MarkWest Energy Partners Announces New Commercial Agreements to Provide Processing Services for Cimarex and Chevron in the Permian Basin

MarkWest Energy Partners, L.P. (MWE) (“MarkWest”) announced today the completion of long-term, fee-based agreements to support producer development in the Delaware Basin of West Texas. Under terms of the agreements, MarkWest will install a 200 million cubic feet per day cryogenic gas processing plant (Hidalgo Complex) in Culberson County, Texas. The new facility is scheduled to commence operations during the second quarter of 2016.

“We are very excited to announce this strategic commercial relationship with Cimarex and Chevron to support their development of the highly prospective Delaware Basin,” commented Frank Semple, Chairman, President, and Chief Executive Officer of MarkWest. “MarkWest has provided midstream services for Chevron in east Texas for more than a decade and we are privileged to have the opportunity to serve them, as well as our new customer and operator of the joint development, Cimarex Energy.”

MarkWest Energy Partners Closes Public Offering of $1.2 Billion of 4.875% Senior Notes Due 2025

MarkWest Energy Partners, L.P. (MWE) (the “Partnership”) and its subsidiary MarkWest Energy Finance Corporation (together with the Partnership, the “Issuers”) announced today the closing of a public offering of $1,200,000,000 in aggregate principal amount of 4.875% senior unsecured notes due 2025 (the “2025 Notes”).

The Partnership expects to receive net proceeds from the offering, after deducting underwriting discounts, commissions and offering expenses, of $1,175,068,000. The Partnership intends to use the net proceeds from the offering to fund the payments it will make upon the settlement of its pending tender offers (collectively, the “Tender Offers”) for any and all of the Issuers’ outstanding 6.75% senior unsecured notes due 2020, 6.5% senior unsecured notes due 2021 and 6.25% senior unsecured notes due 2022. Any amounts required to make the payments necessary at settlement of the Tender Offers that are not funded by the net proceeds from the offering will be funded partly by cash on hand, with the remainder to be funded through borrowings under the Partnership’s revolving credit facility.

Any remaining net proceeds from the offering will be used to redeem or otherwise acquire any 2020 Notes, 2021 Notes or 2022 Notes not acquired by the Partnership in the Tender Offers or to provide additional working capital for general partnership purposes.

Wells Fargo Securities, Barclays Capital Inc., Citigroup Global Markets Inc., Goldman, Sachs & Co., J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, SunTrust Robinson Humphrey, Inc., U.S. Bancorp Investments, Inc. and UBS Securities LLC are acting as joint book-running managers for the offering of the 2025 Notes. The offering is being made only by means of a prospectus supplement and accompanying base prospectus. A copy of the prospectus supplement and accompanying base prospectus may be obtained from the joint book-running managers as follows:

  • Wells Fargo Securities, LLC, 550 South Tryon Street, 7th Floor MAC D1086-070, Charlotte, NC 28202. By email at [email protected], or Toll-Free: (800) 326-5897;
  • Barclays, c/o Broadridge Financial Solutions, 1155 Long Island Ave., Edgewood, NY 11717. By email at [email protected], or Toll-Free: (888) 603-5847;
  • Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Ave., Edgewood, NY 11717. By email at [email protected], or Toll-Free: (800) 831-9146;
  • Goldman, Sachs & Co., Attention: Prospectus Department, 200 West Street, New York, NY 10282. By email at [email protected], or Toll-Free: (866) 471-2526;
  • J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Ave., Edgewood, NY 11717. By phone: (866) 803-9204;
  • BofA Merrill Lynch, Attention: Prospectus Department, 222 Broadway, New York, NY 10038. By email at [email protected];
  • Morgan Stanley, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014. By email at [email protected], or Toll-Free: (866) 718-1649;
  • RBC Capital Markets, LLC, Three World Financial Center, 200 Vesey Street, 10th Floor, New York, NY 10281. By email at [email protected], or Toll-Free: (877) 280-1299;
  • SunTrust Robinson Humphrey, Attention: High Yield Syndicate, 3333 Peachtree Road, 10th Floor, Atlanta, GA 30326. By phone: (404) 926-5052;
  • US Bancorp, Attention: High Yield Syndicate, 214 North Tryon Street, Charlotte, NC 28202. Toll-Free: (877) 558-2607; and
  • UBS Securities LLC, Attention: Prospectus Department, 1285 Avenue of the Americas, New York, NY 10019. By phone: (888) 827-7275.

An electronic copy of the prospectus supplement and the accompanying base prospectus related to the 2025 Notes is available from the Securities and Exchange Commission’s (the “SEC”) web site at The 2025 Notes are being offered pursuant to an effective shelf registration statement that the Partnership previously filed with the SEC. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the 2025 Notes in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such state.

MarkWest Energy Partners, L.P. is a master limited partnership that owns and operates midstream service businesses. MarkWest has a leading presence in many natural gas resource plays including the Marcellus Shale, Utica Shale, Huron/Berea Shale, Haynesville Shale, Woodford Shale and Granite Wash formation.

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 SEC. 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, 2014. 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.

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