By 2017 MWE Alone Will Produce Over 700,000 barrels/day NGLs.....
It was previously reported here that a MWE construction mgr said that by 2017 MWE alone would produce at least 200,000 barrels/day of propane. And in MWE's just posted presentation it notes that by 2017 it will go from essentially zero today to 300,000 barrels of ethane/day. Add in a couple of hundred thousand barrels/day of natural gasoline,butanes,pentanes etc and you get to 700,000 barrels/day of natural gas liquids REAL easy. The implications here are major: 1. The Utica/Marcellus is turning out bigger than anyone could have expected. 2. MWE alone can fill ALL the announced pipelines: ATEX(140,000 b/d),JV pipeline(400,000 b/d), mariner west(50,000 b/d), and Mariner East(50,000 b/d). 3. Drilling more/deeper in the Marcellus/Utica will probably ratchet up these numbers 4. SXL better get rolling BIG on Marcus Hook or someone will build another East Coast terminal either on the lower DE River in deeper water or on the Chesapeake Bay. 5. MWE's two x 200 RR tank car yards may not be enough 6. With EPD now building a PDH plant at Mont Belvieu to convert propane into propylene MWE could easily start the chemical industry rolling in western PA by building a PDH plant and supplying propylene to a polypropylene manufacturer followed by a couple of film extrusion lines. 7. MWE now getting too big for even EPD to buy out. However, one of the Arab countries might use a sovereign wealth fund to do it. I note that Abu Dhabi owns NOVA which is taking MWE's initial ethane production and Saudi Arabian interests sucked up GE's big Plastics operation.....8. MWE clearly en route to becoming a BIG HITTER...and 9. MWE better take REAL GOOD CARE of Frank Semple, current CEO. IMO great results come from great mgmt...and Semple is there alongside of Kinder Morgan's Kinder and that late Dan Duncan of EPD.
Management in my opinion is the MOST IMPORTANT METRIC and the Excellent management extends beyond Frank Semple to include John Mollenkropf, Randy Nickerson on the operations side and Nancy Buese to head the financial side. Putting them all together we have to give a tip of our hat to founder John Fox for putting the team together and the Board of Directors that keep everyone focused.
In my opinion the major move was MWE bringing in EMG in 2009 in the depths of the financial crisis to help shoulder the burden of needed liquidity at the time.
I also believe that MWE and EMG now partnering with Kinder Morgan will drive the continuation of the massive growth coming for MWE going forward.
The MWE puzzle keeps getting larger and the more pieces that get added get added on the outside of MWE's core area that is dependant on MWE's solid core in the center. The new Kinder Morgan JV takes MWE to NW Ohio-a pipeline 900 miles into Louisiana and 200 miles further into Texas opens up the possibility of shipping to South America. MWE is already shipping to Europe and Sarnia Canada. Mr Semple's master plan to give his customer producers a one stop shopping experience where MWE handles everything from the well-head to the end user customer will be a huge money-maker going forward.
Three months ago MWE had 18 processing plants under construction. They completed 3 and added 8 additional facilities to reach the current total of 23 under construction. More money will be needed and MWE is joining forces with another heavy hitter in Kinder Morgan. I think Mr Semple is planning to eventually sell its portion of the pipeline to Louisiana and Texas for the buyout of the new Ohio Complex and whatever is built in Louisiana and/or Texas. EMG will also be bought out by MWE (MWE currently owns 60% of the JV and has the right to increase that to 70%)
A lot of moving pieces in this story and we will just have to wait to see how it plays out.
Hach I always love your analytical mind . You are most responsible for me being in MWE. I was just thinking today of the most likely buy out mlp candidates and MWE and SXL come to mind. SXL perhaps in a couple of years by ETP As far as MWE only KMI and perhaps a major oil company US EUROPE based and now at 110. Funny do remember when at 29 we talked 60. Now 80 is around the corner. It been a good ride with 2-3 years to go Of course ACMP to WMB makes sense once WPZ gets going positively