The Powder River is emerging as a basin to watch as growing producer optimism attracts investments from major midstream players.
In September, Enbridge (ENB) reached a $2.55B deal to acquire Tallgrass Energy’s crude assets, including 75% of Pony Express and 51% of Powder River Gateway. Shortly afterwards, Plains All American (PAA) acquired Silver Creek Midstream’s crude gathering assets for $585MM, including the remaining 49% interest in Powder River Gateway. The transactions position both companies to capitalize on anticipated production growth across the basin.
The acquisitions reflect a shared outlook for the Powder River’s long-term potential. Plains highlighted the basin’s substantial remaining drilling inventory and an attractive outlook for continued development, while Enbridge cited growing crude production across the Powder River and Denver-Julesburg basins. ENB is also moving forward with the $300MM Pony Express expansion, increasing capacity from 460 Mb/d to 515 Mb/d by late 2027.
Producer commentary supports this optimism. Occidental (OXY) recently described the Powder River as increasingly critical to its US oil growth strategy, and is shifting development activity from the DJ into the Powder River as well productivity and economics improve. WRC Energy plans to increase its rig count from 2 to 3 in early 2027, expanding annual drilling from ~35 to 50 wells and targeting production above 40,000 boe/d in 2H27. Elsewhere, 1876 Resources expanded its 2026 drilling program by six wells, while Epsilon Energy is preparing for additional Powder River development in 2027.
The long-term opportunity could be even larger. Anschutz Exploration CEO Joe DeDominic suggested in 2025 that the Powder River could eventually support 20–25 rigs, highlighting the potential for drilling activity to expand well beyond current levels. In Energy Data Studio, East Daley Analytics is currently tracking 14 rigs in the basin.
See East Daley’s Crude Hub Model to learn more. The recent developments suggest the Powder River may be in the early stages of a broader midstream consolidation cycle. As producers expand drilling programs, growing volumes could increase demand for gathering infrastructure, storage and pipeline takeaway capacity. Enbridge and Plains are positioning early, securing strategic assets ahead of potential production growth. If producers deliver on their development plans, the basin could attract additional investment and consolidation as larger midstream companies look to capture a growing share of Powder River barrels. – Keland Rumsey Tickers: ENB, OXY, PAA.
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