Apache Corporation & Noble Energy to
Anchor EPIC Crude Oil Pipeline, Anticipated to be Online in the
Second Half of 2019EPIC Pipelines Backed by Ares Management
Private Equity Group
EPIC Midstream Holdings, LP (“EPIC”) announced today that it has
secured strategic partnerships for the EPIC Crude Oil Pipeline,
which will run side-by-side with the EPIC Natural Gas Liquids
(“NGL”) Pipeline for 730 miles from southeastern New Mexico to
Corpus Christi, Texas. The EPIC Pipelines are backed by capital
commitments from funds managed by the Private Equity Group of Ares
Management, L.P. (NYSE: ARES).
Apache Corporation (NYSE, NASDAQ: APA) and Noble Energy
(NYSE:NBL) have committed to anchor the EPIC Crude Oil Pipeline,
which will have an initial total capacity of 590 thousand barrels
of oil per day (MBbl/d), including 440 MBbl/d from the Permian
Basin and 150 MBbl/d from the Eagle Ford. Apache and Noble Energy
have secured 75 MBbl/d and 100 MBbl/d of firm capacity,
respectively. More than 500,000 acres have been dedicated to the
EPIC Crude Oil Pipeline, including dedications from Apache and
Noble Energy. At least 10 percent of system capacity will be
reserved for Uncommitted Shippers.
Additionally, EPIC is engaged in ongoing commercial negotiations
representing at least 500 MBbl/d in potential volume commitments
and acreage dedications for the crude pipeline, in addition to 175
MBbl/d capacity provided to Apache and Noble Energy. Pending the
final result of the commercial process, the EPIC Crude Oil Pipeline
may be upsized to a 30-inch line, expanding Permian Basin capacity
from 440 MBbl/d to 675 MBbl/d.
“As one of the largest acreage holders in the Permian Basin,
Apache’s participation in the EPIC Crude Oil Pipeline helps to
ensure takeaway capacity for our production from the region. The
partnership enhances our long-term operational flexibility and
market optionality in our Delaware and Midland Basin focus areas,”
said Brian Freed, Apache’s Senior Vice President, Midstream and
Marketing. He noted that the EPIC crude oil partnership aligns with
previously contracted shipping from the region and complements the
significant field infrastructure being built for the development of
Alpine High, a world-class oil, natural gas liquids and gas field
the company discovered in 2016.
“Noble Energy’s strategic agreement with EPIC provides long-term
flow assurance for our rapidly growing Delaware Basin oil volumes.
With this agreement, we have further diversified our onshore
marketing outlets with access to the Gulf Coast and global
markets,” said Gary W. Willingham, Noble Energy’s Executive Vice
President, Operations.
“Partnering with Apache and Noble Energy adds tremendous
strategic value to EPIC as we build out our crude footprint,” said
Phillip Mezey, Chief Executive Officer of EPIC Pipeline.
“We are excited to be partnering with some of the leading energy
companies in the world to develop these critical infrastructure
assets,” said Nate Walton, Partner and Co-Head of North American
Private Equity at Ares Management.
As part of their EPIC strategic partnerships, Apache will have
an option to acquire up to 15% of the equity in the EPIC Crude Oil
Pipeline, and Noble will have an option to acquire up to 30% of
equity in the EPIC Crude Oil Pipeline, as well as up to 15% of the
EPIC NGL Pipeline. All options expire in the first quarter of
2019.
The EPIC Crude Oil Pipeline will extend from Orla,Texas to the
Port of Corpus Christi, Texas. The project includes terminals in
Orla, Pecos, Saragosa, Crane, Wink, Midland, Helena and Gardendale,
with Port of Corpus Christi connectivity and export access. It will
service the Delaware, Midland and Eagle Ford Basins. Right of way
is 100 percent secured for the first two phases of the system and
construction is expected to commence in the fourth quarter of 2018.
The crude system is expected to be in service in the second half of
2019.
The EPIC NGL Pipeline has previously signed definitive
agreements with BP Energy Company to anchor the pipeline and has
also entered into a strategic arrangement with Salt Creek
Midstream. Phase One of the EPIC NGL Pipeline is currently in
operation, and it extends from DLK Black River Midstream to
Delaware Basin Midstream. Phase Two, which will run from Delaware
Basin Midstream to Benedum, Texas, is currently under construction
with an expected in-service date of June 2018. Phase Three, which
will run from Benedum to Corpus Christi is expected to be in
service by the second half of 2019.
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 Apache
Apache Corporation is an oil and gas exploration and production
company with operations in the United States, Egypt and the United
Kingdom. Apache posts announcements, operational updates, investor
information and copies of all press releases on its website,
www.apachecorp.com, and on its Media and Investor Center mobile
application, which is available for free download from the Apple
App Store and the Google Play store.
About Noble Energy
Noble Energy (NYSE:NBL) is an independent oil and natural gas
exploration and production company with a diversified high-quality
portfolio of both U.S. unconventional and global offshore
conventional assets. Founded more than 85 years ago, the Company is
committed to safely and responsibly delivering our purpose:
Energizing the World, Bettering People’s Lives®. For more
information, visit www.nblenergy.com.
About Salt Creek Midstream
Formed in 2017, Houston-headquartered Salt Creek Midstream, LLC
(“Salt Creek”) is a joint venture of ARM Energy Holdings LLC and
funds managed by Ares Management, L.P. Salt Creek is a full service
midstream provider, offering gas and crude gathering, compression,
cryogenic processing and treating services. The greenfield
development project spans more than 250,000 acres across Culberson,
Reeves, Ward, Winkler, Lea, Pecos, and Eddy Counties within the
Delaware Basin.
About BP
BP Energy Company is part of the BP p.l.c. group of companies.
BP's marketing and trading business delivers energy supplies around
the world, while offering financial services that help investors
guard against fluctuations in energy prices. It works with a wide
range of companies, as well as other BP businesses, to buy, sell
and transport commodities such as natural gas, natural gas liquids,
power, crude oil, chemicals, sulphur and refined products. For more
information about BP's NGLs business, please contact Steve Hanan,
SVP Business Development (steve.hanan@bp.com).
About Ares Management
Ares Management, L.P. is a publicly traded, leading global
alternative asset manager with approximately $112.5 billion of
assets under management as of March 31, 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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version on businesswire.com: https://www.businesswire.com/news/home/20180510006363/en/
EPIC Midstream Holdings, LPBruce Kates, 210-446-1056Corporate
Communications Directorbruce.kates@epicmid.com
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