Natural gas processor and distributor MarkWest Energy Partners L.P. MWE announced that it has entered into a long-term, fee-based agreement to provide processing services to producers – Cimarex Energy Co. XEC and Chevron Corporation CVX – in the Delaware Basin of West Texas.
Per the agreement, MarkWest Energy would set up a cryogenic gas processing plant in Culberson County, TX. The plant will have a capacity of 200 million cubic feet per day. The facility – Hidalgo Complex – is expected to start operations in the second quarter of next year.
MarkWest Energy added that it has had a long-standing relationship with Chevron, providing midstream services in east Texas. Cimarex Energy, on the other hand, is a new customer for the firm as an operator of the joint venture project in Delaware Basin.
In a separate development, MarkWest Energy announced the closure of its $1.2 billion senior note offering due 2025. The partnership expects net proceeds of $1,175,068,000 from the offering, after deducting underwriter discounts and other offer-related expenses.
Denver, CO-based MarkWest Energy Partners is engaged in the gathering, processing and transmission of natural gas as well as the transportation, fractionation and storage of natural gas liquids. The partnership is also engaged in the gathering and transportation of crude oil. MarkWest Energy Partners is one of the largest processors of natural gas in the Appalachian region and has a significant presence in the other prolific natural gas producing basins of the U.S as well.
Currently, MarkWest Energy carries a Zacks Rank #3 (Hold).
A better-ranked player from the oil and gas production/pipeline MLP space, Buckeye Partners, L.P. BPL, holds a Zacks Rank #2 (Buy).
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