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Ohio Utica Shale

MarkkWest, EMG finalize Utica infrastructure pact

By Bob Downing Published: February 23, 2013

A Thursday press release from two players in Ohio's Utica shale:

DENVER--(BUSINESS WIRE)--Feb. 21, 2013-- MarkWest Energy Partners, L.P. (MarkWest) (NYSE: MWE) and The Energy & Minerals Group (EMG) announced today the completion of the previously announced Amended and Restated Limited Liability Company Agreement (Amended LLC Agreement) for MarkWest Utica EMG, LLC (Utica Joint Venture). The Utica Joint Venture is dedicated to the development of critical midstream infrastructure on behalf of natural gas producers operating throughout the liquids-rich Utica Shale formation in Ohio.

Under the terms of the Amended LLC Agreement, EMG will increase its initial capital investment in the Utica Joint Venture from $500 million to $950 million. The additional contributions from EMG provide MarkWest with significant financial flexibility in the timing of its capital contributions to the Utica Joint Venture. The Amended LLC Agreement does not modify the ownership interest levels or quarterly distribution percentages as originally set forth between the parties.

In addition, MarkWest expects to receive a distribution from the Utica Joint Venture substantially equivalent to its short-term contribution by the end of February 2013.

In the past three months, MarkWest has successfully raised $1.5 billion in net proceeds from debt and equity transactions. In addition, MarkWest is currently undrawn on its $1.2 billion credit facility and has the ability to issue common units under its $600 million continuous equity program. These transactions, coupled with the execution of the Amended LLC Agreement, provide MarkWest with significant liquidity to fund the majority of its 2013 capital plan.

“We are pleased to announce the expansion of our relationship with EMG in the Utica Shale,” said Frank Semple, Chairman, President and Chief Executive Officer of MarkWest. “The success of our Utica Shale Joint Venture is a direct result of the outstanding drilling results by our producer customers and the execution of our full-service midstream business model in this rapidly developing resource play. Clearly, we believe that the Utica Joint Venture with EMG is creating significant long-term value for our customers and our investors.”

“Due to the tremendous success of producers operating in the Utica Shale, the scale and scope of the Utica Joint Venture has expanded considerably over the course of the past year. This transaction addresses the capital requirements associated with the ongoing system expansion.” stated John Raymond, Managing Partner and CEO of EMG. “We are pleased to further grow and support the relationship we have with the talented people at MarkWest.”

About MarkWest Energy Partners, L.P.

MarkWest Energy Partners, L.P. is a master limited partnership engaged in the gathering, transportation, and processing of natural gas; the transportation, fractionation, marketing, and storage of natural gas liquids; and the gathering and transportation of crude oil. MarkWest has extensive natural gas gathering, processing, and transmission operations in the southwest, Gulf Coast, and northeast regions of the United States, including the Marcellus Shale, and is the largest natural gas processor and fractionator in the Appalachian region.

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Utica and Marcellus shale web sites

Ohio Department of Natural Resources' Division of Oil and Gas Resources Management State agency Web site.

ODNR Division of Oil and Gas Resources Management. State drilling permits. List is updated weekly.

ODNR Division of Geological Survey.

Ohio Environmental Protection Agency.

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Ohio Oil & Gas Energy Education Program.

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Utica Shale, a compilation of Utica shale activities.

Landman Report Card, a site that looks at companies involved in gas and oil leases.FracFocus, a compilation of chemicals used in fracking individual wells as reported voluntarily by some drillers.

Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.

Rig Count Interactive Map by Baker Hughes, an energy services company.

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Stop Fracking Ohio.

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Concerned Citizens of Medina County, a grass-roots group.

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Penn State Marcellus Center.

Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.

Allegheny Front, environmental public radio for Western Pennsylvania.