DCP Midstream Announces Expanded DJ Basin Natural Gas Processing Capacity via Capital Efficient Long-Term Offload Agreement
July 30 2019 - 4:38PM
Today, DCP Midstream, LP (NYSE: DCP) announced that it has signed a
long-term agreement with Western Midstream Partners, LP (NYSE: WES)
that will provide DCP with up to 225 million cubic feet per day of
incremental processing capacity at Western’s DJ Basin gas
processing complex, which includes the Latham II plant that is
presently under construction. The facility will be well-integrated,
with natural gas liquids takeaway via DCP’s DJ Southern Hills
extension, as well as the Front Range pipeline, and residue gas
takeaway via the Cheyenne Connector. This project will increase
DCP’s total natural gas processing and bypass capacity in the DJ
Basin to approximately 1.5 billion cubic feet per day.
“This is a very capital efficient opportunity that allows us to
meet the commitments we have made to our customers to significantly
expand our capacity in the DJ Basin by mid-2020,” said Wouter van
Kempen, president, chairman, and CEO of DCP Midstream. “As we
continue to strengthen our position as the premier,
fully-integrated midstream service provider in the DJ Basin, this
highly accretive project allows us to capitalize on full value
chain economics and drive increased future cash flows.
Additionally, with permits and land secured, we preserve the
optionality to build future capacity via the Bighorn facility.”
ABOUT DCP MIDSTREAM, LPDCP Midstream, LP (NYSE:
DCP) is a Fortune 500 midstream master limited partnership
headquartered in Denver, Colorado, with a diversified portfolio of
gathering, processing, 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, 2018 (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.
DCP Investor and Media Relations
Sarah Sandberg
(303) 605-1626
DCP Midstream (NYSE:DCP)
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