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.
CPNO-IR
