US-based Plains to Acquire 600 Miles of Wyoming Crude Oil Pipeline Assets for $585 Million
en.Wedoany.com Reported - On September 16, Plains All American Pipeline and Plains GP Holdings announced that their wholly owned subsidiaries have signed a definitive agreement to acquire Silver Creek Midstream's crude oil midstream assets in the Powder River Basin of Wyoming for approximately $585 million in cash. The transaction target is SCM PR II, LLC, currently held by Tailwater Capital, The Energy & Minerals Group, and management-related entities. The transaction is expected to close in the fourth quarter of 2026, subject to regulatory approvals and other customary closing conditions.
The acquired assets include approximately 600 miles of crude oil gathering and transportation pipelines, with existing operating capacity of more than 350,000 barrels per day, complemented by approximately 1.2 million barrels of operational storage capacity. The system covers Converse, Campbell, Johnson, and Natrona counties in Wyoming and connects to Plains' existing Rocky Mountain crude oil infrastructure through the Guernsey and Fort Laramie hubs.
Silver Creek currently handles approximately 125,000 barrels per day of crude oil gathering in the Powder River Basin. The related assets are supported by long-term acreage commitments and minimum volume contracts, covering approximately 915,000 acres of production area, with a contract-weighted average remaining term of more than 8 years. Following the acquisition, Plains can further increase direct connections to upstream producers' wellhead resources and add new crude oil volumes into its existing regional pipeline network.
The transaction also includes Silver Creek's 49% non-operated interest in the Powder River Gateway joint venture. This joint venture platform owns and operates the Iron Horse and Powder River Express pipelines, providing crude oil from the Powder River Basin with egress to regional hubs and onward long-haul pipeline networks.
Plains' existing crude oil infrastructure covers multiple major producing regions in the United States and Canada, with operations including crude oil gathering, long-haul pipelines, storage, and terminal services. Upon completion of this acquisition, the newly added assets will connect with its existing gathering system in the Powder River Basin and its long-distance transportation network to Cushing, expanding the company's crude oil gathering and transportation scale in the Rocky Mountain region.
