DCP Midstream has entered into an agreement with Penn
Virginia Resource Partners (PVR) to acquire the Crossroads
processing plant and associated gathering system, for
approximately $63 million.
The Crossroads system, located in Harrison county in East
Texas, includes 8 miles of gas gathering pipe, an 80 million
cubic feet per day cryogenic processing plant, about 20 miles
of NGL pipeline and a 50% ownership in an approximately 11-mile
residue gas pipeline.
This system will allow the DCP to increase critical
midstream services to producers that are expanding their
liquids rich Haynesville shale and Cotton Valley drilling
programs in east Texas, the company said.
"This immediately accretive acquisition provides us with an
opportunity to increase our market position in East Texas and
demonstrates our commitment to provide integrated midstream
services to our customers," said Mark Borer, CEO of DCP.
The addition of the Crossroads system is a synergistic
bolt-on acquisition to our existing East Texas system and will
expand our processing capabilities to support our
DCP said it intends to use borrowings under its bank credit
facility to finance the expected closing of the acquisition on
or about July 2, 2012.