#United States #Dallas #Acquisition #Tailwater Capital #Delaware Basin

Tailwater Capital Expands Upstream Portfolio in Northern Delaware Basin

Tailwater Capital LLC, a well-known energy and infrastructure private equity firm, has announced a strategic acquisition that significantly expands its upstream platform. The firm has successfully acquired a diversified non-operated leasehold position across the northern Delaware Basin, specifically in Lea and Eddy counties of New Mexico. This substantial asset covers around 35,000 gross acres and offers access to more than 900 gross wells.

Key Insights into the Acquisition

The newly acquired acreage is over 97% held by production, indicating a strong potential for immediate development. It highlights Tailwater's ability to secure high-quality, off-market opportunities in core basins. The involvement of leading operators, including Coterra, Mewbourne, Devon, and Matador, underscores the asset's premium status and strategic importance.

Doug Prieto, Partner at Tailwater Capital, commented on this transaction, stating, "This deal highlights our capability to source high-quality assets and capitalize on Tailwater's technical underwriting expertise. Moreover, it adds significant premium inventory and visibility for near-term development in one of the most productive areas in the Lower 48 states."

Development Potential

The investment also includes access to over 250 near-term DUC (Drilled but Uncompleted) wells, Approved For Expenditure (AFE) locations, and permitted location sites in the area. Tailwater’s strategy seems clear: leverage its expertise and network to not only add depth to its portfolio but also to position itself advantageously in a highly competitive market.

Additionally, a significant portion of this acreage is aligned with the Producers Midstream II gathering and transportation system, which is part of Tailwater's broader midstream portfolio, emphasizing the firm's comprehensive approach to energy investment.

Tailwater Capital's Track Record

Founded and based in Dallas, Tailwater Capital has established a significant footprint in energy and infrastructure. The firm has raised over $6 billion in committed equity capital and executed more than 235 transactions that represent over $28 billion in value since its inception. Tailwater EP, Tailwater's upstream platform, focuses on managing minerals, royalties, and both operated and non-operated working interests across North America’s premier resource plays.

Conclusion

As Tailwater Capital continues to pursue strategic expansions, this recent acquisition in the Northern Delaware Basin marks a pivotal step forward. By focusing on high-quality assets and leveraging its extensive experience, Tailwater is well-positioned to capitalize on future opportunities in the energy sector. For more details about their strategy and operations, visit Tailwater Capital's website.