Enbridge Agrees to Buy Tallgrass Energy's Crude Oil Business for $2.55 Billion

By Elias Schisgall

Enbridge said a subsidiary agreed to acquire Tallgrass Energy's crude oil business for $2.55 billion in cash.

Shares of Enbridge were trading down 2.2% at $49.05 after the bell Wednesday.

The energy infrastructure and pipeline company said the deal will add 75% of the Pony Express Pipeline between the Rockies basins and Cushing, Okla., and 51% of the Powder River Gateway system, which itself includes two crude pipelines.

The deal also includes 8.4 million barrels of storage capacity across nine crude terminals, as well as Stanchion Energy, a crude marketing business.

"This acquisition strengthens Enbridge's position as North America's leading crude oil transporter and expands its footprint into the U.S. Rockies region," President of Enbridge Liquids Pipelines Colin Gruending said. "The Pony Express system is a premier crude oil corridor connecting some of North America's most productive basins with key refining and market centers."

Enbridge said Wednesday that it would fund the acquisition in part through a bought-deal offering of 2.6 billion Canadian dollars ($1.88 billion) worth of shares with a syndicate of banks, who will then offer the shares to the public.

The underwriters for the offering have a 30-day option to buy up to an additional 15% worth of the shares sold in the offering to cover any over-allotments.

The deal for Tallgrass Energy's crude oil business is expected to close later this year, and is seen adding to distributable cash flow per share in the first full year of ownership, the company said.

Write to Elias Schisgall at elias.schisgall@wsj.com

(END) Dow Jones Newswires

September 09, 2026 17:06 ET (21:06 GMT)