MarkWest Spending $300M+ This Year in WV Expansion Projects

MarkWest Energy, formerly a standalone company but bought out by MPLX (i.e. Marathon Petroleum) in December 2015, continues its aggressive expansion in the Marcellus/Utica. Particularly in West Virginia. MarkWest owns a number of processing plants in the Mountain State. This year, the company will spend $200 million to expand and upgrade its facilities in Doddridge County (Sherwood facility) to process natural gas and separate out ethane, and $110 million to expand and upgrade facilities in Marshall County (Majorsville facility) to process ethane. Folks, that’s nearly one-third of a BILLION dollars–in just two counties. Talk about economic stimulus! Last year MarkWest spent $120 million on upgrades in Wetzel County. MarkWest’s WV customers include: Antero, EQT, Southwestern, CNX, Chevron, Range Resources, and Eureka Hunter. Here’s more details on what to expect from the mighty MarkWest in WV this year…
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Marathon Petroleum subsidiary MarkWest Energy and Antero Resources’ midstream subsidiary Antero Midstream have announced a 50/50 joint venture focused on gathering and processing natural gas and natural gas liquids in northern West Virginia (Tyler, Wetzel and Richie counties). Antero Midstream will contribute its gathering operations for 195,000 acres in WV, boosting MarkWest’s total WV Marcellus gathering operation to a huge 360,000 acres. In addition, the JV will add three new processing plants to MarkWest’s Sherwood Complex in Doddridge County, WV. And get this: the JV contemplates building another eight (!) processing plants at Sherwood and a new/second location. Antero expects to invest “up to $800 million” through 2020, and has already made an initial $155 million investment. We think it’s no coincidence that on the same day Antero Midstream announced the deal (yesterday), they also announced a new round of units (i.e. shares of stock) they hope to pedal to raise $198 million. Here’s the details on the JV deal between Antero and MarkWest…
FirstEnergy is one of the nation’s largest investor-owned electric systems, serving customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. FirstEnergy loves the shale industry. We told you in December 2014 that FirstEnergy was planning to invest $100 million in new electric transmission projects to service the growing Marcellus and Utica Shale industry in WV (see
Two weeks ago MDN provided an update on the new Antero state-of-the-art frack wastewater treatment plant and landfill being built in West Virginia (see
Norwegian oil giant Statoil, which is 67% owned by the country of Norway, was an early and big mover in leasing Marcellus and Utica Shale acreage, amassing a huge 665,000 acres. Over the past few years Statoil has been equally aggressive in divesting itself of its non-operated acreage (Statoil doesn’t do the drilling) in the northeast–in particular in West Virginia. This is about to get complicated, but we’ll try to make it understandable. A lot of Statoil’s acreage is in joint venture deals. In December 2014, Statoil sold some of its “working interest” in the Marcellus acreage it owns in WV and PA to Southwestern Energy for $394 million (see
FirstEnergy is one of the nation’s largest investor-owned electric systems, serving customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. FirstEnergy loves the shale industry. In April, MDN reported that FirstEnergy’s construction crews had begun erecting steel poles for a new 18-mile high voltage power line that will run through Harrison and Doddridge counties in WV (see
Antero Resources announced yesterday that the company has just cut a deal with Southwestern Energy to purchase 55,000 net acres located in Wetzel, Tyler and Doddridge Counties in West Virginia for $450 million. Antero says the acreage is in the “core” of the Marcellus and some 75% of the acreage also includes Utica Shale rights. The acreage Southwestern is selling is acreage they themselves bought in 2014 from Chesapeake Energy. Chessy originally signed the acreage with landowners for $5 per acre (peanuts). Southwestern paid Chesapeake $12,000 per acre (see