DCP Midstream Announces De Minimis Impacts as a Result of FERC’s Policy Statement
March 15 2018 - 3:50PM
In response to today’s policy statement from FERC, DCP Midstream,
LP (NYSE: DCP) confirms that no significant impacts to the
company’s financials are expected. The revisions to the 2005 Policy
Statement for Recovery of Income Tax Costs will no longer allow
master limited partnership (MLP) interstate natural gas pipelines
to recover an income tax allowance in cost of service
rates.
“Our analysis shows that these FERC policy revisions will have
de minimis impact to DCP Midstream’s financial performance, as the
majority of our revenues and earnings are derived from assets not
regulated by FERC,” said Wouter van Kempen, DCP Midstream’s
Chairman, President, and CEO. He continued, “Where our assets are
subject to FERC’s jurisdiction, we expect no significant financial
impacts, as our negotiated and incentive rates are below the cost
of service rates established by FERC.”
DCP Midstream, LP is a midstream master limited partnership,
with a diversified portfolio of assets, 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. DCP
owns and operates more than 60 plants and 63,000 miles of natural
gas and natural gas liquids pipelines, with operations in 17 states
across major producing regions and leads the midstream segment as
one of the largest natural gas liquids producers and marketers and
one of the largest natural gas processors in the U.S. Denver,
Colorado based DCP is managed by its general partner, DCP Midstream
GP, LP, which is managed by its general partner, DCP Midstream GP,
LLC, which is 100% owned by DCP Midstream, LLC. DCP Midstream, LLC
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 |
Phone: |
303-605-1822 |
MEDIA
RELATIONS: |
Sarah
Sandberg |
Phone: |
303-605-1626 |
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