science, technology, and research symposium

24
SCIENCE, TECHNOLOGY, AND RESEARCH SYMPOSIUM OCTOBER 22, 2013

Upload: dominy

Post on 25-Feb-2016

27 views

Category:

Documents


2 download

DESCRIPTION

Science, Technology, And Research SYMPOSIUM. October 22, 2013 . Forward-Looking Statements. - PowerPoint PPT Presentation

TRANSCRIPT

Page 1: Science, Technology, And Research SYMPOSIUM

SCIENCE, TECHNOLOGY, AND RESEARCH SYMPOSIUM

OCTOBER 22, 2013

Page 2: Science, Technology, And Research SYMPOSIUM

2

Forward-Looking Statements

This presentation contains forward-looking statements and information. These forward-looking statements, which in many instances can be identified by words like “could,” “may,” “will,” “should,” “expects,” “plans,” “project,” “anticipates,” “believes,” “planned,” “proposed,” “potential,” and other comparable words, regarding future or contemplated results, performance, transactions, or events, are based on MarkWest Energy Partners, L.P. (“MarkWest” and the “Partnership”) current information, expectations and beliefs, concerning future developments and their potential effects on MarkWest. Although MarkWest believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct, and actual results, performance, distributions, events or transactions could vary significantly from those expressed or implied in such statements and are subject to a number of uncertainties and risks.

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, 2012 and its Quarterly Report on Form 10-Q for the quarter ended June 30, 2013. You are urged to carefully review and consider the cautionary statements and other disclosures, including those under the heading “Risk Factors,” made in those documents. If any of the uncertainties or risks develop into actual events or occurrences, or if underlying assumptions prove incorrect, it could cause actual results to vary significantly from those expressed in the presentation, and MarkWest’s business, financial condition, or results of operations could be materially adversely affected. Key uncertainties and risks that may directly affect MarkWest’s performance, future growth, results of operations, and financial condition, include, but are not limited to:

— Fluctuations and volatility of natural gas, NGL products, and oil prices;— A reduction in natural gas or refinery off-gas production which MarkWest gathers, transports, processes, and/or fractionates;— A reduction in the demand for the products MarkWest produces and sells; — Financial credit risks / failure of customers to satisfy payment or other obligations under MarkWest’s contracts; — Effects of MarkWest’s debt and other financial obligations, access to capital, or its future financial or operational flexibility or liquidity;— Construction, procurement, and regulatory risks in our development projects;— Hurricanes, fires, and other natural and accidental events impacting MarkWest’s operations, and adequate insurance coverage;— Terrorist attacks directed at MarkWest facilities or related facilities;— Changes in and impacts of laws and regulations affecting MarkWest operations and risk management strategy; and— Failure to integrate recent or future acquisitions.

Page 3: Science, Technology, And Research SYMPOSIUM

3

Non-GAAP Measures

Distributable Cash Flow, Adjusted EBITDA, and Net Operating Margin are not measures of performance calculated in accordance with GAAP, and should not be considered separately from or as a substitute for net income, income from operations, or cash flow as reflected in our financial statements. The GAAP measure most directly comparable to Distributable Cash Flow and Adjusted EBITDA is net income (loss). The GAAP measure most directly comparable to Net Operating Margin is income (loss) from operations.

In general, we define DCF as net income (loss) adjusted for (i) depreciation, amortization, impairment, and other non-cash expense; (ii) amortization of deferred financing costs and discount; (iii) loss on redemption of debt net of current tax benefit; (iv) non-cash (earnings) loss from unconsolidated affiliates; (v) distributions from (contributions to) unconsolidated affiliates (net of affiliate growth capital expenditures); (vi) non-cash compensation expense; (vii) non-cash derivative activity; (viii) losses (gains) on the disposal of property, plant, and equipment (PP&E) and unconsolidated affiliates; (ix) provision for deferred income taxes; (x) cash adjustments for non-controlling interest in consolidated subsidiaries; (xi) revenue deferral adjustment; (xii) losses (gains) relating to other miscellaneous non-cash amounts affecting net income for the period; and (xiii) maintenance capital expenditures, net of joint venture partner contributions. We define Adjusted EBITDA as net income (loss) adjusted for (i) depreciation, amortization, impairment, and other non-cash expense; (ii) interest expense; (iii) amortization of deferred financing costs; (iv) loss on redemption of debt; (v) losses (gains) on the disposal of PP&E and unconsolidated affiliates; (vi) non-cash derivative activity; (vii) non-cash compensation expense; (viii) provision for income taxes; (ix) adjustments for cash flow from unconsolidated affiliates; (x) adjustment related to non-guarantor, consolidated subsidiaries; and (xi) losses (gains) relating to other miscellaneous non-cash amounts affecting net income for the period. We generally define Operating Income before Items Not Allocated to Segments as (i) revenue, excluding derivative gains and losses and adjusted for certain revenue deferral adjustments less; (ii) purchased product costs, excluding derivative gains and losses less; (iii) facility expenses, adjusted for certain non-cash items not allocated to segments and certain interest payments allocable to the segments less; ( iv) the portion allocable to non-controlling interests.

Distributable Cash Flow is a financial performance measure used by management as a key component in the determination of cash distributions paid to unitholders. We believe distributable cash flow is an important financial measure for unitholders as an indicator of cash return on investment and to evaluate whether the Partnership is generating sufficient cash flow to support quarterly distributions. In addition, distributable cash flow is commonly used by the investment community because the market value of publicly traded partnerships is based, in part, on distributable cash flow and cash distributions paid to unitholders.

Adjusted EBITDA is a financial performance measure used by management, industry analysts, investors, lenders, and rating agencies to assess the financial performance and operating results of the Partnership’s ongoing business operations. Additionally, we believe Adjusted EBITDA provides useful information to investors for trending, analyzing, and benchmarking our operating results from period to period as compared to other companies that may have different financing and capital structures.

Net Operating Margin is a financial performance measure used by management and investors to evaluate the underlying baseline operating performance of our contractual arrangements. Management also uses Net Operating Margin to evaluate the Partnership’s financial performance for purposes of planning and forecasting.

Please see the Appendix for reconciliations of Distributable Cash Flow, Adjusted EBITDA, and Net Operating Margin to the most directly comparable GAAP measure.

Page 4: Science, Technology, And Research SYMPOSIUM

MARKWEST OVERVIEW

Page 5: Science, Technology, And Research SYMPOSIUM

5

Key Investment Considerations

High-Quality, Diversified Assets

Proven Growth and Customer Satisfaction

Substantial Growth Opportunities

Strong Financial Profile

• Leading presence in major shale plays including Marcellus, Utica, Huron/Berea, Woodford , Haynesville and Granite Wash formation

• Largest processor in the Marcellus Shale

• Largest fractionator in the Northeast

• Over $8 billion of organic growth and acquisitions since IPO

• Over $5 billion invested in Marcellus and Utica since 2008

• Received top ranking in EnergyPoint’s 2013 Midstream Customer Satisfaction survey

• 2013 growth capital forecast of $1.5 to $1.8 billion

• 23 major processing and fractionation projects under construction

• Long-term agreements with over 25 major producer customers

• Established relationships & joint venture partners

• No incentive distribution rights, which drives a lower cost of capital

• Distributions have increased by 236% (12% CAGR) since IPO

• Growing fee-based margin to over 70% for full-year 2014

Quarterly DistributionGrowth of 236%

Since IPO

1Q02

4Q03

3Q05

2Q07

1Q09

4Q10

3Q12

$-

$0.20

$0.40

$0.60

$0.80

Page 7: Science, Technology, And Research SYMPOSIUM

7

MarkWest Assets: Expansion and Diversification

LibertyLargest processor and fractionator in the Marcellus Shale with over 1.6 Bcf/d of processing capacity and 98,000 Bbl/d of fractionation capacity. Growing to 3.6 Bcf/d of processing capacity and 232,000 Bbl/d of fractionation capacity

UticaDeveloping a leading position in the southern core of the Utica Shale with 185 MMcf/d of processing capacity. Growing to over 900 MMcf/d of processing capacity and nearly 140,000 Bbl/d of fractionation capacity by the end of 2014

Northeast Largest processor and fractionator in the southern Appalachian Basin

Southwest Best-in-class midstream services in the Granite Wash, Haynesville, Woodford and Eagle Ford Shales and have over 1.6 Bcf/d of gathering capacity and 817 MMcf/d of processing capacity

Page 8: Science, Technology, And Research SYMPOSIUM

Barbour

Brooke

Doddridge

Hancock

Harrison

Marion

Marshall

Monongalia

Ohio

Pleasants

Preston

Ritchie

Taylor

Tyler

Wetzel

Wood

Belmont

Carroll

Columbiana

Coshocton

Guernsey

Harrison

Holmes

Mahoning

Medina

MonroeMorgan

Muskingum

Noble

Portage

Stark

Summit

Trumbull

Tuscarawas

Washington

Wayne

Allegheny

Armstrong

Beaver

Butler

Clarion

Crawford

FayetteGreene

Lawrence

Mercer

Venango

Washington

Westmoreland

West Virginia

Ohio

MWE Utica CountiesMWE Marcellus CountiesMWE PlantsATEX Express PipelineTEPPCO Product Pipeline

Jefferson

Marcellus and Utica: 16 Major Projects Complete…

Mariner Projects

Rich Utica

Rich Marcellus

MWE Gathering Area

8

MWE NGL Pipelines

…22 Major projects under construction

MOBLEY COMPLEXMobley I & II – 320 MMcf/d – Complete

Mobley III – 200 MMcf/d – 4Q13Mobley IV – 200 MMcf/d – 1Q15

HOUSTON COMPLEXHouston I, II & III – 355 MMcf/d – Complete

Houston IV – 200 MMcf/d – 2015C3+ Fractionation – 60,000 Bbl/d – CompleteDe-ethanization – 38,000 Bbl/d – Complete

SHERWOOD COMPLEXSherwood I & II – 400 MMcf/d – Complete

Sherwood III – 200 MMcf/d – 4Q13Sherwood IV – 200 MMcf/d – 2Q14

De-ethanization – 38,000 Bbl/d – 1Q15

HOPEDALE FRACTIONATORC3+ Fractionation – 60,000 Bbl/d – 1Q14

KEYSTONE COMPLEXBluestone I & Sarsen I – 90 MMcf/d – Complete

Bluestone II – 120 MMcf/d – 2Q14Bluestone III – 200 MMcf/d – TBD

De-ethanization – 10,000 Bbl/d – 1Q14C3+ Fractionation – 10,000 Bbl/d –1Q14

SENECA COMPLEXSeneca I – 200 MMcf/d – 4Q13Seneca II – 200 MMcf/d – 4Q13Seneca III – 200 MMcf/d – 2Q14

De-ethanization – 38,000 Bbl/d – 4Q14

MAJORSVILLE COMPLEXMajorsville I - III – 470 MMcf/d – Complete

Majorsville IV – 200 MMcf/d – 1Q14Majorsville V – 200 MMcf/d – 4Q13Majorsville VI – 200 MMcf/d – 2016

De-ethanization I – 38,000 Bbl/d – 4Q13De-ethanization II – 38,000 Bbl/d – TBD

CADIZ COMPLEXCadiz I & Refrig – 185 MMcf/d – Complete

Cadiz II – 200 MMcf/d – 3Q14De-ethanization – 40,000 Bbl/d – 1Q14

Page 9: Science, Technology, And Research SYMPOSIUM

9

MarkWest is the Midstream Leader in Northeast Shales

Utica Shale

Marcellus Shale

Huron Shale

Page 10: Science, Technology, And Research SYMPOSIUM

10

Comparison of N.E. Interstate Pipeline Gas Quality Spec’s.

TETLP - Gas Quality Tariff Comparison

Gas SpecificationAGT

RP07 - 504 Cove PtColumbia

RP06 - 365 Dominion TENNTransco

Jan '07 MtgRockies Express

Heat Value Btu / SCF - Min 967 967 967 967 967 980 950

Heat Value Btu / SCF - Max 1110 1100 1110 1100 1100 1110 1150

C2+ / C4+ 12% / 1.5% - / - - / - - / - - / - - / 1.5% - / -

Wobbe Number - Min / Max 1314 / 1400 - / - 1295 / 1400 - / - - / - 1300 / 1400 - / -

Objectionable Matter: H20, Solids, Gums, Dust, Odors…

Commrcly Free

Commrcly Free

Commrcly Free

Commrcly Free

Commrcly Free

Commrcly Free

Commrcly Free

Oxygen Vol % 0.20% 0.20% 0.02% 0.20% 0.20% 0.01% 10 PPM

Inerts - Total Maximum 4.00% 4.00% 5.00% 4.00% 4.00% 3.00%

Carbon Dioxide - Vol % Max 2.00% 1.00% 1.25% - 3.00% 3.00% 2.00% 2.00%

Nitrogen - Vol % Max 2.75% A/ 4.00% - / - 4.00% - / - 3.00% - / -

LiquidsFree at Flowing

Conditions

Commrcly Free

Commrcly Free

Free at Flowing

Conditions

Free at Flowing

Conditions

No Free Liq on 1 Phase

Lines

Commrcly Free

Liquefiable Hydrocarbons - / - - / - 25 Deg FFree at Flowing

Conditions15 Deg F C6 + /

0.07% 20 Deg F

H2S - Hydrogen Hulphide Max Gr / 100 CF 0.50 Gr 0.25 Gr 0.25 Gr 0.25 Gr 0.25 Gr 0.25 Gr 0.25 Gr

Total Sulphur - Max Gr / 100 CF 10 20 2 20 20 20 5

Water - Lbs / MMCF 7 7 7 7 7 7 6

Temperature Deg F - Min / Max - / - - / - May Restrict - / - - / 120 - / 120 20 / 120

A/ 2.75% Max for O2 + N2 combined

Page 11: Science, Technology, And Research SYMPOSIUM

11

1990 1995 2000 2005 2010 2015 2020 2025 20300

5

10

15

20

25

30

35

Non-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshoreNon-associated onshore

Associated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oil

Associated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oilAssociated with oil

Coalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methane

Coalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methaneCoalbed methane

Non-associated offshore

Non-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshore

Non-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshoreNon-associated offshore

AlaskaAlaskaAlaskaAlaskaAlaskaAlaskaAlaskaAlaskaAlaskaAlaskaAlaskaAlaska

AlaskaAlaskaAlaska

AlaskaAlaskaAlaskaAlaskaAlaskaAlaska

AlaskaAlaskaAlaskaAlaskaAlaskaAlaskaAlaskaAlaskaAlaskaAlaskaAlaskaAlaskaAlaskaAlaskaAlaskaAlaskaAlaskaAlaskaAlaskaAlaska

Tight gasTight gasTight gasTight gasTight gasTight gasTight gasTight gasTight gasTight gasTight gasTight gas

Tight gasTight gasTight gas

Tight gasTight gasTight gasTight gasTight gasTight gas

Tight gasTight gasTight gasTight gasTight gasTight gasTight gasTight gasTight gasTight gasTight gasTight gasTight gasTight gasTight gasTight gasTight gasTight gasTight gasTight gas

Shale gas

Shale gasShale gasShale gasShale gasShale gasShale gasShale gasShale gasShale gasShale gasShale gasShale gasShale gasShale gasShale gasShale gasShale gasShale gasShale gasShale gasShale gas

Shale gasShale gasShale gasShale gasShale gasShale gasShale gasShale gasShale gasShale gasShale gasShale gasShale gasShale gasShale gasShale gasShale gasShale gasShale gas

U.S. Shale Plays are Driving Natural Gas Supply

• EIA data concludes that natural gas supply will increase by approximately 25 percent by 2030 driven primarily by increased demand by power generation and transportation sectors. Essentially all of the supply increase will be met by shale gas production

• By 2030 shale gas production will increase by 65% and will account for 48% of total U.S. natural gas supply

• Resource plays will continue to drive midstream investment for decades to come and MarkWest will continue to focus our investments in these areas

Source: U.S. Energy Information Administration, Annual Energy Outlook 2013 Early Release

U.S. dry natural gas production (trillion cubic feet per year)

2013

36%

24%

1%6%7%

11%

15%

22%

4%6%5%

7%

8%

48%

Page 12: Science, Technology, And Research SYMPOSIUM

12

Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-130.0

2.0

4.0

6.0

8.0

Fayetteville

U.S. Shale Play Volume Growth

The Marcellus Shale is the largest producing gas field in North America

Barnett

Haynesville

Marcellus

Sources: LCI Energy Insight gross withdrawal estimates as of January 2013 and converted to dry gas estimates with EIA-calculated average gross-to-dry shrinkage factors by state and/or shale play.

Woodford

Eagle Ford

Bakken

Bill

ion

cubi

c fe

et p

er d

ay

Page 13: Science, Technology, And Research SYMPOSIUM

World LNG Prices-January 2013

Page 14: Science, Technology, And Research SYMPOSIUM

14

North America33%

Asia25%

Middle East17%

OECD Europe8%

Rest of Europe6%

Cent. & S. America7% Africa

4%

World NGL Consumption*

* IHS Chemical

Page 15: Science, Technology, And Research SYMPOSIUM

Mt. Belvieu NGL Prices-$/gal.

1/201

2

1/201

2

2/201

2

2/201

2

3/201

2

3/201

2

4/201

2

4/201

2

5/201

2

5/201

2

6/201

2

6/201

2

7/201

2

7/201

2

8/201

2

8/201

2

9/201

2

9/201

2

10/20

12

10/20

12

11/20

12

12/20

12

12/20

12

1/201

3

1/201

3

2/201

3

2/201

3

3/201

3

3/201

3

4/201

3

4/201

3

5/201

3$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

Natural Gas Liquids (NGL) Prices

Ethane Propane Butane Isobutane Natural Gasoline

Natu

ral G

as L

iqui

ds (N

GL)

Pric

es in

$ p

er G

allo

n

Source: OPIS Pricing

Page 16: Science, Technology, And Research SYMPOSIUM

Domestic FRAC Spread

    Price   Price Weighed

Mix Product Cnts/gal $/gal BTU/Gal $/MMBTU Average42% Ethane 28.630 $ 0.29 66,500 4.31 $ 1.81 28% Propane 94.380 $ 0.94 90,900 10.38 $ 2.91 11% Normal Butane 126.060 $ 1.26 102,930 12.25 $ 1.35 6% Isobutane 126.560 $ 1.27 98,935 12.79 $ 0.77

13% Natural Gasoline 205.000 $ 2.05 110,100 18.62 $ 2.42 100% $ 9.25

Henry Hub Natural Gas $ 4.13

 Frac Spread   $        5.12 

1/200

73/2

007

5/200

77/2

007

9/200

711

/2007

1/200

83/2

008

5/200

87/2

008

9/200

811

/2008

1/200

93/2

009

6/200

98/2

009

10/20

0912

/2009

2/201

04/2

010

6/201

08/2

010

10/20

1012

/2010

2/201

14/2

011

6/201

18/2

011

10/20

111/2

012

3/201

25/2

012

7/201

29/2

012

11/20

121/2

013

3/201

35/2

013

-$2$0$2$4$6$8

$10$12$14

Frac Spread

$/M

Mbt

u

Avg. $7.41

Page 17: Science, Technology, And Research SYMPOSIUM

International FRAC Spread*1/2

007

3/200

75/2

007

7/200

79/2

007

11/20

071/2

008

3/200

85/2

008

7/200

89/2

008

11/20

081/2

009

3/200

96/2

009

8/200

910

/2009

12/20

092/2

010

4/201

06/2

010

8/201

010

/2010

12/20

102/2

011

4/201

16/2

011

8/201

110

/2011

1/201

23/2

012

5/201

27/2

012

9/201

211

/2012

1/201

33/2

013

5/201

3

-$2$0$2$4$6$8

$10$12$14

Frac Spread

$/M

Mbt

u Avg. $7.41

    Price   Price Weighed

Mix Product Cnts/gal $/gal BTU/Gal $/MMBTU Average42% Ethane 28.630 $ 0.29 66,500 4.31 $ 1.81 28% Propane 139.380  $ 1.39 90,900 15.33 $ 4.29 11% Normal Butane   168.060  $ 1.68 102,930 16.33 $ 1.80 6% Isobutane   168.560  $ 1.69 98,935 17.04 $ 1.02

13% Natural Gasoline 205.000 $ 2.05 110,100 18.62 $ 2.42 100% $ 11.34

Henry Hub Natural Gas $ 4.13

 Frac Spread   $        7.21 

•Avg. NW Europe, Japanese Propane and Butane Prices

Page 18: Science, Technology, And Research SYMPOSIUM

Enormous Growth in Liberty Processing Volumes

18

Mill

ion

cubi

c fe

et p

er d

ay

Liberty volumes to double in 2013 and grow significantly in the future

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

0

500

1,000

1,500

2,000

2,500

3,000

3,500 Processing Capacity Volume Processed

Page 19: Science, Technology, And Research SYMPOSIUM

U.S. Processing Capacity Additions

19

One-third of US new processing capacity is in Northeast

RBN Energy – March 2013

Page 20: Science, Technology, And Research SYMPOSIUM

U.S. NGL Market Growth

20

Domestic NGL Production to increase 50% by 2017

RBN Energy – March 2013

Page 21: Science, Technology, And Research SYMPOSIUM

Northeast NGL Production: Set for Liftoff

NGL production forecasted to increase six fold by 2015

RBN Energy/BENTEK – March 201321

Page 22: Science, Technology, And Research SYMPOSIUM

Marcellus & Utica C2 Potential

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

0

50,000

100,000

150,000

200,000

250,000

300,000

Marcellus Processing Capacity Utica Processing Capacity

Mar

kWes

t NE

Pro

cess

ing

Cap

acity

MM

cf/d

MarkW

est NE

C2 P

roduction Potential (M

Bbl/d)

22

Ethane Opportunity is Significant

Page 23: Science, Technology, And Research SYMPOSIUM

Marcellus & Utica Propane Plus Potential

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

0

125,000

250,000

Marcellus Processing Capacity Utica Processing Capacity

Mar

kWes

t NE

Pro

cess

ing

Cap

acity

MM

cf/d

MarkW

est NE

C3+ P

roduction Potential (M

Bbl/d)

Propane and heavier opportunity is very significant

23

Page 24: Science, Technology, And Research SYMPOSIUM

1515 Arapahoe StreetTower 1, Suite 1600

Denver, Colorado 80202Phone: 303-925-9200

Investor Relations: 866-858-0482Email: [email protected]

Website: www.markwest.com