Sale of Black Mountain Disposal for $50M

DALLAS, TEXAS — (June 15, 2015)

Goodnight Midstream, the professional fluids management company, today announces multiple acquisitions and the addition of key personnel to support the Company’s on-going expansion in the Permian Basin. Following these transactions, Goodnight now offers produced water gathering and disposal from 10 facilities in seven counties across the basin.

Goodnight acquired the produced water gathering and disposal business of Black Mountain Disposal in Glasscock and Reagan Counties, as well as four water disposal facilities formerly operated by MTN Energy strategically located in Andrews, Ector, Gaines and Loving Counties.

“The closing of these acquisitions represents a significant milestone in Goodnight’s Permian Basin expansion,” said Patrick Walker, Chief Executive Officer. “These facilities allow us to support our customers’ growing water handling needs as activity continues to increase. The acquired facilities are connected to extensive networks of both producer owned and existing Goodnight owned gathering systems. We look forward to expanding our network of water gathering pipelines and saltwater disposal facilities in the years ahead to meet our customers’ goals of driving down lease operating costs while increasing safety and reliability.”

As a part of its commitment to expand operations in the Permian, Goodnight is pleased to announce the hiring of Mark King as Director of Operations for the Permian Basin. Prior to joining Goodnight Midstream, Mr. King served as Director of Operations for Energy Transfer Partners.  King has over 25 years of experience in the Midland region and has a proven track record delivering reliable support to Permian producers. Goodnight’s Permian team also includes a growing staff of operators and pumpers to ensure quality of service in support of existing and new facilities under construction.

“Mark’s leadership qualities and experience will help us to continue to deliver the reliable service that our producers have come to expect from Goodnight,” said Rich Rehm, Chief Operating Officer. “As producers accelerate development and expand to larger, more water intensive completions on multi-well pads, they need service providers with redundant, high volume water gathering and disposal capabilities to ensure that their wells keep flowing. Goodnight strives to be the preferred partner in delivering reliability through high quality field personnel, experienced engineering, and a strong balance sheet.”

The acquisitions were financed by Goodnight’s credit facility, operating cash flows and equity investments from Tailwater Capital, LLC, an energy-focused private equity firm based in Dallas.

Source: PR Newswire