DCP Midstream Continues to Extend Its Value Chain by Securing Option for Ownership in Expansion of Sweeny Hub Fractionators
June 13 2018 - 9:00AM
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, LPDCP 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
Phone: 303-605-1822
MEDIA RELATIONS: Sarah Sandberg
Phone: 303-605-1626
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