MarkWest Energy Partners LP Q1 2009 Earnings Call Transcript

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2009-05-12 18:02:40.0

Tags: Call Transcript, Wachovia Corp., Earnings, Volume, Telecom & Utilities, Seeking Alpha, Markwest Energy Partners L.P.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Michael Blum - Wachovia Securities.

Michael Blum - Wachovia Securities

A couple of questions on the quarter if you don’t mind; can you just talk about volumetrically, what’s going on at Javelina, number one. Number two, in Liberty the volumes were down slightly sequentially and then I guess in spite of where natural gas prices are in the mid-continent, Oklahoma was generally up. So maybe if you can just go by region and talk about what’s going on in terms of volumes?

John Mollenkopf

Yes Michael, in the first quarter at Javelina, I think that was your first question, there was a refinery turnaround that caused our volumes to be lower than last year. We had budgeted for that and so it was expected; it was just in a normal course of business that the refineries had to do some repairs.

I think you’re asking also about the Oklahoma area, which obviously saw a large increase in volume in the Woodford system. We did have some decline in the Foss Lake area from the same period last quarter and that’s kind of a result of a somewhat reduced drilling effort that’s going on out there, but not significant. Liberty volumes?

Michael Blum - Wachovia Securities

The question; Liberty was slightly down sequentially from the fourth quarter, so I was just curious what’s going on there?

Frank Semple

Well we’re just kind of in a startup phase. There you’re going to see volumes fluctuate quarter-to-quarter over the next several quarters. Really the volumes are driven by the range drilling program.

As I mentioned in my formal comments, we just brought the new 30 million a day cryogenic facility on and that plant coupled with our existing refrigeration capacity now, gives a range, a clear path to ramping up their volumes to that max capacity of both those plants in that 50 to 60. They’ve been talking about, clearly on an equivalent basis being in that 80 to 100 by the end of the year. So, while startup quarter-to-quarter has been a little bit off, we’re going to be ramping up quickly.

Randy Nickerson

Mike, I’m actually showing 187 is what we processed through the quarter last year from the time we started that plant up and then we processed 33 million a day in the first quarter. So, maybe we can touch base with you afterwards and make sure we’ve got our information synced up.

 

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