Tailwater Capital

Tailwater-Backed Align Midstream Partners II and Elevate Midstream Partners Combine East Texas Assets, Expanding Align’s Existing Footprint

Align to Operate Combined Asset Base, Effective Immediately

Elevate Team Secures Fresh Commitment from Tailwater Capital to Create Elevate Midstream Partners II, Pursuing New Midstream Opportunities

DALLAS, November 11, 2019 – Align Midstream Partners II, LLC (“Align”), a Dallas-based midstream company focused on servicing producers’ gathering and treatment needs in East Texas, and Elevate Midstream Partners, LLC (“Elevate”), a full-service provider of value-enhancing midstream solutions headquartered in Houston, today announced the combination of their respective East Texas asset bases. Both companies are backed by Tailwater Capital (“Tailwater”), an energy-focused private equity firm based in Dallas.

Effective immediately, Align, led by industry veterans Fritz Brinkman and Matthew Osborn, will assume operatorship of the combined asset base, which adds more than 180 miles of active pipeline to its existing footprint across Panola, Rusk, and Harrison Counties. With an average daily volume of more than 300 MMSCFD, the combination provides Align with added processing and compression capabilities, while further diversifying its customer base by adding several marquee East Texas producers who are active in both the Haynesville and Cotton Valley formations.

Concurrent with the closing of the transaction, Roger Fox and the management team of Elevate Midstream Partners, LLC will create Elevate Midstream Partners II, LLC with a $150 million equity commitment from Tailwater to further capitalize on midstream asset acquisitions and greenfield buildout opportunities.

“We are pleased to announce the combination of Align and Elevate’s East Texas asset bases,” said Jason Downie, Co-Founder and Managing Partner of Tailwater Capital. “This strategic combination expands Align’s East Texas asset footprint into areas in which the company already has unmatched expertise and familiarity – and provides Align with the ability to grow and enhance the scale at which it can service producers, while simultaneously positioning Elevate to execute on midstream opportunities in what we believe to be an attractive market.”

“We are excited about this combination and the opportunity to extend our platform in an area of the basin we know well,” said Fritz Brinkman, CEO of Align Midstream Partners II, LLC. “Our number one priority has always been and will continue to be providing our producer customers in East Texas with best in-class service to facilitate their long-term growth plans, and we believe this combination and enhanced scale allows us to do just that.”

“Over the past year we have executed on our strategic growth objectives with the consolidation of two platform acquisitions – more than doubling volume on the system – while expanding our relationship with Sabine Oil and Gas,” said Roger Fox, CEO of Elevate Midstream Partners II, LLC. “We believe the combined business is well-positioned to continue to meet the growing needs of customers, and we look forward continuing to work with Jason, Edward and the rest of the Tailwater team to execute on further midstream opportunities available in today’s market.”

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 and treating assets located in the Shelby Trough of the Haynesville formation. Align II is the second partnership for the management team and Tailwater Capital. 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 Elevate Midstream Partners II, LLC

Headquartered in Houston, Elevate Midstream Partners II, LLC is a private midstream service company focused on providing responsive, scalable, value-enhancing midstream solutions to exploration and production customers. Prior to the combination with Align Midstream Partners II, Elevate owned and operated more than 180 miles of active pipelines, 19,000-horsepower of compression, an 80 MMcf/d gas processing plant, and related dehydration and NGL stabilization equipment. For more information, please visit: www.elevatemidstream.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 $3.5 billion in committed capital and the team has executed more than 100 energy transactions in the upstream and midstream sectors representing over $19 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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