Plains All American Pipeline has entered into three separate bolt-on acquisitions for an aggregate cash consideration of approximately $670 million. These acquisitions further bolster Plains' crude oil infrastructure footprint in the Permian, Eagle Ford and Midcontinent.
Ironwood Midstream: Plains' M&A moves include signing a definitive agreement to acquire EnCap Flatrocks’s Ironwood Midstream Energy Partners II LLC (Ironwood II), which owns an Eagle Ford Basin gathering system, for approximately $475 million. Ironwood’s crude oil system already interconnects with Plains. The transaction is expected to close in Q1 2025.
Medallion’s Delaware Basin Oil System: Effective January 1, 2025, Plains Oryx Permian Basin LLC, a subsidiary of the Plains Permian Basin joint venture, acquired Medallion Midstream’s Delaware Basin crude oil gathering business from The Energy & Minerals Group for approximately $160 million. In our Crude Oil Permian Report, we track the receipts on this system that feed crude oil to the Crane hub, which is connected to Plains’ Cactus Pipeline that flows to Corpus Christi. The system can also deliver to Gray Oak, EPIC Crude and Longhorn.
Midway Pipeline: On December 23, 2024, a subsidiary of Plains acquired the remaining 50% interest in Midway Pipeline LLC from a subsidiary of CVR Energy for approximately $90 million. Midway operates a pipeline that connects CVR’s Coffeyville refinery in Kansas (132 Mb/d capacity) to the Cushing, OK, crude oil hub.
