DENVER--(BUSINESS WIRE)--MarkWest Utica EMG, L.L.C. (MarkWest Utica EMG), a joint venture between MarkWest Energy Partners, L.P. (NYSE: MWE) (MarkWest) and The Energy and Minerals Group (EMG), is announcing an additional expansion of its large-scale midstream system to support the rapidly growing drilling programs of Antero Resources (Antero), Gulfport Energy Corporation (NYSE: GPOR) (Gulfport) and other producers in the southern core of the Utica Shale. MarkWest Utica EMG will now construct a third 200 million cubic feet per day (MMcf/d) cryogenic gas processing facility at its Seneca processing complex in Noble County, Ohio.
The Seneca complex continues to expand and will include three processing plants totaling 600 MMcf/d. The first two plants are scheduled to begin operations during the fourth quarter of 2013 and will support rich-gas production from a number of key producers including Antero, Gulfport, Rex Energy, PDC Energy, Consol Energy and others. In addition to the Seneca I facility, Antero’s rich-gas production will also anchor the Seneca III facility, and MarkWest Utica EMG expects the plant to be operational in early second quarter of 2014. Antero is a premier operator in the Northeast and is quickly developing its significant acreage position in areas surrounding the Seneca complex.
MarkWest Utica EMG is also developing the Cadiz complex in Harrison County, Ohio, which is anchored by Gulfport. Gulfport is successfully executing on its significant drilling program and continues to report very strong well results and rapidly growing production. In the past two weeks MarkWest Utica EMG began operations of the first major cryogenic processing facility in eastern Ohio, the 125 MMcf/d Cadiz I plant. The Cadiz complex currently has 185 MMcf/d of processing capacity, which includes a 60 MMcf/d interim refrigeration plant. The capacity at Cadiz will increase to 325 MMcf/d by mid-2014 with the completion of Cadiz II, a 200 MMcf/d plant and the removal of the Cadiz interim plant. The Cadiz and Seneca complexes will be connected by a rich-gas header that will provide Utica producers with unparalleled redundancy and reliability.
In just over a year, MarkWest Utica EMG has executed agreements with seven producers developing acreage in the southern core of the Utica Shale. By mid-2014 MarkWest Utica EMG’s fully integrated midstream system in the Utica Shale will consist of more than three-hundred miles of gathering pipeline, five processing facilities totaling almost 1 billion cubic feet per day and 100,000 barrels per day (Bbl/d) of C2+ fractionation capacity. The joint venture’s midstream system will also be connected to MarkWest’s expansive Marcellus NGL infrastructure.
“We are very excited to be developing premier midstream solutions in the southern core of the Utica shale for successful and proven operators such as Antero and Gulfport,” stated Frank Semple, Chairman, President, and Chief Executive Officer of MarkWest. “Together with our joint venture partner EMG, we are committed to providing our producer customers with fully-integrated midstream infrastructure and award winning customer service in one of America’s most exciting emerging resource plays.”
MarkWest Energy Partners, L.P. is a master limited partnership engaged in the gathering, processing and transportation of natural gas; the gathering, transportation, fractionation, storage and marketing of natural gas liquids; and the gathering and transportation of crude oil. MarkWest has a leading presence in many unconventional gas plays including the Marcellus Shale, Utica Shale, Huron/Berea Shale, Haynesville Shale, Woodford Shale and Granite Wash formation.
This press release includes “forward-looking statements.” All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Actual results could vary significantly from those expressed or implied in such statements and are subject to a number of risks and uncertainties. Although MarkWest believes that the expectations reflected in the forward-looking statements are reasonable, MarkWest can give no assurance that such expectations will prove to be correct. The forward-looking statements involve risks and uncertainties that affect operations, financial performance, and other factors as discussed in filings with the Securities and Exchange Commission (SEC). Among the factors that could cause results to differ materially are those risks discussed in the periodic reports filed with the SEC, including MarkWest’s Annual Report on Form 10-K for the year ended December 31, 2012 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2013. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading “Risk Factors.” MarkWest does not undertake any duty to update any forward-looking statement except as required by law.
The Energy & Minerals Group is a highly specialized private equity firm that focuses exclusively on investing across various facets of the global natural resource industry that are integral to the global economy. EMG has $6.2 Billion of total investor commitments (including co-investments) with in excess of $3.1 Billion deployed across the energy complex since inception. For additional information on EMG, please contact Alexandra Coolidge at 713-579-5029.