TPG Capital, the private equity platform of global alternative asset firm TPG, is to acquire a majority stake in Goodnight Midstream, a midstream produced water infrastructure company, for approximately $930m.
Sellers were Tailwater Capital and private investors. Existing shareholders, including management, will retain a significant minority interest in the company.
Under the terms of the transaction, TPG Capital and existing shareholders have agreed to commit additional equity capital to support the continued growth of the business. With additional growth equity and proceeds from committed debt financing, the company will have access to more than $300m of capital to fund continued expansion.
The transaction is expected to close in the second quarter and is subject to customary closing conditions.
Led by Patrick Walker, CEO, Goodnight Midstream is a midstream provider of oilfield water management infrastructure. Through an extensive network of more than 420 miles of dedicated produced water gathering and transportation pipelines and more than 50 saltwater disposal wells, the company gathers, transports, and disposes more than 350,000 barrels of produced water per day.
Goodnight Midstream operates in the Permian, Bakken, and Eagle Ford, the three largest oil-producing basins in North America, through long-term contracts with some of the most active producers in these regions.