Plains Takes Full Control of EPIC Crude; System to Be Renamed Cactus III

Plains All American has finalized its acquisition of the EPIC Crude Pipeline, gaining full ownership and plans to rebrand the system as Cactus III. The deal is expected to deliver mid-teens returns and cost synergies as Plains integrates the line with its existing Cactus network.

(P&GJ) — Plains All American Pipeline said it has completed deals to acquire 100% of EPIC Crude Holdings, LP, taking full ownership of the EPIC Crude Oil Pipeline and planning to rename the system “Cactus III” as it integrates the asset with Plains’ existing Cactus long-haul network.

Plains closed the remaining 45% operated equity interest on Nov. 1 from a portfolio company of Ares Private Equity funds for about $1.33 billion, including approximately $500 million of debt, and agreed to a potential earn-out of up to $157 million tied to certain expansions by 2028. On Oct. 31, Plains completed the previously announced purchase of the other 55% from Diamondback Energy and Kinetik Holdings, resulting in full ownership of EPIC.

Plains said full control enables it to accelerate and increase synergy capture across the system, with “meaningful 2026 cost savings.” The company targets “solid mid-teens returns” with a ~10x 2026 EBITDA multiple, improving in subsequent years, and expects leverage to move toward ~3.5x after the acquisitions and the planned Canadian NGL divestiture (anticipated by Q1 2026).

“We have made significant progress in our journey of becoming the premier crude oil midstream provider,” Chairman, CEO, and President Willie Chiang said. “The pending divestiture of our NGL business, acquisition of EPIC, and streamlining efforts across the broader organization will provide tailwinds for the business despite near term macro volatility. We remain committed to our capital allocation framework and returning cash to unitholders. Our approximately 9.5% distribution yield is well supported with distribution coverage and offers an attractive opportunity to participate in energy markets where we expect improving oil market fundamentals.”

For context, Plains reported Q3 2025 net income attributable to PAA of $441 million and Adjusted EBITDA attributable to PAA of $669 million. The company maintained its 2025 Adjusted EBITDA outlook at $2.84–$2.89 billion, which includes about $40 million of contribution from the EPIC acquisition.