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EMG Increases Investment in MarkWest Joint Venture
DENVER – The Energy & Minerals Group plans to increase its initial investment in a joint venture the company has established with MarkWest Energy Partners L.P. for midstream development in eastern Ohio's Utica shale.
The companies announced that EMG would infuse another $450 million into MarkWest Utica EMG LLC, the joint venture created in 2011 that is intended to develop oil and gas infrastructure across the Utica.
The new investment brings EMG's contribution to $950 million. The transaction does not affect ownership interest levels.
MarkWest and EMG also executed an amendment to its original agreement that calls for MarkWest to contribute $150 million in the short-term to the Utica joint venture.
MarkWest is in the process of constructing a fully integrated midstream system in southeastern Ohio – including a $500 million processing operation in Harrison County -- to serve the expanding presence of producers in that part of the Utica.
Gulfport Energy Corp., one of the joint venture's customers, has struck some of the most productive gas wells in the shale play. The EMG/MarWest venture has also secured contracts with Antero Resources and Rex Energy.
"We are pleased to announce the continued development of our Utica shale system and the expansion of our partnership with EMG," said Frank Semple, chairman, president and CEO of MarkWest. "The acceleration of our midstream development is a direct result of the ongoing success of our producer customers' drilling programs."
John Raymond, managing partner and CEO of EMG, stated that the new investment helps to "leverage our relationship with MarkWest to help meet their liquidity needs with a large-scale flexible solution that contemporaneously meets the needs of the producer community."
Published by The Business Journal, Youngstown, Ohio.
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