Plains All American Pipeline has agreed to acquire Silver Creek Midstream’s Powder River Basin assets in a transaction valued at approximately $585 million, expanding its crude oil gathering and transportation infrastructure in the Rocky Mountain region.
Under the definitive agreement, a wholly owned Plains subsidiary will acquire SCM PR II, LLC from subsidiaries of Tailwater Capital and The Energy and Minerals Group. The transaction is expected to close in the fourth quarter of 2026, subject to customary closing conditions and regulatory clearance.
Silver Creek operates an integrated crude oil gathering system serving producers across Wyoming’s Powder River Basin. The assets being acquired include approximately 600 miles of crude oil gathering and transmission pipelines, more than 350,000 barrels per day of operating capacity and approximately 1.2 million barrels of operational storage capacity.
The transaction will also give Plains a 49% non-operated interest in the Powder River Gateway joint venture, including the Iron Horse and Powder River Express systems. The acquired infrastructure currently handles approximately 125,000 barrels per day of throughput.
Expanding crude oil connectivity
Plains said the acquisition will expand its presence in the Powder River Basin and strengthen connections between producer supply and its existing Rockies infrastructure through the Guernsey and Fort Laramie hubs.
The expanded network will provide additional gathering and transmission capabilities and improve connectivity with Plains’ long-haul infrastructure serving Cushing, Oklahoma, a major crude oil trading and transportation hub.
The assets are supported by approximately 915,000 dedicated acres under long-term acreage dedications and minimum volume commitments. Plains said the associated contracts have a weighted-average tenor of more than eight years.
The company also expects the integrated platform to create additional commercial and operational opportunities as it combines the acquired gathering infrastructure with its existing Rockies network.
Supporting Powder River Basin production
Plains said the Powder River Basin has more than 20 years of remaining drilling locations at current activity levels and expects continued producer development in the region over the coming years. These expectations are company projections rather than guaranteed production outcomes.
The acquisition is therefore focused on strengthening midstream infrastructure around existing and future crude oil production, while increasing direct connections between wellhead supply, gathering systems and long-haul transportation routes.
Plains provides crude oil gathering, transportation, storage and logistics services across major producing basins and transportation corridors in the United States and Canada.
The transaction remains subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act.
