EQT Corporation (EQT) (NYSE: EQT) and MarkWest Energy Partners, L.P.
(MarkWest) (NYSE: MWE) today announced that MarkWest is acquiring EQT's
natural gas processing complex in Langley, Kentucky and an associated
natural gas liquids (NGL) pipeline for $230 million. The transaction is
expected to close during the first quarter 2011.
The Langley processing complex includes a 100 million cubic feet per day
(MMcfd) cryogenic processing plant, a 75 MMcfd refrigeration processing
plant, and approximately 28,000 horsepower of compression. Immediately
following the closing of the acquisition, MarkWest will commence the
installation of a new 60 MMcfd cryogenic processing plant to expand the
Langley cryogenic processing capacity. In conjunction with the closing
of the sale of the Langley plant, EQT will execute a long-term agreement
with MarkWest to provide processing services for its Kentucky
Huron/Berea shale gas and to extend its existing agreement with MarkWest
for NGL transportation, fractionation, and marketing services until 2022.
MarkWest will also complete the Ranger NGL pipeline, which is currently
under construction, to allow NGLs recovered at the Langley processing
complex to be delivered to MarkWest's Siloam fractionation, storage, and
marketing complex in South Shore, Kentucky. In 2008, MarkWest
significantly expanded the Siloam fractionator to a capacity of 24,000
barrels per day, in part to support the continued growth of EQT's
Huron/Berea shale development in Kentucky and West Virginia. MarkWest
will also process EQT's liquids-rich Marcellus gas in West Virginia.
"The sale of these valuable Kentucky assets is the first step in our
commitment to prioritize our capital to our most profitable investment
opportunities, which for us means development activities, primarily in
the Marcellus and also in the Huron/Berea, rather than processing
activities," said David Porges, president and chief executive officer of
EQT. "Consistent with this, we are pleased to expand EQT's long-standing
relationship with MarkWest in our existing Kentucky processing and
liquids handling and in new processing and liquids handling that will
support the development of West Virginia Marcellus shale."
?We are very excited to further expand our relationship with EQT through
the execution of this significant transaction,? said Frank Semple,
chairman, president and chief executive officer of MarkWest. ?For more
than 20 years we have been a leader in providing highly efficient and
fully integrated NGL processing, fractionation, and marketing services
in Appalachia. This transaction expands and complements our extensive
midstream systems that serve the Huron/Berea and Marcellus shales and
will provide strategic, long-term value to EQT.?
EQT Corporation is an integrated energy company with emphasis on
Appalachian area natural gas production, gathering, processing,
transmission and distribution. Additional information about the company
can be obtained through the company's web site, http://www.eqt.com;
Investor information is available on that site at http://ir.eqt.com.
EQT Corporation uses its web site as a channel of distribution of
important information about the company, and routinely posts financial
and other important information regarding the company and its financial
condition and operations on the Investors web pages.
Wells Fargo Securities, LLC advised EQT on this transaction.
EQT Cautionary Statements
Disclosures in this press release contain forward-looking statements.
Statements that do not relate strictly to historical or current facts
are forward-looking. Without limiting the generality of the foregoing,
forward-looking statements contained in this press release specifically
include EQT's expectations of plans, strategies, objectives and growth,
including guidance regarding the expected timing of closing of the
transaction, the amount of consideration to be received for the Kentucky
processing facility and related assets, and the availability of
processing capacity following the transaction. These statements involve
risks and uncertainties that could cause actual results to differ
materially from projected results. Accordingly, investors should not
place undue reliance on forward-looking statements on current
expectations and assumptions about the future events. While EQT
considers these expectations and assumptions to be reasonable, they are
inherently subject to significant business, economic, competitive,
regulatory and other risks and uncertainties, most of which are
difficult to predict and many of which are beyond EQT's control. The
risks and uncertainties that may affect the operations, performance and
results of the company's business and forward-looking statements
include, but are not limited to, those set forth under Item 1A, ?Risk
Factors? of EQT's Form 10-K filed for the year ended December 31, 2009,
as updated by any subsequent Form 10-Qs.
Any forward-looking statement speaks only as of the date on which such
statement is made and the company does not intend to correct or update
any forward-looking statement, whether as a result of new information,
future events or otherwise.
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 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, 2009, and Quarterly Report on Form
10-Q for the quarter ended September 30, 2010. 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
Frank Semple, 866-858-0482
President & CEO
Nancy Buese, 866-858-0482
VP and CFO
Dan Campbell, 866-858-0482
VP of Finance &
Chief IR Officer
Public Relations Manager