Tailwater Capital Takes a Look Back at the Key Events of 2021 and the Opportunities Ahead in 2022
The global energy and infrastructure sectors are undergoing a long-term transition from a conventional to a low carbon future. In 2021, Tailwater’s “all-of-the-above” investment strategy proved to be tremendously successful and uniquely well positioned to support this broader evolution and the incredible transformations we are witnessing in our key markets.
We are excited to be leaders in an industry where innovation and environmental solutions can deliver outsized returns while having a lasting, positive impact on our society. We continue to invest in three core areas: Energy Supply, Delivery & Logistics Infrastructure, and Recycling & Byproduct Management.
Our full immersion approach and demonstrated track record of solutions-based growth infrastructure investment has positioned our Firm well as counterparties in the sector navigate the energy transition. We continue to see more actionable opportunities to invest capital that meet our return mandates and provide a path toward a lower carbon future.
Huge Market Opportunity
The International Energy Agency (“IEA”) suggests that, on average, ~$2.5 trillion of capital will be spent annually over the next ten years across the globe to solve growing energy infrastructure needs.
$300M
26%
4
January
- Sector: Delivery & Logistics Infrastructure
- Tall Oak II & III are dedicated to bringing a fresh perspective to serving energy producers with a full suite of midstream services
February
- Sector: Delivery & Logistics Infrastructure
- NorTex owns and operates high-deliverability, multi-cycle natural gas storage facilities that enable continued growth in renewable power generation in North Texas, acting as a mission-critical component of reliability given the intermittency issues of solar and wind in the region
March
- Sector: Energy Supply, Delivery & Logistics Infrastructure, Recycling & Byproduct Management
- Freestone is currently seeking private opportunities focused on facilitating the energy transition, improving the efficiency of energy ecosystems, and reducing emissions
- First investment completed in December, focused on battery recycling infrastructure
October
- Sector: Recycling & Byproduct Management
- Frontier Carbon Solutions is focused on reducing greenhouse gas emissions by providing carbon sequestration services to industrial emitters through commercial CCUS infrastructure in the Rocky Mountain Region
November
- Sector: Energy Supply
- Tailwater Royalties will deepen the Firm’s footprint in critical regions with a focus on the acquisition of minerals and royalties across multiple basins throughout North America
November
- Sector: Recycling & Byproduct Management
- JV formed with major waste company to create a sustainability-focused, waste-to-product company developing manufacturing facilities that upcycle municipal solid waste into building products and other materials
December
- Sector: Delivery & Logistics Infrastructure
- Producers II announced the acquisition of certain assets of Midcoast Energy, which represents a long-term value creation opportunity to combine high-quality, complementary assets and link a growing production base in Scurry and Fisher County and infrastructure in the Anadarko Basin
Tailwater remains grateful for the support of our investors and the contributions of our team. In 2021, we continued to enhance the strength of this team and the unique offerings of the Tailwater Ecosystem.
- Formed Tailwater Innovation Partners, an in-house resource that works with each of our portfolio partners to build better businesses
- Led by Roger Fox, Tailwater’s Head of ESG and a member of the firm’s ESG Steering Committee
- Pursued carbon footprint and DE&I initiatives at the GP and portfolio level
- Worked with portfolio companies to drive data collection around relevant ESG metrics and to optimize and report on best practices for emissions mitigation and safety
Advancing Tailwater’s Platform
- Stephen Lipscomb promoted to Partner
- John Spradling, Scott Peters and Drew Winston promoted to Principal
- Tanner Newton promoted to Vice President
- Mark Lutz promoted to Senior Associate
- Trey Hatcher joined as Vice President
- Olivia Edwards and James Pyle joined as Associates
- Roger Fox joined as CEO of Tailwater Innovation Partners and Head of ESG
- John Determan joined as Director of Engineering Systems
- Dana Sweet joined as Director of Energy Innovation
- Doug Prieto joined as President and Co-Founder, Tailwater Royalties
- Quillan Harris joined as Vice President, Tailwater Royalties
- Will Sinclair joined as Director of FP&A, Tailwater E&P
- Full team now stands at 42 members, fully immersed across the energy and growth infrastructure sectors
- Created two annual scholarships through the Women’s Energy Network Foundation to encourage minority and female participation in energy and energy investment
- Awarded Deal of the Year by D CEO Magazine for NorTex Midstream acquisition
- We remain acutely focused on energy and growth infrastructure sectors and the vast, growing opportunity set
There has never been a better time to invest in the energy and growth infrastructure sectors. We are excited for the future of our portfolio, our ability to advance environmental solutions throughout the industry and the returns we expect to deliver for our partners and investors.