DCP Midstream Partners LP has acquired all of the ownership interests of Marysville Hydrocarbon Holdings LLC for $95 million plus inventory and other working capital of about $6 million.

Through its wholly-owned subsidiary, Marysville Hydrocarbons Inc., Marysville owns and operates a propane and butane storage facility in Marysville, Michigan which includes nine underground salt caverns with 285 million gallons of storage capacity; rail, truck and pipeline connections providing an important supply point for refiners and wholesale propane distributors in the Midwest, Sarnia and Northeast markets; and a 620-acre site including 300 undeveloped acres.

DCP Midstream believes the Marysville storage facility has expansion potential through the development of two additional underground salt caverns.

In addition, in January, 2011, the partnership will convert MHI from a corporation to a limited liability company. This conversion triggers a liability for tax gains, which the partnership will pay within 75 days of the conversion following a third party valuation of the MHI assets.

“This immediately accretive acquisition, with the majority of its margins being fee-based tied to storage capacity, expands our existing wholesale propane business,” said Mark Borer, president and chief executive of the partnership. “The addition of this Michigan storage asset builds on our supply and logistics capabilities, while providing future expansion potential and new business opportunities. The acquisition also provides additional business and geographic diversification to our asset portfolio.”

The acquisition was financed with borrowings under the Partnership’s revolving credit facility.

DCP Midstream Partners is a midstream master limited partnership that gathers, treats, processes, transports and markets natural gas, transports and markets natural gas liquids, and is a leading wholesale distributor of propane. 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 ConocoPhillips.