TPG Capital, a private equity investment firm in San Francisco, has backed out of a $930 million deal to acquire Goodnight Midstream from Tailwater Capital and private investors.
Goodnight Midstream, a midstream-produced oilfield water infrastructure company, gathers, transports, and disposes of more than 350,000 barrels of water per day through an extensive network of more than 420 miles of pipelines and 50 saltwater disposal wells.
The company 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. It has more than 800,000 dedicated gross acres and more than 1.4 million barrels per day of permitted water disposal capacity
The deal was originally announced in March. Bloomberg reported that Goodnight Midstream was unable to satisfy certain closing conditions, leading the parties to terminate the deal on July 5.
Under the terms of the transaction, existing shareholders, including management, stood to retain a significant minority interest in the company. In addition, TPG Capital and existing shareholders agreed to commit additional equity capital to support the continued growth of the business, giving Goodnight Midstream access to more than $300 million of capital to fund continued expansion.
