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Enbridge Deepens Permian Footprint With $600M Salt Creek Acquisition
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Key Takeaways
ENB is set to add about 500 miles of crude-gathering infrastructure in the Delaware Basin through the deal.
The acquired systems have 420,000 barrels of daily throughput capacity & 350,000 barrels of storage capacity.
ENB expects the acquisition to immediately boost distributable cash flow per share and earnings per share.
Enbridge Inc. (ENB - Free Report) is strengthening its liquids pipeline business with a $600 million acquisition of Salt Creek Midstream’s crude oil gathering assets. The deal gives Enbridge 100% ownership of the Orla and Wink North systems and a 50% stake in the Delaware Crossing ("DCX") system, adding approximately 500 miles of crude-gathering infrastructure in the core of the Delaware Basin. The acquisition enhances ENB's strategic positioning within the core of the Delaware Basin, one of North America’s most productive oil regions, by integrating assets secured under long-term commercial agreements.
Long-Term Contracts Support Stable Cash Flows
The acquired crude oil gathering systems serve more than 20 producers and are backed by approximately 320,000 net dedicated acres. The approximately 10-year average remaining contract life offers Enbridge greater cash-flow visibility and a stable platform for future growth. The Orla, Wink North and DCX gathering systems have a combined daily throughput capacity of 420,000 barrels and a storage capacity of 350,000 barrels, providing ENB with substantial infrastructure to accommodate growing Permian production.
ENB Gains a Fully Integrated Permian Value Chain
The assets’ connectivity to multiple long-haul Permian crude pipelines, including Enbridge’s majority-owned Gray Oak Pipeline, enhances the midstream player’s Permian network. By linking Permian production to exports via the Enbridge Ingleside Energy Center, ENB can offer customers integrated wellhead-to-water solutions through Gray Oak, Cactus II and Ingleside. The integration is expected to improve asset utilization and strengthen the midstream player’s position in Permian crude transportation.
Immediate Accretion Enhances Investor Appeal
Enbridge expects the transaction to be immediately accretive to distributable cash flow per share and earnings per share, while maintaining its 2026 financial guidance. The combination of contracted cash flows, strategic connectivity and immediate accretion makes the acquisition attractive for investors. With the transaction set to be closed in late 2026, ENB is poised to capitalize on Permian growth, strengthen its business model and enhance its investor appeal.
ENB’s Zacks Rank & Key Picks
Enbridge currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are Valero Energy Corporation (VLO - Free Report) , Par Pacific Holdings, Inc. (PARR - Free Report) and HF Sinclair Corporation (DINO - Free Report) . The business models of VLO, PARR and DINO are sensitive to crude price fluctuations. Valero, Par Pacific and HF Sinclair currently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Valero’s refining portfolio comprises 14 refineries with a total throughput capacity of 3 million barrels per day, while its ethanol segment includes 12 plants across the United States. VLO’s ethanol business performed well in the second quarter of 2026, as margins expanded to $1.15 per gallon from 52 cents per gallon, driving operating income to 75 cents per gallon from 13 cents in the prior-year quarter.
Par Pacific operates an integrated energy platform spanning 219,000 barrels per day of refining capacity, logistics, retail and a 46% stake in Laramie Energy across Hawaii, the Pacific Northwest and the Rockies. The company’s logistics network includes 13 million barrels of storage, a pipeline network, marine terminals, rail facilities and truck racks, supporting the movement and marketing of conventional and renewable fuels. PARR reported a strong second-quarter 2026 adjusted EBITDA of $571.3 million, higher than $137.8 million a year earlier, while adjusted net income increased to $499.2 million from $78.3 million a year ago.
HF Sinclair is an independent refiner that produces gasoline, diesel, jet fuel, renewable diesel, lubricants and specialty products. In the second quarter of 2026, DINO’s adjusted EBITDA more than doubled to $1.5 billion from $665 million a year earlier, driven by stronger refining margins, higher volumes and solid execution. DINO’s renewable fuels adjusted EBITDA rose to $123 million from a $2 million loss, supported by higher renewable identification number prices, improved Producer’s Tax Credit benefits and increased volumes.
View the Zacks #1 Rank List
Image: Bigstock
Enbridge Deepens Permian Footprint With $600M Salt Creek Acquisition
Key Takeaways
Enbridge Inc. (ENB - Free Report) is strengthening its liquids pipeline business with a $600 million acquisition of Salt Creek Midstream’s crude oil gathering assets. The deal gives Enbridge 100% ownership of the Orla and Wink North systems and a 50% stake in the Delaware Crossing ("DCX") system, adding approximately 500 miles of crude-gathering infrastructure in the core of the Delaware Basin. The acquisition enhances ENB's strategic positioning within the core of the Delaware Basin, one of North America’s most productive oil regions, by integrating assets secured under long-term commercial agreements.
Long-Term Contracts Support Stable Cash Flows
The acquired crude oil gathering systems serve more than 20 producers and are backed by approximately 320,000 net dedicated acres. The approximately 10-year average remaining contract life offers Enbridge greater cash-flow visibility and a stable platform for future growth. The Orla, Wink North and DCX gathering systems have a combined daily throughput capacity of 420,000 barrels and a storage capacity of 350,000 barrels, providing ENB with substantial infrastructure to accommodate growing Permian production.
ENB Gains a Fully Integrated Permian Value Chain
The assets’ connectivity to multiple long-haul Permian crude pipelines, including Enbridge’s majority-owned Gray Oak Pipeline, enhances the midstream player’s Permian network. By linking Permian production to exports via the Enbridge Ingleside Energy Center, ENB can offer customers integrated wellhead-to-water solutions through Gray Oak, Cactus II and Ingleside. The integration is expected to improve asset utilization and strengthen the midstream player’s position in Permian crude transportation.
Immediate Accretion Enhances Investor Appeal
Enbridge expects the transaction to be immediately accretive to distributable cash flow per share and earnings per share, while maintaining its 2026 financial guidance. The combination of contracted cash flows, strategic connectivity and immediate accretion makes the acquisition attractive for investors. With the transaction set to be closed in late 2026, ENB is poised to capitalize on Permian growth, strengthen its business model and enhance its investor appeal.
ENB’s Zacks Rank & Key Picks
Enbridge currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are Valero Energy Corporation (VLO - Free Report) , Par Pacific Holdings, Inc. (PARR - Free Report) and HF Sinclair Corporation (DINO - Free Report) . The business models of VLO, PARR and DINO are sensitive to crude price fluctuations. Valero, Par Pacific and HF Sinclair currently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Valero’s refining portfolio comprises 14 refineries with a total throughput capacity of 3 million barrels per day, while its ethanol segment includes 12 plants across the United States. VLO’s ethanol business performed well in the second quarter of 2026, as margins expanded to $1.15 per gallon from 52 cents per gallon, driving operating income to 75 cents per gallon from 13 cents in the prior-year quarter.
Par Pacific operates an integrated energy platform spanning 219,000 barrels per day of refining capacity, logistics, retail and a 46% stake in Laramie Energy across Hawaii, the Pacific Northwest and the Rockies. The company’s logistics network includes 13 million barrels of storage, a pipeline network, marine terminals, rail facilities and truck racks, supporting the movement and marketing of conventional and renewable fuels. PARR reported a strong second-quarter 2026 adjusted EBITDA of $571.3 million, higher than $137.8 million a year earlier, while adjusted net income increased to $499.2 million from $78.3 million a year ago.
HF Sinclair is an independent refiner that produces gasoline, diesel, jet fuel, renewable diesel, lubricants and specialty products. In the second quarter of 2026, DINO’s adjusted EBITDA more than doubled to $1.5 billion from $665 million a year earlier, driven by stronger refining margins, higher volumes and solid execution. DINO’s renewable fuels adjusted EBITDA rose to $123 million from a $2 million loss, supported by higher renewable identification number prices, improved Producer’s Tax Credit benefits and increased volumes.