|

MPLX Says Market “Underappreciates” Growth Potential in Marcellus

In late 2015, MPLX (i.e., Marathon Petroleum) bought out and merged in the Utica Shale’s premier midstream company, MarkWest Energy, for $15 billion (see MarkWest Energy Investors/Unitholders Approve Merger with Marathon). The “new” MarkWest, aka MPLX, plays on a much larger stage now, including ownership and operation of major assets in the Permian Basin and in the Bakken Shale, in addition to the Marcellus/Utica. Last week, MPLX issued its fourth quarter 2023 update. MPLX Chairman and CEO Michael Hennigan had an interesting comment during a conference call: “I think the market is underappreciating the growth potential up in the Marcellus.”
Continue reading

|

MPLX 2Q – Harmon II Processing Plant Coming Online in 1H24

In late 2015, MPLX (i.e., Marathon Petroleum) bought out and merged in the Utica Shale’s premier midstream company, MarkWest Energy, for $15 billion (see MarkWest Energy Investors/Unitholders Approve Merger with Marathon). The “new” MarkWest, aka MPLX, plays on a much larger stage now, including ownership and operation of major assets in the Permian Basin and in the Bakken Shale, in addition to the Utica/Marcellus. However, most of MPLX’s activity (and revenue) comes from the M-U. Yesterday MPLX issued its second quarter 2023 update.
Continue reading

| | | | | |

MarkWest Mails Spill Cleanup Notice to Wrong Township in SWPA

tempest in a teapot

In late December 2022, piping at the MarkWest Imperial Compressor Station in Robinson Township, Washington County, PA, froze during Winter Storm Elliot. The frozen line burst, spilling roughly 10,000 gallons of condensate on the ground. On May 23, 2023, MarkWest Liberty Midstream & Resources LLC submitted a Notice of Intent (NOI) to the Pennsylvania Dept. of Environmental Protection (DEP) to clean up soil and groundwater contaminated by the spill. MarkWest’s consultant Tetra Tech sent a copy of the notice to Robinson Township–except they sent it to the WRONG Robinson Township.
Continue reading

| | | | | |

PA AG Indicts 2 Workers for Conspiracy, Fraud re MarkWest Pipeline

On Friday, Pennsylvania Attorney General Michelle Henry announced her office has filed criminal charges against two men for falsifying paperwork and risking catastrophe while working on a natural gas pipeline project in western PA. The AG’s Environmental Crime Section and the US Department of Transportation’s Office of Inspector General investigated a case of suspected fraud in falsifying records for portions of a MarkWest Liberty Pipeline to transport NGLs.
Continue reading

| | | | | |

MPLX 1Q – Harmon II Processing Plant Coming Online in 2024

In late 2015, MPLX (i.e. Marathon Petroleum) bought out and merged in the Utica Shale’s premier midstream company, MarkWest Energy, for $15 billion (see MarkWest Energy Investors/Unitholders Approve Merger with Marathon). The “new” MarkWest, aka MPLX, plays on a much larger stage now, including ownership and operation of major assets in the Permian Basin and in the Bakken Shale, in addition to the Utica/Marcellus. However, most of MPLX’s activity (and revenue) comes from the M-U. Yesterday MPLX issued its first quarter 2023 update.
Continue reading

| | | | | | | | | |

Biden DOJ, EPA Announce $25M “Settlement” with Williams, Others

Yesterday the Bidenistas at the Dept. of (In)Justice (DOJ) and the Environmental Protection Agency (EPA) announced a “settlement” (i.e. bullying) with three pipeline companies–Williams, MPLX, and Kerr-McGee Gathering. The settlement requires the three to pay a combined $9.25 million in civil penalties and make improvements at 25 gas processing plants and 91 compressor stations in 12 states, including Ohio and West Virginia, worth another $16 million. The two federal agencies claimed the pipeline companies were violating federal and state clean air laws related to leak detection and repair (LDAR) requirements for natural gas processing plants at various facilities they own and operate across the country.
Continue reading

| |

MPLX (former MarkWest) Reports Gathering & Processing Less M-U Gas

In late 2015, MPLX (i.e. Marathon Petroleum) bought out and merged in the Utica Shale’s premier midstream company, MarkWest Energy, for $15 billion (see MarkWest Energy Investors/Unitholders Approve Merger with Marathon). The “new” MarkWest, aka MPLX, plays on a much larger stage now, including ownership and operation of major assets in the Permian Basin and in the Bakken Shale, in addition to the Utica/Marcellus. On Tuesday, MPLX issued its fourth quarter and full-year 2022 update. The company reports gathering and processing slightly less natgas in the M-U in 2022. But it was a comment from MPLX’s CEO during a conference call that really hit us in the gut.
Continue reading

| | | | | | | | |

How EOG’s Move into Ohio Utica Shale Will Affect Midstream

In 2020, EOG Resources, one of the largest oil and gas drillers in the U.S. (with international operations in Trinidad and China), sold *all* of its Marcellus assets, which were located in Bradford County, PA, to Tilden Resources for $130 million (see EOG Resources Sells Marcellus Assets for $130M, Exits Basin). EOG left the M-U building, so to speak. But the company couldn’t stay away. In November, we told you that EOG admitted to stealthily amassing 395,000 net acres in the Ohio Utica for very little money (see EOG Resources Accumulates 395K Acres in Ohio Utica for Under $500M). EOG calls its new position the “Ohio Utica combo play.” We later told you what the company means by that phrase (see EOG Resources has “Double Premium” Plans for Ohio Utica). Today we tackle the topic of how EOG’s Utica combo play will affect the midstream in Ohio.
Continue reading

| | | | | |

MPLX (MarkWest) Expands in Marcellus/Utica in 2022, New De-ethanizer

In late 2015 MPLX (i.e. Marathon Petroleum) bought out and merged in the Utica Shale’s premier midstream company, MarkWest Energy, for $15 billion (see MarkWest Energy Investors/Unitholders Approve Merger with Marathon). The “new” MarkWest, aka MPLX, plays on a much larger stage now, including ownership and operation of major assets in the Permian Basin and in the Bakken Shale, in addition to the Utica/Marcellus. Last week MPLX issued its fourth quarter and full-year 2021 update. Among the good news is that MPLX will increase spending in 2022, and some of the increase will go to projects in the M-U.
Continue reading

| | | | | | | |

EQT, Shell, Others Launch CCUS/Hydrogen Hub Initiative for OH-PA-WV

EQT, Equinor, Shell Polymers, U.S. Steel, and several other companies with either a base of operations or major interest in the Marcellus/Utica region, yesterday announced a new initiative to establish a carbon capture, utilization & storage (CCUS), as well as hydrogen production and utilization hub. A CCUS/H2 hub, if you will. While no specifics were announced, the aspiration seems to be establishing several facilities that capture, store or reuse carbon dioxide created during industrial activities, and figure out how to create more hydrogen (H2) and use it as a power source and (perhaps) as a raw input for manufactured products. Ultimately the aim of the group is to generate more business in the Appalachian region by committing to reduce CO2 emissions.
Continue reading

| | | | |

M-U NGL Cryogenic Plant in Southeast Ohio Getting an Upgrade

BCCK Holding Company (BCCK) has been granted a contract to upgrade a cryogenic gas processing plant in the Marcellus/Utica, in southeastern Ohio. The name of the customer was not disclosed but we’re guessing it is MarkWest Energy (now MPLX). BCCK says it has developed a simple and effective modification to improve the existing cryogenic plant design and equipment with the aim of increasing propane recovery.
Continue reading

| | | | | | | |

Unplanned Outage at MarkWest WV Gas Plants Fixed, Prices Go Up

Last week MDN told you about an unplanned outage at two MarkWest natural gas processing plants located in West Virginia (see Unplanned Outage at 2 WV MarkWest Plants Knocks 2.4 Bcf/d Offline). We have more details about what happened that led to the shutdowns. More importantly, we have new information that the outage is now over and full production capacity has been restored at the two plants.
Continue reading

| | | | | | | |

Unplanned Outage at 2 WV MarkWest Plants Knocks 2.4 Bcf/d Offline

MarkWest Sherwood Complex (click for larger version)

It doesn’t happen often, but when it does, it’s disconcerting. We’re talking about an “operational event” (i.e. outage) at not one but two MarkWest Energy natural gas processing plants–both in West Virginia. MarkWest’s Sherwood plant in Doddridge County and Mobley plant in Wetzel County are affected. According to NGI’s Daily Gas Price Index, four pipeline receipt locations affected by the outage are scheduled to go to zero beginning today “until further notice.”
Continue reading

| |

Marcellus/Utica Helps Lift MPLX/MarkWest Profits in 3Q

MPLX assets (click for larger version)

Back in 2015, MarkWest Energy, one of the premier midstream companies in the Utica that built and operated numerous gas processing plants and pipeline systems, sold itself to Marathon Petroleum (see MarkWest Energy Investors/Unitholders Approve Merger with Marathon). The pipeline subsidiary of Marathon that includes MarkWest is called MPLX. On Monday MPLX released its third-quarter 2020 update showing the Marcellus/Utica region continues to lift the company economically.
Continue reading

| | | | | |

MarkWest Pays Fed EPA $150K for Clean Air Act Violations in SWPA

Last Friday the U.S. Environmental Protection Agency (EPA) announced a “settlement” (with no admission of guilt) with MarkWest Energy, with MarkWest paying a $150,000 fine for failure to monitor for air emissions leaks at its Liberty Bluestone facility in Butler County, PA.
Continue reading

| |

Marathon Petroleum Won’t Sell MarkWest Midstream Subsidiary

Marathon Petroleum, the parent company of MPLX (formerly called MarkWest Energy) announced some big changes last November. Namely, they caved to “activist” investors (we still call them corporate raiders) and their demands to split the company in three and dump the current CEO (see Partial Activist Victory: Marathon to Sell Speedway, CEO Retiring). The one thing the activists didn’t get was a commitment from Marathon to sell off the MarkWest/MPLX division. However, to keep the raiders happy, Marathon did commit to reviewing a sale of MPLX/MarkWest. The review is now done and yesterday Marathon announced not only will they keep MPLX/MarkWest, but the CEO of MPLX is also becoming the CEO of parent Marathon.
Continue reading