EPIC Pipeline Announces Purchase of Robstown, Texas, Fractionator and Associated Infrastructure from Southcross Holdings Borrower, LP
EPIC Midstream Holdings, LP (EPIC) today announced that a subsidiary of
EPIC Y-Grade Holdings, LP, entered into a definitive equity purchase
agreement with Southcross Holdings Borrower LP (Southcross Holdings) to
acquire the Robstown NGL fractionation facility located near Corpus
Christi, Texas. The purchase will also include a 57-mile pipeline that
will enable the Robstown facility to receive natural gas liquids from
various pipelines that allow the delivery of fractionated products to
several Corpus Christi-area markets. EPIC will assume all of the NGL
purchase and sale agreements associated with the fractionator including
those with Southcross Energy Partners, LP, a Southcross Holdings
affiliate.
The Robstown fractionator has a current capacity of 64 thousand barrels
per day (MB/D) of NGLs with an expansion underway to 68 MB/D of
capacity. The purchase of the Robstown fractionator provides immediate
fractionation capacity to EPIC NGL customers via Sand Hills Pipeline.
EPIC will have incremental NGL fractionation capacity during first
quarter 2020 once its new 100 MB/D fractionation unit under construction
near the Robstown facility comes online and the final phase of the EPIC
NGL Pipeline is returned from early crude service in January 2020.
“EPIC is extremely pleased to meet our customers’ current need for NGL
fractionation capacity in the Corpus Christi marketplace,” said Phillip
Mezey, Chief Executive Officer of EPIC Pipeline.
“This acquisition will further expand EPIC’s NGL infrastructure asset
base while allowing EPIC to immediately serve the rapidly developing
Corpus Christi market,” said Nate Walton, Partner and Co-Head of North
American Private Equity at Ares Management, L.P. (NYSE: ARES). The EPIC
Pipelines are backed by capital commitments from funds managed by the
Private Equity Group of Ares Management, L.P.
The completion of the transaction is subject to the satisfaction or
waiver of customary closing conditions, including the expiration or
termination of any applicable waiting period under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended, and there being no law
or injunction prohibiting the consummation of the transaction. EPIC
expects to close the transaction in November.
About EPIC Pipeline
EPIC was formed in 2017 to build, own, and operate midstream
infrastructure in both the Permian and Eagle Ford Basins. EPIC’s first
two projects, the EPIC Crude Oil Pipeline and the EPIC NGL Pipeline,
will transport crude and NGL across Texas for delivery into the Corpus
Christi market. For more information, visit www.epicmid.com.
About Ares Management, L.P.
Ares Management, L.P. is a publicly traded, leading global alternative
asset manager with approximately $121.4 billion of assets under
management as of June 30, 2018 and 18 offices in the United States,
Europe, Asia and Australia. Since its inception in 1997, Ares has
adhered to a disciplined investment philosophy that focuses on
delivering strong risk-adjusted investment returns throughout market
cycles. Ares believes each of its three distinct but complementary
investment groups in Credit, Private Equity and Real Estate is a market
leader based on assets under management and investment performance. Ares
was built upon the fundamental principle that each group benefits from
being part of the greater whole. For more information, visit www.aresmgmt.com.
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Copyright Business Wire 2018
Source: Business Wire
(October 10, 2018 - 6:30 AM EDT)
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