Tailwater Capital Invests in Pickton Gas Storage, Announces FID on Northeast Texas Natural Gas Storage Hub

DALLAS, July 16, 2026 /PRNewswire/ -- Tailwater Capital LLC ("Tailwater"), an energy and infrastructure private equity firm, announced its investment in Pickton Gas Storage LLC ("Pickton" or the "Company"), a natural gas storage and infrastructure platform led by the former management team of NorTex Midstream Partners ("NorTex"). Concurrently, Pickton announced that it i) has reached Final Investment Decision ("FID") on its natural gas storage facility and new transportation and trading hub in East Texas and ii) closed on a new project finance debt facility to support the project.

The investment marks a continuation of Tailwater's longstanding partnership with the Pickton management team, which previously operated NorTex, one of the largest natural gas storage hubs serving the Dallas-Fort Worth Metroplex. Under Tailwater's ownership, NorTex expanded its natural gas deliverability capabilities and improved the reliability of the North Texas power grid by executing agreements to directly connect and supply natural gas to some of the area's largest power plants. NorTex was acquired by an affiliate of The Williams Companies, Inc. in September 2022.

Sulphur River Gathering LLC ("SRG"), owned the underlying reservoir and related infrastructure assets that were contributed to Pickton. SRG will continue to work with Tailwater and the Pickton team as the project advances through construction and commercialization.

"We are excited to partner with Pickton management and SRG management to build the next generation of natural gas storage infrastructure in Texas," said Stephen Lipscomb, Partner at Tailwater. "We had the opportunity to work alongside this management team at NorTex and witnessed firsthand their ability to develop and operate critical storage assets. Combined with SRG's deep roots and extensive operating experience in East Texas, we believe this partnership creates a unique opportunity for our investors."

Pickton's development will transform the depleted reservoir into a modern, high-deliverability storage field with 35 billion cubic feet of working gas capacity. The project will include the development of the Paris Hub, a newly constructed natural gas trading and transportation hub located in Paris, Texas. The Paris Hub will include bi-directional interconnects with five large diameter intrastate and interstate pipelines, creating a highly liquid gas market positioned between major supply basins and growing demand centers across Texas and the broader Gulf Coast region.

"Achieving FID is a significant milestone for Pickton and reflects the confidence of our customers, lenders, and investors in both this asset and our team," said John Holcomb, Chief Executive Officer of Pickton. "We are grateful to Tailwater for their continued confidence in our team and providing the support needed to develop critical natural gas infrastructure. With a world-class reservoir, strategic location, and experienced team, we believe Pickton will play an important role in serving Texas' growing energy needs."

"Texas continues to experience significant growth in natural gas demand, driven by power generation, industrial activity, and broader economic expansion," added Scott Peters, Managing Director at Tailwater. "Storage infrastructure plays a critical role in balancing supply and demand, supporting grid reliability, and providing market flexibility. We believe Pickton represents one of the most attractive storage development opportunities in the country and is well positioned to capture the regional market tailwinds."

Pickton's initial phase is fully contracted and expected to commence commercial operations in the Spring of 2028.

Tailwater's investment is being made through Tailwater Fund V, Tailwater's latest flagship infrastructure fund, alongside a direct co-investment vehicle. The project financing comprises a newly closed construction term loan provided by a consortium of financial institutions led by Investec Inc. serving as Lead Arranger, Sole Bookrunner and Administrative Agent, Deutsche Bank AG and Starwood Infrastructure Finance, LLC serving as Coordinated Lead Arrangers, BankUnited, N.A. serving as Depository Agent and BankUnited, N.A. and BOK Financial serving as Lenders.

About Pickton Gas Storage

Pickton Gas Storage is a Texas-based natural gas storage company developing and operating the Pickton underground gas storage asset in East Texas, located primarily in Hopkins, Delta, and Lamar counties. Pickton's focus is on redeveloping a depleted hydrocarbon reservoir into a high-deliverability, multi-cycle natural gas storage facility to serve Texas and regional gas markets. For more information, please visit www.picktongasstorage.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.

About Sulphur River Gathering

Sulphur River has owned and operated natural gas gathering, treating and producing assets in East Texas for over 50 years. The company's assets include 750 miles of natural gas gathering pipelines, one gas treating plant with a capacity of 60 million cubic feet per day and 160 oil and gas wells. Since 2019, SRG has owned the Pickton reservoir, storage permits, existing vertical storage wells, pipelines, and rights-of-way.

Contact

Jill McMillan

Managing Director, Communications & Public Affairs

Phone: 214-489-7047

Email: [email protected]

Forward-Looking Statements
Includes non-Tailwater controlled capital pursuant to the Tailwater led management buyout processes for which Tailwater provides management related services.

SOURCE Tailwater Capital