Valiant Midstream is Tailwater’s first commitment in its new midstream fund – Energy Fund III

Oklahoma’s Valiant Midstream has secured a $150 million commitment from Dallas-based Tailwater Capital, an energy-focused private equity firm.

Valiant Midstream provides solutions to midstream customers in the Mid-Continent and across North America, including gas gathering, processing, treating and compression, crude oil gathering, storage and transportation, condensate stabilization/splitting, produced water gathering and redelivery, and commodity marketing.

Valiant is led by President and CEO Brandon J. Webster, COO Chad B. Cagle and CFO Zach N. Gray. The executives have pedigrees from Kinder Morgan, Inc. (NYSE: KMI), Copano Energy, LLC (acquired by KMI), Enable Midstream Partners, LP (NYSE: ENBL), Midstates Petroleum, LLC (NYSE: MPO) and SemGroup Corporation (NYSE: SEMG). The team has experience managing, constructing and operating assets in the Mid-Continent, Permian Basin, Rockies, Bakken and Haynesville. Valiant plans to focus on the Mid-Continent including Oklahoma’s STACK/SCOOP producing areas.

Jason Downie, Managing Partner at Tailwater, said, “To be successful in the Mid-Continent, we believe that it is extremely important to have a team that has deep ties to the basin as well as long-standing relationships with existing producers and midstream operators in the area.  Valiant brings tremendous familiarity and midstream expertise across the Mid-Continent to Tailwater, and we are thrilled to be partnering with a team that is well-respected in the Oklahoma community.  This team represents the first commitment in our new midstream fund, Energy Fund III.”

“We couldn’t be more excited to be building a company at home in Oklahoma,” said Brandon Webster.

Tailwater Capital Commits $150 Million to Valiant Midstream

“While Valiant stands ready to pursue opportunities in all U.S. basins, we’re excited about the landscape in the Mid-Continent. The growth in the SCOOP and STACK have revitalized our state and we expect production to hit record levels. With more than 130 rigs deployed in the state, we know Oklahoma is primed for growth and Valiant is here to serve the producers who invest here.”

Webster said his team had sought a capital partner with long-term alignment, ability to expedite the evaluation of investment opportunities, and midstream expertise . “Tailwater exceeded our expectations,” Webster said.

Valiant Midstream was represented by Connor & Winters, LLP’s Tulsa, Oklahoma office. Partner J. Ryan Sacra served as lead advisor to Valiant. Thompson & Knight, LLP advised Tailwater Capital, with J. Holt Foster, III as lead counsel from the firm’s Dallas office.

Tailwater currently manages over $2.1 billion in committed capital, over $700 million of which is available for new investments. Tailwater is focused on acquiring and growing midstream assets as well as participating in non-operated upstream opportunities in select basins.

Tailwater presenting at the EnerCom Conference

Tailwater Capital is participating in the Private Equity Panel at EnerCom’s The Oil & Gas Conference®. To register for the conference please visit the conference website.


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