MarkWest Utica EMG and Rex Energy Announce Agreement for the Development of Midstream Infrastructure in the Utica Shale
DENVER--(BUSINESS WIRE)-- MarkWest Utica EMG, L.L.C. (MarkWest Utica EMG), a joint venture between MarkWest Energy Partners, L.P. (NYS: MWE) (MarkWest) and The Energy and Minerals Group (EMG), today announced definitive agreements with Rex Energy Corporation (NYS: REXX) (Rex) to provide gathering, processing, fractionation, and marketing services in the Utica Shale.
In Rex Energy's Warrior South Prospect, the company holds approximately 4,100 net acres. To date, the company drilled and completed three wells in the Warrior South Prospect. These wells have been shut-in since their completion and will be placed into sales once the related infrastructure is in place. In 2013, Rex Energy plans to drill and complete four additional wells and place into service seven wells in the Warrior South Prospect.
MarkWest Utica EMG expects to begin gathering and processing Rex's liquid-rich gas production in approximately June of this year. To support Rex and other Utica producers, MarkWest Utica EMG is constructing an extensive gathering system, two large- scale processing complexes and a C2+ fractionation and marketing complex by early 2014. 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 Rex and other producer customers operating in the core liquids-rich area of the Utica Shale.
"We are excited to further expand our relationship with Rex as they develop their highly-prospective acreage in the Utica Shale," said Frank Semple, Chairman, President and Chief Executive Officer of MarkWest. "Rex is a proven operator with extensive experience in the development of unconventional resource plays and this agreement further supports the build out of our midstream infrastructure in the Utica Shale."
"We are pleased to build on our already strong relationship with MarkWest as we develop our Utica Shale acreage," said Tom Stabley, Chief Executive Officer of Rex Energy. "MarkWest's extensive midstream experience will enable Rex Energy to further develop the value of our Warrior South prospects. Working together, we will continue to advance the responsible development of Rex Energy's acreage in the Utica Shale."
About MarkWest Energy Partners, L.P.
MarkWest Energy Partners, L.P. is a master limited partnership engaged in the gathering, transportation, and processing of natural gas; the transportation, fractionation, marketing, and storage of natural gas liquids; and the gathering and transportation of crude oil. MarkWest has extensive natural gas gathering, processing, and transmission operations in the southwest, Gulf Coast, and northeast regions of the United States, including the Marcellus Shale, and is the largest natural gas processor and fractionator in the Appalachian region.
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. 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, 2011 and its Quarterly Reports on Form 10-Q for the quarters ended March 31, 2012, June 30, 2012 and September 30, 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.
About Rex Energy Corporation
Rex Energy is headquartered in State College, Pennsylvania and is an independent oil and gas exploration and production company operating in the Appalachian and Illinois Basins within the United States. For more information, please visit www.rexenergy.com
Except for historical information, statements made in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are indicated by words such as "expected", "expects", "anticipates", "intends" and similar words. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management's assumptions and the company's future performance are subject to a wide range of business risks and uncertainties, and there is no assurance that these goals and projections can or will be met. All forward-looking statements in this release are expressly qualified in their entirety by this cautionary statement. Any forward-looking statements in this release are made as of the date hereof and we do not undertake any obligation to update any projections or forward-looking statements, except as may be required by law. Investors are also directed to other risks discussed in documents filed by us with the Securities and Exchange Commission.
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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
Rex Energy Corporation
Mark Aydin, 814-278-7249
KEYWORDS: United States North America Colorado Pennsylvania
The article MarkWest Utica EMG and Rex Energy Announce Agreement for the Development of Midstream Infrastructure in the Utica Shale originally appeared on Fool.com.
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