Enbridge has acquired Salt Creek Midstream for $600.0 million, a cash transaction that adds a substantial crude oil gathering and produced water handling network in the Permian Basin’s Delaware Basin to the Canadian pipeline giant’s portfolio. The deal, which closed following customary regulatory approvals, transfers ownership of Salt Creek’s assets from its previous private equity backers to Enbridge.
Salt Creek Midstream is a greenfield midstream company built to provide a full suite of midstream services and downstream solutions to producers in the Delaware Basin. Its infrastructure includes crude oil gathering pipelines, storage, and produced water disposal systems, which are critical for supporting drilling activity in one of the most active oil-producing regions in the United States. Enbridge, a North American energy infrastructure leader, operates extensive crude oil and liquids pipelines across the continent, and this acquisition extends its reach into the Permian’s core.
The acquisition is strategic for Enbridge because it provides a direct foothold in the Delaware Basin, a region where production growth has outpaced takeaway capacity in recent years. By owning Salt Creek’s gathering and disposal assets, Enbridge can connect local producers to its larger mainline systems, offering a seamless route from wellhead to market. For Salt Creek’s producer customers, the deal brings the financial stability and operational scale of a major pipeline operator, which could support longer-term development plans.
The transaction is expected to generate operational efficiencies by integrating Salt Creek’s assets with Enbridge’s existing Permian-related infrastructure, including its crude oil export and storage capabilities on the Gulf Coast. Enbridge has indicated that the acquisition will be immediately accretive to distributable cash flow, with no major capital expenditures required in the near term. The company plans to retain Salt Creek’s existing workforce and operational model to ensure continuity for its customers.
With this purchase, Enbridge strengthens its position in the Permian Basin, a region that continues to drive U.S. crude production growth. The combined entity will offer producers a more integrated service offering, from gathering to long-haul transportation, while Enbridge gains a new revenue stream tied to upstream activity. The deal also positions the company to capture additional volumes as Delaware Basin output expands, though near-term market conditions will influence how quickly those opportunities materialize.