Supplemental Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2013

Supplemental Condensed Consolidating Financial Information

Condensed consolidating financial information for MarkWest Energy Partners and its combined guarantor and combined non-guarantor subsidiaries as of March 31, 2013 and December 31, 2012 and for the three months ended March 31, 2013 and 2012 is as follows (in thousands):

Condensed Consolidating Balance Sheets

	As of March 31, 2013
	Parent		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	306,135	$	179,257	$	168,778	$	—		$	654,170
Restricted cash	—		—		500		—			500
Receivables and other current assets	7,047		187,358		66,129		—			260,534
Intercompany receivables	1,126,396		13,379		34,199		(1,173,974		)	—
Fair value of derivative instruments	—		16,425		389		—			16,814
Total current assets	1,439,578		396,419		269,995		(1,173,974		)	932,018

Total property, plant and equipment, net	3,627		1,997,885		3,777,288		(86,853		)	5,691,947

Other long-term assets:
Restricted cash	—		—		10,000		—			10,000
Investment in unconsolidated affiliate	—		34,106		—		—			34,106
Investment in consolidated affiliates	4,196,579		3,082,173		—		(7,278,752		)	—
Intangibles, net of accumulated amortization	—		548,345		291,981		—			840,326
Fair value of derivative instruments	—		9,729		452		—			10,181
Intercompany notes receivable	225,000		—		—		(225,000		)	—
Other long-term assets	56,721		69,906		75,349		—			201,976
Total assets	$	5,921,505	$	6,138,563	$	4,425,065	$	(8,764,579	)	$	7,720,554

LIABILITIES AND EQUITY
Current liabilities:
Intercompany payables	$	1,281	$	1,157,146	$	15,547	$	(1,173,974	)	$	—
Fair value of derivative instruments	—		23,020		40		—			23,060
Other current liabilities	47,129		172,350		518,010		(1,950		)	735,539
Total current liabilities	48,410		1,352,516		533,597		(1,175,924		)	758,599

Deferred income taxes	2,749		208,342		—		—			211,091
Long-term intercompany financing payable	—		225,000		99,082		(324,082		)	—
Fair value of derivative instruments	—		23,862		76		—			23,938
Long-term debt, net of discounts	3,022,521		—		—		—			3,022,521
Other long-term liabilities	2,868		132,264		2,724		—			137,856

Redeemable non-controlling interest	—		—		—		326,249			326,249

Equity:
Common units	2,092,426		4,196,579		3,789,586		(7,971,986		)	2,106,605
Class B units	752,531		—		—		—			752,531
Non-controlling interest in consolidated subsidiaries	—		—		—		381,164			381,164
Total equity	2,844,957		4,196,579		3,789,586		(7,590,822		)	3,240,300
Total liabilities and equity	$	5,921,505	$	6,138,563	$	4,425,065	$	(8,764,579	)	$	7,720,554

	As of December 31, 2012
	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	210,015	$	102,979	$	34,905	$	—		$	347,899
Restricted cash	—		—		25,500		—			25,500
Receivables and other current assets	9,191		178,517		76,028		—			263,736
Intercompany receivables	812,562		18,868		32,656		(864,086		)	—
Fair value of derivative instruments	—		18,389		1,115		—			19,504
Total current assets	1,031,768		318,753		170,204		(864,086		)	656,639
Total property, plant and equipment, net	3,542		1,999,474		3,168,131		(95,519		)	5,075,628
Other long-term assets:
Restricted cash	—		—		10,000		—			10,000
Investment in unconsolidated affiliate	—		31,179		—		—			31,179
Investment in consolidated affiliates	4,141,782		2,790,994		—		(6,932,776		)	—
Intangibles, net of accumulated amortization	—		559,320		295,835		—			855,155
Fair value of derivative instruments	—		10,878		—		—			10,878
Intercompany notes receivable	225,000		—		—		(225,000		)	—
Other long-term assets	50,866		70,009		75,362		—			196,237
Total assets	$	5,452,958	$	5,780,607	$	3,719,532	$	(8,117,381	)	$	6,835,716
LIABILITIES AND EQUITY
Current liabilities:
Intercompany payables	$	461	$	839,543	$	24,082	$	(864,086	)	$	—
Fair value of derivative instruments	—		27,062		167		—			27,229
Other current liabilities	42,301		197,934		473,654		(1,892		)	711,997
Total current liabilities	42,762		1,064,539		497,903		(865,978		)	739,226
Deferred income taxes	2,906		188,412		—		—			191,318
Long-term intercompany financing payable	—		225,000		99,592		(324,592		)	—
Fair value of derivative instruments	—		32,190		—		—			32,190
Long-term debt, net of discounts	2,523,051		—		—		—			2,523,051
Other long-term liabilities	2,959		128,684		2,697		—			134,340
Equity:
Common Units	2,128,749		4,141,782		3,119,340		(7,255,157		)	2,134,714
Class B Units	752,531		—		—		—			752,531
Non-controlling interest in consolidated subsidiaries	—		—		—		328,346			328,346
Total equity	2,881,280		4,141,782		3,119,340		(6,926,811		)	3,215,591
Total liabilities and equity	$	5,452,958	$	5,780,607	$	3,719,532	$	(8,117,381	)	$	6,835,716

Condensed Consolidating Statements of Operations

Condensed Consolidating Statements of Operations

	Three months ended March 31, 2013
	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Total revenue	$	—		$	270,968		$	112,422		$	(7,438	)	$	375,952
Operating expenses:
Purchased product costs	—			122,950			18,903			—			141,853
Facility expenses	—			32,278			27,336			(191		)	59,423
Selling, general and administrative expenses	12,034			6,973			7,454			(1,053		)	25,408
Depreciation and amortization	277			44,053			41,584			(1,487		)	84,427
Other operating expenses (income)	—			765			(274		)	—			491
Total operating expenses	12,311			207,019			95,003			(2,731		)	311,602

(Loss) income from operations	(12,311		)	63,949			17,419			(4,707		)	64,350

Earnings from consolidated affiliates	69,961			19,438			—			(89,399		)	—
Loss on redemption of debt	(38,455		)	—			—			—			(38,455		)
Other expense, net	(43,000		)	(6,736		)	(3,285		)	12,919			(40,102		)
(Loss) income before provision for income tax	(23,805		)	76,651			14,134			(81,187		)	(14,207		)
Provision for income tax (benefit) expense	(133		)	6,690			—			—			6,557
Net (loss) income	(23,672		)	69,961			14,134			(81,187		)	(20,764		)
Net income attributable to non-controlling interest	—			—			—			5,304			5,304
Net (loss) income attributable to the Partnership’s unitholders	$	(23,672	)	$	69,961		$	14,134		$	(75,883	)	$	(15,460	)

	Three months ended March 31, 2012
	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Total revenue	$	—		$	271,071		$	79,395		$	—		$	350,466
Operating expenses:
Purchased product costs	—			148,601			24,754			—			173,355
Facility expenses	—			33,936			13,334			(176		)	47,094
Selling, general and administrative expenses	14,417			9,048			3,131			(1,372		)	25,224
Depreciation and amortization	164			39,293			12,911			(238		)	52,130
Other operating expenses	—			1,111			113			—			1,224
Total operating expenses	14,581			231,989			54,243			(1,786		)	299,027

(Loss) income from operations	(14,581		)	39,082			25,152			1,786			51,439

Earnings from consolidated affiliates	56,431			24,234			—			(80,665		)	—
Other expense, net	(23,344		)	(2,406		)	(665		)	(4,206		)	(30,621		)
Income before provision for income tax	18,506			60,910			24,487			(83,085		)	20,818
Provision for income tax expense	66			4,479			—			—			4,545
Net (loss) income	18,440			56,431			24,487			(83,085		)	16,273
Net income attributable to non-controlling interest	—			—			—			(253		)	(253		)
Net income attributable to the Partnership’s unitholders	$	18,440		$	56,431		$	24,487		$	(83,338	)	$	16,020

Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows

	Three months ended March 31, 2013
	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net cash (used in) provided by operating activities	$	(44,484	)	$	71,711		$	51,091		$	6,725		$	85,043

Cash flows from investing activities:
Restricted cash	—			—			25,000			—			25,000
Capital expenditures	(340		)	(31,398		)	(592,643		)	(7,177		)	(631,558		)
Equity investments in consolidated affiliates	(14,828		)	(407,300		)	—			422,128			—
Investment in unconsolidated affiliate	—			(3,012		)	—			—			(3,012		)
Distributions from consolidated affiliates	20,552			140,968			—			(161,520		)	—
Proceeds from disposal of property, plant and equipment	—			35			174			—			209
Net cash flows provided by (used in) investing activities	5,384			(300,707		)	(567,469		)	253,431			(609,361		)

Cash flows from financing activities:
Proceeds from public equity offerings, net	103,937			—			—			—			103,937
Proceeds from long-term debt	1,000,000			—			—			—			1,000,000
Payments of long-term debt	(501,112		)	—			—			—			(501,112		)
Payments of premiums on redemption of long-term debt	(31,516		)	—			—			—			(31,516		)
Payments for debt issue costs and deferred financing costs	(14,046		)	—			—			—			(14,046		)
Payments related to intercompany financing, net	—			—			(452		)	452			—
Contributions from parent and affiliates	—			14,828			407,300			(422,128		)	—
Contribution from non-controlling interest	—			—			385,219			—			385,219
Share-based payment activity	(5,206		)	651			—			—			(4,555		)
Payment of distributions	(105,945		)	(20,552		)	(141,816		)	161,520			(106,793		)
Payments of SMR liability	—			(545		)	—			—			(545		)
Intercompany advances, net	(310,892		)	310,892			—			—			—
Net cash flows provided by financing activities	135,220			305,274			650,251			(260,156		)	830,589

Net increase in cash	96,120			76,278			133,873			—			306,271
Cash and cash equivalents at beginning of year	210,015			102,979			34,905			—			347,899
Cash and cash equivalents at end of period	$	306,135		$	179,257		$	168,778		$	—		$	654,170

	Three months ended March 31, 2012
	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net cash (used in) provided by operating activities	$	(27,744	)	$	149,912		$	88,402		$	(2,657	)	$	207,913

Cash flows from investing activities:
Restricted cash	—			—			1,003			—			1,003
Capital expenditures	(68		)	(91,090		)	(166,976		)	3,871			(254,263		)
Equity investments	(13,230		)	(66,356		)	—			79,586			—
Distributions from consolidated affiliates	16,496			2,139			—			(18,635		)	—
Collections of intercompany notes, net	51,400			—			—			(51,400		)	—
Proceeds from disposal of property, plant and equipment	—			1,505			—			(1,214		)	291
Net cash flows provided by (used in) investing activities	54,598			(153,802		)	(165,973		)	12,208			(252,969		)

Cash flows from financing activities:
Proceeds from public equity offering, net	425,629			—			—			—			425,629
Proceeds from Credit Facility	13,700			—			—			—			13,700
Payments of Credit Facility	(79,700		)	—			—			—			(79,700		)
Payments related to intercompany financing, net	—			(51,400		)	—			51,400			—
Contributions from parent and affiliates	—			13,230			66,356			(79,586		)	—
Contributions from non-controlling interest	—			—			755			—			755
Share-based payment activity	(8,048		)	2,207			—			—			(5,841		)
Payment of distributions	(73,410		)	(16,496		)	(4,101		)	18,635			(75,372		)
Payments of SMR liability	—			(497		)	—			—			(497		)
Intercompany advances, net	(35,025		)	35,025			—			—			—
Net cash flows provided by (used in) financing activities	243,146			(17,931		)	63,010			(9,551		)	278,674

Net increase (decrease) in cash	270,000			(21,821		)	(14,561		)	—			233,618
Cash and cash equivalents at beginning of year	22			99,580			17,414			—			117,016
Cash and cash equivalents at end of period	$	270,022		$	77,759		$	2,853		$	—		$	350,634