Plains All American to Acquire Silver Creek Assets for $585 Million

Plains All American Pipeline and Plains GP Holdings have agreed to acquire SCM PR II, LLC, known as Silver Creek Midstream, for approximately $585 million in cash. The deal is expected to close in the fourth quarter of 2026. This acquisition expands the company's midstream infrastructure in the Powder River Basin and aligns with its return targets.

"Silver Creek represents a strategic addition to Plains’ Rockies platform. The acquisition is in line with our internal rate of return thresholds of 300 to 500 basis points above our cost of capital and expands our footprint in the Powder River Basin, a region supported by substantial remaining drilling inventory and an outlook for continued producer development over the coming years," said Willie Chiang, Chairman, CEO, and President of Plains, in a statement regarding the deal.

Asset Overview and Strategic Footprint

The acquisition includes infrastructure assets located within the Powder River Basin, a region with ongoing producer activity. Key components of the transaction include:

• Pipeline Infrastructure: 600 miles of active crude oil pipelines.
• Operational Capacity: 350,000 barrels per day of operating capacity.
• Storage Assets: 1.2 million barrels of total storage capacity.
• Joint Venture Interest: A 49% equity interest in the Powder River Gateway joint venture.

The deal is supported by 915,000 dedicated acres. These operations are underpinned by long-term contracts with a weighted-average term exceeding eight years, providing revenue visibility for the acquired operations.

Financial Context and Market Position

Plains All American is targeting specific return metrics with this acquisition. By aiming for an internal rate of return (IRR) between 300 and 500 basis points above its cost of capital, the firm seeks to ensure that the expansion contributes to its financial performance.

As of September 18, 2026, Plains All American Pipeline (PAA) shares were trading at $25.37. The transaction remains subject to standard regulatory reviews and customary closing conditions before it can be finalized at the end of 2026.

What Is at Stake for Midstream Operators

For midstream companies, securing dedicated acreage and long-term contracts is a primary method for mitigating volume risk. The Powder River Basin remains a focal point for producers. By consolidating its presence there, Plains aims to capture increased throughput as regional drilling inventory is developed. The acquisition is a consolidation move in the Rockies, where scale and integrated infrastructure help operators maintain margins despite fluctuating commodity prices.