DCP Midstream Announces Expanded DJ Basin Natural Gas Processing Capacity via Capital Efficient Long-Term Offload Agreement
Source: Nasdaq GlobeNewswire / 30 Jul 2019 16:38:34 America/New_York
DENVER, July 30, 2019 (GLOBE NEWSWIRE) -- Today, DCP Midstream, LP (NYSE: DCP) announced that it has signed a long-term agreement with Western Midstream Partners, LP (NYSE: WES) that will provide DCP with up to 225 million cubic feet per day of incremental processing capacity at Western’s DJ Basin gas processing complex, which includes the Latham II plant that is presently under construction. The facility will be well-integrated, with natural gas liquids takeaway via DCP’s DJ Southern Hills extension, as well as the Front Range pipeline, and residue gas takeaway via the Cheyenne Connector. This project will increase DCP’s total natural gas processing and bypass capacity in the DJ Basin to approximately 1.5 billion cubic feet per day.
“This is a very capital efficient opportunity that allows us to meet the commitments we have made to our customers to significantly expand our capacity in the DJ Basin by mid-2020,” said Wouter van Kempen, president, chairman, and CEO of DCP Midstream. “As we continue to strengthen our position as the premier, fully-integrated midstream service provider in the DJ Basin, this highly accretive project allows us to capitalize on full value chain economics and drive increased future cash flows. Additionally, with permits and land secured, we preserve the optionality to build future capacity via the Bighorn facility.”
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.
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, 2018 (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.
DCP Investor and Media Relations Sarah Sandberg (303) 605-1626