At a special meeting held today, unitholders of MarkWest Energy Partners, L.P. (NYSE: MWE) approved a strategic combination with MPLX LP (NYSE: MPLX) by voting to approve the merger agreement dated July 11, 2015, as amended. Based on the voting results, approximately 80 percent of the units voted at the special meeting were in favor of the merger agreement.
The transaction will result in MarkWest, the second-largest processor of natural gas in the United States and largest processor and fractionator in the Marcellus and Utica shale plays, becoming a wholly owned subsidiary of MPLX, a rapidly growing crude oil and refined products logistics partnership sponsored by Marathon Petroleum Corporation(NYSE:MPC). The combination creates one of the largest master limited partnerships (MLPs) and is expected to generate a mid-20 percent compound annual distribution growth rate through 2019.
“We are pleased the overwhelming majority of MarkWest unitholders voting supported the combination and we look forward to delivering on the significant opportunities in front of the combined partnership,” said Gary R. Heminger,MPLX chairman and chief executive officer. “This combination creates a large-cap diversified midstream partnership with an extraordinary growth profile, underpinned by MarkWest’s large organic growth backlog and MPC’s large inventory of MLP-eligible assets.”Continue reading by clicking here.
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