This article was originally published by Seeking Alpha on August 27, 2014
Summary: DCP
Midstream Partners is backed by a joint venture of Spectra Energy and Phillips
66. DCP Midstream Partners' latest quarterly results came in well below
analysts’ estimates. However, there are several factors at work that will
continue to support DCP Midstream Partners' growth in the coming years.
DCP Midstream
Partners (NYSE:DPM) is a nine-year-old master limited partnership formed by DCP
Midstream LLC and operates mainly in Midcontinent, Eagle Ford, DJ Basin and the
Permian Basin. The partnership comes with an enviable track record of
increasing its distributions for 15 consecutive quarters, and it might continue
going this way.
Who is DCP
Midstream?
DCP Midstream
LLC is a 50-50 joint venture between Spectra Energy (NYSE:SE) and Phillips 66 (NYSE:PSX).
With processing volumes of 8.5 million BTU of gas per day and NGL production of
450,000 barrels per day, DCP Midstream LLC is the biggest natural gas processor
and the leading producer of natural gas liquids in the U.S. The company owns
20.6% limited partner interest and 2.1% general partner interest in the MLP.
DCP Midstream
Partners, on the other hand, operates in three segments: natural gas services
in which the company provides various services such as gathering, processing
and transportation of natural gas and fractionating NGLs, NGL logistics and
wholesale propane logistics segments.
The natural
gas services segment forms the backbone of the partnership's operations. In the
previous quarter, DCP Midstream Partners generated more than 90% of its
revenues from natural gas services, nearly 7% from … read full article at
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