DCP Midstream Continues to Extend Its Value Chain by Securing Option for Ownership in Expansion of Sweeny Hub Fractionators

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DENVER, June 13, 2018 (GLOBE NEWSWIRE) -- Today, DCP Midstream, LP (NYSE:DCP) announced that it plans to further extend its value chain by securing an option to acquire up to a 30 percent ownership interest in two, 150,000 bpd natural gas liquids (NGL) fractionators to be constructed within Phillips 66’s Sweeny Hub in Old Ocean, Texas.  DCP’s option is exercisable at the in-service date of the fractionators, which is expected to be in late 2020, with a capital investment of approximately $400 million. Additionally, DCP has committed to supply agreements for Y-grade NGL feedstock to the fractionators.

“This strategic growth option represents another important step as we significantly increase DCP’s vertical integration to better meet our customers’ needs, while driving fee-based earnings growth,” said Wouter van Kempen, president, chairman, and CEO of DCP Midstream. “As we continue to strengthen our logistics and marketing portfolio, this project provides critical fractionation services to optimize our Sand Hills and Southern Hills pipeline expansions, while highlighting our disciplined approach to capital allocation.”

Last month, DCP announced that the Southern Hills NGL pipeline will connect the DJ Basin to Mont Belvieu, Sweeny, and other Gulf Coast market centers via the White Cliffs pipeline. The Sweeny Hub ensures adequate fractionation capacity for growing NGL production while providing a noteworthy market alternative to Mont Belvieu.

“The option to partner with Phillips 66 in the new fractionators is an important component of our larger, multi-year growth strategy, as we extend our footprint to link customers to the growing petrochemical markets and export facilities in the Gulf Coast region,” said van Kempen. “From the wellheads of the DJ Basin, SCOOP, STACK, and Permian, to our fractionators, DCP is a reliable partner for our customers throughout the full value chain.”

Additional details regarding this project can be found on DCP Midstream’s website at .

INVESTOR RELATIONS: Irene Lofland
Phone: 303-605-1822
MEDIA RELATIONS: Sarah Sandberg
Phone: 303-605-1626

More news and information about DCP Midstream LP

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Globe Newswire: 14:00 GMT Wednesday 13th June 2018

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