Natural Gas Processing Plants & Related NGL Marketing

At the core of our natural gas processing business are 22 processing facilities located in Colorado, Louisiana, Mississippi, New Mexico, Texas and Wyoming.

Natural gas produced at the well-head (especially in association with crude oil) contains varying amounts of natural gas liquids ("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, the mixed NGLs are typically transported 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 850 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 U.S. and parts of Canada. We have rail loading and unloading capabilities at certain of our terminal facilities in Arizona, Kansas, Louisiana, Minnesota, Mississippi, New York, North Carolina and Texas. These facilities service both our rail shipments and those of our customers. Our NGL marketing activities also utilize a fleet of approximately 90 tractor-trailer tank trucks that are used to transport LPG for us and on behalf of third parties. We lease and operate the majority of these trucks and trailers.

VIEW SYSTEM MAP

 

Asset Descriptions

 

Gas Processing Facility	Location(s)	Company Ownership Interest in Facility	Net Gas Processing Capacity(Bcf/d(1))	Total Gas Processing Capacity (Bcf/d)
Meeker	Colorado	100%	1.80	1.80
Pioneer	Wyoming	100%	1.40	1.40
Yoakum	Texas	100%	1.05	1.05
Pascagoula	Mississippi	75.0% (2)	0.75	1.00
Chaco	New Mexico	100%	0.60	0.60
Orla	Texas	100%	0.90	0.90
Neptune	Louisiana	66.0% (3)	0.43	0.65
Sea Robin	Louisiana	54.1% (3)	0.35	0.65
Thompsonville	Texas	100%	0.33	0.33
Carthage (4)	Texas	100%	0.32	0.32
Mentone	Texas	100%	0.30	0.30
Shoup	Texas	100%	0.28	0.28
Armstrong	Texas	100%	0.25	0.25
Gilmore	Texas	100%	0.25	0.25
San Martin	Texas	100%	0.20	0.20
South Eddy	New Mexico	100%	0.20	0.20
Waha	Texas	100%	0.15	0.15
Sonora	Texas	100%	0.12	0.12
Venice	Louisiana	13.1% (5)	0.10	0.75
Indian Springs	Texas	75.0% (3)	0.09	0.12
Chaparral	New Mexico	100%	0.05	0.05
Fairway	Texas	100%	0.01	0.01
Total Processing Capacities			9.92	11.37

1. The approximate net gas processing capacity does not necessarily correspond to our ownership interest in each facility. It is based on a variety of factors such as the level of volumes an owner processes at the facility and its ownership interest in the facility.
2. We own a 75.0% consolidated interest in this facility through our majority owned subsidiary.
3. We proportionately consolidate our undivided interest in these operating assets.
4. The Carthage facility consists of two plants: our legacy Panola gas plant and our recently completed Bulldog gas plant.
5. Our ownership in this facility is held indirectly through our equity method investment.

For more information on the assets, please refer to the most recent Form 10-K or Quarterly Reports on Form 10-Q and other SEC filings.