Discovery Midstream secures $1bn equity funding from Stonepeak Infrastructure Partners
Discovery Midstream Holdings II, LLC (Discovery), a producer-focused midstream company, announced that it has received an initial equity commitment of up to $1bn from Stonepeak Infrastructure Partners (Stonepeak), an infrastructure-focused private equity firm, to pursue a suite of North American midstream opportunities.
Discovery will pursue a strategy targeting midstream assets within both private and public ownership structures, at various stages of maturity, and across the hydrocarbon value chain, including natural gas, natural gas liquids, and crude oil, with a focus on situations where outcomes can be influenced with Discovery’s expertise in operational and commercial optimisation.
Steven Meisel, Co-CEO said: “Discovery could not be more excited to partner with the Stonepeak team, whom we have known for many years. We believe there is significant synergy in combining the complementary expertise of our respective organisations.” Co-CEO, Drew Chambers added, “We believe that now represents a unique and attractive time to invest in the U.S. midstream sector, supported by secular volumetric growth, historically depressed valuations, supportive structural changes in the public markets and limited new capital formation.”
Jack Howell, Senior Managing Director at Stonepeak, added: “The Discovery management team has demonstrated a strong track record of successful execution throughout different stages of the cycle, and we are excited to partner with them to pursue what we believe to be a broad set of midstream opportunities. We look forward to a productive long-term relationship and could not ask for a better market set-up.”
10th January 2019