Enbridge to Acquire Tallgrass Crude Pipeline Business in $2.55 Billion Deal
Enbridge has agreed to acquire a significant portion of Tallgrass Energy's crude transportation business for $2.55 billion, enhancing its U.S. midstream infrastructure portfolio. The acquisition includes key assets such as the Pony Express and Powder River Gateway pipelines, which connect major oil production regions in the Rockies with Cushing, Oklahoma—a central hub for U.S. crude storage and distribution. The deal is expected to expand Enbridge's capacity by approximately 515,000 barrels per day through the PXP2 expansion project, set to come online in late 2027. The company anticipates this acquisition will increase distributable cash flow without materially affecting its 2026 financial guidance and reaffirmed long-term growth targets for EBITDA and earnings. Financing includes an equity offering that supports both the Tallgrass deal and a prior Salt Creek Midstream acquisition, while maintaining Enbridge's leverage target. The transaction is subject to regulatory approvals but expected to close later in 2026.
Tickers: $ENB
Topics: Crude Oil Energy Infrastructure Pipeline