Enbridge Buys Tallgrass Energy Crude Oil Segment for $2.55B


   
   HOUSTON, TX (DTN) -- Enbridge has entered into a definitive agreement to 
acquire the crude oil business of wholly-owned subsidiaries of Tallgrass Energy 
for U.S.$2.55 billion in cash, subject to customary closing adjustments.

   According to a company statement, the acquisition includes a 75% interest in 
Pony Express Pipeline, a 1,050-mile system with approximately 460,000 bpd of 
capacity connecting Rockies production to Cushing, Oklahoma. The transaction 
also includes a 51% interest in the Powder River Gateway system and 
approximately 8.4 million barrels of crude storage capacity across nine 
terminals. Stanchion Energy, a crude marketing business, is also part of the 
deal.

   The deal creates a strategic corridor linking the Bakken, Powder River 
Basin, and Denver-Julesburg basins through Cushing, complementing Enbridge's 
existing Express-Platte system.

   The transaction also includes PXP2, a U.S.$0.3 billion expansion project 
expected to increase Pony Express capacity to 515,000 bpd by late 2027, adding 
to Enbridge's $41 billion secured growth backlog.

   The deal, valued at an estimated 10--11x forward EV/EBITDA, is expected to 
close later in 2026, pending Federal Trade Commission clearance and other 
regulatory approvals.




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