Copano Increases Presence in Eagle Ford Shale With Pipeline Expansion and New Long Term Contract
HOUSTON, Feb. 9, 2012 /PRNewswire/ — Copano Energy, L.L.C. (NASDAQ: CPNO) announced today that it will extend its wholly-owned 96-mile, 24-inch DK Pipeline in the Eagle Ford Shale play by adding approximately 65 miles of 24-inch pipeline southwest into McMullen County, Texas, which will allow Copano to access significant new Eagle Ford volumes. The DK Pipeline extension is expected to begin service in the first half of 2013 and is projected to cost approximately $120 million. The pipeline extension will follow the same route as Copano’s recently announced condensate pipeline, Double Eagle Pipeline LLC, a joint venture with Magellan Midstream Partners, L.P., in the rich gas window of the Eagle Ford Shale.
The extension of the DK Pipeline is supported by a new long-term agreement with Petrohawk Energy Corporation, a subsidiary of BHP Billiton and a leading operator in the Eagle Ford Shale play. Under the terms of the fee-based agreement, Copano will provide Petrohawk with gathering, processing and NGL handling services for a significant commitment of natural gas volumes from leases in McMullen County, Texas.
“We are pleased that BHP Billiton has selected Copano again as a provider of midstream services for its significant position in the rich gas window of the Eagle Ford Shale,” said R. Bruce Northcutt, President and Chief Executive Officer of Copano Energy. “The southwest extension of our DK Pipeline coupled with the Double Eagle condensate pipeline will allow Copano to offer a full slate of gas, NGL and condensate solutions to our customers in the trend.”
About Copano Energy, L.L.C.
Copano Energy, L.L.C. (NASDAQ: CPNO) is a midstream natural gas company with operations in Texas, Oklahoma, Wyoming and Louisiana. Its assets include approximately 6,700 miles of active natural gas gathering and transmission pipelines, 370 miles of NGL pipelines and 10 natural gas processing plants, with more than 1 billion cubic feet per day of combined processing capacity and 44,000 barrels per day of fractionation capacity. More information is available at http://www.copano.com.
This press release includes “forward-looking statements,” as defined by the Securities and Exchange Commission. Statements that address activities or events that Copano believes will or may occur in the future are forward-looking statements. These statements include, but are not limited to, statements about future producer activity and Copano’s total distributable cash flow and distribution coverage. These statements are based on management’s experience and perception of historical trends, current conditions, expected future developments and other factors management believes are reasonable. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the following risks and uncertainties, many of which are beyond Copano’s control: price volatility and market demand for natural gas and natural gas liquids; Copano’s ability to continue to obtain new sources of natural gas supply and retain its key customers; the impact on volumes and resulting cash flow of technological, economic and other uncertainties inherent in estimating future production, producers’ ability to drill and successfully complete and attach new natural gas supplies and the availability of downstream transportation systems and other facilities for natural gas and NGLs; higher construction costs or project delays due to inflation, limited availability of required resources or the effects of environmental, legal or other uncertainties; general economic conditions; the effects of government regulations and policies; and other financial, operational and legal risks and uncertainties detailed from time to time in Copano’s filings with the Securities and Exchange Commission.
Contacts: Carl Luna, SVP and CFO Copano Energy, L.L.C. 713-621-9547 Jack Lascar / email@example.com Anne Pearson / firstname.lastname@example.org DRG&L / 713-529-6600
SOURCE Copano Energy, L.L.C.