DCP Midstream Announces Additional Large Scale Expansion of Sand Hills Natural Gas Liquids Pipeline

DENVER, May 30, 2017 -- DCP Midstream, LP (NYSE:DCP) today announced an additional large scale expansion of the Sand Hills natural gas liquids (NGL) pipeline, with plans to initially spend $105 million towards long-lead equipment and right-of-way. In a phased approach, this expansion is designed to first increase capacity by 85 thousand barrels per day (MBpd) up to approximately 450 MBpd. This initial phase, when completed, is anticipated to include partial looping of the pipeline and the addition of seven new pump stations at an estimated total cost of $500 million. The expected in-service date for this additional expansion project is the second half of 2018.

Additionally, future phased expansion may entail adding a full loop of Sand Hills, which could increase capacity by over 100 MBpd to a minimum of 550 MBpd.

The expansion announced today is in addition to the Sand Hills Pipeline’s existing expansion to 365 MBpd, which is on target to be in service in the fourth quarter of this year. This existing expansion adds three additional pump stations and a lateral to primarily increase Permian capacity. The expansion to 365 MBpd is backed by long-term, third party plant dedications. Additionally, multiple new supply connectors are in progress and will deliver incremental NGL volumes in 2017 and beyond.

“DCP is uniquely situated through its premier integrated logistics and G&P footprint to capture growth out of the Delaware and Permian basins. We continue to high-grade our strategic portfolio to focus on strong return, accretive, fee-based growth projects at lower risk,” said Wouter van Kempen, chairman, president and CEO of DCP Midstream. “The Sand Hills Pipeline has been an incredible success story founded upon being a producer-friendly pipe that offers flexibility and optionality through our multiple delivery points serving the Gulf Coast. With our phased expansion approach, we are able to match capital outlay with supply growth.”

Proceeds from DCP’s recent divestiture of its non-core Douglas, Wyoming natural gas gathering system will be deployed to partially fund the initial phase of this additional strategic expansion, which will provide strong, accretive, fee-based returns at lower risk. The Sand Hills Pipeline is owned two-thirds by DCP, and one-third by Phillips 66 Partners LP (NYSE:PSXP). Capital investments are represented at 100 percent ownership levels.

ABOUT DCP MIDSTREAM, LP

DCP Midstream, LP (NYSE:DCP) is a midstream master limited partnership, with a diversified portfolio of assets, engaged in the business of gathering, compressing, treating, processing, transporting, storing and selling natural gas; and producing, fractionating, transporting, storing and selling NGLs and recovering and selling condensate. DCP owns and operates more than 60 plants and 64,000 miles of natural gas and natural gas liquids pipelines, with operations in 17 states across major producing regions, and leads the midstream segment as one of the largest natural gas liquids producers and marketers and one of the largest natural gas processors in the U.S. Denver, Colorado based DCP is managed by its general partner, DCP Midstream GP, LP, which is managed by its general partner, DCP Midstream GP, LLC, which is 100% owned by DCP Midstream, LLC. DCP Midstream, LLC is a joint venture between Enbridge and Phillips 66. For more information, visit the DCP Midstream, LP website at www.dcpmidstream.com.

CAUTIONARY STATEMENTS

This press release may contain or incorporate by reference forward-looking statements as defined under the federal securities laws regarding DCP Midstream, LP, including projections, estimates, forecasts, plans and objectives. 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 DCP's control. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, DCP's actual results may vary materially from what management anticipated, estimated, projected or expected. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements are set forth in DCP’s filings with the Securities and Exchange Commission. The forward-looking statements contained herein speak as of the date of this announcement. DCP undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.