MarkWest Energy

Buckeye Partners | Energy Services | Exporting | Harrison County | Industrywide Issues | MarkWest Energy | NGLs | Ohio | Statewide OH

Utica/Marcellus Condensate Now Being Exported via Ship from NJ
October 8, 2015October 8, 2015

Don’t look now but Utica/Marcellus condensate being produced at a MarkWest Energy processing plant in Cadiz, OH is being exported out of the country via a ship docked on the Hudson River at Perth Amboy, New Jersey–just across the river from Manhattan! The condensate is transported to NJ via railroad in specially designed rail cars. A second ship is being loaded up and will leave with Utica/Marcellus condensate from MarkWest, according to the Reuters story below. The first ship loaded with condensate left Perth Amboy one month ago heading to the Netherlands. No word yet on where the second load is heading, but sources say exporting condensate from Perth Amboy is now set up to become a routine thing, which is fantastic news for drillers in Ohio, Pennsylvania and West Virginia that produce condensate…
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Energy Services | FirstEnergy | MarkWest Energy

FirstEnergy Building $63M WV Electric Substation for NatGas Plant
October 7, 2015October 7, 2015

FirstEnergy Corp., an electric utility operating in the Appalachian region, announced yesterday they will construct a new substation near Smithfield, WV along with a new two-mile transmission line–in order to send more electricity to a nearby natural gas processing plant. FirstEnergy is spending $63 million to build the new substation and transmission line. The announcement doesn’t name the owner of the natgas processing plant, but we have a guess…
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Energy Services | Ethane | Industrywide Issues | MarkWest Energy

MarkWest Exec Says Ethane Storage Key Issue for NE Cracker Plants
October 1, 2015October 1, 2015

Ethane tank in Grangemouth, Scotland – click for larger version

At yesterday’s sessions of the West Virginia Oil and Natural Gas Association (WVONGA) conference at Oglebay Park (Wheeling), WV, MarkWest Energy’s executive vice president and chief commercial officer Greg Floerke talked about natural gas liquids (NGLs)–specially ethane–and the need for a regional ethane cracker plant. Floerke said MarkWest currently processes around 75% of all NGLs in the Marcellus/Utica region and that his company alone could provide enough ethane for several cracker plants. However, for those considering the prospect of spending billions of dollars to build a cracker plant, Floerke says there is a key issue–storage. Cracker plants want to be assured there will be a steady supply and one way you get steady supplies is with storage…
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Crestwood Midstream | Energy Services | Industrywide Issues | MarkWest Energy | Pipelines | Processing Plants | Williams

MarkWest Energy Takes Top Honors in Midstream Survey
September 23, 2015September 23, 2015

Mirror mirror on the wall, who is the fairest midstream company of them all? As it turns out–it’s MarkWest Energy, the premier midstream company in the Marcellus/Utica! EnergyPoint Research has just published the results from its 2015 Oil & Gas Midstream Services Customer Satisfaction Survey, and MarkWest Energy received the top rating–for the fourth consecutive time. Other northeast midstreamers rating tops in at least one category include Crestwood Midstream and Williams…
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Doddridge County | Energy Services | Industrywide Issues | MarkWest Energy | Marshall County | Ohio County | Regulation | West Virginia | Wetzel County

MarkWest Fined $76K for Water Quality Violations in WV
September 22, 2015September 22, 2015

MarkWest Energy has been fined $76,405 by the West Virginia Dept. of Environmental Protection (WVDEP) for a series of water quality violations in connection with projects they’ve built in West Virginia from 2013 to this year. In addition to the fine, MarkWest is required to submit a plan to correct problems that still exist. This isn’t the first time MarkWest has been to the WVDEP wood shed. In 2013 they were fined $306,000 for polluting a small stream near their new Mobley processing plant in Wetzel County (see MarkWest Fined for Soil Erosion/Creek Damage Near WV Plant). WVDEP is also putting MarkWest on probation–requiring the company to file monthly reports for the next 18 months listing all “slips” (erosion incidents) that have the potential to impact WV state waters…
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Energy Services | Industrywide Issues | M&A | Marathon Petroleum | MarkWest Energy | NGLs | Pipelines

Marathon Hints MarkWest Merger Plan May Include NGLs to Gulf
September 11, 2015September 11, 2015

For years MarkWest Energy has been one of the most active midstream companies in the Marcellus/Utica region. MDN has often called MarkWest the premier midstream company in the northeast–with more pipelines and processing plants than any other company, except possibly the recently merged Williams/Access Midstream. Even though MarkWest has a huge portfolio of assets in Ohio, West Virginia and Pennsylvania, and continues to have a big and ambitious list of future projects, it wasn’t enough to stave off a takeover. Marathon Petroleum announced in July they are buying out MarkWest and adding it into their own operations (see Midstream Bombshell: MarkWest Sells Itself to Marathon Petroleum). It makes you wonder what the future holds for MarkWest and future midstream projects in the northeast. Wonder no more. Although he was light on specifics, Marathon Petroleum CEO Gary Heminger commented at an investors conference on Wednesday that the combined company is eyeing between $6-$9 billion of investment in new midstream projects…
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Energy Services | Industrywide Issues | M&A | Marathon Petroleum | MarkWest Energy

Federal Govt Approves Marathon Petroleum Buyout of MarkWest
August 26, 2015August 26, 2015

The proposed buyout of MarkWest Energy by Marathon Petroleum just took a giant step forward after the Federal Trade Commission and the U.S. Dept. of Justice last Friday signed off on the transaction by granting an “early termination” of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act (HSR Act). Such a notice means “you don’t have to wait the standard length of time for us to complete a review, we’ve completed it and we find nothing to object to.” Unitholders (the equivalent of stockholders) in MarkWest must still approve the buyout, but that doesn’t appear to be an issue…
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Energy Services | Industrywide Issues | M&A | Marathon Petroleum | MarkWest Energy

What Happened Behind the Curtains of the Marathon/MarkWest Deal?
August 20, 2015August 20, 2015

A couple of interesting tidbits have come to light regarding the impending buyout of MarkWest Energy by Marathon Petroleum, announced in July (see Midstream Bombshell: MarkWest Sells Itself to Marathon Petroleum). First interesting tidbit: As recently as February of this year, MarkWest rebuffed an informal offer from Marathon telling Marathon they prefer to be a standalone company. Then the continuing low price apocalypse deepened, changing everything. The second interesting tidbit: Two other companies were bidding to takeover MarkWest, starting in May. It appears that MarkWest didn’t want to be wedded to either of those companies and went running into the arms of Marathon instead…
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Accidents | Energy Services | Industrywide Issues | MarkWest Energy | Pennsylvania | Washington County

MarkWest Sued for “Wrongful Death” in Washington, PA Car Crash
August 17, 2015August 17, 2015

On Saturday, Jan. 3, 2015, a MarkWest Energy truck driven by a MarkWest worker, according to court documents, failed to stop at a stop sign at the intersection of Route 136 and Brownlee Road in Washington County, PA. That failure had tragic consequences. The Chevy Silerado truck hit a tiny Ford Fiesta car and a passenger in the car, Donna Simboli, 58, was killed. A lawsuit has just been filed in Washington County on behalf of Simboli’s two children (no ages given) against MarkWest for “wrongful death”…
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Ascent Resources | Belmont County | Energy Companies | Energy Services | Industrywide Issues | Jefferson County (OH) | MarkWest Energy | Ohio | Pipelines | Utica Shale

MarkWest to Build $1B OH Utica Dry Gas Gathering System for Ascent
August 13, 2015August 13, 2015

Although it seems there is no end of bad news in drilling company financials right now, here’s a spot of good news: MarkWest Energy, the premier midstream/pipeline company in the Marcellus/Utica (selling itself to Marathon Petroleum), has just announced they are investing $1 billion over the next three years to install a new gathering pipeline system in eastern Ohio–particularly in Belmont and Jefferson counties–mostly for Ascent Resources. Ascent, backed by major investor EMG, was once Aubrey McClendon’s subsidiary company called American Energy Appalachia Holdings that has since broken free of McClendon and American Energy Partners and is now its own 100% standalone company. The MarkWest/Ascent deal is to build a 250-mile pipeline system in the Utica dry gas region that will gather more than 2 billion cubic feet per day (Bcf/d) of natural gas not only from Ascent, but also from other producers in the area. Here’s the details from MarkWest…
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Energy Services | Industrywide Issues | MarkWest Energy | Pennsylvania | Pipelines | Washington County

New $3M Electric Line for MarkWest Compressor in Robinson Twp, PA
August 10, 2015August 10, 2015

West Penn Power, a subsidiary of FirstEnergy Corp., is building a new $3 million electric transmission line in Washington County, PA to aide the Marcellus industry. The new electric line, running 1.3 miles in Robinson Township, will connect to a MarkWest compressor station due to be built (see Robinson Twp Delays MarkWest Compressor, Approval Coming Soon). According to FirstEnergy, they will spend close to $50 million on new electric transimission line projects in support of the Marcellus gas industry in western PA over the next three years…
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Energy Services | Marathon Petroleum | MarkWest Energy

MarkWest Energy 2Q15: Operating Inc. Up 26%, Net Inc. Down 562%
August 6, 2015August 6, 2015

MarkWest Energy, the premier midstream (pipelines and processing plants) company in the Marcellus/Utica, issued their second quarter 2015 update yesterday. MarkWest, you may recall, is in the process of selling itself to Marathon Petroleum (see Midstream Bombshell: MarkWest Sells Itself to Marathon Petroleum). MarkWest shows a slight decrease of 11% in revenue from 2Q14 to 2Q15. But after expenses, income from operations actually went up 26% on record volumes flowing through their pipes and processing plants. But after you add in all of the accounting machinations including things like “loss on redemption of debt”, MarkWest had a net income loss of $86.4 million for the quarter (down 562% from 2Q14). However, that’s not what really interests us. What interests us is an operations update for the Marcellus and Utica regions and what this midstream giant has been up to…
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Energy Services | Industrywide Issues | Litigation | MarkWest Energy | Pennsylvania | Pipelines | Washington County

MarkWest Energy Takes Cecil, PA Back to Court over Compressor Stn
July 23, 2015July 22, 2015

As we noted in June, after more than four years of resisting, Cecil Township, PA–under court order–finally approved a compressor station proposed by MarkWest Energy (see Cecil Twp Approves MarkWest Compressor, with Poison Pill Conditions). We also noted that Cecil pulled a fast one with their so-called approval. The reason they got away with violating the court ordered deadline was because they were supposedly bargaining in good faith with MarkWest–nailing down final details both sides could live with. But it wasn’t good faith on the part of Cecil. At the last minute, Cecil tacked on 26 “conditions” making it all but sure that MarkWest would not agree to the plan. And sure enough, MarkWest has had to take Cecil, one of seven selfish towns that sued to overturn the Act 13 law, back to court yet again. Perhaps the judge should just remove the town supervisors this time since they habitually refuse to obey the law?…
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Energy Services | Industrywide Issues | M&A | Marathon Petroleum | MarkWest Energy

Marathon Outlines Strategy for Buying MarkWest in PPT Presentation
July 21, 2015July 21, 2015

Seemingly out of the blue, last week Marathon Petroleum’s midstream division, MPLX, announced they had reached an agreement with arguably THE premier Marcellus/Utica midstream company, MarkWest Energy, to buy out MarkWest and make it a division of MPLX–essentially a division of Marathon Petroleum (see Midstream Bombshell: MarkWest Sells Itself to Marathon Petroleum). We speculated at the time that MarkWest didn’t want to become a Williams–the target of a hostile takeover by someone they don’t want to own them. So MarkWest went and found a suitable suitor and sold themselves. Marathon has provided a bit more of their thinking about why they think MarkWest will make a great addition to MPLX and how it all works in the organization chart by issuing a useful PowerPoint presentation of “supplemental information.” We have that PowerPoint for you below…
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Energy Companies | Energy Services | Industrywide Issues | M&A | Marathon Oil | Marathon Petroleum | MarkWest Energy | Pipelines | Processing Plants

Midstream Bombshell: MarkWest Sells Itself to Marathon Petroleum
July 14, 2015July 14, 2015

While all eyes have been on the possible hostile takeover of midstream giant Williams by another midstream giant, Energy Transfer Equity (see Williams Continues to Resist ET Offer, Talks with Other Suitors), another midstream (i.e. pipeline company) merger was quietly being arranged that has rocked the midstream world. Yesterday MarkWest Energy, with major operations in the Marcellus/Utica–MDN would call it the premier midstream company in the northeast–announced it is selling itself to Marathon Petroleum Corp.’s midstream division MPLX, a master limited partnership or MLP. The “merger” (i.e. sale of MarkWest to Marathon) will create the fourth largest MLP in the United States–worth $21 billion in market capitalization. MarkWest is twice the size of MPLX, which makes this an interesting story and truly big news for the Marcellus/Utica…
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Butler County | Energy Services | Industrywide Issues | MarkWest Energy | Pennsylvania | Pipelines | Processing Plants

DEP Approves MarkWest Plan to Expand Bluestone Gas Processing Plant
July 7, 2015July 7, 2015

We wouldn’t classify it as one of the major miracles, but perhaps as a minor miracle. Something comparable to a picture of the Madonna weeping real tears. The Pennsylvania Dept. of Environmental Protection (DEP), under the leadership of DEP’s PennFuture Secretary John Quigley, has signed off on a MarkWest Energy request to double the size of the Bluestone natural gas processing facility in Butler County. MarkWest plans to build two new units at the facility (200 million cubic feet per day of capacity for each, or 400 Mmcf/d total). The first of the two will, if all goes as planned, come online by the end of this year…
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