Plains All American to acquire Silver Creek for $585 million

Plains All American Pipeline, L.P. and Plains GP Holdings have agreed to acquire SCM PR II, LLC from Tailwater Capital and The Energy and Minerals Group. The deal, valued at roughly $585 million in cash, involves the acquisition of a crude oil gathering system in the Powder River Basin. This system comprises around 600 miles of pipelines, a capacity of over 350,000 barrels per day, 1.2 million barrels of operational storage, and a 49% non-operated stake in the Powder River Gateway JV.

It serves producers in the basin and provides access to Plains' existing infrastructure through Guernsey and Fort Laramie hubs. The transaction includes 915,000 dedicated acres with long-term commitments and average contract terms exceeding eight years, with current throughput at approximately 125,000 barrels per day. Plains' CEO, Willie Chiang, stated that the deal meets the company's internal rate of return thresholds and will expand their presence in the Powder River Basin.

The purchase is projected to close in the fourth quarter of 2026, pending the fulfillment of standard closing conditions, including regulatory approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Mizuho provided financial guidance for the transaction, while Latham & Watkins served as legal counsel for Plains.