Enbridge Announces $2.55 Billion Acquisition of Tallgrass Energy's Crude Transportation Assets

Enbridge Inc. has entered into a definitive agreement to acquire Tallgrass Energy's crude oil transportation, gathering, storage, and terminaling business for U.S. $2.55 billion in cash. The acquisition expands Enbridge's crude oil infrastructure footprint into the U.S. Rockies region, adding key assets like the Pony Express Pipeline.

Key Details

• Transaction Value: The acquisition is for U.S. $2.55 billion in cash, representing an estimated forward enterprise value to EBITDA multiple of 10-11x.
• Key Assets Acquired: Includes a 75% interest in the Pony Express Pipeline, a 51% interest in the Powder River Gateway system, and ~8.4 million barrels of storage capacity.
• Timeline & Financial Impact: The transaction is expected to close in late 2026 and is projected to be accretive to distributable cash flow per share in the first full year of ownership.
• Associated Growth Project: The deal includes the $0.3 billion Pony Express Pipeline expansion project (PXP2), which is expected to be in service in late 2027 and will be added to Enbridge's secured growth backlog.