Investment Focus & Thesis

Tailwater Capital focuses on the energy sector, seeking businesses with strong assets, experienced management, and operational excellence: Investment Range Equity investments typically ranging from $50 million to $500 million in energy companies. Sector Focus Upstream oil and gas, midstream, and energy services. Upstream oil and gas — Exploration and production companies in proven basins Midstream — Pipelines, processing, and infrastructure Energy services - Drilling, completion, and production services Downstream - Refining and marketing operations Renewables - Select renewable energy investments

Notable Portfolio Companies

Tailwater Capital has built an extensive portfolio across the energy sector: Company Sector Notes Validus Energy Upstream Oil & Gas Permian Basin producer Camden Oil Upstream Oil & Gas Eagle Ford and Permian operator Apex Energy Upstream Oil & Gas Oil and gas exploration company Maverick Energy Upstream Oil & Gas Permian Basin operator Tall City Energy Upstream Oil & Gas Permian Basin producer Phoenix Production Upstream Oil & Gas Oil and gas development company Tailwater has been particularly focused on the Permian Basin and other prolific US basins, investing in companies with low-breakeven economics and experienced management teams.

What Tailwater Looks For

Based on their investment patterns, Tailwater Capital evaluates opportunities based on: Asset quality — High-return, low-decline assets in proven basins Management expertise - Experienced teams with strong operational track records Cost structure - Competitive breakeven economics Technical differentiation - Operational expertise and technical capabilities Growth potential - M&A and development opportunities }> Pro Tip Tailwater brings deep energy sector expertise and expects detailed technical analysis. They look for companies with experienced management teams and high-quality assets in proven basins.

How to Connect With Tailwater

Approaching Tailwater Capital requires demonstrating energy sector excellence: 1 Demonstrate Asset Quality Prepare detailed reserve reports, production decline curves, and economic analysis of assets. 2 Showcase Financial Metrics Present operating costs per barrel, finding and development costs, EBITDA, and leverage analysis. 3 Present Operational Excellence Show safety records, environmental compliance history, and operational efficiency metrics. 4 Leverage Industry Networks Many deals come through energy industry advisors, investment bankers, or industry conferences.

The Value of Financial Preparedness

PE firms like Tailwater expect detailed financial information for energy companies: Production Metrics • Daily production volumes • Reserve estimates and life index • Decline curve analysis • Operating costs per barrel Financial Data • EBITDA and cash flow • Net debt and leverage • Capital expenditure plans • Return on capital employed }> How Eagle Rock Helps We help energy companies prepare for PE investment by building detailed financial models, reserve analysis, and investor-quality presentations. Our fractional CFO services ensure your company is ready for energy due diligence.

Frequently Asked Questions