DCP Midstream Partners to Acquire Oklahoma Natural Gas Gathering System for $180.25 Million


DENVER, March 7 -- DCP Midstream Partners, LP (NYSE:DPM) (the Partnership) today announced an agreement to acquire certain natural gas gathering and compression assets in Oklahoma from Anadarko Petroleum Corporation (NYSE:APC) for $180.25 million in cash, subject to customary purchase price adjustments.

The midstream assets have historically gathered approximately 25 MMcf per day of production in Grady, Garvin and McClain counties in Oklahoma and deliver the unprocessed gas to a third party for processing. The gathering system consists of approximately 225 miles of pipeline and 9,500 horsepower of compression. The assets will be operated by the owner of the Partnership's general partner, DCP Midstream, LLC (formerly Duke Energy Field Services, LLC).

"This acquisition extends DCP Midstream Partners' footprint into the Midcontinent area and provides operational synergies with assets currently owned and operated by DCP Midstream, LLC," said Mark Borer, president and CEO. "We are very pleased to add these assets to our portfolio and to continue to deliver stable and consistent growth to our unitholders."

The natural gas is gathered under percentage-of-proceeds arrangements where the Partnership's processing margin is related to the value of the natural gas liquids extracted during processing and the residue natural gas remaining after processing. To reduce the potential impact of fluctuations in commodity prices, the Partnership plans to enter into hedging arrangements at closing.

The transaction is expected to close in the second quarter of 2007, subject to customary closing conditions, regulatory approval and the closing of EXCO Resources, Inc.'s acquisition of Anadarko's production and leases dedicated to these midstream assets, which was announced on February 2, 2007. The Partnership intends to finance the acquisition with a combination of borrowings under its existing credit facility and issuance of Partnership equity.

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/.

Source: DCP Midstream Partners, LP

CONTACT: Karen Taylor of DCP Midstream Partners, LP, +1-303-633-2913, or 24 hour, +1-303-809-9160

Web site: http://www.dcppartners.com/

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