THIRD QUARTER AND YEAR-TO-DATE HIGHLIGHTS Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 2008 2007 (unaudited) (Millions, except per unit amounts) Net income (loss) $152.7 $7.5 $(13.1) $24.1 Net income (loss) per unit $2.97 $0.29 $(0.75) $0.89 Adjusted EBITDA $13.8 $27.2 $77.0 $72.6 Adjusted net (loss) income $(1.6) $12.4 $31.5 $44.0 Adjusted net (loss) income per unit $(0.16) $0.51 $0.87 $1.75 Adjusted EBITDA decreased $13.4 million for the three months endedSeptember 30, 2008, and increased $4.4 million for the nine months endedSeptember 30, 2008, as compared to the same periods in 2007. The third quarterdecrease is primarily due to the impacts from hurricanes Gustav and Ike, anon-cash write down of inventory for our wholesale propane business, and lowernatural gas liquid (NGL) recoveries at our East Texas complex. The increasefor the nine months ended September 30, 2008 is primarily due to increasedearnings from our investments in the East Texas joint venture and Discoverysystem and earnings from our Lindsay and Momentum acquisitions closed in 2007,partially offset by the impact from the hurricanes.

Adjusted EBITDA, adjusted net income or loss and adjusted net income orloss per unit, which are non-generally accepted accounting principles("non-GAAP") financial measures, eliminate the impact of non-cashmark-to-market gains and losses which arise from valuing certain of thePartnership's derivative transactions. Each are explained in greater detailunder "Non-GAAP Financial Information" below and are reconciled to their mostcomparable GAAP financial measures, in "Reconciliation of Non-GAAP Measures"below.

CEO PERSPECTIVE

"As we navigate these unprecedented times in the financial markets, wecontinue to concentrate on the fundamentals and delivering value to ourunitholders," said Mark Borer, president and CEO of the Partnership. "We arefocused on optimizing our business and will remain disciplined with investmentdecisions in this capital and liquidity constrained environment. We werepleased to close the previously announced $145 million purchase of gasgathering, treating, and transportation assets in Michigan on October 1. Theseassets are an attractive addition to our portfolio, providing steady,long-term fee-based earnings. We are continuing to execute our two previouslyannounced organic growth projects to expand our gathering systems in thePiceance Basin of Colorado and East Texas. Both are moving ahead on target andare supported by active drilling programs. Importantly, we have availabilityunder our credit facility to fund these organic growth projects."

"We previously announced some challenges this quarter with the hurricanescausing supply disruptions at a number of our assets and damage to ourDiscovery system's offshore pipeline, as well as continued work to improve theintegrity and reliability of our Douglas system," continued Borer. "Weanticipate volumes and earnings from these assets to return to near normallevels during the first quarter of 2009."

HURRICANE IMPACT

Hurricanes Gustav and Ike made landfall on the Texas Gulf Coast in lateAugust and mid-September of 2008. As a result, many of our facilities werefully or partially curtailed due to operational disruptions at downstream NGLfacilities or loss of electric power service. All of our hurricane-impactedassets were returned to service in September with the exception of ourDiscovery offshore gathering system. We estimate the total impact to ouradjusted EBITDA in the third quarter from the hurricanes to be between $5million and $6 million. As previously announced, we estimate the decrease toour adjusted EBITDA in the fourth quarter relating to downtime duringDiscovery repairs to be between $7 million and $12 million.

DISTRIBUTION

On October 23, 2008, the Partnership announced a quarterly distribution of$0.60 per limited partner unit. Distributable cash flow was $12.2 million forthe three months ended September 30, 2008, providing 0.61 times the amountrequired to cover our current distribution to both the general and limitedpartners. For the nine months ended September 30, 2008, our distributable cashflow of $67.4 million provided 1.13 times the amount required to cover ourtotal distribution. Non-cash gains or losses associated with themark-to-market accounting treatment of our commodity derivative instruments donot affect our distributable cash flow.

Distributable cash flow, which is a non-GAAP financial measure, isexplained in greater detail under "Non-GAAP Financial Information" below andis reconciled from net income or loss and from net cash provided by or used inoperating activities, its most comparable GAAP financial measures, in"Reconciliation of Non-GAAP Measures" below.

OPERATING RESULTS BY BUSINESS SEGMENT

Natural Gas Services - Adjusted segment gross margin decreased $5.1million to $20.8 million for the three months ended September 30, 2008, from$25.9 million for the same period in 2007. Increases to margin from growth,primarily at our Collbran asset, and increased commodity prices were offset bydecreased volumes due to the hurricanes. The increased commodity prices drovehigher sales margins but also resulted in larger hedge settlements compared tothe third quarter of 2007. The hedge settlements for East Texas and Discoverydecreased segment gross margin although the earnings attributable to theseassets are recorded to equity earnings. Adjusted segment gross marginincreased $7.6 million to $73.3 million for the nine months ended September30, 2008, from $65.7 million for the same period in 2007. The increase inmargin for the nine months ended September 30, 2008 is primarily due toincreased volumes from acquisitions and increased commodity prices, partiallyoffset by decreased volumes due to the hurricanes.

Equity earnings representing our 25 percent interest in East Texas and 40percent interest in Discovery decreased by $2.5 million to $7.8 million forthe three months ended September 30, 2008, as compared to the same period in2007. Discovery's volumes decreased and operating expenses increased as aresult of the hurricanes. East Texas volumes decreased as a result of thehurricanes as well as from downtime for planned maintenance and repairs. Theplanned maintenance and repairs increased operating expenses for the quarterbut resulted in increased NGL recovery capabilities.

Equity earnings increased by $15.2 million to $37.8 million for the ninemonths ended September 30, 2008, as compared to the same period in 2007.Increased earnings were the result of increased volumes and margins at bothEast Texas and Discovery for the first six months of the year.

Wholesale Propane Logistics - Adjusted segment gross margin decreased by$2.2 million to $0.7 million for the three months ended September 30, 2008.Adjusted segment gross margin decreased by $8.8 million to $9.2 million forthe nine months ended September 30, 2008. In the third quarter of 2008 werecorded a non-cash accounting adjustment reducing margin by approximately$3.0 million to reflect inventory carrying costs at the lower of cost ormarket price. Absent this adjustment, our unit margins increased for thequarter and decreased for the nine months ended September 30, 2008, ascompared to the prior year. Higher propane sales prices have dampened demandthroughout 2008.

NGL Logistics - Segment gross margin increased $0.2 million and $1.7million for the three and nine months ended September 30, 2008, respectively,as compared to the same periods in 2007, primarily due to increased throughputvolumes.

Segment gross margin and adjusted segment gross margin, which are non-GAAPfinancial measures, are explained in greater detail under "Non-GAAP FinancialInformation" below and are reconciled from segment net (loss) income, theirmost comparable GAAP financial measure, in "Reconciliation of Non-GAAPMeasures" below.

CORPORATE AND OTHER

General and administrative expense increased by $0.6 million to $6.0million for the three months ended September 30, 2008, as compared to the sameperiod in 2007. This increase was primarily due to higher fees paid to DCPMidstream under an omnibus agreement as a result of the 2007 acquisition ofcertain Momentum Energy Group subsidiaries. General and administrative expensedecreased by $0.3 million to $16.8 million for the nine months ended September30, 2008 as compared to the same period in 2007, primarily due to decreasedacquisition related costs and benefits expense.

Depreciation and amortization expense and net interest expense increasedfor the nine months ended September 30, 2008, as compared to the same periodin 2007, primarily as a result of acquisitions closed in 2007.

COMMODITY DERIVATIVE ACTIVITY

We utilize mark-to-market accounting treatment for our commodityderivative instruments. Mark-to-market accounting rules require companies torecord currently in earnings the difference between their contracted futurederivative settlement prices and the forward prices of the underlyingcommodities at the end of the accounting period. Revaluing our commodityderivative instruments based on futures pricing at the end of the periodcreates an asset or liability and associated non-cash gain or loss. Realizedgains or losses from cash settlement of the derivative contracts occur monthlyas our physical commodity sales are realized.

Due primarily to a large decrease in crude oil prices in the third quarterof 2008, we recorded a non-cash gain associated with our commodity derivativeinstruments of $154.3 million, as compared to a non-cash loss of $4.9 millionfor the third quarter of 2007. While our earnings will continue to fluctuateas a result of the volatility in the commodity markets, our derivativecontracts help to stabilize distributable cash flows.

CAPITALIZATION

At September 30, 2008, we had $435 million outstanding under our revolvingcredit facility and $220 million of fully-secured term loans under our creditagreement. Our liquidity is comprised of cash on-hand, available capacityunder our revolver and the collateral securing our term loan that may be usedto fund organic capital expenditures or acquisitions. The Partnership fundedthe $145 million purchase of gas gathering, treating, and transportationassets in Michigan on October 1, 2008, with restricted investments by repayinga portion of the term loan facility with borrowings under the revolving creditfacility. Following the funding of the Michigan transaction, thePartnership's available liquidity was approximately $240 million, excludingcash on hand.

We mitigate a portion of our interest rate risk with interest rate swapswhich reduce our exposure to market rate fluctuations by converting variableinterest rates to fixed interest rates. As of September 30, 2008, we had $425million of our debt converted to fixed rates and our weighted average cost ofdebt under our revolving credit facility was 5.19 percent.

EARNINGS CALL

DCP Midstream Partners will hold a conference call to discuss secondquarter results on Friday, November 7, 2008, at 11 a.m. ET. The dial-in numberfor the call is 800-860-2442 in the United States or 412-858-4600 outside theUnited States. A live Webcast of the call can be accessed on the investorinformation page of DCP Midstream Partners' Web site athttp://www.dcppartners.com. The call will be available for replay untilNovember 17, 2008, by dialing 877-344-7529, in the United States or412-317-0088 outside the United States. The passcode is 423801. A replay andtranscript of the broadcast will also be available on the Partnership's Website.

NON-GAAP FINANCIAL INFORMATION

This press release and the accompanying financial schedules include thenon-GAAP financial measures of distributable cash flow, EBITDA, adjustedEBITDA, adjusted net income or loss, adjusted net income or loss per unit,gross margin, segment gross margin and adjusted segment gross margin. Theaccompanying schedules provide reconciliations of these non-GAAP financialmeasures to their most directly comparable financial measures calculated andpresented in accordance with accounting principles generally accepted in theUnited States of America ("GAAP"). Our non-GAAP financial measures should notbe considered an alternative to, or more meaningful than, net income or loss,operating income, cash flows from operating activities or any other measure ofliquidity or financial performance presented in accordance with GAAP asmeasures of operating performance, liquidity or ability to service debtobligations and make cash distributions to unitholders. Our distributable cashflow, EBITDA, adjusted EBITDA, adjusted net income or loss, adjusted netincome or loss per unit, gross margin, segment gross margin and adjustedsegment gross margin may not be comparable to a similarly titled measure ofanother company because other entities may not calculate these measures in thesame manner.

We define distributable cash flow as net cash provided by or used inoperating activities, less maintenance capital expenditures, net ofreimbursable projects, plus or minus adjustments for non-cash mark-to-marketof derivative instruments, proceeds from divestiture of assets,non-controlling interest on depreciation, net changes in operating assets andliabilities, and other adjustments to reconcile net cash provided by or usedin operating activities. Maintenance capital expenditures are capitalexpenditures made where we add on to or improve capital assets owned, oracquire or construct new capital assets, if such expenditures are made tomaintain, including over the long term, our operating capacity.Non-cash mark-to-market of derivative instruments is considered to be non-cashfor the purpose of computing distributable cash flow because settlement willnot occur until future periods, and will be impacted by future changes incommodity prices. Distributable cash flow is used as a supplemental liquiditymeasure by our management and by external users of our financial statements,such as investors, commercial banks, research analysts and others, to assessour ability to make cash distributions to our unitholders and our generalpartner.

We define EBITDA (earnings before interest, taxes, depreciation andamortization) as net income or loss less interest income, plus interestexpense, income tax expense and depreciation and amortization expense. Wedefine adjusted EBITDA as EBITDA plus non-cash derivative losses, lessnon-cash derivative gains. These non-cash losses and gains result from themarking to market of certain financial derivatives used by the Partnership forrisk management purposes that we do not account for under the hedge method ofaccounting. These non-cash losses or gains may or may not be realized infuture periods when the derivative contracts are settled, due to fluctuatingcommodity prices.

EBITDA and adjusted EBITDA are used as supplemental liquidity measures byour management and by external users of our financial statements, such asinvestors, commercial banks, research analysts and others, to assess theability of our assets to generate cash sufficient to pay interest costs,support our indebtedness, make cash distributions to our unitholders andgeneral partner, and finance maintenance capital expenditures.

EBITDA and adjusted EBITDA are also used as supplemental performancemeasures by our management and by external users of our financial statements,such as investors, commercial banks, research analysts and others, to assess:

-- financial performance of our assets without regard to financing methods, capital structure or historical cost basis; -- our operating performance and return on capital as compared to those of other companies in the midstream energy industry, without regard to financing methods or capital structure; and -- viability of acquisitions and capital expenditure projects and the overall rates of return on alternative investment opportunities. We define adjusted net income or loss as net income or loss, plus non-cashderivative losses, less non-cash derivative gains. These non-cash derivativelosses and gains result from the marking to market of certain financialderivatives used by the Partnership for risk management purposes that we donot account for under the hedge method of accounting. Adjusted net income orloss is provided to illustrate trends in income excluding these non-cashderivative losses or gains, which may or may not be realized in future periodswhen derivative contracts are settled, due to fluctuating commodity prices.

We define gross margin as total operating revenues less purchases ofnatural gas, propane and NGLs, and we define segment gross margin for eachsegment as total operating revenues for that segment less commodity purchasesfor that segment. Our gross margin equals the sum of our segment grossmargins. We define adjusted segment gross margin as segment gross margin plusnon-cash derivative losses, less non-cash derivative gains for that segment.Gross margin, segment gross margin and adjusted segment gross margin areprimary performance measures used by management, as these measures representthe results of product sales and purchases, a key component of our operations.

DCP Midstream Partners, LP (NYSE: DPM) is a midstream master limitedpartnership that gathers, processes, transports and markets natural gas andnatural gas liquids and is a leading wholesale distributor of propane. DCPMidstream Partners, LP is managed by its general partner, DCP Midstream GP,LLC, which is wholly owned by DCP Midstream, LLC, a joint venture betweenSpectra Energy and ConocoPhillips. For more information, visit the DCPMidstream Partners, LP Web site at http://www.dcppartners.com.

This press release may contain or incorporate by reference forward-lookingstatements as defined under the federal securities laws regarding DCPMidstream Partners, LP, including projections, estimates, forecasts, plans andobjectives. Although management believes that expectations reflected in suchforward-looking statements are reasonable, no assurance can be given that suchexpectations will prove to be correct. In addition, these statements aresubject to certain risks, uncertainties and other assumptions that aredifficult to predict and may be beyond our control. If one or more of theserisks or uncertainties materialize, or if underlying assumptions proveincorrect, the Partnership's actual results may vary materially from whatmanagement anticipated, estimated, projected or expected. Among the key riskfactors that may have a direct bearing on the Partnership's results ofoperations and financial condition are:

-- the level and success of natural gas drilling around our assets and our ability to connect supplies to our gathering and processing systems in light of competition; -- our ability to grow through acquisitions or organic growth projects, and the successful integration and future performance of such assets; -- our ability to access the debt and equity markets; -- fluctuations in oil, natural gas, propane and other NGL prices; -- our ability to purchase propane from our principal suppliers for our wholesale propane logistics business; and -- the credit worthiness of counterparties to our transactions. Investors are encouraged to closely consider the disclosures and riskfactors contained in the Partnership's annual and quarterly reports filed fromtime to time with the Securities and Exchange Commission. The Partnershipundertakes no obligation to publicly update or revise any forward-lookingstatements, whether as a result of new information, future events orotherwise. Information contained in this press release is unaudited, and issubject to change. DCP MIDSTREAM PARTNERS, LP FINANCIAL RESULTS AND SUMMARY BALANCE SHEET DATA (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 2008 2007 (Millions, except per unit amounts) Sales of natural gas, propane, NGLs and condensate $271.2 $185.8 $952.4 $604.3 Transportation, processing and other 13.6 8.9 39.7 23.7 Gains (losses) from commodity derivative activity, net 142.0 (6.1) (81.7) (21.1) Total operating revenues 426.8 188.6 910.4 606.9 Purchases of natural gas, propane and NGLs 249.4 163.3 866.9 539.4 Gross margin 177.4 25.3 43.5 67.5 Operating and maintenance expense (10.2) (8.1) (31.8) (21.0) General and administrative expense (6.0) (5.4) (16.8) (17.1) Other - - 1.5 - Earnings from equity method investments 8.1 10.8 38.7 23.6 Non-controlling interest in income (1.2) (0.3) (2.7) (0.3) EBITDA 168.1 22.3 32.4 52.7 Depreciation and amortization expense (8.8) (7.9) (26.3) (15.8) Interest income 1.7 1.2 5.1 3.7 Interest expense (8.3) (8.1) (24.3) (16.5) Net income (loss) $152.7 $7.5 $(13.1) $24.1 Less: Net income attributable to predecessor operations - - - (3.6) General partner interest in net income or net loss (4.9) (0.9) (7.1) (1.5) Net income (loss) allocable to limited partners $147.8 $6.6 $(20.2) $19.0 Net income (loss) per limited partner unit-basic and diluted $2.97 $0.29 $(0.75) $0.89 Weighted-average limited partner units outstanding- basic and diluted 28.2 22.3 27.1 19.3 September 30, December 31, 2008 2007 (Millions) Cash and cash equivalents $23.5 $24.5 Other current assets 126.0 194.0 Restricted investments 221.1 100.5 Property, plant and equipment, net 496.9 500.7 Other assets 294.8 301.0 Total assets $1,162.3 $1,120.7 Current liabilities $126.8 $219.6 Long-term debt 655.0 630.0 Other liabilities 118.0 75.8 Non-controlling interests 29.1 26.9 Total partners' equity 233.4 168.4 Total liabilities and partners' equity $1,162.3 $1,120.7 DCP MIDSTREAM PARTNERS, LP RECONCILIATION OF NON-GAAP MEASURES (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 2008 2007 (Millions, except per unit amounts) Reconciliation of Non-GAAP Measures: Net income (loss) $152.7 $7.5 $(13.1) $24.1 Interest income (1.7) (1.2) (5.1) (3.7) Interest expense 8.3 8.1 24.3 16.5 Depreciation and amortization expense 8.8 7.9 26.3 15.8 EBITDA 168.1 22.3 32.4 52.7 Non-cash derivative mark-to-market (154.3) 4.9 44.6 19.9 Adjusted EBITDA 13.8 27.2 77.0 72.6 Interest income 1.7 1.2 5.1 3.7 Interest expense (8.3) (8.1) (24.3) (16.5) Depreciation and amortization expense (8.8) (7.9) (26.3) (15.8) Adjusted net (loss) income (1.6) 12.4 31.5 44.0 Maintenance capital expenditures, net of reimbursable projects (1.6) (0.8) (3.5) (1.7) Earnings from equity method investments, net of distributions 4.3 (2.2) 11.2 3.5 Depreciation and amortization expense 8.8 7.9 26.3 15.8 Proceeds from divestiture of assets 2.5 - 2.5 - Non-controlling interest on depreciation (0.2) - (0.6) - Distributable cash flow $12.2 $17.3 $67.4 $61.6 Adjusted net (loss) income $(1.6) $12.4 $31.5 $44.0 Less: Net income attributable to predecessor operations - - - (3.6) General partner interest in net income or net loss (2.9) (0.9) (7.8) (1.8) Adjusted net (loss) income allocable to limited partners $(4.5) $11.5 $23.7 $38.6 Adjusted net (loss) income per unit $(0.16) $0.51 $0.87 $1.75 Net cash provided by operating activities $42.0 $26.3 $54.7 $66.1 Interest income (1.7) (1.2) (5.1) (3.7) Interest expense 8.3 8.1 24.3 16.5 Earnings from equity method investments, net of distributions (4.3) 2.2 (11.2) (3.5) Net changes in operating assets and liabilities 125.2 (13.1) (28.2) (23.1) Other, net (1.4) - (2.1) 0.4 EBITDA 168.1 22.3 32.4 52.7 Non-cash derivative mark-to-market (154.3) 4.9 44.6 19.9 Adjusted EBITDA 13.8 27.2 77.0 72.6 Interest income 1.7 1.2 5.1 3.7 Interest expense (8.3) (8.1) (24.3) (16.5) Maintenance capital expenditures, net of reimbursable projects (1.6) (0.8) (3.5) (1.7) Earnings from equity method investments, net of distributions 4.3 (2.2) 11.2 3.5 Proceeds from divestiture of assets 2.5 - 2.5 - Non-controlling interest on depreciation (0.2) - (0.6) - Distributable cash flow $12.2 $17.3 $67.4 $61.6 DCP MIDSTREAM PARTNERS, LP SEGMENT FINANCIAL RESULTS AND OPERATING DATA AND RECONCILIATION OF NON-GAAP MEASURES (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 2008 2007 (Millions, except as indicated) Natural Gas Services Segment: Financial results: Segment net income $165.5 $19.2 $13.3 $42.9 Operating and maintenance expense 7.9 5.4 23.7 12.6 Depreciation and amortization expense 8.1 7.4 24.3 14.1 Earnings from equity method investments (7.8) (10.3) (37.8) (22.6) Non-controlling interest in income 1.2 0.3 2.7 0.3 Segment gross margin 174.9 22.0 26.2 47.3 Non-cash derivative mark-to-market (154.1) 3.9 47.1 18.4 Adjusted segment gross margin $20.8 $25.9 $73.3 $65.7 Operating data: Natural gas throughput (MMcf/d) 704 770 797 735 NGL gross production (Bbls/d) 18,783 22,570 22,241 21,083 Wholesale Propane Logistics Segment: Financial results: Segment net (loss) income $(1.3) $(0.9) $5.2 $8.0 Operating and maintenance expense 1.9 2.5 7.3 7.8 Depreciation and amortization expense 0.3 0.3 0.9 0.7 Other - - (1.5) - Segment gross margin 0.9 1.9 11.9 16.5 Non-cash derivative mark-to-market (0.2) 1.0 (2.7) 1.5 Adjusted segment gross margin $0.7 $2.9 $9.2 $18.0 Operating data: Propane sales volume (Bbls/d) 11,445 13,014 19,934 21,539 NGL Logistics Segment: Financial results: Segment net income $1.1 $1.5 $4.4 $3.1 Operating and maintenance expense 0.4 0.2 0.8 0.6 Depreciation and amortization expense 0.4 0.2 1.1 1.0 Earnings from equity method investments (0.3) (0.5) (0.9) (1.0) Segment gross margin $1.6 $1.4 $5.4 $3.7 Operating data: NGL pipelines throughput (Bbls/d) 31,881 30,837 32,681 28,890SOURCE DCP Midstream Partners, LP