Quarterly / Earnings Reports | Second Quarter (2Q) Update | Midstream - Construction | Midstream - Processing Plant

Markwest Adds 1.0 BCF Processing Capacity in Q2

By: Markwest Energy Partners, L.P.

Share Print Bookmark    |    Friday,August 07,2015

Markwest Energy Partners LP has announced second quarter 2015 results.

Business Highlights

• On July 13, 2015, the Partnership announced that it has entered into a definitive merger agreement, whereby it would become a wholly owned subsidiary of MPLX LP.
• The transaction is expected to close during the fourth quarter of 2015.
• Placed into service 1.0 Bcf/d of new processing capacity, with the addition of Majorsville VI, Houston IV, and Sherwood VI in the Marcellus; and Cadiz III and Seneca IV in the Utica
• Announced entry into the Permian Basin, with the development of a new 200 MMcf/d processing plant in West Texas to support Cimarex Energy and Chevron Corporation
• Reported record total gas volumes of 5.5 Bcf/d for the second quarter 2015, an increase of 40 percent from the second quarter 2014
• Processing capacity utilization averaged 81 percent during the second quarter 2015
• Reported NGL fractionated volumes from the Marcellus and Utica of over 226,000 Bbl/d during the second quarter 2015, an increase of 60 percent from the second quarter 2014
• Announced strategic combination with MPLX that would create a large-cap, diversified MLP with strong sponsor support

Marcellus:

• In June, the Partnership commenced operations of Majorsville VI, a 200 million cubic feet per day (MMcf/d) processing plant at the Majorsville complex in Marshall County, West Virginia, increasing the total processing capacity of the complex to 1.1 Bcf/d. The Partnership expects to place a seventh 200 MMcf/d plant into service during the second quarter of 2016 to support Southwestern Energy Company and other producers.
• In June, the Partnership commenced operations of Houston IV, a 200 MMcf/d processing plant at the Houston complex in Washington County, Pennsylvania. The Houston complex supports Range Resources with total processing capacity of 555 MMcf/d. To support Range’s growing rich-gas volume, the Partnership is constructing the Fox complex in northern Washington County. Initial development of the Fox complex will consist of a 200 MMcf/d processing plant and 20,000 barrel per day (Bbl/d) de-ethanization facility, which are expected to be placed into service during the fourth quarter of 2016.
• In July, the Partnership completed Sherwood VI, a 200 MMcf/d processing plant at the Sherwood complex in Doddridge County, West Virginia. The new plant is anchored by Antero Resources Corporation and increases the total capacity of the Sherwood complex to 1.2 Bcf/d. The Partnership expects to complete a seventh 200 MMcf/d processing plant at the Sherwood complex in the second quarter of 2016.

Utica:

• In May, MarkWest Utica EMG, a joint venture between the Partnership and The Energy & Minerals Group, announced the execution of definitive agreements with Rice Energy to support the development of their acreage in eastern Ohio.
• In June, MarkWest Utica EMG completed Seneca IV, a 200 MMcf/d processing plant at the Seneca complex in Noble County, Ohio. The plant is anchored by Antero under a long-term, fee-based contract, and expands the total processing capacity of the Seneca complex to 800 MMcf/d.
• In June, MarkWest Utica EMG placed into service Cadiz III, a 200 MMcf/d processing plant at the Cadiz complex in Harrison County, Ohio, increasing the total processing capacity of the complex to 525 MMcf/d. The complex supports growing production from Ascent Resources, LLC, Gulfport Energy Corporation, and other producers. MarkWest Utica EMG is constructing a fourth 200 MMcf/d plant at the Cadiz complex that is expected to be in service by the second quarter of 2016. Once completed, MarkWest Utica EMG will operate over 1.5 Bcf/d in the core rich-gas area of the Utica Shale.

Southwest:

• In May, the Partnership announced an 80 MMcf/d expansion of its Carthage IV plant in Panola County, Texas. The expansion is expected to be completed in the fourth quarter 2015.
• In June, the Partnership announced the development of Hidalgo, a 200 MMcf/d processing plant in Culberson County, Texas. The new facility is scheduled to begin operations during the second quarter of 2016 and will support Cimarex Energy Co. and Chevron Corporation in the Delaware Basin of West Texas.
• In June, the Partnership placed into service a 60-mile trunk line to the Partnership’s Arapaho processing plant in Custer County, OK, to support Newfield Exploration’s development of their STACK acreage in the Cana-Woodford Shale.

Capital Markets

• Year-to-date, the Partnership has issued 636,000 common units and received net proceeds of $39.6 million.
• In May, the Partnership completed a public offering of $1.2 billion of 4.875% senior unsecured notes due in 2025, and in June, the Partnership utilized proceeds from this transaction along with draws from the Credit Facility to redeem its 6.75% Senior Notes due 2020, 6.5% Senior Notes due 2021 and 6.25% Senior Notes due 2022.

Balance Sheet

• As of June 30, 2015, the Partnership had $25.6 million of cash and cash equivalents in wholly owned subsidiaries and $841.2 million of remaining capacity under its $1.3 billion Senior Secured Credit Facility after consideration of $11.3 million of outstanding letters of credit and $447.5 million of outstanding borrowings.