The Plains Silver Creek acquisition will add a large Powder River Basin crude-oil gathering system to Plains All American Pipeline (NASDAQ: PAA). Plains agreed to buy SCM PR II, known as Silver Creek, for approximately $585 million in cash from subsidiaries of Tailwater Capital and The Energy and Minerals Group.
The assets include around 600 miles of crude gathering and transmission pipelines, more than 350,000 barrels per day of operating capacity and roughly 1.2 million barrels of operational storage. Plains will also receive a 49% non-operating interest in Powder River Gateway, including Iron Horse and Powder River Express.
Plains Silver Creek Acquisition Expands Rockies Connectivity
Silver Creek’s system serves producers in Wyoming’s Powder River Basin and connects to Plains’ existing Rockies network through the Guernsey and Fort Laramie hubs. Plains says the addition will improve access to its long-haul routes, including assets that move crude toward Cushing, Oklahoma.
Plains outlined the transaction in its official acquisition announcement. The network currently carries approximately 125,000 barrels per day and is supported by long-term acreage commitments covering about 915,000 acres, according to the company.
The agreements have a weighted-average remaining contract term of more than eight years. Those commitments can improve volume visibility, although actual throughput will still depend on regional drilling activity, producer economics and the pace at which new wells enter service.
Closing and Cash-Flow Effects Remain Ahead
The transaction is expected to close in the fourth quarter of 2026, subject to customary conditions, including U.S. antitrust clearance. Until closing, the assets remain outside Plains’ operating results, and projected synergies should be treated as management expectations rather than realized cash flow.
The Plains Silver Creek acquisition adds scale in a basin where infrastructure can influence the economics of future production. Investors will watch integration costs, actual transported volumes and the contribution to earnings and free cash flow to assess whether the $585 million purchase price delivers an attractive return.
