Profile: DCP Midstream LP (DCP.N)
16 Aug 2019
DCP Midstream, LP, formerly DCP Midstream Partners, LP, incorporated on August 5, 2005, is a producer and marketer of natural gas liquids (NGLs) in the United States. The Company is engaged in the business of gathering, compressing, treating, processing, transporting, storing and selling natural gas; producing, fractionating, transporting, storing and selling NGLs, and recovering and selling condensate, and transporting, storing and selling propane in wholesale markets. The Company operates through three segments: Natural Gas Services, NGL Logistics and Wholesale Propane Logistics. The Company sells NGLs to a range of customers ranging from large, multi-national petrochemical and refining companies to small regional retail propane distributors. As of December 31, 2016, the Company operated in 17 states in the United States. Its gathering systems and processing plants are connected to various interstate and intrastate natural gas pipelines.
Natural Gas Services
The Company's Natural Gas Services segment consists of various assets and ownership interests that provide a range of wellhead to market services for its producer customers. As of December 31, 2016, its Natural Gas Services segment owned or operated assets in seven states in the continental United States: Arkansas, Colorado, Louisiana, Michigan, Oklahoma, Texas and Wyoming. The assets in these states include Eagle Ford system, East Texas system, Denver-Julesburg (DJ) Basin system, Discovery system, Southeast Texas system, Michigan system, Southern Oklahoma system, Wyoming system and Piceance system.
The Company's Eagle Ford system is an integrated midstream business in Fayette, Goliad, Jackson, Jim Wells, Lavaca, Live Oak and Nueces counties in Texas. Its 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, which gathers, transports, compresses, treats and processes natural gas and NGLs. As of December 31, 2016, its DJ Basin system consisted of three gas processing plants in the DJ Basin, in Weld County, Colorado. Its DJ Basin system also connects to DCP Midstream, LLC plants and gathering systems, and delivers NGLs to the Wattenberg Pipeline, Front Range Pipeline LLC (Front Range Pipeline) and Texas Express Pipeline LLC (Texas Express pipeline) in its NGL Logistics segment.
The Company's Discovery system offers a range of wellhead-to-market services to both onshore and offshore natural gas producers. The assets are primarily located in the eastern Gulf of Mexico and Lafourche Parish, Louisiana. The Eagle Ford system has natural gas residue outlets, including interstate and intrastate pipelines. The system delivers NGLs to the Gulf Coast petrochemical markets and to Mont Belvieu through its DCP Sand Hills Pipeline, LLC (Sand Hills pipeline), and other third-party NGL pipelines. Its Eagle plant has delivery options into the Trunkline and Transco gas pipeline systems. The East Texas system delivers gas primarily through its Carthage Hub, which delivers residue gas to multiple interstate and intrastate pipelines. The DJ Basin system delivers to the Conway hub in Bushton, Kansas through its Wattenberg pipeline and to the Mont Belvieu hub in Mont Belvieu, Texas through the Front Range and Texas Express pipelines in its NGL Logistics segment. The Discovery assets have access to downstream pipelines and markets. The NGLs are fractionated, then delivered downstream to third-party purchasers consisting of a mix of local petrochemical facilities and wholesale distribution companies, as well as pipelines that transport product to the storage and distribution center near Napoleonville, Louisiana or other similar product hubs.
The Company owns and operates assets for its NGL Logistics business in the states of Colorado, Kansas, Louisiana, Michigan, Oklahoma and Texas, which are NGL producing regions. 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 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. Its NGL storage facility is located in Marysville, Michigan with access to the Marcellus, Utica and Canadian NGLs. The Sand Hills pipeline provides takeaway service from plants in the Permian and the Eagle Ford basins to fractionation facilities along the Texas Gulf Coast and at the Mont Belvieu, Texas market hub. DCP Southern Hills Pipeline, LLC (Southern Hills pipeline) provides takeaway service from the Midcontinent to fractionation facilities at the Mont Belvieu, Texas market hub.
The Texas Express pipeline provides access to other third-party facilities. The Wattenberg interstate NGL pipeline originates in the DJ Basin in Colorado and terminates near the Conway hub in Bushton, Kansas. The Front Range pipeline connects to the O'Connor plant, Lucerne 1 plant and the Lucerne 2 plant. The Black Lake interstate NGL pipeline originates in northwestern Louisiana and terminates in Mont Belvieu, Texas. Black Lake receives NGLs from gas processing plants in northwestern Louisiana and southeastern Texas, including multiple third-party plants, the Sand Hills pipeline and a third party storage facility. As of December 31, 2016, Panola Pipeline Company, LLC (Panola pipeline), which was an approximately 180-mile NGL pipeline system extending from points near Carthage, Texas to Mont Belvieu, Texas. As of December 31, 2016, its NGL storage facility located in Marysville, Michigan included 11 underground salt caverns with approximately eight millions of barrels (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
The Company owns or operates assets for its wholesale propane logistics business in the states of Maine, Massachusetts, New York, Pennsylvania, Vermont and Virginia. The Company's operations serve the propane and other liquefied petroleum gas markets in the Northeastern, mid-Atlantic and upper Midwestern states. It also provides storage services to its customers for propane and other liquefied petroleum gases. As of December 31, 2016, its operations included one owned marine terminal, one owned propane pipeline terminal and six owned propane rail terminals, with a combined capacity of approximately 550 thousand barrels (MBbls), and access to various open access pipeline terminals. Its owned marine terminal also has storage capabilities for other liquefied petroleum gases. The Company owns its rail terminals and leases the land on which the terminals are situated under long-term leases, except for the York terminal where it owns the land. Each of its rail terminals consist of 2 to 3 propane tanks that provide additional capacity for storage, and two high volume racks for loading propane into trucks.
DCP Midstream LP
370 17th St Ste 2500
DENVER CO 80202-5604