DENVER, June 13, 2018 (GLOBE NEWSWIRE) -- Today, DCP Midstream, LP (NYSE:DCP) announced that it plans to further extend its value chain by securing an option to acquire up to a 30 percent ownership interest in two, 150,000 bpd natural gas liquids (NGL) fractionators to be constructed within Phillips 66’s Sweeny Hub in Old Ocean, Texas. DCP’s option is exercisable at the in-service date of the fractionators, which is expected to be in late 2020, with a capital investment of approximately $400 million. Additionally, DCP has committed to supply agreements for Y-grade NGL feedstock to the fractionators.
“This strategic growth option represents another important step as we significantly increase DCP’s vertical integration to better meet our customers’ needs, while driving fee-based earnings growth,” said Wouter van Kempen, president, chairman, and CEO of DCP Midstream. “As we continue to strengthen our logistics and marketing portfolio, this project provides critical fractionation services to optimize our Sand Hills and Southern Hills pipeline expansions, while highlighting our disciplined approach to capital allocation.”
Last month, DCP announced that the Southern Hills NGL pipeline will connect the DJ Basin to Mont Belvieu, Sweeny, and other Gulf Coast market centers via the White Cliffs pipeline. The Sweeny Hub ensures adequate fractionation capacity for growing NGL production while providing a noteworthy market alternative to Mont Belvieu.
“The option to partner with Phillips 66 in the new fractionators is an important component of our larger, multi-year growth strategy, as we extend our footprint to link customers to the growing petrochemical markets and export facilities in the Gulf Coast region,” said van Kempen. “From the wellheads of the DJ Basin, SCOOP, STACK, and Permian, to our fractionators, DCP is a reliable partner for our customers throughout the full value chain.”
Additional details regarding this project can be found on DCP Midstream’s website at www.dcpmidstream.com/company/business-segments/growth-projects.
About DCP Midstream, LP
DCP Midstream, LP (NYSE:DCP) is a midstream master limited partnership headquartered in Denver, Colorado, with a diversified portfolio of gathering and processing assets in addition to logistics and marketing assets. DCP is one of the largest natural gas liquids producers and marketers and one of the largest natural gas processors in the U.S. The owner of DCP’s general partner is a joint venture between Enbridge and Phillips 66. For more information, visit the DCP Midstream, LP website at www.dcpmidstream.com.
This news release includes forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities and Exchange Act of 1934. Generally the words “expects,” “believes,” anticipates,” “plans,” “will,” “shall,” “estimates,” and similar expressions identify forward-looking statements, which are generally not historical in nature. Forward-looking statements are subject to risks and uncertainties and are based on the beliefs and assumptions of management, based on information currently available to them. Although DCP Midstream believes that these forward-looking statements are based on reasonable assumptions, it can give no assurance that any such forward-looking statements will materialize. Important factors that could cause actual results to differ materially from those expressed in or implied from these forward-looking statements include the risks and uncertainties described in DCP Midstream’s reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year-ended December 31, 2017 (under the headings “Risk Factors” and “Information Regarding Forward-Looking Statements” and elsewhere) and its subsequent reports, which are available through the SEC’s EDGAR system at www.sec.gov and on our website under the Investors tab at www.dcpmidstream.com. Forward-looking statements speak only as of the date they were made, and except to the extent required by law, DCP Midstream undertakes no obligation to update any forward-looking statement because of new information, future events or other factors. Because of these risks and uncertainties, readers should not place undue reliance on these forward-looking statements.
INVESTOR RELATIONS: Irene Lofland
MEDIA RELATIONS: Sarah Sandberg
DCP Midstream LP