Natural gas processor and distributor,
MarkWest Energy Partners LP
) announced the sale of some pipelines and natural gas gathering
assets in Doddridge County, W.Va. to Dallas, Texas-based
Summit Midstream Partners LP
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The assets include over 40 miles of recently constructed
high-pressure gas gathering pipelines, certain rights-of-way
related with the pipeline and two compressor stations totaling
above 21,000 horsepower of combined compression. The transaction
is likely to close this month.
The gas gathered by the system will be processed at MarkWest's
Sherwood processing complex in Doddridge County. The rich-gas
gathering and compression system will gather gas produced by an
associate of Antero Resources Corporation under a long-term,
fee-based agreement. Antero is an anchor producer at MarkWest's
Sherwood processing complex. To support Antero's rising rich-gas
production, MarkWest plans to set up two extra plants at the
Sherwood complex by mid-2014.
Summit Midstream will shell out $210 million for the above
transaction. These proceeds will enhance MarkWest's financial
flexibility to finance its midstream infrastructure projects
mainly in the Marcellus and Utica shales. MarkWest expects to
have more than 4 billion cubic feet per day of processing
capacity and 275,000 barrels per day of fractionation capacity in
both these shale plays by the end of 2014.
Last month, in order to assist the fast increasing drilling
operations in the southern part of the Utica Shale, MarkWest
Utica EMG L.L.C. further expanded its midstream operations.
MarkWest Utica EMG L.L.C. is a joint venture between MarkWest and
The Energy and Minerals Group. The plan included building of the
third cryogenic gas processing plant, which is expected to
process cryogenic gas at a rate of 200 million cubic feet per
MarkWest 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 months.
Meanwhile, one can look at other energy production/pipeline
Enbridge Energy Management LLC
Enterprise Products Partners LP
) as attractive investments. Both these firms sport a Zacks Rank