The new plant and gathering systems will augment DPM's existing Permian footprint, where the company owns and operates 18 gas processing plants with a capacity of more than 1.3B cf/day and produces 130K bbl/day of natural gas liquids.
DPM says it will use the proceeds to pay down debt and part of the $1.15M dropdown transaction announced in today's Q4 earnings report, as well as for organic growth projects and general partnership purposes.
Sandell Asset Management is urging Spectra Energy (SE +0.3%) to present to the market a road map for value creation by the end of the year, Reuters reports.
One way to unlock shareholder value, the activist investor says, is to swap its 50% interest in DCP Midstream Partners (DPM -0.2%) for equity in Phillips 66's MLP (PSXP +3%) in a deal that could improve the valuation of both companies.
Sandell reportedly said in an Oct. 2 letter that it believes DCP's assets are a better fit with Phillips 66 Partners; it had pressed SE for changes in a June letter, when it said it believes SE is undervalued and should trade at ~$48//share.
Spectra Energy (SE -1.6%) rejects calls from activist shareholder Sandell to sell or spin off its western Canadian pipelines or its stake in DCP Midstream (DPM); selling shares in the Canadian unit would create tax problems and DCP’s rising cash flow will boost SE’s stock price, CEO Greg Ebel says.
Sandell said last month it considered a sale of assets to the partnership - which SE valued today at ~$9.68B - about a third of its plan for Spectra.