Align Midstream Announces Acquisition of SONAT 10

DALLAS, April 30, 2015

Align Midstream Partners (“Align”), a portfolio company of energy-focused private equity firm Tailwater Capital LLC (“Tailwater”), announced today the closing on an agreement to acquire a pipeline in an actively drilled, liquids-rich area of East Texas and West Louisiana (“SONAT 10). The transaction had previously received regulatory approval from the Federal Energy Regulatory Commission (“FERC”). Align & Tailwater believe that this asset will serve as the foundation for several attractive growth projects in the area. The pipeline was acquired from Southern Natural Gas, a subsidiary of Kinder Morgan.

The SONAT 10 is a 34 mile 10” pipeline which is currently significantly underutilized due to its placement as the header on an interstate residue pipeline system. Once repurposed as a rich gas gathering Trunkline, SONAT 10 will connect portions of Shelby and Panola Counties, TX and DeSoto Parish, LA that currently have limited midstream options for rich gas being produced in the region. Align has been in active discussion with several leading producers and expects to gather sufficient volumes to base-load and grow the system. Align is currently in negotiations with two separate producers to form a midstream partnership in the region with plans to execute an agreement with at least one of the producers by Q4 2015.

About Align Midstream Partners
Dallas-based Align is a midstream company focused on serving producers’ needs in emerging and established basins with the United States. Align is concentrated on building greenfield midstream assets including gas, crude oil and water gathering pipelines, treating and gas processing plants in emerging basins. Align is also focused on acquiring midstream assets in established basins and on creating opportunities through repurposing facilities as appropriate. Management has a proven track record of providing their customers meaningful midstream solutions. For more information, please visit www.alignmidstream.com.

About Tailwater Capital LLC
Dallas-based Tailwater Capital is a sophisticated, growth-oriented energy private equity firm with a well-established track record, having executed more than 35 energy transactions representing over $11 billion in transaction value. Tailwater currently manages over $1.4 billion in equity 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. For more information, please visit www.tailwatercapital.com.