MarkWest Energy Partners, L.P.NYSE
Dec. 2, 2015, 3:44 PM
- Energy MLPs sink along with crude oil prices, with some midstream energy bellwethers including Energy Transfer Equity (ETE -4.9%) down by more than the Alerian MLP index's 3% drop.
- MLPs have been closely correlated with the fall in oil prices this year, which is not the norm for the sector, Jerry Swank tells Barron’s; like the last six months, he says today's slide has little to do with company fundamentals.
- MLPs that transport oil to refiners, such as Shell Midstream Partners (SHLX -2.9%) or Phillips 66 Partners (PSXP -4%), are usually more stable than other midstream companies, but today they're also taking a beating.
- Also: PAGP -6.8%, ETP -5.8%, PAA -4.5%, WMB -3.2%, SEP -2.6%, EPD -2.2%, MWE -1.6%, MMP -0.2%.
- ETFs: AMLP, AMJ, KYN, MLPL, YMLP, TYG, SRV, KYE, CEM, MLPI, NML, FEN, NTG, MLPA, KMF, EMLP, FMO, MLPN, SRF, FEI, JMF, CBA, MLPG, MLPX, GMZ, EMO, MLPS, MLPY, TTP, CTR, YMLI, AMU, CEN, MLPJ, ZMLP, GER, AMZA, SMM, MIE, DSE, ENFR, FPL, ATMP, JMLP, MLPC, MLPW, IMLP
Dec. 1, 2015, 2:47 PM
- MarkWest Energy (MWE -4.8%) unitholders vote to approve a merger deal with MPLX (MPLX -13.6%), overcoming opposition from two MWE founders; the deal is now expected to be completed by Dec. 4.
- The agreement will make MWE, the second largest natural gas processor in the U.S., a subsidiary of Marathon Petroleum (MPC +0.9%) pipeline operator MPLX, and create one of the biggest MLPs.
- The overall value of the cash and stock deal originally was pegged at ~$15B in July but had fallen to ~$10B by mid-November amid plunging energy stock prices, when MPC increased the cash portion of the deal to $6.20/unit for MWE shareholders.
Nov. 20, 2015, 9:58 AM
- MarkWest Hydrocarbon founders John Fox and Brian O'Neill say they will vote against a merger of MarkWest Energy (MWE -1.2%) and MPLX (MPLX -2.1%).
- Fox already has expressed his views, and O'Neill now says he is in "100% agreement" with Fox, adding "MWE has spent more than $10B in capital expenditures over the previous five years, which means MPLX and its owner, Marathon Petroleum (MPC +0.5%), are merely refunding MWE's unitholders and leaving a small premium for their efforts."
- At the same time, MWE announces that the Glass Lewis and Egan Jones proxy advisory firms recommend shareholders vote for the merger.
- Earlier: MarkWest says ISS recommends investors vote for deal with MPLX (Nov. 19)
Nov. 18, 2015, 11:57 AM
- MarkWest Energy Partners (MWE +2.4%) says the ISS proxy advisory firm recommends MWE unitholders vote in favor of the combination of MWE with MPLX (MPLX -3.3%).
- The ISS recommendation cites "the premium to the unaffected price at announcement, the subsequent cash increases in the merger consideration, and the strategic advantages of the combination - including both the access to relatively more certain capital sources at a lower cost of capital and the ability to de-risk certain growth opportunities" with Marathon Petroleum (MPC +1.1%) as its parent.
- Separately, Kayne Anderson Capital Advisors discloses a 5.7% active stake in MWE.
Nov. 17, 2015, 8:24 AM
- Marathon Petroleum (NYSE:MPC) again raises the cash portion of its cash and stock offer for MarkWest Energy Partners (NYSE:MWE), hoping to clinch its proposed takeover.
- MPC, which has agreed to buy MWE through its MPLX pipeline unit, says it will now offer $6.20/unit, up from $5.21 offered last week.
- The latest offer, which MPC and MPLX say represents the best and final offer, nearly doubles the cash portion of the offer from the $3.37/unit offered in July when the deal was reached.
- MWE +2.7% premarket.
Nov. 12, 2015, 11:59 AM
- Former MarkWest Energy (MWE -5.1%) Chairman and CEO John Fox reaffirms his opposition to the company's proposed merger with MPLX (MPLX -1.2%), urging fellow unitholders to withhold their proxies or vote no.
- Fox says Marathon Petroleum's (MPC -2.2%) $1.84/unit cash increase "does not materially change the fundamentals of the deal. The revised $52.93/unit implied deal terms based on MPLX's closing price on Nov. 10 is still 33% below the initial implied deal terms outlined in July."
- Earlier: Former MarkWest CEO aims to stop merger with MPLX (Nov. 4)
Nov. 10, 2015, 5:34 PM
- Marathon Petroleum (NYSE:MPC) says it is raising the cash portion of its offer to buy MarkWest Energy Partners (NYSE:MWE) by $400M to $1.075B from $675M.
- MPC, which is seeking to acquire MWE through its MPLX pipeline unit, says it will now offer $5.21/unit in cash, up from the $3.37 it offered in July.
- MPC says MWE unitholders would continue to get 1.09 MPLX units for each share held, for total consideration of ~$52.93 per MWE common unit.
Nov. 4, 2015, 8:30 AM
- Former MarkWest Energy Partners (NYSE:MWE) CEO John Fox says he will oppose Marathon Petroleum's (NYSE:MPC) proposed $15.6B acquisition of the company through its MPLX pipeline unit.
- Fox, who owns 1.4M MWE units, writes in an open letter that MWE should remain a standalone company to avoid a significant cut in shareholder distributions, as cash available for distribution would be reduced by obligations to make incentive distribution payments to MPC.
- Also: MarkWest Energy Partners misses by $0.03, misses on revenue
Nov. 4, 2015, 6:21 AM
- MarkWest Energy Partners (NYSE:MWE): Q3 EPS of $0.15 misses by $0.03.
- Revenue of $474.29M (-21.9% Y/Y) misses by $119.18M.
Nov. 3, 2015, 5:30 PM
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Oct. 22, 2015, 4:57 PM
- MarkWest Energy Partners (NYSE:MWE) declares $0.93/share quarterly dividend, 1.1% increase from prior dividend of $0.92.
- Forward yield 8.86%
- Payable Nov. 13; for shareholders of record Nov. 4; ex-div Nov. 2.
Aug. 25, 2015, 12:47 PM
- A new report from Deutsche Bank says the perfect storm of bad news has driven energy MLPs down to the most compelling levels since the selloffs of 2008, and suggests three new MLP ideas for investors to consider.
- The firm says Energy Transfer Partners (ETP +1%) is very undervalued, trading nearly 35% off its peak with high single-digit distribution growth foreseen over the next few years; the company owns and operates ~35K miles of natural gas and natural gas liquids pipelines, and its Sunoco affiliate supplies motor fuel to independent dealers, stores, distributors and commercial customers.
- MarkWest Energy (MWE +0.9%) has a leading presence in many natural gas resource plays, and the firm thinks the company has outstanding interconnectivity to takeaway capacity, strong regional expertise, strong producer relationships, and views MWE as a solid buyout candidate.
- Deutsche Bank also likes MPLX ([MPLX]] +1.2%), the MLP formed in 2012 by Marathon Petroleum to own, operate and acquire pipelines and other midstream assets related to the transportation and storage of crude oil and refined products.
Aug. 13, 2015, 2:41 PM
- MarkWest Energy Partners (MWE -0.2%) says it is teaming up with The Energy & Materials Group to build a ~$1B gas pipeline gathering system in the Utica Shale in Ohio.
- MWE, which is being bought by Marathon Petroleum’s (MPC -1.2%) MPLX (MPLX -1.5%) MLP for $14.7B, is leading the project through a long-term contract with the newly formed Ascent Resources, a new stand-alone company that was part of Aubrey McClendon’s American Energy Partners.
- The companies say the new system is expected to gather more than 2B cf/day of gas from the Utica and ultimately could consist of more than 250 miles of pipeline and more than 200K hp of compression; initial operation is expected to begin by the end of 2015.
Aug. 7, 2015, 11:36 AM
- MarkWest Energy (MWE -3.1%) falls sharply for a third straight session as shares are downgraded to Neutral from Outperform with a $72 price target, lowered from $81, at Credit Suisse, which cites MWE's revised guidance for EBITDA and distributable cash flow to $925M-$975M and $700M-$750M, implying a $50M reduction to the high end of the company's prior guidance.
- MWE said its guidance revision is because of a "continued period" of low commodity prices, so the firm cuts its 2017-18 EBITDA estimates by 6%.
Aug. 6, 2015, 12:59 PM
- MarkWest Energy Partners (MWE -3.5%), which in July agreed to be acquired by MPLX (NYSE:MPLX), tumbles for a second straight day after posting weak Q2 results and lowering the high end of guidance for 2015 EBITDA and distributable cash flow.
- Shares have dropped 14% in two sessions with units trading ~$53.50, well off the $69 level after the merger was announced.
- Wunderlich lowers its MWE price target to $60 from $71, saying Q2 results reinforce its view that near-term conditions in the Marcellus and Utica remain significantly challenged, and macro conditions have overwhelmed otherwise sound management of the balance sheet and operations to maximize results.
- The evaporation of the trading premium to MPLX’s offer perhaps indicates a fading market belief in a competing bid emerging, the firm adds.
Aug. 5, 2015, 9:11 AM
- MarkWest Energy Partners (NYSE:MWE): Q2 EPS of -$0.55 misses by $0.71.
- Revenue of $459.63M (-11.3% Y/Y) misses by $115.47M.