☰ Menu
Ohio Utica Shale

MarkWest sells Marcellus-gathering assets in West Virginia

By Bob Downing Published: June 5, 2013

From MarkWest Energy Partners:


MarkWest Energy Partners Announces Sale of Marcellus Shale Gathering Assets in West Virginia to Summit Midstream Partners

DENVER--(BUSINESS WIRE)--Jun. 5, 2013-- MarkWest Energy Partners, L.P. (NYSE: MWE) (MarkWest) and Summit Midstream Partners, LP (NYSE: SMLP) (Summit) announced today the execution of definitive agreements whereby Summit will acquire certain gas gathering assets from MarkWest in Doddridge County, West Virginia for $210 million in cash. Rich-gas gathered by these assets is dedicated to MarkWest for processing at the Sherwood complex, also located in Doddridge County, West Virginia. The transaction is expected to close in June 2013.

The assets included in this transaction consist of over 40 miles of newly constructed high-pressure gas gathering pipelines, certain rights-of-way associated with the pipeline, and two compressor stations totaling over 21,000 horsepower of combined compression. The rich-gas gathering and compression system is supported by a long-term, fee-based contract with an affiliate of Antero Resources Corporation (Antero), anchor producer at MarkWest’s Sherwood processing complex. Antero is a leading Marcellus Shale producer with over 312,000 net acres in the southwestern core of the play. In northern West Virginia, Antero has 14 drilling rigs currently in operation and has access to 400 million cubic feet per day (MMcf/d) of fully dedicated cryogenic processing capacity at the Sherwood complex. In order to support Antero’s rapidly growing rich-gas production, MarkWest expects to install two additional plants at the Sherwood complex by mid-2014, bringing total processing capacity to 800 MMcf/d.

Summit’s acquisition of premier gathering infrastructure from MarkWest will further enhance its presence as a leading growth-oriented midstream energy company focused on developing, owning and operating strategically located assets in North America’s growing unconventional resource basins. This transaction represents Summit’s entry into the largest producing shale play in the U.S. and a highly prospective growth opportunity, supported by significant rich-gas production from Antero and potential future producers. This acquisition further enhances Summit’s scale to execute its growth strategy and provides greater geographic and customer diversification.

The proceeds from this transaction will provide MarkWest with additional financial flexibility to fund growth capital investments associated with more than 18 previously announced major midstream infrastructure projects primarily in the Marcellus and Utica Shales. By the end of 2014, MarkWest is expected to have over 4 billion cubic feet per day of processing capacity and 275,000 barrels per day of fractionation capacity in the heart of two of America’s most prolific shale plays.

Jefferies LLC acted as MarkWest’s exclusive financial advisor and Barclays Capital, Inc. acted as Summit’s exclusive financial advisor in connection with this transaction.

“Summit is a high quality midstream operator and we are pleased to announce the sale of our rich gas gathering system in Doddridge County,” said Frank Semple, Chairman, President and Chief Executive Officer of MarkWest. “This transaction provides MarkWest with ongoing financial flexibility to support our large set of processing, fractionation and NGL transportation projects that are currently being developed in the Marcellus and Utica Shales.”

Steve Newby, President and Chief Executive Officer of Summit, commented, “The Sherwood asset acquisition represents Summit’s initial entry into the Marcellus Shale, one of the largest, most active and prolific basins in North America. We are excited about establishing a footprint in this world-class basin and beginning a strategic relationship with MarkWest. We look forward to working with MarkWest on this and future opportunities to expand this relationship and complement its industry leading position in the Marcellus and Utica.”



See the most recent drilling report and an injection wells map From
  • Main Blog Promo
  • Cavs Blog Promo
  • Browns Blog Promo
  • Indians Blog Promo
  • Beer Blog Promo
  • Fracking Blog Promo
  • High School Blog Promo
  • Zips Blog Promo
  • Akron Dish Food Blog
Prev Next

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.

Ohio State University Extension.

Ohio Farm Bureau.

Ohio Oil and Gas Association, a Granville-based group that represents 1,500 Ohio energy-related companies.

Ohio Oil & Gas Energy Education Program.

Energy In Depth, a trade group.

Marcellus and Utica Shale Resource Center by Ohio law firm Bricker & Eckler.

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.

Shale Sheet Fracking, a Youngstown Vindicator blog.

National Geographic's The Great Shale Rush.

The Ohio Environmental Council, a statewide eco-group based in Columbus.

Buckeye Forest Council.

Earthjustice, a national eco-group.

Stop Fracking Ohio.

People's Oil and Gas Collaborative-Ohio, a grass-roots group in Northeast Ohio.

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

No Frack Ohio, a Columbus-based grass-roots group.

Fracking: Gas Drilling's Environmental Threat by ProPublica, an online journalism site.

Penn State Marcellus Center.

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

Allegheny Front, environmental public radio for Western Pennsylvania.