Plains All American Pipeline and Plains GP Holdings (together Plains) have signed an agreement to acquire Silver Creek Midstream’s crude oil midstream assets in the Powder River Basin, US, for approximately $585m.
The all-cash transaction will be executed through the sale of SCM PR II, the holding company for the Powder River Basin assets.
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SCM PR II is owned by subsidiaries of Tailwater Capital, the Energy & Minerals Group (EMG) and management.
The deal will see Plains assume ownership of Silver Creek’s crude oil gathering, transportation and storage operations in Wyoming.
These assets consist of roughly 600 miles of gathering and transmission pipelines with a stated operating capacity of around 350,000 barrels per day, as well as approximately 1.2 million barrels of operational storage.
The agreement also covers a 49% non-operated interest in the Powder River Gateway Joint Venture, which comprises the Iron Horse and Powder River Express pipelines.
Silver Creek’s system is currently supported by approximately 915,000 dedicated acres under long-term agreements and minimum volume commitments, with an average remaining contract length of more than eight years.
The assets serve a range of producers in the Powder River Basin, providing pipeline connections to major regional transportation centres including Guernsey and Fort Laramie.
Silver Creek founder, chairman and CEO J. Patrick Barley said: “I would like to thank Tailwater and EMG for their continued support as we developed the premier crude oil midstream platform in the Powder River Basin.
“I also would like to recognise and thank the employees of Silver Creek that have worked tirelessly over the years to provide best-in-class service to our producer customers, while also achieving a best-in-class safety record. Your hard work and dedication are what made today possible.”
Plains stated that the acquisition is expected to expand its footprint in the Powder River Basin and improve direct connectivity to regional supply, citing the area’s long-term drilling prospects and ongoing production growth.
The company also noted that the acquired system handles around 125,000 barrels of oil per day in current throughput.
The sale is subject to customary closing conditions, including regulatory approvals such as clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and is expected to close in the fourth quarter of 2026.
Advisory roles on the transaction included RBC Capital Markets as sole financial adviser to Silver Creek and its sponsors, with Troutman Pepper Locke providing legal counsel. Plains was advised by Mizuho and legal firm Latham & Watkins.
