Promptly accretive transaction represents around 5.5 situations EBITDA a number of
Bolt-on acquisition enhances DCP’s Permian gathering footprint
Contains ~230 miles of gathering pipe and a 120MMcf/d cryogenic processing facility, raising DCP’s ability and providing sizeable synergies with our Goldsmith processing facility
Secures around 250,000 committed acres
Cashflows underpinned by primarily payment-dependent, lengthy-phrase contracts with a various group of independent operators and expense quality public corporations
DENVER, June 14, 2022 (World NEWSWIRE) — DCP Midstream, LP (NYSE: DCP) introduced these days that it has entered into a definitive agreement to receive Permian Basin gathering and processing property (“The James Lake System”) from Woodland Midstream II, a portfolio corporation of EIV Capital, in a transaction valued at $160 million, matter to selected customary changes. The James Lake System’s proximity to DCP’s current assets generates the prospect for substantial synergies, minimizing the acquisition numerous about time.
“We are really delighted to announce the agreement to develop our Permian accumulating and processing business enterprise with assets that have connectivity to DCP’s present infrastructure and fit our extensive-time period technique of securing incremental volumes for our downstream property,” said Wouter van Kempen, chairman, president, and CEO. “After our history very first quarter functionality and latest investment decision quality ranking, we take into consideration this an enjoyable following phase in strengthening our working design, building extra value for our stakeholders and driving enhanced reliability for our buyers.”
This transaction is expected to be completed in the 3rd quarter of 2022, matter to customary regulatory approvals. The transaction is expected to be funded employing income on hand and borrowings below DCP’s present lender services.
Holland & Hart LLP acted as legal counsel to DCP during the transaction. Intrepid Associates, LLC is serving as money advisor and McDermott Will & Emery LLP is serving as legal advisor to Woodland Midstream II in link with the transaction.
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 collecting, processing, logistics and promoting property. DCP is just one of the largest purely natural gas liquids producers and entrepreneurs and a person of the premier natural fuel processors in the U.S. The proprietor of DCP’s typical associate is a joint venture concerning Enbridge and Phillips 66. For more information, go to the DCP Midstream, LP internet site at www.dcpmidstream.com.
About EIV Money
Founded in 2009, EIV Capital is a Houston, Texas-centered non-public equity organization specializing in providing development equity to the North American power field. EIV Capital focuses on investments in businesses which generate value as a result of infrastructure, innovation or efficiency. The firm’s management has extensive working experience top and investing in successful corporations throughout the strength price chain. For additional details, stop by www.eivcapital.com
This push launch involves ahead-looking statements as described underneath the federal securities legislation, such as statements about the anticipated consummation of the acquisition described earlier mentioned, the anticipated added benefits, prospects, and outcomes with regard to the acquisition, together with the expected synergies, and other statements that are not historic specifics. Even though management thinks that expectations mirrored in these kinds of forward-hunting statements are fair, no assurance can be supplied that these kinds of anticipations will demonstrate to be suitable. In addition, these statements are subject to sure challenges, uncertainties, and other assumptions that are tough to predict and might be further than the manage of DCP Midstream, LP. If any of these risks or uncertainties materialize, or if fundamental assumptions prove incorrect, the actual success, general performance, or events may fluctuate materially from what was expressed or implied herein. For a checklist and description of dangers and uncertainties, remember to see DCP Midstream, LP’s stories and other filings with the U.S. Securities and Exchange Fee. The statements herein discuss only as of the day of this news release. DCP Midstream, LP undertakes no obligation to publicly update or revise any forward-looking statements, irrespective of whether as a end result of new facts, long run gatherings, or otherwise, besides as expected by applicable securities legal guidelines.