DCP Midstream Partners, LP : DCP Midstream Partners to Expand East Texas Natural Gas Processing Business Through Acquisition of Crossroads Processing Plant
06/18/2012| 05:05pm US/Eastern
Recommend:
DCP Midstream Partners, LP (NYSE: DPM) or the "Partnership" announced
today that it has entered into an agreement with Penn Virginia Resource
Partners, L.P. ("PVR") to acquire the Crossroads processing plant and
associated gathering system, for approximately $63 million. The
Crossroads system, located in the southeastern portion of Harrison
county in East Texas, includes approximately 8 miles of gas gathering
pipe, an 80 million cubic feet per day cryogenic processing plant,
approximately 20 miles of NGL pipeline and a 50% ownership in an
approximately 11-mile residue gas pipeline. This system will allow the
Partnership to increase critical midstream services to producers that
are expanding their liquids rich Haynesville shale and Cotton Valley
drilling programs in East Texas.
"This immediately accretive acquisition provides us with an opportunity
to increase our market position in East Texas and demonstrates our
commitment to provide integrated midstream services to our customers,"
said Mark Borer, president and CEO of the Partnership. "The addition of
the Crossroads system is a synergistic bolt-on acquisition to our
existing East Texas system and will expand our processing capabilities
to support our customers' growth."
The Partnership intends to use borrowings under its bank credit facility
to finance the expected closing of the acquisition on or about July 2,
2012.
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 condensate;
and transporting, storing and selling propane in wholesale markets. 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 Phillips 66. For more information, visit the
DCP Midstream Partners, LP website at www.dcppartners.com.
DCP Midstream Partners, LP
Media and Investor Relations Contact:
Jonni
Anwar, 303-605-1868
24-Hour: 303-887-5419
© Business Wire 2012
Recommend :
