MarkWest unitholders approve combination with MPLX
(Thomson Reuters ONE) -
Transaction expected to close Dec. 4, 2015
FINDLAY, Ohio, and DENVER, Dec. 1, 2015 - At a special meeting held today,
unitholders of MarkWest Energy Partners, L.P. (NYSE: MWE) approved a strategic
combination with MPLX LP (NYSE: MPLX) by voting to approve the merger agreement
dated July 11, 2015, as amended. Based on the voting results, approximately 80
percent of the units voted at the special meeting were in favor of the merger
agreement.
The transaction will result in MarkWest, the second-largest processor of natural
gas in the United States and largest processor and fractionator in the Marcellus
and Utica shale plays, becoming a wholly owned subsidiary of MPLX, a rapidly
growing crude oil and refined products logistics partnership sponsored by
Marathon Petroleum Corporation (NYSE:MPC). The combination creates one of the
largest master limited partnerships (MLPs) and is expected to generate a mid-20
percent compound annual distribution growth rate through 2019.
"We are pleased the overwhelming majority of MarkWest unitholders voting
supported the combination and we look forward to delivering on the significant
opportunities in front of the combined partnership," said Gary R. Heminger, MPLX
chairman and chief executive officer. "This combination creates a large-cap
diversified midstream partnership with an extraordinary growth profile,
underpinned by MarkWest's large organic growth backlog and MPC's large inventory
of MLP-eligible assets."
Frank Semple, MarkWest chairman, president and chief executive officer, said
MarkWest and MPLX form a powerful combination to support the ongoing needs of
producer customers. "Together with MPLX, MarkWest is exceptionally well-
positioned to extend its long history of delivering best-in-class customer
service and focused execution on continued midstream infrastructure build-out,"
he said. "Our development of critical midstream solutions will be further
enhanced by MPC's strong parental support and a growing inventory of dropdown
assets available to the combined partnership. MPC's significant pipeline and
refinery operations will be critical for expanding and integrating MarkWest's
midstream platform throughout some of our nation's most productive resource
plays."
The transaction is subject to customary closing conditions and is expected to
close Dec. 4, 2015.
MPLX, MarkWest and MPC management will host an analyst and institutional
investor meeting Dec. 3, 2015. The presentation will be webcast live beginning
at 9 a.m. EST. The webcast will include the presentation audio as well as
accompanying slides. The meeting is expected to conclude at approximately 11:30
a.m. This event will be accessible via the MPC website at
http://ir.marathonpetroleum.com and the MPLX website at http://ir.mplx.com.
###
About MPLX LP
MPLX is a fee-based, growth-oriented master limited partnership formed in 2012
by Marathon Petroleum Corporation to own, operate, develop and acquire pipelines
and other midstream assets related to the transportation and storage of crude
oil, refined products and other hydrocarbon-based products. Headquartered in
Findlay, Ohio, MPLX's assets consist of a 99.5 percent equity interest in a
network of common carrier crude oil and products pipeline assets located in the
Midwest and Gulf Coast regions of the United States and a 100 percent interest
in a butane storage cavern located in West Virginia with approximately 1 million
barrels of natural gas liquids storage capacity.
About MarkWest Energy Partners
MarkWest Energy Partners, L.P. is a master limited partnership that owns and
operates midstream service businesses. MarkWest has a leading presence in many
natural gas resource plays including the Marcellus Shale, Utica Shale,
Huron/Berea Shale, Haynesville Shale, Woodford Shale and Granite Wash formation.
MPLX Investor Relations Contacts:
Geri Ewing (419) 421-2071
Teresa Homan (419) 421-2965
MPLX Media Contacts:
Chuck Rice (419) 421-2521
Jamal Kheiry (419) 421-3312
MarkWest Investor Relations and Media Contact:
Joshua Hallenbeck (866) 858-0482
This press release contains forward-looking statements within the meaning of
federal securities laws regarding MPLX LP ("MPLX"), Marathon Petroleum
Corporation ("MPC"), and MarkWest Energy Partners, L.P. ("MWE"). These forward-
looking statements relate to, among other things, expectations, estimates and
projections concerning the business and operations of MPLX, MPC, and MWE. You
can identify forward-looking statements by words such as "anticipate,"
"believe," "estimate," "objective," "expect," "forecast," "guidance," "imply,"
"plan," "project," "potential," "could," "may," "should," "would," "will" or
other similar expressions that convey the uncertainty of future events or
outcomes. Such forward-looking statements are not guarantees of future
performance and are subject to risks, uncertainties and other factors, some of
which are beyond the companies' control and are difficult to predict. In
addition to other factors described herein that could cause MPLX's or MWE's
actual results to differ materially from those implied in these forward-looking
statements, negative capital market conditions, including a persistence or
increase of the current yield on common units, which is higher than historical
yields, could adversely affect MPLX's ability to meet its distribution growth
guidance, particularly with respect to the later years of such guidance. Factors
that could cause MPLX's or MWE's actual results to differ materially from those
implied in the forward-looking statements include: the ability to satisfy
conditions to the closing of the transaction contemplated by the merger
agreement; risk that the synergies from the MPLX/MWE transaction may not be
fully realized or may take longer to realize than expected; disruption from the
MPLX/MWE transaction making it more difficult to maintain relationships with
customers, employees or suppliers; risks relating to any unforeseen liabilities
of MWE or MPLX, as applicable; the adequacy of MPLX's and MWE's respective
capital resources and liquidity, including, but not limited to, availability of
sufficient cash flow to pay distributions, and the ability to successfully
execute their business plans and implement their growth strategies; the timing
and extent of changes in commodity prices and demand for crude oil, refined
products, feedstocks or other hydrocarbon-based products; volatility in and/or
degradation of market and industry conditions; completion of pipeline capacity
by competitors; disruptions due to equipment interruption or failure, including
electrical shortages and power grid failures; the suspension, reduction or
termination of MPC's obligations under MPLX's commercial agreements; each
company's ability to successfully implement its growth plan, whether through
organic growth or acquisitions; modifications to earnings and distribution
growth objectives; federal and state environmental, economic, health and safety,
energy and other policies and regulations; changes to MPLX's capital budget;
other risk factors inherent to MPLX or MWE's industry; and the factors set forth
under the heading "Risk Factors" in MPLX's Annual Report on Form 10-K for the
year ended Dec. 31, 2014, filed with the Securities and Exchange Commission
(SEC); and the factors set forth under the heading "Risk Factors" in MWE's
Annual Report on Form 10-K for the year ended Dec. 31, 2014, and Quarterly
Report on Form 10-Q for the quarter ended Sept. 30, 2015, filed with the SEC.
These risks, as well as other risks associated with MPLX, MWE and the proposed
transaction, are also more fully discussed in the joint proxy statement and
prospectus included in the registration statement on Form S-4 filed by MPLX and
declared effective by the SEC on Oct. 29, 2015, as supplemented. Factors that
could cause MPC's actual results to differ materially from those implied in the
forward-looking statements include: risks described above relating to the
MPLX/MWE proposed merger; changes to the expected construction costs and timing
of pipeline projects; volatility in and/or degradation of market and industry
conditions; the availability and pricing of crude oil and other feedstocks;
slower growth in domestic and Canadian crude supply; an easing or lifting of the
U.S. crude oil export ban; completion of pipeline capacity to areas outside the
U.S. Midwest; consumer demand for refined products; transportation logistics;
the reliability of processing units and other equipment; MPC's ability to
successfully implement growth opportunities; modifications to MPLX earnings and
distribution growth objectives; federal and state environmental, economic,
health and safety, energy and other policies and regulations; other risk factors
inherent to MPC's industry; and the factors set forth under the heading "Risk
Factors" in MPC's Annual Report on Form 10-K for the year ended Dec. 31, 2014,
filed with SEC. In addition, the forward-looking statements included herein
could be affected by general domestic and international economic and political
conditions. Unpredictable or unknown factors not discussed here, in MPLX's Form
10-K, in MPC's Form 10-K, or in MWE's Form 10-K and Form 10-Qs could also have
material adverse effects on forward-looking statements. Copies of MPLX's Form
10-K are available on the SEC website, MPLX's website at http://ir.mplx.com or
by contacting MPLX's Investor Relations office. Copies of MPC's Form 10-K are
available on the SEC website, MPC's website at http://ir.marathonpetroleum.com
or by contacting MPC's Investor Relations office. Copies of MWE's Form 10-K and
Form 10-Qs are available on the SEC website, MWE's website at
http://investor.markwest.com or by contacting MWE's Investor Relations office.
Additional Information and Where to Find It
In connection with the proposed acquisition, MPLX and MWE have filed relevant
materials with the SEC, including MPLX's registration statement on Form S-4 that
includes a definitive joint proxy statement and a prospectus declared effective
by the SEC on Oct. 29, 2015 and a supplement to the proxy statement/prospectus
filed on Nov. 17, 2015. Investors and security holders are urged to read all
relevant documents filed with the SEC, including the definitive joint proxy
statement and prospectus, because they contain important information about the
proposed transaction. Investors and security holders are able to obtain the
documents free of charge at the SEC's website, http://www.sec.gov, or for free
from MPLX LP at its website, http://ir.mplx.com, or in writing at 200 E. Hardin
Street, Findlay, Ohio 45840, Attention: Corporate Secretary, or for free from
MWE by contacting Investor Relations by phone at 1-(866) 858-0482 or by email at
investorrelations(at)markwest.com.
MWE Unitholders Approve Transaction:
http://hugin.info/155038/R/1970620/720470.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: MPLX LP via GlobeNewswire
[HUG#1970620]
Datum: 01.12.2015 - 17:12 Uhr
Sprache: Deutsch
News-ID 436821
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