MarkWest Energy Partners Announces Acquisition of Granite Wash Assets from Chesapeake Energy in Texas Panhandle and Western

  MarkWest Energy Partners Announces Acquisition of Granite Wash Assets from
  Chesapeake Energy in Texas Panhandle and Western Oklahoma

Business Wire

DENVER -- May 08, 2013

MarkWest Energy Partners, L.P. (NYSE: MWE) (MarkWest) announced today the
execution of definitive agreements to acquire 100% of the ownership interests
of certain midstream assets in the Anadarko Basin from a wholly owned
subsidiary of Chesapeake Energy Corporation (NYSE: CHK) (Chesapeake), for
consideration of $245 million in cash. The transaction closed simultaneously
with the execution of the agreements.

The acquired assets consist of a 200 million cubic feet per day (MMcf/d)
cryogenic gas processing plant (Buffalo Creek Plant) and 22 miles of gas
gathering pipeline in Hemphill County, Texas, and approximately 30 miles of
rights-of-way associated with the future construction of a high-pressure trunk
line. Additional assets consist of an amine treating facility and a 5 mile gas
gathering pipeline in Washita County, Oklahoma. The high-recovery Buffalo
Creek Plant and associated trunk line are currently under construction and are
expected to be placed into service in early 2014. Producing formations in the
Anadarko Basin associated with these assets include the highly prolific
Granite Wash and Hogshooter formations, and multiple other attractive
liquids-rich zones.

In conjunction with the acquisition, MarkWest has executed long-term,
fee-based agreements with Chesapeake for gas gathering, compression, treating,
and processing services. As part of the gas processing agreement, Chesapeake
has dedicated approximately 130,000 acres throughout the Anadarko Basin.
MarkWest anticipates initial gas volumes from Chesapeake of approximately 50
MMcf/d, increasing to over 250 MMcf/d by 2017. Additionally, MarkWest
forecasts EBITDA of $30 million for the full-year 2014, increasing to more
than $50 million by 2017.

To support Chesapeake’s drilling program, MarkWest anticipates additional
capital investment of approximately $90 million over the next five years for
the completion and expansion of associated infrastructure. The majority of
capital will be spent over the next two years to finalize construction of the
Buffalo Creek Plant and the high-pressure trunk line to connect various
low-pressure gas gathering systems, which are owned and operated by third
parties. Once completed, these assets will be highly synergistic with
MarkWest’s existing operations in the Granite Wash, which include gas
gathering systems totaling 340 MMcf/d of throughput capacity and the 235
MMcf/d Arapaho processing complex in Custer County, Oklahoma.

In addition, Chesapeake and MarkWest have furthered their relationship in the
Appalachian Basin through the extension of a key processing agreement for five
additional years to 2020.

“We are very excited to expand our long-standing relationship with a highly
successful and proven operator like Chesapeake. The Granite Wash offers
producers some of the most profitable, de-risked areas of liquids-rich
production in the United States and we are pleased to support their
development plans in this area,” stated Frank Semple, Chairman, President, and
Chief Executive Officer of MarkWest. “This transaction provides MarkWest with
an unrivaled opportunity to strengthen and grow our leading midstream presence
in the Texas Panhandle and Western Oklahoma.”

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

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 and our Quarterly Report on
Form 10-Q for the quarter ended March 31, 2013. 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.


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