1019756--3/21/2006--MARKWEST_HYDROCARBON

related topics

{gas, price, oil}

{cost, regulation, environmental}

{debt, indebtedness, cash}

{loss, insurance, financial}

{control, financial, internal}

{stock, price, operating}

{operation, natural, condition}

Our commodity derivative activities may reduce our earnings, profitability and cash flows. Our management has discretion in conducting our risk management activities and may not accurately predict future price fluctuations and therefore expose us to financial risks and reduce our opportunity to benefit from price increases. Changes in commodity prices subject us to margin calls, which may adversely affect our liquidity. The Partnership s substantial debt and other financial obligations could impair our financial condition, results of operations and cash flows and our ability to fulfill our debt obligations. A significant decrease in natural gas and refinery off-gas supplies in the Partnership s areas of operation due to the decline in production from existing wells, refinery operations, depressed commodity prices, reduced drilling activities or other factors otherwise could adversely affect our revenues and operating income and cash flow. We are exposed to the credit risk of our customers and counterparties, and a general increase in the nonpayment and nonperformance by our customers could reduce our revenues and cash flow. The Partnership may not be able to retain existing customers or acquire new customers, which would reduce its revenues and limit its future profitability. Relative changes in NGL product and natural gas prices may adversely impact our results due to frac spread, natural gas and liquids exposure. Through our interest in the Partnership, our profitability is affected by the volatility of NGL product and natural gas prices. We have found material weaknesses in our internal controls that require remediation and concluded, pursuant to Section 404 of the Sarbanes-Oxley Act of 2002, that our internal controls over financial reporting at December 31, 2005, were not effective. We are subject to operating and litigation risks that may not be covered by insurance. Transportation on certain of the Partnership s pipelines may be subject to federal or state rate and service regulation, and the imposition and/or cost of compliance with such regulation could adversely affect our profitability. The Partnership is indemnified for liabilities arising from an ongoing remediation of property on which its facilities are located and its results of operation and its ability to make payments of principal and interest on its debt could be adversely affected if the indemnifying party fails to perform its indemnification obligation. Our business is subject to federal, state and local laws and regulations with respect to environmental, safety and other regulatory matters, and the violation of or the cost of compliance with such laws and regulations could adversely affect our profitability. MarkWest Energy Partners may not be able to successfully execute its business plan and may not be able to grow its business, which could adversely affect the value of our investment in the limited partner units and the general partnership interests in MarkWest Energy Partners. Our cash flow would be adversely affected if operations at any of the Partnership s facilities were interrupted. Due to the Partnership s lack of asset diversification, adverse developments in the Partnership s gathering, processing, transportation, transmission, fractionation and storage businesses would reduce the Partnership s ability to make distributions to its unitholders.

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1019756--3/21/2006--MARKWEST_HYDROCARBON_INC