Tailwater Capital

Tailwater Capital-Backed Tall Oak Midstream II Acquires Redcliff Midstream

DALLAS, March 24, 2021 – Tall Oak Midstream (“Tall Oak”), a full suite midstream provider serving customers in the Mid-Continent, today announced that it has acquired Redcliff Midstream (“Redcliff” or the “Company”), a provider of gas gathering, treating and processing services to producers in Oklahoma’s STACK play. Financial terms of the transaction were not disclosed.

Founded in 2017 as a wholly owned subsidiary of Canyon Midstream Partners II, LLC (“Canyon Midstream”), Redcliff Midstream provides gas gathering, treating and processing services throughout the northern region of the STACK play. Today, the Company’s infrastructure system comprises more than 200 miles of gathering pipeline, a network of five field compression stations across Woodward, Dewey, Blaine and Canadian counties and a 240 MMcf/day cryogenic gas processing plant in Woodward County. Redcliff will complement Tall Oak II’s existing asset base – which includes more than 750 miles of low- and high-pressure gathering lines across seven Oklahoma counties – and expand its infrastructure footprint in the Northern STACK Extension region.

In January 2021, Tall Oak was acquired by Tailwater Capital, a private equity firm based in Dallas. The transaction closed in February 2021.

“Redcliff Midstream’s complementary network of high-quality assets and its diverse customer base are a perfect fit for Tall Oak as we continue to grow our footprint and service offerings in the region,” said Max Myers, Chief Financial Officer of Tall Oak. “We are thrilled with how quickly our partnership with the Tailwater team has presented new opportunities, and we look forward to continuing to work together to grow our business while maintaining best-in-class service for our customers.”

“Redcliff brings an attractive asset base with newly-built pipelines and high-quality compression and processing facilities that augment Tall Oak’s existing capabilities and grow the existing platform” said Jason Downie, Co-Founder and Managing Partner at Tailwater Capital. “The Northern STACK Extension encompasses a robust inventory of economic undeveloped drilling locations and underutilized midstream infrastructure that Tall Oak is actively evaluating as it searches for accretive bolt-on opportunities to expand its regional footprint. Ryan, Carlos, Max, Lindel and the rest of the exceptional Tall Oak management team are uniquely suited to execute on this consolidation strategy given their deep knowledge of the basin and extensive relationships with nearby customers and competitors alike.”

Locke Lord served as legal counsel to Tall Oak. Simmons Energy | A Division of Piper Sandler served as financial advisor and DLA Piper, Porter Hedges and Vinson & Elkins all served as legal counsel to the sellers.

About Tall Oak Midstream, LLC

Based in Oklahoma City, the Tall Oak companies are dedicated to bringing a fresh perspective to serving oil and gas producers with a full suite of midstream services. Core capabilities include natural gas gathering, compression, treating and processing; crude oil gathering and transportation; condensate and water handling; and product marketing solutions. Tall Oak was founded in 2014 by Ryan Lewellyn, Carlos Evans, Max Myers and Lindel Larison who brought diverse and complementary background across the midstream and upstream sectors. Please visit www.talloakmidstream.com for more information.

About Tailwater Capital, LLC

Dallas-based Tailwater Capital is a growth-oriented private equity firm with a well-established track record of working constructively with proven management teams to deliver value-added solutions across the energy value chain. Since its inception in 2013, Tailwater has managed over $3.7 billion in committed capital and the team has executed more than 100 energy transactions in the upstream and midstream sectors representing over $22 billion in transaction value. For more information, please visit www.tailwatercapital.com.


Tall Oak Midstream:
Anthony Triana

Tailwater Capital:
Jonathan Keehner / Julie Hamilton
Joele Frank, Wilkinson Brimmer Katcher

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