MarkWest Utica EMG, L.L.C. (“MarkWest Utica EMG”), a joint
venture between MarkWest Energy Partners, L.P. (NYSE: MWE) and The
Energy & Minerals Group, and Ohio Gathering Company, L.L.C.
(“Ohio Gathering”), a joint venture between MarkWest Utica EMG and
Summit Midstream Partners, LLC, today announced the completion of
definitive agreements with American Energy – Utica, LLC (“AEU”), an
affiliate of American Energy Partners, LP, to provide natural gas
gathering, processing, and fractionation services in the Utica
Shale in Ohio.
AEU has acquired a significant acreage position in highly
prolific Utica Shale and with the agreements announced today, has
dedicated more than 60,000 net acres in the rich-gas and condensate
windows to MarkWest Utica EMG and Ohio Gathering.
Under the terms of the agreements, MarkWest Utica EMG will
provide natural gas processing services at its Cadiz complex in
Harrison County, Ohio and its Seneca complex in Noble County, Ohio.
Combined, these two large complexes currently provide 725 million
cubic feet per day of total processing capacity to eight key
producer customers in the Utica Shale. Based on previous
announcements, the two complexes will be expanded to more than 1.3
billion cubic feet per day of processing capacity by the second
quarter of 2015.
MarkWest Utica EMG will fractionate AEU’s natural gas liquids
(“NGLs”) at its jointly owned Hopedale complex, which currently
includes 60,000 barrels per day (“Bbl/d”) of propane and heavier
NGLs fractionation capacity and will be expanded to 120,000 Bbl/d
of capacity by the first quarter of 2015. MarkWest Utica EMG will
utilize its 40,000 Bbl/d de-ethanization facility at the Cadiz
complex to produce purity ethane on behalf of AEU for delivery to
the ATEX pipeline.
Ohio Gathering will provide natural gas gathering and
compression services for all of AEU’s gas produced from the
dedicated area. Ohio Gathering’s system currently consists of
hundreds of miles of low- and high-pressure pipelines and numerous
compression facilities throughout southeastern Ohio, including
Harrison, Guernsey, Belmont, Noble and Monroe counties.
In addition to AEU, MarkWest Utica EMG and Ohio Gathering have
existing long-term, fee-based gathering and or processing and
fractionation agreements with the majority of producers operating
in the southern core area of the Utica Shale, including Antero
Resources Corporation (NYSE: AR), Gulfport Energy Corporation
(NASDAQ: GPOR), Rex Energy Corporation (NASDAQ: REXX), PDC Energy,
Inc. (NASDAQ: PDCE), and others.
“The Utica is one of the fastest growing shale plays in the U.S.
and we are excited to support American Energy as they are quickly
establishing a significant presence in this premier resource play,”
commented Frank Semple, Chairman, President, and Chief Executive
Officer of MarkWest. “Just over two and a half years ago,
MarkWest and EMG began developing the most comprehensive and fully
integrated midstream system in southeastern Ohio, and, together
with Summit, we continue to build critical assets to support our
producer customers’ drilling programs for decades to come.”
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 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 $7.1 billion in
commitments have been allocated across the energy sector since
inception. For additional information, please visit
www.emgtx.com.
About American Energy – Utica, LLC:
American Energy – Utica, LLC is an independent oil and natural
gas company affiliated with American Energy Partners, LP that is
focused on the acquisition, development and production of
unconventional oil, natural gas liquids and natural gas resources
in the Utica Shale play in eastern Ohio
About American Energy Partners, LP:
American Energy Partners, LP was founded by Aubrey K. McClendon
in April 2013 to capitalize on opportunities available in
unconventional resource plays onshore in the U.S. For additional
information, please visit www.americanenergypartners.com.
About Summit Midstream Partners, LP (“SMLP”) and Summit
Midstream Partners, LLC:
SMLP is a growth-oriented limited partnership focused on
developing, owning and operating midstream energy infrastructure
assets that are strategically located in the core producing areas
of unconventional resource basins, primarily shale formations, in
North America. SMLP currently provides natural gas gathering,
treating and processing services pursuant to long-term, primarily
fee-based natural gas gathering and processing agreements with our
customers and counterparties in four unconventional resource
basins: (i) the Appalachian Basin, which includes the Marcellus
Shale formation in northern West Virginia; (ii) the Williston
Basin, which includes the Bakken and Three Forks shale formations
in northwestern North Dakota; (iii) the Fort Worth Basin, which
includes the Barnett Shale formation in north-central Texas; and
(iv) the Piceance Basin, which includes the Mesaverde formation as
well as the Mancos and Niobrara shale formations in western
Colorado and eastern Utah. SMLP owns and operates more than 2,300
miles of pipeline and approximately 240,000 horsepower of
compression. SMLP is headquartered in Dallas, TX with regional
corporate offices in Houston, TX, Denver, CO and Atlanta, GA.
Summit Midstream Partners, LLC (“Summit Investments”) indirectly
owns a 49.5% limited partner interest in SMLP and indirectly owns
and controls the general partner of SMLP, Summit Midstream GP, LLC,
which has sole responsibility for conducting the business and
managing the operations of SMLP. Summit Investments owns, operates
and is developing various crude oil, associated natural gas, and
water-related midstream energy infrastructure assets in the Bakken
Shale in North Dakota and in the DJ Niobrara Shale in Colorado.
Summit Investments is also developing natural gas gathering and
condensate stabilization infrastructure in the Utica Shale in
southeastern Ohio under a joint venture agreement with affiliates
of MarkWest Energy Partners, L.P. and The Energy & Minerals
Group. Summit Investments is a privately held company owned by
members of management, funds controlled by Energy Capital Partners
II, LLC, and certain of its affiliates.
MarkWest Energy Partners, L.P.Frank Semple,
866-858-0482Chairman, President & CEOorNancy Buese,
866-858-0482Executive VP & CFOorJosh Hallenbeck, 866-858-0482VP
of Finance & Treasurerinvestorrelations@markwest.com