MarkWest Energy Partners L.P.
) recently announced a public offering of 6 million common units to
increase its liquidity. MarkWest Energy also plans to offer a
30-day option to the underwriters to purchase an additional 900,000
MARKWEST EGY PT (MWE): Free Stock Analysis
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The net proceeds from this offering will be utilized for capital
expenditure program, general working capital and other partnership
During the second quarter of 2012, the partnership raised $427.2
million of net equity proceeds, offering 8.0 million common units.
The proceeds were used partially for MarkWest's purchase of 100%
ownership interest in Keystone Midstream Services. As of June 30,
2012, MarkWest Energy had $121.7 million of cash and cash
The partnership has been paying distribution steadily over the
years. MarkWest Energy paid a dividend of 80 cents per unit in
second quarter 2012, representing an increase of 1.3% sequentially
and 14.3 % year over year.
Denver, Colorado-based MarkWest Energy Partners LP, a master
limited partnership (MLP), is engaged in the gathering, processing
and transmission of natural gas, transportation, fractionation and
storage of natural gas liquids (NGLs), and the gathering and
transportation of crude oil. MarkWest Energy conducts its
operations through four segments: the Southwest, the Northeast, the
Gulf Coast and Liberty.
We like MarkWest's high-quality and diverse portfolio of midstream
assets, which generate stable and recurring revenues by way of
long-term fee-based contracts. It is one of the ace processors of
natural gas in the Northeast and is the largest gatherer of natural
gas in the prolific Carthage field in East Texas. Additionally, the
partnership has a number of other gas gathering and intrastate gas
transmission assets in the Southwest, primarily in Texas and
In 2010, MarkWest teamed up with another MLP,
Sunoco Logistics Partners L.P.
), to build a distribution system to transport ethane produced in
the Marcellus Shale Basin (in Northeastern U.S.) to markets along
the Gulf Coast.
MarkWest Energy currently holds a Zacks #3 Rank, which translates
into a short-term Hold rating. We are also maintaining our
long-term Neutral recommendation on the stock.