approximately 1% and limited partner interest of 1%. The general partner has the right, but not the obligation,
to contribute a proportionate amount of capital to us to maintain its current general partner interest. The general
partner’s interest may be reduced if we issue additional units in the future and our general partner does not
contribute a proportionate amount of capital to us to maintain its current general partner interest.
The incentive distribution rights held by our general partner entitle it to receive an increasing share of
Available Cash as pre-defined distribution targets have been achieved. Currently, our distribution to our general
partner related to its incentive distribution rights is at the highest level. Our general partner’s incentive
distribution rights were not reduced as a result of our recent common unit offerings, and will not be reduced if
we issue additional units in the future and the general partner does not contribute a proportionate amount of
capital to us to maintain its current general partner interest. Please read the
Distributions of Available Cash
after the Subordination Period
section in Note 13 of the Notes to Consolidated Financial Statements in Item 8.
“Financial Statements and Supplementary Data” for more details about the distribution targets and their impact
on the general partner’s incentive distribution rights.
On January 26, 2012, the board of directors of DCP Midstream GP, LLC declared a quarterly distribution
of $0.65 per unit, which was paid on February 14, 2012, to unitholders of record on February 7, 2012.
Equity Compensation Plans
The information relating to our equity compensation plans required by Item 5 is incorporated by reference
to such information as set forth in “Item 12. Security Ownership of Certain Beneficial Owners and Management
and Related Unitholder Matters” contained herein.
Item 6.
Selected Financial Data
The following table shows our selected financial data for the periods and as of the dates indicated, which is
derived from the consolidated financial statements. These consolidated financial statements include our
accounts, which have been combined with the historical assets, liabilities and operations of our initial 25%
limited liability company interest in DCP East Texas Holdings, LLC, or East Texas, our 40% limited liability
company interest in Discovery Producer Services, LLC, or Discovery, and a non-trading derivative instrument,
or the Swap, which DCP Midstream, LLC entered into in March 2007, which we acquired from DCP
Midstream, LLC in July 2007, our additional 25.1% limited liability interest in East Texas, which we acquired
from DCP Midstream, LLC in April 2009, and our acquisition of a 33.33% interest in DCP Southeast Texas
Holdings, GP, or Southeast Texas, which we acquired from DCP Midstream, LLC in January 2011. Prior to our
acquisition of an additional 25.1% limited liability company interest in East Texas we owned a 25.0% limited
liability company interest in East Texas, which was accounted for under the equity method of accounting.
Subsequent to our acquisition of an additional 25.1% limited liability company interest in April 2009, we
owned a 50.1% limited liability company interest in East Texas and account for East Texas as a consolidated
subsidiary. These transactions were among entities under common control and represented a change in
reporting entity; accordingly, our financial information includes the historical results of entities and interests
contributed to us by DCP Midstream, LLC for all periods presented. The information contained herein should
be read together with, and is qualified in its entirety by reference to, the consolidated financial statements and
the accompanying notes included elsewhere in this Form 10-K.
Our operating results incorporate a number of significant estimates and uncertainties. Such matters could
cause the data included herein to not be indicative of our future financial conditions or results of operations. A
discussion on our critical accounting estimates is included in “Management’s Discussion and Analysis of
Financial Condition and Results of Operations.”
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