# Enbridge buys Tallgrass crude for $2.55B

> Enbridge pays cash for a Rockies-to-Cushing pipeline network, and takes on dilution and integration risk to get it.
- Title: Enbridge buys Tallgrass crude for $2.55B · Yahoo Finance
- Summary: Enbridge pays cash for a Rockies-to-Cushing pipeline network, and takes on dilution and integration risk to get it. The assets throw off fee-based cash flow…
- Keywords: energy, pipelines, m&a, enbridge, oil, business, finance, buys, Tallgrass, crude, 55B, Yahoo Finance
- Source: Yahoo Finance — https://finance.yahoo.com/energy/articles/enbridge-enb-expands-u-oil-145324207.html
- Published: 2026-09-14T14:53:24+00:00
- Read time: 1 min
- Topics: energy, pipelines, m&a, enbridge, oil, business, finance
## A $2.55 billion cash deal
Enbridge agreed to buy Blackstone-owned Tallgrass Energy's crude oil business outright in cash, pushing deeper into the U.S. liquids pipeline market.
## What comes with it
A 75% stake in the 1,050-mile Pony Express Pipeline, 51% of the Powder River Gateway system, about 8.4 million barrels of storage and crude marketing operations.
## Rockies to Cushing
Pony Express moves roughly 460,000 barrels a day from the Rockies to the Cushing hub, adding exposure to the Bakken, Powder River and Denver-Julesburg basins.
## It fits what they own
Pony Express complements the existing Express-Platte system, so Enbridge can run the two together and pull synergies across its wider liquids network.

> Pony Express gives the company a larger presence in the Rockies and complements its existing Express-Platte system.
## Cash flow without high oil
Enbridge expects the assets to add to distributable cash flow per share in the first full year after closing. The cash flows are infrastructure-style and predictable, so crude prices do not need to rise.

> This means Enbridge does not need higher crude prices to benefit from the acquisition.
## The funding question
Reuters reported Enbridge plans to partly fund the deal with an equity offering. New shares protect the balance sheet but dilute holders and shave the per-share benefit.
## Price leaves no slack
At roughly 10-11 times forward EBITDA, the assets have to perform. Integration costs and a gradual shift toward lower-carbon energy are the other things to watch.

> That leaves Enbridge with greater exposure to an asset class where long-term growth is not guaranteed.
## Key takeaway

The assets throw off fee-based cash flow regardless of oil prices, but an equity raise and a 10-11x EBITDA price mean execution has to be clean.