Williams Field Service Group LLC, a subsidiary of The Williams Companies Inc., has acquired NorTex Midstream from Tailwater Capital LLC, a Dallas-based private equity firm, for $423 million.

NorTex is a developer and operator of multi-cycle natural gas storage capacity in the U.S. Since partnering with Tailwater in February 2021, the company has executed agreements to connect and supply natural gas to some of the area’s largest powerplants, aiming to improve the reliability of the North Texas power grid.

“When we partnered with NorTex in February 2021, we did so with the conviction that the energy transition would require thermal generation to deliver power at a moment’s notice during periods of renewable intermittency,” says Stephen Lipscomb, partner at Tailwater Capital. “That conviction was tested immediately with Winter Storm Uri, and NorTex delivered on its reputation of reliability, flexibility and high-quality solutions for customers. We believe the Company is better positioned than ever to provide critical, dependable natural gas to power the North Texas market as the Company enters its next phase of strategic growth.”

Kirkland & Ellis LLP served as legal counsel to Tailwater and NorTex in connection with the transaction. Davis Polk & Wardwell LLP served as legal counsel for Williams. Wells Fargo Securities, LLC acted as exclusive financial advisor to Tailwater and NorTex. BofA Securities served as financial advisor to Williams.