MarkWest Utica EMG Announces Definitive Agreements with PDC Energy and Provides Update to Utica Development Plans

  MarkWest Utica EMG Announces Definitive Agreements with PDC Energy and
  Provides Update to Utica Development Plans

Business Wire

DENVER -- March 18, 2013

MarkWest Utica EMG, L.L.C. (MarkWest Utica EMG), a joint venture between
MarkWest Energy Partners, L.P. (NYSE: MWE) (MarkWest) and The Energy and
Minerals Group (EMG), today announced definitive agreements with PDC Energy,
Inc. (NASDAQ: PDCE) (PDC) to provide gathering, processing, fractionation, and
marketing services in the Utica Shale.

MarkWest Utica EMG expects to begin gathering and processing PDC’s
liquids-rich gas production from Guernsey County, Ohio by the end of the
second quarter of 2013. Initial production from PDC’s Utica operations will be
processed at the Cadiz complex located in Harrison County, Ohio. In the second
half of 2013, PDC’s gas will be transported via MarkWest Utica EMG’s
high-pressure rich-gas header system to the Seneca complex located in Noble
County, Ohio for processing. In addition to developing high-quality gathering
and processing infrastructure on behalf of PDC, during the first quarter of
2014 MarkWest Utica EMG and MarkWest are expected to complete the installation
of 100,000 barrels per day of C2+ fractionation capacity in Harrison County,
Ohio that will include extensive marketing access by truck, rail, and
pipeline. When completed, MarkWest Utica EMG and MarkWest will have the
largest processing and fractionation capacity in the Utica Shale. The
fractionation facility will also be connected by an NGL pipeline to MarkWest’s
extensive NGL infrastructure in the Marcellus Shale and to its Houston,
Pennsylvania complex, the largest fractionation and marketing facility in the
Northeast. The large-scale and fully-integrated midstream system will provide
significant flexibility and redundancy for PDC and other producer customers
operating in the core liquids-rich area of the Utica Shale.

In just over nine months, MarkWest Utica EMG has announced long-term,
fee-based agreements with four major producers operating in the core of the
hydrocarbon-rich area located in the southern portion of the Utica Shale play
including Gulfport Energy Corporation (Gulfport), Antero Resources (Antero),
Rex Energy Corporation (Rex), and PDC. These producers will have access to
MarkWest Utica EMG’s fully-integrated midstream system extending throughout a
multi-county area in eastern Ohio. MarkWest Utica EMG currently has 60 MMcf/d
of refrigeration processing capacity available at the Cadiz complex and,
during the second quarter of 2013, will begin operation of its 125 MMcf/d
Cadiz I cryogenic processing facility. The 185 MMcf/d of combined processing
capacity at the Cadiz complex is expected to provide the needed capacity to
support the 2013 drilling plans of anchor tenants Gulfport and Antero, in
addition to Rex, PDC and other producer customers. MarkWest Utica EMG expects
to complete the first 200 MMcf/d Seneca facility by October of this year and
will have sufficient capacity to meet all its producers’ priority
requirements, as well as provide significant interruptible processing capacity
as needed. To further meet the growing demand of its producer customers,
MarkWest Utica EMG will complete the second 200 MMcf/d Seneca facility by the
end of this year, bringing its total processing capacity in the Utica Shale to
585 MMcf/d. The Seneca and Cadiz complexes will be connected by a large
high-pressure gas pipeline that can be operated as a single large processing
complex to provide its producer customers with significant reliability and
residue gas market flexibility.

“We are excited to support PDC in the development of their rich-gas acreage in
the southern Utica Shale and continue to rapidly develop significant midstream
infrastructure in eastern Ohio,” stated Frank Semple, Chairman, President, and
Chief Executive Officer of MarkWest. “With our partner EMG, we are committed
to providing our producer customers with superior customer service throughout
this emerging resource play.”

MarkWest Energy Partners, L.P. is a master limited partnership engaged in the
gathering, processing and transportation of natural gas; the gathering,
transportation, fractionation, storage and marketing of natural gas liquids;
and the gathering and transportation of crude oil. MarkWest has a leading
presence in many unconventional gas plays including the Marcellus Shale, Utica
Shale, Huron/Berea Shale, Haynesville Shale, Woodford Shale and Granite Wash
formation.

This press release includes “forward-looking statements.” All statements other
than statements of historical facts included or incorporated herein may
constitute forward-looking statements. Actual results could vary significantly
from those expressed or implied in such statements and are subject to a number
of risks and uncertainties. Although MarkWest believes that the expectations
reflected in the forward-looking statements are reasonable, MarkWest can give
no assurance that such expectations will prove to be correct. The
forward-looking statements involve risks and uncertainties that affect
operations, financial performance, and other factors as discussed in filings
with the Securities and Exchange Commission (SEC). Among the factors that
could cause results to differ materially are those risks discussed in the
periodic reports filed with the SEC, including MarkWest’s Annual Report on
Form 10-K for the year ended December 31, 2012. You are urged to carefully
review and consider the cautionary statements and other disclosures made in
those filings, specifically those under the heading “Risk Factors.” MarkWest
does not undertake any duty to update any forward-looking statement except as
required by law.

Contact:

MarkWest Energy Partners, L.P.
Frank Semple, 866-858-0482
Chairman, President & CEO
or
Nancy Buese, 866-858-0482
Senior VP & CFO
or
Josh Hallenbeck, 866-858-0482
VP of Finance & Treasurer
investorrelations@markwest.com
 
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