The Dallas energy-infrastructure investor will combine one of the acquired businesses with an existing portfolio company in Oklahoma’s Arkoma Basin

By Luis Garcia
Jan. 27, 2021 7:00 am ET

Tailwater Capital agreed to acquire two pipeline operators from private-equity peer EnCap Flatrock Midstream and will combine one of them with another company it owns as size becomes increasingly important in the energy industry.

The two acquired companies, Tall Oak Midstream II LLC and Tall Oak Midstream III LLC, are managed by the same team but operate in different areas of Oklahoma. Tall Oak Midstream III, which was formed in 2017, will merge more than 120 miles of pipelines and a natural-gas processing plant it owns in…