S&P: DCP Midstream unchanged

Standard & Poor's said news that DCP Midstream LLC's will acquire the Seaway Products Pipeline Co., from ConocoPhillips for a total investment of between $750 million and $850 million will not affect the ratings or outlook.

The pipeline, which the company will rename the Southern Hills Pipeline, will have a target capacity of close to 150,000 barrels per day and the company expects it could go into service as early as mid-2013, S&P said.

DCP said it plans to operate Southern Hills as a common carrier pipeline.

The asset purchase and subsequent expansion will not harm DCP's financial metrics and its debt-to-EBITDA ratio is expected to remain in the 2.5x to 3x range, the agency said.

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