Enbridge expands its North American midstream network with a $2.6 billion acquisition of Tallgrass Energy assets, strengthening its Rockies-to-Cushing crude oil infrastructure and Permian Basin gathering capacity.
Enbridge's $2.6B acquisition of Tallgrass crude oil transportation business expands its Rockies-to-Cushing pipeline network, adds accretive growth and strengthens its midstream footprint.
Enbridge Inc. is set to acquire Tallgrass Energy's crude oil transportation business for $2.6 billion, securing a 75% interest in the Pony Express Pipeline. The deal, paired with a $600 million Permian Basin acquisition, aims to integrate wellhead-to-export operations while maintaining the company's investment-grade balance sheet through a balanced debt-equity funding strategy.
Enbridge intends to fund the acquisitions using an equal mix of debt and equity to maintain its investment-grade balance sheet and target debt-to-EBITDA ratio of 4.5x to 5x.