Company Overview

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 gather, process, transport and market natural gas and transport and market natural gas liquids (NGLs), and we are a leading wholesale distributor of propane. Supported by our relationship with DCP Midstream and its parents, Spectra Energy and ConocoPhillips, we intend to acquire and construct additional assets and we have a management team dedicated to executing our growth strategies.

Business Strategies

Our primary business objective is to increase our cash distribution per unit over time through these business strategies:

Optimize: maximize profitability of existing assets.  We intend to optimize the profitability of our existing assets by adding volumes to enhance utilization, improving operating efficiencies, and capturing marketing opportunities when available. Our natural gas assets and NGL pipelines have excess capacity, which allows us to connect new supplies of natural gas and NGLs at minimal incremental cost. Our wholesale propane logistics business has diversified supply options that allow us to capture the lowest cost supply to lock in our margin, while providing reliable deliveries to our customers.  

Build: capitalize on organic expansion opportunities.  We continually evaluate economically attractive organic expansion opportunities to construct new midstream assets in new operating areas. Recent examples of our organic growth projects are the Wilbreeze NGL pipeline in south Texas, the Midland propane pipeline terminal near Pittsburgh, PA, and the Collbran plant expansion in western CO.

Acquire: pursue strategic and accretive acquisitions.  We plan to pursue strategic and accretive acquisition opportunities within the midstream energy industry, both in new and existing lines of business and geographic areas of operation. Recent acquisitions include:

• Our wholesale propane logistics business, Gas Supply Resources, from DCP Midstream in November 2006.
• Our purchase of the Lindsay gas gathering assets from Anadarko in May 2007.
• Our purchase of ownership interests in DCP East Texas Holdings, LLC and Discovery Producer Services, LLC from DCP Midstream in July 2007.
• Our purchase of a 70% operating interest in the Collbran Gas Gathering System joint venture and 100% interest in the Douglas Gas Gathering System from Momentum Energy Group in August 2007, in a transaction in conjunction with DCP Midstream.

We believe there will continue to be significant acquisition opportunities as large energy companies continue to divest of their midstream assets. We intend to pursue acquisition opportunities both independently and jointly with DCP Midstream and its parents, Spectra Energy and ConocoPhillips, and we may also acquire assets directly from them, which will provide us with a broader array of growth opportunities than those available to many of our competitors.