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MarkWest Energy’s key operational updates

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Mar. 11 2015, Updated 6:06 p.m. ET

Operational segments

MarkWest Energy Partners (MWE) operates in four business units:

  • Marcellus
  • Utica
  • Northeast
  • Southwest

MWE is one of the top five holdings of the Alerian MLP ETF (AMLP). The company makes up about 7.7% of the ETF.

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Marcellus highlights

  • MWE reported that processed volumes increased 15% sequentially and 82% year-over-year in its Marcellus segment.
  • The company announced the completion of the Sherwood V plant, which processes 200 million cubic feet of gas per day. The plant supports production for Antero Resources (AR). The Sherwood complex now has a total processing capacity of 1 billion cubic feet per day.
  • In December, Markwest Energy commenced operations of the Mobley IV plant, a 200-million-cubic-feet-per-day plant in West Virginia. This plant supports production for EQT Corporation (EQT) via long-term, fee-based agreements.
  • The partnership also announced the development of Majorsville VII, a 200-million-cubic-feet-per-day processing plant in the Majorsville complex. The facility will support Southwestern Energy Company (SWN) and Statoil ASA (STO) when it commences operations in 2016. The new plant should increase total capacity at the Majorsville complex to about 1.3 billion cubic feet per day.

Utica highlights

  • The company reported a 42% sequential increase and a nearly 300% year-over-year increase in its processed volumes in the Utica segment.
  • MarkWest Utica EMG, a joint venture between MWE and the Energy & Minerals Group, announced that it commenced operations of the 200-million-cubic-feet-per-day Cadiz II plant in November. The plant supports production from Gulfport Energy Corporation (GPOR). The joint venture also announced the development of Cadiz IV, a 200-million-cubic-feet-per-day processing plant that will begin operations in 1Q16 and increase the total processing capacity to over 1.5 billion cubic feet per day.
  • A second fractionation facility at the Hopedale complex commenced operations in December. The new facility, which jointly supports natural gas liquids (or NGLs) production from the Marcellus and Utica shales, doubled propane and heavier NGL fractionation capacity to 120,000 barrels per day.
  • The partnership announced the development of a third fractionation facility, a 60,000-barrel-per-day fractionator. The company expects operations to commence in 1Q16, increasing total fractionation capacity to 283,000 barrels per day.
  • The press release also noted the commencement of Ohio Condensate Company’s condensate stabilization facility in Harrison County, Ohio. Ohio Condensate Company is an entity owned by MarkWest Utica EMG Condensate and Summit Midstream Partners (SMLP). The new facility has 23,000 barrels per day of condensate stabilization capacity.

We will continue to discuss MWE’s operational highlights in the next part of this series.

 

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