DCP Midstream Partners Completes $270 Million Acquisition from General Partner
DENVER, July 2 /-- DCP Midstream Partners, LP (NYSE:DPM), or the Partnership, has completed its previously announced acquisition of partial ownership interests in DCP East Texas Holdings, LLC and Discovery Producer Services LLC from DCP Midstream, LLC, the owner of the Partnership's general partner, for consideration of $270 million prior to customary purchase price adjustments. The acquisition was effective July 1, 2007 and will be immediately accretive to the Partnership's unitholders on a per-unit basis. The Partnership will finance the transaction with a combination of debt and equity.
The transaction includes a 25 percent non-operated ownership interest in DCP East Texas Holdings, LLC (East Texas). East Texas is an integrated gas gathering and processing complex located primarily in Panola County, Texas, and is comprised of the following assets:
o a natural gas processing complex with total processing capacity of
780 million cubic feet per day (MMcf/d);
o approximately 900 miles of gas gathering pipelines with over 1,500
receipt points and over 25,000 horsepower of compression; and
o the Carthage Hub, with an aggregate delivery capacity of 1.5 billion
cubic feet per day, which delivers residue gas to multiple interstate
and intrastate pipelines.
East Texas will continue to be operated by DCP Midstream, LLC.
The transaction also includes DCP Midstream, LLC's 40 percent non-operated ownership interest in Discovery Producer Services LLC (Discovery Partnership). The Discovery Partnership, operated by the Williams Companies (NYSE:WMB), offers a full range of wellhead to market services to both onshore and offshore natural gas producers. The assets are primarily located in the eastern Gulf of Mexico and Lafourche Parish, La., and consist of the following:
o 270 miles of deepwater Gulf of Mexico gathering and FERC-regulated
transmission pipelines;
o the 600 MMcf/d LaRose gas processing plant; and
o the 32,000 barrel per day Paradis fractionator.
"We are excited about the continued growth of the Partnership and the opportunities that we believe will accompany the Partnership's increasing operating footprint," said Mark Borer, president and CEO of the Partnership. "We've closed strategic acquisitions valued in excess of $500 million within the last eight months. We continue to execute on all aspects of our Optimize- Build-Acquire growth strategy."
DCP Midstream Partners, LP (NYSE:DPM) is a midstream master limited partnership that gathers, processes, transports and markets natural gas and natural gas liquids and is a leading wholesale distributor of propane. DCP Midstream Partners, LP is managed by its general partner, DCP Midstream GP, LLC, which is wholly owned by DCP Midstream, LLC, a joint venture between Spectra Energy and ConocoPhillips. For more information, visit the DCP Midstream Partners, LP Web site at http://www.dcppartners.com/.
FCMN Contact: kltaylor@dcppartners.com
Source: DCP Midstream Partners, LP
CONTACT:
Karen L. Taylor, Media and Investor Relations Contact, DCP Midstream Partners, LP, +1-303-633-2913, 24-Hour, +1-303-809-9160
Web site: http://www.dcppartners.com/
