P66 has been touting their new gas plant prospects, but their new Iron Mesa gas plant is mostly replacing volumes from DCP's disastrous James Lake gas plant purchase and shifting volumes from DCP's awful Goldsmith gas plant. Imagine spending the money on a new plant to replace James lake that DCP purchased just before the P66 buyout. DCP spent money stupidly across the board. They invested so much growth money in the DJ basin and ignored the looming environmental regulations. They did nothing for compliance leading up to the P66 purchase. Now all of the short sighted DCP leadership is running P66 midstream. They are all touting midstream growth and leveraging G&P but the real stable money comes from historic pipeline and terminal. How can G&P add to the baseline we want when all of our competitors have over capacity everywhere we operate? What if this money was invested into growing the central refining efficiencies?
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And led by the team that ran DCP into the ground. Upstream players still don’t want to deal with them.
Hearing there is almost no chance that we achieve the external commitment without additional volume as recontracting is placing pressure on margins. We once again bought at a peak.
Wow