Enbridge signed a definitive agreement to acquire Tallgrass Energy’s crude oil business from Blackstone for $2.55 billion in cash.
The deal adds strategic connections between the Bakken, Powder River, and Denver-Julesburg basins and the Cushing, Oklahoma storage hub.
The acquisition includes a 75% stake in the Pony Express Pipeline.
The Pony Express Pipeline spans 1,050 miles.
Enbridge will also gain a 51% interest in the Powder River Gateway system.
The transaction adds approximately 8.4 million barrels of storage capacity to Enbridge's portfolio.
Enbridge will partially fund the purchase through an equity offering.
The deal is expected to be accretive to distributable cash flow per share in the first full year of ownership.
The transaction is expected to close in late 2026, pending regulatory approvals.