Why MarkWest Energy Partners will focus on investing in shale plays
Must-know highlights from MarkWest Energy Partners' analyst day (Part 1 of 5)
MarkWest Energy Partners
MarkWest Energy Partners L.P. (MWE) is a master limited partnership (or MLP) that provides natural gas gathering, processing, and transportation services to natural gas producers such as Chesapeake (CHK), Statoil (STO), and Noble (NE). Most of these companies are part of the Vanguard Energy ETF (VDE), while MWE is part of the Alerian MLP ETF (AMLP). MWE is also engaged in the gathering, transportation, fractionation, storage, and marketing of natural gas liquids (or NGL), and the gathering and transportation of crude oil. MarkWest has a leading presence in many shale plays, including the Marcellus Shale, Utica Shale, Haynesville Shale, and Granite Wash Formation.
Shale plays drive natural gas supply
As per estimates from the U.S Energy Information Administration (or EIA), shale gas production is forecasted to increase by 65% in the period from 2013 to 2030 and by 2030, the EIA forecasts that shale gas will account for 48% of total U.S natural gas supply. For more on U.S natural gas production trends, read the Market Realist series Overview: Where U.S. natural gas production is headed.
Consistent growth in the nation’s supply of natural gas is a positive for natural gas midstream companies such as MarkWest. With this in mind, MarkWest, at its investor and analyst conference on June 6, 2014, emphasized making midstream investments in prolific shale plays.
This series will focus on MWE’s investment outlook and the growth projects in its pipeline. Continue to the next part for an overview of MWE’s business segments.
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