Discovery Midstream Holdings II, a producer-focused midstream company, has received an initial equity commitment of up to $1 billion from Stonepeak Infrastructure Partners, 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 optimization.
Co-CEO Drew Chambers said, “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.”