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DCP Midstream (DCP)

DCP Midstream, LP is a Fortune 500 midstream master limited partnership headquartered in Denver, Colorado, with a diversified portfolio of gathering, processing, logistics and marketing assets. DCP is one of the largest natural gas liquids producers and marketers and one of the largest natural gas processors in the U.S. The owner of DCP's general partner is a joint venture between Enbridge and Phillips 66.

Company profile

Ticker
DCP, DCP-PC, DCP-PB
Exchange
CEO
Wouter van Kempen
Employees
Incorporated
Location
Fiscal year end
Industry (SIC)
Former names
DCP Midstream Partners, LP
SEC CIK
Subsidiaries
Centana Intrastate Pipeline, LLC • Cimarron River Pipeline, LLC • Collbran Valley Gas Gathering, LLC • DCP Assets Holding GP, LLC • DCP Assets Holding, LP • DCP Black Lake Holdings, LP • DCP Chesapeake LLC • DCP Cheyenne Connector, LLC • DCP Dauphin Island, LLC • DCP East Texas Gathering, LLC ...
IRS number
30567133

DCP stock data

Analyst ratings and price targets

Last 3 months

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

3 Aug 22
1 Oct 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Mar 20 Dec 19
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
23 Aug 22 Clifford Todd Denton Common Units representing limited partner interests Sell Dispose S No No 39.2287 2,750 107.88K 2,750
4 Aug 22 Fred J Fowler Common Units Grant Acquire A No No 0 3,800 0 61,700
13F holders Current Prev Q Change
Total holders 145 141 +2.8%
Opened positions 18 16 +12.5%
Closed positions 14 17 -17.6%
Increased positions 34 39 -12.8%
Reduced positions 46 40 +15.0%
13F shares Current Prev Q Change
Total value 3.82B 3.22B +18.6%
Total shares 189.23M 186.55M +1.4%
Total puts 234K 264.9K -11.7%
Total calls 660.3K 1.43M -53.8%
Total put/call ratio 0.4 0.2 +91.3%
Largest owners Shares Value Change
DCP DCP Midstream 118.36M $929.13M 0.0%
Alps Advisors 13.2M $390.59M -3.4%
Tortoise Capital Advisors, L.L.C. 9.17M $271.36M -1.7%
BX Blackstone 8.13M $240.34M -7.0%
GS Goldman Sachs 5.06M $149.67M -0.6%
JPM JPMorgan Chase & Co. 3.13M $92.64M +3.3%
Clearbridge Advisors 2.29M $67.81M -20.8%
RR Advisors 2.09M $61.68M -7.6%
Mirae Asset Global Investments 2.06M $60.82M -2.5%
IVZ Invesco 2.04M $60.32M +34.8%
Largest transactions Shares Bought/sold Change
Energy Income Partners 1.48M +1.48M NEW
BCS Barclays 1.62M +1.15M +246.0%
BX Blackstone 8.13M -614.14K -7.0%
Clearbridge Advisors 2.29M -601.3K -20.8%
IVZ Invesco 2.04M +526.79K +34.8%
Alps Advisors 13.2M -469.86K -3.4%
Natixis 675.2K +456.9K +209.3%
Cushing Asset Management 771.02K +365.63K +90.2%
CIBC Private Wealth 92.48K -320.56K -77.6%
UBS UBS Group AG - Registered Shares 1.61M +306.67K +23.5%

Financial report summary

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Risks
  • Our cash flow is affected by natural gas, NGL and crude oil prices.
  • Market conditions, including commodity prices, may impact our earnings, financial condition and cash flows.
  • The amount of natural gas we gather, compress, treat, process, transport, store and sell, or the NGLs we produce, fractionate, transport, store and sell, may be reduced if the pipelines, storage and fractionation facilities to which we deliver the natural gas or NGLs are capacity constrained and cannot, or will not, accept the natural gas or NGLs or we may be required to find alternative markets and arrangements for our natural gas and NGLs.
  • Our hedging activities and the application of fair value measurements may have a material adverse effect on our earnings, profitability, cash flows, liquidity and financial condition.
  • We could incur losses due to impairment in the carrying value of our long-lived assets.
  • Volumes of natural gas dedicated to our systems in the future may be less than we anticipate.
  • We depend on certain natural gas producer customers for a significant portion of our supply of natural gas and NGLs.
  • Because of the natural decline in production from existing wells, our success depends on our ability to obtain new sources of supplies of natural gas and NGLs.
  • Third party pipelines and other facilities interconnected to our natural gas and NGL pipelines and facilities may become unavailable to transport, process or produce natural gas and NGLs.
  • We have a holding company structure in which our subsidiaries conduct our operations and own our operating assets.
  • We may incur significant costs and liabilities resulting from implementing and administering pipeline and asset integrity programs and related repairs.
  • We are exposed to the credit risks of our producer customers and counterparties, and any material nonpayment or nonperformance by our producer customers or counterparties could reduce our ability to make distributions to our unitholders.
  • We have partial ownership interests in various joint ventures, which could adversely affect our ability to operate and control these entities. In addition, we may be unable to control the amount of cash we will receive from the operation of these entities and we could be required to contribute significant cash to fund our share of their operations, which could adversely affect our ability to distribute cash to our unitholders.
  • Our business involves many hazards and operational risks, some of which may not be fully covered by insurance.
  • If we do not make acquisitions on economically acceptable terms, our future growth could be limited.
  • Acquisitions may not be beneficial to us.
  • Federal executive, legislative, and regulatory initiatives relating to oil and gas operations could adversely affect our operations and those of our third-party customers.
  • State agency rulemakings in New Mexico could increase our operational costs, and potentially impact new oil and gas development activity by our producer customers.
  • State and local legislative and regulatory initiatives relating to oil and gas operations could adversely affect our third-party customers’ production and, therefore, adversely impact our midstream operations.
  • Laws and corresponding rulemakings in Colorado could have a material adverse impact on new oil and gas development in the state and could reduce the demand for our services in the state.
  • We may incur significant costs and liabilities in the future resulting from a failure to comply with existing or new environmental regulations or an accidental release of hazardous substances or hydrocarbons into the environment.
  • A change in the jurisdictional characterization of some of our assets by federal, state or local regulatory agencies or a change in policy by those agencies may result in increased regulation of our assets.
  • The interstate tariff rates of certain of our pipelines are subject to review and possible adjustment by federal regulators.
  • The transportation rates for our NGL pipelines that provide interstate transportation services, our interstate natural gas pipelines, and our intrastate pipelines that provide interstate services under Section 311 of the NGPA could be adversely impacted by FERC’s revised income tax allowance policy for partnership pipelines and the federal law reducing the corporate income tax rate.
  • Recently proposed or finalized rules imposing more stringent requirements on the oil and gas industry could cause our customers and us to incur increased capital expenditures and operating costs as well as reduce the demand for our services.
  • We may incur significant costs in the future associated with proposed climate change regulation and legislation.
  • Increased regulation of hydraulic fracturing could result in reductions, delays or increased costs in drilling and completing new oil and natural gas wells, which could adversely impact our revenues by decreasing the volumes of natural gas and natural gas liquids that we gather, process and transport.
  • Our increasing dependence on digital technology puts us at risk for a cyber incident that could result in information theft, data corruption, operational disruption or financial loss.
  • Our business could be negatively impacted by security threats, including cybersecurity threats, terrorist attacks, the threat of terrorist attacks and related disruptions.
  • The outstanding senior notes and junior subordinated notes, or notes, are unsecured obligations of our operating subsidiary, DCP Midstream Operating, LP, or DCP Operating, and are not guaranteed by any of our subsidiaries. As a result, our notes are effectively junior to DCP Operating’s existing and future secured debt and to all debt and other liabilities of its subsidiaries.
  • Our significant indebtedness and the restrictions in our debt agreements may adversely affect our future financial and operating flexibility.
  • Conflicts of interest may exist between our individual unitholders and DCP Midstream, LLC, the owner of our general partner, which has sole responsibility for conducting our business and managing our operations.
  • Our Partnership Agreement restricts the remedies available to holders of our units for actions taken by our general partner that might otherwise constitute breaches of fiduciary duty.
  • Our units may experience price volatility.
  • Even if our unitholders are dissatisfied, they may be unable to remove our general partner without its consent.
  • We are prohibited from paying distributions on our common units if distributions on our Preferred Units are in arrears.
  • Our general partner including its affiliates may sell units in the public or private markets, which could reduce the market price of our outstanding common units.
  • Our Preferred Units are subordinated to our existing and future debt obligations, and your interests could be diluted by the issuance of additional units, including additional Preferred Units, and by other transactions.
  • We distribute all of our available cash to our common unitholders and are not required to accumulate cash for the purpose of meeting our future obligations to holders of the Preferred Units, which may limit the cash available to make distributions on the Preferred Units.
  • Changes in tax laws could adversely affect our performance.
  • Our unitholders may be required to pay taxes on income from us even if the unitholders do not receive any cash distributions from us.
  • Certain actions that we may take, such as issuing additional units, may increase the federal income tax liability of unitholders.
  • Tax gain or loss on disposition of common units could be more or less than expected.
  • Our unitholders may be subject to limitation on their ability to deduct interest expense incurred by us.
  • We treat each purchaser of our common units as having the same tax benefits without regard to the actual common units purchased. The IRS may challenge this treatment, which could adversely affect the value of the common units.
  • We have adopted certain valuation methodologies that may result in a shift of income, gain, loss and deduction between the unitholders. The IRS may challenge this treatment, which could adversely affect the value of the units.
  • Treatment of distributions on our Preferred Units as guaranteed payments for the use of capital creates a different tax treatment for the holders of Preferred Units than the holders of our common units.
  • Our ability to manage and grow our business effectively could be adversely affected if we or DCP Midstream, LLC and its subsidiaries fail to attract and retain key management personnel and skilled employees.
  • Volatility in the capital markets may adversely impact our liquidity.
Management Discussion
  • Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
  • We are a Delaware limited partnership formed by DCP Midstream, LLC to own, operate, acquire and develop a diversified portfolio of complementary midstream energy assets. Our operations are organized into two reportable segments: (i) Logistics and Marketing and (ii) Gathering and Processing. Our Logistics and Marketing segment includes transporting, trading, marketing and storing natural gas and NGLs, and fractionating NGLs. Our Gathering and Processing segment consists of gathering, compressing, treating, and processing natural gas, producing and fractionating NGLs, and recovering condensate.
  • We anticipate our business will continue to be affected by the following key trends. Our expectations are based on assumptions made by us and information currently available to us. To the extent our underlying assumptions about, or interpretations of, available information prove to be incorrect, our actual results may vary materially from our expected results.

Content analysis

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Legalese
Litigous
Readability
H.S. sophomore Avg
New words: chain, Consent, Decree, deposit, face, implement, inflationary, labor, Lake, LDAR, membership, Mewbourn, percent, persistent, recoverable, uncommitted, undergo, West, Woodland
Removed: equivalent, larger, LIBOR, pandemic, resolving