Tailwater Capital LLC has increased its equity commitment to Silver Creek Midstream from $150 million to $300 million. The additional equity will be used to continue the build-out of its crude gathering system in the Powder River Basin. Irving, Texas-based Silver Creek is a midstream company.
DALLAS, May 22, 2018 /PRNewswire/ — Silver Creek Midstream, LLC (“Silver Creek”) announced today that Tailwater Capital, LLC (“Tailwater”) has increased its equity commitment from $150 million to $300 million. Tailwater’s increased equity commitment will be provided by both Tailwater Energy Fund III (“EF-III”) and EF-III limited partner co-investors.
Silver Creek will utilize the additional equity available to continue the buildout of its 100%-owned crude gathering system in the Powder River Basin. The wholly-owned gathering system will consist of up to 250 miles of crude oil infrastructure spanning Converse, Campbell, Johnson and Natrona Counties. With over 50-miles of existing gathering infrastructure already in place and 150,000 dedicated acres, Silver Creek expects the remaining gathering system and trunklines to be operational by February 2019 and allow for up to 175,000 barrels per day of capacity.
J. Patrick Barley, CEO of Silver Creek, said, “We are excited to continue servicing the growing Powder River Basin through our upsized equity commitment from Tailwater. We believe our crude system provides producers with advantaged takeaway out of the Basin. By utilizing the Silver Creek gathering system in combination with the Iron Horse Pipeline, Silver Creek will provide producers, marketers and refiners with maximum optionality as they look to get their crude oil to Guernsey, Wyoming and into multiple downstream markets.”
Jason Downie, Managing Partner at Tailwater Capital, said, “We continue to see significant opportunities in Wyoming and are excited to increase our commitment to the Silver Creek team. Our successful co-investment capital raise from Energy Fund III limited partners demonstrates our ability to opportunistically scale up our equity commitments to pursue attractive growth prospects.”
About Silver Creek:
Headquartered in Irving, Texas, Silver Creek Midstream is a private midstream company focused on providing crude oil gathering, transportation and storage services in Wyoming. Silver Creek Midstream is backed by a $300 million equity commitment from Tailwater Capital, LLC and Silver Creek management. To learn more, please visit our website at: www.scmidstream.com.
About Tailwater Capital:
Dallas-based Tailwater Capital is a sophisticated, growth-oriented energy private equity firm with a well-established track record, having executed more than 100 energy transactions in the upstream and midstream sectors representing over $18.6 billion in transaction value. Tailwater currently manages over $2.5 billion in committed capital and is actively pursuing midstream investment opportunities out of Tailwater Energy Fund II and Tailwater Energy Fund III, both midstream-focused private equity funds with a combined $1.5 billion of committed capital. 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 www.tailwatercapital.com.