EPIC Crude Announces Completion of Its 30” Permanent Crude Oil Pipeline and Upsize of the Existing Term Loan
SAN ANTONIO, Texas--(BUSINESS WIRE)--Feb 26, 2020--
EPIC Crude Holdings, LP (“EPIC” or “the Company”) today announced the successful commissioning of its 30” permanent crude oil pipeline (the “Crude Oil Pipeline”). The Company is now making all crude oil deliveries out of the Crude Oil Pipeline and has ceased interim service deliveries from the 24” EPIC Y-Grade pipeline. The 30” Crude Oil Pipeline extends from EPIC’s Crane terminal to Robstown, TX, with an initial capacity of approximately 600,000 barrels of oil per day and is expected to be in full service on April 1, 2020. The pipeline currently has 2.3 million barrels of operational storage and will increase to a total of 5.4 million by April 1 st. Remaining construction of the project is primarily focused on installing an additional 2.1 million barrels of operational storage, bringing total storage to 7.5 million barrels, as well as completing the East Dock that is expected to be operational in the second half of 2020 adding the capability of loading Suezmax vessels. The West Dock began loading operations in December 2019 and is adjacent to the East Dock. Concurrently with the commissioning of the 30” Crude Oil Pipeline, EPIC has begun the clean out process and transition of the 24” Y-Grade pipeline back to NGL service.
“EPIC’s ability to provide crude oil transport out of the Permian Basin and into the Corpus Christi market highlights the strategic value of our assets,” said Phil Mezey, CEO of EPIC. “I would like to thank our employees, customers and contractors who have enabled us to provide this vital service and I also want to commend those who worked on the line over the past 8 months for their attention to and focus on safety.”
Additionally, EPIC announced that it has closed on a $100 million incremental upsize of its existing Term Loan B, bringing the total Term Loan B to $1.1 billion, and closed on a new, $75 million Term Loan C. The incremental debt raised is on the same terms as the original Term Loan B. Proceeds from both loans will fund additional capital expenditures associated with the Crude Oil Pipeline and EPIC’s terminals and docks.
About EPIC Crude Holdings, LP
EPIC Crude Holdings, LP (“EPIC Crude”) was formed in 2017 to build and operate the EPIC Crude Oil Pipeline, a 700-mile, crude oil pipeline which extends from Orla, TX to the Port of Corpus Christi, Texas, servicing the Delaware, Midland and Eagle Ford Basins. The 30” mainline will have an initial capacity of 600,000 barrels of oil per day, with throughput anticipated to begin ramping up during the first quarter of 2020. EPIC Crude will have approximately 7.5 million barrels of storage across the system. EPIC Crude is backed by capital commitments from funds managed by the Private Equity Group of Ares Management Corporation (NYSE: ARES) as well as additional equity ownership by Noble Midstream Partners, L.P. (NASDAQ: NBLX), Altus Midstream Company (NASDAQ: ALTM) and Rattler Midstream LP (NASDAQ: RTLR). For more information, visit www.epicmid.com.
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CONTACT: EPIC Midstream Holdings, LP
Corporate Communications Director
KEYWORD: UNITED STATES NORTH AMERICA TEXAS
INDUSTRY KEYWORD: OIL/GAS ENERGY
SOURCE: EPIC Crude Holdings, LP
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PUB: 02/26/2020 07:30 AM/DISC: 02/26/2020 07:30 AM