We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
PAA Plans to Expand Rockies Presence With Silver Creek Acquisition
Read MoreHide Full Article
Key Takeaways
PAA will acquire Silver Creek's Powder River Basin assets for about $585 million.
The deal adds nearly 600 pipeline miles, 350,000 bpd of capacity and 1.2 million barrels of storage.
Silver Creek's assets have 915,000 dedicated acres and contracts averaging more than eight years.
Plains All American Pipeline, L.P. (PAA - Free Report) announced that its wholly owned unit has entered into an agreement to acquire Silver Creek Midstream’s Powder River Basin assets for approximately $585 million in cash. The transaction is expected to close in the fourth quarter of 2026, subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act.
PAA Acquisition to Strengthen Rockies Footprint
The Silver Creek assets will expand PAA’s Rockies footprint and increase its direct connectivity to crude oil producers in the Powder River Basin. The system provides access to Plains’ existing infrastructure through the Guernsey and Fort Laramie hubs and connects with long-haul assets delivering crude oil to Cushing.
The acquisition will add nearly 600 miles of crude oil gathering and transmission pipelines, more than 350,000 barrels per day of operating capacity and about 1.2 million barrels of storage capacity. It also includes a 49% non-operated interest in the Powder River Gateway joint venture, which includes the Iron Horse and Powder River Express systems.
The assets are supported by 915,000 dedicated acres, long-term acreage dedications and a weighted-average contract tenor of more than eight years. Current throughput is approximately 125,000 barrels per day, with potential for additional volume growth and operating synergies.
Earlier Acquisitions Continue to Deliver Synergies for PAA
PAA’s Cactus III acquisition expanded its crude oil footprint and pipeline capacity while strengthening connectivity across key producing regions. The asset also provides access to the Corpus Christi export market and has generated operational synergies and cost savings. PAA captured $50 million of targeted Cactus III synergies in 2026, while another $50 million of corporate efficiencies is expected by year-end. The company has identified an additional $50 million of efficiencies for 2027.
Strategic Acquisitions Drive Midstream Expansion
Strategic acquisitions expand midstream operations by adding high-quality assets, increasing processing and transportation capacity, and strengthening market reach. These transactions support scale, operational efficiency and long-term growth across producing regions. Apart from PAA, other oil and gas midstream companies are also broadening their footprint through acquisitions.
On Sept. 9, 2026, Enbridge Inc. (ENB - Free Report) announced that its wholly owned unit agreed to acquire Tallgrass Energy’s crude oil business for $2.55 billion in cash. The transaction is expected to close later in 2026, subject to customary closing conditions and regulatory approvals. The ENB deal complements PAA’s acquisition, with both expanding Rockies crude infrastructure. ENB will acquire 51% of Powder River Gateway, while PAA will acquire the remaining interest.
On Sept. 3, 2026, Williams (WMB - Free Report) completed its $5.5-billion acquisition of Momentum Midstream, adding more than 4,000 miles of pipelines, 6 billion cubic feet per day (Bcf/d) of gathering capacity and 4.05 Bcf/d of transportation capacity in the Haynesville.
On June 11, 2026, Western Midstream (WES - Free Report) completed its $1.6-billion Brazos Delaware acquisition, adding about 470,000 dedicated acres and 460 million cubic feet per day of processing capacity while expanding its Delaware Basin gathering and processing footprint.
Unit Price Movement of PAA
In the past three months, units have rallied 17.8% compared with the industry’s 8.7% growth.
View the Zacks #1 Rank List
Image: Bigstock
PAA Plans to Expand Rockies Presence With Silver Creek Acquisition
Key Takeaways
Plains All American Pipeline, L.P. (PAA - Free Report) announced that its wholly owned unit has entered into an agreement to acquire Silver Creek Midstream’s Powder River Basin assets for approximately $585 million in cash. The transaction is expected to close in the fourth quarter of 2026, subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act.
PAA Acquisition to Strengthen Rockies Footprint
The Silver Creek assets will expand PAA’s Rockies footprint and increase its direct connectivity to crude oil producers in the Powder River Basin. The system provides access to Plains’ existing infrastructure through the Guernsey and Fort Laramie hubs and connects with long-haul assets delivering crude oil to Cushing.
The acquisition will add nearly 600 miles of crude oil gathering and transmission pipelines, more than 350,000 barrels per day of operating capacity and about 1.2 million barrels of storage capacity. It also includes a 49% non-operated interest in the Powder River Gateway joint venture, which includes the Iron Horse and Powder River Express systems.
The assets are supported by 915,000 dedicated acres, long-term acreage dedications and a weighted-average contract tenor of more than eight years. Current throughput is approximately 125,000 barrels per day, with potential for additional volume growth and operating synergies.
Earlier Acquisitions Continue to Deliver Synergies for PAA
PAA’s Cactus III acquisition expanded its crude oil footprint and pipeline capacity while strengthening connectivity across key producing regions. The asset also provides access to the Corpus Christi export market and has generated operational synergies and cost savings. PAA captured $50 million of targeted Cactus III synergies in 2026, while another $50 million of corporate efficiencies is expected by year-end. The company has identified an additional $50 million of efficiencies for 2027.
Strategic Acquisitions Drive Midstream Expansion
Strategic acquisitions expand midstream operations by adding high-quality assets, increasing processing and transportation capacity, and strengthening market reach. These transactions support scale, operational efficiency and long-term growth across producing regions. Apart from PAA, other oil and gas midstream companies are also broadening their footprint through acquisitions.
On Sept. 9, 2026, Enbridge Inc. (ENB - Free Report) announced that its wholly owned unit agreed to acquire Tallgrass Energy’s crude oil business for $2.55 billion in cash. The transaction is expected to close later in 2026, subject to customary closing conditions and regulatory approvals. The ENB deal complements PAA’s acquisition, with both expanding Rockies crude infrastructure. ENB will acquire 51% of Powder River Gateway, while PAA will acquire the remaining interest.
On Sept. 3, 2026, Williams (WMB - Free Report) completed its $5.5-billion acquisition of Momentum Midstream, adding more than 4,000 miles of pipelines, 6 billion cubic feet per day (Bcf/d) of gathering capacity and 4.05 Bcf/d of transportation capacity in the Haynesville.
On June 11, 2026, Western Midstream (WES - Free Report) completed its $1.6-billion Brazos Delaware acquisition, adding about 470,000 dedicated acres and 460 million cubic feet per day of processing capacity while expanding its Delaware Basin gathering and processing footprint.
Unit Price Movement of PAA
In the past three months, units have rallied 17.8% compared with the industry’s 8.7% growth.
Image Source: Zacks Investment Research
PAA’s Zacks Rank
Plains All American Pipeline currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.