The Utica’s a key investment for MarkWest Energy Partners in 2014

Market Realist

Must-know highlights from MarkWest Energy Partners' analyst day (Part 4 of 7)

(Continued from Part 3)

MWE’s presence in the Utica Shale

MWE has partnered with Energy and Minerals group to form MarkWest Utica. MWE has also joined hands with Summit Midstream Partners (SMLP), and through these partnerships, MWE, through its Utica segment, is on its way to position itself as a fully integrated gathering, processing, and fractionation provider. The segment currently has a processing capacity of 585 MMcf/d, a gathering capacity of 385 MMcf/d, and a fractionation capacity of 24,000 bpd (barrels per day).

The Utica segment has four operational units. These include the CADIZ processing complex, the Seneca processing complex, the Utica Condensate, and the Hopedale fractionation facility.

Growth plans for 2014

In February 2014, MarkWest Utica EMG completed operations at Seneca II, a 200 MMcf/d processing plant at the Seneca Complex in Ohio. The Seneca Complex currently consists of two cryogenic processing plants totaling 400 MMcf/d of capacity. A third 200 MMcf/d plant at the complex was announced in May of 2013 and is expected to be completed during the second quarter of 2014. Also, in February this year, MarkWest announced development of a fourth processing plant with 200 MMcf/d of capacity, to be operational by mid-2015.

The Cadiz complex in Ohio also adding a processing capacity of 200 MMcf/d as well as a de-ethanization facility of 40,000 bpd by the end of 2014.

Plus, MarkWest Utica EMG and Summit Midstream are constructing a condensate facility in Ohio. Phase I of the condensate project includes a stabilization capacity of 23,000 bpd, which will be operational by the end of 2014.

For its Hopedale fractionation facility, MWE will be adding a fractionation facility of 60,000 bpd.

MWE forecasts the year-over-year processed volumes to increase by approximately 450% and increase the total processing capacity in the Utica to approximately 1Bcf/d.

Note that MWE is a component of several ETFs, including the Alerian MLP ETF (AMLP), Global X MLP ETF (MLPA), Alerian Energy Infrastructure ETF (ENFR), and Global X MLP & Energy Infrastructure ETF (MLPX).

The following parts of this series cover additional growth plans for MWE’s other segments.

Continue to Part 5

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