Discovery Midstream is a provider of oil and natural gas gathering and natural gas processing services in the southern portion of Colorado’s Denver-Julesburg Basin.

Discovery Midstream’s assets include a 60 million cubic feet per day (MMcf/d) gas processing plant, with an extra 200 MMcf/d plant that is under construction.

The infrastructure and related facilities of the Discovery Midstream are located across more than 250,000 dedicated acres primarily in Weld and Adams counties.

The Discovery system comprises both natural gas and crude oil gathering pipelines, cryogenic gas processing, liquids handling and crude oil storage.

KKR Energy and Infrastructure team managing director James Cunningham said: “The Discovery team has built a strong gathering and processing infrastructure footprint to service growing production in the DJ Basin and Williams is well known as a safe and reliable operator of large-scale G&P systems in the Rockies.

“This fits well with our long-term focus on partnering with top-tier operators who prioritize operational excellence and stakeholder engagement when working on premier North American midstream infrastructure assets.”

Upon completion of the deal, KKR will own 60% stake in Discovery while the remaining stake will be held by Williams. Furthermore, Williams will operate Discovery and hold a majority of governance voting rights.

Subject to customary closing conditions, the deal is scheduled to be completed in the third quarter of this year.

Williams president and CEO Alan Armstrong said: “Adding the fast-growing Discovery midstream business, including sites with permitting underway for greater than 1 Bcf/d of gas processing to our portfolio, follows our strategy of connecting the best supplies to the best markets.

“The acquisition of Discovery is expected to unlock valuable synergies with our current operations and drive increased earnings.”

Separately, Williams’ majority owned subsidiary Williams Partners L.P. has agreed to sell its Four Corners Area assets in New Mexico and Colorado to Harvest Midstream for $1.125bn in cash.

The cash proceeds from sale will be used to fund Williams’ extensive portfolio of growth capital and investment expenditures.