September 22, 2022 —Tailwater Capital LLC (“Tailwater”), a private equity firm that takes a full immersion approach to investing in energy and growth infrastructure solutions, today announced that it has closed definitive agreements to sell Align Midstream Partners II, LLC (“Align” or the “Company”) to M6 Midstream LLC (“Momentum”). Financial terms of the transaction were not disclosed.
“This transaction marks another successful milestone for our team and we believe our assets will continue to drive significant value for our stakeholders,” said Fritz Brinkman, Chief Executive Officer of Align. “Over the past five years, we have built an expansive system of gas gathering and processing assets in the core of the East Texas Haynesville, connecting regional supply from some of the most active producers in the basin to attractive downstream markets. We are thankful for Tailwater’s support in navigating a dynamic market backdrop and are excited to watch Momentum own these assets through the next phase of growth.”
“We are proud of the execution success demonstrated by the Align team over the last five years,” said Jason Downie, Co-Founder and Managing Partner at Tailwater. “Their best-in-class commercial and operational capabilities and superior customer service allowed the company to develop critical midstream infrastructure that will feed downstream gas demand growth for years to come. This marks the second consecutive exit from Align and another strong return for our investors.”
The transaction is Tailwater’s second successful exit for Align. In September 2017, Tailwater announced the sale of Align Midstream, LLC to Enable Midstream for $300 million.
Piper Sandler & Co. served as the exclusive financial advisor to Align Midstream Partners II, LLC in connection with the transaction. Locke Lord served as legal counsel.
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.
About Tailwater Capital LLC
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 $3.8 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.