( BW)(CO-MARKWEST-HYDROCARBON)(MWP) MarkWest Hydrocarbon Reports Third
Quarter 2007 Financial Results
Business Editors
DENVER--(BUSINESS WIRE)--Nov. 6, 2007--MarkWest Hydrocarbon, Inc.
(AMEX: MWP) (the "Company") today reported a net loss of $7.5 million
for the three months ended September 30, 2007, or $0.62 per share,
compared to net income of $10.0 million, or $0.83 per diluted share,
for the same period in 2006. For the nine months ended September 30,
2007, the Company reported a net loss of $13.8 million compared to net
income of $10.7 million for the nine months ended September 30, 2006.
Income (loss) from operations for the Standalone segment, as
defined below, for the three months ended September 30, 2007 and
September 30, 2006, was $(25.5) million and $11.8 million,
respectively, and included $24.2 million and $(9.0) million,
respectively, of non-cash costs (benefits) associated with the
mark-to-market of derivative instruments, the revaluation of the
long-term shrink obligation, and non-cash compensation expense. A
portion of the mark-to-market of derivative instruments is included in
Purchased Product Costs. Excluding these non-cash items, income (loss)
from operations for the three months ended September 30, 2007 and
September 30, 2006, would have been $(1.3) million and $2.8 million,
respectively. Historically, the second and third quarters of each year
generate lower income from operations compared to the first and fourth
quarters due to the normal seasonality of the Company's business.
While the Company purchases and processes consistent volumes of gas
throughout the year, it generates higher revenues in the winter months
when it sells higher volumes of NGLs than in the summer months.
The Company will receive $9.5 million of distributions from its
investment in MarkWest Energy Partners (the "Partnership") for the
third quarter of 2007, which represents a 46 percent increase over the
$6.5 million of distributions received for the third quarter of 2006.
On October 26, 2007, the Company declared a quarterly cash dividend of
$0.36 per share of common stock, for an implied annual rate of $1.44
per share, which is payable November 21, 2007, to shareholders of
record as of November 9, 2007. This represents no change from the
second quarter of 2007. Pursuant to a covenant contained in the
redemption and merger agreement with the Partnership announced on
September 5, 2007, the Company is prohibited from declaring any
dividend greater than the per share dividend for the second quarter of
2007.
"It's been another exciting and productive quarter for MarkWest
Hydrocarbon," said Frank Semple, President and Chief Executive
Officer. "Our third quarter financial results reflect continued net
income contribution from our equity ownership of the Partnership. This
strong income stream was offset by non-cash adjustments for
compensation expense and the mark-to-market of our derivative
instruments in the Standalone segment. The sales of natural gas
liquids in the second and third quarters by the Company are typically
lower than in the first and fourth quarter due to lower seasonal
demand. The year-to-date operating income and full year forecast for
the NGL marketing business remains strong and we continue to take
advantage of the forward markets to lock in favorable long-term frac
spread margins.
"The third quarter was particularly noteworthy because of the
announcement of the merger agreement between MarkWest Hydrocarbon and
the Partnership. The transaction, if consummated, will streamline our
corporate structure, significantly improve our competitive position,
and align the interests of MarkWest with one set of equity holders.
Our people, assets, and focus on customer service have been the key to
our success, and the positive attributes of the planned merger will
further enhance the long-term value for our equity stakeholders."
THIRD QUARTER 2007 HIGHLIGHTS
On September 5, 2007, the board of directors of the Company and
the board of directors of the general partner of the Partnership
announced that the Company and the Partnership entered into a
definitive redemption and merger agreement. The transaction represents
a 22 percent premium to the Company's share price on the date the
transaction was announced, and will allow the Company's shareholders
to elect as consideration for their shares either cash, units in the
Partnership, or a combination of both. Additionally, the transaction
will result in a substantial increase in the effective dividend rate
for shareholders electing to receive units in the Partnership. A
principal benefit of the transaction is the elimination of the
existing incentive distribution rights ("IDRs"). Elimination of the
IDRs reduces the Partnership's cost of equity capital and strengthens
its competitive position. In addition, the transaction will simplify
the corporate structure of the Company and the Partnership, simplify
corporate governance, and allow management to focus on driving value
for one set of public equity owners. The transaction is expected to be
accretive in 2008 to the Partnership unitholders as measured by
distributable cash flow per common unit, and is anticipated to close
in early 2008.
The Company reports its operations under two business segments,
MarkWest Hydrocarbon Standalone ("Standalone") and the Partnership.
The Standalone business segment consists of the Company's natural gas
liquid ("NGL") marketing activities for NGLs extracted primarily at
the Partnership's Siloam facility and the management of keep-whole
contracts in Appalachia.
For the three months ended September 30, 2007, the Standalone
segment reported a loss from operations of $25.5 million, compared to
income from operations of $11.8 million for the same period in 2006.
The variance was primarily attributable to:
-- The Standalone segment reported a net unrealized loss of $24.2
million for the mark-to-market of derivative instruments and
the revaluation of the long-term shrink obligation, both of
which are non-cash items. This compares to a net unrealized
gain of $12.0 million for the same items in the third quarter
of 2006, resulting in a negative quarter over quarter variance
of $36.2 million.
-- The realized frac spread, when adjusted for settled derivative
losses, was $0.28 per gallon in the third quarter of 2007
compared to $0.49 per gallon in the same period in 2006,
resulting in a negative impact on segment income of $5.1
million. Included within the derivate losses that settled in
the third quarter of 2007 is $2.3 million, or $0.11 per
gallon, attributable to natural gas swaps related to
production in the fourth quarter of 2007 and the first quarter
of 2008. The frac spread excluding settled derivative losses
was $0.56 per gallon in the third quarter of 2007 compared to
$0.50 per gallon in the same period in 2006.
-- The above items were offset, in part, by a $4.2 million
decrease in selling, general and administrative expense
compared to the prior year quarter, of which $3.0 million is
attributable to lower non-cash compensation expense.
The Company will host a conference call and webcast on Wednesday,
November 7, 2007, at 5:00 P.M. ET to review its third quarter 2007
financial results. Interested parties can participate in the call by
dialing 800-369-2007, passcode "MarkWest," approximately ten minutes
prior to the scheduled start time. A replay of the call will be
available through Wednesday, November 21, 2007, by dialing
866-463-4179, no passcode required. To access the webcast, please
visit the Investor Relations section of our website at
www.markwest.com.
MarkWest Hydrocarbon, Inc. (AMEX: MWP) controls and operates
MarkWest Energy Partners, L.P. (NYSE: MWE), a publicly traded limited
partnership engaged in the gathering, processing and transmission of
natural gas; the transportation, fractionation and storage of natural
gas liquids; and the gathering and transportation of crude oil. We
also market natural gas and NGLs.
This press release includes "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
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 we believe that the expectations reflected in
the forward-looking statements are reasonable, we can give no
assurance that such expectations will prove to be correct. The
forward-looking statements involve risks and uncertainties that affect
our operations, financial performance and other factors as discussed
in our filings with the Securities and Exchange Commission. Among the
factors that could cause results to differ materially are those risks
discussed in our Form 10-K/A for the year ended December 31, 2006, as
filed with the SEC. 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." We do not
undertake any duty to update any forward-looking statement.
Although we believe that the expectations reflected in the
forward-looking statements, specifically those including those
referring to future performance, growth, cash flow, operating income,
dividends, or other factors, are reasonable, these forward-looking
statements are not guarantees of future performance and we can give no
assurance that such expectations will prove to be correct and that
projected performance or distributions may not be achieved. Among the
factors that could cause results to differ materially are those risks
discussed in our Form S-1, as amended, our Annual Report on Form
10-K/A for the year ended December 31, 2006, and our Quarterly Reports
on Form 10-Q, as amended, each as filed with the SEC. You are also
urged to carefully review and consider the cautionary statements and
other disclosures, including those under the heading "Risk Factors,"
made in those filings, which identify and discuss significant risks,
uncertainties and various other factors that could cause actual
results to vary significantly from those expressed or implied in the
forward-looking statements. We do not undertake any duty to update any
forward-looking statement.
MarkWest Energy Partners and MarkWest Hydrocarbon will file a
joint proxy statement/prospectus and other documents with the
Securities and Exchange Commission (the "SEC") in relation to the
merger transaction announced on September 5, 2007. Investors and
security holders are urged to read these documents carefully when they
become available because they will contain important information
regarding MarkWest Energy Partners, MarkWest Hydrocarbon, and the
transaction. A definitive joint proxy statement/prospectus will be
sent to security holders of MarkWest Energy Partners and MarkWest
Hydrocarbon seeking their approval of the transactions contemplated by
the redemption and merger agreement. Investors and security holders
may obtain a free copy of the joint proxy statement/prospectus (when
it is available) and other documents containing information about
MarkWest Energy Partners and MarkWest Hydrocarbon, without charge, at
the SEC's website at www.sec.gov. Copies of the joint proxy
statement/prospectus and the SEC filings that will be incorporated by
reference in the joint proxy statement/prospectus may also be obtained
free of charge by directing a request to the entities' investor
relations department at 866-858-0482, or by accessing their website at
www.markwest.com.
MarkWest Energy Partners, MarkWest Hydrocarbon, the officers and
directors of the general partner of MarkWest Energy Partners, and the
officers and directors of MarkWest Hydrocarbon may be deemed to be
participants in the solicitation of proxies from their security
holders. Information about these persons can be found in the Annual
Report on Form 10-K/A for the year ended December 31, 2006, for each
of MarkWest Energy Partners and MarkWest Hydrocarbon, as filed with
the SEC, and additional information about such persons may be obtained
from the joint proxy statement/prospectus when it becomes available.
This document shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be any
sale of securities in any jurisdiction in which such offer,
solicitation, or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction. No
offering of securities shall be made except by means of a prospectus
meeting the requirements of the Securities Act of 1933, as amended.
MarkWest Hydrocarbon, Inc.
Statement of Operations
(Unaudited, in thousands, except per share amounts)
Three months ended Nine months ended
September 30, September 30,
------------------- -------------------
2007 2006 2007 2006
--------- --------- --------- ---------
(as (as
restated) restated)
Revenue:
Revenue $199,934 $197,416 $590,342 $648,517
Derivative (loss) gain (24,386) 22,721 (52,208) 8,405
---------------------------------------
Total revenue 175,548 220,137 538,134 656,922
--------- --------- --------- ---------
Operating expenses:
Purchased product costs 122,059 121,936 373,891 443,718
Facility expenses 18,624 14,840 49,101 42,635
Selling, general and
administrative expenses 11,393 19,069 50,928 43,506
Depreciation 11,133 8,126 28,632 23,282
Amortization of intangible
assets 4,168 4,029 12,504 12,072
Accretion of asset
retirement obligations 30 24 85 75
Impairments 356 - 356 -
--------- --------- --------- ---------
Total operating
expenses 167,763 168,024 515,497 565,288
--------- --------- --------- ---------
Income from operations 7,785 52,113 22,637 91,634
Other income (expense):
Earnings from
unconsolidated affiliates 1,264 1,067 4,687 3,240
Interest income 403 264 3,923 1,106
Interest expense (10,202) (9,583) (28,670) (31,425)
Amortization of deferred
financing costs and
original issue discount
(a component of interest
expense) (771) (6,121) (2,222) (7,805)
Dividend income 170 112 509 327
Miscellaneous income
(expense) 1,149 3,978 (257) 7,737
--------- --------- --------- ---------
(Loss) income before
non-controlling
interest in net income
of consolidated
subsidiary and income
taxes (202) 41,830 607 64,814
Non-controlling interest
in net income of
consolidated subsidiary (15,131) (26,438) (24,653) (48,255)
--------- --------- --------- ---------
(Loss) income before
taxes (15,333) 15,392 (24,046) 16,559
Provision for income tax
benefit (expense) 7,879 (5,388) 10,277 (5,855)
--------- --------- --------- ---------
Net (loss) income $(7,454) $10,004 $(13,769) $10,704
========= ========= ========= ========
Net (loss) income per share:
Basic $(0.62) $0.84 $(1.15) $0.90
========= ========= ========= ========
Diluted $(0.62) $0.83 $(1.15) $0.89
========= ========= ========= ========
Weighted average number of
outstanding shares of
common stock:
Basic 12,001 11,956 11,995 11,933
========= ========= ========= ========
Diluted 12,001 12,015 11,995 12,021
========= ========= ========= ========
MarkWest Hydrocarbon, Inc.
Segment Income (Loss)
(Unaudited, in thousands)
MarkWest MarkWest
Hydrocarbon Energy Consolidating
Standalone Partners Entries Total
------------ ---------- ------------- ----------
Three months ended
September 30, 2007:
Revenue:
Revenue $45,745 $174,918 $(20,729) $199,934
Derivative loss (16,531) (7,855) - (24,386)
------------ ---------- ------------- ----------
Total revenue 29,214 167,063 (20,729) 175,548
Purchased product
costs 47,443 89,474 (14,858) 122,059
Facility expenses 5,199 19,346 (5,921) 18,624
Selling, general
and administrative
expenses 1,828 9,565 - 11,393
Depreciation 240 10,893 - 11,133
Amortization of
intangible assets - 4,168 - 4,168
Accretion of asset
retirement and
lease obligations - 30 - 30
Impairment - 356 356
------------ ---------- ------------- ----------
(Loss) income
from operations (25,496) 33,231 50 7,785
Other income
(expense):
Earnings from
unconsolidated
affiliates - 1,264 - 1,264
Interest income 253 150 - 403
Interest expense (130) (10,072) - (10,202)
Amortization of
deferred financing
costs (a component
of interest
expense) (69) (702) - (771)
Dividend income 169 1 - 170
Miscellaneous
income 619 593 (63) 1,149
------------ ---------- ------------- ----------
(Loss) income
before non-
controlling
interest in net
income of
consolidated
subsidiary and
income taxes (24,654) 24,465 (13) (202)
Non-controlling
interest in net
income of
consolidated
subsidiary - - (15,131) (15,131)
Interest in net
income of
consolidated
subsidiary 9,303 - (9,303) -
------------ ---------- ------------- ----------
(Loss) income
before taxes (15,351) 24,465 (24,447) (15,333)
Provision for
income tax benefit
(expense) 7,909 (304) 274 7,879
------------ ---------- ------------- ----------
Net (loss) income $(7,442) $24,161 $(24,173) $(7,454)
============ ========== ============= =========
MarkWest MarkWest
Hydrocarbon Energy Consolidating
Standalone Partners Entries Total
------------ ---------- ------------- ----------
Three months ended (as (as
September 30, 2006: restated) restated)
Revenue:
Revenue $53,222 $163,888 $(19,694) $197,416
Derivative gain 10,051 12,670 - 22,721
------------ ---------- ------------- ----------
Total revenue 63,273 176,558 (19,694) 220,137
Purchased product
costs 40,149 95,533 (13,746) 121,936
Facility expenses 5,099 15,689 (5,948) 14,840
Selling, general
and administrative
expenses 5,991 13,078 - 19,069
Depreciation 221 7,905 - 8,126
Amortization of
intangible assets - 4,029 - 4,029
Accretion of asset
retirement and
lease obligations - 24 - 24
------------ ---------- ------------- ----------
Income from
operations 11,813 40,300 - 52,113
Other income
(expense):
Earnings from
unconsolidated
affiliates - 1,067 - 1,067
Interest income 34 230 - 264
Interest expense (60) (9,523) - (9,583)
Amortization of
deferred financing
costs (a component
of interest
expense) (55) (6,066) - (6,121)
Dividend income 112 - - 112
Miscellaneous
income 8 3,970 - 3,978
------------ ---------- ------------- ----------
Income before
non-controlling
interest in net
income of
consolidated
subsidiary and
income taxes 11,852 29,978 - 41,830
Non-controlling
interest in net
income of
consolidated
subsidiary - - (26,438) (26,438)
Interest in net
income of
consolidated
subsidiary 3,540 - (3,540) -
------------ ---------- ------------- ----------
(Loss) income
before taxes 15,392 29,978 (29,978) 15,392
Provision for
income tax expense (5,388) - - (5,388)
------------ ---------- ------------- ----------
Net income $10,004 $29,978 $(29,978) $10,004
============ ========== ============= =========
MarkWest Hydrocarbon, Inc.
Segment Income (Loss)
(Unaudited, in thousands)
MarkWest MarkWest
Hydrocarbon Energy Consolidating
Standalone Partners Entries Total
------------ ---------- ------------- ----------
Nine months ended
September 30, 2007:
Revenue:
Revenue $170,830 $478,608 $(59,096) $590,342
Derivative loss (30,061) (22,147) - (52,208)
------------ ---------- ------------- ----------
Total revenue 140,769 456,461 (59,096) 538,134
Purchased product
costs 148,963 265,810 (40,882) 373,891
Facility expenses 14,974 52,605 (18,478) 49,101
Selling, general
and administrative
expenses 15,046 35,882 - 50,928
Depreciation 826 27,806 - 28,632
Amortization of
intangible assets - 12,504 - 12,504
Accretion of asset
retirement and
lease obligations - 85 - 85
Impairment - 356 - 356
------------ ---------- ------------- ----------
(Loss) income
from operations (39,040) 61,413 264 22,637
Other income
(expense):
Earnings from
unconsolidated
affiliates - 4,687 - 4,687
Interest income 1,374 2,549 - 3,923
Interest expense (252) (28,418) - (28,670)
Amortization of
deferred financing
costs (a component
of interest
expense) (198) (2,024) - (2,222)
Dividend income 427 82 - 509
Miscellaneous
income (expense) 474 (668) (63) (257)
------------ ---------- ------------- ----------
(Loss) income
before non-
controlling
interest in net
income of
consolidated
subsidiary and
income taxes (37,215) 37,621 201 607
Non-controlling
interest in net
income of
consolidated
subsidiary - - (24,653) (24,653)
Interest in net
income of
consolidated
subsidiary 12,915 - (12,915) -
------------ ---------- ------------- ----------
(Loss) income
before taxes (24,300) 37,621 (37,367) (24,046)
Provision for
income tax benefit
(expense) 10,329 (429) 377 10,277
------------ ---------- ------------- ----------
Net (loss) income $(13,971) $37,192 $(36,990) $(13,769)
============ ========== ============= =========
MarkWest MarkWest
Hydrocarbon Energy Consolidating
Standalone Partners Entries Total
------------ ---------- ------------- ----------
Nine months ended (as (as
September 30, 2006: restated) restated)
Revenue:
Revenue $217,504 $486,301 $(55,288) $648,517
Derivative gain 2,396 6,009 - 8,405
------------ ---------- ------------- ----------
Total revenue 219,900 492,310 (55,288) 656,922
Purchased product
costs 184,677 296,368 (37,327) 443,718
Facility expenses 15,678 44,918 (17,961) 42,635
Selling, general
and administrative
expenses 13,102 30,404 - 43,506
Depreciation 820 22,462 - 23,282
Amortization of
intangible assets - 12,072 - 12,072
Accretion of asset
retirement and
lease obligations - 75 - 75
------------ ---------- ------------- ----------
Income from
operations 5,623 86,011 - 91,634
Other income
(expense):
Earnings from
unconsolidated
affiliates - 3,240 - 3,240
Interest income 397 709 - 1,106
Interest expense (212) (31,213) - (31,425)
Amortization of
deferred financing
costs (a component
of interest
expense) (105) (7,700) - (7,805)
Dividend income 327 - - 327
Miscellaneous
income 160 7,577 - 7,737
------------ ---------- ------------- ----------
Income before
non-controlling
interest in net
income of
consolidated
subsidiary and
income taxes 6,190 58,624 - 64,814
Non-controlling
interest in net
income of
consolidated
subsidiary - - (48,255) (48,255)
Interest in net
income of
consolidated
subsidiary 10,233 - (10,233) -
------------ ---------- ------------- ----------
Income (loss)
before taxes 16,423 58,624 (58,488) 16,559
Provision for
income tax
(expense) benefit (5,719) (679) 543 (5,855)
------------ ---------- ------------- ----------
Net income $10,704 $57,945 $(57,945) $10,704
============ ========== ============= =========
MarkWest Hydrocarbon, Inc.
Segment Balance Sheet
(Unaudited, in thousands)
September 30, 2007 MarkWest MarkWest
Hydrocarbon Energy Consolidating
Standalone Partners Entries Total
--------------------- ------------ ---------- ------------- ----------
ASSETS
Current assets:
Cash and cash
equivalents $2,751 $53,683 $- $56,434
Trading securities 3,701 - - 3,701
Available for sale
securities 6,778 - - 6,778
Receivables 15,917 112,453 (9,620) 118,750
Inventories 37,959 3,015 - 40,974
Fair value of
derivative
instruments 6,160 1,249 - 7,409
Other current
assets 19,006 8,198 - 27,204
------------ ---------- ------------- ----------
Total current
assets 92,272 178,598 (9,620) 261,250
------------ ---------- ------------- ----------
Property, plant and
equipment, net 5,508 758,913 - 764,421
Investment in and
advances to other
equity investee - 59,582 - 59,582
Investment in
consolidated
subsidiaries 88,077 - (88,077) -
Fair value of
derivative
instruments 2,812 - - 2,812
Deferred tax asset - - - -
Other long term
assets 2,620 345,773 - 348,393
------------ ---------- ------------- ----------
Total assets $191,289 $1,342,866 $(97,697) $1,436,458
============ ========== ============= =========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
and accrued
liabilities $22,979 $166,395 $(9,822) $179,552
Fair value of
derivative
instruments 33,678 8,326 - 42,004
Deferred tax
liability 73 - - 73
------------ ---------- ------------- ----------
Total current
liabilities 56,730 174,721 (9,822) 221,629
------------ ---------- ------------- ----------
Long-term debt - 589,612 - 589,612
Deferred tax
liability 5,651 914 (776) 5,789
Non-controlling
interest in
consolidated
subsidiary 964 - 477,119 478,083
Fair value of
derivative
instruments 20,939 11,183 - 32,122
Other long-term
liabilities 42,385 2,016 - 44,401
------------ ---------- ------------- ----------
Total liabilities 126,669 778,446 466,521 1,371,636
------------ ---------- ------------- ----------
Total stockholders'
equity 64,620 564,420 (564,218) 64,822
------------ ---------- ------------- ----------
Total liabilities
and
stockholders'
equity $191,289 $1,342,866 $(97,697) $1,436,458
============ ========== ============= =========
MarkWest Hydrocarbon, Inc.
Segment Balance Sheet
(Unaudited, in thousands)
December 31, 2006 MarkWest MarkWest
Hydrocarbon Energy Consolidating
Standalone Partners Entries Total
--------------------- ------------ ---------- ------------- ----------
ASSETS
Current assets:
Cash and cash
equivalents $14,442 $34,402 $- $48,844
Marketable
securities 7,713 - - 7,713
Receivables 16,940 90,780 (6,604) 101,116
Inventories 31,668 3,593 - 35,261
Fair value of
derivative
instruments 5,727 4,211 - 9,938
Other current
assets 12,217 3,047 - 15,264
------------ ---------- ------------- ----------
Total current
assets 88,707 136,033 (6,604) 218,136
------------ ---------- ------------- ----------
Property, plant and
equipment, net 3,449 550,886 - 554,335
Investment in and
advances to other
equity investee - 64,240 - 64,240
Investment in
consolidated
subsidiaries 12,683 - (12,683) -
Fair value of
derivative
instruments 35 2,759 - 2,794
Other long term
assets 2,874 360,862 - 363,736
------------ ---------- ------------- ----------
Total assets $107,748 $1,114,780 $(19,287) $1,203,241
============ ========== ============= =========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
and accrued
liabilities $19,370 $131,684 $(6,604) $144,450
Fair value of
derivative
instruments 7,385 91 - 7,476
Deferred tax
liability 180 - - 180
Current portion of
long term debt - - - -
------------ ---------- ------------- ----------
Total current
liabilities 26,935 131,775 (6,604) 152,106
------------ ---------- ------------- ----------
Long-term debt - 526,865 - 526,865
Deferred tax
liability and FIN
48 liability 9,425 769 (641) 9,553
Non-controlling
interest in
consolidated
subsidiary 965 - 440,607 441,572
Fair value of
derivative
instruments 98 1,362 - 1,460
Other long-term
liabilities 28,836 1,360 - 30,196
------------ ---------- ------------- ----------
Total liabilities 66,259 662,131 433,362 1,161,752
------------ ---------- ------------- ----------
Total stockholders'
equity 41,489 452,649 (452,649) 41,489
------------ ---------- ------------- ----------
Total liabilities
and
stockholders'
equity $107,748 $1,114,780 $(19,287) $1,203,241
============ ========== ============= =========
MarkWest Hydrocarbon, Inc.
Operating Statistics
Three months ended Nine months ended
September 30, September 30,
----------------------- -----------------------
2007 2006 2007 2006
----------- ----------- ----------- -----------
MarkWest Hydrocarbon
Standalone:
Marketing
Hydrocarbon frac
spread sales
(gallons) 20,620,000 22,103,000 89,301,000 80,615,000
Maytown sales
(gallons) 11,172,000 11,275,000 33,219,000 32,226,000
----------- ----------- ----------- -----------
Total NGL product
sales
(gallons)(1) 31,792,000 33,378,000 122,520,000 112,841,000
Wholesale
NGL product sales
(gallons)(2) N/A 7,867,000 N/A 35,063,000
MarkWest Energy
Partners:
East Texas:
Gathering systems
throughput
(Mcf/d) 421,000 393,000 410,000 371,000
NGL product sales
(gallons) 46,262,000 42,015,000 132,536,000 117,912,000
Oklahoma:
Foss Lake
gathering system
throughput
(Mcf/d) 108,000 86,000 102,000 86,000
Woodford gathering
system throughput
(Mcf/d) (3) 130,000 N/A 95,000 N/A
Grimes gathering
system throughput
(Mcf/d) (4) 11,000 N/A 12,000 N/A
Arapaho NGL
product sales
(gallons) 22,409,000 19,553,000 65,166,000 57,586,000
Other Southwest:
Appleby gathering
system throughput
(Mcf/d) 58,000 34,000 55,000 34,000
Other gathering
systems
throughput
(Mcf/d) 6,000 18,000 11,000 20,000
Lateral throughput
volumes (Mcf/d) 101,000 111,000 73,000 84,000
Appalachia:
Natural gas
processed (Mcf/d) 194,000 198,000 197,000 200,000
NGLs fractionated
(Gal/d) 423,000 453,000 444,000 451,000
NGL product sales
(gallons) 11,172,000 11,275,000 33,219,000 32,226,000
Michigan:
Natural gas
throughput
(Mcf/d) 4,900 7,300 5,700 6,500
NGL product sales
(gallons) 963,000 1,501,000 3,153,000 4,344,000
Crude oil
transported
(Bbl/d) 13,800 14,600 14,100 14,600
Gulf Coast:
Refinery off-gas
processed (Mcf/d) 124,500 125,000 119,000 125,000
Liquids
fractionated
(Bbl/d) 30,700 26,100 26,600 26,000
(1) Represents sales at the Siloam fractionator.
(2) Represents sales from our wholesale business. In December 2006 the
Company terminated its wholesale agreement.
(3) The Partnership began construction and operation of the Woodford
gathering system in late 2006.
(4) The Partnership acquired the Grimes gathering system in December
2006.
--30--
CONTACT: MarkWest Hydrocarbon, Inc.
Frank Semple, 866-858-0482
President and CEO
or
Nancy Buese, 866-858-0482
Senior VP and CFO
or
Andy Schroeder, 866-858-0482
VP Finance & Treasurer
Fax: 303-925-9308
investorrelations@markwest.com
www.markwest.com
.
![]()