Producers Midstream II Secures $400 Million Expanded Credit Facility to Drive Strategic Growth
DALLAS, Dec. 4, 2024 /PRNewswire/ -- Producers Midstream II, LLC ("Producers Midstream" or the "Company"), a portfolio company of Tailwater Capital focused on providing a full suite of midstream solutions to operators across the U.S., announced it has secured an expanded credit facility led by Texas Capital Bank, Bank of Oklahoma, Cadence Bank, US Bank, and Wells Fargo Bank.
The $400 million credit facility will provide ample capacity to fund development projects across both their existing asset base in the Mid-Continent / Eastern Permian Basin and their growth projects in the Delaware Basin. The upsized facility will support the completion of the Company's state-of-the-art gathering, treating, and processing system in Lea County, New Mexico while also providing room for further expansion to support operator activity in the immediate surrounding area. The Company has already kicked off engineering work to evaluate moving additional inventoried cryogenic plants into Lea County.
"With this facility, Producers Midstream is well-positioned to advance critical infrastructure projects and expand our operational presence in key regions, targeting increased drilling activity in the Bone Springs, Wolfcamp, and Penn Shale formations in the Delaware Basin, the Eastern Permian Basin, and the growing Cherokee / Red Fork formation in the Anadarko Basin," said Matt Flory, Chief Executive Officer of Producers Midstream. "This milestone underscores our commitment to delivering innovative and reliable midstream solutions to meet the evolving needs of upstream operators."
The expanded credit facility strengthens Producers Midstream's ability to execute its growth strategy, drive future expansion, and maintain its standing as a trusted midstream partner.
"We are incredibly grateful for the bank group that has supported Producers Midstream II," said Stephen Lipscomb, Partner at Tailwater Capital. "This financing reflects their confidence in the management team and equips the Company to continue providing solutions to our customers."
About Producers Midstream
Founded in 2016, Producers Midstream is committed to maximizing the value of our producer's operations by creating bespoke midstream systems, capable of increased reliability and predictability, supported by our culture of service, ingenuity, and responsiveness. For more information, please visit www.producersmidstream.com.
About Tailwater Capital
Dallas-based Tailwater Capital is an energy and environmental infrastructure private equity firm with a well-established track record of working constructively with proven management teams to deliver value-added solutions. Tailwater has raised more than $4.9 billion in committed capital since inception and the team has executed more than 180 transactions representing over $26 billion in value. For more information, please visit www.tailwatercapital.com.
Forward-Looking Statements
Includes non-Tailwater controlled capital pursuant to the Tailwater led management buyout processes for which Tailwater provides management related services.
Producers Midstream Contacts
Hudson White
Chief Financial Officer
Phone: 214-238-5750
Email: hwhite@producersmidstream.com
Clark Hudnall
SVP Corporate Development
Phone: 214-238-5754
Email: chudnall@producersmidstream.com
Tailwater Contacts
Jill McMillan
Managing Director, Communications & Public Affairs
Phone: 214-489-7047
Email: jmcmillan@tailwatercapital.com
John Schaufele
Managing Director, Investor Relations & Fundraising
Phone: 214-489-7043
Email: jschaufele@tailwatercapital.com
View original content to download multimedia: https://www.prnewswire.com/news-releases/producers-midstream-ii-secures-400-million-expanded-credit-facility-to-drive-strategic-growth-302322562.html
SOURCE Producers Midstream
