Tailwater Capital LLC, an energy and environmental infrastructure private equity firm, has entered into definitive agreements to sell Tall Oak Midstream Operating, LLC and its subsidiaries (Tall Oak Midstream III) to Summit Midstream Corporation for a total consideration of approximately $450 million. The deal includes $155 million in cash, 7.5 million shares of Summit’s Class B common stock and common units of the Partnership, representing 40 percent ownership in the pro forma company, and up to $25 million in contingent consideration through March 2026.

The transaction is expected to close in the fourth quarter of 2024, pending customary closing conditions, shareholder and regulatory approvals. Upon closing, Tailwater Capital will appoint four directors to Summit’s Board.

Tall Oak Midstream III operates in the Arkoma Basin, with assets including two natural gas processing plants with a combined capacity of 220 million cubic feet per day, 411 miles of natural gas gathering lines, and 65,000 horsepower of compression.

“This partnership with Summit creates a unique growth opportunity,” said Jason Downie, co-founder and managing partner at Tailwater. Ryan Lewellyn, CEO of Tall Oak Midstream, praised the partnership and highlighted the reliability and safety of Tall Oak’s operations, expressing confidence in the continued success under Summit’s management.

For more information visit www.tailwatercapital.com

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