On Jan 30, natural gas processor and distributor,
MarkWest Energy Partners LP
) released an operational update, highlighting its developments
in the unconventional Marcellus and Utica shale gas plays.
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The market reacted positively to the news, with MarkWest shares
reaching $70.57 per share in intraday trade on Jan 31, before
settling at $70.19, up from the previous close of $69.66.
In compliance with its previous announcement of increasing its
presence in the Northeast, MarkWest has brought online 2
fractionation projects with a total capacity of 98,000 barrels
per day (Bbl/d) of C2+ and 5 cryogenic processing facilities with
a total capacity of 1 billion cubic feet per day (Bcf/d). With an
objective to penetrate further into the Northeast, the
partnership has 17 projects underway. Upon completion, these
processing and fractionation projects are expected to increase
MarkWest's total production to more than 4.7 Bcf/d and
fractionation capacity to more than 400,000 Bbl/d.
Marcellus Shale Update
During the last quarter of 2013, MarkWest brought online three
new processing plants at the Majorsville, Mobley, and Sherwood
complexes. With these additions, the partnership now has a
capacity of more than 2.2 Bcf/d in the shale.
MarkWest's total capacity increased to 670 million cubic feet per
day (MMcf/d) at the Majorsville complex, where the partnership
had brought online the 200 MMcf/d Majorsville V facility, which
supports production from
Chesapeake Energy Corp.
). The partnership's total capacity increased to 520 MMcf/d at
the Mobley complex, with the addition of the 200 MMcf/d Mobley
III plant that supports production from
) and Magnum Hunter Resources Corp. With the addition of the 200
MMcf/d Sherwood III plant at the Sherwood complex, that supports
Antero Resources Corporation's Marcellus program, total capacity
has increased to 600 MMcf/d.
With the commencement of its second de-ethanization facility,
MarkWest's purity ethane fractionation capacity doubled to 76,000
Bbl/d in December. The partnership's Liberty Ethane Pipeline has
also started operation.
Utica Shale Update
A joint venture (JV) between MarkWest and The Energy and Minerals
group, MarkWest Utica EMG started operations at the Seneca
complex. The complex, in Noble County, Ohio, comprises two 400
MMcfe/d processing plants that support production from Antero,
PDC Energy, Rex Energy Corp. and others.
Last month, MarkWest and its JV brought online the Hopedale
fractionation and marketing complex. The partnership also brought
online a pipeline that links its Marcellus and Utica NGL
Denver, Colorado-based MarkWest Energy currently carries a Zacks
Rank #3 (Hold), implying that it is expected to perform in-line
with the broader U.S. equity market over the next one to three