MarkWest Energy Partners. L.P. announced the closing of the previously announced acquisition of Keystone Midstream Services, LLC (Keystone) from Stonehenge Energy Resources, L.P., and subsidiaries of Rex Energy Corporation (Rex Energy) and Sumitomo Corporation (Sumitomo).
The acquisition consideration was $512 million. Keystone’s existing assets are located in Butler County, Pennsylvania and include two cryogenic gas processing plants totaling 90 million cubic feet per day of processing capacity, a gas gathering system and associated field compression. Concurrent with the closing of the transaction, Rex Energy and Sumitomo have dedicated an 895 square mile area to MarkWest. MarkWest will gather and process rich gas, and fractionate the natural gas liquids under long-term, fee-based agreements.
MarkWest’s acquisition of Keystone expands the Partnership’s leading position in the liquids rich Marcellus Shale area into northwest Pennsylvania and eastern Ohio.