Enbridge Acquires Tallgrass Energy for $2.6B to Expand Crude Oil Network
Enbridge Inc (NYSE:ENB) has agreed to acquire Tallgrass Energy's crude oil transportation business for $2.6 billion, gaining a significant stake in the Pony Express Pipeline and related infrastructure connecting the Rockies region with Cushing, Oklahoma. The acquisition includes an operating interest in a major pipeline system that transports 460,000 barrels per day from Wyoming to Oklahoma, along with storage assets and refining connections. The deal complements Enbridge's previously announced $600 million purchase of Salt Creek Midstream’s Permian Basin gathering systems. Together, the acquisitions are expected to strengthen Enbridge’s crude oil transportation network across key U.S. producing regions and improve its wellhead-to-export value chain. The company plans to finance both deals with a balanced mix of debt and equity while maintaining an investment-grade balance sheet. Enbridge CEO Greg Ebel emphasized that these transactions will add long-term growth opportunities for the firm’s liquids business, particularly through expanded connectivity in major basins like Bakken, Powder River, Denver-Julesburg, and Permian. The company values the Tallgrass acquisition at 10 to 11 times estimated 2027 EBITDA but expects this multiple to improve with synergies.
Tickers: $ENB
Topics: Crude Oil Transportation Energy Pipeline Infrastructure