DUKE ENERGY FIELD SERVICES, LLC

DUKE ENERGY FIELD SERVICES, LLC

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Company Overview
Duke Energy Field Services, LLC is a private company engaged in the exploration and production of raw natural gas and the delivery of its components to end-use markets. The company has its registered office located in Denver, United States. It was incorporated in the year 1999.
The company operates in the two principal segments of the midstream natural gas industry: natural gas gathering, compression, treating, processing, transportation, trading and marketing and storage (Natural Gas Segment), and natural gas liquids (NGL) fractionation, transportation, marketing and trading (NGLs Segment). It gathers raw natural gas through systems located in seven natural gas producing regions: Permian Basin, Mid-Continent, East Texas-Austin Chalk-North Louisiana, Onshore Gulf of Mexico, Rocky Mountains, Offshore Gulf of Mexico, and Western Canada.
The company’s principal competitors are Dynergy, Sid Richardson, Conocophilips, Western Gas, Marathon, and Chevrontexaco.
Duke Energy Field Services, LLC is globally and domestically owned by Duke Energy Corporation, a publicly quoted energy company.
Business Summary
Duke Energy Field Services, LLC is a midstream natural gas industry engaged in the exploration and production of raw natural gas and the delivery of its components to end-use markets. The Company operates in the two principal segments of the midstream natural gas industry: natural gas gathering, compression, treating, processing, transportation, trading and marketing and storage (Natural Gas Segment), and natural gas liquids (NGL) fractionation, transportation, marketing and trading (NGLs Segment). It gathers raw natural gas through systems located in seven natural gas producing regions: Permian Basin, Mid-Continent, East Texas-Austin Chalk-North Louisiana, Onshore Gulf of Mexico, Rocky Mountains, Offshore Gulf of Mexico and Western Canada.
Description and history
Duke Energy Field Services, LLC, incorporated in 1999, is a midstream natural gas industry engaged in the exploration and production of raw natural gas and the delivery of its components to end-use markets. The Company operates in the two principal segments of the midstream natural gas industry: natural gas gathering, compression, treating, processing, transportation, trading and marketing and storage (Natural Gas Segment), and natural gas liquids (NGL) fractionation, transportation, marketing and trading (NGLs Segment). It gathers raw natural gas through systems located in seven natural gas producing regions: Permian Basin, Mid-Continent, East Texas-Austin Chalk-North Louisiana, Onshore Gulf of Mexico, Rocky Mountains, Offshore Gulf of Mexico and Western Canada.

Natural Gas Gathering, Processing, Transportation, Marketing and Storage

The Company’s raw natural gas gathering and processing operations are located in 10 states in the United States and two provinces in Western Canada. It provides services in the North American natural gas and oil producing regions: Permian Basin, Mid-Continent, East Texas-Austin Chalk-North Louisiana, Onshore Gulf of Mexico, Rocky Mountains, Offshore Gulf of Mexico and Western Canada. Gathering systems are operated at design pressures that maximize total throughput from all connected wells. On gathering systems where it is economically feasible, the Company operates at a relatively low pressure.

Natural gas processing operations involve the extraction of NGLs from raw natural gas and the fractionation of NGLs into their individual components: ethane, propane, butanes and natural gasoline. At four of the Company’s Mid-Continent facilities the element helium is isolated from the raw gas stream and sold to industrial gas companies. It also removes off-quality crude oil, nitrogen, hydrogen sulfide, carbon dioxide and brine from the raw natural gas stream.

The Company is also involved in the purchase and sale of residue gas, directly or through its wholly owned gas marketing company and its affiliates. Gas marketing efforts involve supplying the residue gas demands of end user customers that are attached to Company pipeline systems, supplying the gas processing requirements associated with its keep-whole processing agreements and selling gas into downstream pipelines. The gas asset based trading and marketing activities are supported by the Company’s ownership of the Spindletop storage facility and intrastate pipelines.

Natural Gas Liquids Transportation, Fractionation, Marketing and Trading

The Company markets its NGLs and provides marketing services to third party NGL producers and sales customers in NGL production and market centers in the United States. In 2003, the Company marketed and traded approximately 575,000 barrels per day of NGLs.

NGL services include plant tailgate purchases, transportation, fractionation, flexible pricing options, price risk management and product-in-kind agreements. NGL operations are located in close proximity to Company gathering and processing assets in each of the regions in which it operates, other than Western Canada.

In 2001, the Company acquired five propane rail terminals and constructed one in the northeastern United States. Marketing propane from these rail terminals along with volume from TEPPCO’s Providence, Rhode Island import facility, accounts for approximately 27,000 barrels per day of wholesale business. The Company possesses an asset base of NGL fractionators and pipelines that are used to provide value-added services to refining, chemical, industrial, retail and wholesale propane-marketing customers.

The Company’s principal competitors are Dynegy, Sid Richardson, ConocoPhillips, Western Gas, BP, El Paso, Marathon and ChevronTexaco.

Business Line
Engaged in the exploration and production of raw natural gas and the delivery of its components to end-use markets
Subsidiary
DCP MIDSTREAM MARKETING, LLC
Advisor
DELOITTE & TOUCHE LLP
IPO date

US SIC Code
4922
Company Address
Suite 900
370, 17th Street
City province or state postal code
80202, DENVER, CO
Phone: +1 303 595 3331
Fax: +1 303 595 0480
Country address: UNITED STATES OF AMERICA
Website url: www.duke-energy.com