Sumitomo Corp Sells JV Stake in Butler County, PA Marcellus

Assets co-owned by Rex and Sumitomo in 2010 (click for larger version)

In 2010 gigantic Japanese trading house Sumitomo Corp. bought a 30% stake (joint venture) in Rex Energy’s Marcellus drilling operation in Bulter County, PA for $150.7 million. Sumitomo wrote down much of the value for that purchase in 2015. In 2018 Rex went bankrupt and now PennEnergy Resources owns and operates the Butler assets (see Rex Energy Sells Itself to PennEnergy Resources for $600M). PennEnergy is getting a new JV partner. Yesterday Sumitomo announced the sale of their 30% share of the action.
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MarkWest Buys Keystone Midstream for $512M

Pipeline giant MarkWest has just gobbled up another, albeit much smaller, competitor. MarkWest announced yesterday it is purchasing Keystone Midstream for $512 million. Keystone is owned by Stonehenge Energy Resources and Rex Energy with operations primarily in Butler County, PA.

As part of the deal, MarkWest will gain contracts and a partnership with Rex Energy and Sumitomo Corporation to transport and process their rapidly expanding production in the liquids-rich portion of the Marcellus Shale in Butler and Beaver counties in Pennsylvania. MarkWest and Rex are also exploring a deal for Utica Shale production in eastern Ohio.

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