Plains All American Pipeline is buying Silver Creek Midstream's Powder River Basin crude oil gathering and storage system for about $585 million in cash, the companies said September 16.

A subsidiary of Plains All American Pipeline, L.P. and Plains GP Holdings, together called Plains, will acquire SCM PR II, LLC, the parent company that holds Silver Creek's Powder River Basin assets. SCM PR II is currently owned by subsidiaries of Tailwater Capital LLC, The Energy & Minerals Group (EMG) and Silver Creek's management. The companies value the deal at approximately $585 million in aggregate cash consideration.

The assets

Silver Creek's Powder River Basin system includes:

  • About 600 miles of gathering and transmission pipelines
  • Roughly 350,000 barrels a day of operating capacity
  • About 1.2 million barrels of operational storage capacity
  • A 49% non-operated interest in the Powder River Gateway Joint Venture

The network connects to the Guernsey and Fort Laramie hubs and today gathers and transports about 125,000 barrels a day for producers in the basin. Roughly 915,000 acres are dedicated to the system through long-term agreements and minimum volume commitments, with an average of more than eight years remaining on those contracts. Silver Creek says its customers include the largest producers operating in the Powder River Basin.

Why the sellers are exiting

Tailwater and EMG backed Silver Creek's management team as it built the platform. Jason Downie, co-founder and managing partner of Tailwater, pointed to Silver Creek's "strong customer relationships and critical connectivity across the region." John Raymond, co-founder, managing partner and co-CEO of EMG, said Silver Creek "has established an important midstream position in the Powder River Basin." J. Patrick Barley, founder, chairman and CEO of Silver Creek Midstream, thanked Tailwater and EMG for their support as the company "developed the premier crude oil midstream platform in the Powder River Basin."

Timeline and advisors

The deal is expected to close in the fourth quarter of 2026, subject to customary closing conditions and regulatory approvals. RBC Capital Markets is sole financial advisor to Silver Creek, Tailwater and EMG on the sale. Troutman Pepper Locke is Silver Creek's legal counsel.

The sale comes with WTI crude trading at $84.65 a barrel in oil markets as of June 15, 2026, according to the EIA.