Plains All American makes bolt-on deals in Eagle Ford, Permian basin, and Mid-Con

Plains All American Pipeline LP, Houston, and Plains GP Holdings (collectively, Plains) agreed to three bolt-on acquisition deals growing the crude oil footprint in the Permian, Eagle Ford, and Mid-Con, for an aggregate cash consideration of about $670 million. 

Plains signed a definitive agreement to acquire Ironwood Midstream Energy, which owns an Eagle Ford basin gathering system, from EnCap Flatrock Midstream for about $475 million. The deal is expected to close in first-quarter 2025, subject to customary closing conditions.

Effective Jan. 1, 2025, a subsidiary of Plains Permian Basin joint venture, Plains Oryx Permian Basin LLC, acquired Medallion Midstream’s Delaware Basin crude oil gathering business from The Energy & Minerals Group for about $160 million ($105 million net to PAA’s interest).

On Dec. 23, 2024, a subsidiary of Plains acquired the remaining 50% interest in Midway Pipeline LLC from a subsidiary of CVR Energy for about $90 million.

Plains has also agreed to purchase about 12.7 million units, or 18%, of its outstanding Series A Preferred Units at “par” ($26.25) for a purchase price of about $330 million (plus accrued and unpaid distributions) from EnCap Flatrock Midstream. The deal is expected to close in late January 2025.