MarkWest Energy

Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Litigation | MarkWest Energy | Pennsylvania | Pipelines | Washington County

Cecil Twp Approves MarkWest Compressor, with Poison Pill Conditions
June 16, 2015June 16, 2015

Cecil Township (Washington County), PA, one of the seven selfish towns that sued to overturn a portion of PA’s Act 13 oil and gas drilling law granting them the right to retain local zoning authority over oil and gas related activities, have found their Act 13 victory to be somewhat hollow. As MDN reported nearly a month ago, Cecil has steadfastly refused to grant a permit to MarkWest Energy to build a compressor station since 2010 (five years ago!). After a lawsuit that worked its way through various levels of courts, and after Cecil exhausted all other options, a judge ordered them to grant the permit no later than May 30. Cecil proceeded to violate that deadline (see Cecil Twp Violates Court Order re MarkWest Compressor Permit). Last night, after intense last minute negotiations with MarkWest, the town finally voted to grant the permit, but not before sneaking in two last minute changes to conditions both sides worked out in advance, changes that will likely mean yet another trip to the judge. Seems Cecil is still intent on stopping the compressor station…
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Energy Services | Industrywide Issues | MarkWest Energy | Pennsylvania | Pipelines | Regulation | Washington County

Robinson Twp Delays MarkWest Compressor, Approval Coming Soon
June 16, 2015June 16, 2015

This is a tale of two Pennsylvania townships. Both towns were part of the original seven selfish towns that sued the State of Pennsylvania to overturn portions of the Act 13 oil and gas law (see PA Court Says 7 Towns Can Keep Marcellus Money & Ban Drilling Too). Both towns share a border and both are in Washington County, PA. The residents of one town have clung to their anti-drilling views and continue to obstruct and obfuscate and block anything to do with drilling or pipelines. That town would be Cecil (see today’s story titled Cecil Twp Approves MarkWest Compressor, with Poison Pill Conditions). The other town, Robinson, has done a complete reversal. The residents of Robinson tossed their anti-drilling supervisors out of office, elected new ones, and have embraced the Marcellus Shale revolution happening around them (see Robinson Twp, PA Offers a Preview into Future of NY Frack Debate). Whereas Cecil is still trying to block a single MarkWest compressor station in their town, Robinson is moving forward with plans for a second MarkWest compressor station…
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Energy Services | MarkWest Energy

MarkWest Floats Another Round of IOUs–This Time for $1.2B
May 29, 2015May 29, 2015

Back in March, MarkWest Energy floated IOUs, otherwise called unsecured notes, and raised a cool $650 million in cash (see MarkWest Hauls in $650M Cash from New IOUs, Paying Down Old Debt). It worked so well the first time, MarkWest has decided to try it again. This time they’re floating IOUs looking to haul in a whopping $1.2 billion (with a “b”). MarkWest will use some of the proceeds from the new IOUs to pay off older IOUs. The new IOUs will be due and payable by MarkWest in 2025. Some of the new cash raised will no doubt go to finance MarkWest’s operations and expansion in the Marcellus/Utica…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Litigation | MarkWest Energy | Pennsylvania | Pipelines | Regulation | Washington County

Cecil Twp Violates Court Order re MarkWest Compressor Permit
May 19, 2015May 19, 2015

MDN first started tracking the issue of MarkWest Energy’s desire/application to build a compressor station in Cecil Township (Washington County), PA all the way back in May 2011–four years ago (see MarkWest, Range Resources File Legal Appeal Over Denial of Permit for Gas Compressor Station in Cecil, PA). The case goes back even further to the fall of 2010 when MarkWest first filed for the permit. Since that time, Cecil has steadfastly denied MarkWest a permit to build the compressor. It took nearly four years of lawsuits (see our many stories here), but last fall a judge ruled that Cecil could not disallow the MarkWest compressor in an area zoned industrial (see MarkWest Wins Court Case to Build Compressor Station in Cecil, PA). The Cecil Town Board decided not to appeal the decision, but the zoning board has kept it bottled up since last October. The town has now exhausted all legal options and the court, in April, told the town they have 45 days to grant the permit. The clock is ticking and yet the zoning board is still dragging its feet and intends to violate the 45-day court order…
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Access Midstream Partners | Energy Services | Industrywide Issues | M&A | MarkWest Energy | Williams

Former Access Midstream CEO Reappears – on MarkWest Board of Dir
May 19, 2015May 19, 2015

Last June, Williams announced the biggest midstream news of the year–a deal to buy Access Midstream (the old Chesapeake Midstream) and fold it into their own operation (see Big News: Williams Partners Buying Access Midstream for $6B). After clearing all of the regulatory and financial due diligence hurdles, the two companies officially merged on February 2nd (see It’s Official: Williams and Access Midstream Tie the Knot). But before they did, Mike Stice, the CEO of Access and the President and COO of Chesapeake Midstream before it was Access, left Access as of January 1st of this year (see Access Midstream CEO Replaced by COO Under Williams Ownership). We don’t know if Stice’s departure was amicable or not. Stice’s #2 man, Chief Operating Officer Robert Purgason, took over as the head of Williams’ new Access division. Mike Stice has turned up again–this time on the board of directors for Williams’ arch competitor MarkWest Energy…
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Energy Services | MarkWest Energy

MarkWest 1Q15: Life is Good in the Marcellus/Utica Midstream
May 7, 2015May 7, 2015

MarkWest Energy is perhaps the biggest midstream player in the Marcellus/Utica region. Of course they have operations in other parts of the country too–but the northeast remains their primary focus. MarkWest issued their first quarter 2015 update yesterday. Below we’ve selected out a brief portion focusing on the northeast. Life is generally pretty good in the midstream, as evidenced by the new processing plants MarkWest has recently brought online in the northeast. However, if you look at MarkWest’s financials, you’ll notice that revenue for 1Q15 was down a bit from the same period in 2014 ($467 million in 1Q15 vs $512 million in 1Q14). That can almost certainly be chalked up to driller curtailing some of their production, waiting for prices to go higher once again. Below we have excerpts of the update, a portion of the analyst phone call with lots of talk about the Marcellus and Utica, and a copy of MarkWest’s latest PowerPoint presentation…
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Energy Services | MarkWest Energy

MarkWest Energy Management Reshuffle Elevates Marcellus/Utica
May 4, 2015May 4, 2015

MarkWest Energy, one of the largest (if not the largest) midstream company in the Marcellus/Utica, has just announced a reshuffling of senior management that will affect the northeast region. Randy S. Nickerson, Executive Vice President and Chief Commercial Officer for MarkWest, will retire in early 2016. His retirement has set off a flurry of dominoes and people changing chairs. With respect to the Marcellus/Utica, effective June 1, Greg Floerke, currently the Senior Vice President of Operations for the Northeast Region will be promoted to Randy Nickerson’s position. That leaves an opening that will be filled by David Fitch, currently the Vice President of Engineering for the Northeast Region. Fitch will replace Floerke as the head of operations for the Northeast Region. Why does it matter?…
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Energy Services | MarkWest Energy

MarkWest Hauls in $650M Cash from New IOUs, Paying Down Old Debt
March 4, 2015March 4, 2015

Last week MDN highlighted the latest round of debt financing being offered by MarkWest Energy (see MarkWest Floats Notes Seeking $650M…or $500M…or $1.15B – Which?). We noted two announcements about debt financing–one offering $650 million in IOUs (otherwise called notes) and one for $500 million. Seems the $500 million announcement was a restatement or reiteration of a round of financing from 2014. How do we know? MarkWest yesterday said it had successfully completed closed it’s offering of $650 million…
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Energy Services | MarkWest Energy

MarkWest Floats Notes Seeking $650M…or $500M…or $1.15B – Which?
February 27, 2015February 27, 2015

Somebody help us out here. We noticed one day after MarkWest Energy released their 2014 numbers and commentary (see MarkWest Energy Continues to Soar in 2014, New Record for Northeast and MarkWest Energy Investor Phone Call Excerpts + PowerPoint), the company issued two press releases saying they are shopping senior unsecured notes (essentially IOUs) looking to raise money to pay off other money they borrowed in the past. Yes, they’re borrowing money to pay off borrowed money. One of the press releases says they want $650 million, and the other says $500 million. Are these two different tranches of money they’re after ($1.15 billion total)? Or did they issue one press release to supersede the other? And if so, which amount do they really want? Help!…
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Energy Services | MarkWest Energy

MarkWest Energy Continues to Soar in 2014, New Record for Northeast
February 26, 2015February 26, 2015

MarkWest Energy, one of (perhaps the) largest midstream (pipelines & processing plants) companies in both the Marcellus and Utica Shale region, issued its 2014 year in review yesterday. Among the highlights: the company reported record processed gas volumes of over 3.2 billion cubic feet per day from the Marcellus and Utica during the fourth quarter, an increase of over 100% from 4Q13; they processed/fractionated over 200,000 barrels per day of NGLs in the Marcellus/Utica during 4Q14, an increase of over 100% from 4Q13; MarkWest placed into service 720 million cubic feet per day of new processing capacity, with the addition of Sherwood V and Mobley IV in the Marcellus Shale; Cadiz II in the Utica Shale; and Carthage IV in East Texas; and they began operations of a third 60,000 barrels per day propane (and heavier) fractionation facility in Marcellus/Utica. It’s hard to find any bad news for MarkWest! Here’s the update…
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Energy Services | MarkWest Energy

MarkWest Energy Investor Phone Call Excerpts + PowerPoint
February 26, 2015February 26, 2015

In addition to releasing their 2014 update yesterday, MarkWest Energy held an analyst/investor phone call to discuss last year and talk about what’s coming up in 2015. The main portion of that call was a prepared presentation by MarkWest CEO Frank Semple. We’ve selected out the relevant portion of his statement (most of it, actually) which deals with the Marcellus/Utica. Frank gives a useful update on many of the bubbling projects they’ve been working on. Following Frank’s comments is the latest PowerPoint presentation (with a list of our favorite slides)…
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Energy Services | Harrison County | Industrywide Issues | Jobs | MarkWest Energy | Ohio | Processing Plants

MarkWest Energy Accused of Using Non-Union, Non-Ohio Workers
February 24, 2015February 24, 2015

Calling OH Gov. John “foreigner hunter” Kasich. We have an infraction! Quick! You’re needed, stat. Word has leaked out that MarkWest Energy has not only reduced the number of union members they’re using on jobs in Harrison County, OH, they’re using non-union (gasp) out-of-state workers–from exotic places like Texas and Louisiana and Oklahoma. Those places have been defined by John Kasich as “foreign” locations (i.e. non-Ohio). Periodically the jingoist-in-chief gets on his high horse and goes riding after those darned foreigners (see OH Gov. Kasich Continues Trash Talk Out-of-State Workers and OH Gov. Kasich Goes After Out-of-State Engineers/Surveyors and OH Gov. Kasich Goes Foreigner-Hunting in Strasburg and OH Gov. Kasich Dedicates Hickory Bend Plant, No Foreigners Found). Well, we’ve found the site of another infraction…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Kinder Morgan | MarkWest Energy | NGLs | Pipelines

KY Antis Now Opposing Kinder Morgan Y-Grade NGL Pipeline
December 30, 2014December 30, 2014

Will Kentucky scuttle yet another pipeline project? A group of anti-drillers/anti-pipeliners, including a bunch of radical nuns, earlier this year successfully stopped the Bluegrass Pipeline project, a natural gas liquids (NGL) pipeline proposed by Williams and Boardwalk Pipeline Partners that would run from the Marcellus/Utica region to the Gulf Coast (see Williams Stops Work on Bluegrass Pipeline, Boardwalk Says “It’s Not Dead”). In November, Boardwalk agreed with Williams that yes, the project is indeed dead as a doornail. The KY legislature, and later a KY judge, disallowed the use of eminent domain for the project, which effectively killed it (see Kentucky House Votes to End Eminent Domain for Bluegrass Pipeline and Judge Rules Bluegrass Pipeline Cannot Use Eminent Domain in KY). Mission accomplished for the anti-drilling faithful, like the nuns of Marion County (see Thank God the Bluegrass Pipeline will Bypass Marion County Nuns). But then Kinder Morgan and MarkWest came along with a plan to convert some 800 miles of the existing Tennessee Gas Pipeline, which runs through KY, into an NGL pipeline from the northeast to the Gulf (see Kinder Morgan Y-Grade NGL Pipeline from NE to SW Still Alive). The anti-drilling faithful are getting the band back together to go after this effort. They may not find it as easy to scuttle as the Bluegrass…
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Energy Services | Industrywide Issues | MarkWest Energy | Pennsylvania | Pipelines | Regulation | Washington County

MarkWest Builds/Operates Compressor Station w/o Building Permit
December 10, 2014December 10, 2014

Hmmm. Here’s a story we don’t like to report, and fear there’s more to the story than we now know, but report it we must. MarkWest Energy, arguably the largest and most important midstream (pipelines & processing plants) company in the Marcellus and Utica Shale, was denied a building permit to construct a building to house several natural gas compressors in West Alexander (Donegal Township, Washington County), PA–but they went ahead and built it anyway, without the permit. The rogue compressor station is now up and running but has to use generators to supply power because the town won’t let them hook up electric since they’re still in violation of the building permit…
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Accidents | Energy Services | Harrison County | Industrywide Issues | MarkWest Energy | Ohio | Pipelines | Regulation | Statewide OH

MarkWest Fined $320K by Ohio EPA for Mud Spills in Creeks/Swamps
December 1, 2014December 1, 2014

MarkWest Energy, the largest midstream company in the Marcellus/Utica, has spent the last three years building pipelines in eastern Ohio to connect wells to processing plants and to larger interstate pipelines. In the process, the company has spent some $2.2 billion building 350 miles of pipeline (and processing plants)–and MarkWest isn’t done yet. However, during the rapid buildout of infrastructure in the Buckeye State, some minor spills have happened along the way. When drilling under creeks and swamps (otherwise renamed as “wetlands”), occasionally drilling mud spilled out–some 19 different times between 2012 and 2013. The Ohio EPA has concluded their investigation and has just fined MarkWest $320,000 for the series of spills…
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Energy Services | MarkWest Energy

MarkWest Energy Floats Notes to Raise 1/2 Billion in Cash
November 18, 2014November 18, 2014

MarkWest Energy needs some more cash–like a half a billion dollars of cash–so they’re floating pieces of paper (unsecured notes) that they promise to pay back by 2024. No word on the interest rate they’ll give you for your money. We’re assuming some (most?) of that money will be put to good use in the Marcellus/Utica…
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