DCP Midstream Completes Dropdown Of Interest In DCP Southeast Texas

Bought remaining 66.67% interest in DCP Southeast Texas Holdings GP, gaining 675 miles of gas-gathering and transportation pipelines, 3 gas processing plants with total processing capacity of 400 Mmcf/d, & gas storage assets with 9 Bcf storage capacity.

DCP Midstream Partners LP, Denver, (NYSE: DPM) has completed the previously announced dropdown of the remaining 66.67% interest in DCP Southeast Texas Holdings GP from the owner of its general partner, DCP Midstream LLC, for $240 million.

The Southeast Texas system is a fully integrated midstream business with 675 miles of natural gas gathering and transportation pipelines, three natural gas processing plants with total processing capacity of 400 million cubic feet per day, natural gas storage assets with storage capacity of 9 billion cubic feet, favorable access to interstate and intrastate gas markets, and NGL market deliveries directly to ExxonMobil and to Mont Belvieu via DCP Midstream’s Black Lake NGL pipeline.

DCP Midstream financed the deal through a portion of the net proceeds from the partnership’s recent 10-year senior notes offering and the issuance of 1,000,417 DCP Midstream common units to DCP Midstream.

"This transaction will provide immediate cash flows to support continued distribution growth," says DCP Midstream president and chief executive Mark Borer. "It is another example of how we are co-investing and effectively partnering with our general partner. The completion of this transaction provides a solid start toward meeting our 2012 co-investment objectives."