DCP Midstream Announces Strategic High-Grading of Its Portfolio
DENVER, May 17, 2017 (GLOBE NEWSWIRE) -- DCP Midstream, LP (NYSE:DCP) today announced the planned divestiture of its Douglas gathering system in Wyoming, which includes approximately 1,500 miles of gathering lines, to Tallgrass Energy Partners, LP (NYSE:TEP) for approximately $128 million, subject to customary closing adjustments. The transaction is expected to close on or before the end of the quarter.
The proceeds from this transaction will be used to fund its strategic organic growth projects around its premier footprint, such as potential expansions of the Sand Hills NGL pipeline in the Permian and additional processing capacity and gathering systems in the DJ Basin.
“We are continuing to strategically high-grade our portfolio by divesting non-core assets and redeploying the cash into strong return, lower risk, accretive fee-based projects that are already in-flight or in development,” said Wouter van Kempen, chairman, president and CEO of DCP Midstream. “We are excited about our growth opportunities that continue to extend our integrated midstream value chain and optimize our footprint.”
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.
|MEDIA RELATIONS:||Roz Elliott|
|INVESTOR RELATIONS:||Irene Lofland|
ABOUT DCP MIDSTREAM, LP
DCP Midstream, LP (NYSE:DCP) is a midstream master limited partnership, with a diversified portfolio of assets, engaged in the business of gathering, compressing, treating, processing, transporting, storing and selling natural gas; producing, fractionating, transporting, storing and selling NGLs and recovering and selling condensate. DCP owns and operates more than 60 plants and 64,000 miles of natural gas and natural gas liquids pipelines, with operations in 17 states across major producing regions and leads the midstream segment as one of the largest natural gas liquids producers and marketers and one of the largest natural gas processors in the U.S. Denver, Colorado based DCP is managed by its general partner, DCP Midstream GP, LP, which is managed by its general partner, DCP Midstream GP, LLC, which is 100% owned by DCP Midstream, LLC. DCP Midstream, LLC is a joint venture between Enbridge and Phillips 66. For more information, visit the DCP Midstream, LP website at www.dcpmidstream.com.
This press release may contain or incorporate by reference forward-looking statements as defined under the federal securities laws regarding DCP Midstream, LP, including projections, estimates, forecasts, plans and objectives. Although management believes that expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. In addition, these statements are subject to certain risks, uncertainties and other assumptions that are difficult to predict and may be beyond DCP's control. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, DCP's actual results may vary materially from what management anticipated, estimated, projected or expected. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements are set forth in DCP’s filings with the Securities and Exchange Commission. The forward-looking statements contained herein speak as of the date of this announcement. DCP undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.