Tailwater Capital LLC

At Tailwater, we are committed to providing innovative capital solutions across the energy value chain. As we navigate this evolving landscape, our focus remains on debottlenecking opportunities, supported by emerging micro and macroeconomic trends.   Looking ahead, we anticipate a significant rise in the role of private capital within the midstream natural gas sector, particularly in natural gas gathering and processing (G&P). Driven by the domestic LNG buildout, AI and data center growth, broader electrification, and reshoring of U.S. manufacturing, natural gas demand is set to climb. U.S. supply sources, among the lowest-cost producers globally, are well-positioned to meet this demand, but will require robust infrastructure investment to efficiently transport gas to end markets.   As noted by East Daley, public midstream companies are increasingly focused on larger, transmission projects, creating a gap in G&P capital spending closer to the wellhead. This presents a unique opportunity for private capital to drive substantial growth in the U.S. natural gas sector while generating attractive returns.   Over the past decade, Tailwater has invested more than $1.5 billion in natural gas infrastructure projects, drawing upon our Full Immersion expertise in the upstream and midstream sectors. We expect even greater investment activity in the next decade in this new era for natural gas and are excited to partner with leading companies and entrepreneurs to provide energy solutions for all. #TailwaterInsights

Joel Fry, Tailwater Partner, is excited to attend Markets Group's Annual Private Equity Chicago Forum this week! Joel will join other industry leaders on the Investing in the U.S. Private Equity panel to discuss the investing landscape and share his insights.

Don't miss out 📢 Register now for the 2024 KBH Energy Center Symposium and gain exclusive insights from industry leaders! Join Texas McCombs School of Business Dean Lillian Mills along with two esteemed executives, James Hackett and Robert Rowling, as they delve into the intricacies of building and running successful businesses both within and beyond the energy sector. Learn about the leadership attributes that contributed to their success. A special thank you to our luncheon sponsor, Tailwater Capital LLC. 📅 Date: Friday, September 13th 🕗 Time: 8:00 am – 5:00 pm 📍 Location: AT&T Hotel and Conference Center ✔️ Learn more and register: https://lnkd.in/gZyhuzyx #KBHSymposium24

Ash Creek Renewables, a renewable fuel feedstock solutions company and part of the Tailwater portfolio, is excited to welcome Leonard Federico as its new Managing Director of Trading. Federico brings more than three decades of experience in the agriculture and energy industries to Ash Creek. Learn more in today's press release: https://bit.ly/3S82k97

Check out our latest Tailwater Currents webinar featuring John Spradling, Tailwater Principal. In this insightful session, John discusses the impact AI Data Centers are having on electricity demand, and how Tailwater Capital can provide de-bottlenecking solutions to address the rising dislocation in the power generation sector. Watch now: https://bit.ly/4cUIJBh 

At Tailwater, we specialize in providing creative capital solutions across the energy value chain to foster “win-win” outcomes for our investment partners and customer counterparties. Since 2013, Tailwater and our integrated upstream platform, Tailwater E&P, have provided win-win capital solutions for upstream operators through non-operated capital. This approach involves taking direct minority working interests in oil and gas assets, enabling operators to maintain capital discipline as drilling density and capital intensity increases. Non-op capital enhances operators' capital efficiency while offering non-op partners the benefit of scale with reduced overhead costs. Additionally, this strategy allows for diversification across operators, basins, commodities, and structures. In 2023, more than $180 billion of upstream M&A was announced in the U.S. As operators integrate capital plans, undeveloped locations will move outward on development timelines at diminished present values, creating a prime opportunity for accretive non-op capital partners like Tailwater to help operators expand their capital plans without increasing their budgets. This alignment pulls value forward for the operators and benefits both parties: non-op partners gain access to Tier 1 opportunities, optimized operator alignment, diversification, and a lean overhead cost structure, while operators maintain capital discipline, reduce project exposure, and gain flexibility through creative financing solutions. Over the past decade, Tailwater has invested approximately $1 billion into a diversified portfolio of non-controlling upstream investments and, with Tailwater’s expansive midstream footprint, has created a best-in-class network of resources to evaluate opportunities. We remain optimistic about future partnerships and continue to deploy capital across our non-op, minerals, and operated upstream strategies. #TailwaterInsights

Douglas Prieto, Chief Executive Officer of Tailwater E&P, is thrilled to join the ADAM-Houston Energy Network this week for its monthly luncheon. During the event, Doug will provide an overview of both Tailwater and Tailwater E&P, discussing our core areas of focus, verticals, and precedent transactions. He'll also delve into key industry trends, including capital flight and fundraising, macro themes, and potential tailwinds supporting our investment thesis. Register here to attend: https://bit.ly/3KjXWPY 

Tailwater portfolio company, Blue Tide Environmental, a leader in used motor oil refining, completed the first phase of its re-refinery in Baytown, Texas earlier this year. Blue Tide’s CEO Mark Bouldin was recently featured in Energy, Oil & Gas Magazine, discussing the facility and its industry impact.   Read the full interview here: http://bit.ly/3KlAqlB 

Tailwater is proud to announce the release of our 2023 Responsible Investment Report, which highlights our ongoing commitment to responsible operatorship. Learn more about how we are supporting resilience, facilitating growth, and driving innovations in responsible investment throughout the portfolio here: https://bit.ly/3yPEmso

Tailwater Partner David Cecere will take the stage at The Energy Council’s New York Energy Capital Assembly this week as part of the future facing panel on Building Out Future Runways in an Era of Resource Scarcity and Declining Productivity.    Cecere and the other panelists will discuss what’s next for onshore O&G and what impact artificial intelligence (AI) will have on the energy industry.