DCP Midstream Expands Gathering and Processing Business Through Acquisition of Bolt-on Permian Basin Assets

HIGHLIGHTS

• Immediately accretive transaction represents approximately 5.5 times EBITDA multiple
• Bolt-on acquisition enhances DCP’s Permian gathering footprint
• Includes ~230 miles of gathering pipe and a 120MMcf/d cryogenic processing facility, increasing DCP’s capacity and providing significant synergies with our Goldsmith processing facility
• Secures approximately 250,000 dedicated acres
• Cashflows underpinned by primarily fee-based, long-term contracts with a diverse group of independent operators and investment grade public companies

DENVER, June 14, 2022 (GLOBE NEWSWIRE) -- DCP Midstream, LP (NYSE: DCP) announced today that it has entered into a definitive agreement to acquire Permian Basin gathering and processing assets (“The James Lake System”) from Woodland Midstream II, a portfolio company of EIV Capital, in a transaction valued at $160 million, subject to certain customary adjustments. The James Lake System’s proximity to DCP’s existing assets creates the opportunity for significant synergies, reducing the acquisition multiple over time.

"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," said Wouter van Kempen, chairman, president, and CEO. “After our record first quarter performance and recent investment grade rating, we consider this an exciting next step in strengthening our operating model, creating additional value for our stakeholders and driving improved reliability for our customers.”

This transaction is expected to be completed in the third quarter of 2022, subject to customary regulatory approvals. The transaction is expected to be funded using cash on hand and borrowings under DCP’s existing bank facilities.

Advisors:

Holland & Hart LLP acted as legal counsel to DCP during the transaction. Intrepid Partners, LLC is serving as financial advisor and McDermott Will & Emery LLP is serving as legal advisor to Woodland Midstream II in connection with the transaction.

About DCP Midstream, LP

DCP Midstream, LP (NYSE: DCP) is a Fortune 500 midstream master limited partnership headquartered in Denver, Colorado, with a diversified portfolio of gathering, processing, logistics and marketing assets. DCP is one of the largest natural gas liquids producers and marketers and one of the largest natural gas processors in the U.S. The owner of DCP’s general partner is a joint venture between Enbridge and Phillips 66. For more information, visit the DCP Midstream, LP website at .

About EIV Capital

Founded in 2009, EIV Capital is a Houston, Texas-based private equity firm specializing in providing growth equity to the North American energy industry. EIV Capital focuses on investments in businesses which create value through infrastructure, innovation or efficiency. The firm’s management has extensive experience leading and investing in successful companies across the energy value chain. For more information, visit

Forward-Looking Statements

This press release includes forward-looking statements as defined under the federal securities laws, including statements regarding the anticipated consummation of the acquisition described above, the anticipated benefits, opportunities, and results with respect to the acquisition, including the expected synergies, and other statements that are not historical facts. Although management believes that expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. In addition, these statements are subject to certain risks, uncertainties, and other assumptions that are difficult to predict and may be beyond the control of DCP Midstream, LP. If any of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, the actual results, performance, or events may vary materially from what was expressed or implied herein. For a list and description of risks and uncertainties, please see DCP Midstream, LP’s reports and other filings with the U.S. Securities and Exchange Commission. The statements herein speak only as of the date of this news release. DCP Midstream, LP undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable securities laws.

Investor Relations

Mike Fullman

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