[Context: On October 17, Copperbeck Energy Partners announced an equity commitment from Tailwater Capital and the acquistion of midstream and downstream assets from Martin Midstream Partners. Further details and related links are below.]
Copperbeck Energy Partners Announces Financial Commitment From Tailwater Capital And Closing Of Saconix LLC, A Joint Venture Formed In Partnership With Martin Resource Management Corporation
DALLAS, Oct. 17, 2017 /PRNewswire/ — Copperbeck Energy Partners LLC (“Copperbeck”) announced an equity commitment from Tailwater Capital (“Tailwater”), an energy-focused private equity firm based in Dallas, Texas. Copperbeck is focused on providing strategic midstream and downstream-adjacent infrastructure and services for refineries, petrochemical and industrial concerns.
Copperbeck is led by Chief Executive Officer Wes Martin, who brings extensive transactional and broad energy experience to the platform. Mr. Martin has served in various senior management capacities at Martin Midstream Partners L.P. (NYSE: MMLP) and Martin Resource Management Corporation (“MRMC”) over the past 12 years with his most recent role as Vice President of Corporate Development of both companies.
Mr. Martin commented, “We’re excited to be partnering with the Tailwater team. Tailwater not only shares our vision of investing in midstream and downstream-adjacent assets and services, but also emphasizes flexibility and creativity in pursuit of that goal. While the U.S. energy renaissance has been ongoing for several years, we believe the demand pull created from the resurgence in supply is still in the early stages. With over $150 billion in projects announced in the U.S. alone, the environment is fundamentally strong and supports significant investment in businesses critical to the long-term success of those projects.”
Edward Herring, Managing Partner at Tailwater Capital, said: “We believe Copperbeck’s extensive industry experience and deep relationships developed within both traditional midstream and downstream-adjacent infrastructure provide a unique opportunity to find value and develop assets in an underserved segment of the broader energy complex. We’re particularly excited about the fast start the team has gotten off to in terms of identifying and executing on the formation of the new Saconix joint venture.”
Copperbeck recently closed the purchase of a 62.5% interest in Saconix LLC (“Saconix”) from MRMC. Saconix combines MRMC’s contribution of Martin Product Sales LLC’s sulfuric acid business (the “Business”) with the addition of a well-capitalized partner in Copperbeck to help drive growth through new equity investment. The Business continues to be headquartered in Roswell, Georgia with all employees retained in their existing roles to provide a seamless transition for current customers and suppliers. MRMC will continue to own a 37.5% interest in Saconix.
Regarding Saconix, Mr. Martin commented, “Having worked with the MRMC team for over 15 years, it’s a privilege to be partnering with them once again through the Saconix joint venture. MRMC’s broad expertise, commitment to service and quality people are hard to duplicate. We look forward to continued growth in our relationship with MRMC at the Saconix level and beyond.”
Copperbeck was represented by Gardere Wynne Sewell LLP’s Dallas office. Partner Robert Sarfatis served as lead advisor to Copperbeck. Thompson & Knight, LLP advised Tailwater Capital, with J. Holt Foster, III as lead counsel from the firm’s Dallas office.
About Copperbeck Energy Partners LLC
Dallas-based Copperbeck Energy Partners is a private energy company focused on providing strategic midstream and downstream-adjacent infrastructure and services for refineries, petrochemical and industrial concerns. Formed in 2017 with a substantial equity commitment from Tailwater Capital LLC, Copperbeck utilizes a creative approach to strategic asset and corporate development.
About Tailwater Capital LLC
Dallas-based Tailwater Capital is a highly specialized, growth-oriented energy private equity firm with a well-established track record, having executed more than 65 energy transactions in the upstream and midstream sectors representing over $16.6 billion in transaction value. Tailwater currently manages over $2.1 billion in committed capital, over $700 million of which is available for new investments. Tailwater is focused on acquiring and growing midstream assets as well as participating in non-operated upstream opportunities in select basins.