Tailwater infuses shale water firm Goodnight Midstream with $500M

By Luke Geiver | October 08, 2019

Tailwater Capital LLC is continuing what it started with Goodnight Midstream in 2016. The Dallas-based energy-focused private equity team that first invested in the shale water services company with a huge footprint in the Bakken and Permian, just announced another investment worth more than $500 million.

Goodnight Midstream will use the capital to continue an eight year streak of recording double-digit volume growth for water handling services throughout the Bakken and Permian.

Since receiving its initial investment from Tailwater in 2016, Goodnight has expanded its Bakken operations and entered the Delaware Basin, Midland Basin and Eagle Ford shale. Today, Goodnight’s facilities and trans-basin pipeline systems in the Delaware Basin include more than 700,000 barrels per day of throughput capacity providing producers in the region with a safe and reliable solution for flow assurance.

“This investment will provide a significant amount of equity growth capital from a trusted partner who understands that long-term growth in this sector requires a strong balance sheet. With this capital flexibility, we will continue to meet the increasing demand from our customers for scalable produced water infrastructure solutions and remain focused on providing safe, reliable and environmentally sustainable produced water logistics services to our customers,” said Patrick Walker, CEO and co-founder of Goodnight Midstream.

“We are thrilled to have the opportunity to support the next phase of Goodnight’s growth,” said Edward Herring, Co-Founder and Managing Partner of Tailwater Capital. “With favorable market dynamics driving further investment in the produced water midstream sector, and the Company’s numerous customer contract wins, our team at Tailwater has strong conviction in Goodnight’s industry leadership and continued success.” 

Dallas-based Tailwater Capital is a growth-oriented energy private equity firm with a well-established track record of working constructively with proven management teams to deliver value-added solutions. Tailwater currently manages more than $3.4 billion in committed capital and the team has executed more than 100 energy transactions in the upstream and midstream sectors representing over $19 billion in transaction value.