Tailwater Capital

Align Midstream Partners II Announces Midstream Joint Venture with Sabine Oil & Gas and the Completion of the TOPS Pipeline

Expands Relationship with Sabine Oil & Gas, a Wholly Owned Subsidiary of Osaka Gas USA, and Increases Gas Gathering and Processing Capabilities in the Carthage Area

DALLAS, June 29, 2020 – Align Midstream Partners II, LLC (“Align”), a Dallas-based midstream company backed by Tailwater Capital (“Tailwater”), today announced the completion of the TOPS Pipeline and the formation of a joint venture agreement in the pipeline with Sabine Oil & Gas (“Sabine”), a fully owned subsidiary of Osaka Gas USA (“Osaka”). The TOPS pipeline is a 30-mile, 16-inch diameter gas gathering pipeline in the Carthage area with interconnections to key downstream takeaway markets. The transaction marks Osaka Gas USA’s first acquisition in the midstream business in the United States.

“We are excited to partner with Sabine and grow our relationship in East Texas,” said Fritz Brinkman, CEO of Align. “The TOPS Pipeline will bolster our existing East Texas footprint and enhance our ability to serve the growing Haynesville production, providing our customers with greater access to a number of attractive markets across the Carthage hub.”

“Given the long term view of Sabine and its parent Osaka, the TOPS investment is another step in vertically integrating Sabine and advancing our strategy of capturing value from the well head to the burner tip for our East Texas assets,” commented Doug Krenek, CEO of Sabine. “We are pleased to be expanding our relationship with Align as they are a very competent East Texas midstream company.”

About Align Midstream Partners II, LLC

Align Midstream Partners II is a Dallas-based midstream company focused on servicing producers’ needs in East Texas with gathering, processing and treating assets across the Haynesville and Cotton Valley formations. Align II is the second partnership for the management team and Tailwater Capital. In November 2019, Align II announced the combination of its assets with Elevate Midstream, LLC, expanding Align II’s footprint in East Texas. Align Midstream Partners I was sold in October of 2017 to Enable Midstream. Align Midstream Partners I consisted of a 100-million cubic feet per day cryogenic natural gas processing plant in Panola, Texas, and approximately 200 miles of rich and dry natural gas gathering pipelines across Rusk, Panola and Shelby counties in Texas and DeSoto Parish in Louisiana. For more information, please visit: www.alignmidstream.com.

About Sabine Oil and Gas Corporation

Sabine Oil & Gas Corporation is a Houston, Texas based oil & natural gas company engaged in the acquisition, development, exploitation and exploration of oil and natural gas properties in the onshore United States. For additional information on Sabine Oil & Gas Corporation, please visit www.sabineoil.com.

About Tailwater Capital, LLC

Dallas-based Tailwater Capital is a growth-oriented energy private equity firm with a well-established track record of working constructively with proven management teams to deliver value-added solutions. Tailwater currently manages more than $3.7 billion in committed capital and the team has executed more than 100 energy transactions in the upstream and midstream sectors representing over $20 billion in transaction value. For more information, please visit www.tailwatercapital.com.

Jonathan Keehner / Julie Oakes
Joele Frank, Wilkinson Brimmer Katcher

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