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Tailwater Capital invests in Goodnight Midstream

Tailwater Capital LLC said Aug 9 that it invested $80 million in Goodnight Midstream (formerly 1804 Operating). Dallas-based Goodnight Midstream provides water handling and salt water disposal solutions to oil and gas clients in high-growth areas of North America.


DALLAS, Aug. 9, 2016 /PRNewswire/ — Tailwater Capital LLC (“Tailwater”), an energy-focused private equity firm based in Dallas, today announced an initial equity commitment of $80 million to Goodnight Midstream (formerly 1804 Operating).
Goodnight Midstream provides trusted water handling and salt water disposal solutions to oil and gas clients in high-growth areas of North America. The committed capital will be used to further develop water gathering and disposal facilities in North Dakota, and to fund Goodnight’s expansion into Texas, and other regions of interest.
Headquartered in Dallas, Goodnight Midstream built its first water infrastructure in 2011 and has grown to become the leading independent water gathering and disposal service provider for producers in the Bakken. Goodnight now owns more than 150 miles of saltwater gathering pipelines connected to a network of 16 saltwater disposal facilities in North Dakota.
The Company’s co-founders Patrick Walker, Chief Executive Officer and Robert Rubey, Chief Commercial Officer, are joined by midstream industry veteran, Rich Rehm who serves as Chief Operating Officer, as well as Vice President of Engineering, Tommy Thompson.
Joel Fry, Principal at Tailwater Capital, said: “Goodnight Midstream has a proven track record in providing midstream saltwater handling solutions. Producers, particularly in the current environment, are focused on reducing capex and lease operating costs without impacting production flow assurance. Goodnight Midstream has provided water handling solutions for many leading operators in North Dakota and we are thrilled to be partnering with this management team and investing behind its strategy to expand into other basins in North America.”
Goodnight Midstream Chief Executive Officer Patrick Walker, said: “Goodnight Midstream provides its E&P customers a comprehensive water gathering and disposal solution, allowing them to devote their capital and attention to develop reserves. Water is a critical component to hydrocarbon production and our customers require trusted water disposal operators. Goodnight Midstream’s track-record in North Dakota provides assurance that we build best-in-class gathering systems and disposal facilities. This initial capital commitment from Tailwater gives us the financial flexibility to continue to grow with our producers and pursue larger development projects and acquisitions. Tailwater brings tremendous expertise in energy investing and we’re glad to have them join our team.”
Concurrent with today’s investment, 1804 Operating officially changed its name to Goodnight Midstream to reflect its midstream expertise and approach to fluids management as the first true midstream water company.
About Goodnight Midstream
Goodnight Midstream provides trusted professional fluids management services to oil and gas producers. The Company owns and operates an extensive network of water gathering pipelines and salt water disposal wells focused on gathering and disposing of produced saltwater. Goodnight’s midstream approach minimizes environmental impact and improves health and safety while lowering lease operating expense and improving reliability for our customers. Goodnight is supported by a team of highly experienced engineers and operating professionals. In addition to Goodnight’s leading position in North Dakota, Goodnight Midstream has an emerging presence in Wyoming’s Powder River Basin and the Permian Basin of Texas and New Mexico. For more information, please visit
About Tailwater Capital LLC
Dallas-based Tailwater Capital is a growth-oriented energy private equity firm with a well-established track record, having executed more than 35 energy transactions representing over $11 billion in transaction value. Tailwater currently manages over $1.6 billion in equity capital, over $700 million of which is available for new investments. Tailwater is focused on acquiring and growing midstream assets as well as participating in non-operated upstream opportunities in select basins. For more information, please visit