DENVER--(BUSINESS WIRE)--Oct. 22, 2014--
MarkWest Energy Partners, L.P. (NYSE: MWE) (“MarkWest” or “the
Partnership”) today announced that the Board of Directors of the General
Partner of MarkWest Energy Partners, L.P., declared a cash distribution
of $0.89 per common unit for the third quarter of 2014, for an implied
annual rate of $3.56 per common unit. The third quarter 2014
distribution represents an increase of $0.04 per common unit, or 4.7
percent, compared to the third quarter 2013 distribution and an increase
of $0.01 per common unit, or 1.1 percent, compared to the second quarter
The third quarter 2014 distribution is payable November 14, 2014, to
unitholders of record on November 5, 2014. The ex-dividend date is
November 3, 2014.
Increases 2014 Guidance
As a result of strong year-to-date operational and financial
performance, the Partnership is increasing its 2014 DCF guidance to a
range of $680 to $700 million and 2014 Adjusted EBITDA to a range of
$860 to $880 million. Achieving the mid-point of these revised ranges
would result in year-over-year DCF growth of 43 percent and
year-over-year Adjusted EBITDA growth of 44 percent.
The Partnership continues to develop its leading midstream presence in
the Northeast with the addition of critical gathering, processing,
fractionation, and NGL transportation infrastructure to support over 20
producer customers in the Marcellus and Utica Shales.
Due to accelerating gas volumes from producer customers, utilization of
the Partnership’s processing and fractionation assets in the Northeast
continues to increase. In the Marcellus Shale, total average utilization
of all processing facilities increased from 79 percent to approximately
84 percent over the second to third quarters 2014. In the Utica Shale,
total average utilization of processing facilities increased from 56
percent to approximately 63 percent over the same period. The
Partnership’s propane and heavier NGL fractionation capacity has also
experienced a significant gain in average utilization, increasing from
75 percent to approximately 90 percent over the second to third quarters
At the Sherwood complex in Doddridge County, West Virginia the
Partnership completed an expansion in August with the startup of
Sherwood IV, a new 200 million cubic feet per day (MMcf/d) processing
plant. The Sherwood complex currently consists of four plants totaling
800 MMcf/d of processing capacity and supports growing rich-gas
production from Antero Resources Corporation (NYSE: AR) (Antero) and
other producers. Antero’s significant Marcellus development program
throughout northern West Virginia continues to anchor the rapid growth
of volumes at the Sherwood complex. Prior to the end of 2014, the
Partnership is expected to complete Sherwood V and next year is
scheduled to commence operations of plants VI and VII. Upon completion
of these facilities, the Sherwood complex will have 1.4 billion cubic
feet of total processing capacity. In addition to gas processing
infrastructure, the Partnership is also developing 40,000 barrels per
day (Bbl/d) of ethane fractionation capacity at the Sherwood complex by
the third quarter of 2015.
At the Cadiz complex in Harrison County, Ohio, MarkWest Utica EMG, a
joint venture between the Partnership and The Energy & Minerals Group,
is in startup mode for Cadiz II, a 200 MMcf/d processing plant that
supports Gulfport Energy Corporation (NASDAQ: GPOR) (Gulfport Energy)
and other producers. The new facility increases total processing
capacity at the Cadiz complex in Harrison County, Ohio to 325 MMcf/d.
MarkWest Utica EMG is currently constructing Cadiz III, a 200 MMcf/d
plant that is scheduled to become operational in the first quarter of
The Partnership now has 19 major infrastructure projects under
development in the Northeast, with three projects scheduled to be
completed by the end of 2014.
MarkWest Energy Partners, L.P. is a master limited partnership engaged
in the gathering, processing and transportation of natural gas; the
gathering, transportation, fractionation, storage and marketing of
natural gas liquids; and the gathering and transportation of crude oil.
MarkWest has a leading presence in many unconventional gas plays
including the Marcellus Shale, Utica Shale, Huron/Berea Shale,
Haynesville Shale, Woodford Shale and Granite Wash formation.
This press release is intended to be a qualified notice under Treasury
Regulation Section 1.1446-4(b). Brokers and nominees should treat one
hundred percent (100.0%) of MarkWest’s distributions to non-U.S.
investors as being attributable to income that is effectively connected
with a United States trade or business. Accordingly, MarkWest’s
distributions to non-U.S. investors are subject to federal income tax
withholding at the highest applicable effective tax rate.
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 (SEC). 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, 2013. 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.
About The Energy & Minerals Group:
EMG is the management company for a series of specialized private equity
funds. The Firm was founded by John Raymond (majority owner and CEO) and
John Calvert in 2006. EMG focuses on investing across various facets of
the global natural resource industry including the upstream and
midstream segments of the energy complex. EMG has approximately $17.5
billion of regulatory assets under management (RAUM) and approximately
$7.9 billion in commitments have been allocated across the energy sector
since inception. For additional information, please visit www.emgtx.com.
Source: MarkWest Energy Partners, L.P.
MarkWest Energy Partners, L.P.
Frank Semple, 866-858-0482
President & CEO
Nancy Buese, 866-858-0482
VP & CFO
Josh Hallenbeck, 866-858-0482
Finance & Treasurer