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|MarkWest Liberty Announces Long-term Agreement with Chesapeake Energy Corporation to Provide Midstream Services in the Marcellus Shale|
DENVER—January 19, 2011—MarkWest Liberty Midstream & Resources, L.L.C., a partnership between MarkWest Energy Partners, L.P. (NYSE: MWE) and The Energy & Minerals Group, today announced the execution of a long-term agreement with affiliates of Chesapeake Energy Corporation (NYSE:CHK) to provide additional natural gas midstream services for Chesapeake’s substantial rich-gas Marcellus acreage in northern West Virginia.
MarkWest Liberty will provide the midstream services at its Majorsville, West Virginia processing complex, which includes a 135 million cubic feet per day (MMcf/d) cryogenic gas processing plant that is operating near capacity. MarkWest Liberty is nearing completion of a second 135 MMcf/d cryogenic plant at Majorsville and is evaluating the addition of a third plant. The natural gas liquids (NGLs) recovered at Majorsville are transported via pipeline to MarkWest Liberty’s fractionation, storage, and marketing complex in Houston, Pennsylvania.
By mid 2012, MarkWest Liberty will operate 745 MMcf/d of cryogenic processing capacity serving Marcellus rich-gas producers in southwestern Pennsylvania and northern West Virginia from its Houston, Majorsville, and recently announced Logansport processing complexes. In addition, MarkWest Liberty provides integrated NGL transportation, fractionation, storage, and marketing services that are critical to optimizing rich-gas development in the northeast United States.
"We are excited to expand our long-standing relationship with Chesapeake and to further strengthen our midstream presence in the rich-gas areas of the Marcellus," said Frank Semple, Chairman, President and Chief Executive Officer of MarkWest. "Majorsville and Logansport are a key part of our long-term vision of developing world-class midstream infrastructure that extends from our fractionation and three processing complexes in southwestern Pennsylvania and northern West Virginia to our processing and fractionation assets in southeast Kentucky, including our recently announced acquisition of EQT’s Langley processing complex. Our midstream presence in the rich-gas areas of the Marcellus and Huron/Berea shales significantly reinforces our position as the leading provider of midstream services in the Northeast."
About MarkWest Energy Partners
MarkWest Energy Partners, L.P. is a master limited partnership engaged in the gathering, transportation, and processing of natural gas; the transportation, fractionation, marketing, and storage of natural gas liquids; and the gathering and transportation of crude oil. MarkWest has extensive natural gas gathering, processing, and transmission operations in the southwest, Gulf Coast, and northeast regions of the United States, including the Marcellus Shale, and is the largest natural gas processor in the Appalachian region.
About The Energy & Minerals Group
The Energy & Minerals Group is the management company for a series of private equity funds totaling in excess of $2.5 billion of commitments. EMG focuses exclusively on making direct investments across the natural resources industry in conjunction with experienced management teams focused on hard assets that are integral to existing and growing markets. For additional information on EMG, please contact John Raymond at 713-579-5000.
This press release includes "forward-looking statements." All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Actual results could vary significantly from those expressed or implied in such statements and are subject to a number of risks and uncertainties. Although MarkWest believes that the expectations reflected in the forward-looking statements are reasonable, MarkWest can give no assurance that such expectations will prove to be correct. The forward-looking statements involve risks and uncertainties that affect operations, financial performance, and other factors as discussed in filings with the Securities and Exchange Commission. Among the factors that could cause results to differ materially are those risks discussed in the periodic reports filed with the SEC, including MarkWest’s Annual Report on Form 10-K for the year ended December 31, 2009, and Quarterly Report on Form 10-Q for the quarter ended September 30, 2010. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading "Risk Factors." MarkWest does not undertake any duty to update any forward-looking statement except as required by law.
MarkWest Energy Partners, L.P.