Enbridge has agreed to acquire Tallgrass Energy’s crude transportation business for $2.55 billion in cash, expanding its U.S. inland oil infrastructure and strengthening connections between production in the Bakken, Powder River Basin and Denver-Julesburg Basin and the Cushing, Oklahoma, hub. The transaction includes a 75% interest in the 1,050-mile Pony Express Pipeline, which has capacity of about 460,000 barrels per day, a 51% interest in the Powder River Gateway system with combined capacity of roughly 240,000 barrels per day, and about 8.4 million barrels of crude storage across nine terminals. It also includes the PXP2 expansion, a roughly $300 million project expected to raise Pony Express capacity to approximately 515,000 barrels per day when it enters service in late 2027. Backed by take-or-pay contracts, the assets are expected to provide additional long-term contracted cash flow. Enbridge said the purchase represents an estimated forward enterprise value-to-EBITDA multiple of 10 to 11 times and is expected to increase distributable cash flow per share in the first full year of ownership. The deal is expected to close later in 2026, subject to regulatory approvals including U.S. antitrust clearance, and will not materially affect 2026 financial guidance. After closing, Enbridge plans to add PXP2 to its $41 billion secured growth backlog. The acquisition follows the company’s August agreement to buy Salt Creek Midstream’s crude gathering business, with an equity offering expected to help finance both transactions.