Enbridge to buy Tallgrass crude oil assets for $2.55 billion in cash
Enbridge said a wholly-owned subsidiary has signed a definitive agreement to acquire Tallgrass Energy's crude oil transportation, gathering, storage and terminaling business for U.S.$2.55 billion in cash, subject to customary closing adjustments. Enbridge expects the deal to be accretive to distributable cash flow per share in the first full year of ownership, and says its 2026 financial guidance is not materially affected because closing is expected later in 2026.
Key points
- Cash consideration of U.S.$2.55 billion, representing an estimated acquisition multiple of 10-11x forward enterprise value to EBITDA.
- Assets include 75% of Pony Express Pipeline, 51% of Powder River Gateway system, and about 8.4 million barrels of storage across nine crude terminals.
- PXP2 expansion of U.S.$0.3 billion is expected to increase Pony Express capacity to about 515 kbpd, with service expected in late 2027.
- Closing is expected later in 2026, subject to regulatory approvals including Federal Trade Commission clearance; an equity offering will partially fund the deal.
The filing
Written by AI on Nov 9, 2026, 8:28 AM ET, from this filing only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on September 09, 2026.
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