DENVER, Nov 07, 2011 (BUSINESS WIRE) -- MarkWest Energy Partners, L.P. (NYSE: MWE) (the Partnership) today
reported record quarterly cash available for distribution to common
unitholders, or distributable cash flow (DCF), of $85.3 million for the
three months ended September 30, 2011, and $244.4 million for the nine
months ended September 30, 2011. Distributable cash flow for the three
and nine months ended September 30, 2011, represents distribution
coverage of 138 percent and 146 percent, respectively. The third quarter
distribution of $62.0 million, or $0.73 per common unit, will be paid on
November 14, 2011, to unitholders of record on November 7, 2011. The
third quarter 2011 distribution represents an increase of $0.03 per
common unit, or 4.3 percent, over the second quarter 2011 distribution
and an increase of $0.09 per common unit, or 14.1 percent, over the
third quarter 2010 distribution. As a Master Limited Partnership, cash
distributions to common unitholders are largely determined based on DCF.
A reconciliation of DCF to net income (loss), the most directly
comparable GAAP financial measure, is provided within the financial
tables of this press release.
The Partnership reported Adjusted EBITDA of $107.0 million for the three
months ended September 30, 2011, and $323.2 million for the nine months
ended September 30, 2011. MarkWest believes the presentation of Adjusted
EBITDA provides useful information because it is commonly used by
investors in Master Limited Partnerships to assess financial performance
and operating results of ongoing business operations. A reconciliation
of Adjusted EBITDA to net income (loss), the most directly comparable
GAAP financial measure, is provided within the financial tables of this
press release.
The Partnership reported income before provision for income tax for the
three months and nine months ended September 30, 2011, of $179.3 million
and $194.4 million, respectively. Income before provision for income tax
includes non-cash gains associated with the change in fair value of
derivative instruments of $126.8 million and $102.7 million for the
three and nine months ended September 30, 2011, respectively, and costs
associated with the redemption of debt of $(0.1) million and $(43.5)
million for the three and nine months ended September 30, 2011,
respectively. Excluding these items, income before provision for income
tax for the three and nine months ended September 30, 2011, would have
been $52.6 million and $135.2 million, respectively.
"Our record distributable cash flow for the third quarter allowed us to
deliver more than 14% year-over-year distribution growth for our
unitholders and still maintain a coverage ratio of 1.38 times," said
Frank Semple, Chairman, President and Chief Executive Officer. "This
strong financial performance is a direct result of providing exceptional
service for our producer customers and completing $2 billion of organic
growth projects and acquisitions over the past three years. Equally as
exciting is the extensive inventory of future growth projects that
should continue to deliver strong distribution growth and total returns
for our unitholders for years to come."
BUSINESS HIGHLIGHTS
Capital Markets
-
On July 13, 2011, the Partnership completed a common unit equity
offering of 4.025 million common units. The net proceeds of
approximately $185 million were used to repay amounts outstanding
under its revolving credit facility and to fund its ongoing capital
expenditure program.
-
On September 7, 2011, the Partnership completed the expansion and
extension of its senior secured revolving credit facility. As amended,
the credit facility provides up to $750 million of borrowing capacity
with improved pricing that will result in significant interest expense
savings. The maturity date of the credit facility was extended to
September 2016.
-
On October 13, 2011, the Partnership completed a common unit equity
offering of 5.750 million common units. The net proceeds of
approximately $251 million were used to repay amounts outstanding
under its revolving credit facility and to fund its ongoing capital
expenditure program.
-
On November 3, 2011, the Partnership completed a public offering of
$700 million of 6.25% senior unsecured notes due 2022 resulting in net
proceeds of approximately $689 million. The Partnership intends to use
the net proceeds from the offering to purchase up to $334.4 million in
aggregate principal amount of its outstanding 8.75% senior notes due
2018 pursuant to a tender offer launched October 25, 2011, for any and
all of such outstanding senior notes. The tender offer for the senior
notes due 2018 expires on November 25, 2011. All remaining net
proceeds will be used to fund its ongoing capital expenditure program.
Business Development
-
Southwest - in September 2011, MarkWest commenced operations of a 75
million cubic feet per day (MMcf/d) expansion of its cryogenic natural
gas processing capacity at its Arapaho complex in Western Oklahoma.
With the addition of the incremental capacity, MarkWest has 235 MMcf/d
of cryogenic processing capacity available to serve increasing volumes
of liquids-rich natural gas production from Granite Wash producers in
the Texas panhandle.
-
Liberty - in September 2011, MarkWest Liberty announced three critical
milestones in the ongoing development of the hydrocarbon-rich area of
the Marcellus Shale. The first milestone was the announcement by
Sunoco Logistics, LP of the successful completion of the Mariner West
open season and the execution of definitive transportation agreements.
Mariner West is a 50,000 barrel per day (Bbl/d) pipeline project
jointly developed by Sunoco and MarkWest Liberty that will deliver
Marcellus ethane to petrochemical markets in Sarnia, Ontario, Canada.
Mariner West will support the long-term development of more than 1.5
billion cubic feet per day (Bcf/d) of liquids-rich Marcellus gas in
southwest Pennsylvania and northern West Virginia.
|
The second milestone was the start-up of MarkWest Liberty's Houston,
Pennsylvania fractionation facility with design capacity of 60,000
Bbl/d. The facility is the largest natural gas liquids (NGLs)
fractionation and marketing complex in the northeast United States
and produces high-purity propane, butane, and natural gasoline for
sale into the premium Northeast markets.
|
|
The third milestone was MarkWest Liberty's announcement of the
development of up to 115,000 Bbl/d of purity ethane production
capacity at its Houston and Majorsville processing complexes. The
first phase of this expansion will provide capacity to produce
approximately 75,000 Bbl/d and will commence operation in mid-2013
to support Mariner West.
|
-
Liberty - In October 2011, MarkWest Liberty entered into definitive
agreements with subsidiaries of Magnum Hunter Resources Corporation to
provide long-term midstream processing and related services in the
liquids-rich area of the Marcellus Shale in northern West Virginia.
MarkWest Liberty will install a 200 MMcf/d cryogenic natural gas
processing plant at its Mobley processing complex in West Virginia.
When combined with the 120 MMcf/d Mobley I plant currently under
construction, MarkWest Liberty expects to operate 320 MMcf/d of
cryogenic processing capacity at its Mobley complex by the second half
of 2012. The NGLs recovered at the Mobley complex will be transported
via a newly constructed liquids pipeline to MarkWest Liberty's
fractionation, storage, and marketing complex in Houston, Pennsylvania.
-
Liberty - MarkWest Liberty is in active discussions with existing and
new producer customers to develop additional midstream projects in the
liquids-rich areas of the Marcellus, including significant processing,
NGL transportation, fractionation, storage, and marketing
infrastructure that is critical to the full development of the
Marcellus.
FINANCIAL RESULTS
Balance Sheet
-
At September 30, 2011, the Partnership had $86.4 million of cash and
cash equivalents in wholly owned subsidiaries and $577.6 million
available for borrowing under its $750 million revolving credit
facility after consideration of $27.3 million of outstanding letters
of credit. Pro forma for the equity issuance and senior notes offering
in October and November 2011, respectively, and assuming all
borrowings under the revolving credit facility at September 30, 2011,
are repaid, MarkWest would have $881.3 million of cash and cash
equivalents and $722.7 million available for borrowing under its
revolving credit facility, resulting in total available liquidity of
$1.6 billion.
Operating Results
-
Operating income before items not allocated to segments for the three
months ended September 30, 2011, was $147.8 million, an increase of
$41.2 million when compared to segment operating income of $106.6
million in the same period in 2010. This increase is primarily
attributable to favorable commodity prices compared to the prior year
quarter, expanding operations in the Liberty and Northeast segments,
and increased processing volumes in the Southwest segment.
|
A reconciliation of operating income before items not allocated to
segments to income (loss) before provision for income tax, the most
directly comparable GAAP financial measure, is provided within the
financial tables of this press release.
|
-
Operating income before items not allocated to segments does not
include gain (loss) on commodity derivative instruments. Realized
losses on commodity derivative instruments were $(15.8) million in the
third quarter of 2011 compared to realized losses of $(5.7) million in
the third quarter of 2010.
Capital Expenditures
-
For the three and nine months ended September 30, 2011, the
Partnership's portion of capital expenditures was $111.3 million and
$522.2 million, respectively. Capital expenditures for the nine months
ended September 30, 2011, include the $230.7 million acquisition of
EQT's Langley processing complex and the partially completed Ranger
NGL pipeline.
2011 DCF AND GROWTH CAPITAL EXPENDITURE FORECAST
The Partnership increased its 2011 DCF forecast to a range of $325
million to $345 million. The midpoint of this range provides for
approximately 135 percent coverage of the Partnership's full-year
distribution based on current quarterly distributions and common units
outstanding.
The Partnership's portion of the 2011 growth capital expenditure
forecast remains unchanged in a range of $675 million to $700 million,
which includes the $230 million acquisition of EQT's Langley processing
complex and the Ranger NGL pipeline. The Partnership forecasts
maintenance capital for 2011 at approximately $15 million.
2012 DCF AND GROWTH CAPITAL EXPENDITURE FORECAST
For 2012, the Partnership forecasts DCF in a range of $380 million to
$440 million based on forecasted operational volumes from existing
operations and growth capital projects; derivative instruments currently
outstanding; a reasonable range of price estimates for crude oil and
natural gas; and no acquisitions. The midpoint of this range results in
approximately 165 percent coverage of the Partnership's full-year
distribution based on current quarterly distributions and common units
outstanding. A sensitivity analysis for forecasted 2012 DCF is provided
within the tables of this press release.
The Partnership's portion of growth capital expenditures for 2012 is
forecasted in a range of $600 million to $700 million and maintenance
capital for 2012 is forecasted at approximately $20 million.
CONFERENCE CALL
The Partnership will host a conference call and webcast on Tuesday,
November 8, 2011, at 4:00 p.m. Eastern Time to review its third quarter
2011 financial results. Interested parties can participate in the call
by dialing (800) 475-0218 (passcode "MarkWest") approximately ten
minutes prior to the scheduled start time. To access the webcast, please
visit the Investor Relations section of the Partnership's website at www.markwest.com.
A replay of the conference call will be available on the MarkWest
website or by dialing (866) 359-6514 (no passcode required).
###
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 and fractionator in the Appalachian region.
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 we believe that the expectations reflected in the
forward-looking statements are reasonable, we 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 our 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 we file with the SEC, including our Annual
Report on Form 10-K for the year ended December 31, 2010, and our
Quarterly Report on Form 10-Q for the quarter ended September 30, 2011.
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."We do not undertake any duty to
update any forward-looking statement except as required by law.
| MarkWest Energy Partners, L.P. |
| Financial Statistics |
| (unaudited, in thousands, except per unit data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, |
|
|
|
Nine months ended September 30, |
| Statement of Operations Data |
|
|
|
2011 |
|
|
|
2010 |
|
|
|
2011 |
|
|
|
2010 |
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
$
|
400,883
|
|
|
|
|
$
|
292,370
|
|
|
|
|
$
|
1,109,632
|
|
|
|
|
$
|
884,933
|
|
|
Derivative gain (loss)
|
|
|
|
|
106,943
|
|
|
|
|
|
(36,959
|
)
|
|
|
|
|
61,854
|
|
|
|
|
|
2,707
|
|
|
Total revenue
|
|
|
|
|
507,826
|
|
|
|
|
|
255,411
|
|
|
|
|
|
1,171,486
|
|
|
|
|
|
887,640
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased product costs
|
|
|
|
|
189,284
|
|
|
|
|
|
136,700
|
|
|
|
|
|
497,493
|
|
|
|
|
|
409,119
|
|
|
Derivative (gain) loss related to purchased product costs
|
|
|
|
|
(1,274
|
)
|
|
|
|
|
19,996
|
|
|
|
|
|
17,866
|
|
|
|
|
|
24,993
|
|
|
Facility expenses
|
|
|
|
|
44,236
|
|
|
|
|
|
37,934
|
|
|
|
|
|
124,358
|
|
|
|
|
|
113,266
|
|
|
Derivative gain related to facility expenses
|
|
|
|
|
(2,787
|
)
|
|
|
|
|
(564
|
)
|
|
|
|
|
(2,871
|
)
|
|
|
|
|
(436
|
)
|
|
Selling, general and administrative expenses
|
|
|
|
|
20,162
|
|
|
|
|
|
17,137
|
|
|
|
|
|
60,454
|
|
|
|
|
|
55,064
|
|
|
Depreciation
|
|
|
|
|
38,715
|
|
|
|
|
|
31,362
|
|
|
|
|
|
110,280
|
|
|
|
|
|
89,367
|
|
|
Amortization of intangible assets
|
|
|
|
|
10,985
|
|
|
|
|
|
10,193
|
|
|
|
|
|
32,632
|
|
|
|
|
|
30,579
|
|
|
Loss on disposal of property, plant and equipment
|
|
|
|
|
147
|
|
|
|
|
|
1,937
|
|
|
|
|
|
4,619
|
|
|
|
|
|
2,116
|
|
|
Accretion of asset retirement obligations
|
|
|
|
|
557
|
|
|
|
|
|
70
|
|
|
|
|
|
934
|
|
|
|
|
|
282
|
|
|
Total operating expenses
|
|
|
|
|
300,025
|
|
|
|
|
|
254,765
|
|
|
|
|
|
845,765
|
|
|
|
|
|
724,350
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
|
|
207,801
|
|
|
|
|
|
646
|
|
|
|
|
|
325,721
|
|
|
|
|
|
163,290
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings from unconsolidated affiliates
|
|
|
|
|
(507
|
)
|
|
|
|
|
-
|
|
|
|
|
|
(1,262
|
)
|
|
|
|
|
1,517
|
|
|
Interest income
|
|
|
|
|
62
|
|
|
|
|
|
422
|
|
|
|
|
|
214
|
|
|
|
|
|
1,185
|
|
|
Interest expense
|
|
|
|
|
(26,899
|
)
|
|
|
|
|
(26,433
|
)
|
|
|
|
|
(83,036
|
)
|
|
|
|
|
(75,970
|
)
|
|
Amortization of deferred financing costs and discount (a component
of interest expense)
|
|
|
|
|
(1,002
|
)
|
|
|
|
|
(3,625
|
)
|
|
|
|
|
(3,873
|
)
|
|
|
|
|
(8,517
|
)
|
|
Derivative gain related to interest expense
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
1,871
|
|
|
Loss on redemption of debt
|
|
|
|
|
(133
|
)
|
|
|
|
|
-
|
|
|
|
|
|
(43,461
|
)
|
|
|
|
|
-
|
|
|
Miscellaneous (expense) income, net
|
|
|
|
|
(4
|
)
|
|
|
|
|
76
|
|
|
|
|
|
127
|
|
|
|
|
|
1,129
|
|
|
Income (loss) before provision for income tax
|
|
|
|
|
179,318
|
|
|
|
|
|
(28,914
|
)
|
|
|
|
|
194,430
|
|
|
|
|
|
84,505
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income tax expense (benefit):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
|
|
3,959
|
|
|
|
|
|
3,533
|
|
|
|
|
|
8,104
|
|
|
|
|
|
10,254
|
|
|
Deferred
|
|
|
|
|
21,905
|
|
|
|
|
|
(13,771
|
)
|
|
|
|
|
18,338
|
|
|
|
|
|
(45
|
)
|
|
Total provision for income tax
|
|
|
|
|
25,864
|
|
|
|
|
|
(10,238
|
)
|
|
|
|
|
26,442
|
|
|
|
|
|
10,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
|
153,454
|
|
|
|
|
|
(18,676
|
)
|
|
|
|
|
167,988
|
|
|
|
|
|
74,296
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to non-controlling interest
|
|
|
|
|
(13,142
|
)
|
|
|
|
|
(8,475
|
)
|
|
|
|
|
(33,208
|
)
|
|
|
|
|
(19,720
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to the Partnership
|
|
|
|
$
|
140,312
|
|
|
|
|
$
|
(27,151
|
)
|
|
|
|
$
|
134,780
|
|
|
|
|
$
|
54,576
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to the Partnership's common
unitholders per common unit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
1.77
|
|
|
|
|
$
|
(0.39
|
)
|
|
|
|
$
|
1.75
|
|
|
|
|
$
|
0.77
|
|
|
Diluted
|
|
|
|
$
|
1.77
|
|
|
|
|
$
|
(0.39
|
)
|
|
|
|
$
|
1.75
|
|
|
|
|
$
|
0.77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of outstanding common units:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
78,619
|
|
|
|
|
|
71,438
|
|
|
|
|
|
76,118
|
|
|
|
|
|
69,685
|
|
|
Diluted
|
|
|
|
|
78,760
|
|
|
|
|
|
71,438
|
|
|
|
|
|
76,276
|
|
|
|
|
|
69,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash Flow Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flow provided by (used in):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities
|
|
|
|
$
|
124,885
|
|
|
|
|
$
|
66,602
|
|
|
|
|
$
|
331,249
|
|
|
|
|
$
|
197,238
|
|
|
Investing activities
|
|
|
|
$
|
(125,637
|
)
|
|
|
|
$
|
(120,806
|
)
|
|
|
|
$
|
(587,686
|
)
|
|
|
|
$
|
(373,649
|
)
|
|
Financing activities
|
|
|
|
$
|
64,894
|
|
|
|
|
$
|
17,828
|
|
|
|
|
$
|
348,164
|
|
|
|
|
$
|
177,154
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other Financial Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributable cash flow
|
|
|
|
$
|
85,311
|
|
|
|
|
$
|
54,694
|
|
|
|
|
$
|
244,391
|
|
|
|
|
$
|
171,942
|
|
|
Adjusted EBITDA
|
|
|
|
$
|
107,013
|
|
|
|
|
$
|
83,737
|
|
|
|
|
$
|
323,204
|
|
|
|
|
$
|
244,882
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Data
|
|
|
|
September 30, 2011 |
|
|
|
December 31, 2010
|
|
|
|
|
|
|
|
|
|
Working capital
|
|
|
|
$
|
56,694
|
|
|
|
|
$
|
(43,296
|
)
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
|
3,986,201
|
|
|
|
|
|
3,333,362
|
|
|
|
|
|
|
|
|
|
|
Total debt
|
|
|
|
|
1,477,963
|
|
|
|
|
|
1,273,434
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
|
|
1,909,104
|
|
|
|
|
|
1,536,020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MarkWest Energy Partners, L.P. |
| Operating Statistics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, |
|
|
|
Nine months ended September 30, |
|
|
|
|
2011 |
|
|
|
2010 |
|
|
|
2011 |
|
|
|
2010 |
| Southwest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Texas gathering systems throughput (Mcf/d)
|
|
|
|
417,400
|
|
|
|
433,000
|
|
|
|
423,800
|
|
|
|
433,600
|
|
East Texas natural gas processed (Mcf/d)
|
|
|
|
229,700
|
|
|
|
221,900
|
|
|
|
226,000
|
|
|
|
236,900
|
|
East Texas NGL sales (gallons, in thousands)
|
|
|
|
59,000
|
|
|
|
60,200
|
|
|
|
175,200
|
|
|
|
186,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Western Oklahoma gathering system throughput (Mcf/d) (1)
|
|
|
|
241,300
|
|
|
|
183,600
|
|
|
|
224,400
|
|
|
|
189,300
|
|
Western Oklahoma natural gas processed (Mcf/d)
|
|
|
|
153,200
|
|
|
|
143,300
|
|
|
|
156,600
|
|
|
|
129,600
|
|
Western Oklahoma NGL sales (gallons, in thousands)
|
|
|
|
37,000
|
|
|
|
33,800
|
|
|
|
111,100
|
|
|
|
93,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Southeast Oklahoma gathering system throughput (Mcf/d)
|
|
|
|
512,600
|
|
|
|
535,800
|
|
|
|
507,500
|
|
|
|
524,100
|
|
Southeast Oklahoma natural gas processed (Mcf/d) (2)
|
|
|
|
105,400
|
|
|
|
94,500
|
|
|
|
103,100
|
|
|
|
79,000
|
|
Southeast Oklahoma NGL sales (gallons, in thousands)
|
|
|
|
30,600
|
|
|
|
29,900
|
|
|
|
92,100
|
|
|
|
72,300
|
|
Arkoma Connector Pipeline throughput (Mcf/d)
|
|
|
|
298,600
|
|
|
|
396,800
|
|
|
|
294,300
|
|
|
|
378,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Southwest gathering system throughput (Mcf/d) (3)
|
|
|
|
29,900
|
|
|
|
37,000
|
|
|
|
31,500
|
|
|
|
40,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Northeast (4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas processed (Mcf/d)
|
|
|
|
277,400
|
|
|
|
190,300
|
|
|
|
300,700
|
|
|
|
194,400
|
|
NGLs fractionated (Bbl/d) (5)
|
|
|
|
19,300
|
|
|
|
21,200
|
|
|
|
21,400
|
|
|
|
20,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Keep-whole sales (gallons, in thousands)
|
|
|
|
21,700
|
|
|
|
28,700
|
|
|
|
82,600
|
|
|
|
105,300
|
|
Percent-of-proceeds sales (gallons, in thousands)
|
|
|
|
31,600
|
|
|
|
30,800
|
|
|
|
95,600
|
|
|
|
87,900
|
|
Total NGL sales (gallons, in thousands) (6)
|
|
|
|
53,300
|
|
|
|
59,500
|
|
|
|
178,200
|
|
|
|
193,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil transported for a fee (Bbl/d)
|
|
|
|
9,900
|
|
|
|
12,100
|
|
|
|
10,500
|
|
|
|
12,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liberty |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gathering system throughput (Mcf/d)
|
|
|
|
258,300
|
|
|
|
153,300
|
|
|
|
228,900
|
|
|
|
127,700
|
|
Natural gas processed (Mcf/d)
|
|
|
|
366,200
|
|
|
|
156,300
|
|
|
|
306,700
|
|
|
|
122,300
|
|
NGLs fractionated (Bbl/d) (7)
|
|
|
|
12,400
|
|
|
|
4,200
|
|
|
|
9,300
|
|
|
|
3,500
|
|
NGL sales (gallons, in thousands) (8)
|
|
|
|
61,100
|
|
|
|
32,400
|
|
|
|
163,500
|
|
|
|
77,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gulf Coast |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinery off-gas processed (Mcf/d)
|
|
|
|
122,000
|
|
|
|
123,000
|
|
|
|
113,200
|
|
|
|
118,400
|
|
Liquids fractionated (Bbl/d)
|
|
|
|
23,100
|
|
|
|
23,100
|
|
|
|
21,400
|
|
|
|
22,800
|
|
NGL sales (gallons excluding hydrogen, in thousands)
|
|
|
|
89,200
|
|
|
|
89,300
|
|
|
|
245,500
|
|
|
|
261,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Includes natural gas gathered in Western Oklahoma and from the
Granite Wash formation in the Texas Panhandle as management
considers this one integrated area of operations.
|
|
(2)
|
|
|
The natural gas processing in Southeast Oklahoma is outsourced to
Centrahoma, our equity investment, or a third-party processor.
|
|
(3)
|
|
|
Excludes lateral pipelines where revenue is not based on throughput.
|
|
(4)
|
|
|
Includes throughput from the Kenova, Cobb, Boldman and Langley
processing plants. We acquired the Langley processing plant in
February 2011. The volumes reported are the average daily rates for
the days of operation.
|
|
(5)
|
|
|
Amount includes 4,400 barrels per day and 4,300 barrels per day
fractionated on behalf of Liberty for the three months ended
September 30, 2011 and 2010, respectively, and includes 5,100
barrels per day and 3,500 barrels per day fractionated on behalf of
Liberty for the nine months ended September 30, 2011 and 2010,
respectively. Beginning in the fourth quarter of 2011, Siloam will
no longer fractionate NGLs on behalf of Liberty due to the operation
of Liberty's fractionation facility that began in September 2011.
|
|
(6)
|
|
|
Represents sales at the Siloam fractionator. The total sales
exclude approximately 17,100,000 gallons and 16,700,000 gallons
sold by the Northeast on behalf of Liberty for the three months
ended September 30, 2011 and 2010, respectively, and approximately
58,600,000 gallons and 40,000,000 gallons sold for the nine months
ended September 30, 2011 and 2010, respectively. These volumes are
included as part of NGLs sold at Liberty.
|
|
(7)
|
|
|
Amount includes all NGLs that were produced at the Liberty
processing facilities and fractionated into purity products at our
Liberty fractionation facility. Through August 2011, only propane
was recovered at our Liberty facilities. In September 2011,
Liberty's fractionation facility commenced operations and Liberty
now has full fractionation capabilities.
|
|
(8)
|
|
|
Includes sale of all purity products fractionated at the Liberty
facilities and sale of all unfractionated NGLs. Also includes the
sale of purity products fractionated and sold at the Siloam
facilities on behalf of Liberty.
|
|
|
|
|
| MarkWest Energy Partners, L.P. |
| Reconciliation of GAAP Financial Measure to Non-GAAP Financial
Measure |
| Operating Income before Items not Allocated to Segments |
| (unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three months ended September 30, 2011 |
|
|
|
Southwest |
|
|
|
Northeast |
|
|
|
Liberty |
|
|
|
Gulf Coast |
|
|
|
Total |
|
Revenue
|
|
|
|
$
|
241,998
|
|
|
|
$
|
55,920
|
|
|
|
$
|
78,586
|
|
|
|
$
|
26,868
|
|
|
|
$
|
403,372
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased product costs
|
|
|
|
|
141,067
|
|
|
|
|
15,947
|
|
|
|
|
32,270
|
|
|
|
|
-
|
|
|
|
|
189,284
|
|
Facility expenses
|
|
|
|
|
21,043
|
|
|
|
|
6,879
|
|
|
|
|
9,108
|
|
|
|
|
9,798
|
|
|
|
|
46,828
|
|
Total operating expenses before items not allocated to segments
|
|
|
|
|
162,110
|
|
|
|
|
22,826
|
|
|
|
|
41,378
|
|
|
|
|
9,798
|
|
|
|
|
236,112
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portion of operating income attributable to non-controlling interests
|
|
|
|
|
1,227
|
|
|
|
|
-
|
|
|
|
|
18,223
|
|
|
|
|
-
|
|
|
|
|
19,450
|
|
Operating income before items not allocated to segments
|
|
|
|
$
|
78,661
|
|
|
|
$
|
33,094
|
|
|
|
$
|
18,985
|
|
|
|
$
|
17,070
|
|
|
|
$
|
147,810
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three months ended September 30, 2010 |
|
|
|
Southwest |
|
|
|
Northeast |
|
|
|
Liberty |
|
|
|
Gulf Coast |
|
|
|
Total |
|
Revenue
|
|
|
|
$
|
159,044
|
|
|
|
$
|
83,400
|
|
|
|
$
|
28,606
|
|
|
|
$
|
21,320
|
|
|
|
$
|
292,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased product costs
|
|
|
|
|
74,835
|
|
|
|
|
55,879
|
|
|
|
|
5,986
|
|
|
|
|
-
|
|
|
|
|
136,700
|
|
Facility expenses
|
|
|
|
|
20,659
|
|
|
|
|
5,268
|
|
|
|
|
5,668
|
|
|
|
|
8,785
|
|
|
|
|
40,380
|
|
Total operating expenses before items not allocated to segments
|
|
|
|
|
95,494
|
|
|
|
|
61,147
|
|
|
|
|
11,654
|
|
|
|
|
8,785
|
|
|
|
|
177,080
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portion of operating income attributable to non-controlling interests
|
|
|
|
|
1,906
|
|
|
|
|
-
|
|
|
|
|
6,772
|
|
|
|
|
-
|
|
|
|
|
8,678
|
|
Operating income before items not allocated to segments
|
|
|
|
$
|
61,644
|
|
|
|
$
|
22,253
|
|
|
|
$
|
10,180
|
|
|
|
$
|
12,535
|
|
|
|
$
|
106,612
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, |
|
|
|
|
2011 |
|
|
|
2010 |
|
|
|
|
|
|
|
|
|
|
Operating income before items not allocated to segments
|
|
|
|
$
|
147,810
|
|
|
|
|
$
|
106,612
|
|
|
Portion of operating income attributable to non-controlling interests
|
|
|
|
|
19,450
|
|
|
|
|
|
8,678
|
|
|
Derivative gain (loss) not allocated to segments
|
|
|
|
|
111,004
|
|
|
|
|
|
(56,391
|
)
|
|
Revenue deferral adjustment
|
|
|
|
|
(2,489
|
)
|
|
|
|
|
-
|
|
|
Compensation expense included in facility expenses not allocated to
segments
|
|
|
|
|
(263
|
)
|
|
|
|
|
(404
|
)
|
|
Facility expenses adjustments
|
|
|
|
|
2,855
|
|
|
|
|
|
2,850
|
|
|
Selling, general and administrative expenses
|
|
|
|
|
(20,162
|
)
|
|
|
|
|
(17,137
|
)
|
|
Depreciation
|
|
|
|
|
(38,715
|
)
|
|
|
|
|
(31,362
|
)
|
|
Amortization of intangible assets
|
|
|
|
|
(10,985
|
)
|
|
|
|
|
(10,193
|
)
|
|
Loss on disposal of property, plant and equipment
|
|
|
|
|
(147
|
)
|
|
|
|
|
(1,937
|
)
|
|
Accretion of asset retirement obligations
|
|
|
|
|
(557
|
)
|
|
|
|
|
(70
|
)
|
|
Income from operations
|
|
|
|
|
207,801
|
|
|
|
|
|
646
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
Loss from unconsolidated affiliate
|
|
|
|
|
(507
|
)
|
|
|
|
|
-
|
|
|
Interest income
|
|
|
|
|
62
|
|
|
|
|
|
422
|
|
|
Interest expense
|
|
|
|
|
(26,899
|
)
|
|
|
|
|
(26,433
|
)
|
|
Amortization of deferred financing costs and discount (a component
of
interest expense)
|
|
|
|
|
(1,002
|
)
|
|
|
|
|
(3,625
|
)
|
|
Loss on redemption of debt
|
|
|
|
|
(133
|
)
|
|
|
|
|
-
|
|
|
Miscellaneous (expense) income, net
|
|
|
|
|
(4
|
)
|
|
|
|
|
76
|
|
|
Income (loss) before provision for income tax
|
|
|
|
$
|
179,318
|
|
|
|
|
$
|
(28,914
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MarkWest Energy Partners, L.P. |
| Reconciliation of GAAP Financial Measure to Non-GAAP Financial
Measure |
| Operating Income before Items not Allocated to Segments |
| (unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nine months ended September 30, 2011 |
|
|
|
Southwest |
|
|
|
Northeast |
|
|
|
Liberty |
|
|
|
Gulf Coast |
|
|
|
Total |
|
Revenue
|
|
|
|
$
|
679,347
|
|
|
|
$
|
201,687
|
|
|
|
$
|
168,142
|
|
|
|
$
|
73,310
|
|
|
|
$
|
1,122,486
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased product costs
|
|
|
|
|
373,251
|
|
|
|
|
72,527
|
|
|
|
|
51,715
|
|
|
|
|
-
|
|
|
|
|
497,493
|
|
Facility expenses
|
|
|
|
|
62,055
|
|
|
|
|
19,402
|
|
|
|
|
22,875
|
|
|
|
|
27,100
|
|
|
|
|
131,432
|
|
Total operating expenses before items not allocated to segments
|
|
|
|
|
435,306
|
|
|
|
|
91,929
|
|
|
|
|
74,590
|
|
|
|
|
27,100
|
|
|
|
|
628,925
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portion of operating income attributable to non-controlling interests
|
|
|
|
|
3,745
|
|
|
|
|
-
|
|
|
|
|
45,782
|
|
|
|
|
-
|
|
|
|
|
49,527
|
|
Operating income before items not allocated to segments
|
|
|
|
$
|
240,296
|
|
|
|
$
|
109,758
|
|
|
|
$
|
47,770
|
|
|
|
$
|
46,210
|
|
|
|
$
|
444,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nine months ended September 30, 2010 |
|
|
|
Southwest |
|
|
|
Northeast |
|
|
|
Liberty |
|
|
|
Gulf Coast |
|
|
|
Total |
|
Revenue
|
|
|
|
$
|
479,051
|
|
|
|
$
|
276,570
|
|
|
|
$
|
66,354
|
|
|
|
$
|
62,958
|
|
|
|
$
|
884,933
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased product costs
|
|
|
|
|
220,849
|
|
|
|
|
179,700
|
|
|
|
|
8,570
|
|
|
|
|
-
|
|
|
|
|
409,119
|
|
Facility expenses
|
|
|
|
|
60,543
|
|
|
|
|
14,555
|
|
|
|
|
19,121
|
|
|
|
|
23,875
|
|
|
|
|
118,094
|
|
Total operating expenses before items not allocated to segments
|
|
|
|
|
281,392
|
|
|
|
|
194,255
|
|
|
|
|
27,691
|
|
|
|
|
23,875
|
|
|
|
|
527,213
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portion of operating income attributable to non-controlling interests
|
|
|
|
|
4,962
|
|
|
|
|
-
|
|
|
|
|
15,617
|
|
|
|
|
-
|
|
|
|
|
20,579
|
|
Operating income before items not allocated to segments
|
|
|
|
$
|
192,697
|
|
|
|
$
|
82,315
|
|
|
|
$
|
23,046
|
|
|
|
$
|
39,083
|
|
|
|
$
|
337,141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30, |
|
|
|
|
2011 |
|
|
|
2010 |
|
|
|
|
|
|
|
|
|
|
Operating income before items not allocated to segments
|
|
|
|
$
|
444,034
|
|
|
|
|
$
|
337,141
|
|
|
Portion of operating income attributable to non-controlling interests
|
|
|
|
|
49,527
|
|
|
|
|
|
20,579
|
|
|
Derivative gain (loss) not allocated to segments
|
|
|
|
|
46,859
|
|
|
|
|
|
(21,850
|
)
|
|
Revenue deferral adjustment
|
|
|
|
|
(12,854
|
)
|
|
|
|
|
-
|
|
|
Compensation expense included in facility expenses not allocated to
segments
|
|
|
|
|
(1,491
|
)
|
|
|
|
|
(1,412
|
)
|
|
Facility expenses adjustments
|
|
|
|
|
8,565
|
|
|
|
|
|
6,240
|
|
|
Selling, general and administrative expenses
|
|
|
|
|
(60,454
|
)
|
|
|
|
|
(55,064
|
)
|
|
Depreciation
|
|
|
|
|
(110,280
|
)
|
|
|
|
|
(89,367
|
)
|
|
Amortization of intangible assets
|
|
|
|
|
(32,632
|
)
|
|
|
|
|
(30,579
|
)
|
|
Loss on disposal of property, plant and equipment
|
|
|
|
|
(4,619
|
)
|
|
|
|
|
(2,116
|
)
|
|
Accretion of asset retirement obligations
|
|
|
|
|
(934
|
)
|
|
|
|
|
(282
|
)
|
|
Income from operations
|
|
|
|
|
325,721
|
|
|
|
|
|
163,290
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
(Loss) earnings from unconsolidated affiliate
|
|
|
|
|
(1,262
|
)
|
|
|
|
|
1,517
|
|
|
Interest income
|
|
|
|
|
214
|
|
|
|
|
|
1,185
|
|
|
Interest expense
|
|
|
|
|
(83,036
|
)
|
|
|
|
|
(75,970
|
)
|
|
Amortization of deferred financing costs and discount (a component
of
interest expense)
|
|
|
|
|
(3,873
|
)
|
|
|
|
|
(8,517
|
)
|
|
Derivative gain related to interest expense
|
|
|
|
|
-
|
|
|
|
|
|
1,871
|
|
|
Loss on redemption of debt
|
|
|
|
|
(43,461
|
)
|
|
|
|
|
-
|
|
|
Miscellaneous income, net
|
|
|
|
|
127
|
|
|
|
|
|
1,129
|
|
|
Income before provision for income tax
|
|
|
|
$
|
194,430
|
|
|
|
|
$
|
84,505
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MarkWest Energy Partners, L.P. |
| Reconciliation of GAAP Financial Measure to Non-GAAP Financial
Measure |
| Distributable Cash Flow |
| (unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, |
|
|
|
Nine months ended September 30, |
|
|
|
|
2011 |
|
|
|
2010 |
|
|
|
2011 |
|
|
|
2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
153,454
|
|
|
|
|
$
|
(18,676
|
)
|
|
|
|
$
|
167,988
|
|
|
|
|
$
|
74,296
|
|
|
Depreciation, amortization, impairment, and other non-cash
operating expenses
|
|
|
|
|
50,482
|
|
|
|
|
|
43,640
|
|
|
|
|
|
148,699
|
|
|
|
|
|
122,578
|
|
|
Loss on redemption of debt, net of tax benefit
|
|
|
|
|
119
|
|
|
|
|
|
-
|
|
|
|
|
|
39,618
|
|
|
|
|
|
-
|
|
|
Amortization of deferred financing costs and discount
|
|
|
|
|
1,002
|
|
|
|
|
|
3,625
|
|
|
|
|
|
3,873
|
|
|
|
|
|
8,517
|
|
|
Non-cash loss (earnings) from unconsolidated affiliate
|
|
|
|
|
507
|
|
|
|
|
|
-
|
|
|
|
|
|
1,262
|
|
|
|
|
|
(1,517
|
)
|
|
Distributions from unconsolidated affiliate
|
|
|
|
|
-
|
|
|
|
|
|
1,353
|
|
|
|
|
|
300
|
|
|
|
|
|
2,508
|
|
|
Non-cash compensation expense
|
|
|
|
|
995
|
|
|
|
|
|
1,447
|
|
|
|
|
|
3,707
|
|
|
|
|
|
6,456
|
|
|
Non-cash derivative activity
|
|
|
|
|
(126,802
|
)
|
|
|
|
|
50,610
|
|
|
|
|
|
(102,681
|
)
|
|
|
|
|
(14,782
|
)
|
|
Provision for income tax - deferred
|
|
|
|
|
21,905
|
|
|
|
|
|
(13,771
|
)
|
|
|
|
|
18,338
|
|
|
|
|
|
(45
|
)
|
|
Cash adjustment for non-controlling interest of consolidated
subsidiaries
|
|
|
|
|
(18,227
|
)
|
|
|
|
|
(8,274
|
)
|
|
|
|
|
(46,285
|
)
|
|
|
|
|
(19,317
|
)
|
|
Revenue deferral adjustment
|
|
|
|
|
2,489
|
|
|
|
|
|
-
|
|
|
|
|
|
12,854
|
|
|
|
|
|
-
|
|
|
Other
|
|
|
|
|
1,334
|
|
|
|
|
|
(1,259
|
)
|
|
|
|
|
4,537
|
|
|
|
|
|
561
|
|
|
Maintenance capital expenditures, net of joint venture partner
contributions
|
|
|
|
|
(1,947
|
)
|
|
|
|
|
(4,001
|
)
|
|
|
|
|
(7,819
|
)
|
|
|
|
|
(7,313
|
)
|
|
Distributable cash flow
|
|
|
|
$
|
85,311
|
|
|
|
|
$
|
54,694
|
|
|
|
|
$
|
244,391
|
|
|
|
|
$
|
171,942
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maintenance capital expenditures
|
|
|
|
$
|
2,179
|
|
|
|
|
$
|
4,001
|
|
|
|
|
$
|
8,577
|
|
|
|
|
$
|
7,313
|
|
|
Growth capital expenditures
|
|
|
|
|
123,631
|
|
|
|
|
|
116,912
|
|
|
|
|
|
351,349
|
|
|
|
|
|
366,860
|
|
|
Total capital expenditures
|
|
|
|
|
125,810
|
|
|
|
|
|
120,913
|
|
|
|
|
|
359,926
|
|
|
|
|
|
374,173
|
|
|
Acquisition
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
230,728
|
|
|
|
|
|
-
|
|
|
Total capital expenditures and acquisition
|
|
|
|
|
125,810
|
|
|
|
|
|
120,913
|
|
|
|
|
|
590,654
|
|
|
|
|
|
374,173
|
|
|
Joint venture partner contributions
|
|
|
|
|
(14,474
|
)
|
|
|
|
|
(53,975
|
)
|
|
|
|
|
(68,501
|
)
|
|
|
|
|
(158,017
|
)
|
|
Total capital expenditures and acquisition, net
|
|
|
|
$
|
111,336
|
|
|
|
|
$
|
66,938
|
|
|
|
|
$
|
522,153
|
|
|
|
|
$
|
216,156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributable cash flow
|
|
|
|
$
|
85,311
|
|
|
|
|
$
|
54,694
|
|
|
|
|
$
|
244,391
|
|
|
|
|
$
|
171,942
|
|
|
Maintenance capital expenditures, net
|
|
|
|
|
1,947
|
|
|
|
|
|
4,001
|
|
|
|
|
|
7,819
|
|
|
|
|
|
7,313
|
|
|
Changes in receivables and other assets
|
|
|
|
|
(17,856
|
)
|
|
|
|
|
(19,966
|
)
|
|
|
|
|
(33,255
|
)
|
|
|
|
|
(32,979
|
)
|
|
Changes in accounts payable, accrued liabilities and other long-term
liabilities
|
|
|
|
|
38,405
|
|
|
|
|
|
16,118
|
|
|
|
|
|
69,372
|
|
|
|
|
|
24,335
|
|
|
Derivative instrument premium payments, net of amortization
|
|
|
|
|
1,137
|
|
|
|
|
|
492
|
|
|
|
|
|
3,281
|
|
|
|
|
|
1,586
|
|
|
Cash adjustment for non-controlling interest of consolidated
subsidiaries
|
|
|
|
|
18,227
|
|
|
|
|
|
8,274
|
|
|
|
|
|
46,285
|
|
|
|
|
|
19,317
|
|
|
Other
|
|
|
|
|
(2,286
|
)
|
|
|
|
|
2,989
|
|
|
|
|
|
(6,644
|
)
|
|
|
|
|
5,724
|
|
|
Net cash provided by operating activities
|
|
|
|
$
|
124,885
|
|
|
|
|
$
|
66,602
|
|
|
|
|
$
|
331,249
|
|
|
|
|
$
|
197,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MarkWest Energy Partners, L.P. |
|
|
| Reconciliation of GAAP Financial Measure to Non-GAAP Financial
Measure |
|
|
| Adjusted EBITDA |
|
|
| (unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$
|
153,454
|
|
|
$
|
(18,676
|
)
|
|
$
|
167,988
|
|
|
$
|
74,296
|
|
|
Non-cash compensation expense
|
|
995
|
|
|
|
1,447
|
|
|
|
3,707
|
|
|
|
6,456
|
|
|
Non-cash derivative activity
|
|
(126,802
|
)
|
|
|
50,610
|
|
|
|
(102,681
|
)
|
|
|
(13,980
|
)
|
|
Interest expense (1) |
|
25,687
|
|
|
|
27,802
|
|
|
|
80,235
|
|
|
|
77,777
|
|
|
Depreciation, amortization, impairment, and other non-cash operating
expenses
|
|
50,482
|
|
|
|
43,640
|
|
|
|
148,699
|
|
|
|
122,578
|
|
|
Loss on redemption of debt
|
|
133
|
|
|
|
-
|
|
|
|
43,461
|
|
|
|
-
|
|
|
Provision for income tax
|
|
25,864
|
|
|
|
(10,238
|
)
|
|
|
26,442
|
|
|
|
10,209
|
|
|
Adjustment for cash flow from unconsolidated affiliate
|
|
507
|
|
|
|
1,450
|
|
|
|
1,562
|
|
|
|
1,089
|
|
|
Adjustment related to non-wholly owned, consolidated subsidiaries
|
|
(22,713
|
)
|
|
|
(11,866
|
)
|
|
|
(44,819
|
)
|
|
|
(32,631
|
)
|
|
Other
|
|
(594
|
)
|
|
|
(432
|
)
|
|
|
(1,390
|
)
|
|
|
(912
|
)
|
|
Adjusted EBITDA
|
$
|
107,013
|
|
|
$
|
83,737
|
|
|
$
|
323,204
|
|
|
$
|
244,882
|
|
|
|
|
|
|
|
|
|
MarkWest Energy Partners, L.P.
Distributable Cash Flow
Sensitivity Analysis
(unaudited, in millions)
MarkWest periodically estimates the effect on DCF resulting from its
commodity risk management program, changes in crude oil and natural gas
prices, and the correlation of NGL prices to crude oil. The table below
reflects MarkWest's estimate of the range of DCF for 2012 and forecasted
crude oil and natural gas prices for 2012. The analysis assumes various
combinations of crude oil and natural gas prices as well as three NGL to
crude correlation scenarios, including:
a. The three-year NGL correlation to crude for 2012.
b. One standard deviation above the three-year NGL correlation to crude
for 2012.
c. One standard deviation below the three-year NGL correlation to crude
for 2012.
The analysis further assumes derivative instruments outstanding as of
October 28, 2011, and production volumes estimated through December 31,
2012. The range of stated hypothetical changes in commodity prices
considers current and historic market performance.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas Price |
| Crude Oil Price |
|
|
|
Three-year NGL Correlation to Crude |
|
|
|
$ |
3.00 |
|
|
|
$ |
3.50 |
|
|
|
$ |
4.00 |
|
|
|
$ |
4.50 |
|
|
|
$ |
5.00 |
|
|
|
|
One standard deviation above
|
|
|
|
$
|
586
|
|
|
|
$
|
578
|
|
|
|
$
|
569
|
|
|
|
$
|
561
|
|
|
|
$
|
552
|
| $110 |
|
|
|
Three-year NGL correlation to crude
|
|
|
|
$
|
508
|
|
|
|
$
|
500
|
|
|
|
$
|
491
|
|
|
|
$
|
483
|
|
|
|
$
|
474
|
|
|
|
|
One standard deviation below
|
|
|
|
$
|
434
|
|
|
|
$
|
426
|
|
|
|
$
|
417
|
|
|
|
$
|
409
|
|
|
|
$
|
400
|
|
|
|
|
One standard deviation above
|
|
|
|
$
|
545
|
|
|
|
$
|
536
|
|
|
|
$
|
528
|
|
|
|
$
|
519
|
|
|
|
$
|
511
|
| $100 |
|
|
|
Three-year NGL correlation to crude
|
|
|
|
$
|
475
|
|
|
|
$
|
466
|
|
|
|
$
|
458
|
|
|
|
$
|
449
|
|
|
|
$
|
441
|
|
|
|
|
One standard deviation below
|
|
|
|
$
|
408
|
|
|
|
$
|
399
|
|
|
|
$
|
391
|
|
|
|
$
|
382
|
|
|
|
$
|
373
|
|
|
|
|
One standard deviation above
|
|
|
|
$
|
499
|
|
|
|
$
|
491
|
|
|
|
$
|
482
|
|
|
|
$
|
474
|
|
|
|
$
|
465
|
| $90 |
|
|
|
Three-year NGL correlation to crude
|
|
|
|
$
|
438
|
|
|
|
$
|
430
|
|
|
|
$
|
421
|
|
|
|
$
|
413
|
|
|
|
$
|
404
|
|
|
|
|
One standard deviation below
|
|
|
|
$
|
377
|
|
|
|
$
|
369
|
|
|
|
$
|
360
|
|
|
|
$
|
352
|
|
|
|
$
|
341
|
|
|
|
|
One standard deviation above
|
|
|
|
$
|
453
|
|
|
|
$
|
445
|
|
|
|
$
|
436
|
|
|
|
$
|
428
|
|
|
|
$
|
419
|
| $80 |
|
|
|
Three-year NGL correlation to crude
|
|
|
|
$
|
400
|
|
|
|
$
|
392
|
|
|
|
$
|
383
|
|
|
|
$
|
375
|
|
|
|
$
|
366
|
|
|
|
|
One standard deviation below
|
|
|
|
$
|
346
|
|
|
|
$
|
337
|
|
|
|
$
|
329
|
|
|
|
$
|
317
|
|
|
|
$
|
307
|
|
|
|
|
One standard deviation above
|
|
|
|
$
|
413
|
|
|
|
$
|
404
|
|
|
|
$
|
396
|
|
|
|
$
|
387
|
|
|
|
$
|
379
|
| $70 |
|
|
|
Three-year NGL correlation to crude
|
|
|
|
$
|
365
|
|
|
|
$
|
357
|
|
|
|
$
|
348
|
|
|
|
$
|
340
|
|
|
|
$
|
331
|
|
|
|
|
One standard deviation below
|
|
|
|
$
|
318
|
|
|
|
$
|
309
|
|
|
|
$
|
298
|
|
|
|
$
|
288
|
|
|
|
$
|
280
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table is based on current information, expectations, and beliefs
concerning future developments and their potential effects, and does not
consider actions MarkWest management may take to mitigate exposure to
changes. Nor does the table consider the effects that such hypothetical
adverse changes may have on overall economic activity. Historical prices
and correlations do not guarantee future results.
Although MarkWest believes the expectations reflected in this analysis
are reasonable, MarkWest can give no assurance that such expectations
will prove to be correct and readers are cautioned that projected
performance, results, or distributions may not be achieved. Actual
changes in market prices, and the correlation between crude oil and NGL
prices, may differ from the assumptions utilized in the analysis. Actual
results, performance, distributions, volumes, events, or transactions
could vary significantly from those expressed, considered, or implied in
this analysis. All results, performance, distributions, volumes, events,
or transactions are subject to a number of uncertainties and risks.
Those uncertainties and risks may not be factored into or accounted for
in this analysis. Readers are urged to carefully review and consider the
cautionary statements and disclosures made in MarkWest's periodic
reports filed with the SEC, specifically those under the heading "Risk
Factors."
SOURCE: MarkWest Energy Partners
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
or
E-mail: investorrelations@markwest.com |
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