News Release

Printer Friendly Version View printer-friendly version
<< Back
Range and Markwest Announce Commencement of Marcellus Gas Processing Plant and Investor Site Tour
Download PDF Download PDF

FORT WORTH AND DENVER - OCTOBER 22, 2008 - Range Resources Corporation (NYSE:RRC) and MarkWest Energy Partners, L.P. (NYSE: MWE) today announced the commencement of the initial phase of Pennsylvania’s first large-scale gas processing infrastructure with the successful launch of a mechanical refrigeration processing plant in Washington County.

Today’s announcement is the culmination of efforts by Range Resources and MarkWest to bring Marcellus Shale gas to the local market. Over the past four years, Range Resources has invested more than $700 million in leasehold, drilling and infrastructure.

MarkWest is investing approximately $200 million to construct midstream infrastructure to gather and process the natural gas that Range Resources is extracting from the Marcellus Shale. MarkWest’s investment includes the refrigeration plant announced today, which has capacity to process 30 million cubic feet per day (Mmcf per day) of natural gas. In addition, MarkWest is constructing a 30 Mmcf per day cryogenic processing plant that is expected to commence operations late in the first quarter of 2009. The cryogenic plant is being constructed next to the refrigeration plant and includes a depropanizer to extract propane from the gas stream, which will be sold regionally. MarkWest’s planned investment also includes a 120 Mmcf per day cryogenic plant with a depropanizer to extract additional natural gas liquids from the gas stream. The 120 Mmcf per day cryogenic plant is expected to be completed in late 2009. MarkWest is also evaluating the installation of a large fractionation facility to further enhance the value of the recovered natural gas liquids.

John H. Pinkerton, Chairman and CEO of Range Resources, commented, “This is a watershed moment for Range, MarkWest and for the citizens of Pennsylvania. The opening of this plant signals the beginning of material natural gas production from the Marcellus Shale formation, an environmentally friendly energy resource that could help power Pennsylvania for decades, providing thousands of jobs with a substantial economic impact. We partnered early on with MarkWest, who has done a tremendous job completing the first phase of these facilities in very short order. We anticipate reaching 30 Mmcfe per day of Marcellus production net to Range by year end 2008 and exiting 2009 at 80 to 100 Mmcfe per day.”

Frank Semple, President and Chief Executive Officer of MarkWest commented, “The Marcellus Shale is one of the most exciting new natural gas plays in the U.S. and we are excited to announce the commencement of the first large-scale processing plant to serve this prolific basin. Range Resources is leading the development of the Marcellus and we are proud to partner with them to deliver natural gas to the downstream markets.”

Range Resources and MarkWest wish to thank the Chartiers Township Supervisors and Officials for their assistance plus the following contractors and hundreds of dedicated employees for their efforts in achieving this milestone. Many of these individuals have worked 24/7 to accomplish this significant achievement.

            Site excavation:       Alex E. Paris Contracting Company, Inc.
                  Howard Bros. Excavating, Inc.
                  Richey Oilfield Appalachia, L.L.C.
                 
            Equipment and materials:       NATCO
                  Allegheny Pipe & Supply Company
                  McJunkin Red Man Corporation
                  Edgen Murray Corporation
                  Valtronics, Inc.
                  JPL Manufacturing Co., L.L.C.
                 
            Engineering:       Civil & Environmental Consultants, Inc.
                  The Hillcrest Group, L.L.C.
                  Tri-County Engineers, L.L.C.
                  Petersen Engineering Inc.
                  Ventech Engineers USA, Inc.
                 
            Construction services:       Aker Construction, Inc.
                  L.A. Pipeline, Inc.
                  Bill Hawk, Inc.
                  C.J. Hughes Construction Co., Inc.
                  Chapman Construction Co.
                 
            Unions:       Laborers Local 1058
                  Pipe Fitters Locals 168 and 549
                  Pipeline Local 798
                  Operating Engineers Local 66
                  Teamsters Local 585

In celebration of this event, Range Resources and MarkWest are co-sponsoring an investor tour of the facility on Tuesday, October 28, 2008. For further information about the event, or to register to attend, please visit the Range Resources website at www.rangeresources.com or call Ronda Palmer at (817) 869-4268. For those investors unable to attend, there will be a webcast of the event available on Range’s website.

###

MarkWest Energy Partners, L.P. is a growth-oriented 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 southwestern and Gulf Coast regions of the United States and is the largest natural gas processor in the Appalachian region. The primary business strategy of MarkWest is to provide outstanding customer service at competitive rates and to expand its assets and cash flow available for distribution through a balanced combination of organic growth projects and selective acquisitions.

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 our 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 MarkWest’s Annual Report on Form 10-K, as amended, for the year ended December 31, 2007, as filed with the SEC. 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.

Range Resources Corporation is an independent oil and gas company operating in the Southwestern, Appalachian and Gulf Coast regions of the United States.

Range Resources Forward-Looking Statements: Except for historical information, statements made in this release, including those relating to anticipated reserve potential, production, drilling results, capital expenditures, the number of wells to be drilled, future realized prices and financial results are forward-looking statements as defined by the Securities and Exchange Commission. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management's assumptions and the Company's future performance are subject to a wide range of business risks and uncertainties and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, the volatility of oil and gas prices, the costs and results of drilling and operations, the timing of production, mechanical and other inherent risks associated with oil and gas production, weather, the availability of drilling equipment, changes in interest rates, litigation, uncertainties about reserve estimates, and environmental risks. The Company undertakes no obligation to publicly update or revise any forward-looking statements. Further information on risks and uncertainties is available in the Company's filings with the Securities and Exchange Commission, which are incorporated by reference.


MarkWest Energy Partners, L.P.
Frank Semple, 866-858-0482
Chairman, President & CEO
or
Nancy Buese, 866-858-0482
Senior VP and CFO
or
Dan Campbell, 866-858-0482
VP of Finance & Treasurer
investorrelations@markwest.com