MPLX LP Announces Formation of Strategic Joint Venture with Antero Midstream Partners LP
(Thomson Reuters ONE) -
* MarkWest Energy Partners, L.P., a wholly owned subsidiary of MPLX LP, and
Antero Midstream Partners LP have formed a strategic joint venture to
support Antero Resources Corporation in the Marcellus Shale.
* Antero Midstream Partners will release to the joint venture its dedication
from Antero Resources Corporation of approximately 195,000 gross operated
acres located in Tyler, Wetzel and Ritchie counties of West Virginia.
* The joint venture will support the ongoing development of incremental gas
processing required by Antero Resources Corporation in the Marcellus Shale.
* The joint venture is investing in fractionation capacity at MarkWest's
Hopedale Complex in Ohio and has an option to invest in future fractionation
expansions that support Antero Resources Corporation's liquids production.
FINDLAY, Ohio, Feb. 6, 2017 - MPLX LP (NYSE: MPLX) today announced that its
wholly owned subsidiary, MarkWest Energy Partners, L.P., and Antero Midstream
Partners LP (NYSE: AM) have formed a strategic joint venture to support the
development of Antero Resources Corporation's (NYSE: AR) extensive Marcellus
Shale acreage in the prolific rich-gas corridor of West Virginia.
The joint venture is owned 50 percent by MarkWest and 50 percent by Antero
Midstream and is supported by a long-term, fee-based agreement with Antero
Resources. As part of this agreement, Antero Midstream has agreed to release to
the joint venture its 195,000 gross acre processing dedication from Antero
Resources, increasing the Marcellus Shale area dedication to MarkWest from
approximately 167,000 gross operated acres to over 360,000 gross operated acres.
The additional dedicated acreage includes Antero Resources' core Marcellus Shale
position in Tyler, Wetzel, and Ritchie counties of West Virginia.
To support Antero Resources' significant production growth profile, the joint
venture will expand processing infrastructure at its Sherwood Complex in
Doddridge County, West Virginia. The Sherwood Complex began operations in
October 2012 and has grown to become the single largest gas processing complex
in the Northeast, currently with six cryogenic processing facilities totaling
1.2 billion cubic feet per day of capacity.
Ongoing development of gas processing infrastructure at the Sherwood Complex
includes three new joint venture processing facilities, totaling 600 million
cubic feet per day of incremental capacity for Antero Resources. The joint
venture expects to commence operations of two of the new facilities during the
first quarter and third quarter of 2017, and the third new facility during the
first quarter of 2018. In addition to the three new processing facilities, the
joint venture contemplates the development of up to another eight processing
facilities to support Antero Resources, which would be located at both the
Sherwood Complex and a new location in West Virginia.
MarkWest will continue to construct and operate all processing facilities
installed to service Antero Resources' production and will also retain full
ownership of the first six processing facilities at the Sherwood Complex.
In addition to the development of gas processing infrastructure, the joint
venture will support the growth of Antero Resources' natural gas liquids (NGL)
production with fractionation infrastructure at the Hopedale Complex in Harrison
County, Ohio. The largest fractionation facility in the Marcellus and Utica
shales, the Hopedale Complex currently has three units providing 180,000 barrels
per day (bpd) of propane-plus fractionation capacity. The joint venture is
investing in 20,000 bpd of existing fractionation capacity at the Hopedale
Complex, and has an option to invest in future fractionation expansions at the
complex subject to the production of incremental NGLs from the joint venture's
processing facilities. MarkWest and its affiliates will continue to fully own
and operate all NGL pipelines, rail and marketing infrastructure associated with
the Hopedale Complex. In addition, MarkWest will continue to fully own and
operate all fractionation facilities and related NGL infrastructure in the
Marcellus Shale.
MarkWest will initially contribute existing assets to the joint venture
consisting of the three processing facilities currently under construction at
the Sherwood Complex, as well as associated infrastructure related to the
operation of these facilities. Antero Midstream will initially contribute
approximately $155 million for its allocated share of processing assets at the
Sherwood Complex and ownership of fractionation capacity at the Hopedale
Complex. Going forward, it is expected that MarkWest and Antero Midstream will
each contribute 50 percent of the future capital investments for the joint
venture.
"MPLX is excited to continue expanding our midstream operations on behalf of
Antero Resources by partnering with Antero Midstream," commented MPLX President
Don Templin. "This unique transaction further strengthens our long-term
relationship with the largest producer in the Appalachian Basin and provides
MPLX with substantial future organic growth opportunities."
# # #
About MPLX LP
MPLX is a diversified, growth-oriented master limited partnership formed in
2012 by Marathon Petroleum Corporation to own, operate, develop and acquire
midstream energy infrastructure assets. We are engaged in the gathering,
processing and transportation of natural gas; the gathering, transportation,
fractionation, storage and marketing of NGLs; and the transportation and storage
of crude oil and refined petroleum products. Headquartered in Findlay, Ohio,
MPLX's assets consist of a network of common carrier crude oil and products
pipeline assets located in the Midwest and Gulf Coast regions of the United
States; an inland marine business; a butane storage cavern located in West
Virginia with approximately one million barrels of storage capacity; crude oil
and product storage facilities (tank farms) with approximately 4.5 million
barrels of available storage capacity; a barge dock facility with approximately
78,000 barrels per day of crude oil and product throughput capacity; and
gathering and processing assets that include more than 5,600 miles of gas
gathering and NGL pipelines, 54 gas processing plants, 14 NGL fractionation
facilities and two condensate stabilization facilities.
Investor Relations Contacts:
Lisa D. Wilson (419) 421-2071
Doug Wendt (419) 421-2423
Denice Myers (419) 421-2965
Media Contacts:
Chuck Rice (419) 421-2521
Katie Merx (419) 672-5159
About Antero Midstream Partners LP
Antero Midstream Partners LP is a limited partnership that owns, operates and
develops midstream gathering, compression and integrated water assets located in
West Virginia and Ohio. The Partnership's website is located at
http://www.anteromidstream.com.
For more information, contact Michael Kennedy - CFO of Antero Midstream at (303)
357-6782 or mkennedy(at)anteroresources.com.
Forward-looking statements
This press release contains forward-looking statements within the meaning of
federal securities laws regarding MPLX LP ("MPLX"). These forward-looking
statements relate to, among other things, expectations, estimates and
projections concerning the business and operations of MPLX. You can identify
forward-looking statements by words such as "anticipate," "believe," "design,"
"estimate," "expect," "forecast," "goal," "guidance," "imply," "intend,"
"objective," "opportunity," "outlook," "plan," "position," "pursue,"
"prospective," "predict," "project," "potential," "seek," "strategy," "target,"
"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 MPLX's control and are
difficult to predict. Factors that could cause MPLX's actual results to differ
materially from those implied in the forward-looking statements include: our
ability to achieve the strategic and other objectives related to the
transactions described herein; the adequacy of MPLX's capital resources and
liquidity, including, but not limited to, availability of sufficient cash flow
to pay distributions, and the ability to successfully execute its business plans
and growth strategy; the timing and extent of changes in commodity prices and
demand for crude oil, refined products, feedstocks or other hydrocarbon-based
products; continued/further volatility in and/or degradation of market and
industry conditions; changes to the expected construction costs and timing of
projects; completion of midstream infrastructure by competitors; disruptions due
to equipment interruption or failure, including electrical shortages and power
grid failures; compliance with federal and state environmental, economic, health
and safety, energy and other policies and regulations and/or enforcement actions
initiated thereunder; changes to MPLX's capital budget; other risk factors
inherent to MPLX'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, 2015,
and Quarterly Report on Form 10-Q for the quarter ended March 31, 2016, filed
with the Securities and Exchange Commission ("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 or Form 10-Q could also have
material adverse effects on forward-looking statements. Copies of MPLX's Form
10-K and Form 10-Q are available on the SEC website, MPLX's website at
http://ir.mplx.com or by contacting MPLX's Investor Relations office.
MPLX Antero JV:
http://hugin.info/155038/R/2076298/780844.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: MPLX LP via GlobeNewswire
Datum: 06.02.2017 - 22:04 Uhr
Sprache: Deutsch
News-ID 522275
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