 |
Exhibit 99.1
|

|
Marcellus &
Utica NGL & Shale Gas Infrastructure Randy Nickerson Sr. V.P. & Chief
Commercial Officer May 30, 2012
|
|

|
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 quarter ended March 31, 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 MarkWests
business, financial condition, or results of operations could be materially
adversely affected. Key uncertainties and risks that may directly affect
MarkWests 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 MarkWests contracts; Effects of
MarkWests 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 MarkWests 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
|
|

|
Geographic
Footprint UTICA Joint Venture with EMG Under construction: 365 MMcf/d at the
Harrison County processing complex 200 MMcf/d at the Noble County processing
complex 100,000 Bbl/d fractionation, storage, and marketing complex in
Harrison County SOUTHWEST Granite Wash, Woodford, Cotton Valley, Travis Peak,
Haynesville 1.6 Bcf/d gathering capacity 655 MMcf/d processing capacity 1.5
Bcf/d transmission capacity including Arkoma Connector Pipeline JV with
ArcLight Under construction: 120 MMcf/d processing capacity in East Texas
NORTHEAST Huron/Berea Shale 505 MMcf/d processing capacity 24,000 Bbl/d NGL
fractionation facility 285,000 Bbl NGL storage NGL marketing by truck, rail,
& barge Under construction: 150 MMcf/d processing capacity at Langley
LIBERTY Marcellus Shale 325 MMcf/d gathering capacity 625 MMcf/d processing
capacity 60,000 Bbl/d C3+ fractionator 90,000 Bbl NGL storage Under
construction: 1.5 Bcf/d processing capacity 115,000 Bbl/d de-ethanization
50,000 Bbl/d Mariner West project GULF COAST 140 MMcf/d cryogenic gas plant
processing refinery off-gas 29,000 Bbl/d NGL fractionation capacity NGL
marketing and transportation 3
|
|

|
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
|
|

|
5 Resource Play
Economics Source: Goldman Sachs February, 2012
|
|

|
Cost of Equity
Capital Source: CapIQ as of March 5, 2012 6
|
|

|
Commitment to
Resource Plays 7 Net capital investments in emerging resource plays since
2006 are driving strong, long-term volume growth. Emerging Resource Plays
Base Production (Conventional / Tight Sand)
|
|

|
The Midstream
Leader in Northeast Shales 8 Utica Shale Marcellus Shale Huron Shale Keystone
Midstream
|
|

|
Liberty Project
Development TEPPCO PRODUCTS PIPELINE SUNOCO PIPELINE EPD ATEX EXPRESS
PIPELINE 9 By 2014, Liberty will have integrated and scalable gathering,
processing, fractionation, and marketing infrastructure to support production
in excess of 2.5 Bcf/d Mariner West De-ethanization Houston I, II, III
Majorsville I, II, III, IV, V, VI De-ethanization I, II Sarsen &
Bluestone I, II, III Sherwood I, II Mobley I, II Harrison Fractionation &
marketing facilities Houston Processing and Fractionation Complex Houston I -
III 355 MMcf/d C3+ Fractionation 60,000 Bbl/d Interconnect to TEPPCO pipeline
Under Construction Rail Loading (August 2012) 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 Under Construction 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 Under Construction
Mobley I (4Q12) 200 MMcf/d Mobley II (1Q13) 120 MMcf/d NGL Pipeline to
Majorsville (2Q12) Sherwood Processing Complex Under Construction 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 NGL Storage 12,000 Bbbl Under
Construction Bluestone II (4Q13) 120 MMcf/d Bluestone III (TBD) 200 MMcf/d
NGL Pipeline to the North (2014)
|
|

|
MarkWest Utica
Projects 10 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 Recent Developments Letter of intent
with GulfPort to provide gathering, processing, fractionation and marketing
for liquids-rich Utica production Letter agreement with Rex Energy and
Sumitomo to discuss similar midstream services Harrison Processing and
Fractionation Complex Under Construction Harrison Interim (3Q12) 40 MMcf/d
Harrison I (1Q13) 125 MMcf/d Harrison II (2013) 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 Under Construction Noble Interim (4Q12) 43 MMcf/d Noble I (2013) 200
MMcf/d NGL Pipelines Under Construction NGL Pipeline from Harrison to
Majorsville (4Q13) NGL Pipeline from Harrison to Noble (4Q13)
|
|

|
MarkWests Area
of Operation in the Marcellus and Utica We Continue to Expand our Fully
Integrated Midstream Services in the Marcellus Shale By 2014, we will have
midstream infrastructure capable of: Supporting rich-gas production of nearly
3 Bcf/d C2+ fractionation capacity of more than 275,000 Bbl/d Providing
multiple market outlets for producers gas, ethane, propane, and heavier NGLs
Leveraging nearly 25 years of NGL marketing experience in Northeast markets
11 Majorsville Processing & De-Ethanization Mobley Processing Houston
Processing & Fractionation Noble Processing Harrison Processing &
Fractionation Keystone Processing Rich Utica Rich Marcellus Sherwood
Processing
|
|

|
12 Recent
Shifts in NGL Economics Are Dramatic Source: BENTEK Source: BENTEK Source:
BENTEK Source: BENTEK 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 Bcf/d Gross Gas
Production Marcellus Utica Processing Capacity 0.80 0.90 1.00 1.10 1.20 1.30
1.40 1.50 1.60 $/Gallon MB Avg. Weighted NGL Price 5-Yr Avg Last Year This
Year 5/25/2012 Source: ICE 5 15 25 35 45 55 65 $/bbl : $/MMbtu Crude-to-Gas
Price Ratio 5-Yr Avg Last Year This Year 5/25/2012 Source: ICE/CME
|
|

|
Marcellus
Ethane A Third-Party Viewpoint 13 Implied Ethane Production In the
Marcellus Based on Processing Capacity Source: Wells Fargo, January 2012
|
|

|
Increasing
Demand for US Ethane 14 Source: En*Vantage, Industry Contacts US Ethylene
Industry's Max Capability to Crack Ethane (1000 BPD) 0 200 400 600 800 1,000
1,200 1,400 1,600 1,800 2,000 2011 2012 2013 2014 2015 2016 2017 2018 2019
2020 Low Probability New Plants High Probability New Plants
Converisons/Expansions/Restarts 2011 C2 Cracking Capability
|
|

|
Marcellus and
Utica Ethane Solutions Ethane demand is projected to increase by more than
40% over the next six years We are constructing four large de-ethanizers at
the Houston, Majorsville, and Harrison complexes EPDs ATEX line is needed to
support the conversions and expansions of existing ethylene plants to crack
more ethane 15 Multiple Ethane Pipeline Projects in Marcellus and Utica
Provide Critical Flexibility The Mariner West and Mariner East projects, as
well potential new ethane crackers, provide critical options for growing
ethane production
|
|

|
Mariner East:
An Ethane and Propane Solution Mariner East is a scalable project that can
deliver ethane and propane to attractive North America and international NGL
markets Mariner East would transport a mixed E/P stream to Marcus Hook
(Philadelphia) where the E/P mix would be fractionated into purity products
Creates a critical export market for Marcellus and Utica ethane and an
alternative option for Gulf Coast ethane deliveries. Projected propane
production from the Marcellus and Utica supports the potential export of
propane from the Northeast Provides new pipeline options for delivering
propane into Pennsylvania and New York markets using existing Sunoco pipeline
assets Potential propane exports include Belvieu-based sales to Caribbean and
South America markets and naphtha-based sales to European markets 16 Sarnia
Pittsburgh Gulf Coast Philadelphia
|
|

|
Marcellus &
Utica NGL Marketing Options are Critical Without multiple fractionation,
storage and marketing options, consistent operations will be challenging
MarkWest has prepared by: Constructing two interconnected fractionation
complexes in the Northeast Providing NGL marketing by truck, rail, and TEPPCO
pipeline Securing NGL storage of approximately 1.4 million Bbls Developing
infrastructure for ethane production with deliveries to Mariner East &
West and EPDs ATEX pipeline Ethane takeaway pipeline receipt requirements
are unclear NGL supply and demand relationships are changing Current
economics strongly favor producers with the best positioned midstream
provider 17 Maximizing NGL Pricing Requires Multiple Fractionation, Storage
and Marketing Options
|
This web site and associated pages are not associated with, endorsed by, or sponsored by MARKWEST ENERGY PARTNERS L P and has no official or unofficial affiliation with MARKWEST ENERGY PARTNERS L P
Based on public records. Inadvertent errors are possible. Faqs.org does not guarantee the accuracy or timeliness of any information on this site. Use at your own risk.
This website is not associated with the SEC
Some parts © 2013 Advameg, Inc.
|
|