By Joshua Jamerson

DCP Midstream Partners LP announced Wednesday it will combine with DCP Midstream LLC, a joint venture between Phillips 66 and Spectra Energy Corp., in a bid to simplify the corporate structure of the entities.

DCP Midstream Partners LP said it will change its name to DCP Midstream LP on Jan. 23, and its ticker symbol on the New York Stock Exchange will change from DPM to DCP.

Under terms of the transaction, the joint venture will merge its assets with DCP Midstream Partners, plus $424 million of cash, in exchange for approximately 31.1 million DPM units, worth roughly $1.125 billion and the company assuming $3.15 billion of the joint venture's debt. Phillips 66 and Spectra Energy will retain their 50/50 joint ownership of the venture, which owns the incentive distribution rights and 38% of DCP Midstream Partners's outstanding general and limited partner units.

The entities said the transaction will form a large natural gas liquids and gas processor with an enterprise value of $11 billion.

DCP Midstream Partners also said it would expand its Sand Hills NGL pipeline to its full 365,000 barrels per day of capacity by the end of 2017, an increase of 30%. The company will also build a new natural-gas processing plant in the DJ Basin, its 10th plant in the basin, which is projected to be operational by the end of 2018, and it also has plans to add another plant by 2019.

Write to Joshua Jamerson at joshua.jamerson@wsj.com

(END) Dow Jones Newswires

January 04, 2017 07:24 ET (12:24 GMT)

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