MarkWest to provide processing services for Chevron and Cimarex in Permian Basin

MarkWest Energy Partners LP (NYSE: MWE) has completed long-term, fee-based agreements with Chevron and Cimarex Energy to support producer development in the Delaware Basin of West Texas. Under terms of the agreements, MarkWest will install a cryogenic gas processing plant (Hidalgo Complex) in Culberson County, Texas. The new facility is scheduled to begin operations during the second quarter of 2016.

Frank Semple, chairman, president, and CEO of MarkWest, commented, “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.”

In additional company news, MarkWest and its subsidiary MarkWest Energy Finance Corp. have closed a public offering of $1,200,000,000 in aggregate principal amount of 4.875% senior unsecured notes due 2025.

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 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.

Wells Fargo Securities, Barclays Capital Inc., Citigroup Global Markets Inc., Goldman, Sachs & Co., JP Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets LLC, SunTrust Robinson Humphrey Inc., US Bancorp Investments Inc., and UBS Securities LLC are acting as joint book-running managers for the offering of the 2025 notes.

 

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