MarkWest Energy Partners Friday said it has completed acquiring 49% stake in Liberty Midstream & Resources, LLC held by The Energy & Minerals Group, the news reports said.
The terms of the acquisition includes approximately $1.0 billion of cash and the issuance of 19.95 million unregistered MWE Class B units to The Energy & Minerals Group.
MarkWest expects that on a DCF per unit basis, the acquisition is immediately accretive in 2012. It also expects that the acquisition will be up to 6% accretive in 2013 and beyond.
MarkWest and EMG are also entering into a new Utica Shale midstream joint venture to develop significant natural gas processing, and NGL fractionation, transportation and marketing infrastructure in eastern Ohio starting in 2012.
As per the terms of the Utica joint venture, EMG will fund a majority of the intitial capital expenditures required to develop Utica midstream infrastructure.
Frank Semple, Chairman, President and Chief Executive Officer of MarkWest said, “We are pleased to complete the acquisition of EMG’s interest in the Liberty joint venture.” He also added, “The Liberty joint venture has beenworld-class midstream infrastructure very successful in leveraging its first-mover advantage to become the largest provider of world-class midstream infrastructure critical to the development of the liquids-rich area of the Marcellus.”
MarkWest Energy is engaged in processing, gathering and transportation of natural gas. It is also a leading provider of midstream services in the natural gas industry. EMG is a private investment company that invests in energy and minerals sectors.
