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MPLX LP Announces Formation of Strategic Joint Venture with Antero Midstream Partners LP

FINDLAY, Ohio, Feb. 6, 2017 - MPLX LP (NYSE: MPLX) today announced that its wholly owned subsidiary, MarkWest Energy Partners, L.P., and Antero Midstream Partners LP (NYSE: AM) have formed a strategic joint venture to support the development of Antero Resources Corporation's (NYSE: AR) extensive Marcellus Shale acreage in the prolific rich-gas corridor of West Virginia.

The joint venture is owned 50 percent by MarkWest and 50 percent by Antero Midstream and is supported by a long-term, fee-based agreement with Antero Resources. As part of this agreement, Antero Midstream has agreed to release to the joint venture its 195,000 gross acre processing dedication from Antero Resources, increasing the Marcellus Shale area dedication to MarkWest from approximately 167,000 gross operated acres to over 360,000 gross operated acres. The additional dedicated acreage includes Antero Resources' core Marcellus Shale position in Tyler, Wetzel, and Ritchie counties of West Virginia.

To support Antero Resources' significant production growth profile, the joint venture will expand processing infrastructure at its Sherwood Complex in Doddridge County, West Virginia. The Sherwood Complex began operations in October 2012 and has grown to become the single largest gas processing complex in the Northeast, currently with six cryogenic processing facilities totaling 1.2 billion cubic feet per day of capacity.

Ongoing development of gas processing infrastructure at the Sherwood Complex includes three new joint venture processing facilities, totaling 600 million cubic feet per day of incremental capacity for Antero Resources. The joint venture expects to commence operations of two of the new facilities during the first quarter and third quarter of 2017, and the third new facility during the first quarter of 2018. In addition to the three new processing facilities, the joint venture contemplates the development of up to another eight processing facilities to support Antero Resources, which would be located at both the Sherwood Complex and a new location in West Virginia.

MarkWest will continue to construct and operate all processing facilities installed to service Antero Resources' production and will also retain full ownership of the first six processing facilities at the Sherwood Complex.

In addition to the development of gas processing infrastructure, the joint venture will support the growth of Antero Resources' natural gas liquids (NGL) production with fractionation infrastructure at the Hopedale Complex in Harrison County, Ohio. The largest fractionation facility in the Marcellus and Utica shales, the Hopedale Complex currently has three units providing 180,000 barrels per day (bpd) of propane-plus fractionation capacity. The joint venture is investing in 20,000 bpd of existing fractionation capacity at the Hopedale Complex, and has an option to invest in future fractionation expansions at the complex subject to the production of incremental NGLs from the joint venture's processing facilities. MarkWest and its affiliates will continue to fully own and operate all NGL pipelines, rail and marketing infrastructure associated with the Hopedale Complex. In addition, MarkWest will continue to fully own and operate all fractionation facilities and related NGL infrastructure in the Marcellus Shale.

MarkWest will initially contribute existing assets to the joint venture consisting of the three processing facilities currently under construction at the Sherwood Complex, as well as associated infrastructure related to the operation of these facilities. Antero Midstream will initially contribute approximately $155 million for its allocated share of processing assets at the Sherwood Complex and ownership of fractionation capacity at the Hopedale Complex. Going forward, it is expected that MarkWest and Antero Midstream will each contribute 50 percent of the future capital investments for the joint venture.

"MPLX is excited to continue expanding our midstream operations on behalf of Antero Resources by partnering with Antero Midstream," commented MPLX President Don Templin. "This unique transaction further strengthens our long-term relationship with the largest producer in the Appalachian Basin and provides MPLX with substantial future organic growth opportunities."

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MPLX LP Announces Formation of Strategic Joint Venture with Antero Midstream Partners LP

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