Tailwater E&P Announces Significant Non-Operated Acquisition in the Core of the Permian Basin

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Oct 01, 2024, 14:26 ET

DALLAS, Oct. 1, 2024 /PRNewswire/ -- Tailwater Capital LLC ("Tailwater Capital"), an energy and environmental infrastructure private equity firm, announced today the successful acquisition of a significant, off-market non-operated working interest asset package in the Permian Basin from Accelerate Resources Operating LLC (Accelerate). The acquisition marks another key milestone for Tailwater E&P LLC ("Tailwater E&P"), the upstream platform of Tailwater Capital, and further solidifies its position as a leading investor in high-quality, energy-producing assets in the lower 48.

The acquired assets include more than 5,000 net leasehold acres in the core of the Midland and Delaware Basins. The assets are predominantly held by production and are currently producing more than 5,000 net barrels of oil equivalent per day. They also possess meaningful future inventory under premier operators, including ExxonMobil, ConocoPhillips, Diamondback Energy, EOG Resources, Mewbourne Oil Company, Apache, Occidental Petroleum, Devon, and Coterra Energy.

"This acquisition highlights Tailwater E&P's ability to identify and secure exceptional assets in off-market, negotiated transactions in which we expect to generate substantial value for our limited partners, resulting in a win-win transaction for all involved," said Doug Prieto, Chief Executive Officer of Tailwater E&P. "These assets represent a diversified portfolio of the best that the Permian has to offer, and we are extremely grateful for the support of our investors who saw the value of this acquisition and moved swiftly to consummate this transaction."

Situated in the core of the prolific Permian Basin, the assets have a consistent history of strong development levels throughout commodity cycles. They are operated by top-tier public and private companies focused on constantly improving execution at scale, operational efficiencies, and well productivity.

"It has been an honor to lead the creation, development and growth of Accelerate Resources over the last eight years. Its performance is the result of our dedicated team of industry experts and the support of our private equity investor, Pine Brook Partners," said Brennan Potts, CEO of Accelerate. "We are confident that Tailwater E&P is the right group to take these assets forward."

As operators continue to identify new drilling targets and optimize production, Tailwater E&P anticipates additional upside potential in this already prolific asset base. Tailwater E&P strategically hedged a significant portion of the asset's production profile alongside the execution of the Purchase and Sale Agreement, helping to mitigate market risk and solidify the return profile.

"We couldn't be more excited about this compelling acquisition and what it means for Tailwater E&P and our limited partners," said Edward Herring and Jason Downie Managing Partners and Co-Founders of Tailwater Capital. "These assets generate a stable production profile that supports strong current equity yields for our investors while offering diversified exposure to a deep inventory of future development. Aligning ourselves with these high-quality operators in Tier 1 inventory in the core of the Permian provides a significant opportunity to create limited partner value."

Kirkland & Ellis LLP, Winston & Strawn LLP and Foley & Lardner LLP represented Tailwater E&P in connection with the transaction.

Vinson & Elkins, LLP represented Accelerate in connection with the transaction.

About Tailwater E&P
Tailwater E&P, the upstream platform of Tailwater Capital, specializes in acquiring and managing minerals, royalties, and both operated and non-operated working interests in North America's premier resource plays. Established in 2013, Tailwater E&P leverages the expertise and resources of Tailwater Capital to provide value-add solutions across core basins. Tailwater Capital has approximately $4.7 billion in committed capital since inception and the team has executed more than 100 transactions representing over $23 billion in value. For more information, please visit www.tailwatercapital.com

About Accelerate
Accelerate acquires, owns, and manages real property investments under critical energy and infrastructure sites that generate long-term, sustainable cash flow. With offices near Dallas, New York, and Los Angeles, Accelerate's team of investment professionals have completed more than 2,000 acquisitions since 2016. Visit www.we-are-accelerate.com to learn how Accelerate helps businesses, brokers, and landowners unlock value – and land opportunities.

Contact
Jill McMillan
Managing Director, Communications & Public Affairs
Phone: 214-489-7047
Email: [email protected]

John Schaufele
Managing Director, Investor Relations & Fundraising
Phone: 214-489-7043
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