The Estacado Pipeline will traverse approximately 90 mi and add 550,000 bpd of capacity to the Llano-Estacado super system.
Goodnight Midstream, a leading produced water infrastructure solutions provider and portfolio company of Tailwater Capital, a Dallas based energy and infrastructure private equity firm, has announced a series of strategic and operational updates that further strengthen the company’s scale, customer offering and strategic positioning.
“Goodnight’s assets are well-positioned to meet the growing industry demand for produced water handling, as evidenced by today’s announcement,” said Grant Adams, Chief Executive Officer of Goodnight Midstream. “We are excited about the Company’s next phase of growth and enhancing our position as a leading provider of produced water infrastructure solutions, particularly in the Northern Delaware Basin.”
Estacado Pipeline expands Northern Delaware Basin transportation capacity. The company has commenced construction on the Estacado Pipeline, a new high-pressure produced water system in Eddy and Lea Counties, New Mexico, designed to provide upstream oil and gas producers in the Northern Delaware Basin with a large-scale and reliable water management solution for the next phase of growth in the Permian.
Estacado is supported by long-term volume commitments from several of the largest producers in the Delaware Basin and will be integrated with Goodnight’s existing Llano Pipeline, which has provided large-scale, out-of-basin disposal since 2019. The Estacado Pipeline will traverse approximately 90 miles and add 550,000 bpd of capacity to the Llano-Estacado super system. The Project is expected to enter service in the first quarter of 2027.
“As the leading provider of high-pressure transportation to out-of-basin disposal, we leveraged our track record, customer relationships, and expertise to develop a strategic expansion of our Llano system,” said Austin Anderson, Chief Strategy Officer of Goodnight Midstream. “The integrated Llano-Estacado system provides a unique combination of large-scale transportation paired with diversified disposal capacity, enhancing flow assurance and optionality for both our customers and Goodnight.”
Goodnight was the first produced water infrastructure company to provide in-state, out-of-basin disposal capacity to Delaware Basin producers through its Llano system. With Estacado, Goodnight is advancing that leadership by pioneering a downhole solution that also supplies produced water to enhanced oil recovery (EOR) operators on the Central Basin Platform. This beneficial reuse enhances Goodnight’s reputation as the peer-leading provider of sustainable disposal services.
Together, Llano and Estacado form an integrated super system designed to provide Northern Delaware Basin producers with more than 900,000 bpd of takeaway capacity. Goodnight is well-positioned to provide upstream oil and gas producers with a differentiated solution for produced water that leverages the scale and connectivity of the combined platform to support continued production growth across the basin.
Goodnight recently set new performance milestones, driven by volumetric growth across all basins of operations, including the Delaware, Midland, Eagle Ford and Bakken, resulting in a quarterly growth rate of approximately 25%. Additionally, Goodnight expanded its Eagle Ford operations through a synergistic bolt-on acquisition that adds scale and customer diversity.
In conjunction with these announcements, Goodnight has also expanded and extended its credit facility, enhancing the company’s financial flexibility to support continued strategic growth. The expansion reflects strong commitment from Goodnight’s existing lender group and provides the company with additional flexibility as it executes its broader growth strategy.
