Enbridge Announces $2.55B Acquisition of Tallgrass Energy's Crude Oil Assets

Overview & Strategic Context

On September 9, 2026, Enbridge Inc. (NYSE: ENB / TSX: ENB) filed a Form 8-K announcing the execution of a definitive agreement to acquire Tallgrass Energy's crude oil transportation, gathering, storage, and terminaling assets for a total cash consideration of $2.55 billion (subject to customary adjustments).

Key Transaction Highlights

• Acquisition Scope:

  • 75% interest in Pony Express Pipeline (Pony Express): A 1,050-mile, ~460 kbpd crude system linking Rockies production to Cushing, OK, with connectivity to ~500 kbpd of refining capacity.
  • 51% interest in Powder River Gateway system: Comprising two crude pipelines with combined delivery capacity of ~240 kbpd.
  • ~8.4 million barrels of storage capacity: Across nine terminals connected to Pony Express, including a 60.3% non-operating interest in the Deeprock Crude Terminal in Cushing, OK.
  • Stanchion Energy: Crude marketing business optimizing throughput across the system.
  • PXP2 Expansion Project: $0.3 billion expansion adding capacity up to ~515 kbpd, supported by take-or-pay contracts and targeting late-2027 in-service.

• Valuation & Multiples: Represents an estimated acquisition multiple of 10–11x forward Enterprise Value to EBITDA.

• Financing & Outlook:

  • Transaction will be partially funded via an equity offering.
  • Accretive to Distributable Cash Flow (DCF) per share in the first full year of ownership.
  • 2026 financial guidance remains unchanged due to expected closing later in 2026.
  • Reaffirmed medium-term outlook of ~5% CAGR in EBITDA, DCF/share, and EPS with targeted leverage of 4.5x–5.0x Debt-to-Adjusted EBITDA.

Regulatory Approvals & Closing

Closing is slated for later in 2026, subject to regulatory clearances, including FTC clearance under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act.