Plains to Acquire Powder River Basin Assets from Silver Creek Midstream
The Powder River Basin operation includes roughly 600 miles of crude pipelines and contracts covering 915,000 dedicated acres.
Plains All American Pipeline agreed to acquire SCM PR II, the company holding Silver Creek Midstream’s Powder River Basin business, from subsidiaries of Tailwater Capital and The Energy & Minerals Group for approximately $585 million in cash. The business provides crude-oil gathering, transportation and storage services in Wyoming.
Its system includes about 600 miles of pipelines, more than 350,000 barrels per day of operating capacity and 1.2 million barrels of storage, alongside a 49% non-operated stake in the Powder River Gateway joint venture. Current throughput is about 125,000 barrels per day.
Contracts cover 915,000 dedicated acres and have a weighted average remaining term of more than eight years. Announced September 16, the transaction is expected to close in the fourth quarter, subject to customary conditions and antitrust clearance.
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