Tailwater Capital makes investment into water-handling and disposal company

Dallas-based private equity firm Tailwater Capital announced an $80 million initial equity commitment to Goodnight Midstream today. Goodnight Midstream, formerly 1804 Operating, provides water handling and salt water disposal to oil and gas companies, and plans to use the capital to further develop water gathering and disposal facilities in North Dakota, as well as to fund an expansion into Texas and “other regions of interest,” according to a company press release.

Goodnight owns more than 150 miles of saltwater gathering pipelines connected to a network of 16 saltwater disposal facilities in North Dakota. The company also has an emerging presence in Wyoming’s Powder River Basin and the Permian Basin in Texas and New Mexico.

“Producers, particularly in the current environment, are focused on reducing capex and lease operating costs without impacting production flow assurance.  Goodnight Midstream has provided water handling solutions for many leading operators in North Dakota and we are thrilled to be partnering with this management team and investing behind its strategy to expand into other basins in North America,” said Tailwater Capital Principal Joel Fry.

“This initial capital commitment from Tailwater gives us the financial flexibility to continue to grow with our producers and pursue larger development projects and acquisitions.  Tailwater brings tremendous expertise in energy investing and we’re glad to have them join our team,” said Goodnight CEO Patrick Walker.

Tailwater has executed on more than 35 energy transactions representing more than $11 billion in value. The company currently manages over $1.6 billion in equity capital, over $700 million of which is available for new investment. Tailwater is focused on acquiring and growing midstream assets as well as participating in non-operated upstream opportunities in select basins.

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