Enbridge in Talks to Acquire Pony Express Pipeline for $2 Billion, Report Says

Enbridge Inc. is in advanced negotiations to acquire the Pony Express Pipeline from Tallgrass Energy, a portfolio company of Blackstone Inc., for a price of approximately $2 billion, according to a report from Bloomberg News.

The report, which cites people familiar with the matter, suggests a deal for the major U.S. crude oil pipeline could be formally announced within days.

Details of the Potential Transaction

The discussions are at a late stage, but the sources, who requested anonymity because the information is private, cautioned that no final agreement has been reached. They noted that the talks could still collapse or the timing of an announcement could change.

Key points of the reported deal include:

• Asset: Pony Express Pipeline, a significant U.S. crude oil transport system.
• Seller: Tallgrass Energy, which is owned by private equity firm Blackstone Inc.
• Reported Price: Approximately $2 billion.

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Strategic Context

For Enbridge, a leading Canadian energy infrastructure company, the acquisition would represent a substantial expansion of its U.S. midstream footprint. Acquiring a key crude oil pipeline like the Pony Express would bolster its network and secure additional long-term transportation revenue.

Such a transaction would align with a broader industry trend of consolidation in the energy infrastructure sector, where companies seek to gain scale and operational efficiencies. For Blackstone and Tallgrass, a sale would mark a significant divestment and a monetization of their investment in the asset.

Official Statements

As of the report's publication, representatives for Enbridge, Blackstone, and Tallgrass had not immediately responded to requests for comment on the matter. The market awaits an official announcement from the companies involved to confirm the details of the potential acquisition.