DCP Midstream Partners, LP is a Delaware limited partnership formed by DCP Midstream, LLC to own, operate, acquire and develop a diversified portfolio of complementary midstream energy assets. We are engaged in the business of gathering, compressing, treating, processing, transporting, storing and selling natural gas; producing, fractionating, transporting, storing and selling NGLs and condensate; and transporting, storing and selling propane in wholesale markets. Supported by our relationship with DCP Midstream, LLC, and its parents, Spectra Energy and Phillips 66, our geographically diverse assets, with strong market positions, and our mix of fee-based and substantially hedged commodity-based margins, position the Partnership for the long term.
Partnering with DCP Midstream to Grow the DCP Enterprise
We employ a multifaceted strategy of co-investing, acquiring, and building assets to deliver sustainable distribution growth to our unitholders. We have a talented team of operations and commercial managers, diligently maximizing the profitability of our existing assets. Since our initial public offering, we have invested over $1.6 billion in growth capital, with the majority deployed on third party acquisitions and dropdowns.
Our access to capital markets supports DCP Midstream’s execution on escalating growth opportunities while balancing distributions.
Our primary business objectives are to have sustained company profitability, a strong balance sheet and profitable growth thereby increasing our cash distribution per unit over time. We intend to accomplish these objectives by executing the following business strategies:
- Co-investment: maximize opportunities provided by our partnership with DCP Midstream, LLC.
We plan to execute and fund our growth in part through co-investing with DCP Midstream, LLC, which can take numerous forms:
(1) We pursue direct investments or third party acquisitions of assets with characteristics that are suited to our master limited partnership where those assets are part of a larger strategic investment for our partnership and DCP Midstream, LLC.
(2) We pursue organic build projects in which we provide the capital to construct all or part of an asset within DCP Midstream, LLC’s footprint. Size of the capital investment, its cash flow, contract profile and capital availability are key determinants for selection of an organic build project.
(3) We pursue accretive acquisition/dropdown opportunities from DCP Midstream, LLC and through the formation of additional joint ventures with DCP Midstream, LLC. We believe there will continue to be significant opportunities as DCP Midstream, LLC continues to build its infrastructure. Given the significant level of growth opportunities currently in DCP Midstream, LLC’s footprint, we would expect relatively more emphasis on our co-investment objective over the next few years.
Acquire: pursue strategic and accretive third party acquisitions. We pursue strategic and accretive third party acquisition opportunities within the midstream energy industry, both in new and existing lines of business, and geographic areas of operation. We believe there will continue to be acquisition opportunities as energy companies continue to divest their midstream assets.
Build: capitalize on organic expansion opportunities. We continually evaluate economically attractive organic expansion opportunities to construct midstream systems in new or existing operating areas. For example, we believe there are opportunities to expand several of our gas gathering systems to attach increased volumes of natural gas produced in the areas of our operations. We believe there are opportunities to continue to expand our NGL Logistics and Wholesale Propane Logistics businesses.