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Tuesday, September 30, 2014

MarkWest Utica EMG, L.L.C. and Ohio Gathering Company, L.L.C. Announce Definitive Agreements with American Energy – Utica, LLC

DENVER--(BUSINESS WIRE)--MarkWest Utica EMG, L.L.C. (“MarkWest Utica EMG”), a joint venture between MarkWest Energy Partners, L.P. (NYSE: MWE) and The Energy & Minerals Group, and Ohio Gathering Company, L.L.C. (“Ohio Gathering”), a joint venture between MarkWest Utica EMG and Summit Midstream Partners, LLC, today announced the completion of definitive agreements with American Energy – Utica, LLC (“AEU”), an affiliate of American Energy Partners, LP, to provide natural gas gathering, processing, and fractionation services in the Utica Shale in Ohio.
“The Utica is one of the fastest growing shale plays in the U.S. and we are excited to support American Energy as they are quickly establishing a significant presence in this premier resource play”
AEU has acquired a significant acreage position in highly prolific Utica Shale and with the agreements announced today, has dedicated more than 60,000 net acres in the rich-gas and condensate windows to MarkWest Utica EMG and Ohio Gathering.
Under the terms of the agreements, MarkWest Utica EMG will provide natural gas processing services at its Cadiz complex in Harrison County, Ohio and its Seneca complex in Noble County, Ohio. Combined, these two large complexes currently provide 725 million cubic feet per day of total processing capacity to eight key producer customers in the Utica Shale. Based on previous announcements, the two complexes will be expanded to more than 1.3 billion cubic feet per day of processing capacity by the second quarter of 2015.
MarkWest Utica EMG will fractionate AEU’s natural gas liquids (“NGLs”) at its jointly owned Hopedale complex, which currently includes 60,000 barrels per day (“Bbl/d”) of propane and heavier NGLs fractionation capacity and will be expanded to 120,000 Bbl/d of capacity by the first quarter of 2015. MarkWest Utica EMG will utilize its 40,000 Bbl/d de-ethanization facility at the Cadiz complex to produce purity ethane on behalf of AEU for delivery to the ATEX pipeline.
Ohio Gathering will provide natural gas gathering and compression services for all of AEU’s gas produced from the dedicated area. Ohio Gathering’s system currently consists of hundreds of miles of low- and high-pressure pipelines and numerous compression facilities throughout southeastern Ohio, including Harrison, Guernsey, Belmont, Noble and Monroe counties.
In addition to AEU, MarkWest Utica EMG and Ohio Gathering have existing long-term, fee-based gathering and or processing and fractionation agreements with the majority of producers operating in the southern core area of the Utica Shale, including Antero Resources Corporation (NYSE: AR), Gulfport Energy Corporation (NASDAQ: GPOR), Rex Energy Corporation (NASDAQ: REXX), PDC Energy, Inc. (NASDAQ: PDCE), and others.
“The Utica is one of the fastest growing shale plays in the U.S. and we are excited to support American Energy as they are quickly establishing a significant presence in this premier resource play,” commented Frank Semple, Chairman, President, and Chief Executive Officer of MarkWest. “Just over two and a half years ago, MarkWest and EMG began developing the most comprehensive and fully integrated midstream system in southeastern Ohio, and, together with Summit, we continue to build critical assets to support our producer customers’ drilling programs for decades to come.”

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, 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.
About The Energy & Minerals Group:
EMG is the management company for a series of specialized private equity funds. The Firm was founded by John Raymond (majority owner and CEO) and John Calvert in 2006. EMG focuses on investing across various facets of the global natural resource industry including the upstream and midstream segments of the energy complex. EMG has approximately $17.5 billion of regulatory assets under management (RAUM) and approximately $7.1 billion in commitments have been allocated across the energy sector since inception. For additional information, please visit www.emgtx.com.
About American Energy – Utica, LLC:
American Energy – Utica, LLC is an independent oil and natural gas company affiliated with American Energy Partners, LP that is focused on the acquisition, development and production of unconventional oil, natural gas liquids and natural gas resources in the Utica Shale play in eastern Ohio
About American Energy Partners, LP:
American Energy Partners, LP was founded by Aubrey K. McClendon in April 2013 to capitalize on opportunities available in unconventional resource plays onshore in the U.S. For additional information, please visitwww.americanenergypartners.com.
About Summit Midstream Partners, LP (“SMLP”) and Summit Midstream Partners, LLC:
SMLP is a growth-oriented limited partnership focused on developing, owning and operating midstream energy infrastructure assets that are strategically located in the core producing areas of unconventional resource basins, primarily shale formations, in North America. SMLP currently provides natural gas gathering, treating and processing services pursuant to long-term, primarily fee-based natural gas gathering and processing agreements with our customers and counterparties in four unconventional resource basins: (i) the Appalachian Basin, which includes the Marcellus Shale formation in northern West Virginia; (ii) the Williston Basin, which includes the Bakken and Three Forks shale formations in northwestern North Dakota; (iii) the Fort Worth Basin, which includes the Barnett Shale formation in north-central Texas; and (iv) the Piceance Basin, which includes the Mesaverde formation as well as the Mancos and Niobrara shale formations in western Colorado and eastern Utah. SMLP owns and operates more than 2,300 miles of pipeline and approximately 240,000 horsepower of compression. SMLP is headquartered in Dallas, TX with regional corporate offices in Houston, TX, Denver, CO and Atlanta, GA.
Summit Midstream Partners, LLC (“Summit Investments”) indirectly owns a 49.5% limited partner interest in SMLP and indirectly owns and controls the general partner of SMLP, Summit Midstream GP, LLC, which has sole responsibility for conducting the business and managing the operations of SMLP. Summit Investments owns, operates and is developing various crude oil, associated natural gas, and water-related midstream energy infrastructure assets in the Bakken Shale in North Dakota and in the DJ Niobrara Shale in Colorado. Summit Investments is also developing natural gas gathering and condensate stabilization infrastructure in the Utica Shale in southeastern Ohio under a joint venture agreement with affiliates of MarkWest Energy Partners, L.P. and The Energy & Minerals Group. Summit Investments is a privately held company owned by members of management, funds controlled by Energy Capital Partners II, LLC, and certain of its affiliates.

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