‘Scale And Quality’ In Produced Water Drove TPG Acquisition Of Goodnight

When TPG Capital bought Goodnight Midstream from Tailwater Capital for almost $1 billion on March 11, it culminated several years of research into the burgeoning produced-water segment.

“We started investigating water about five years ago,” Chris Ortega, a partner in TPG Capital, told Hart Energy. “At the time we could not find opportunities that had critical mass. It was mostly trucks running to saltwater disposal wells [SWD]. But we at TPG are thematic investors, certainly within energy.

“We saw the macro trends. The Permian is producing about 3 million barrels a day [bbl/d] of oil, and about 12 million barrels a day of water. We believe those ratios are only going to continue.” TPG has more than $103 billion of assets under management across a wide range of asset classes, including private equity, growth venture, real estate, credit and public equity.