

“This is a great outcome for Diamondback, generating a meaningful return on our invested capital,” stated Kaes Van’t Hof, Chief Executive Officer and Director of Diamondback. “We look forward to maintaining our strong commercial relationship with the EPIC Crude and Plains teams as an anchor shipper on the EPIC Crude pipeline.”

Advisors
Akin Gump Strauss Hauer & Feld LLP served as legal counsel to Diamondback.

About Diamondback Energy, Inc.
Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas. For more information, please visit www.diamondbackenergy.com.

Forward-Looking Statements
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which involve risks, uncertainties, and assumptions. All statements, other than statements of historical fact, including statements regarding Diamondback’s: future performance; business strategy; future operations (including drilling plans and capital plans); estimates and projections of revenues, losses, costs, expenses, returns, cash flow, and financial position; reserve estimates and its ability to replace or increase reserves; anticipated benefits of strategic transactions (including acquisitions and divestitures); and plans and objectives of management (including plans for future cash flow from operations and for executing environmental strategies) are forward-looking statements. When used in this news release, the words “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “model,” “outlook,” “plan,” “positioned,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” and similar expressions (including the negative of such terms) as they relate to Diamondback are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Although Diamondback believes that the expectations and assumptions reflected in its forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond Diamondback’s control. Accordingly, forward-looking statements are not guarantees of future performance and Diamondback’s actual outcomes could differ materially from what Diamondback has expressed in its forward-looking statements. Information concerning these risks and uncertainties and other factors can be found in Diamondback’s filings with the Securities and Exchange Commission ("SEC"), including its reports on Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on the SEC’s web site at http://www.sec.gov. Diamondback undertakes no obligation to update or revise any forward-looking statement unless required by applicable law.

Investor Contact:
Adam Lawlis
+1 432.221.7467
alawlis@diamondbackenergy.com 

FAQ

What is the value of Diamondback Energy's EPIC Crude Holdings sale to Plains?

Diamondback Energy (NASDAQ:FANG) is selling its stake for $500 million in upfront cash, plus a potential $96 million contingent payment.

What percentage stake is Diamondback Energy (FANG) selling in EPIC Crude Holdings?

Diamondback Energy is selling its 27.5% equity interest in EPIC Crude Holdings, LP.

When will Diamondback Energy's EPIC Crude sale close?

The transaction is expected to close by early 2026, subject to regulatory approvals including Hart-Scott-Rodino Antitrust clearance.

What is the total implied valuation for EPIC Crude in the Diamondback sale?

The transaction implies a $2.85 billion upfront valuation for 100% of EPIC Crude, plus $350 million in contingent consideration.

Will Diamondback Energy maintain its shipping relationship with EPIC Crude after the sale?

Yes, Diamondback will maintain its strategic relationship as an anchor shipper on the EPIC Crude pipeline.