Dallas-based Tailwater Capital is pivoting toward natural gas infrastructure investments as demand surges, partner Stephen Lipscomb told PE Hub. "We will be much more weighted toward gas infrastructure than oil going forward," Lipscomb said, citing power generation growth and expanding LNG capacity as key drivers. The firm is deploying capital across gas storage, gathering, processing, long-haul transmission, and last-mile delivery.

Founded in 2013 by Jason Downie and Edward Herring, Tailwater recently invested in Pickton Gas Storage, a Texas-based platform positioned to benefit from structural load growth in Texas and Louisiana. Lipscomb highlighted the proliferation of AI infrastructure and data centers as an increasingly important factor driving power demand, alongside LNG export growth. "Natural gas remains one of the most readily available and scalable sources of reliable power to meet that demand," he noted.

Despite the gas pivot, Tailwater recently demonstrated the value of its oil infrastructure strategy. Earlier this month, Tailwater and The Energy & Minerals Group sold Silver Creek Midstream's Powder River Basin crude assets to a Plains All American Pipeline subsidiary for approximately $585 million. Acquired in 2018 during capital flight from oil and gas, the 600-mile system with 350,000 bpd capacity was developed through M&A and greenfield projects, proving profitable as well economics improved.