DCP Midstream Partners to buy assets of Philips-Spectra JV
(Reuters) -- DCP Midstream Partners LP said it had acquired the assets of a JV between Phillips 66 and Spectra Energy Corp, to create the largest natural gas liquids producer and gas processor in the United States.
As part of the deal, the joint venture, DCP Midstream LLC, will pay DCP Midstream Partners (DPM) $424 million in cash and get 31.1 million DPM units.
DPM will also assume $3.15 billion of DCP Midstream LLC's debt.
The deal will simplify the company's corporate structure, Wouter van Kempen, chief executive of DCP Midstream and DPM, said.
The combined company, which has an enterprise value of $11 billion, will be renamed DCP Midstream LP and will trade with the ticker symbol "DCP" on the New York Stock Exchange.
DPM said it would build a new 200 MMcf/d processing plant to increase its capacity in Colorado's Denver-Julesburg basin by 50 percent. The plant is expected to come online in late 2018.
DPM is managed by its general partner, DCP Midstream GP LP, which in turn is managed by an entity owned by DCP Midstream LLC.
Reporting by Swetha Gopinath and Arathy S Nair in Bengaluru; Editing by Shounak Dasgupta
- ExxonMobil halts 1-Bft3d blue hydrogen project in Texas
- Aramco and Yokogawa commission multiple autonomous control AI agents at Fadhili gas plant
- Ukraine will resume gas imports via Transbalkan route in November
- Mitsubishi to inject $260 MM into Brunei LNG project
- Freeport LNG (U.S.) on track to take in more natgas on Thursday after unit outage
Comments