Replies to This Discussion

Permalink Reply by H Bale on August 9, 2013 at 2:04am

Also for those who have access to Seeking Alpha the link to the Earnings call transcript

http://seekingalpha.com/article/1619732-markwest-energy-partners-l-...

And our Marcellus Liberty segment, which was responsible for much of the volume growth, processed volumes increased by 25% since the last quarter and an impressive 158% when compared to the second quarter of last year. Our Liberty assets include 5 major processing complexes, with over 1.6 billion cubic feet per day of total processing capacity. And in order to support our producers' drilling success, we're on track to double our 2012 processing capacity, reaching 2.2 billion cubic feet per day by the end of this year.

We're also currently designing and constructing facilities to increase our total processing capacity to nearly 3 billion cubic feet per day by the end of next year, all of which is supported by long-term contracts with 12 producer customers. As you can tell, Liberty continues to be a major driver of our success in the largest producing gas field in the U.S.

At our Houston complex in Washington County, Pennsylvania, we continue to support Range Resources' very successful Marcellus wet and superrich gas development program. During the second quarter, we continued to set records for gas gathered and processed in support of Range's drilling program. Our 355 million cubic feet per day of capacity at Houston is now operating at about 90% of utilization.

Our Houston complex is connected to our Majorsville processing complex in Marshall County, West Virginia through a large rich gas header, and we gather and process Range's gas at both of these processing complexes. We currently operate 3 processing plants in Majorsville, with 470 million cubic feet per day of processing capacity supporting rich gas production from Range, as well as Chesapeake, CNX, Noble, Statoil and others.

Processed gas volumes continue to increase, and the Majorsville complex is currently operating at nearly 70% of capacity. In order to support the continued production growth from all of our producer customers, we will complete our fourth and fifth plants at Majorsville by the fourth quarter of 2013 and the first quarter of 2014, respectively. By increasing our total processing capacity at the complex to 870 million cubic feet per day, Majorsville will remain our largest processing complex in the Marcellus and will serve as a hub for both residue gas in the Northeast and for transportation of Marcellus NGLs north to Houston and west to Ohio for fractionation.

At our Mobley complex in Wetzel County, West Virginia, we have continued to experience increasing gas volumes from EQT, Magnum Hunter and Stone Energy. Our first 2 plants are now operating at almost 90% of capacity, and we will complete our third Mobley facility, a 200 million cubic feet per day plant, during the fourth quarter of this year. Yesterday, we announced plans to add additional capacity at our Mobley complex, anchored by a long-term agreement with EQT. The fourth plant will increase our total processing capacity at the Mobley Complex to 720 million cubic feet per day.

Now moving south in West Virginia to our Sherwood Complex in Doddridge County. We are continuing to expand our processing capacity to support Antero Resources' very successful drilling program. Our first Sherwood plant began operations last October and was full after only 6 months in operation. In May, we completed our second 200 million cubic feet per day plant that is currently ramping up as new Antero wells are brought on line. We will complete our third and fourth plant for Antero at Sherwood during the fourth quarter of this year and the second quarter of next year. So upon completion of all these announced facilities, Sherwood will have 800 million cubic feet per day of processing capacity.

Our Keystone processing complex in Butler County, Pennsylvania continues to operate near capacity, and in April, we will complete the 120 million cubic feet per day Bluestone II plant, which will support the ongoing volume increases from Rex Energy and other producers' development of rich gas acreage in northwest Pennsylvania.

While the growth of the Marcellus continues to be remarkable, the pace of development occurring in the neighboring Utica Shale is also very impressive. Together with our joint venture partner, EMG, we are developing the largest full service midstream system in this highly prospective play. We currently have agreements with 7 key producer customers operating in southeast Ohio.

And in order to support one of the most active areas of new drilling in the country, we have quickly installed 2 processing facilities, totaling 185 million cubic feet per day of capacity and a significant amount of gathering infrastructure. Our Utica development plans, over the next year, will result in hundreds of miles of additional pipelines, nearly 1 billion cubic feet per day of processing capacity and 138,000 barrels per day of C2+ fractionation and marketing services.

At our Cadiz complex in Harrison County, Ohio, we began operations of our first cryogenic plant in May, a 125 million cubic feet per day facility. In less than 2 months, the Cadiz complex is operating at approximately 75% of capacity as highly productive wells from Gulfport, Antero, PDC, Rex and others have been connected to our rich gas gathering system. Gulfport is our anchored gathering customer. And we have completed over 130 miles of low- and high-pressure pipelines, and we anticipate installing another 100 miles of pipeline during the remainder of this year.

One benefit of our gathering system is a bidirectional rich gas header that connects the Cadiz complex to the Seneca complex in Noble County, Ohio and eventually, to a third complex as part of our joint venture with Kinder Morgan. By connecting these large-scale complexes in Ohio, we are able to offer our producer customers significant flexibility and reliability for rich gas processing and connections to multiple major downstream interstate pipelines.

At Seneca, we will complete our first 2 processing plants totaling 400 million cubic feet per day of capacity during the fourth quarter of this year. The first plant is scheduled to be operational in October, and the second plant is scheduled to be completed by the end of the year.

In June, we announced an expansion of Seneca with the addition of a third 200 million cubic feet a day plant to support the drilling programs of Antero and other producers. The third plant is expected to be operational during the second quarter of next year, and it will increase the capacity of the Seneca complex to 600 million cubic feet per day.

• ▶ Reply