Enbridge Bolsters Permian Presence with $600M Salt Creek Acquisition
Enbridge Inc., a leading North American energy infrastructure company, has announced its intention to extend its presence in the Permian Basin through a significant acquisition. The company will acquire Salt Creek Midstream's crude oil gathering business for $600 million in cash.
The assets being acquired include approximately 500 miles of crude oil gathering infrastructure located in the core of the Delaware Basin. This region is one of the most prolific and competitive crude oil producing areas in North America. The system serves a diverse group of over 20 producers and has an average remaining contract life of around 10 years.
The acquisition will provide Enbridge with a direct strategic connection between crude oil production in the Permian Basin and export at its Ingleside Energy Center, which is North America's largest crude export terminal. The deal is expected to be immediately accretive to distributable cash flow per share and earnings per share.
According to Colin Gruending, Executive Vice President and President of Enbridge Liquids Pipelines, 'The acquisition will extend Enbridge's presence deeper into the Permian Basin through the addition of a highly connected crude gathering platform.'