Tailwater Capital Acquires Significant Non-Operated Working Interest Asset Package in Permian Basin

Strategic Insights -

Tailwater Capital LLC, an energy and environmental infrastructure private equity firm, announced the successful acquisition of a significant non-operated working interest asset package in the Permian Basin from Accelerate Resources Operating LLC. The acquisition marks another key milestone for Tailwater E&P LLC, the upstream platform of Tailwater Capital, solidifying its position as a leading investor in high-quality, energy-producing assets in the lower 48. The acquired assets include over 5,000 net leasehold acres in the core of the Midland and Delaware Basins, with a production profile of over 5,000 net barrels of oil equivalent per day. The transaction highlights Tailwater E&P's ability to identify and secure exceptional assets through off-market, negotiated transactions, generating substantial value for its limited partners.

Key Takeaways:

  • Tailwater Capital acquired a significant non-operated working interest asset package from Accelerate Resources Operating LLC in the Permian Basin.
  • The acquired assets consist of over 5,000 net leasehold acres in the core of the Midland and Delaware Basins.
  • The assets are producing over 5,000 net barrels of oil equivalent per day and possess meaningful future inventory under premier operators.
  • Tailwater E&P strategically hedged a significant portion of the asset's production profile, helping to mitigate market risk and solidify the return profile.
  • The acquisition highlights Tailwater E&P's ability to identify and secure exceptional assets through off-market, negotiated transactions.
  • The transaction is expected to generate substantial value for Tailwater E&P's limited partners.
  • Tailwater E&P is confident in the potential for additional upside in the asset base as operators continue to identify new drilling targets and optimize production.
  • The acquisition is a key milestone for Tailwater E&P and solidifies its position as a leading investor in high-quality, energy-producing assets in the lower 48.

Statistics:

  • Over 5,000 net leasehold acres acquired in the core of the Midland and Delaware Basins.
  • Production profile of over 5,000 net barrels of oil equivalent per day.
  • Acquisition highlights Tailwater E&P's ability to identify and secure exceptional assets through off-market, negotiated transactions.
  • Tailwater E&P has approximately $4.7 billion in committed capital since inception.
  • The team has executed more than 100 transactions representing over $23 billion in value.

Sources:

  • Source 1: Tailwater Capital LLC ("Tailwater Capital"), an energy and environmental infrastructure private equity firm.
  • Source 2: Accelerate Resources Operating LLC (Accelerate), which sold a significant non-operated working interest asset package to Tailwater Capital.
  • Source 3: Kirkland & Ellis LLP, Winston & Strawn LLP, and Foley & Lardner LLP, which represented Tailwater E&P in connection with the transaction.