Tailwater Capital LLC

Check out our latest Tailwater Currents webinar featuring John Spradling, Tailwater Principal. In this insightful session, John discusses the impact AI Data Centers are having on electricity demand, and how Tailwater Capital can provide de-bottlenecking solutions to address the rising dislocation in the power generation sector. Watch now: https://bit.ly/4cUIJBh 

At Tailwater, we specialize in providing creative capital solutions across the energy value chain to foster “win-win” outcomes for our investment partners and customer counterparties. Since 2013, Tailwater and our integrated upstream platform, Tailwater E&P, have provided win-win capital solutions for upstream operators through non-operated capital. This approach involves taking direct minority working interests in oil and gas assets, enabling operators to maintain capital discipline as drilling density and capital intensity increases. Non-op capital enhances operators' capital efficiency while offering non-op partners the benefit of scale with reduced overhead costs. Additionally, this strategy allows for diversification across operators, basins, commodities, and structures. In 2023, more than $180 billion of upstream M&A was announced in the U.S. As operators integrate capital plans, undeveloped locations will move outward on development timelines at diminished present values, creating a prime opportunity for accretive non-op capital partners like Tailwater to help operators expand their capital plans without increasing their budgets. This alignment pulls value forward for the operators and benefits both parties: non-op partners gain access to Tier 1 opportunities, optimized operator alignment, diversification, and a lean overhead cost structure, while operators maintain capital discipline, reduce project exposure, and gain flexibility through creative financing solutions. Over the past decade, Tailwater has invested approximately $1 billion into a diversified portfolio of non-controlling upstream investments and, with Tailwater’s expansive midstream footprint, has created a best-in-class network of resources to evaluate opportunities. We remain optimistic about future partnerships and continue to deploy capital across our non-op, minerals, and operated upstream strategies. #TailwaterInsights

Douglas Prieto, Chief Executive Officer of Tailwater E&P, is thrilled to join the ADAM-Houston Energy Network this week for its monthly luncheon. During the event, Doug will provide an overview of both Tailwater and Tailwater E&P, discussing our core areas of focus, verticals, and precedent transactions. He'll also delve into key industry trends, including capital flight and fundraising, macro themes, and potential tailwinds supporting our investment thesis. Register here to attend: https://bit.ly/3KjXWPY 

Tailwater portfolio company, Blue Tide Environmental, a leader in used motor oil refining, completed the first phase of its re-refinery in Baytown, Texas earlier this year. Blue Tide’s CEO Mark Bouldin was recently featured in Energy, Oil & Gas Magazine, discussing the facility and its industry impact.   Read the full interview here: http://bit.ly/3KlAqlB 

Tailwater is proud to announce the release of our 2023 Responsible Investment Report, which highlights our ongoing commitment to responsible operatorship. Learn more about how we are supporting resilience, facilitating growth, and driving innovations in responsible investment throughout the portfolio here: https://bit.ly/3yPEmso

Tailwater Partner David Cecere will take the stage at The Energy Council’s New York Energy Capital Assembly this week as part of the future facing panel on Building Out Future Runways in an Era of Resource Scarcity and Declining Productivity.    Cecere and the other panelists will discuss what’s next for onshore O&G and what impact artificial intelligence (AI) will have on the energy industry.

The Tailwater team is closely monitoring the rapid advancements in artificial intelligence (AI) and their profound implications, particularly on domestic electricity demand. With data center electricity consumption projected to triple in the coming years, the sheer magnitude of new power supply required is staggering—equivalent to adding the power demand of the entire state of California. We expect such exponential growth to create bottlenecks within established power grids and necessitate new energy supply and infrastructure to meet this demand, posing both challenges and opportunities for stakeholders across the energy and power industries.   One unique challenge of powering data centers is their requirement for >99% uptime, making it difficult to meet the power demand requirements with intermittent renewables. Consequently, we anticipate data center developers will rely on natural gas-powered generation capacity to meet these escalating demands. This could add 5-10+ Bcf/d of natural gas demand by 2030, the equivalent of the combined natural gas demand of California and Florida in 2022.   At Tailwater, our expertise lies in providing debottlenecking solutions for midstream infrastructure to help move natural gas to market and power these data centers. We're committed to fostering innovation and collaborating with forward-thinking partners to navigate these evolving dynamics. Together, we aim to create reliable, abundant, and affordable power for all. #TailwaterInsights

We are thrilled to announce that Mia Obid and Lillian Griggs are the recipients of our 2024-25 scholarships through the Women's Energy Network Foundation.   These scholarships have been awarded in recognition of Mia and Lillian’s dedication to pioneering advancements and leadership in energy and STEM. We are confident that they will both make significant contributions to their fields and proud to support their journeys. Congratulations!   Read more in today’s press release: https://bit.ly/3wXkCmb

Earlier this month, Tailwater had the privilege of serving as a One of a Kind Sponsor for the ELIZABETH TOON CHARITIES 18th Annual Concert & Clay Shoot in Dallas. We were proud to take part in this annual event, which makes a meaningful difference in the lives of those impacted by abuse, grief, poverty, disabilities, and terminal illnesses.

Blue Tide Environmental, one of our portfolio companies, is making waves in Baytown, Texas! The company is on the brink of completing Phase 2 of its ambitious re-refining facility expansion project. With plans for continued growth and exploration of global opportunities, Blue Tide remains steadfast in its commitment to sustainability and innovation. Find out more in Blue Tide's recent feature in the Baytown Sun here: https://bit.ly/3UebYXO