Aug. 09–DCP Midstream second quarter earnings
DCP Midstream, one of the largest oil and gas midstream services providers in the U.S., provides transportation, processing, storage and marketing of oil and gas products in 17 states. Company officials celebrated a strong second quarter in a conference call Wednesday morning.
According to the company’s report, DCP earned a net income of $61 million in the second quarter and an adjusted EBITDA of $270 million.
For more information, go to http://www.dcpmidstream.com.
DCP Midstream officials are optimistic after a strong second quarter, earning a net income of $61 million and upping capacity in key areas.
In a Wednesday morning conference call discussing the company’s second quarter results, executives rejoiced about the early completion of a natural gas processing plant, as well as record production volumes.
DCP is one of the largest oil and gas midstream services providers in the U.S., providing transportation, processing, storage and marketing of oil and gas products. It owns 10 gas processing plants in Weld County, including the Mewbourn 3 plant near Platteville. The plant was completed at the start of this month, ahead of schedule. Wouter van Kempen, president, chairman and CEO of DCP, said the plant was completed with more than 1 million injury-free hours of labor, reflecting the company’s commitment to safety.
“The DJ continues to be one of the best basins in the country, where we saw 15 percent volume growth in the last year,” DCP Group Vice President and Chief Financial Officer Sean O’Brien said. “And this trend will continue with the newly announced Mewbourn 3 plant.”
Even with the excitement of the Mewbourn plant, which will increase production capacities in the Denver-Julesburg Basin, van Kempen said it’s yesterday’s news. Construction already is underway on DCP’s O’Conner 2 plant, also in Weld, which is expected to be operating by the second quarter of 2019. With a 12th plant to come online in 2020 in Weld, officials expect to increase capacity in the DJ Basin to 2.3 billion cubic feet of natural gas per day — more than double the current capacity.
As a company with operations in 17 states and a focus on diverse assets, DCP also is working with SemGroup on a Southern Hills natural gas liquids pipeline extension to add natural gas liquid takeaway capacity to the DJ Basin. With an expected in-service date of the fourth quarter of 2019, the pipeline extension will transport natural gas liquids from the DJ Basin to Cushing, Okla.
Responding to a question about Initiative 97, which would increase oil and gas setbacks to 2,500 feet from protected structures and broaden the definition of protected structures, van Kempen was confident voters would reject the initiative, as they have in two prior elections.
“The oil and gas industry here in Colorado is absolutely a cornerstone of our state’s economy,” he said. “It’s not supported by either candidate running for governor.”
Turning to Initiative 108, van Kempen said the record number of signatures turned in for the initiative show voters want stronger protections for property rights. Such an initiative would provide protections to producers from municipal governments or governments at other levels, he said.
“We’ve always been very proactive mitigating risks for DCP and for our unit holders,” van Kempen said.
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