Company: PAGP
Filing Date: 2025-09-02
Form Type: 8-K
Source: 0001104659-25-086021
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Company: PLAINS GP HOLDINGS LP
Filing Date: 2025-09-02
Form: 8-K
Item: Item 1.01
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Item 1.01      Entry into a Material Definitive Agreement.  

On August 30, 2025,
a wholly-owned subsidiary (the “ Buyer”) of Plains All American Pipeline, L. P. (“ PAA”), a wholly-owned subsidiary
of Plains GP Holdings, L. P. (“ PAGP” or the “ Registrant”), entered into a definitive Purchase and Sale Agreement
(the “ PSA”) with subsidiaries of Diamondback Energy, Inc. and Kinetik Holdings Inc. (collectively, the “ Sellers”),
pursuant to which Buyer will purchase from Sellers an aggregate 55% non-operated interest in EPIC Crude Holdings, LP (“ EPIC Crude
Holdings”), the entity that owns and operates the EPIC Crude Oil Pipeline (the “ Pipeline”). The base purchase price
of approximately $1.57 billion is subject to adjustments and includes approximately $600 million of debt. Buyer has also agreed to a potential
earnout payment of approximately $193 million should an expansion of the Pipeline to a capacity of at least 900,000 barrels per day be
formally sanctioned before the end of 2027. PAA will guaranty certain of the Buyer’s obligations under the PSA.

The EPIC Pipeline provides long-haul crude oil
takeaway from the Permian and Eagle Ford basins to the Gulf Coast market at Corpus Christi. EPIC Crude Holdings’ assets include
approximately 800 miles of long-haul pipelines (including the EPIC Pipeline), operating capacity of over 600,000 barrels per day with
low-cost expansion capabilities, approximately 7 million barrels of operational storage, and over 200,000 barrels per day of export capacity.
The remaining 45% interest in EPIC Crude Holdings is owned by a portfolio company of Ares Management Corporation, which also serves as
operator.

The transaction is expected to close in the first
quarter of 2026, subject to satisfaction or waiver of customary closing conditions, including applicable regulatory approvals. The PSA
contains customary representations, warranties, covenants and termination provisions, as well as mutual indemnification provisions for
breaches of certain of the representations, warranties and covenants in the PSA, subject to certain limitations.

The foregoing description
of the PSA does not purport to be complete and is qualified in its entirety by reference to the full text of the PSA, which the Registrant
intends to file as an exhibit to its Quarterly Report on Form 10-Q for