I think the outcome depends a lot how the UK gets involved.
By 1865 I think the US would have a serious shot at making the UK look bad. Union troops have Spencer carbines in quantity, ironclads and more modern ships are on the seas, the armies have field experience, they are at home, and they are organized.
Starting this in 1861 could lead to trouble if the UK fully commits. Some saw the US as a future competitor (rightfully so) and would not have minded the balkanization of the US. The RN will strangle US commerce and could shell NYC, Boston, and other Union targets almost at will. Halifax would serve as a major base and perhaps in time New Orleans and Charleston too. Look for the Confederacy to get at least 6 extra months on life as Union troops are repositioned as a possible defense against UK incursions from British North America.
Frankly UK intervention might draw in Paris, which might draw in Berlin, which might draw in Moscow, which might spark a world war on three or more fronts. Look for a bloody war with the US-Germany-etc against CSA-France-UK where the UK gains little but prestige while everyone else bleeds heavily. I could see this leading to early German unification under the right circumstances.
Western Canada is sparsely settled, if the UK loses somehow I could see the US buying out the whole of the region from Manitoba on east (this was considered for a proposal in OTL) and leaving modern Canada as Ontario, Quebec, and the Atlantic provinces. The whole of Canada will be tempting and *maybe* western Ontario gets added but without complete occupation and some sort of pair of naval victories nothing else will get done unless the Quebecois force the issue, and maybe the try for independence (Ha!).