Enbridge signed a definitive agreement to acquire Salt Creek Midstream’s crude oil gathering business for $600 million in cash. This deal expands Enbridge’s footprint in the Delaware portion of the Permian Basin. The transaction includes full ownership of the Orla and Wink North systems. It also includes a 50% stake in the Delaware Crossing system.
The assets include approximately 500 miles of pipelines. These systems provide a total capacity of 420,000 barrels per day. The infrastructure creates a direct link between Permian production and the Ingleside Energy Center. Ingleside is North America’s largest crude export terminal.
Long-term contracts with an average life of 10 years support the acquired assets. Enbridge expects the deal to immediately increase distributable cash flow. The acquisition will also be immediately accretive to earnings per share.