Enbridge Agrees to Acquire Tallgrass Crude Transportation Business for US$2.55 Billion
Enbridge announced a definitive agreement to acquire Tallgrass Energy’s crude oil transportation business for US$2.55 billion in cash, subject to customary closing adjustments. The package includes 75% of Pony Express, 51% of Powder River Gateway, about 8.4 million barrels of storage across nine crude terminals, a 60.3% non-operating interest in the Deeprock Crude Terminal in Cushing, and Stanchion Energy. Enbridge expects the deal to be accretive to distributable cash flow per share in the first full year of ownership and plans to partially fund it through an equity offering.
The Telegram announcement and supplied grounded context explicitly identify a signed Enbridge–Tallgrass agreement, the US$2.55 billion cash consideration, the acquired pipeline and storage interests, partial equity financing, and expected first-full-year distributable-cash-flow-per-share accretion. This is new, forward-looking M&A information rather than market-price commentary, with material implications for Enbridge’s asset base, cash flows, and capital structure; because closing is expected later, the status remains announced. The date is explicit but the precise real-world announcement time is not, so 20:12:26Z is retained as the best supplied estimate and timestamp confidence is below 1. The prior event decision is retained because this starts a distinct acquisition storyline. ENB and owners of the explicitly identified competing transmission systems—PAA, OKE, NGL, and CVX—are approved; downstream refiners and historical or indirect candidates are excluded because the evidence does not show transaction-specific exposure.
ENBRIDGE AGREES TO ACQUIRE TALLGRASS’ CRUDE TRANSPORTATION BUSINESS FOR $2.55 BILLION CASH, INCLUDING 75% OF PONY EXPRESS, 51% OF POWDER RIVER GATEWAY AND 8.4 MILLION BARRELS OF STORAGE CAPACITY.
THE DEAL IS EXPECTED TO BOOST DISTRIBUTABLE CASH FLOW PER SHARE IN THE FIRST FULL YEAR, WITH ENBRIDGE ALSO FUNDING PART OF THE ACQUISITION THROUGH AN EQUITY OFFERING AND TARGETING 5% MEDIUM-TERM EBITDA, DCF/SHARE AND EPS GROWTH.
Enbridge Inc., the Canadian energy infrastructure giant, reached an agreement to buy Tallgrass Energy’s crude oil business from Blackstone Inc. for about $2.6 billion.