Enbridge Inc. announced it will acquire Tallgrass Energy's crude oil transportation business for U.S.$2.55 billion in cash, expanding its North American crude franchise. The deal includes a 75% stake in the Pony Express Pipeline, a 1,050-mile system with about 460 kbpd capacity, a 51% interest in the Powder River Gateway system, and approximately 8.4 million barrels of storage capacity across nine terminals. Enbridge expects the acquisition to be accretive to distributable cash flow per share in the first full year of ownership and plans to partially fund it with an equity offering. The transaction is expected to close later in 2026, subject to regulatory approvals.
Enbridge IncEnbridge is acquiring Tallgrass's crude business for $2.55B, expected to be accretive to distributable cash flow per share.
Tallgrass is selling its crude oil transportation business to Enbridge for $2.55B, a divestiture of unclear net benefit.
