DCP - DCP Midstream acquires bolt-on Permian Basin assets

DCP Midstream (NYSE:DCP) has made a bolt-on acquisition of Permian Basin gathering and processing assets from Woodland Midstream II, a part of EIV Capital. The transaction is valued at $160M and covers the James Lake System, which includes ~250,000 dedicated acres, ~230 miles of gathering pipe and a 120MMcf/d cryogenic processing facility. The deal is set to close in Q3, with DCP funding the transaction through cash on hand and borrowings from existing bank facilities. The acquired assets are also close enough to DCP’s existing assets to explore opportunities for cost synergies. Long-term fee-based contracts with various independent operators will drive cashflows. CEO Wouter van Kempen said: "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. After our record first quarter

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DCP Midstream acquires bolt-on Permian Basin assets