-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FK7v+dg41/0XDuU9M+OdU5vjU+MWYqqnZyARZJPIS/2/GEIj3h7Cw7ERnPWQiTfW K4AGlxeGzhHdsM9b0A9/Jw== 0000932384-01-000051.txt : 20010224 0000932384-01-000051.hdr.sgml : 20010224 ACCESSION NUMBER: 0000932384-01-000051 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20010222 ITEM INFORMATION: FILED AS OF DATE: 20010222 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MARKWEST HYDROCARBON INC CENTRAL INDEX KEY: 0001019756 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS DISTRIBUTION [4924] IRS NUMBER: 841352233 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-14841 FILM NUMBER: 1552400 BUSINESS ADDRESS: STREET 1: 155 INVERNESS DRIVE WEST STREET 2: SUITE 200 CITY: ENGLEWOOD STATE: CO ZIP: 80112-5004 BUSINESS PHONE: 3032908700 MAIL ADDRESS: STREET 1: 155 INVERNESS DRIVE WEST STREET 2: SUITE 200 CITY: ENGLEWOOD STATE: CO ZIP: 80112-5004 8-K 1 0001.txt FORM 8-K [2-01] UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ---------------------------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (date of earliest event reported): FEBRUARY 22, 2001 MARKWEST HYDROCARBON, INC. (Exact Name of Registrant as Specified in Charter) DELAWARE 1-11566 84-1352233 (State or Other Jurisdiction (Commission (I.R.S. Employer of Incorporation) File Number) Identification No.) 155 INVERNESS DRIVE WEST, SUITE 200, ENGLEWOOD, CO 80112-5000 (Address of principal executive offices, zip code) Registrant's telephone number, including area code: (303) 290-8700 NOT APPLICABLE Former Name or Former Address if Changed Since Last Report Item 5. OTHER EVENTS On February 22, 2001, MarkWest Hydrocarbon, Inc. issued the press release attached hereto as Exhibit 99.1 -2- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. MARKWEST HYDROCARBON, INC. (Registrant) Date: February 22, 2001 By: /S/ GERRY TYWONIUK ----------------------------------- Gerry Tywoniuk, Chief Financial Officer and Vice President--Finance EX-99 2 0002.txt PRESS RELEASE EXHIBIT 99.1 - PRESS RELEASE DATED FEBRUARY 22, 2001 Contact: John Fox, CEO and President Brian O'Neill, COO and Sr. VP Gerry Tywoniuk, CFO and VP Finance David Wright, Director of Investor relations Phone: (303) 290-8700 E-mail: dwright@markwest.com Website: www.markwest.com LAWSUITS CHALLENGE MARKWEST HYDROCARBON POSITION DENVER - February 22, 2001 - MarkWest Hydrocarbon, Inc. (AMEX:MWP) ("the Company") reported today that three complaints have been filed against it in the Circuit Court of Wayne County, West Virginia by: Columbia Gas Transmission Corporation and Columbia Natural Resources, Inc.; Equitable Production Company and Equitable Energy LLC; and Cobra Petroleum Production Company et al. These complaints each allege breach of contract and seek various forms of relief and damages. "MarkWest will vigorously defend our position which we believe is fair and reasonable," said John Fox, president and chief executive officer of MarkWest. "We have offered these companies a win-win solution. A number of other producers have agreed to the alternative proposal provided by MarkWest." As the Company reported in its fourth quarter 2000 earnings release February 7, 2001, current and futures prices for natural gas have risen dramatically, and prices for natural gas liquids (propane, butane, etc.) ("NGLs") have stayed essentially flat. A large portion of MarkWest's processing services for gas producers in Appalachia involves extracting NGLs from inlet gas streams and replacing the equivalent heat content with dry natural gas purchased in the spot or forward markets. This part of the Company's operating margin depends on a positive spread between NGL prices and natural gas costs. When feasible, the Company has hedged a substantial portion of its natural gas redelivery obligation. Effective February 1, 2001, the Company provided producers with an alternative processing contract that provides for additional compensation when processing margins are low and reduced compensation when these margins are high. To date, nearly 50 producers (accounting for a minority share of the volume) out of approximately 325 have agreed to the new contract. If producers elect to remain with the existing contract, the Company will return the replacement natural gas at a later date as permitted under the existing contract such that the Company can earn a reasonable fee for its services; for example, the Company recently advised producers it would return gas for February 2001 processing no later than May 2001. The complaints allege this procedure for the existing contracts constitutes a breach. These high natural gas price conditions, of course, are not an isolated situation with MarkWest--nationwide, producers and gas processors are renegotiating their processing agreements for this reason. These arrangements will assure the continued processing of producers' natural gas and will provide producers the capacity necessary to support their increasing production. Between 1999 and 2001, MarkWest is investing $35 million to provide expanded processing services for the producers. These investments enable the Appalachia gas producing industry to meet the growing demand for natural gas and NGLs such as propane. ### MarkWest Hydrocarbon, Inc., provides natural gas processing and related services through its modern, efficient plant and pipeline systems. Near-record drilling activity for natural gas in Appalachia and elsewhere and the growing trend for natural gas producers to outsource the complex task of converting raw natural gas at the wellhead into marketable natural gas and NGLs (propane, butanes, natural gasoline) are driving the demand for MarkWest's services. MarkWest also produces natural gas in the Rocky Mountains and Michigan. This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements with respect to the outcome of the pending litigation matters and contract negotiations. All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. The forward-looking statements involve risks and uncertainties that affect the Company's operations, financial performance and other factors as discussed in the Company's filings with the Securities and Exchange Commission. Among the factors that could cause results to differ materially are those risks discussed in the Company's Form 10-K for the year ended December 31, 1999, intermediate or final decisions in the pending litigation, and the relative positions of the parties in the negotiation of new agreements. -----END PRIVACY-ENHANCED MESSAGE-----