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DCP Midstream Partners
Since the outset of the Partnership, our strategy has never wavered.
Our mission to deliver unitholder value has been constant.
Our performance in delivering on our commitments over time has enabled us to deliver
our unitholders top quartile total shareholder return versus midstream MLPs over
our six- year history. Since our IPO in December 2005, we have provided total return of
247 percent to our unitholders, which compares quite favorably to both the Alerian MLP
Index at 140 percent and the S&P 500 Index at 13 percent. In 2011, we continued to
outperform, with total unitholder return of 35 percent, exceeding the Alerian at 14 percent
as well as the S&P 500 at 2 percent.
Underpinning our unitholder return again this year was the delivery on our business
plan commitments.
Strategic Execution
In addition to meeting our fnancial goals, we have continued to diligently pursue and
gain momentum on our multi-faceted growth strategy, with an emphasis on co-investment
opportunities provided by our partnership with DCP Midstream.
Since the fourth quarter of 2010, we have announced $700 million of co-investment
opportunities with DCP Midstream including our third party acquisition of the DJ Basin
NGL fractionators, completion of the Wattenberg NGL pipeline expansion project,
commencement of construction of a 200 million cubic feet per day natural gas processing
plant in the Eagle Ford shale, dropdown of the remaining 49.9 percent interest in the
East Texas joint venture from DCP Midstream and the recent announcement of our
dropdown of the remaining 66.7 percent interest in the Southeast Texas joint venture
from DCP Midstream.
In addition to co-investment, we continue to capture growth opportunities in our footprint.
In January 2012, we announced the Keathley Canyon Connector expansion for the Discovery
natural gas gathering pipeline in the deepwater Gulf of Mexico.
We successfully executed our acquisition integration efforts for the DJ Basin fractionators
as well as for the Marysville NGL storage facility, the Chesapeake wholesale propane terminal
and the Black Lake NGL pipeline.
Financial Positioning and Capital Markets Execution
Since our IPO, our seasoned management team – supported by the strong sponsorship
of our general partner DCP Midstream and its shareholders, ConocoPhillips and Spectra
Energy – have steered with resilience through high and low economic and commodity cycles.
This consistency and diligence delivered benefts once again as we obtained an
investment grade rating from Moody’s and achieved our goal of obtaining investment grade
credit ratings from all three rating agencies by mid-2012.
1Q/06 2Q/06 3Q/06 4Q/06
1Q/08 2Q/08 3Q/08 4Q/08
1Q/07 2Q/07 3Q/07 4Q/07
1Q/09 1Q/09 2Q/09 3Q/09 4Q/09
1Q/11 1Q/11 2Q/11 3Q/11 4Q/11
1Q/10 1Q/10 2Q/10 3Q/10 4Q/10
15
clicks
0
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
(dollars per unit)
Quarterly Distributions Since IPO
Letter to Unitholders
Announced over
$700 million of
co-investment
opportunities with
DCP Midstream