Plains Expands Powder River Basin Footprint with $585 Million Silver Creek Midstream Acquisition
Plains All American Pipeline and Plains GP Holdings have agreed to acquire Silver Creek Midstream’s Powder River Basin crude oil assets for approximately $585 million in cash. The transaction will be completed through the purchase of SCM PR II, which is owned by Tailwater Capital, the Energy & Minerals Group and Silver Creek management.
The Wyoming assets include approximately 600 miles of crude oil gathering and transmission pipelines, 1.2 million barrels of operational storage and capacity to handle roughly 350,000 barrels per day. Current throughput is approximately 125,000 barrels per day. Plains will also acquire a 49% non-operated interest in the Powder River Gateway joint venture, which includes the Iron Horse and Powder River Express pipelines.
The system is supported by approximately 915,000 dedicated acres under long-term agreements and minimum-volume commitments. The contracts have an average remaining term of more than eight years, providing Plains with durable, fee-based revenue and exposure to future Powder River Basin production growth. The infrastructure connects regional producers with transportation hubs at Guernsey and Fort Laramie, Wyoming.
The acquisition strengthens Plains’ access to one of the leading emerging oil-producing regions in the Rockies. The substantial difference between the system’s current throughput and its stated capacity also provides room to accommodate additional drilling and production without requiring an entirely new transportation network. Subject to regulatory approval and other customary closing conditions, the transaction is expected to close during the fourth quarter of 2026.
Industry Impact
The transaction reinforces the Powder River Basin’s position as a strategic source of long-life U.S. crude supply. Domestic production from established basins represents a “safe barrel” because it is located within a stable regulatory, commercial and transportation system and carries less geopolitical risk than many international supply sources. Plains’ investment provides producers with stronger market connectivity while demonstrating confidence in the basin’s long-term drilling and production outlook.
OFS Sales Strategy
Oilfield service companies should prioritize producers operating within Silver Creek’s 915,000-acre dedication area and along the Iron Horse and Powder River Express corridors. The strongest opportunities include drilling and completion services, production optimization, artificial lift, automation, pipeline integrity, storage-tank maintenance, corrosion control, leak detection and environmental compliance. Suppliers should also monitor Plains’ post-closing integration work for potential spending on system upgrades, measurement equipment, pumping capacity and operational standardization.
Author: phinds