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MWE’s business units
MarkWest Energy Partners, a master limited partnership (or MLP), is a major provider of midstream services in the natural gas industry. It’s a component of several ETFs, including the Alerian MLP ETF (AMLP), Global X MLP ETF (MLPA), Alerian Energy Infrastructure ETF (ENFR), and Global X MLP & Energy Infrastructure ETF (MLPX).
MWE’s operations are divided into four business units—Marcellus, Utica, Northeast, and Southwest.
The Marcellus segment
MarkWest is the largest processor of natural gas in the Marcellus Shale, providing natural gas midstream services in southwest Pennsylvania and northwest Virginia. MarkWest has five processing complexes in the Marcellus. These include the Houston Complex and Keystone Complex in Pennsylvania and the Majorsville Complex, Mobley Complex, and Sherwood Complex in West Virginia. The combined processing capacity at all these complexes is ~2,235 MMcf/d (million cubic feet per day).
The Utica segment
in December 2011, MWE along with Energy & Minerals Group (or EMG) formed a new Utica Shale midstream joint venture. The Utica segment has two complexes—the Cadiz Complex and the Seneca Complex in Ohio. This segment has a total capacity of approximately 585 MMcf/d.
The Northeast segment
This segment includes five processing complexes (Kenova, Boldman, Cobb, Kermit, and Langley, which are natural gas processing complexes) and a natural gas liquids pipeline and fractionation facility in Kentucky and southwest Virginia. This segment also operates a crude oil pipeline in Michigan regulated by the Federal Energy Regulatory Commission, or FERC.
The Southwest segment owns and operates several midstream assets, including the East Texas system located in Panola, Harrison, and Rusk counties, a gathering system in the Granite Wash Formation, the Javelina processing and fractionation facility in Texas, a cryogenic gas processing plant in Texas, and many others. This segment accounted for the company’s maximum revenue generation at the end of the year in December 2013.
For fiscal 2013, the Southwest segment accounted for 55% of the company’s revenue, whereas the Marcellus, Utica, and Northeast segments each accounted for 31%, 2%, and 12% of revenues, respectively.
To find out which of these business segments will see major investments this year, continue to the following parts of this series.
© 2013 Market Realist, Inc.