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Bought 33% WI in DCP Southeast Texas joint venture gainingn 675 milles of pipelines, 3 natural-gas-processing plants totaling 350 MMcf/d of processing capacity and natural gas storage assets with 9 Bcf of existing storage capacity.

DCP Midstream Partners LP, Denver, (NYSE: DPM) has closed the acquisition of a 33% ownership interest in the DCP Southeast Texas joint venture from the owner of its general partner, DCP Midstream, for $150 million.

The joint venture is a fully integrated midstream business with assets that include 675 miles of gas pipelines, three natural-gas-processing plants totaling 350 million cubic feet per day of processing capacity and natural gas storage assets with 9 billion cubic feet of existing storage capacity.

The joint venture is executing on organic expansion projects to increase processing capacity by 50 million cubic feet per day in 2011 and storage capacity by 6 billion cubic feet by 2013.

DCP Midstream LP chairman, president and chief executive Mark Borer says, "We are very pleased with this transaction, which provides additional diversification to our asset portfolio, geography and resource exposure. It complements the third party acquisitions and organic growth opportunities we have executed on over the past year, and demonstrates our multi-faceted growth strategy."

DCP Midstream chairman, president and CEO Tom O'Connor says, "The partnership continues to be an important component of DCP Midstream's enterprise growth strategy. Proceeds from this transaction will be redeployed into ongoing capital projects as we continue to expand our presence in liquids rich areas such as the DJ Basin, Permian and Eagle Ford."

The transaction was financed with borrowings from the partnership's revolving credit facility.