KKR, Williams Cos form JV to buy Discovery Midstream for $1.2B
(Reuters) - Private equity firm KKR and Co said it will form a joint venture with pipeline company Williams Cos Inc to buy Discovery Midstream from TPG Growth for about $1.2 billion.
Assets of Discovery, located in Colorado's Denver-Julesburg Basin, include a 60 million cubic feet per day (MMcf/d) gas processing plant, with an extra 200 MMcf/d plant that is under construction and is expected to be in service by the end of 2018, KKR said.
KKR will own 60 percent stake in Discovery and the remaining will be held by Williams upon close of the deal, expected in the third quarter of this year. Discovery will continue to be led by its existing management.
Williams will also fund additional capital, when required, to bring its total ownership of Discovery to 50 percent.
KKR said it will fund the deal primarily through its energy and infrastructure funds.
Last year, TPG Growth, a sister company of asset management firm TPG, bought Dallas, Houston-based oil and gas producer Discovery Midstream.
Separately, privately-held Harvest Midstream Company said it would buy Williams Partners LP's pipeline and storage assets in Colorado and New Mexico for $1.13 billion. (Reporting by Anirban Paul in Bengaluru; Editing by Shounak Dasgupta and Shailesh Kuber)
- ExxonMobil halts 1-Bft3d blue hydrogen project in Texas
- Aramco and Yokogawa commission multiple autonomous control AI agents at Fadhili gas plant
- Ukraine will resume gas imports via Transbalkan route in November
- Mitsubishi to inject $260 MM into Brunei LNG project
- Freeport LNG (U.S.) on track to take in more natgas on Thursday after unit outage
Comments