MHR seers more processing need in 2015 after current/planned Mobley trains on line
"...Gary C. Evans - Chairman and Chief Executive Officer
Well, the pipe that we've laid in Eureka is a 20-inch pipe that, by its own characteristics, can move 200 million a day. But with compression, you get up to 350 million. So -- and that's likely going to happen. So -- and in some parts of Ohio, we're actually laying more than one line to handle liquids. So it's kind of a bit of a jigsaw puzzle because the wells are new and we're testing. And in order for us to commit the kind of money that take to lay pipe to a certain area, we've got to have pretty big commitments from the producers. So one of the reasons the production volumes have jumped so rapidly here recently, the throughput volumes, has been other operators, not really us. Jim's wells are just now coming on. It's been operators over in West Virginia that have been on a significant completion stage, primarily over in Tyler County. So you're in the area that we're seeing this good volume growth. The fact that the liquids are 25%, 27% gives us a nice boost, about $1 to $1.50 in add-on, and obviously, this makes it very competitive. So as Jim puts on and as other operators put on dry gas wells, we actually think that'll probably help out the system a bit by combining dry gas with the wet gas with respect to diluting the liquid somewhat. So right now, we got plenty of capacity at Mobley. We have 200 million a day at that plant, of which, again, we've used 125 million now. So there is another train that has capacity as well. So we're comfortable that we've got the next year, 1.5 years handled, and then we'll probably have to add more cryogenic processing in Ohio sometime in the next year...."
I'm betting that MHR is still angry that they sold their partially finished Mobley area cryo plant to MWE, especially now that EQT has just signed with MWE for another 200million cryo operation there....
MHR is a group that has never gotten it straight. They blamed MWE for shutin and the truth was MHR has problems with permits in its own pipe. The good part is MHR pipe should be sold in q1 of 2014. MHR needs to focus on its own company and try to get it operating efficiently. Fwiw I am long MHR preferreds.