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Current MWE Stock Info

MarkWest plans on increasing distribution thru 2020

During the company’s conference call today, Frank Semple, Chairman, President and Chief Executive Officer of MarkWest Energy Partners (ticker: MWE) announced that MWE expects to increase its distribution to approximately $3.70 for this year, $0.16 (or 4.5%) more than the company’s distribution in 2014. Mr. Semple also said that MarkWest expects to continue increasing distributions by 7% to $3.97 in 2016, and 10% for the years of 2017 to 2020.

The dividend increases are likely attributable to MWE’s balance sheet and its ability to effectively manage debt. In EnerCom’s MLP Weekly for the period ended February 20, MWE’s debt to market cap percentage was 30% – well below the industry average of 52%. Its EBITDA margin percentage of 37% is also above the industry average of 23%.

MarkWest exceeded the expectations of analysts like Global Hunter Securities which said: “The midpoint of 2015 EBITDA and DCF guidance was better than our and Street expectations, and distribution guidance for 2016 onwards was better than expectations.”

Expanding with the Panola Pipeline

MWE also announced yesterday that a joint venture to expand the Panola Pipeline was finalized. MarkWest will have a 15% interest in the 60-mile expansion with Enterprise Products Partners (ticker: EPD, 55%), DCP Midstream Partners (ticker: DPM, 15%) and a subsidiary of Anadarko Petroleum (ticker: APC, 15%). “The expansion of the Panola Pipeline system will provide additional capacity for producers’ growing NGL production and enable us to continue growing our midstream presence in Panola County, Texas,” said Mr. Semple. The pipeline currently extends 181 miles across Midcontinent plays and supplies LNG to the Mont Belvieu hub.

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Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.