DCP Announces Sale of Gas Supply Resources (GSR) Wholesale Propane Business to NGL Energy Partners LP
January 30, 2019
TULSA, Okla. & DENVER–(BUSINESS WIRE)–NGL Energy Partners LP (NYSE: NGL) (“NGL”) and DCP Midstream, LP (NYSE:
DCP) (“DCP”) announced they have executed a purchase and sale agreement
under which DCP will convey to NGL its wholesale propane business,
generally consisting of seven natural gas liquids terminals in the
Eastern United States. Under the terms of the agreement, NGL will
acquire 100% ownership of five propane rail terminals operated by Gas
Supply Resources, a subsidiary of DCP, and 50% ownership interest in a
sixth propane rail terminal. The agreement also includes an
import/export terminal located in Chesapeake, Virginia, with the
capability to load or unload ships from Handy-sized vessels up to Very
Large Gas Carriers.
“NGL is excited to acquire these well-operated, high-quality assets from
DCP. The propane terminals complement NGL’s existing liquids portfolio
and create additional opportunities for new and existing customers to
supply their business. The Chesapeake asset provides strategic access to
the water for imports and exports. Gas Supply Resources has an excellent
reputation in the Northeast, and we look forward to inviting their
talented employees to join the NGL team,” said Jeff Pinter, Executive
Vice President of Liquids for NGL.
“Gas Supply Resources has been a great asset for DCP, but has no
interconnectivity with our otherwise integrated value chain of midstream
services,” said Wouter van Kempen, chairman, president, and CEO of DCP
Midstream. “This is an outstanding opportunity to streamline our assets
and fund our 2019 strategic capital program.”
The transaction has been approved by appropriate governing bodies of
both companies, but remains subject to satisfaction of specified closing
conditions, including expiration or termination of the applicable
waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of
1976.
About NGL Energy Partners, LP
NGL Energy Partners LP is a Delaware limited partnership. NGL owns and
operates a vertically integrated energy business with four primary
businesses: water solutions, crude oil logistics, NGL logistics and
refined products/renewables. For further information, visit the
Partnership’s website at www.nglenergypartners.com.
About DCP Midstream, LP
DCP Midstream, LP (NYSE: DCP) is a Fortune 500 midstream master limited
partnership headquartered in Denver, Colorado, with a diversified
portfolio of gathering, processing, logistics and marketing assets. DCP
is one of the largest natural gas liquids producers and marketers and
one of the largest natural gas processors in the U.S. The owner of DCP’s
general partner is a joint venture between Enbridge and Phillips 66. For
more information, visit the DCP Midstream, LP website at www.dcpmidstream.com.
Forward-Looking Statements
Certain matters contained in this Press Release include “forward-looking
statements” within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. We make these forward-looking statements in reliance
on the safe harbor protections provided under the Private Securities
Litigation Reform Act of 1995.
All statements, other than statements of historical fact, included in
this Press Release may constitute forward-looking statements. Although
we believe that the expectations reflected in these forward-looking
statements are reasonable, we cannot assure you that these expectations
will prove to be correct. These forward-looking statements are subject
to certain known and unknown risks and uncertainties, as well as
assumptions that could cause actual results to differ materially from
those reflected in these forward-looking statements. Factors that might
cause actual results to differ include the risk factors discussed from
time to time in each of our documents and reports filed with the SEC.
Readers are cautioned not to place undue reliance on any forward-looking
statements contained in this Press Release, which reflect management’s
opinions only as of the date hereof. Except as required by law, we
undertake no obligation to revise or publicly release the results of any
revision to any forward-looking statements.
Contacts
NGL Energy Partners Investor Relations:
Trey Karlovich,
918-481-1119
Executive Vice President and Chief Financial Officer
Trey.Karlovich@nglep.com
Linda Bridges, 918-481-1119
Senior Vice President – Finance and
Treasurer
Linda.Bridges@nglep.com
NGL Energy Partners Marketing Information:
Jeff Pinter,
918-481-1119
Executive Vice President – NGL Liquids
Jeff.Pinter@nglep.com
DCP Midstream Investor Relations:
Irene Lofland
303-605-1822
ilofland@dcpmidstream.com
DCP Midstream Media:
Sarah Sandberg
303-605-1626
scsandberg@dcpmidstream.com