DCP Midstream is a master limited partnership formed by DCP Midstream LLC. The latter, is owned by Spectra Energy (SE) and Phillips 66 (PSX). DCP Midstream LLC is the biggest producer of natural gas liquids and the largest natural gas processor in the United States. The company alone is responsible for gathering and processing 12% of the total U.S. natural gas supply.
Moreover, last year, DCP Midstream's parent became the third biggest operator of natural gas liquids, or NGLs, pipelines.
On Friday, DCP Midstream announced that it will offer $500 million of units in the near future. The news caused a 1.76% drop in its units, which closed at $56.23 on Friday.
However, overall, DCP Midstream's units have risen by 12.9% this year, easily outperforming its peers as represented in the Alerian MLP ETF (AMLP), which is up 4.6% for the year to date.
From 2010, DCP Midstream has grown its asset base and NGLs production by more than three times. Consequently, DCP Midstream has been able to grow its distribution for 14 consecutive quarters. For the current year, it has targeted 7% growth.
The company will likely continue increasing its cash distributions as it eyes organic growth on the back of three projects that have come online and two projects that will begin commercial operations before mid-2015.