DENVER--(BUSINESS WIRE)--Dec. 29, 2011--
MarkWest Energy Partners, L.P. (NYSE: MWE) and The Energy & Minerals
Group (EMG) today announced the closing of the previously announced
acquisition by MarkWest of the 49 percent interest in MarkWest Liberty
Midstream & Resources, LLC held by EMG.
The acquisition consideration included approximately $1.0 billion of
cash and the issuance of 19.95 million unregistered MWE Class B Units to
EMG. MarkWest expects that on a DCF per unit basis, the acquisition is
immediately accretive in 2012 and would be up to 6 percent accretive in
2013 and beyond.
MarkWest and EMG are also entering into a new Utica Shale midstream
joint venture to develop significant natural gas processing and NGL
fractionation, transportation, and marketing infrastructure in eastern
Ohio beginning in 2012. Under the terms of the Utica joint venture, EMG
will fund a majority of the initial capital expenditures required to
develop the Utica midstream infrastructure. MarkWest and EMG expect to
issue a press release in January 2012 with additional details regarding
the Utica joint venture and its planned activities in the Utica Shale.
“We are very pleased to complete the acquisition of EMG’s interest in
the Liberty joint venture,” said Frank Semple, Chairman, President and
Chief Executive Officer of MarkWest. “The Liberty joint venture has been
very successful in leveraging its first-mover advantage to become the
largest provider of world-class midstream infrastructure critical to the
development of the liquids-rich area of the Marcellus. Given the quality
and compelling producer economics of the Marcellus shale, we anticipate
significant additional growth in our producers’ volumes and our
midstream assets for years to come. We are also pleased to be forming a
joint venture with EMG to develop integrated midstream infrastructure in
the liquids-rich corridor of the Utica Shale and look forward to
providing more details in early 2012.”
"We are pleased to announce the completion of the sale of EMG's interest
in the Liberty joint venture to MarkWest,” stated John Raymond, Managing
Partner and CEO of EMG. “By virtue of this transaction, MarkWest has
captured the strategic value associated with the consolidated interest
in the joint venture and EMG will become a significant equity owner of
MarkWest. As also previously announced, we look forward to leveraging
the expertise of EMG and MarkWest to jointly develop a fully integrated
system to maximize the value of the liquids-rich natural gas production
of the Utica shale."
Morgan Stanley & Co. LLC acted as the exclusive financial advisor and
Vinson & Elkins LLP served as legal counsel to MarkWest in connection
with the transaction.
Citigroup acted as the exclusive financial advisor and Locke Lord LLP
served as legal counsel to EMG in connection with the transaction.
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 and fractionator 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 $3.3 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 MarkWest files with the SEC, including
its Annual Report on Form 10-K for the year ended December 31, 2010, and
its Quarterly Reports on Form 10-Q for the quarters ended June 30, 2011,
and 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.” MarkWest
does not undertake any duty to update any forward-looking statement
except as required by law.
Source: MarkWest Energy Partners
MarkWest Energy Partners, L.P.
Chairman, President and CEO
Senior VP and CFO
VP of Finance/Treasurer
Energy & Minerals Group
John Raymond, 713-579-5000
Partner & CEO
Jeff Rawls, 713-579-5000
Patrick Wade, 713-579-5000