November 2, 2023 —Tailwater Capital LLC (“Tailwater”), an energy and growth infrastructure private equity firm, and a fund managed by the Private Equity Group of Ares Management (“Ares”), a leading global alternative investment manager, today announced that they have signed definitive agreements to sell Cureton Front Range LLC (“Cureton” or the “Company”) to Williams Field Services Group, LLC (“Williams”), a subsidiary of The Williams Companies, Inc. (NYSE: WMB), with an expected close in December 2023, subject to regulatory approvals.
“This transaction represents yet another step forward for our team and positions Cureton for its next chapter of growth while holding true to our commitment to deliver the highest quality of service to our customers and communities in which we operate,” said Charlie Beecherl, President and Chief Executive Officer of Cureton. “I want to express profound gratitude to our exceptional team, whose remarkable work ethic, shared values, and commitment to our company’s culture were pivotal in driving the successful sale of our business. We are also thankful for Tailwater’s and Ares’ steadfast support as we navigated a constantly evolving market landscape. As we look to the future, we are confident our assets remain in capable hands with Williams and are poised for an exciting trajectory of growth in combination with Williams’ existing asset base. Finally, I want to thank our customers who have been incredible partners these past six years, we appreciate your support.”
Tailwater and Ares initially invested in Cureton in 2017 to pursue an anchored greenfield midstream strategy in the DJ Basin in Colorado. Cureton’s initial project started with an acreage dedication from a single private producer and culminated in the successful development of a premier multi-customer midstream gathering and processing platform. Cureton’s asset base now consists of over 260 miles of low and high pressure pipelines, 109 MMcf/d of natural gas processing capacity, 64,000 horsepower of compression, and is underpinned by long-term contracts from blue-chip operators covering more than 200,000 dedicated acres and over two million acres of AMIs.
“We commend the Cureton team for the success they have demonstrated over the course of our partnership,” said Edward Herring, Co-Founder and Managing Partner of Tailwater Capital. “Cureton has effectively expanded its presence in the oil-abundant rural landscape of the DJ Basin, emerging as a market leader thanks to its team’s substantial experience and strategic partnerships with oil and gas producers.”
“Cureton has continued to strategically enhance its operations, create a capital-efficient business, and demonstrate unwavering dedication to its customers, communities, and people,” said David Cecere, Partner of Tailwater Capital. “Given the continued need for scale in the midstream sector, we believe it is an optimal time to monetize the business and are excited to provide another strong return for our investors.”
“We are very proud of the many accomplishments that the Cureton team has achieved throughout our partnership,” said Robert Kimmel, Partner in the Ares Private Equity Group. “We believe that the company remains well positioned and we wish Williams every success in shepherding this next phase of Cureton’s growth.”
Evercore served as the exclusive financial advisor to Cureton in connection with the transaction. Kirkland & Ellis served as legal counsel. RBC Capital Markets served as financial advisor and Davis Polk & Wardwell LLP served as legal advisor to Williams in connection with the transaction.
About Cureton Midstream
Cureton is a Denver-based, growth-oriented midstream company focused on providing creative and transparent commercial solutions to oil & gas producers in the DJ Basin. Cureton was founded in 2016, and the management team brings substantial experience in engineering, constructing, and operating assets across the United States. For additional information on the company, please visit www.curetonmidstream.com.
About Tailwater Capital
Dallas-based Tailwater Capital is an energy and growth infrastructure private equity firm with a well-established track record of working constructively with proven management teams to deliver value-added solutions. Tailwater has raised more than $4.5 billion in committed capital since inception and the team has executed more than 100 transactions representing over $23 billion in value. For more information, please visit www.tailwatercapital.com.
About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, private equity, real estate and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns
throughout market cycles. As of September 30, 2023, Ares Management Corporation’s global platform had approximately $395 billion of assets under management, with approximately 2,800 employees operating across North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com.
Includes non-Tailwater controlled capital pursuant to the Tailwater led management buyout processes for which Tailwater provides management related services.