Enbridge Inc., based in Calgary, announced a $600 million acquisition of crude oil pipeline assets from Houston-based Salt Creek Midstream. This deal includes approximately 800 kilometers (500 miles) of oil gathering infrastructure, comprising 100% of the Orla and Wink North systems and a 50% interest in the Delaware Crossing (DCX) system. The acquisition will allow Enbridge greater connectivity between wells in the Delaware Basin, a prolific crude oil producing region, and the Gulf Coast export market, specifically to the Enbridge Ingleside Energy Center, North America's largest crude export terminal.
This strategic move enhances Enbridge's presence in the Permian Basin and strengthens its value chain by offering customers a direct "wellhead to water" integration via pipelines like its majority-owned Gray Oak Pipeline and the Cactus II Pipeline. The newly acquired gathering lines have a combined capacity of 420,000 barrels per day and 350,000 barrels of storage. The assets serve over 20 producers with approximately 320,000 net dedicated acres under long-term commercial agreements, boasting an average remaining contract life of about 10 years, ensuring stable, long-term cash flows.
Enbridge anticipates the transaction to be immediately accretive to its distributable cash flow per share and earnings per share, with the deal expected to close later in 2026. Analysts from Plainview Energy Analytics suggest this acquisition points to Enbridge's longer-term ambitions in the Delaware and wider Permian Basin, especially given climbing Permian production and tightening pipeline capacity to the Gulf Coast. The company's CEO, Greg Ebel, indicated a new growth phase for the energy industry, supported by increasing producer confidence and a favorable policy environment, necessitating new infrastructure.
