Energy & Minerals Group, MarkWest Energy Partners team for natural gas JV


gas2_lrgNYSE-listed natural gas developer MarkWest Energy Partners has partnered with specialist private equity firm The Energy & Minerals Group (EMG) for a development joint venture – Utica Joint Venture.

The Utica Joint Venture is dedicated to the development of midstream infrastructure on behalf of natural gas producers operating throughout the liquids-rich Utica Shale formation in Ohio.

EMG recently agreed to increase its initial capital investment in the Utica Joint Venture from $500m to $950m. The additional contributions from EMG provide MarkWest with “significant financial flexibility” in the timing of its capital contributions to the Utica Joint Venture, it said.

In the past three months, MarkWest has raised $1.5bn in net proceeds from debt and equity transactions. In addition, MarkWest is currently undrawn on its $1.2bn credit facility and has the ability to issue common units under its $600m continuous equity programme.

“Due to the tremendous success of producers operating in the Utica Shale, the scale and scope of the Utica Joint Venture has expanded considerably over the course of the past year. This transaction addresses the capital requirements associated with the ongoing system expansion.” said John Raymond, managing partner and CEO of EMG. “We are pleased to further grow and support the relationship we have with the talented people at MarkWest.”

EMG focuses exclusively on investing across the natural resource industry. It has $6.2bn of total investor commitments, including co-investments, with in excess of $3.1bn deployed since inception.

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