Plains GP Holdings, L.P. (PAGP) has reported the completion of a transaction to acquire 100% ownership of EPIC Crude Holdings, LP, the entity that owns and operates the Cactus III Pipeline. The acquisition was finalized through two separate steps completed in October and November 2025. On October 31, 2025, a wholly-owned subsidiary of Plains All American Pipeline, L.P. (PAA), purchased a 55% non-operated equity interest in EPIC Crude Holdings and the general partner interest from subsidiaries of Diamondback Energy, Inc. and Kinetik Holdings Inc. On November 1, 2025, the subsidiary purchased the remaining 45% equity interest and general partner interest from a subsidiary of Ares Management LLC.
Following these transactions, Plains All American Pipeline, L.P. now indirectly owns 100% of the equity interests in EPIC Crude Holdings and 100% of the membership interests in EPIC GP, and serves as the operator of record for the Cactus III Pipeline. The deal is accounted for as a business combination under Financial Accounting Standards Board Accounting Standards Codification 805. The company has provided unaudited pro forma financial information for the year ended December 31, 2025, which reflects the combined operations of PAGP and EPIC Crude Holdings as if the transaction occurred on January 1, 2025.
The pro forma financials indicate combined revenues of $44.464 billion for the year ended December 31, 2025. The unaudited pro forma condensed statement of combined continuing operations shows an operating income of $1.518 billion and net income attributable to PAGP of $135 million. The pro forma adjustments include the elimination of EPIC Crude Holdings' historical depreciation and amortization of $96 million, the addition of incremental depreciation expense of $47 million, and incremental amortization expense of $55 million. Additionally, the pro forma statement includes interest expense of $634 million, representing the interest on $1.901 billion of financing as if it were outstanding for the full year.
