Tailwater Capital and The Energy & Minerals Group have agreed to sell Silver Creek Midstream's Powder River Basin crude oil assets to a subsidiary of Plains All American Pipeline and Plains GP Holdings for approximately $585 million in cash. The transaction involves the sale of SCM PR II, the parent company of the assets, which is owned by subsidiaries of Tailwater, EMG and Silver Creek management.

The Powder River Basin system includes about 600 miles of gathering and transmission pipelines, roughly 350,000 barrels per day of operating capacity, and about 1.2 million barrels of operational storage capacity. It also includes a 49% non-operated interest in the Powder River Gateway Joint Venture. The network is supported by approximately 915,000 dedicated acres under long-term agreements and minimum volume commitments averaging more than eight years, serving producers with connectivity to the Guernsey and Fort Laramie hubs.

"This transaction reflects the quality of the scaled midstream platform that Silver Creek has built in the Powder River Basin, supported by strong customer relationships and critical connectivity across the region," said Jason Downie, co-founder and managing partner of Tailwater. RBC Capital Markets served as sole financial advisor to Silver Creek and its sponsors, with Troutman Pepper Locke serving as legal counsel. The deal is expected to close in the fourth quarter of 2026.