Tailwater Capital

Silver Creek Midstream Closes Acquisition of The Powder River Basin Midstream Assets from Genesis Energy, L.P.

DALLAS, Oct. 11, 2018 /PRNewswire/ — Tailwater Capital announces that its portfolio company Silver Creek Midstream, LLC (“Silver Creek”), a private midstream company located in Irving, Texas, through a newly formed joint venture, closed the acquisition of the Powder River Basin Midstream Assets and the associated crude oil gathering system and facility assets from Genesis Energy L.P. (“Genesis”) for approximately $300 million.  Completed in partnership with Silver Creek’s financial sponsors, Tailwater Capital and The Energy & Minerals Group, this acquisition will significantly enhance Silver Creek’s footprint in the Powder River Basin (“PRB”) in order to better serve its customers.

The Company has experienced meaningful growth over the past year having closed on both the acquisition of the Red Butte Pipeline System in December 2017 and the acquisition of the Tallgrass Gathering System in February 2018, which offered the Company an immediate presence in the PRB and provided a strategic 50-mile footprint in the core of the region.  At that time, Silver Creek also announced a joint venture with Tallgrass Energy Partners to develop the Iron Horse Pipeline to transport crude oil from the PRB to Guernsey, Wyoming.

The Powder River Basin Midstream Assets will be a critical addition to the Silver Creek portfolio and should accelerate Silver Creek’s ability to provide a full suite of crude services to producers in the core of the basin.  Pro forma for the acquisition, Silver Creek Midstream now owns over 190 miles of crude trunk line and gathering pipelines with multiple interconnections to downstream markets out of Guernsey.  Silver Creek has significant plans for additional growth in and around the system.

“This acquisition represents a tremendous opportunity for Silver Creek,” said, J. Patrick Barley, Founder and Chief Executive Officer of Silver Creek Midstream. “The addition of Genesis’ Powder River Basin pipeline system along with the associated crude oil gathering and rail facility allows us to meet the evolving needs and growing demand of our customer base in the region.”

“It has been exciting to partner with Silver Creek since its formation in October 2017 and we are looking forward to working with The Energy and Minerals Group to support Silver Creek’s growth in the PRB going forward,” said Stephen Lipscomb, Principal at Tailwater Capital. “The Genesis Powder River Basin acquisition gives Silver Creek a unique footprint to provide premium crude takeaway solutions for our various customers. Drilling activity in the PRB continues to gain momentum and we are thrilled to be a part of that growth going forward.”

About Silver Creek Midstream, LLC

Headquartered in Irving, Texas, Silver Creek Midstream is a private midstream company focused on providing crude oil gathering, transportation and storage services in Texas and Wyoming. Silver Creek Midstream is backed by a $300 million funding commitment from Tailwater Capital, LLC and Silver Creek management. For more information, please visit: www.scmidstream.com.

About Tailwater Capital, LLC

Dallas-based Tailwater Capital is a highly specialized, growth-oriented energy private equity firm with a well-established track record, having executed more than 100 energy transactions in the upstream and midstream sectors representing over $18.8 billion in transaction value. Tailwater currently manages over $2.7 billion in committed capital, over $800 million of which is available for new investments. For more information, please visit www.tailwatercapital.com.

Jon Keehner / Julie Oakes / Kate Clark
Joele Frank, Wilkinson Brimmer Katcher

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