MarkWest Energy Partners L.P. (NYSE: MWE) has closed the acquisition of 49% interest in MarkWest Liberty Midstream & Resources LLC, held by The Energy & Minerals Group. The acquisition included approximately $1 billion of cash and the issuance of 19.95 million unregistered MWE Class B Units to EMG.
MarkWest and EMG are also entering into a new Utica Shale midstream joint venture to develop natural gas processing and NGL fractionation, transportation, and marketing infrastructure in eastern Ohio beginning in 2012. Under the terms of the Utica joint venture, EMG will fund a majority of the initial capital expenditures required to develop the Utica midstream infrastructure.
“We are very pleased to complete the acquisition of EMG’s interest in the Liberty joint venture,” said Frank Semple, chairman, president and chief executive officer of MarkWest. “The Liberty joint venture has been very successful in leveraging its first-mover advantage to become the largest provider of world-class midstream infrastructure critical to the development of the liquids-rich area of the Marcellus. Given the quality and compelling producer economics of the Marcellus shale, we anticipate significant additional growth in our producers’ volumes and our midstream assets for years to come. We are also pleased to be forming a joint venture with EMG to develop integrated midstream infrastructure in the liquids-rich corridor of the Utica Shale and look forward to providing more details in early 2012.”
"We are pleased to announce the completion of the sale of EMG's interest in the Liberty joint venture to MarkWest,” stated John Raymond, managing partner and CEO of EMG. “By virtue of this transaction, MarkWest has captured the strategic value associated with the consolidated interest in the joint venture and EMG will become a significant equity owner of MarkWest."
Citigroup acted as the exclusive financial advisor and Locke Lord LLP served as legal counsel to EMG in connection with the transaction.
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