EPIC Midstream Holdings LP announced July 26 that the EPIC crude oil pipeline successfully closed its first open season and has executed definitive agreements to add Diamondback Energy Inc. (NASDAQ: FANG) as a strategic partner and signed other new primary shippers.

Diamondback will have 50,000 barrels of oil per day (bbl/d) of capacity on the EPIC Crude Oil Pipeline. As a strategic partner, Diamondback, via its subsidiary Rattler Midstream LLC, will also have an option to acquire up to 5% of the equity in the EPIC crude oil pipeline, with the option expiring in first-quarter 2019.

Other newly signed primary shippers have secured 200,000 bbl/d of capacity, which include minimum volume commitments of 150,000 bbl/d on the EPIC crude oil pipeline and will also be delivering Eagle Ford volumes to the pipeline at EPIC’s Gardendale, Texas, terminal.

With these commitments, shippers have secured 425,000 bbl/d of capacity originating from the Permian Basin on the EPIC crude oil pipeline, and given strong commercial interest, EPIC is commencing its second open season on Aug. 1, 2018. Based upon the results of the second open season, EPIC will consider upsizing from a 24-inch line to a 30-inch line, expanding its Permian Basin capacity.

As previously announced, Apache Corp. (NYSE, NASDAQ: APA) and Noble Energy Inc. (NYSE: NBL) have committed to anchor the EPIC crude oil pipeline for 75,000 bbl/d and 100,000 bbl/d of capacity, respectively. At least 10% of system capacity will be reserved for uncommitted shippers.

“Diamondback’s transportation on and equity option in the EPIC Crude Oil Pipeline are important steps as we make progress on our broader long-term takeaway strategy,” stated Travis Stice, CEO of Diamondback. “Our agreements secure a firm solution for a majority of our Midland Basin barrels and we are excited to be aligned with some of the Permian’s largest producers on this project.”

“EPIC continues to add value to our pipeline with the addition of Diamondback as a strategic partner and our new primary shippers,” said Phillip Mezey, CEO of EPIC. “We are pleased to work with our customers and producers to ensure takeaway capacity from both the Permian Basin and Eagle Ford as volumes rapidly grow.”

“We are excited to add new partners to the project,” said Nate Walton, Partner and Co-Head of North American Private Equity at Ares Management LP (NYSE: ARES). “The EPIC Crude Oil Pipeline is a demonstration of the alignment of interests with our customers as we expect up to 50% of the pipeline to be owned by our strategic partners, which are some of the largest operators in the Permian Basin.”

The EPIC Crude Oil Pipeline, which will run side-by-side with the EPIC NGL Pipeline, will extend from Orla, Texas, to the Port of Corpus Christi, Texas, and 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. The crude system is expected to be in service in fourth-quarter 2019.The EPIC pipelines are backed by capital commitments from funds managed by the Private Equity Group of Ares.