A major merger indicates more consolidation in the shale energy industry.
Industry giant MarkWest, which has substantial operations in Harrison County, Ohio, as well as elsewhere throughout our region, has announced it will sell itself to a partnership run by Marathon Petroleum. That partnership will spend $14.69 billion to purchase MarkWest.
The cash-and-stock deal values MarkWest units at $78.64 each, and includes $4.2 billion in debt held by MarkWest. The companies expect to complete the deal during the fourth quarter, and value it at $20 billion. Denver’s MarkWest will become a unit of MPLX LP, a midstream partnership created by Marathon Petroleum.
The combined company will have a market capitalization of $21 billion. Marathon’s huge pipeline network will now tie in closely with the refiner.
(The Associated Press contributed to this report.)
