TPG Growth has agreed to acquire US-based oil and natural gas gathering and natural gas processing services provider, Discovery Midstream, for an undisclosed sum.
Based in Dallas, Discovery offers oil and natural gas gathering and natural gas processing services in the southern portion of Colorado’s Denver-Julesburg Basin.
The company is specialized in developing grassroots projects, optimizing assets and providing related services to the major producing basins in the US.
The current management team of Discovery will continue to operate the firm even after the completion of deal.
With strategic assets in Weld and Adams counties, Discovery is presently building around 120 miles of pipeline and 60 Mmcf/d natural gas processing plant that is expected to be operational in the third quarter of this year.
The company intends to expand the capacity of the facility to around 260 Mmcf/d in 2018.
According to TPG, Discovery’s system is supported by long-term contracts with leading producers in the DJ Basin.
The deal is expected to be completed in the third quarter of this year.
TPG partner Christopher Ortega said: “Since inception, Discovery has done an impressive job of building deep community relationships in Colorado and maintaining a focus on safety, both of which we look forward to continuing under our ownership.”
Discovery partner Steven Meisel said: “From grassroots development projects to operating and optimizing midstream assets, we founded Discovery with a mission of providing superior service and maximum value for our producers.
“We appreciate the support from our existing equity partners in bringing Discovery to this inflection point, and look forward to accelerating the company’s growth over the next phase of value creation through our partnership with TPG.”