Profile: DCP Midstream Partners LP (DPM.N)
DCP Midstream Partners, LP, incorporated on August 5, 2005, is a partnership formed by DCP Midstream, LLC to own, operate, acquire and develop a diversified portfolio of complementary midstream energy assets. The Company is engaged in the business of gathering, compressing, treating, processing, transporting, storing and selling natural gas; producing, fractionating, transporting, storing and selling natural gas liquids (NGLs) and recovering and selling condensate, and transporting, storing and selling propane in wholesale markets. The Company operates in three business segments: Natural Gas Services, NGL Logistics and Wholesale Propane Logistics.
Natural Gas Services Segment
The Company’s Natural Gas Services segment consists of a geographically diverse complement of assets and ownership interests that provide an array of wellhead to market services for its producer customers. These services include gathering, compressing, treating, processing, transporting and storing natural gas, and fractionating NGLs. These assets are positioned in certain areas with active drilling programs and opportunities for organic growth. Its Natural Gas Services segment owns or operates assets in seven states in the continental United States: Arkansas, Colorado, Louisiana, Michigan, Oklahoma, Texas and Wyoming. The assets in these states include the Company’s Eagle Ford system, East Texas system, Southeast Texas system, Michigan system, Northern Louisiana system, its Southern Oklahoma system, Wyoming system, its 75% operating interest in the Piceance system, the Company’s 40% limited liability company interest in the Discovery system located off and onshore in Southern Louisiana and DJ Basin system, including the Lucerne 1 and Lucerne 2 plants. During 2014, the volume throughput on its assets was in excess of 2.5 billion cubic feet per day (Bcf/d), originating from a mix of customers. During 2014, the combined NGL production from its processing facilities was in excess of 150,000 barrels per day (Bbls/d) and was delivered and sold into various NGL takeaway pipelines or transported by truck.
The Company’s Eagle Ford system is a fully integrated midstream business in Fayette, Goliad, Jackson, Jim Wells, Lavaca, Live Oak and Nueces counties in Texas, which includes gathering systems, production from 900,000 acres supported by acreage dedications or throughput commitments under long-term predominantly percent-of-proceeds agreements, cryogenic natural gas processing plants and fractionation facilities. Its Southeast Texas system is a fully integrated midstream business, which includes natural gas pipelines, three natural gas processing plants in Liberty and Jefferson Counties.
The Company’s East Texas system includes one gas processing complex containing four natural gas processing plants, as well as the George Gray and the Crossroads processing plants. Its East Texas system gathers, transports, compresses, treats and processes natural gas and NGLs. Its East Texas facility also fractionates NGLs, which is marketed at nearby petrochemical facilities. The Company’s East Texas system, located near Carthage, Texas, includes a natural gas processing complex that is connected to its gathering system, as well as third party gathering systems. The Company’s Michigan system consists of three natural gas treating plants, a gas gathering system and various residue pipeline interests located in northern Michigan.
The Company’s DJ Basin system consists of three gas processing plants in the Denver-Julesburg Basin, or DJ Basin, in Weld County, Colorado. The Company’s Northern Louisiana system includes its Minden and Ada systems, which gathers natural gas from producers and delivers it for processing to the processing plants. It also includes the Company’s Pelico system, which stores natural gas and transports it to markets. Through Northern Louisiana system, the Company offers producers and customers wellhead-to-market services. Its Northern Louisiana system has market outlets for the natural gas it gathers, including several intrastate and interstate pipelines, industrial end-users and power plants.
The Company’s Piceance system is comprised of a 75% operating interest in Collbran Valley Gas Gathering, LLC (Collbran), and consists of assets in the southern Piceance Basin that gather natural gas at high pressure from over 20,000 producing acres in western Colorado. The Company has interest in Discovery Producer Services LLC (Discovery). The Discovery system is operated by Williams Partners L.P. and offers a range of wellhead-to-market services to both onshore and offshore natural gas producers. These assets are located in the eastern Gulf of Mexico and Lafourche Parish, Louisiana.
The Company’s Southern Oklahoma system is located in the Golden Trend area of McClain, Garvin and Grady counties in southern Oklahoma. The system is adjacent to assets owned by DCP Midstream, LLC. The natural gas gathered by the system is delivered to DCP Midstream, LLC processing plants. The Company’s Wyoming system consists of natural gas gathering pipelines that cover more than 4,000 square miles in the Powder River Basin in Wyoming. The system gathers casing-head gas from oil wells at low pressure and delivers the gas to a third party for processing.
NGL Logistics Segment
The Company’s NGL Logistics Segment owns and operates assets for its NGL Logistics business in the states of Colorado, Kansas, Louisiana, Michigan, Oklahoma and Texas. Its NGL pipelines transport NGLs from natural gas processing plants to fractionation facilities, a petrochemical plant and a third party underground NGL storage facility. Its pipelines provide transportation services to customers on a fee basis. The volumes of NGLs transported on its pipelines are dependent on the level of production of NGLs from processing plants connected to the Company’s NGL pipelines.
The Company’s NGL fractionation facilities in the DJ Basin, in Colorado, and its partially owned facilities in Mont Belvieu, Texas, separate NGLs received from processing plants into their individual components. The fractionation facilities provide services on a fee basis. The Company’s NGL storage facility is located in Marysville, Michigan. Its facility serves regional refining and petrochemical demand. The Company holds interest in the Enterprise fractionator operated by Enterprise. It also holds interest in the Mont Belvieu 1 fractionator operated by ONEOK Partners, both located in Mont Belvieu, Texas. Its DJ Basin NGL fractionators in Colorado are located on DCP Midstream, LLC’s processing plant sites and are operated by DCP Midstream, LLC, which delivers NGLs to the fractionators. Its NGL storage facility is located in Marysville, Michigan and includes ten underground salt caverns with approximately eight million barrels per day (MMBbls) of storage capacity and rail, truck and pipeline connections providing a supply point for refiners, petrochemical plants and wholesale propane distributors in the Sarnia, midwestern and northeastern markets.
Wholesale Propane Logistics Segment
The Company owns or operates assets for its wholesale propane logistics business in the states of Maine, Massachusetts, New York, Pennsylvania, Rhode Island, Vermont and Virginia. Its operations serve the propane and other liquefied petroleum gas markets in the northeastern, mid-Atlantic and upper midwestern states. The Company also provides storage services to its customers for propane and other liquefied petroleum gases.
The Company’s operations include one owned and one leased propane marine terminal, one owned propane pipeline terminal and six owned propane rail terminals, with a combined capacity of approximately 975 MBbls. The Company’s owned marine terminal also has storage capabilities for other liquefied petroleum gases. It owns rail terminals and leases the land on which the terminals are situated under long-term leases. Each of the Company’s rail terminals consists of two to three propane tanks that provide capacity for storage, and two volume racks for loading propane into trucks. The Company’s suppliers of propane include a subsidiary of DCP Midstream, LLC, MarkWest, BP Canada and Petredec Limited. It also obtains supply from the Company’s NGL storage facility in Marysville, Michigan.
DCP Midstream Partners LP
370 17th St Ste 2500
DENVER CO 80202-5604