Goodnight Expands Delaware Basin Footprint, Achieves Record Performance and Strengthens Balance Sheet
New Estacado Pipeline to expand Goodnight's Northern Delaware Basin transportation capacity by 550,000 barrels per day
DALLAS, Sept. 1, 2026 /PRNewswire/ -- Goodnight Midstream ("Goodnight" or the "Company"), a leading produced water infrastructure solutions provider and portfolio company of Tailwater Capital, a Dallas based energy and infrastructure private equity firm, today announced a series of strategic and operational updates that further strengthen the Company's scale, customer offering, and strategic positioning.
"Goodnight's assets are well-positioned to meet the growing industry demand for produced water handling, as evidenced by today's announcement," said Grant Adams, Chief Executive Officer of Goodnight Midstream. "We are excited about the Company's next phase of growth and enhancing our position as a leading provider of produced water infrastructure solutions, particularly in the Northern Delaware Basin."
Estacado Pipeline Expands Northern Delaware Basin Transportation Capacity
The Company has commenced construction on the Estacado Pipeline ("Estacado" or the "Project"), a new high-pressure produced water system in Eddy and Lea Counties, New Mexico, designed to provide upstream oil and gas producers in the Northern Delaware Basin with a large-scale and reliable water management solution for the next phase of growth in the Permian.
Estacado is supported by long-term volume commitments from several of the largest producers in the Delaware Basin and will be integrated with Goodnight's existing Llano Pipeline ("Llano"), which has provided large-scale, out-of-basin disposal since 2019. The Estacado Pipeline will traverse approximately 90 miles and add 550,000 barrels per day of capacity to the Llano-Estacado super system. The Project is expected to enter service in the first quarter of 2027.
"As the leading provider of high-pressure transportation to out-of-basin disposal, we leveraged our track record, customer relationships, and expertise to develop a strategic expansion of our Llano system," said Austin Anderson, Chief Strategy Officer of Goodnight Midstream. "The integrated Llano-Estacado system provides a unique combination of large-scale transportation paired with diversified disposal capacity, enhancing flow assurance and optionality for both our customers and Goodnight."
Goodnight was the first produced water infrastructure company to provide in-state, out-of-basin disposal capacity to Delaware Basin producers through its Llano system. With Estacado, Goodnight is advancing that leadership by pioneering a downhole solution that also supplies produced water to enhanced oil recovery (EOR) operators on the Central Basin Platform. This beneficial reuse enhances Goodnight's reputation as the peer-leading provider of sustainable disposal services.
Together, Llano and Estacado form an integrated super system designed to provide Northern Delaware Basin producers with more than 900,000 barrels per day of takeaway capacity. Goodnight is well-positioned to provide upstream oil and gas producers with a differentiated solution for produced water that leverages the scale and connectivity of the combined platform to support continued production growth across the basin.
Record Performance & Eagle Ford Expansion
Goodnight recently set new performance milestones, driven by volumetric growth across all basins of operations, including the Delaware, Midland, Eagle Ford and Bakken, resulting in a quarterly growth rate of approximately 25%. Additionally, Goodnight expanded its Eagle Ford operations through a synergistic bolt-on acquisition that adds scale and customer diversity.
Credit Facility Extension & Expansion Enhances Financial Flexibility
In conjunction with these announcements, Goodnight has also expanded and extended its credit facility, enhancing the Company's financial flexibility to support continued strategic growth. The expansion reflects strong commitment from Goodnight's existing lender group and provides the Company with additional flexibility as it executes its broader growth strategy.
About Goodnight Midstream
Goodnight Midstream builds and operates midstream oilfield water infrastructure for oil and gas producers. The Company owns and operates an extensive network of full-cycle water pipelines and saltwater disposal wells focused on gathering, transporting, reusing and disposing of produced saltwater for its customers. Goodnight's midstream approach minimizes environmental impact and improves health and safety while lowering lease operating expenses and improving reliability for its customers. Goodnight operates in the most active basins in the United States with significant positions in the Permian Basin, Bakken and Eagle Ford shales. For more information, please visit goodnightmidstream.com.
About Tailwater Capital
Dallas-based Tailwater Capital is an energy and infrastructure private equity firm with a well-established track record of working constructively with proven management teams to deliver value-added solutions. Tailwater Capital has raised more than $6 billion in committed equity capital since inception, and the team has executed more than 300 transactions representing over $29 billion in value. For more information, please visit tailwatercapital.com.
Goodnight Midstream Media Relations
Jill McMillan
Managing Director, Communications & Public Affairs
Ph: 214-489-7047
SOURCE Goodnight Midstream
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