Tailwater E&P Expands Its Portfolio with Strategic Acquisition
Tailwater E&P's Strategic Acquisition in the Permian Basin
Tailwater Capital LLC has announced a significant acquisition that underscores its commitment to expanding its operations in energy-rich regions. This acquisition involves a substantial off-market non-operated working interest asset package in the Permian Basin, acquired from Accelerate Resources Operating LLC. This move is a vital milestone for Tailwater E&P, the upstream platform powered by Tailwater Capital, who aim to strengthen their foothold in high-quality energy-producing assets.
Details of the Acquisition
The acquisition comprises over 5,000 net leasehold acres situated within the Midland and Delaware Basins. These assets are primarily production-held and boast a current output of more than 5,000 net barrels of oil equivalent per day. Notably, they are anchored by renowned operators including ExxonMobil, ConocoPhillips, Diamondback Energy, and others, paving the way for significant future production and growth.
Comments from Tailwater Leadership
Doug Prieto, CEO of Tailwater E&P, expressed enthusiasm about the acquisition, stating, "This acquisition highlights our ability to secure exceptional non-operated assets. We aim to deliver substantial value to our limited partners with this strategic move." His sentiments reflect the company's strategic foresight in navigating complex negotiations that yield mutual benefits.
High-Class Operational Management
Located in the heart of the prolific Permian Basin, the newly acquired assets are anticipated to undergo robust development levels, largely attributed to their managed association with top-tier operators. These companies are proficient in maintaining operational efficiency and maximizing well productivity across varying commodity cycles.
Sustaining Future Growth
Brennan Potts, CEO of Accelerate, shared his confidence in Tailwater E&P's capability to foster the growth of these assets, attributing past successes to a dedicated team and strong private equity backing. As industry dynamics evolve, Tailwater E&P is poised to capitalize on fresh drilling targets and potential production optimization, enhancing the overall value of their portfolio.
The Benefits to Investors
Edward Herring and Jason Downie, Managing Partners at Tailwater Capital, reiterated their excitement about the acquisition's impact on investor returns. They noted that the assets will offer a stable production profile while providing diversified exposure to a substantial development inventory. The alignment with highly regarded operators in quality inventory strengthens their foundation for creating value for their limited partners.
Legal Representation in the Acquisition
Tailwater E&P's acquisition was facilitated with the expertise of legal representatives from Kirkland & Ellis LLP, Winston & Strawn LLP, and Foley & Lardner LLP, ensuring a smooth transaction process.
About Tailwater E&P
Founded in 2013, Tailwater E&P is the upstream division of Tailwater Capital, dedicated to managing minerals, royalties, and working interests in North America’s prominent resource areas. With significant committed capital, the firm has executed over 100 transactions amounting to over $23 billion.
About Accelerate
Accelerate focuses on acquiring and managing real property investments critical to energy and infrastructure sectors, ensuring sustainable revenue generation. Their seasoned team has propelled the completion of more than 2,000 acquisitions since 2016, signifying a robust operational foundation.
Frequently Asked Questions
What is the main focus of Tailwater E&P?
Tailwater E&P specializes in acquiring and managing energy-producing assets, particularly in the oil and gas sectors.
How significant is the acquisition made by Tailwater E&P?
The acquisition includes over 5,000 acres in the Permian Basin, promising a production output exceeding 5,000 net barrels of oil equivalent daily.
Who are the key operators associated with the acquired assets?
The assets are operated by major companies like ExxonMobil, ConocoPhillips, and Diamondback Energy, enhancing their operational reliability.
What is the potential for future production growth?
With strategic drilling and production optimization, Tailwater E&P anticipates additional upside in the asset's production profile.
What legal firms represented Tailwater E&P in this transaction?
Kirkland & Ellis LLP, Winston & Strawn LLP, and Foley & Lardner LLP provided legal support for Tailwater E&P during this acquisition.
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