FIRST QUARTER HIGHLIGHTS                                                             Three Months                                                              Ended                                                            March 31,                                                         2009      2008                                                           (Unaudited)                                                        (Millions, except                                                         per unit amounts)   Net income (loss) attributable to partners            $22.1     $(6.5)   Net income (loss) per unit                            $0.67    $(0.36)   Adjusted EBITDA                                       $39.4     $36.8   Adjusted net income attributable to partners          $21.9     $22.1   Adjusted net income per unit                          $0.66     $0.77   Distributable cash flow                               $27.6     $31.9   

Increased adjusted EBITDA of $39.4 million for the three months ended March 31, 2009, as compared to $36.8 million for the same period in 2008, reflects strong results from our wholesale propane logistics segment and the addition of our Michigan acquisition, partially offset by the impact from operational downtime at our Discovery, Wyoming and East Texas assets.

Adjusted EBITDA, adjusted net income and adjusted net income per unit, which are non-generally accepted accounting principles ("non-GAAP") financial measures, eliminate the impact of non-cash mark-to-market gains and losses which arise from valuing certain of the Partnership's derivative transactions. Each are explained in greater detail under "Non-GAAP Financial Information" below and are reconciled to their most comparable GAAP financial measures, in "Reconciliation of Non-GAAP Measures" below.

DISTRIBUTION AND DISTRIBUTABLE CASH FLOW

On April 28, 2009, the Partnership announced a quarterly distribution of $0.60 per limited partner unit. Our distributable cash flow for the three months ended March 31, 2009, of $27.6 million provided a 1.4 times distribution coverage ratio. Solid results were achieved despite operational disruptions and higher maintenance capital associated with the pipeline integrity and system enhancement work at our Wyoming gathering system.

Distributable cash flow, which is a non-GAAP financial measure, is explained in greater detail under "Non-GAAP Financial Information" below and is reconciled from net income or loss and from net cash provided by or used in operating activities, its most comparable GAAP financial measures, in "Reconciliation of Non-GAAP Measures" below. Non-cash gains or losses associated with the mark-to-market accounting treatment of our commodity derivative instruments do not affect our distributable cash flow.

CEO PERSPECTIVE

"Our solid quarterly results highlight the strength and diversity of our business model," said Mark Borer, president and CEO of the Partnership. "Strong performance of our wholesale propane business was a key driver of our 1.4x distribution coverage ratio. We are successfully delivering on the business plan actions we outlined in December, including the April acquisition of the 25.1 percent interest in the East Texas joint venture from DCP Midstream. While we are still operating in a challenging economic environment, we are obviously pleased with our first quarter results."

ASSETS RETURNED TO FULL OPERATION

During March, the final repairs to Discovery's offshore gathering system which was damaged during Hurricane Ike and the third and final phase of pipeline integrity and upgrades to our Wyoming gathering system were completed. We also returned our East Texas assets to normal operation following the February fire caused by a third party underground pipeline rupture occurring just outside of our property line. The processing complex resumed partial operations after approximately two weeks and both the processing complex and residue delivery system known as the Carthage Hub returned to full operation after approximately four weeks.

OPERATING RESULTS BY BUSINESS SEGMENT

Natural Gas Services -- Adjusted segment gross margin increased $2.1 million to $30.6 million for the three months ended March 31, 2009, from $28.5 million for the same period in 2008. The increase reflects the addition of our Michigan acquisition and volume growth in the Piceance Basin, partially offset by operational downtime at our Wyoming gathering system and somewhat lower gas throughput volumes in North Louisiana.

Segment operating and maintenance expense decreased $1.5 million to $6.2 million for the three months ended March 31, 2009, from $7.7 million for the same period in 2008. Expenses include the addition of our Michigan acquisition, which were more than offset by our cost reduction efforts.

Equity earnings representing our 25 percent interest in the East Texas joint venture and 40 percent interest in the Discovery system was a loss of $2.6 million for the three months ended March 31, 2009, as compared to earnings of $16.8 million for the same period in 2008. Results reflect the impact of the hurricanes at our Discovery system and the third party caused pipeline rupture and fire near our East Texas facilities. In the first quarter of 2008, results for Discovery and East Texas reflect a much stronger commodity price and processing environment. Hedge settlements related to our commodity derivatives on our equity investments are included in adjusted segment gross margin.

Wholesale Propane Logistics -- Adjusted segment gross margin increased by $19.7 million to $25.6 million for the three months ended March 31, 2009, as compared to adjusted segment gross margin of $5.9 million for the same period in 2008. Results reflect a 9 percent increase in volumes driven by an increase in spot sales. There was also a substantial increase in unit margins, approximately $6 million of which was attributable to the sale of inventory that was written down at the end of the fourth quarter of 2008.

NGL Logistics -- Segment gross margin was $1.3 million for the three months ended March 31, 2009, as compared to segment gross margin of $1.9 million for the same period in 2008. Results reflect lower throughput volumes due primarily to ethane rejection at certain connected processing plants early in the quarter. Those plants have since resumed ethane extraction.

Segment gross margin and adjusted segment gross margin, which are non-GAAP financial measures, are explained in greater detail under "Non-GAAP Financial Information" below and are reconciled from segment net (loss) income, their most comparable GAAP financial measure, in "Reconciliation of Non-GAAP Measures" below.

CORPORATE AND OTHER

General and administrative expense, depreciation and amortization expense, and net interest expense for the three months ended March 31, 2009, as compared to the same period in 2008, reflect the addition of the Michigan acquisition.

New accounting rules (SFAS No. 160 and EITF 07-4) have changed the format of the income statement, balance sheet, and the way we calculate earnings per unit. For simplicity, "net income (loss) attributable to partners" is equivalent to what was previously labeled "net income (loss)". Our prior year earnings per unit has also been restated to account for the new rules.

COMMODITY DERIVATIVE ACTIVITY

We utilize mark-to-market accounting treatment for our commodity derivative instruments. Mark-to-market accounting rules require companies to record currently in earnings the difference between their contracted future derivative settlement prices and the forward prices of the underlying commodities at the end of the accounting period. Revaluing our commodity derivative instruments based on futures pricing at the end of the period creates an asset or liability and associated non-cash gain or loss. Realized gains or losses from cash settlement of the derivative contracts occur monthly as our physical commodity sales are realized or when we rebalance our portfolio.

For the first quarter 2009, derivative activity and total revenues included a non-cash gain of $0.3 million and current period hedge settlements received of $6.2 million, as compared to a non-cash loss of $28.3 million and hedge settlement payments of $9.1 million for the same period in 2008. While our earnings will continue to fluctuate as a result of the volatility in the commodity markets, our commodity derivative contracts help to stabilize distributable cash flows.

CAPITALIZATION

Our credit facility of $825 million is comprised of a revolver and term loan that mature in June 2012. At March 31, 2009, we had $585 million outstanding under our revolver. We also had $60 million of term loan outstanding, fully secured by restricted investments serving as collateral. Due to the fully secured status of the term loan, balances outstanding are netted from total long-term debt to calculate our leverage ratio. Our leverage ratio pursuant to our credit facility for the quarter ended March 31, 2009, was approximately 3.8x.

Our liquidity is comprised of available capacity under our revolver and the collateral securing our term loan that may be used to fund organic capital expenditures or acquisitions. Our available liquidity at March 31, 2009, was approximately $240 million.

We mitigate a substantial portion of our interest rate risk with interest rate swaps which reduce our exposure to market rate fluctuations by converting variable interest rates to fixed interest rates. As of March 31, 2009, we had $575.0 million of our revolver debt converted to fixed rates through June 2012. Our weighted average cost of debt under our revolving credit facility, including interest rate swaps, as of March 31, 2009, was 4.6 percent.

EARNINGS CALL

DCP Midstream Partners will hold a conference call to discuss first quarter results on Friday, May 8, 2009, at 10 a.m. ET. The dial-in number for the call is 800-860-2442 in the United States or 412-858-4600 outside the United States. A live Webcast of the call can be accessed on the investor information page of DCP Midstream Partners' Web site at http://www.dcppartners.com/. The call will be available for replay until 9 a.m. ET on July 6, 2009, by dialing 877-344-7529, in the United States or 412-317-0088 outside the United States. The conference number is 426824. A replay and transcript of the broadcast will also be available on the Partnership's Web site.