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Released February 15, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Less than a month after it was formed, DCP Midstream LP (NYSE:DCP) (Houston, Texas) already is the largest natural gas liquids (NGL) producer and gas processor in the U.S. and is expanding its foothold in a key location. Despite a rough pricing environment and weak results from the natural gas services segment, DCP has continued to map out a series of major growth projects for the next two years. Industrial Info is tracking $1.5 billion in active projects involving DCP.
On January 23, DCP Midstream LLC, a 50:50 joint venture between Phillips 66 (NYSE:PSX) (Bartlesville, Oklahoma) and Spectra Energy Corporation (NYSE:SE) (Houston), and DCP Midstream Partners LP (NYSE:DPM) (Houston) officially tied the knot to become DCP Midstream LP, with an enterprise value of about $11 billion. Capital expenditures and equity investments totaled $56 million in 2016, while maintenance capital expenditures totaled $10 million.
Net income was reported to be $312 million for the full year, a 36.84% increase from 2015, despite revenues of $1.5 billion, which was a 21.13% decline. Lower costs from the merger were cited as a major factor in the results. Nonetheless, adjusted earnings in the natural gas services segment declined due to expired commodity hedges, lower volumes on two midstream systems, and missing revenue from an asset sale. The company's logistics segment incurred higher maintenance costs for the Southern Hills and Sand Hills systems.
But DCP was able to point to growth in its Denver-Julesburg (DJ) Basin system, where it is building out its current capacity. In its quarterly earnings presentation, the company reaffirmed an announcement earlier this year that it would build its tenth plant in the DJ basin, the 200 million-cubic-foot-per-day Train 3 at Mewbourn Natural Gas Processing Plant in Gilcrest, by the end of 2018, and is proposing another 200 million-cubic-foot-per-day cryogenic natural gas processing plant in Platteville, Colorado. The Mewbourn addition is expected to bring that facility's total capacity to 435 million cubic feet per day. For more details, including estimated investment values and contact information, see Industrial Info's project reports for the Mewbourn and Platteville projects.
Colorado is not the only state where DCP is planning significant expansions. In Kansas, the $20 million expansion of National Helium Gas Liquids Processing Plant's gathering field near Kismet is under way, which involves the construction of 15 or more production well connections and gathering pipelines, as well as the replacement of aging pipe sections; in Oklahoma, DCP has proposed the $10 million expansion of the Carney Natural Gas Processing Plant's gathering field near Carney, which involves the construction of five to 10 production wells and similar overhauls. For more information, see Industrial Info's project reports on the Kansas and Oklahoma projects.
"We delivered on our 2016 commitments and finished the year strong," said Wouter van Kempen, the chairman, chief executive officer and president of DCP, in a quarterly earnings press release. "We are excited about our recent transaction and the growth opportunities that it provides, paving the way to sustainable distribution growth."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
On January 23, DCP Midstream LLC, a 50:50 joint venture between Phillips 66 (NYSE:PSX) (Bartlesville, Oklahoma) and Spectra Energy Corporation (NYSE:SE) (Houston), and DCP Midstream Partners LP (NYSE:DPM) (Houston) officially tied the knot to become DCP Midstream LP, with an enterprise value of about $11 billion. Capital expenditures and equity investments totaled $56 million in 2016, while maintenance capital expenditures totaled $10 million.
Net income was reported to be $312 million for the full year, a 36.84% increase from 2015, despite revenues of $1.5 billion, which was a 21.13% decline. Lower costs from the merger were cited as a major factor in the results. Nonetheless, adjusted earnings in the natural gas services segment declined due to expired commodity hedges, lower volumes on two midstream systems, and missing revenue from an asset sale. The company's logistics segment incurred higher maintenance costs for the Southern Hills and Sand Hills systems.
But DCP was able to point to growth in its Denver-Julesburg (DJ) Basin system, where it is building out its current capacity. In its quarterly earnings presentation, the company reaffirmed an announcement earlier this year that it would build its tenth plant in the DJ basin, the 200 million-cubic-foot-per-day Train 3 at Mewbourn Natural Gas Processing Plant in Gilcrest, by the end of 2018, and is proposing another 200 million-cubic-foot-per-day cryogenic natural gas processing plant in Platteville, Colorado. The Mewbourn addition is expected to bring that facility's total capacity to 435 million cubic feet per day. For more details, including estimated investment values and contact information, see Industrial Info's project reports for the Mewbourn and Platteville projects.
Colorado is not the only state where DCP is planning significant expansions. In Kansas, the $20 million expansion of National Helium Gas Liquids Processing Plant's gathering field near Kismet is under way, which involves the construction of 15 or more production well connections and gathering pipelines, as well as the replacement of aging pipe sections; in Oklahoma, DCP has proposed the $10 million expansion of the Carney Natural Gas Processing Plant's gathering field near Carney, which involves the construction of five to 10 production wells and similar overhauls. For more information, see Industrial Info's project reports on the Kansas and Oklahoma projects.
"We delivered on our 2016 commitments and finished the year strong," said Wouter van Kempen, the chairman, chief executive officer and president of DCP, in a quarterly earnings press release. "We are excited about our recent transaction and the growth opportunities that it provides, paving the way to sustainable distribution growth."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
