MarkWest Energy Partners L.P. (MWE, Financial) filed Quarterly Report for the period ended 2009-03-31.
MarkWest Energy Partners L.P. is engaged in the gathering and processing of natural gas and the transportation fractionation and storage of NGLs. MarkWest Energy Partners L.P. has a market cap of $944.4 million; its shares were traded at around $16.6 with a P/E ratio of 14.6 and P/S ratio of 0.7. The dividend yield of MarkWest Energy Partners L.P. stocks is 15.4%.
In the Northeast, Southwest and Gulf Coast segments, operating income before items not allocated to segments decreased $61.0 million for the three months ended March 31, 2009 compared to the same period in 2008. The decrease is primarily due to lower prices of natural gas and natural gas liquids in all areas. Depreciation and amortization increased $9.8 million for the three months ended March 31, 2009 compared to the same period in 2008. Approximately $4.4 million of the increase is due to the step-up in values for property, plant and equipment and intangible assets related to the 43
Interest expense increased $6.6 million for the three months ended March 31, 2009 relative to the same period in 2008. The increase is related to additional borrowings in 2008 at higher rates to fund the Merger and our capital plan. Derivative loss increased by $6.6 million during the three months ended March 31, 2009 compared to the same period in 2008. Unrealized loss from the mark-to-market of our derivative instruments changed by $(70.6) million while realized gain from the settlement of our derivative instruments changed by $64.0 million, due mainly to volatility in commodity prices when comparing prices in 2009 with 2008. Realized gains during 2009 also include net gains of $15.2 million due to the early settlement of certain positions during 2009 as discussed in Note 4 of the accompanying Notes to the Condensed Consolidated Financial Statements included in Item 1 of this Form 10-Q. The provision for income tax benefit was $9.3 million for the three months ended March 31, 2009 compared to income tax expense of $23.4 million for the same period in 2008. The decrease of $32.8 million in tax expense is due primarily to the net loss reported for the first quarter of 2009. The current provision for income tax expense was $6.3 million for the three months ended March 31, 2009. Approximately $5.7 million is attributable to MarkWest Hydrocarbon, Inc. Of this amount, $5.9 million is attributable to MarkWest Hydrocarbon's ownership of Class A units, and the remaining benefit of $0.2 million is related to the Corporation's NGL marketing business. The remaining $0.6 million is related to taxes payable by the Partnership associated with the Texas Margin tax and Michigan Business Taxes. Selling, general and administrative expenses decreased $6.5 million for the three months ended March 31, 2009, compared to the same period in 2008 primarily due to lower expense related to share-based compensation plans. During the first quarter of 2009, no expense was recognized for the 2009 performance based phantom units as the established performance targets are not currently expected to be achieved. Additionally, the Partnership incurred $2.6 million of expenses related to the Merger during the three months ended March 31, 2008, which did not recur in 2009. Cash Distributions
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MarkWest Energy Partners L.P. is engaged in the gathering and processing of natural gas and the transportation fractionation and storage of NGLs. MarkWest Energy Partners L.P. has a market cap of $944.4 million; its shares were traded at around $16.6 with a P/E ratio of 14.6 and P/S ratio of 0.7. The dividend yield of MarkWest Energy Partners L.P. stocks is 15.4%.
Highlight of Business Operations:
We reported a net loss of $29.6 million for the three months ended March 31, 2009, compared to net income of $19.2 million for three months ended March 31, 2008. Contributing factors to the $48.8 million change in net income for the three months ended March 31, 2009, compared to the same period in 2008 were:In the Northeast, Southwest and Gulf Coast segments, operating income before items not allocated to segments decreased $61.0 million for the three months ended March 31, 2009 compared to the same period in 2008. The decrease is primarily due to lower prices of natural gas and natural gas liquids in all areas. Depreciation and amortization increased $9.8 million for the three months ended March 31, 2009 compared to the same period in 2008. Approximately $4.4 million of the increase is due to the step-up in values for property, plant and equipment and intangible assets related to the 43
Interest expense increased $6.6 million for the three months ended March 31, 2009 relative to the same period in 2008. The increase is related to additional borrowings in 2008 at higher rates to fund the Merger and our capital plan. Derivative loss increased by $6.6 million during the three months ended March 31, 2009 compared to the same period in 2008. Unrealized loss from the mark-to-market of our derivative instruments changed by $(70.6) million while realized gain from the settlement of our derivative instruments changed by $64.0 million, due mainly to volatility in commodity prices when comparing prices in 2009 with 2008. Realized gains during 2009 also include net gains of $15.2 million due to the early settlement of certain positions during 2009 as discussed in Note 4 of the accompanying Notes to the Condensed Consolidated Financial Statements included in Item 1 of this Form 10-Q. The provision for income tax benefit was $9.3 million for the three months ended March 31, 2009 compared to income tax expense of $23.4 million for the same period in 2008. The decrease of $32.8 million in tax expense is due primarily to the net loss reported for the first quarter of 2009. The current provision for income tax expense was $6.3 million for the three months ended March 31, 2009. Approximately $5.7 million is attributable to MarkWest Hydrocarbon, Inc. Of this amount, $5.9 million is attributable to MarkWest Hydrocarbon's ownership of Class A units, and the remaining benefit of $0.2 million is related to the Corporation's NGL marketing business. The remaining $0.6 million is related to taxes payable by the Partnership associated with the Texas Margin tax and Michigan Business Taxes. Selling, general and administrative expenses decreased $6.5 million for the three months ended March 31, 2009, compared to the same period in 2008 primarily due to lower expense related to share-based compensation plans. During the first quarter of 2009, no expense was recognized for the 2009 performance based phantom units as the established performance targets are not currently expected to be achieved. Additionally, the Partnership incurred $2.6 million of expenses related to the Merger during the three months ended March 31, 2008, which did not recur in 2009. Cash Distributions
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