Enbridge Acquires Salt Creek Midstream's Crude Gathering Assets for $600 Million
Enbridge Inc. (NYSE:ENB) has agreed to acquire Salt Creek Midstream’s crude oil gathering business in the Permian Basin for $600 million, strengthening its presence in one of America’s most productive oil regions. The acquisition includes full ownership of two systems and a partial stake in another, offering combined throughput capacity of 420,000 barrels per day (b/d) and storage for 350,000 barrels. This move enhances Enbridge's crude value chain by linking Permian production directly to its Ingleside Energy Center, the largest crude export terminal in North America. The deal is expected to close later this year and will be immediately accretive to cash flow and earnings per share without altering 2026 financial guidance. The assets come with an average remaining contract life of about ten years, providing stable long-term revenue. However, the acquisition also carries risks due to stiff competition in a mature basin where extraction costs are rising. Enbridge is shifting focus from large-scale pipeline projects like the delayed Mainline expansion toward smaller infrastructure tied to existing production and U.S. refiners. While this strategy aligns with disciplined capital allocation, it exposes Enbridge to potential volatility if crude prices fall or Permian output slows.
Tickers: $ENB
Topics: acquisition midstream infrastructure oil Permian Basin