DCP Midstream Expands Permian Basin Footprint with $160 Million Bolt-on Acquisition

Denver-based DCP Midstream recently agreed to acquire the James Lake System from Woodland Midstream II, which increases DCP’s gathering capacity in the Permian Basin.

Hart Energy Staff
DCP Midstream Expands Permian Basin Footprint with $160 million Bolt-on Acquisition

The James Lake System, located within three miles of DCP’s Goldsmith processing facility in the Permian Basin, includes about 230 miles of gathering pipe and a 120 MMcf/d cryogenic processing facility. (Source: Hart Energy)

DCP Midstream LP recently agreed to acquire Woodland Midstream gathering and processing assets in the Permian Basin in a bolt-on transaction valued at $160 million.

“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,” Wouter van Kempen, chairman, president and CEO of DCP Midstream, commented in a company release.

As part of a definitive agreement announced June 14, DCP Midstream will acquire the James Lake System from Woodland Midstream II, a portfolio company of EIV Capital. DCP expects to fund the bolt-on acquisition using cash on hand and borrowings under the company’s existing bank facilities.

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