Page 27 - DCP AR2011 Dev

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NGL Logistics Segment
General
We operate our NGL Logistics business in the states of Louisiana, Texas, Colorado, Kansas and Michigan.
Our NGL pipelines transport NGLs from natural gas processing plants to fractionation facilities, a
petrochemical plant and a third party underground NGL storage facility. In aggregate, our NGL transportation
business has 114 MBbls/d of capacity and in 2011, had average throughput of approximately 62 MBbls/d. Our
pipelines provide transportation services to customers on a fee basis. Therefore, the results of operations for this
business are generally dependent upon the volume of product transported and the level of fees charged to
customers. The volumes of NGLs transported on our pipelines are dependent on the level of production of
NGLs from processing plants connected to our NGL pipelines. When natural gas prices are high relative to
NGL prices, it is less profitable to recover NGLs from natural gas because of the higher value of natural gas
compared to the value of NGLs. As a result, we have experienced periods in the past, and will likely experience
periods in the future, when higher relative natural gas prices reduce the volume of NGLs produced at plants
connected to our NGL pipelines.
Our NGL fractionation facilities in the Denver-Julesburg Basin in Colorado, or DJ Basin, separate NGLs
received from processing plants into their individual component parts. The DJ Basin NGL Fractionators provide
services on a fee basis. Therefore, the results of operations for this business are generally dependent upon the
volume of NGLs fractionated and the level of fees charged to customers.
Our NGL storage facility, located in Marysville, Michigan with strategic access to Canadian NGLs, has
approximately 7 MMBbls of propane and butane storage and was operating near capacity in 2011. Our facility
serves regional refining and petrochemical demand, and helps to balance the seasonality of propane distribution
in the midwestern and northeastern United States and in Sarnia, Canada. We provide services to customers
primarily on a fee basis. Therefore, the results of operations for this business are generally dependent upon the
volume of product injected, stored and withdrawn, and the level of fees charged to customers.
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