Tailwater Capital

Producers Midstream II Announces New $200M Secured Credit Facility

DALLAS, June 23, 2022 – Producers Midstream II, LLC (“Producers Midstream” or the “Company”), a Dallas-based portfolio company of Tailwater Capital focused on providing a full suite of turnkey midstream solutions to producers across the U.S., today announced that it has secured a new syndicated credit facility led by Texas Capital Bancshares, Inc., Bank of Oklahoma and Cadence Bank. The credit facility will allow the Company to borrow up to an additional $200 million assuming certain conditions are met.

Following the successful acquisition and integration of Midcoast Energy’s gas gathering and processing assets in the Anadarko Basin earlier this year, Producers Midstream has continued to optimize and integrate its operations and grow its geographic footprint. This integration effectively combines the Anadarko Basin to midstream operations in the Permian Basin and creates extensive running room for further growth behind the consolidated system. The credit facility will provide additional resources to further support the company’s operations and ability to capitalize on the growing opportunity set within the Eastern Shelf of the Permian Basin as production continues to increase with best-in-class well results. Operators behind the Company’s midstream system, targeting the Strawn Sands, have increased production by over 400% since the beginning of 2019 due to breakevens on par with or exceeding the core of the Midland Basin.

“We continue to see strong momentum across our business and remain intently focused on solidifying our role as the midstream infrastructure partner of choice for operators targeting the Strawn Sands within the Eastern Shelf,” said Matt Flory, Chief Executive Officer of Producers Midstream. “The integration of the Midcoast assets expanded our capabilities in key geographies, and this commitment underscores our growth potential as we continue to provide a high quality and effective midstream infrastructure solutions for our customers.”

“This financing further positions Producers Midstream to capitalize on significant long-term opportunities in an increasingly attractive area,” said Stephen Lipscomb, Partner at Tailwater Capital. “Our customers continue to deliver outstanding well results, and we will continue providing them with reliable, responsive and innovative service offerings.”

Kirkland & Ellis LLP served as legal advisor to Producers Midstream and Tailwater Capital.

About Producers Midstream

With more than 70 years of midstream experience, the Producers Midstream management team is committed to maximizing the value of our producer’s operations by creating a system of increased reliability and predictability, supported by our culture of service, ingenuity, and responsiveness.



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