Natural gas gatherer and processor, DCP Midstream LLC, the
general partner of
DCP Midstream Partners, LP
), announced that it would continue to focus on expanding its
presence in the southern and mid-continental shale formations.
Accordingly, the company would spend approximately $7 billion
during the 2011-15 period to boost its natural gas and natural
gas liquids (NGL) production. Of the allotted sum, DCP Midstream
has invested a little more than $4 billion to date, leaving
almost $3 billion for the remaining period till 2015-end.
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DCP Midstream LLC leads the midstream segment as the
second-largest natural gas gatherer and processor, the largest
natural gas liquids producer and one of the largest marketers in
North America. The company, which operates in 18 states across
the major producing regions, is an equally owned joint venture
DCP Midstream Partners operates through three business segments:
Natural Gas Services, NGL Logistics and Wholesale Propane
Logistics. During 2012, the partnership expanded its Natural Gas
Services and NGL Logistics segments through approximately $1
billion in dropdowns from DCP Midstream; a third party
acquisition; and organic expansion opportunities.
However 2012 was a challenging year for the partnership from a
commodity price perspective. This was partially mitigated through
a multi-year hedging program, as well as volumes of throughput
and sales of natural gas and NGLs.
Going forward, the Zacks Consensus Estimates for the first
quarter and full year 2013 for the partnership are pegged at 63
cents per unit and $2.12 per unit, respectively.
DCP Midstream Partners units currently retain a Zacks Rank #3,
which is equivalent to a short-term Hold rating. In the near
term, other pipeline companies like
) with a Zacks Rank #1 (Strong Buy) offer value and are worth