Copano Energy, L.L.C. (NASDAQ: CPNO) announced today plans to add an
additional 400,000 Mcf per day of cryogenic processing capacity at its
Houston Central complex, located in Colorado County, Texas, in response
to continuing producer demand in the liquids rich Eagle Ford Shale play.
The expansion project will bring Copano's total high-efficiency
cryogenic processing capacity at its Houston Central complex to 1.0 Bcf
per day. Anticipated capital spending for the expansion and associated
facilities is estimated to be approximately $190 million, with an
expected inservice date in mid-2014. Copano also announced execution of
a new long-term fee-based gathering and processing agreement with a
major Eagle Ford producer, which combined with previously announced
producer commitments, will support the expansion. Copano has previously
announced plans for an initial 400,000 Mcf per day cryogenic processing
expansion at Houston Central, which is expected to be in service in the
first quarter of 2013.
"This second cryogenic expansion project reaffirms our commitment to
being a leading midstream service provider in the Eagle Ford shale,"
said R. Bruce Northcutt, President and Chief Executive Officer of Copano
Energy. "While we expect to invest capital for this project at a 5-times
multiple or better, our producers and customers will also benefit from
the expansion through enhanced performance and improved recovery of
natural gas liquids."
About Copano Energy, L.L.C.
Copano Energy, L.L.C. (NASDAQ: CPNO) is a midstream natural gas company
with operations in Oklahoma, Texas, Wyoming and Louisiana. For more
information, please visit 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, the
availability of downstream transportation systems and other facilities
for natural gas and NGLs; mechanical failures and other operational
risks affecting the performance of Copano's processing plants and other
facilities; 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.
