DENVER--(BUSINESS WIRE)--May. 4, 2012--
MarkWest Energy Partners, L.P. (MarkWest) (NYSE: MWE) today announced
the execution of two major agreements related to its ongoing development
of the hydrocarbon-rich area of the Marcellus shale. The first agreement
is a long-term fee-based arrangement with affiliates of Chesapeake
Energy Corporation (NYSE:CHK) to expand its Marcellus gas processing
capacity to support Chesapeake’s rapidly growing rich natural gas
production in an approximately 185 square mile dedication area, which
includes portions of Brooke, Ohio, and Marshall Counties in northern
West Virginia and Washington County in southwestern Pennsylvania. The
second agreement is a long-term fee-based arrangement with Antero
Resources Appalachian Corporation (Antero Resources) to install
significant gathering facilities in support of Antero’s rapidly growing
rich natural gas production in Doddridge and Harrison Counties in
northern West Virginia.
In support of the agreement announced today with Chesapeake, MarkWest
will expand the gas processing capacity at its Majorsville, West
Virginia processing complex by 400 million cubic feet per day (MMcf/d)
from 670 MMcf/d to approximately 1.1 billion cubic feet per day (Bcf/d).
This expansion capacity is being provided in exchange for the
significant dedication of acreage made by Chesapeake to the Majorsville
processing complex. MarkWest will construct two new 200 MMcf/d cryogenic
gas plants that are expected to be completed in late 2013 and mid 2014.
The gathering facility expansion to support Antero Resources will expand
MarkWest’s existing gathering operations in southwestern Pennsylvania
into a key part of West Virginia and includes the installation of two
large high-pressure gathering headers and associated compressor stations
in Doddridge and Harrison Counties, West Virginia. The new gathering
system will have the capacity to initially deliver more than 300 MMcf/d
of Antero’s rich gas to MarkWest’s Sherwood gas processing complex. The
first phase of the gathering system will be completed in the third
quarter of 2012 in conjunction with the completion of the 200 MMcf/d
Sherwood I processing facility. MarkWest previously announced the
expansion of the Sherwood processing complex to include the construction
of the 200 MMcf/d Sherwood II processing facility, which is expected to
come online in the second quarter of 2013 and will increase the total
capacity of the Sherwood gas processing complex to 400 MMcf/d.
The Majorsville expansion will increase MarkWest’s total processing
capacity in the rich gas area of the Marcellus to more than 2.1 Bcf/d,
essentially all of which is supported by long-term agreements with
MarkWest’s producer customers. All of the natural gas liquids (NGLs)
recovered at MarkWest’s four large Marcellus processing complexes in
southwest Pennsylvania and northern West Virginia are or will be
connected through MarkWest’s extensive NGL gathering system for delivery
to its Houston, Pennsylvania fractionation, storage, and marketing
complex. MarkWest previously announced that, to support its significant
Marcellus expansions, it is constructing a second fractionation complex
in Harrison County, Ohio, in conjunction with its Utica shale expansion
and associated Utica shale joint venture. The Houston, PA and Harrison,
OH fractionation complexes will be connected through MarkWest’s NGL
gathering system to provide significant reliability, flexibility and
critical downstream marketing options. Following the completion of its
announced Marcellus and associated Utica gas gathering, processing and
fractionation facilities, MarkWest and its affiliates will have the
capacity to produce approximately 155,000 barrels per day (Bbl/d) of
purity ethane and 120,000 Bbl/d of propane and heavier NGLs. This
represents more than 10 percent of the total US supply of purity ethane
and more than 5 percent of the total US supply of propane. The first
phase of MarkWest’s purity ethane facilities are expected to come online
in mid 2013 in conjunction with the completion of Mariner West, a
pipeline project jointly developed by MarkWest and Sunoco Logistics L.P.
(NYSE: SXL) to deliver Marcellus ethane to petrochemical markets in
Sarnia, Ontario, Canada.
Both of the projects announced today were included in MarkWest’s
previously announced 2012 capital investment estimates. MarkWest will
discuss both projects in more detail at the Partnership’s first quarter
earnings call.
“We are excited to expand our existing relationships with Chesapeake and
Antero,” said Frank Semple, Chairman, President and Chief Executive
Officer of MarkWest. “MarkWest continues to focus on providing best of
class fully integrated midstream services that are critical to the
rich-gas development in the northeast United States and we are pleased
to further strengthen our leading midstream presence in the liquids-rich
area of the Marcellus.”
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 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,
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, L.P.
MarkWest Energy Partners, L.P.
Frank Semple, Chairman,
President & CEO
Nancy Buese, Senior VP & CFO
Josh
Hallenbeck, VP of Finance & Treasurer
(866) 858-0482
investorrelations@markwest.com
