DCP Midstream Partners LP Announces Acquisition Of Crossroads Processing Plant

DCP Midstream Partners LP announced that it has entered into an agreement with Penn Virginia Resource Partners, L.P. (PVR) to acquire the Crossroads processing plant and associated gathering system, for approximately $63 million. The Crossroads system, located in the southeastern portion of Harrison county in East Texas, includes approximately 8 miles of gas gathering pipe, an 80 million cubic feet per day cryogenic processing plant, approximately 20 miles of NGL pipeline and a 50% ownership in an approximately 11-mile residue gas pipeline. This system will allow the Partnership to increase critical midstream services to producers that are expanding their liquids rich Haynesville shale and Cotton Valley drilling programs in East Texas. The Partnership intends to use borrowings under its bank credit facility to finance the expected closing of the acquisition on or about July 2, 2012.