Colorado natural gas company expands in Permian Basin

DCP Midstream | Epiq Source-to-Pay Software Solutions customers

Denver’s DCP Midstream, LPL announced a $160 million acquisition of Permian Basin gathering and processing assets, a deal that should be finalized later this year.

DCP made the acquisition from Woodland Midstream II, a portfolio company of EIV Capital. The acquisition was of the James Lake System which is close to DCP’s existing assets.

“We are very pleased to announce the agreement to expand our Permian gathering and processing business with assets that have connectivity to DCP’s existing infrastructure and fit our long-term strategy of securing incremental volumes for our downstream assets,” said Wouter van Kempen, chairman, president, and CEO. “After our record first quarter performance and recent investment grade rating, we consider this an exciting next step in strengthening our operating model, creating additional value for our stakeholders and driving improved reliability for our customers.”

This transaction is expected to be completed in the third quarter of 2022, subject to customary regulatory approvals. The transaction is expected to be funded using cash on hand and borrowings under DCP’s existing bank facilities.

Source: DCP Midstream