Magnum Hunter Resources Corp.’s midstream subsidiary recorded a new record throughput of 406,000 MMBtu, exiting 2014 above its anticipated rate of 400,000 MMBtu/d, the company said.
Eureka Hunter Pipeline LLC provides gathering services for Magnum and third-party Marcellus and Utica shale wells in Ohio and West Virginia. Throughput on the system jumped considerably from February 2014, when the company said it was gathering 171,634 MMBtu/d.
Magnum CEO Gary Evans said a combination of third party volumes and an increase in production from Magnum, which focused almost entirely on the Appalachian Basin last year, contributed to the gathering system's record throughput (see Shale Daily, Aug. 11, 2014). He added that volumes would likely hit 500,000 MMBtu/d by the end of this month, based on additional pads in the region that are expected to come online soon.
In September, Magnum said Morgan Stanley Infrastructure Inc. would become its business partner for Eureka after Morgan purchased ArcLight Capital Partners LLC's 41% equity interest in the subsidiary (see Shale Daily, Sept. 16, 2014). At the time, financial analysts said the partnership would likely help Magnum take Eureka public with a master limited partnership this year, which the company has said may happen in the next six months (see Shale Daily, Nov. 7, 2014).