Copano Energy, L.L.C. (Nasdaq: CPNO) today announced several recent
developments related to its Texas operating segment.
New Agreements with Pioneer, Petrohawk and other Eagle Ford Producers
Copano has entered into new, long-term agreements with several Eagle
Ford Shale producers, including, among others, Abraxas Petroleum
Corporation (Nasdaq: AXAS), Paloma Resources, Petrohawk Energy
Corporation (NYSE: HK), Pioneer Natural Resources (NYSE: PXD), Reliance
Eagleford Upstream Holding LP, Newpek, LLC and Riley Exploration. Copano
has also expanded its recently announced contract with GeoSouthern
Resources to include a larger acreage dedication. Under the terms of
these agreements, which are primarily fee-based, Copano will provide
gathering, compression, processing and fractionation services for these
producers in portions of DeWitt, Karnes and Live Oak Counties, Texas.
Copano has secured firm producer volume commitments for aggregate
production of up to 120,000 MMBtu per day and additional commitments for
production from approximately 135,000 gross acres in the Eagle Ford
Shale as a result of the new agreements.
Extension of DK Pipeline
Copano also announced today that it will extend its recently completed
24-inch DK Pipeline in DeWitt and Karnes Counties, Texas by adding 58
miles of 24-inch pipeline through Lavaca County to directly connect the
DK Pipeline system into its Houston Central Complex. The pipeline
extension will increase the capacity of the DK Pipeline system from
225,000 MMBtu per day to 350,000 MMBtu per day and is expected to begin
service in the fourth quarter of 2011. The DK Pipeline expansion project
is expected to cost approximately $100 million.
"Our expansion in the Eagle Ford Shale continues to deliver results, and
we are pleased to have reached additional agreements that will generate
long-term, stable cash flows for Copano," said R. Bruce Northcutt,
President and Chief Executive Officer of Copano Energy. "With our
significant increase in capacity to serve production from the Eagle Ford
- through the DK Pipeline extension and several other recently announced
initiatives - we are strengthening our presence in the South Texas
region. We are confident that we are taking the right steps to create
additional value for all Copano unitholders by enhancing our existing
infrastructure and offering competitive midstream solutions for Eagle
Ford Shale producers."
Eagle Ford Shale Strategy Discussion and Fourth Quarter 2010 Earnings
Call
In connection with Copano's progress in the Eagle Ford Shale, the
Company will review its growth strategy on its upcoming fourth quarter
2010 earnings call, which is scheduled for Friday, February 25, 10:00
a.m. Eastern Time (9:00 a.m. Central Time). The call may be accessed
live via telephone by dialing (480) 629-9722 and asking for the Copano
Energy call at least 10 minutes prior to the start time, or via live
webcast through the Investor Relations page of Copano's website (http://www.copanoenergy.com/).
In addition, Copano will post presentation materials for the growth
strategy discussion on the Investor Relations page of its website.
About Copano
Houston-based Copano Energy, L.L.C. (NASDAQ: CPNO) is a midstream
natural gas company with operations in Oklahoma, Texas, Wyoming and
Louisiana. Its assets include approximately 6,400 miles of active
natural gas gathering and transmission pipelines, 250 miles of NGL
pipelines and eight natural gas processing plants, with over one Bcf per
day of combined processing capacity and 22,000 barrels per day of
fractionation capacity. For more information please visit http://www.copanoenergy.com/.
This press release includes "forward-looking statements," as defined by
the Securities and Exchange Commission. Statements regarding activities
or events that Copano believes will or may occur in the future are
forward-looking statements. These statements include discussion of
anticipated benefits from announced capital projects, 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, the
availability of downstream transportation systems and other facilities
for natural gas and NGLs, and 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.
