Tailwater-Backed Producers Midstream II to Acquire Certain Gathering and Processing Assets from Midcoast Energy

DALLAS, Dec. 20, 2021 /PRNewswire/ -- Producers Midstream II, LLC ("Producers Midstream" or the "Company"), a Dallas-based portfolio company of Tailwater Capital focused on providing a full suite of turnkey midstream solutions to producers across the U.S., today announced that it has signed definitive agreements to acquire 100 percent of Midcoast Energy's gas gathering and processing assets in the Anadarko Basin ("Anadarko G&P") and a 35 percent operating interest in Texas Express Gathering ("TEG"), a Y-grade gathering pipeline, each subject to customary closing conditions.

Spanning the Texas Panhandle and Western Oklahoma, Anadarko G&P includes more than 3,200 miles of pipeline, 870 million cubic feet per day of available processing capacity and about 292,000 horsepower of compression across the Anadarko Basin. TEG consists of a 138-mile Y-grade gathering pipeline that connects Anadarko Basin and Barnett Shale gas processing facilities to the Texas Express Pipeline and ultimately to the Mont Belvieu NGL hub.

Upon completion of the transaction, Producers Midstream will integrate the acquired assets with its existing Scurry and Fisher County gas gathering and processing system through Anadarko G&P's Palo Duro Pipeline, a 310-mile pipeline that runs from the Texas Panhandle through the Scurry and Fisher County region. The addition of the Midcoast Energy assets will enhance the Company's service offering and geographic reach.

"These high-quality and complementary assets expand our ability to provide best-in-class midstream infrastructure solutions, positioning our business to create substantial long-term value for our customers," said Matt Flory, Chief Executive Officer of Producers Midstream. "We are excited to welcome the Midcoast team to the Producers organization and look forward to building upon Midcoast's strong foundation."

"Since the formation of Producers Midstream in 2016, our teams have shared a collective vision, and this acquisition will position Matt and the exceptional leadership team at Producers to leverage a strong asset base to provide industry-leading services to a diversified group of customers," said Edward Herring, Co-Founder and Manager Partner at Tailwater Capital. "By creating a link between a growing production base in Scurry and Fisher County and infrastructure in the Anadarko Basin, new and existing customers in both regions stand to benefit."

"The Producers Midstream team has a proven track-record of creating innovative and unique 'win-win' solutions for their customers and stakeholders," said Stephen Lipscomb, Partner at Tailwater Capital. "We couldn't be more excited to support this consolidation opportunity that will significantly enhance Producers' service offering."

Kirkland & Ellis LLP is serving as legal advisor to Tailwater Capital and Producers Midstream. Gibson, Dunn & Crutcher LLP is serving as legal advisor and Moelis & Company LLC is serving as exclusive financial advisor to Midcoast Energy. 

About Producers Midstream

With more than 70 years of midstream experience, the Producers Midstream management team is committed to maximizing the value of our producer's operations by creating a system of increased reliability and predictability, supported by our culture of service, ingenuity, and responsiveness.

About Tailwater Capital LLC

Dallas-based Tailwater Capital is a growth-oriented energy and growth infrastructure private equity firm with a well-established track record of working constructively with proven management teams to deliver value-added solutions. Tailwater has raised more than $3.7 billion in committed capital since inception and the team has executed more than 100 transactions representing over $22 billion in value. For more information, please visit www.tailwatercapital.com.

Media Contacts

Tailwater Capital 
Woomi Yun / Erik Carlson 
Joele Frank, Wilkinson Brimmer Katcher 
212-355-4449

SOURCE Tailwater Capital LLC