DCP SOUTHEAST TEXAS HOLDINGS, GP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Years Ended December 31, 2011, 2010 and 2009
engineering. DCP Midstream recorded the accrued liabilities and prepaid expenses for general and
administrative expenses in its financial statements, including liabilities related to payroll, short and long-term
incentive plans, employee retirement and medical plans, paid time off, audit, tax, insurance and other service
fees. Our share of those costs was allocated based on DCP Midstream’s proportionate investment (consisting of
property, plant and equipment, intangibles, and investments in unconsolidated affiliates) compared to our
investment.
DCP Midstream has issued parental guarantees in favor of certain counterparties. A portion of these
parental guarantees relate to assets included in these consolidated financial statements.
We participate in DCP Midstream’s cash management program. As a result, prior to January 1, 2011, we
had no cash balances on the consolidated balance sheets and all of our cash management activity was performed
by DCP Midstream on our behalf, including collection of receivables, payment of payables, and the settlement
of sales and purchases transactions with DCP Midstream, which were recorded as parent advances and are
included in net parent equity on the accompanying consolidated balance sheets.
We currently, and anticipate to continue to, purchase from and sell to DCP Midstream in the ordinary
course of business. DCP Midstream was a significant customer during the years ended December 31, 2011,
2010 and 2009.
ConocoPhillips
We currently, and anticipate to continue to, sell to ConocoPhillips in the ordinary course of business.
ConocoPhillips was a significant customer during the years ended December 31, 2011, 2010 and 2009.
Summary of Transactions with Related Parties and Affiliates
The following table summarizes our transactions with related parties and affiliates:
Year Ended December 31,
2011
2010
2009
(Millions)
DCP Midstream:
Sales of natural gas, NGLs and condensate . . . . . . . . . . . . . . . . . . . . $481.5 $358.4 $216.5
Purchases of natural gas and NGLs . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.4 $ 0.8 $ 0.4
Gains (losses) from commodity derivative activity, net . . . . . . . . . . $ 0.9 $ (0.7) $ (0.1)
General and administrative expense . . . . . . . . . . . . . . . . . . . . . . . . . $ 10.0 $ 12.1 $ 10.8
ConocoPhillips:
Sales of natural gas, NGLs and condensate . . . . . . . . . . . . . . . . . . . . $ 36.6 $ 37.3 $ 25.1
Transportation, processing and other . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ 1.8 $ —
Purchases of natural gas and NGLs . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ 0.1
(Losses) gains on derivative activity, net . . . . . . . . . . . . . . . . . . . . . $ — $ (0.4) $ 0.7
Spectra Energy:
Sales of natural gas, NGLs and condensate . . . . . . . . . . . . . . . . . . . . $ — $ — $ 0.3
Purchases of natural gas and NGLs . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ 0.1
Operating and maintenance expense (a) . . . . . . . . . . . . . . . . . . . . . . $ — $ (0.3) $ 0.2
Other:
Operating and maintenance expense (b) . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ (0.2)
(a) Relates to insurance recoveries received for Hurricane Rita.
(b) Balance for the year ended December 31, 2009 includes hurricane insurance recovery receivables, which
were treated as a reduction to operating expense in the accompanying consolidated statements of
operations.
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