TSSP, TPG‘s global credit and credit-related investment firm, has made an undisclosed investment in Trinity Midstream in partnership with Trinity CO2. Wells Fargo Securities provided financial advice to Trinity CO2 with Vinson & Elkins LLP offering legal advice. And, Bracewell LLP acted as legal adviser to TSSP. Trinity Midstream is a provider of CO2 midstream services to leading EOR operators. Trinity CO2 is a producer of oil in the Permian Basin.
SAN FRANCISCO and MIDLAND, Texas, April 18, 2017 /PRNewswire/ — TSSP, a global credit and credit-related investment firm affiliated with TPG Holdings, today announced that its infrastructure team has completed a structured investment in Trinity Midstream in partnership with Trinity CO2. Through a joint venture, TSSP is now the majority capital provider in Trinity Midstream. The terms of the transaction were not disclosed.
Trinity Midstream owns a pipeline network that delivers CO2 to enhanced oil recovery (EOR) customers in the Permian Basin. The company owns 185 miles of CO2 pipeline in West Texas and New Mexico. It also owns CO2 reserves and facilitates CO2 marketing transactions for customers. Trinity CO2 will become a transportation and supply customer of Trinity Midstream and will also provide administrative services.
James Brower, a Managing Director at TSSP stated, “Trinity Midstream provides critical services to an attractive, low cost area of oil production under long term contracts, creating a strong foundation to grow the business. We are excited about continuing to work with Trinity CO2 to drive value for all parties and we look forward to deploying additional infrastructure capital in the region in coming years.”
TSSP’s infrastructure team has a 15 year history of executing structured investments in midstream energy and other sectors built on long term cash flowing assets.
Wells Fargo Securities acted as sole financial adviser and Vinson & Elkins LLP acted as legal adviser to Trinity CO2 in this transaction. Bracewell LLP acted as legal adviser to TSSP.
About Trinity Midstream
Trinity Midstream is a leading provider of high quality, customer focused CO2 midstream services to leading EOR operators. Trinity handles nearly 200 million cubic feet of CO2 per day, primarily used for Enhanced Oil Recovery (EOR) on its pipeline network. The company also facilitates CO2 marketing transactions for customers.
About Trinity CO2
Headquartered in Midland, TX, Trinity CO2 is a leading producer of oil in the Permian Basin, employing enhanced oil recovery techniques. Trinity CO2 owns and operates two active CO2 floods in West Texas, including the Wellman Unit in Terry County and the George Allen Unit in Gaines County. Trinity CO2 is a current portfolio company of Morgan Stanley Private Equity.
TSSP is the global credit and credit-related investment platform partnered with TPG. Co-founded in 2009 by Chief Investment Officer Alan Waxman, TSSP has approximately $19 billion in assets under management. TSSP has a long-term oriented, highly flexible capital base that allows it to invest across industries, geographies, capital structures and asset classes, in distressed assets but also healthy and growth companies. TSSP’s investments are typically complex to source, analyze and execute. For more information, please visit www.tpg.com/platforms/tssp.