About

TexStar III, was formed in 2014 and currently operates a terminal and 70-mile crude oil gathering system between Karnes County and a San Antonio refinery.

TexStar is actively pursuing projects in the Permian Basin, South Texas, and East Texas.

Our History

TexStar was originally founded in San Antonio, TX in 2004 by Phil Mezey and Scott Martin. Between 2004 and 2006, the midstream business grew largely through acquisitions and was sold to Regency Energy Partners in mid-2006 for $350 million.

TexStar II was reconstituted in 2008, largely driven by the midstream needs of its sister-company, BlackBrush Oil & Gas, which by 2014 operated over 350,000 gross acres in south Texas. TexStar and BlackBrush were recapitalized by EIG Global Energy Partners in 2011 and, along with Tailwater Capital (f.k.a. HM Capital) funded the build-out of the largest, integrated midstream company exclusively focused in south Texas.

Funding

The principals of Tailwater Capital LLC have been TexStar’s equity sponsors since 2004. Tailwater is a growth-oriented energy private equity firm with a well-established track record, having executed more than 35 energy transactions representing $11 billion of transaction value. Tailwater currently manages $1.4 billion in equity capital, over $700 million of which is available for new investments and has a strong history of creating partnerships with experienced management teams to invest growth equity capital in the energy sector.

TexStar Logistics’ management team has significant fundraising experience. Specifically, while at predecessor company BlackBrush TexStar LP between 2011 and 2014, this management team raised approximately $1.7 billion of capital consisting of private equity, mezzanine capital, term loans and senior credit facilities. The largest tranche of debt consisted of a series of loans, led by UBS and Credit Suisse, in which the team raised $875 million from institutions, secured and maintained credit ratings from Moody’s and S&P, hosted quarterly conference calls and ultimately repaid its lenders in just over a year.

Private Equity Sponsor

Meet our private equity sponsor