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8-K - 8-K - MARKWEST ENERGY PARTNERS L Pa12-21991_18k.htm
EX-99.1 - EX-99.1 - MARKWEST ENERGY PARTNERS L Pa12-21991_1ex99d1.htm

Exhibit 99.2

 

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“Splitting the Gas Well Stream” Pittsburgh Chemical Day September 25, 2012

 


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Forward-Looking Statements This presentation contains forward-looking statements and information. These forward-looking statements, which in many instances can be identified by words like “could,” “may,” “will,” “should,” “expects,” “plans,” “project,” “anticipates,” “believes,” “planned,” “proposed,” “potential,” and other comparable words, regarding future or contemplated results, performance, transactions, or events, are based on MarkWest Energy Partners, L.P. (“MarkWest” and the “Partnership”) current information, expectations and beliefs, concerning future developments and their potential effects on MarkWest. Although MarkWest believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct, and actual results, performance, distributions, events or transactions could vary significantly from those expressed or implied in such statements and are subject to a number of uncertainties and risks. Among the factors that could cause results to differ materially are those risks discussed in the periodic reports MarkWest files with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2011 and its Quarterly Report on Form 10-Q for the quarters ended March 31, 2012 and June 30, 2012. You are urged to carefully review and consider the cautionary statements and other disclosures, including those under the heading “Risk Factors,” made in those documents. If any of the uncertainties or risks develop into actual events or occurrences, or if underlying assumptions prove incorrect, it could cause actual results to vary significantly from those expressed in the presentation, and MarkWest’s business, financial condition, or results of operations could be materially adversely affected. Key uncertainties and risks that may directly affect MarkWest’s performance, future growth, results of operations, and financial condition, include, but are not limited to: Fluctuations and volatility of natural gas, NGL products, and oil prices; A reduction in natural gas or refinery off-gas production which MarkWest gathers, transports, processes, and/or fractionates; A reduction in the demand for the products MarkWest produces and sells; Financial credit risks / failure of customers to satisfy payment or other obligations under MarkWest’s contracts; Effects of MarkWest’s debt and other financial obligations, access to capital, or its future financial or operational flexibility or liquidity; Construction, procurement, and regulatory risks in our development projects; Hurricanes, fires, and other natural and accidental events impacting MarkWest’s operations, and adequate insurance coverage; Terrorist attacks directed at MarkWest facilities or related facilities; Changes in and impacts of laws and regulations affecting MarkWest operations and risk management strategy; and Failure to integrate recent or future acquisitions. 2

 


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MARKWEST OVERVIEW

 


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Growth Driven by Customer Satisfaction 4 Ranked #1 in Midstream Customer Satisfaction Survey for 2011 Since 2006, we have been ranked #1 or #2 by EnergyPoint Research

 


MarkWest Operational Assets: Focused on the Shales UTICA Utica Shale Under construction: 830 MMcf/d at the Harrison and Noble processing complexes 100 MBbl/d fractionation, storage, and marketing complex in Harrison County SOUTHWEST Granite Wash, Woodford, Cotton Valley, Haynesville 1.6 Bcf/d gathering capacity 655 MMcf/d processing 1.5 Bcf/d transmission capacity including Arkoma Connector Pipeline Under construction: 120 MMcf/d processing capacity in East Texas NORTHEAST Huron/Berea Shale 505 MMcf/d processing 24 MBbl/d fractionation 285 MBbl NGL storage NGL marketing by truck, rail, & barge Under construction: 150 MMcf/d processing capacity at Langley LIBERTY Marcellus Shale 390 MMcf/d gathering 715 MMcf/d processing 60 MBbl/d C3+ fractionator 90 MBbl NGL storage Under construction: 1.8 Bcf/d processing 115 MBbl/d C2 fractionation 50 MBbl/d Mariner West ethane pipeline project GULF COAST 140 MMcf/d cryogenic gas plant processing refinery off-gas 29 MBbl/d NGL fractionation capacity NGL marketing and transportation 5

 


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Liquids-Rich Processing Economics Source: Range Resources, September 4, 2012 Projected Mcf Realized Price at Various Levels of Processing Dry Gas Wet Gas Sales & Condensate Only Ethane Left in Gas Stream Ethane Recovered January 2012 Prices: $3.08 HH, $100.32 WTI, 50% WTI, & $0.55 ethane Gross Field Level Price for one mcf $3.20 $4.96 $6.80 $7.34 Assumed Transportation, Gathering & Compression Costs (1.00) (1.00) (1.00) (1.00) Net mcf Realized Price $2.20 $3.96 $5.80 $6.34 Current Prices: $3.00 HH, $93.00 WTI, 47% WTI, & $0.42 ethane Gross Field Level Price for one mcf $3.12 $4.78 $6.25 $6.42 Assumed Transportation, Gathering & Compression Costs (1.00) (1.00) (1.00) (1.00) Net mcf Realized Price $2.12 $3.78 $5.25 $5.42 Based on 12/2011 Gas Quality and Volumes 1,266 Processing Plant Inlet Btu (12/11) 1,040 Btu assumed dry gas All processing costs, shrink and fuel included 0.0126 Bbls per mcf for condensate 2.285 gallons per mcf for NGLs (5.246 gpm with ethane extraction) Dry Gas Field Price ~ $3.12/mcf Processed Wet Gas Field Price ~ $6.42/mcf Note: Realizations will change as gas quality changes (Total revenues, less processing fees and expenses, divided by total inlet mcf) 6

 


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MarkWest Liberty: 715 MMcf/d of processing capacity TEPPCO PRODUCTS PIPELINE SUNOCO PIPELINE EPD ATEX EXPRESS PIPELINE 7 Growing to 2.2 Bcf/d and Fractionation capacity of 172,000 Bbl/d by the end of 2013 Mariner West De-ethanization I Houston I, II, III De-ethanization I, II Majorsville I, II, III, IV, V, VI Sarsen & Bluestone I, II, III Sherwood I, II Mobley I, II Harrison Fractionation & marketing facilities Proposed Shell ethane cracker Houston Processing and Fractionation Complex Houston I - III 355 MMcf/d C3+ Fractionation 60,000 Bbl/d Interconnect to TEPPCO pipeline Rail Loading 200 Rail cars De-ethanization (mid-2013) 38,000 Bbl/d Mariner West ethane pipeline (3Q13) 50,000 Bbl/d Majorsville Processing and Fractionation Complex Majorsville I & II 270 MMcf/d NGL Pipeline to Houston 43,400 Bbl/d Majorsville III - V (2013) 600 MMcf/d Majorsville VI (2014) 200 MMcf/d De-ethanization (mid-2013) 38,000 Bbl/d De-ethanization (2014) 38,000 Bbl/d Purity Ethane Pipeline to Houston (3Q13) Mobley Processing Complex Mobley I (4Q12) 200 MMcf/d Mobley II (1Q13) 120 MMcf/d NGL Pipeline to Majorsville (3Q12) Sherwood Processing Complex Sherwood I (3Q12) 200 MMcf/d Sherwood II (4Q13) 200 MMcf/d NGL Pipeline to Mobley (3Q12) Keystone Sarsen 40 MMcf/d Bluestone I 50 MMcf/d Bluestone II (4Q13) 200 MMcf/d Bluestone III (TBD) 120 MMcf/d NGL Pipeline into Northwest PA (4Q13)

 


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MarkWest Utica: 230 MMcf/d by 1Q2013 8 Growing to 430 MMcf/d and Fractionation capacity of 60,000 Bbl/d by the end of 2013 Mobley Sherwood Houston Majorsville Noble I Harrison de-ethanization Proposed Shell ethane cracker TEPPCO PRODUCTS PIPELINE EPD ATEX EXPRESS PIPELINE Sarsen & Bluestone INTERCONNECT TO 3RD PARTY PIPELINE Harrison I SUNOCO PIPELINE Joint venture with The Energy & Minerals Group (EMG) to develop significant midstream infrastructure to serve producers’ drilling programs in the liquids-rich Utica Shale in eastern Ohio EMG will fund the first $500 million of capital expenditures Harrison Processing and Fractionation Complex Harrison Interim (3Q12) 60 MMcf/d Harrison I (1Q13) 125 MMcf/d Harrison II (TBD) 200 MMcf/d C3+ Fractionation (4Q13) 60,000 Bbl/d Interconnect to TEPPCO pipeline (4Q13) Interconnect to ATEX pipeline (1Q14) De-ethanization (1Q14) 40,000 Bbl/d Truck Loading (mid-2013) 8 Bays Rail Loading (mid-2013) 200 Rail cars Noble Processing Complex Interim Noble Refridgeration (4Q12) 45 MMcf/d Noble I (3Q13) 200 MMcf/d Noble II (TBD) 200 MMcf/d NGL Pipelines NGL Pipeline from Harrison to Majorsville (4Q13) NGL Pipeline from Harrison to Noble (4Q13)

 


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1515 ARAPAHOE STREET TOWER 1, SUITE 1600 DENVER, COLORADO 80202 PHONE: 303-925-9200 INVESTOR RELATIONS: 866-858-0482 EMAIL: INVESTORRELATIONS@MARKWEST.COM WEBSITE: WWW.MARKWEST.COM