DCP Midstream Partners to Expand East Texas Natural Gas Processing Business Through Acquisition of Crossroads Processing Plant
DENVER--(BUSINESS WIRE)-- DCP Midstream Partners, LP (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 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
Source: DCP Midstream Partners, LPCopyright Business Wire 2012