Diamondback Energy Subsidiaries To Sell 27.5% Equity Interest In EPIC Crude

(RTTNews) - Diamondback Energy, Inc. (FANG) said its subsidiaries have entered into a definitive agreement to sell their 27.5% equity interest in EPIC Crude Holdings, LP, an affiliate of EPIC Midstream Holdings LP, to a subsidiary of Plains All American Pipeline, L.P. and Plains GP Holdings for approximately $500 million in net upfront cash and an additional $96 million contingent cash payment. The terms imply an upfront valuation for 100% of EPIC Crude at $2.85 billion and $350 million for the contingent consideration.

"This is a great outcome for Diamondback, generating a meaningful return on our invested capital," said Kaes Van't Hof, CEO and Director of Diamondback.