TPG Capital Takes Control Of Goodnight Midstream With $930 Million Acquisition

TPG Capital agreed to buy into the water management business with the acquisition of a majority stake in Goodnight Midstream from Tailwater Capital.

TPG Capital Takes Control Of Goodnight Midstream With $930 Million Acquisition

Goodnight Midstream has 1.4 million barrels per day of permitted water disposal capacity in the three largest oil-producing basins in North America—the Permian, Bakken and Eagle Ford. (Source: Hart Energy/Shutterstock.com)

Ownership of Goodnight Midstream, a Dallas-based produced water infrastructure company operating in major U.S. shale plays, is changing hands as the result of a $930 million sale on March 11 to TPG Capital.

TPG Capital, a private-equity firm headquartered in Fort Worth, Texas and San Francisco, agreed to buy a majority stake in Goodnight Midstream from its previous owner, Tailwater Capital. The firm also said it will provide Goodnight with more than $300 million of capital from additional growth equity and proceeds through a committed debt financing to fund continued expansion.

The investment in Goodnight Midstream comes as challenges related to water management have become as costly and often as problematic as producing oil and gas itself. For example, the water logistics segment, which includes hauling, disposal and transfer, drove over 65% of spending for upstream oil and gas operations in the U.S in 2018, according to a report by IHS Markit in late last year.

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Emily Patsy

Emily Patsy is the senior managing editor for Hart Energy’s Digital News Group. She's responsible for the daily news flow and also manages the A&D Watch and Energy Pulse weekly newsletters.