- Diligent cost control and careful scheduling are key strategies employed by the company’s Project Development business, which oversees nearly 40 major projects. An example is the Kerisi field development program in Indonesia, which achieved initial oil and natural gas production in December 2007.
2007 Major Accomplishments
- DCP Midstream’s master limited partnership, DCP Midstream Partners, completed its acquisition of natural gas gathering and compression assets in Oklahoma from Anadarko Petroleum Corporation for approximately $180 million.
- DCP Midstream contributed a 25 percent interest in DCP East Texas Holdings, LLC and a 40 percent interest in Discovery Producer Services LLC to DCP Midstream Partners for approximately $270 million.
- DCP Midstream and DCP Midstream Partners acquired Momentum Energy Group Inc. for approximately $635 million to expand into three prominent producing basins: Fort Worth, Piceance and Powder River.
uring 2007 ConocoPhillips saw significant growth in DCP Midstream, LLC, a 50/50 joint venture with Spectra Energy. DCP Midstream is one of the largest U.S. natural gas and natural gas liquids gathering, processing and marketing companies.
Among the year’s achievements, DCP Midstream and DCP Midstream Partners, the company’s master limited partnership, completed more than $800 million in acquisitions. The company also expanded its presence in the Fort Worth, Piceance and Powder River Basins – all prominent developing producing areas.
“We have a solid operating performance base and a strong position for continued growth,” says Thomas O’Connor, DCP’s president, chairman and CEO. “We are pleased with the acquisitions and the potential they bring us.”
ConocoPhillips’ Midstream business also includes an equity interest in Phoenix Park Gas Processors Limited and interests in liquid extraction and fractionation plants in New Mexico, Texas, Louisiana and Kansas.
The ConocoPhillips Midstream segment’s net income for 2007 was $453 million, with ConocoPhillips’ net natural gas liquids extraction totaling 211,000 barrels per day (BD), including 181,000 BD from its interest in DCP Midstream. ConocoPhillips’ share of DCP’s raw natural gas throughput was 2.95 billion cubic feet per day.
