DENVER, Feb. 01, 2016 (GLOBE NEWSWIRE) -- Today, DCP Midstream announced the successful execution of several significant objectives which extend the company’s leadership positions in the DJ and Permian basins and add incremental fee-based margins to DCP Midstream and DCP Midstream Partners (NYSE:DPM).
First, the DCP Midstream enterprise has reached a settlement with a large producer in the DJ basin. With this settlement DCP Midstream is receiving a cash payment, incremental volumes in the DJ basin under a life of lease agreement effective January 1, 2016, and a long term dedication of natural gas liquids from the producer and its affiliates to its Sand Hills NGL pipeline in the Delaware basin of the Permian region. “The collaborative resolution of this matter will provide operational flexibility for the producer and incremental volumes and earnings for DCP Midstream and DCP Midstream Partners in two of the most prolific producing areas of the U.S.,” said Wouter van Kempen, chairman, CEO and president of DCP Midstream and DCP Midstream Partners.
The DCP Midstream enterprise also announced other developments in both the DJ and Permian basins.
DCP Midstream Partners’ Grand Parkway 25-mile, fee-based gathering expansion went into service in early 2016 further lowering pipeline pressures and driving incremental volumes in the DJ basin making the area more competitive for producers.
In addition to the contract renewal announced in October, DCP Midstream has now converted and simplified contracts with two investment grade producers in the Delaware basin where it holds the second largest gas processing position. It has also secured a Sand Hills NGL volume dedication from a third investment grade producer. As a result, DCP Midstream has effectively converted this incremental throughput at its Zia II plant to primarily fee-based margins and will be connecting additional volumes to Sand Hills NGL pipeline by mid-year.
“We are pleased with our early progress in 2016 to extend our reach in these core producing areas partnering with top quality producers to achieve efficiency, optimize our systems, and grow fee-based revenues,” said van Kempen.
ABOUT DCP MIDSTREAM, LLC
DCP Midstream, LLC leads the midstream segment as the largest natural gas processor, the largest natural gas liquids producer and one of the largest marketers in the U.S. DCP Midstream operates in 17 states across major producing regions. The company is a 50:50 joint venture between Phillips 66 and Spectra Energy. It owns the general partner of DCP Midstream Partners, LP (NYSE:DPM), a master limited partnership, and provides operational and administrative support to the partnership. DCP Midstream is the largest oil and gas company and the largest private company in Denver, the city of its headquarters. For more information, visit the DCP Midstream website at www.dcpmidstream.com.
ABOUT DCP MIDSTREAM PARTNERS
DCP Midstream Partners, LP (NYSE:DPM) is a midstream master limited partnership engaged in the business of gathering, compressing, treating, processing, transporting, storing and selling natural gas; producing, fractionating, transporting, storing and selling NGLs and recovering and selling condensate; and transporting, storing and selling propane in wholesale markets. DCP Midstream Partners, LP is managed by its general partner, DCP Midstream GP, LP, which in turn is managed by its general partner, DCP Midstream GP, LLC, which is 100 percent owned by DCP Midstream, LLC, a joint venture between Phillips 66 and Spectra Energy Corp. For more information, visit the DCP Midstream Partners, LP website at www.dcppartners.com.
This press release contains forward-looking statements as defined under the federal securities laws regarding DCP Midstream Partners, LP, including projections, estimates, forecasts, plans and objectives. Although management believes that expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. In addition, these statements are subject to certain risks, uncertainties and other assumptions that are difficult to predict and may be beyond our control. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, the Partnership’s actual results may vary materially from what management anticipated, estimated, projected or expected.
Investors are encouraged to closely consider the disclosures and risk factors contained in the Partnership’s annual and quarterly reports filed from time to time with the Securities and Exchange Commission. The Partnership undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Information contained in this press release is unaudited, and is subject to change.