Description

Plains All American Pipeline Acquisition Brings 600 Miles Of Strategic Infrastructure!

Plains All American Pipeline is moving to expand its U.S. crude oil infrastructure footprint through an agreement to acquire Silver Creek Midstream’s Powder River Basin assets for approximately $585 million in cash. The transaction would give Plains control of roughly 600 miles of gathering and transmission pipelines in Wyoming, approximately 1.2 million barrels of operational storage and a 49% non-operated interest in the Powder River Gateway Joint Venture. The system currently handles about 125,000 barrels of crude oil per day and is supported by approximately 915,000 dedicated acres under long-term agreements and minimum volume commitments, with more than eight years of average contract life remaining. The timing is notable because Plains has recently strengthened its balance sheet, reduced leverage to 3.3x following the sale of its Canadian NGL business and reiterated its willingness to pursue accretive bolt-on acquisitions alongside organic projects.