DCP Announces Sale of Gas Supply Resources (GSR) Wholesale Propane Business to NGL Energy Partners LP
January 30 2019 - 4:45PM
Business Wire
NGL Energy Partners LP (NYSE: NGL) (“NGL”) and DCP Midstream, LP
(NYSE: DCP) (“DCP”) announced they have executed a purchase and
sale agreement under which DCP will convey to NGL its wholesale
propane business, generally consisting of seven natural gas liquids
terminals in the Eastern United States. Under the terms of the
agreement, NGL will acquire 100% ownership of five propane rail
terminals operated by Gas Supply Resources, a subsidiary of DCP,
and 50% ownership interest in a sixth propane rail terminal. The
agreement also includes an import/export terminal located in
Chesapeake, Virginia, with the capability to load or unload ships
from Handy-sized vessels up to Very Large Gas Carriers.
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“NGL is excited to acquire these well-operated, high-quality
assets from DCP. The propane terminals complement NGL’s existing
liquids portfolio and create additional opportunities for new and
existing customers to supply their business. The Chesapeake asset
provides strategic access to the water for imports and exports. Gas
Supply Resources has an excellent reputation in the Northeast, and
we look forward to inviting their talented employees to join the
NGL team,” said Jeff Pinter, Executive Vice President of Liquids
for NGL.
“Gas Supply Resources has been a great asset for DCP, but has no
interconnectivity with our otherwise integrated value chain of
midstream services,” said Wouter van Kempen, chairman, president,
and CEO of DCP Midstream. “This is an outstanding opportunity to
streamline our assets and fund our 2019 strategic capital
program.”
The transaction has been approved by appropriate governing
bodies of both companies, but remains subject to satisfaction of
specified closing conditions, including expiration or termination
of the applicable waiting period under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976.
About NGL Energy Partners, LP
NGL Energy Partners LP is a Delaware limited partnership. NGL
owns and operates a vertically integrated energy business with four
primary businesses: water solutions, crude oil logistics, NGL
logistics and refined products/renewables. For further information,
visit the Partnership’s website at www.nglenergypartners.com.
About DCP Midstream, LP
DCP 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.
Forward-Looking Statements
Certain matters contained in this Press Release include
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. We make these
forward-looking statements in reliance on the safe harbor
protections provided under the Private Securities Litigation Reform
Act of 1995.
All statements, other than statements of historical fact,
included in this Press Release may constitute forward-looking
statements. Although we believe that the expectations reflected in
these forward-looking statements are reasonable, we cannot assure
you that these expectations will prove to be correct. These
forward-looking statements are subject to certain known and unknown
risks and uncertainties, as well as assumptions that could cause
actual results to differ materially from those reflected in these
forward-looking statements. Factors that might cause actual results
to differ include the risk factors discussed from time to time in
each of our documents and reports filed with the SEC.
Readers are cautioned not to place undue reliance on any
forward-looking statements contained in this Press Release, which
reflect management’s opinions only as of the date hereof. Except as
required by law, we undertake no obligation to revise or publicly
release the results of any revision to any forward-looking
statements.
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NGL Energy Partners Investor Relations:Trey Karlovich,
918-481-1119Executive Vice President and Chief Financial
OfficerTrey.Karlovich@nglep.com
Linda Bridges, 918-481-1119Senior Vice President – Finance and
TreasurerLinda.Bridges@nglep.com
NGL Energy Partners Marketing Information:Jeff Pinter,
918-481-1119Executive Vice President - NGL
LiquidsJeff.Pinter@nglep.com
DCP Midstream Investor Relations:Irene
Lofland303-605-1822ilofland@dcpmidstream.com
DCP Midstream Media:Sarah
Sandberg303-605-1626scsandberg@dcpmidstream.com
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