Tailwater Capital

Align Midstream Announces Acquisition of East Texas Gathering System

DALLAS, November 13, 2015

Align Midstream Partners (“Align”), a portfolio company of energy-focused private equity firm Tailwater Capital LLC (“Tailwater”), announced today the closing of an acquisition of natural gas gathering pipelines from a leading public producer in East Texas. The gathering system consist of ~60 miles of pipeline located around Shelby and Panola Counties, Texas. As part of the transaction, Align entered into a long-term gas gathering agreement, whereby Align will gather and transport the producer’s natural gas on Align’s existing trunkline. The principal terms of the gathering agreement include:

  • Minimum Volume Commitment;
  • Area of Mutual Interest (“AMI”); and
  • Right of First Refusal on all gathering and processing projects within the AMI

This project provides Align the opportunity to acquire and to optimize an underutilized producer gathering system, and then to connect the gathering system to Align’s trunkline, enhancing the revenue stream from each molecule of produced natural gas.

“We’re grateful to have this opportunity and believe both parties will benefit from this long-term relationship,” said Fritz Brinkman, President and CEO of Align. “In return for providing a debottlenecking solution, Align will benefit from long-term contractual volumes and exclusivity for future midstream growth projects.”

About Align Midstream Partners

Dallas-based Align is a midstream company focused on serving producers’ needs in emerging and established basins with the United States. Align is concentrated on building greenfield midstream assets including gas, crude oil and water gathering pipelines, treating and gas processing plants in emerging basins. Align is also focused on acquiring midstream assets in established basins and on creating opportunities through repurposing facilities as appropriate. Management has a proven track record of providing their customers meaningful midstream solutions. For more information, please visit www.alignmidstream.com.

About Tailwater Capital LLC

Dallas-based Tailwater Capital is a sophisticated, growth-oriented energy private equity firm with a well-established track record, having executed more than 35 energy transactions representing over $11 billion in transaction value. Tailwater currently manages over $1.4 billion in equity 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. For more information, please visit www.tailwatercapital.com.

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