Canada's Enbridge Acquires Salt Creek Midstream Crude Oil Assets for $600 Million

en.Wedoany.com Reported - Canadian midstream company Enbridge has signed an agreement to acquire Salt Creek Midstream's crude oil gathering business in the United States for $600 million (CAD 833.36 million) in cash. The transaction will be carried out through a wholly owned subsidiary of Enbridge, with the acquisition targets including full equity interests in the Orla and Wink North systems, as well as a 50% interest in the Delaware Crossing (DCX) system.

These assets cover approximately 500 miles of crude oil gathering infrastructure in the Delaware Basin, a well-known crude oil producing region in North America.

The systems serve more than 20 producers and operate under long-term commercial agreements, encompassing approximately 320,000 net dedicated acres. These contracts have an average remaining term of about ten years, providing stable long-term cash flows and laying the foundation for future growth.

Colin Gruending, Executive Vice President and President of Enbridge's Liquids Pipelines division, stated that this acquisition will further expand Enbridge's operations deep into the Permian Basin by adding a highly interconnected crude oil gathering platform. These assets will strengthen Enbridge's value chain in the Permian Basin, enabling the company to offer customers fully integrated wellhead-to-water services through the Gray Oak Pipeline, the Cactus II Pipeline, and Enbridge's Ingleside Energy Center.

The Orla, Wink North, and DCX systems collectively have a transportation capacity of 420,000 barrels per day (bpd) and storage capacity of 350,000 barrels (bbl). These gathering systems can connect to multiple long-haul crude oil pipelines in the Permian Basin, including the Gray Oak Pipeline, in which Enbridge holds a majority interest. Enbridge stated that this acquisition will establish a direct connection from Permian Basin crude oil production to Enbridge's Ingleside Energy Center, which is reportedly the largest crude oil export terminal in North America.

The transaction is expected to close later in 2026, subject to customary closing conditions, including regulatory approval from the Federal Trade Commission under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Enbridge expects the acquisition to immediately increase distributable cash flow per share and earnings per share, while maintaining its 2026 financial guidance unchanged.

RBC Capital Markets is serving as Enbridge's financial advisor for the transaction, with Sidley Austin and Sullivan & Cromwell providing legal counsel.

In April 2026, the Canadian government approved Enbridge's CAD 4 billion Sunrise expansion project, allowing the company to increase natural gas transportation volumes on its Westcoast pipeline in British Columbia. Enbridge plans to increase transportation capacity on the southern section of the pipeline (1,835 miles, or 2,953 kilometers) by approximately 300 million cubic feet per day.