Plains Pays $585 Million for Silver Creek Midstream Assets
Plains All American Pipeline and Plains GP Holdings have agreed to purchase Silver Creek Midstream's Powder River Basin crude oil gathering assets for approximately $585 million in cash. This acquisition will expand Plains' Rockies infrastructure and strengthen its direct connectivity to producer supply.
The acquired assets include around 600 miles of crude oil gathering and transmission pipelines, over 350,000 barrels per day of operating capacity, and about 1.2 million barrels of operational storage capacity. The transaction also includes a 49% non-operated interest in the Powder River Gateway joint venture.
Plains believes integrating these assets will create commercial and operational synergies while contributing to long-term earnings and cash flow growth. The deal comes as Plains adjusts its capital structure, with management pointing to recent junior subordinated notes offerings and planned retirement of Series A and Series B preferred units as providing additional balance-sheet flexibility.
The transaction is expected to close in the fourth quarter of 2026, subject to customary conditions and clearance under the Hart-Scott-Rodino Antitrust Improvements Act. Plains sees remaining drilling inventory in the Powder River Basin as supporting additional long-term demand for gathering and transportation infrastructure.