TPG acquiring shale water firm Goodnight Midstream for $930M

By Luke Geiver | March 11, 2019

TPG Capital will pay $930 million to acquire a majority stake in Goodnight Midstream, a produced water infrastructure company active in the Bakken, Eagle Ford and Permian. “The team at Goodnight Midstream has created a differentiated approach to providing produced water services through a dynamic midstream model,” said Christopher Ortega, partner at TPG Capital. “As the midstream water sector continues to develop and mature, we believe the company is well positioned to emerge as a leading provider of scale. We’re excited to support the company through its next chapter of growth.”

According to Goodnight Midstream, the company has a network of more than 420 miles of dedicated produced water gathering and transportation pipelines and more than 50 saltwater disposal wells. Per day, Goodnight gathers, transports or disposes more than 350,000 barrels of produced water per day.

Following the deal with TPG, Tailwater Capital and other private investors will retain a significant minority stake in the company.

“Our piped systems save our customers money while reducing the environmental impact of oil and gas production. I’m proud of what our team has accomplished in eight years and look forward to leveraging TPG’s strong network and expertise in the midstream space as we continue to build the mission critical infrastructure required by our world-leading E&P customers,” said Patrick Walker, CEO of Goodnight.

TPG’s energy team has a long history of partnering with leading companies and strong management teams across the energy value chain. Focused on building strategic platforms with significant growth potential, the team’s investments have included Discovery Midstream, EnLink Midstream, Jonah Energy and Copano Energy.

Goodnight Midstream has grown from a small firm operating in the Williston Basin into a produced water powerhouse active in three major shale plays.