DENVER, Nov. 12, 2015 /PRNewswire/ -- John M. Fox,
the co-founder of MarkWest Hydrocarbon, former CEO, Chairman and
Director of MarkWest Energy GP, L.L.C., the general partner of
MarkWest Energy Partners, L.P. ("MarkWest"), and beneficial owner
of 1,361,774 MarkWest common units, today reaffirmed that he
intends to vote the common units beneficially owned by him against
the proposed merger with MPLX LP (MPLX). He urges fellow
unitholders to withhold their proxies or vote no.
On November 4, 2015, Mr. Fox
released an open letter to the board of directors of MarkWest
Energy GP, L.L.C. regarding the proposed merger with MPLX. In the
letter, Mr. Fox outlines his belief that the proposed merger is
fundamentally a bad deal for MarkWest unitholders:
- SIGNIFICANT REDUCTION IN DISTRIBUTIONS. Subsequent
to the closing of the proposed merger, and made public by the
referenced companies, the annual distribution to MarkWest
unitholders is projected to be cut by 46%.
- IDRs TAKE MONEY FROM UNITHOLDERS AND LIMIT FUTURE
GROWTH. MarkWest unitholders are currently invested in an
entity with no Incentive Distribution Right (IDR) obligations.
Post-merger, cash available for distribution to unitholders
is significantly reduced by obligations to make IDR payments to
Marathon Petroleum, as owner of the MPLX GP and its IDRs.
- MARKWEST IS MUCH BETTER OFF AS A STANDALONE
COMPANY. MarkWest is the 2nd largest gas
processor in the United States,
MarkWest is the largest gas processor in the prolific
Marcellus/Utica gas field, processing approximately 60% of the
total rich-gas production from this field. MWE management
made it very clear in its June 3,
2015, Analyst Day presentation to the market that it has a
tremendous growth platform.
"In my view, the $1.84 per unit
cash increase announced from Marathon Petroleum does not materially
change the fundamentals of the deal," Fox said. "The revised
$52.93 per unit implied deal terms
based on MPLX's closing price on November
10 is still 33% below the initial implied deal terms
outlined in July."
Photo - http://photos.prnewswire.com/prnh/20151111/286596
Mr. Fox said: "For the same reasons I outlined in my initial
letter to the MarkWest Board, this is still a bad deal for all
MarkWest unitholders. I have spoken with many investors of MarkWest
and I believe others are not happy with the terms of the deal, and
see no compelling reason for the MarkWest Board of Directors to
have accepted such a low-ball offer from Marathon. If
MarkWest unitholders approve this deal, they will own the units of
MPLX, a company that will distribute an estimated $10.2 billion of future cash flow over the next
eleven years to Marathon Petroleum in the form of IDRs. Those
dollars should be distributed to the MarkWest unitholders...the
very unitholders that provided the capital base so that MarkWest
could become the company that it is today -- the best midstream
company with a tremendous growth platform operating in the highest
return basins in North America.
"The supportive feedback I've received from research analysts
and institutional investors, including top ten MarkWest
unitholders, since submitting the open letter to the MarkWest Board
of Directors, and since MPC's announcement of revised terms on
November 10, is tremendous. I still
believe this is a bad deal and that Marathon Petroleum needs
MarkWest more than we need them."
Conference Call Details
John Fox will host a conference
call for analysts and investors to discuss his view on the proposed
merger between MarkWest and MPLX.
When:
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Tuesday, November 17,
2015, 2:00 p.m. Eastern Time.
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Dial
In:
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(877) 300-8521
(U.S.)
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(855) 669-9657
(Canada)
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(412) 317-6026
(International)
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Request John Fox
Conference Call
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Webcast:
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Live and rebroadcast
over the Internet at www.iamvotingno.com
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Replay:
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A replay will be
available one hour after the call through December 1, 2015, at
11:59 p.m. Eastern Time. You may access this replay by dialing
(877) 870-5176 (U.S.) or (858) 384-5517 (International), and
referencing the replay passcode: 10076358.
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Contact:
John M. Fox
E: Johnfox@iamvotingno.com
P: 303-926-4354
Website: www.iamvotingno.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/john-fox-co-founder-of-markwest-hydrocarbon-reaffirms-stance-against-the-proposed-merger-between-markwest-and-mplx-will-host-a-conference-call-for-analysts-and-investors-to-discuss-his-views-on-november-17-300177325.html
SOURCE John M. Fox