Producers Midstream

What Producers Midstream does

Producers Midstream II, LLC is a Dallas-based, privately held midstream energy infrastructure company founded in 2016 and controlled by private equity sponsor Tailwater Capital. The company provides fully integrated natural gas midstream services—gathering, treating, cryogenic processing, and transmission—to upstream oil and gas producers operating primarily in the Permian Basin, Delaware Basin, and Eastern Shelf regions of Texas and New Mexico. Its physical platform comprises nearly 1 Bcf/d of gas processing capacity, over 3,500 miles of pipeline, 40,000+ horsepower of compression equipment, and 868,000+ dedicated acres under long-term commitments from multiple producer parties. Notable technical assets include a 60 MMscfd cryogenic processing plant (expandable to 90+ MMscfd) in Lea County, NM, an acid gas injection well, and active liquids handling capability.

The company earns revenue through fees charged to upstream producers for processing and transportation services, structured as long-term acreage dedications and volume commitments that create contracted, capacity- and volume-based cash flows. Its go-to-market is enterprise field sales targeting large upstream operators through direct relationship-driven contracting, with no reseller or marketplace channel. The customer base is the upstream E&P segment exclusively, and the company does not publicly disclose individual producer names or pricing. Producers Midstream has expanded through a combination of organic buildout (Lea County development, Palo Duro Pipeline Project) and acquisitions, notably integrating Midcoast Energy's gas gathering and processing assets.

Capital structure is dominated by private equity backing from Tailwater Capital, which recapitalized the company with $1.1 billion in October 2025 ($600M senior credit facility plus $510M equity) on a reported $1.1 billion post-money valuation, following prior debt facilities of $200M (2022) and $400M (2024). The company is leanly staffed at 11–50 employees, consistent with an asset-heavy infrastructure operating model. Leadership includes founder and chairman Jim Bryant. The business is actively expanding with Phase Two Delaware Basin commitments, the Lea County system entering service in 2025, and the Palo Duro Pipeline Project in binding open season.

Name

Producers Midstream

Legal name

Producers Midstream II, LLC

Website

https://producersmidstreamlp.com

Company type

Private

Founded year

2016

Operating status

Operating

Headcount range

11–50 employees

Short description

Producers Midstream is a Dallas-based, PE-backed midstream energy infrastructure provider delivering integrated gas gathering, treating, cryogenic processing, and transmission services to upstream oil and gas producers in the Permian Basin, Delaware Basin, and Eastern Shelf under long-term acreage dedications.

Ownership category

akta.pro rank

Product category

Natural Gas Midstream Infrastructure Services

NAICS

Pipeline Transportation of Natural Gas (486210)

SIC

Natural Gas Transmission (4922), Oil & Gas Field Services, Nec (1389)

akta.pro primary industry

Gas Pipeline & Midstream Asset Management (EUAEAMAF)

akta.pro secondary industries

Oil & Gas Midstream & Pipeline O&M (Pipelines, Compressor Stations) (EUAEAGAF), Field Treating & Separation (Heater Treaters, Separators, LACT) (EUALACAI), Pipeline Operations, Integrity & Control (SCADA, Pigging, Leak Detection) (EUALADAK)

Keywords

• Gas gathering services
• Natural gas processing
• Midstream infrastructure
• Cryogenic processing
• Pipeline transmission

Headquarters

HQ city

Dallas

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Infrastructure, Operations, Personnel, Supply Chain, Technology or R&D

Revenue model

1. Midstream Infrastructure Services: Producers Midstream earns revenue through fees charged to upstream producers for gas gathering, treating, processing, and transmission services. The company secures acreage dedications and volume commitments from producers, creating long-term contracted revenue streams tied to production volumes. Revenue is capacity-based (MMscfd) and volume-committed.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels3 records

Core offering

Producers Midstream provides fully integrated midstream infrastructure services for upstream oil and gas producers, including infield gas gathering, acid gas treating, cryogenic processing for NGL extraction, liquids handling, and long-haul pipeline transmission. The company secures acreage dedications and volume commitments from producers operating in the Permian Basin, Delaware Basin, and Eastern Shelf, and delivers these services through owned infrastructure comprising over 3,500 miles of pipeline, nearly 1 Bcf/d of processing capacity, and 40,000+ horsepower of compression equipment.

Product overview

Producers Midstream delivers a fully integrated midstream infrastructure platform offering comprehensive gathering, treating, processing, and transmission solutions for natural gas producers. The company's core offerings include gas gathering services, cryogenic processing (with facilities in Lea County, NM expandable to 90 MMscfd), acid gas injection wells, and over 3,500 miles of transmission pipelines. The portfolio is organized around strategic basins including the Permian Basin, Delaware Basin, Eastern Shelf, and Palo Duro region, with approximately 1 Bcf/d of total processing capacity and 868,000+ dedicated acres supporting production growth.

Differentiator

Problem solved

Functional benefit

Products and services

• Gas Gathering Services Infield gas gathering services that collect natural gas from upstream production wells and transport it through pipeline systems to processing facilities, offered to upstream oil and gas operators in the Permian Basin, Delaware Basin, and Eastern Shelf.
• Gas Treating Services Treatment services that remove impurities such as acid gases (H2S, CO2) from natural gas streams so the gas meets downstream pipeline and processing quality specifications, serving upstream producers in core U.S. basins.
• Cryogenic Processing Services Cryogenic processing services that extract natural gas liquids (NGLs) from natural gas streams, supported by processing capacity expandable from 60 MMscfd to 90+ MMscfd in the Delaware Basin.
• Acid Gas Injection Services Acid gas injection well service that safely disposes of acid gases removed during the gas treating process, integrated with the Lea County treating and processing system.
• Pipeline Transmission Services Long-haul pipeline transmission service connecting processing facilities in the Permian Basin, Delaware Basin, and Eastern Shelf to downstream market outlets across more than 3,500 miles of owned pipeline.
• Liquids Handling Services Handling and management of natural gas liquids (NGLs) extracted during cryogenic processing, marketed as part of the integrated midstream chain to upstream producers.
• Palo Duro Pipeline Project Pipeline infrastructure project under development in the Palo Duro region, with a binding open season launched in 2025 to secure shipper commitments for the new pipeline capacity.
• Lea County Gas Gathering, Treating, and Processing Facilities Integrated gas gathering, treating, and processing facility serving Delaware Basin producers from Lea County, New Mexico, combining cryogenic processing, acid gas injection, and high-horsepower compression in a single system.

Quantifiable outcome

• Capacity expandable to 90 MMscfd initially with further scaling available for Lea County operations
• +1 more outcomes

Segments1 record

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

One partnership is on record.

• Midcoast EnergycoreStrategic or Co-development Partner · 1 January 2021Producers Midstream II acquired Midcoast Energy's gas gathering and processing assets, integrating them into its infrastructure system. This acquisition expanded the company's presence on the Permian Basin and Eastern Shelf. The acquisition was supported by the 2022 syndicated credit facility.

Scale indicators7 records

Recent moves6 records

Expansion highlights4 records

Broad incumbents

• Williams Companies: Large natural gas-focused midstream operator with significant gathering, processing, and transmission assets. Competes in natural gas midstream services that overlap with Producers Midstream's gathering and processing offerings.
• Energy Transfer LP: One of the largest U.S. midstream operators with extensive Permian/Delaware natural gas gathering, processing, and long-haul pipelines. Competes with Producers Midstream for acreage dedications and takeaway capacity.
• Enterprise Products Partners: Large diversified midstream operator with Permian natural gas processing and NGL fractionation/transmission assets. Overlaps with Producers Midstream on processing and liquids handling.
• Kinder Morgan: One of the largest North American pipeline operators, including natural gas transmission and processing. Competes in the broader Permian/Southwest midstream market where Producers Midstream operates.

Regional players

• Plains All American Pipeline: Major midstream operator with significant Permian crude oil and natural gas liquids infrastructure. Adjacent rather than direct in natural gas, but overlaps geographically and operationally in the Permian midstream value chain.

Direct peers

• Crestwood Equity Partners: Midstream operator with natural gas gathering, processing, NGL handling, and transportation assets, including Permian exposure. Closely mirrors Producers Midstream's integrated service mix and producer-customer base.
• ONEOK: Major U.S. natural gas and NGL midstream player with significant processing and fractionation assets. Comparable in operating a large-scale integrated natural gas processing and NGL value chain.
• Western Midstream Partners: Permian- and Delaware-focused natural gas and NGL midstream operator with gathering, processing, and long-haul transportation. Highly comparable to Producers Midstream in footprint, customer base (upstream E&Ps), and contracted acreage model.
• Targa Resources Corp. Major Permian/Delaware natural gas and NGL gatherer and processor, including a leading U.S. cryogenic processing footprint. Directly comparable business model to Producers Midstream's gathering, treating, and cryogenic processing platform.
• Kinetik Holdings: Permian/Delaware-focused natural gas and NGL midstream company (formed via merger of BCP and the former DCP Midstream Permian assets). Closely comparable asset base and customer profile to Producers Midstream.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/15187585

Revenue estimate

Valuation estimate

Number of profiles

Profiles2 records

Funding overview

Funding rounds5 records

Investors6 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Producers Midstream