TPG Growth, has entered into a definitive agreement to acquire Discovery Midstream, a Dallas-based provider of oil and natural gas gathering and natural gas processing services in the southern portion of Colorado’s Denver-Julesburg Basin. Discovery’s current management team will continue to run the company post-transaction and is investing alongside TPG Growth. Additional terms of the transaction were not disclosed.
Discovery’s assets are strategically located in Weld and Adams counties. The company is currently constructing more than 120 miles of pipeline and a 60 mmcf/d natural gas processing plant, which is expected to come online in the third quarter of 2017. The company plans to expand the plant capacity to 260 mmcf/d in 2018. Discovery’s system is supported by long-term contracts with leading producers in the DJ Basin.
“In partnering with Discovery, we are backing a strong and experienced management team that is building a cost-effective, full-service, high-quality midstream platform in one of the most attractive basins in the U.S.,” said Christopher Ortega, Partner at TPG. “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. We have a long relationship with the Discovery team and are excited to assist the company in continuing its commercial success and growing the platform.”
The transaction is expected to close in the third quarter of 2017.