Natural Gas Processing

At the core of our natural gas processing business are 25 processing plants located across Colorado, Louisiana, Mississippi, New Mexico, Texas and Wyoming. Our natural gas processing facilities can be characterized as two distinct types: (i) straddle plants situated on mainline natural gas pipelines owned either by us or by third parties or (ii) field plants that process natural gas from gathering pipelines. We operate the Meeker, Pioneer, Toca, Chaco, North Terrebonne, Calumet, Neptune, Burns Point, Carlsbad and Chaparral plants and all of the Texas facilities.

Natural gas produced at the well-head (especially in association with crude oil) contains varying amounts of NGLs. This rich natural gas in its raw form is usually not acceptable for transportation in the nation’s major natural gas pipeline systems or for commercial use as a fuel. Natural gas processing plants remove the NGLs from the natural gas stream, enabling the natural gas to meet transmission pipeline and commercial quality specifications. In addition, on an energy equivalent basis, NGLs generally have a greater economic value as a raw material for petrochemical and motor gasoline production than their value as components of the natural gas stream. After extraction by the processing plants, we typically transport the mixed NGLs to a centralized facility for fractionation into purity NGL products such as ethane, propane, normal butane, isobutane and natural gasoline. The purity NGL products can then be used in our NGL marketing activities to meet contractual requirements or sold on spot and forward markets.

Our NGL marketing activities utilize a fleet of approximately 350 railcars, the majority of which are leased from third parties.  These railcars are used to deliver feedstocks to our facilities and to distribute NGLs throughout the United States and parts of Canada.

Gas Processing Facility	Company Ownership Interest in Facility	Net Gas Processing Capacity (Bcf/d) (1)	Total Gas Processing Capacity (Bcf/d)	Location (s)
Meeker	100%	1.70	1.70	Colorado
Pioneer	100%	1.35	1.35	Wyoming
Toca	67.9%	0.70	1.10	Louisiana
Chaco	100%	0.65	0.65	New Mexico
North Terrebonne	64.2%	0.73	1.30	Louisiana
Calumet	35.4%	0.57	1.60	Louisiana
Neptune	66.0%	0.43	0.65	Louisiana
Pascagoula	40.0%	0.40	1.50	Mississippi
Yscloskey	13.6%	0.26	1.85	Louisiana
Thompsonville	100%	0.33	0.33	Texas
Shoup	100%	0.29	0.29	Texas
Gilmore	100%	0.25	0.25	Texas
Armstrong	100%	0.25	0.25	Texas
Other (11 facilities) (2)	Various (3)	1.27	2.93	Texas, New Mexico, Louisiana
Total Processing Capacities		9.18	15.75