Market Overview

TPG Growth Agrees to Sell Discovery Midstream to KKR and Williams


TPG Growth, the middle market and growth equity platform of alternative
asset firm TPG, announced today it has signed a definitive agreement to
sell Discovery Midstream ("Discovery") to a newly-formed joint venture
between KKR and Williams (NYSE:WMB) for approximately $1.2 billion. The
transaction is expected to close in the third quarter and is subject to
customary closing conditions.

Discovery is a provider of oil and natural gas gathering and natural gas
processing services in the southern portion of Colorado's
Denver-Julesburg Basin. The company's infrastructure and related
facilities are strategically located across more than 250,000 dedicated
acres primarily in Weld and Adams counties. Discovery was established in
2015 by a group of seasoned industry executives.

"Over the last year, Discovery has had tremendous operational and
commercial success in expanding its systems and growing its customer
base," said Christopher Ortega, Partner at TPG. "It's been a pleasure to
work with the Discovery team, who we've known and respected for many
years. We are grateful for their partnership."

The Discovery system includes both natural gas and crude oil gathering
pipelines, cryogenic gas processing, liquids handling, and crude oil
storage. Assets include a 60 million cubic feet per day (MMcf/d) gas
processing plant with an additional 200 MMcf/d plant that is fully
permitted and under construction. It is expected to be in service by the
end of 2018.

"Working with TPG, we've taken meaningful steps in growing our platform
in the DJ Basin, furthering our objective of providing superior service
and maximum value for our producer customers," said Steven Meisel,
Co-Founder of Discovery. Drew Chambers, Co-Founder of Discovery,
continued, "We are thankful for TPG's support over the last year.
Looking ahead, we are excited by the complementary capabilities of the
KKR/Williams partnership and Williams' record as a safe and reliable
operator to further grow these assets."

TPG's energy team has a long history of partnering with leading
companies and strong management teams across the energy value chain.
Focused on building strategic platforms with significant growth
potential, the team's investments have included Copano Energy, EnLink
Midstream, and Jonah Energy. In 2017, TPG launched its first
energy-focused vehicle, TPG Energy Solutions. TES invested in Discovery
alongside TPG Growth.

Vinson & Elkins served as legal advisor and Jefferies acted as financial
advisor to TPG Growth.


About TPG Growth

TPG Growth is the middle market and growth equity investment platform of
TPG, the global alternative asset firm. With approximately $13.2 billion
of assets under management, TPG Growth targets investments in a broad
range of industries and geographies. TPG Growth has the deep sector
knowledge, operational resources, and global experience to drive value
creation, and help companies reach their full potential. The firm is
backed by the resources of TPG, which has approximately $84 billion of
assets under management. For more information, visit

About Discovery Midstream

Based in Dallas, Discovery is a full-service midstream company focused
on maximizing value and providing outstanding service to producers.
Discovery's management team has more than 100 years of experience in
developing grassroots projects, optimizing assets and providing related
services in the major producing basins in the United States. For more
information, please visit

About Williams & Williams Partners

Williams (NYSE:WMB) is a premier provider of large-scale infrastructure
connecting U.S. natural gas and natural gas products to growing demand
for cleaner fuel and feedstocks. Headquartered in Tulsa, Okla., Williams
owns approximately 74 percent of Williams Partners L.P. (NYSE:WPZ).
Williams Partners is an industry-leading, large-cap master limited
partnership with operations across the natural gas value chain including
gathering, processing and interstate transportation of natural gas and
natural gas liquids. With major positions in top U.S. supply basins,
Williams Partners owns and operates more than 33,000 miles of pipelines
system wide – including the nation's largest volume and fastest growing
pipeline – providing natural gas for clean-power generation, heating and
industrial use. Williams Partners' operations touch approximately 30
percent of U.S. natural gas.

About KKR

KKR is a leading global investment firm that manages multiple
alternative asset classes, including private equity, energy,
infrastructure, real estate, credit and, through its strategic partners,
hedge funds. KKR aims to generate attractive investment returns by
following a patient and disciplined investment approach, employing
world-class people, and driving growth and value creation with KKR
portfolio companies. KKR invests its own capital alongside its partners'
capital and provides financing solutions and investment opportunities
through its capital markets business. References to KKR's investments
may include the activities of its sponsored funds. For additional
information about KKR & Co. Inc. (NYSE:KKR), please visit KKR's website
at and
on Twitter @KKR Co.

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