Enbridge is set to expand its U.S. crude oil pipeline operations through a $2.55 billion cash deal with Blackstone-owned Tallgrass Energy. The Canadian pipeline company said Wednesday that the acquisition will give it a majority stake in the Pony Express Pipeline and several related crude oil assets.
Enbridge will purchase a 75% interest in Pony Express, a 1,050-mile (1,690-km) crude oil pipeline with capacity of 460,000 barrels per day. The system connects oil production areas in the Rockies with the Cushing, Oklahoma, storage hub. It also provides access to about 500,000 barrels per day of refining capacity.
The deal will strengthen Enbridge’s position in the Bakken, Powder River and Denver-Julesburg basins. It will also create operating links with the company’s existing Express-Platte pipeline system.
The transaction includes a 51% interest in the Powder River Gateway pipeline system. Enbridge will also acquire nearly 8.4 million barrels of storage capacity across nine crude terminals connected to Pony Express. The Stanchion Energy crude marketing business is part of the deal as well.
Financing and Growth Plans
Enbridge expects the acquisition to increase distributable cash flow per share during its first full year of ownership. However, the company said its 2026 financial guidance will remain unchanged.
The purchase comes alongside Enbridge’s August 26 acquisition of Salt Creek Midstream’s crude gathering business. The company plans to use an equity offering to partially fund the transactions.
Executives said Enbridge is taking a conservative approach to financing the deals. The strategy aims to preserve funding capacity for future projects while keeping options such as asset sales, partnerships and other financing methods available.
The acquisition also comes as U.S.-Canada energy transportation remains a policy focus. In April, U.S. President Donald Trump issued several pipeline permits, including approval for a new pipeline designed to support the movement of crude oil and petroleum products between the two countries.
Enbridge said its C$41 billion ($29.70 billion) secured growth backlog will be supported by average annual growth capital investment capacity of C$10 billion to C$11 billion.
The Tallgrass transaction is expected to close later in 2026, subject to regulatory approval. Once completed, Enbridge will hold a larger position across several U.S. crude-producing regions, storage facilities and pipeline connections.
