Latham Advises Plains All American Pipeline on US$585 Million Acquisition of Powder River Basin Assets From Silver Creek Midstream
Plains All American Pipeline (PAA) and Plains GP Holdings (PAGP) will acquire Powder River Basin assets from Silver Creek Midstream for $585 million. Latham & Watkins LLP advised on the deal, covering various legal aspects.
How this was made
The 30-second read
Why it matters
The $585M cash transaction expands the company's asset base in the Powder River Basin, a key natural gas region.
Market read
The acquisition is material for PAA and PAGP, likely influencing their stock prices and signaling continued consolidation in the midstream sector.
What to watch
Financing structure and potential regulatory scrutiny could delay benefits.
Background
Plains All American Pipeline and its GP announced a definitive agreement to acquire assets from Silver Creek Midstream.
Ticker impact
Plains All American Pipeline announced a $585M acquisition of Powder River Basin assets.
Potential upside of 5‑7% if the market prices in synergies.
Large cash deal at a premium to comparable transactions; market may react favorably.
Plains GP Holdings, the GP of the partnership, is part of the acquiring entity.
Modest upside of 2‑4% as investors view the transaction favorably.
Deal adds valuable assets to the partnership, supporting future cash flows.
Market effects
Midstream oil & gas sector may see increased M&A activity as assets consolidate.
Western U.S. energy infrastructure market could tighten supply dynamics.
Adds to broader trend of consolidation in energy logistics worldwide.
Counterpoint
Deal may be overpriced; integration risk could pressure margins.
Key entities
- CompanyPlains All American Pipeline
Acquirer, listed on Nasdaq (PAA).
- CompanyPlains GP Holdings
GP of the partnership, listed on Nasdaq (PAGP).
- CompanySilver Creek Midstream
Seller of the Powder River Basin assets.