EX-99.1
4
v086891_ex99-1.htm
August
29, 2007
MEDIA
AND INVESTOR RELATIONS CONTACT:
Karen
L. Taylor
Phone:
303/633-2913
24-Hour:
303/809-9160
DCP
MIDSTREAM AND DCP MIDSTREAM PARTNERS COMPLETE ACQUISITIONS
·
DCP
Midstream purchases Momentum Energy Group Inc. (MEG) for $635
million
·
DCP
Midstream Partners purchases certain MEG assets from general partner
for
$165 million
DENVER
-
DCP Midstream, LLC, or DCP Midstream, has completed its previously announced
acquisition of the stock of MEG for $635 million, subject to closing
adjustments. MEG is a portfolio company of investment firms including Yorktown
Energy Partners LLC, Banc of America Capital Investors and Lehman Brothers
MLP
Partners, L.P. In a separate transaction, DCP Midstream Partners (NYSE: DPM),
or
the Partnership, completed its previously announced acquisition of certain
subsidiaries of MEG from DCP Midstream for $165 million, subject to closing
adjustments. DCP Midstream owns the general partner of the Partnership. These
transactions mark the combined enterprise's entry into three prominent producing
basins: Fort Worth, Piceance and Powder River.
"This
acquisition exemplifies our commitment to grow our gathering and processing
footprint by entering three prominent producing basins", said William Easter
III, chairman, president and CEO of DCP Midstream. "We foresee future
opportunities to deploy growth capital in these new basins and look forward
to
partnering with the producers in these basins to provide the necessary
infrastructure and services to link them to the market." Mark Borer, president
and CEO of the Partnership, added "With the close of this transaction, the
Partnership has executed over $625 million in acquisitions since April 1, 2007.
We are pleased to enter these growth basins, diversify our business portfolio,
and to provide immediate accretion to our distributable cash flow. Our ability
to jointly pursue growth opportunities with DCP Midstream is a competitive
advantage for the Partnership".
DCP
Midstream will retain the MEG assets in the Fort Worth Basin which include
the
150-mile Tolar system. This system gathers and processes natural gas produced
from the prolific Barnett Shale formation, serving over 300,000 dedicated acres
in Parker, Hood, Erath, Palo Pinto and Somervell counties in Texas. Both the
gathering system and existing processing capacity of 80 million cubic feet
per
day (MMCFD) are being expanded to accommodate increased drilling including
construction of the new Black Diamond plant.
DCP
Midstream financed the acquisition with debt. Merrill Lynch & Co. acted as
exclusive financial advisor to DCP Midstream on the acquisition and Lehman
Brothers Inc. acted as exclusive financial advisor to MEG.
The
Partnership purchased the Piceance Basin and Powder River Basin assets of MEG
from DCP Midstream. The Piceance Basin assets consist of a 70 percent operating
interest in the 31-mile Collbran Valley Gas Gathering system joint venture,
which gathers and processes natural gas from over 20,000 dedicated acres in
western Colorado. The processing facility capacity is currently being expanded
from 60 MMcfd to 120 MMcfd. The other partners in the joint venture, Plains
Exploration and Delta Petroleum, are also the producers on the system. The
Powder River Basin assets include the 1,324-mile Douglas gas gathering system,
which gathers approximately 30 MMcfd of gas and covers more than 4,000 square
miles in Wyoming. Also included in the transaction is the idle Painter Unit
fractionator and Millis terminal, and associated NGL pipelines currently leased
to a third party in southwest Wyoming. DCP Midstream will manage and operate
these assets on the Partnership's behalf.
The
Partnership financed the acquisition from DCP Midstream with a combination
of
equity, debt and cash on hand.
DCP
Midstream, LLC, headquartered in Denver, Colorado, is one of the nation's
largest natural gas gatherers and processors, and one of the largest
natural gas liquids (NGLs) producers and NGL marketers. DCP Midstream
operates in 16 states across the five largest natural gas producing regions
in
the United States. DCP Midstream is a 50:50 joint venture between Spectra
Energy and ConocoPhillips. For
more information, visit the DCP Midstream Web site at www.dcpmidstream.com.
DCP
Midstream Partners, LP (NYSE: DPM) is a midstream master limited partnership
that gathers, processes, transports and markets natural gas and 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. For more
information, visit the DCP Midstream Partners, LP Web site at http://www.dcppartners.com.
-more-
-
2
-
This press release may contain or incorporate by reference
forward-looking statements as defined under the federal securities laws
regarding DCP Midstream Partners, 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 our control. If one or more
of
these risks or uncertainties materialize, or if underlying assumptions prove
incorrect, the Partnership's actual results may vary materially from what
management anticipated, estimated, projected or expected. Among the key risk
factors that may have a direct bearing on the Partnership's results of
operations and financial condition are:
·
the
level and success of natural gas drilling around our assets and our
ability to connect supplies to our gathering and processing systems
in
light of competition;
·
our
ability to grow through acquisitions, asset contributions from our
parents, or organic growth projects, and the successful integration
and
future performance of such assets;
·
our
ability to access the debt and equity
markets;
·
fluctuations
in oil, natural gas, propane and other NGL prices; our ability to purchase
propane from our principal suppliers for our wholesale propane logistics
business; and
·
the
credit worthiness of counterparties to our transactions.
Investors
are encouraged to closely consider the disclosures and risk factors contained
in
the Partnership's annual and quarterly reports filed from time to time with the
Securities and Exchange Commission. The Partnership undertakes no obligation
to
publicly update or revise any forward-looking statements, whether as a result
of
new information, future events or otherwise. Information contained in this
press
release is unaudited, and is subject to change.
###

EX - 99 . 1 4 v086891 _ ex99 - 1 . htm August 29 , 2007 MEDIA AND INVESTOR RELATIONS CONTACT : Karen L . Taylor Phone : 303 / 633 - 2913 24 - Hour : 303 / 809 - 9160 DCP MIDSTREAM AND DCP MIDSTREAM PARTNERS COMPLETE ACQUISITIONS · DCP Midstream purchases Momentum Energy Group Inc . ( MEG ) for $ 635 million · DCP Midstream Partners purchases certain MEG assets from general partner for $ 165 million DENVER - DCP Midstream , LLC , or DCP Midstream , has completed its previously announced acquisition of the stock of MEG for $ 635 million , subject to closing adjustments . MEG is a portfolio company of investment firms including Yorktown Energy Partners LLC , Banc of America Capital Investors and Lehman Brothers MLP Partners , L . P . In a separate transaction , DCP Midstream Partners ( NYSE : DPM ) , or the Partnership , completed its previously announced acquisition of certain subsidiaries of MEG from DCP Midstream for $ 165 million , subject to closing adjustments . DCP Midstream owns the general partner of the Partnership . These transactions mark the combined enterprise 's entry into three prominent producing basins : Fort Worth , Piceance and Powder River . " This acquisition exemplifies our commitment to grow our gathering and processing footprint by entering three prominent producing basins " , said William Easter III , chairman , president and CEO of DCP Midstream . " We foresee future opportunities to deploy growth capital in these new basins and look forward to partnering with the producers in these basins to provide the necessary infrastructure and services to link them to the market . " Mark Borer , president and CEO of the Partnership , added " With the close of this transaction , the Partnership has executed over $ 625 million in acquisitions since April 1 , 2007 . We are pleased to enter these growth basins , diversify our business portfolio , and to provide immediate accretion to our distributable cash flow . Our ability to jointly pursue growth opportunities with DCP Midstream is a competitive advantage for the Partnership " . DCP Midstream will retain the MEG assets in the Fort Worth Basin which include the 150 - mile Tolar system . This system gathers and processes natural gas produced from the prolific Barnett Shale formation , serving over 300,000 dedicated acres in Parker , Hood , Erath , Palo Pinto and Somervell counties in Texas . Both the gathering system and existing processing capacity of 80 million cubic feet per day ( MMCFD ) are being expanded to accommodate increased drilling including construction of the new Black Diamond plant . DCP Midstream financed the acquisition with debt . Merrill Lynch & Co . acted as exclusive financial advisor to DCP Midstream on the acquisition and Lehman Brothers Inc . acted as exclusive financial advisor to MEG . The Partnership purchased the Piceance Basin and Powder River Basin assets of MEG from DCP Midstream . The Piceance Basin assets consist of a 70 percent operating interest in the 31 - mile Collbran Valley Gas Gathering system joint venture , which gathers and processes natural gas from over 20,000 dedicated acres in western Colorado . The processing facility capacity is currently being expanded from 60 MMcfd to 120 MMcfd . The other partners in the joint venture , Plains Exploration and Delta Petroleum , are also the producers on the system . The Powder River Basin assets include the 1,324 - mile Douglas gas gathering system , which gathers approximately 30 MMcfd of gas and covers more than 4,000 square miles in Wyoming . Also included in the transaction is the idle Painter Unit fractionator and Millis terminal , and associated NGL pipelines currently leased to a third party in southwest Wyoming . DCP Midstream will manage and operate these assets on the Partnership 's behalf . The Partnership financed the acquisition from DCP Midstream with a combination of equity , debt and cash on hand . DCP Midstream , LLC , headquartered in Denver , Colorado , is one of the nation 's largest natural gas gatherers and processors , and one of the largest natural gas liquids ( NGLs ) producers and NGL marketers . DCP Midstream operates in 16 states across the five largest natural gas producing regions in the United States . DCP Midstream is a 50 : 50 joint venture between Spectra Energy and ConocoPhillips . For more information , visit the DCP Midstream Web site at www.dcpmidstream.com . DCP Midstream Partners , LP ( NYSE : DPM ) is a midstream master limited partnership that gathers , processes , transports and markets natural gas and 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 . For more information , visit the DCP Midstream Partners , LP Web site at http://www.dcppartners.com . - more - - 2 - This press release may contain or incorporate by reference forward - looking statements as defined under the federal securities laws regarding DCP Midstream Partners , 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 our control . If one or more of these risks or uncertainties materialize , or if underlying assumptions prove incorrect , the Partnership 's actual results may vary materially from what management anticipated , estimated , projected or expected . Among the key risk factors that may have a direct bearing on the Partnership 's results of operations and financial condition are : · the level and success of natural gas drilling around our assets and our ability to connect supplies to our gathering and processing systems in light of competition ; · our ability to grow through acquisitions , asset contributions from our parents , or organic growth projects , and the successful integration and future performance of such assets ; · our ability to access the debt and equity markets ; · fluctuations in oil , natural gas , propane and other NGL prices ; our ability to purchase propane from our principal suppliers for our wholesale propane logistics business ; and · the credit worthiness of counterparties to our transactions . Investors are encouraged to closely consider the disclosures and risk factors contained in the Partnership ' s annual and quarterly reports filed from time to time with the Securities and Exchange Commission . The Partnership undertakes no obligation to publicly update or revise any forward - looking statements , whether as a result of new information , future events or otherwise . Information contained in this press release is unaudited , and is subject to change . # # #
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