Tailwater Capital and its upstream investment platform, Tailwater E&P, have acquired a diversified, non-operated leasehold position in the northern Delaware Basin spanning Lea and Eddy counties in New Mexico.
The acquired position covers approximately 35,000 gross acres and provides exposure to more than 900 gross wells. Tailwater said the acreage is more than 97% held by production and includes near-term development activity under operators such as Coterra, Mewbourne, Devon, and Matador.
Tailwater described the deal as an off-market transaction that expands its upstream footprint in one of the most active oil and gas regions in the Lower 48. The firm said the asset adds “premium inventory” and offers visibility into upcoming development plans across the acreage.
The investment includes access to more than 250 near-term DUC, AFE, and permitted locations, as well as an inventory of more than 10 years of undeveloped drilling locations that Tailwater characterized as highly economic.
Tailwater also noted that meaningful portions of the acquired acreage are dedicated to the Producers Midstream II gathering and transportation system, a Tailwater Capital midstream portfolio company, providing a potential operational and commercial advantage through existing infrastructure alignment.
Tailwater Capital, based in Dallas, focuses on energy and infrastructure private equity. The firm said it has raised more than $6 billion in committed equity capital since inception and has executed more than 235 transactions representing more than $28 billion in value. Tailwater E&P is its upstream platform, focused on minerals, royalties, and both operated and non-operated working interests across North American resource plays. Financial terms of the leasehold acquisition were not disclosed.
KEY QUOTE:
“This transaction underscores our ability to source high-quality, off-market opportunities in core basins and to leverage Tailwater’s technical underwriting expertise and platform advantages. The position adds premium inventory and near-term development visibility in one of the most active and productive regions in the Lower 48, and it reflects the exceptional work and collaboration of our team.”
Doug Prieto, Partner, Tailwater Capital
