DCP Midstream Partners LP (NYSE: DPM) completed its previously announced dropdown acquisition of the remaining interest in DCP Southeast Texas Holdings GP from its general partner, DCP Midstream LLC for $240 million.
The partnership previously owned 33% of the fully integrated system, which includes 675 miles of natural gas gathering and transportation pipelines, three natural gas processing plants with total processing capacity of 400 million cubic feet per day, natural gas storage assets with storage capacity of 9 billion cubic feet, access to interstate and intrastate gas markets, and NGL market deliveries directly to ExxonMobil and to Mont Belvieu via the partnership’s Black Lake NGL pipeline.
The transaction was financed through a portion of the net proceeds from the partnership’s recent 10-year senior notes offering and the issuance of 1,000,417 DPM common units to the general partner.
"This transaction will provide immediate cash flows to support continued distribution growth," said Mark Borer, president and chief executive of DCP Midstream Partners. "It is another example of how we are co-investing and effectively partnering with our general partner. The completion of this transaction provides a solid start toward meeting our 2012 co-investment objectives."
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