Plains All American Announces $585M Acquisition of Silver Creek's Powder River Basin Assets
Plains All American Pipeline (NASDAQ:PAA) has agreed to acquire Silver Creek’s Powder River Basin assets for approximately $585 million in cash, with the transaction expected to close by late Q4 2026. The acquisition includes over 350,000 barrels per day of operating capacity and adds around 600 miles of gathering pipelines as well as storage facilities. Management believes leveraging spare infrastructure can boost returns without requiring significant new capital expenditures. The deal is expected to enhance Plains All American’s transportation network by connecting producers in the Rockies region with key markets like Cushing, potentially increasing earnings per customer relationship through higher throughput and long-term acreage dedications spanning over 915,000 acres. However, success depends on future drilling activity and whether projected cash flows materialize. While the strategic fit is clear, financial details such as acquisition earnings or purchase multiples were not disclosed in the announcement. The company also holds a non-operated stake in the Powder River Gateway joint venture, which may require coordination with other operators to realize full benefits.
Topics: Energy Infrastructure Pipeline Acquisition