MWP Markwest Hydrocarbon,

MarkWest Hydrocarbon, Inc. (AMEX: MWP) (the �Company�) today reported a net loss of $7.3 million for the three months ended June 30, 2007, or $0.61 per diluted share, compared to a net loss of $2.1 million, or $0.18 per diluted share, for the same period in 2006. For the six months ended June 30, 2007, the Company reported a net loss of $6.3 million compared to net income of $0.7 million for the six months ended June 30, 2006. Excluding the non-cash items described below, income (loss) from operations for the Standalone segment (as defined below) for the three months ended June 30, 2007 and June 30, 2006, was $0.3 million and $(0.1) million, respectively. The reported loss from operations for the Standalone segment for the three months ended June 30, 2007 and June 30, 2006, was $13.8 million and $5.7 million, respectively, and included $14.1 million and $5.6 million, respectively, of non-cash costs associated with the mark-to-market of derivative instruments, the revaluation of the long-term shrink obligation, and non-cash compensation expense. The Company will receive $8.8 million of distributions from its investment in MarkWest Energy Partners for the second quarter of 2007, which represents a 54 percent increase over $5.7 million of distributions received for the second quarter of 2006. In part as a result of these increased distributions, the Company declared a quarterly cash dividend of $0.36 per share of common stock, for an implied annual rate of $1.44 per share, which is payable August 21, 2007, to shareholders of record as of August 9, 2007. This quarterly cash dividend represents an increase of $0.04 per share, or 13 percent, over the cash dividend in the first quarter of 2007 and in increase of $0.12 per share, or 50 percent, over the cash dividend in the second quarter of 2006. �We are pleased with our operating performance and consistent growth in cash dividends,� said Frank Semple, President and Chief Executive Officer. �Our financial performance in the first half of 2007 resulted from MarkWest Energy Partners� distribution growth as well as consistent strong operating cash flow performance from our natural gas liquid marketing business. Cash distributions from our investment in the Partnership were nearly $9 million for the second quarter, a substantial increase over the distributions for the second quarter of 2006, and the Partnership is well positioned for future distribution growth which will benefit the MarkWest Hydrocarbon shareholders.� �The frac spread environment remains strong and we continue to take advantage of the forward markets to lock in favorable long-term frac spread margins through the first quarter of 2010.� The Company reports its operations under two business segments, MarkWest Hydrocarbon Standalone (�Standalone�) and MarkWest Energy Partners (the �Partnership�). The Standalone business segment consists of the Company�s natural gas liquid (�NGL�) marketing activities for NGL�s extracted primarily at MarkWest Energy Partners� Siloam facility and the management of keep-whole contracts in Appalachia. SECOND QUARTER 2007 HIGHLIGHTS For the three months ended June 30, 2007, the Standalone segment reported a loss from operations of $13.8 million, compared to a loss from operations of $5.7 million for the same period in 2006. The variance was primarily attributable to: The realized frac spread of $0.43 per gallon in the second quarter of 2007 versus $0.42 per gallon in the same period in 2006, combined with a reduction in facility expenses, resulted in a positive impact on segment operating income of $0.4 million. As further described below, this positive impact was offset by the mark-to-market of derivative instruments, the revaluation of the long-term shrink obligation, and an increase in selling, general and administrative expenses. The Standalone segment reported a net unrealized loss of $11.0 million for the mark-to-market of derivative instruments and the revaluation of the long-term shrink obligation, both of which are non-cash items. This compares to a net unrealized loss of $4.6 million for the same items in the second quarter of 2006, resulting in a negative quarter over quarter variance of $6.4 million. In addition, selling, general and administrative expense increased quarter over quarter by $2.3 million, of which $2.2 million is attributable to higher non-cash compensation expense. For the Partnership segment, the Company�s share of net income attributable to the Partnership, net of the eliminating entry for non-controlling interest in net income of a consolidated subsidiary, was $2.8 million in the second quarter of 2007, down from $3.4 million in the second quarter of 2006. The decrease is primarily a result of higher non-cash costs associated with the mark-to-market of derivative instruments and non-cash compensation expense. The Company will receive $8.8 million of distributions for the second quarter of 2007, which represents a 54 percent increase over $5.7 million of distributions received for the second quarter of 2006. The Company will host a conference call and webcast on Tuesday, August 14, 2007, at 5:00 P.M. ET to review its second quarter 2007 financial results. Interested parties can participate in the call by dialing (888)�324-4145, passcode �MarkWest�, approximately ten minutes prior to the scheduled start time. A replay of the call will be available through Tuesday, August 21, 2007 by dialing (866)�393-0878, no passcode required. To access the webcast, please visit the Investor Relations section of our website at www.markwest.com. MarkWest Hydrocarbon, Inc. (AMEX: MWP) controls and operates MarkWest Energy Partners, L.P. (NYSE: MWE), a publicly traded limited partnership engaged in the gathering, processing and transmission of natural gas; the transportation, fractionation and storage of natural gas liquids; and the gathering and transportation of crude oil. We also market natural gas and NGLs. 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. All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Actual results could vary significantly from those expressed or implied in such statements and are subject to a number of risks and uncertainties. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. The forward-looking statements involve risks and uncertainties that affect our operations, financial performance and other factors as discussed in our filings with the Securities and Exchange Commission. Among the factors that could cause results to differ materially are those risks discussed in our Form 10-K for the year ended December 31, 2006 as filed with the SEC. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading �Risk Factors.� We do not undertake any duty to update any forward-looking statement. MarkWest Hydrocarbon, Inc. Statement of Operations (Unaudited, in thousands, except per share amounts) � Three months ended June 30, Six months ended June 30, 2007 � 2006 � 2007 � 2006 � � Revenue: Revenue $ 176,893 $ 186,351 $ 352,290 $ 427,470 Derivative loss (13,913 ) � (13,057 ) � (27,822 ) � (14,316 ) Total revenue 162,980 � 173,294 � 324,468 � 413,154 � � Operating expenses: Purchased product costs 109,507 116,523 213,714 298,151 Facility expenses 18,415 14,313 30,477 27,795 Selling, general and administrative expenses 18,820 13,061 39,535 24,437 Depreciation 9,325 7,778 17,499 15,156 Amortization of intangible assets 4,168 4,027 8,336 8,043 Accretion of asset retirement obligations 28 � 26 � 55 � 51 � Total operating expenses 160,263 � 155,728 � 309,616 � 373,633 � � Income from operations 2,717 17,566 14,852 39,521 � Other income (expense): Earnings from unconsolidated affiliates 1,656 1,228 3,423 2,173 Interest income 1,124 436 3,520 842 Interest expense (9,054 ) (10,798 ) (18,468 ) (21,842 ) Amortization of deferred financing costs and original issue discount (a component of interest expense) (731 ) (859 ) (1,451 ) (1,684 ) Dividend income 217 109 339 215 Miscellaneous (expense) income (534 ) 1,517 � (1,406 ) 3,759 � (Loss) income before non-controlling interest in net income of consolidated subsidiary and income taxes (4,605 ) 9,199 809 22,984 Non-controlling interest in net income of consolidated subsidiary (5,562 ) (11,273 ) (9,522 ) (21,817 ) (Loss) income before taxes (10,167 ) (2,074 ) (8,713 ) 1,167 Provision for income tax benefit (expense) 2,895 � (58 ) 2,398 � (467 ) Net (loss) income $ (7,272 ) $ (2,132 ) $ (6,315 ) $ 700 � � Net (loss) income per share: Basic $ (0.61 ) $ (0.18 ) $ (0.53 ) $ 0.06 � Diluted $ (0.61 ) $ (0.18 ) $ (0.53 ) $ 0.06 � � Weighted average number of outstanding shares of common stock: Basic 11,996 � 11,936 � 11,991 � 11,921 � Diluted 11,996 � 11,936 � 11,991 � 12,046 � MarkWest Hydrocarbon, Inc. Segment Income (Loss) (Unaudited, in thousands) � MarkWest Hydrocarbon Standalone MarkWest Energy Partners Consolidating Entries Total Three months ended June 30, 2007: Revenue: Revenue $ 52,159 $ 144,026 $ (19,292 ) $ 176,893 Derivative loss (6,550 ) (7,363 ) - � (13,913 ) Total revenue 45,609 136,663 (19,292 ) 162,980 � Purchased product costs 48,706 74,213 (13,412 ) 109,507 Facility expenses 4,206 20,303 (6,094 ) 18,415 Selling, general and administrative expenses 6,345 12,475 - 18,820 Depreciation 198 9,127 - 9,325 Amortization of intangible assets - 4,168 - 4,168 Accretion of asset retirement and lease obligations - � 28 � - � 28 � (Loss) income from operations (13,846 ) 16,349 214 2,717 � Other income (expense): � � � Earnings from unconsolidated affiliates - 1,656 - 1,656 Interest income 645 479 - 1,124 Interest expense (63 ) (8,991 ) - (9,054 ) Amortization of deferred financing costs (a component of interest expense) (70 ) (661 ) - (731 ) Dividend income 136 81 - 217 Miscellaneous expense (2 ) (532 ) - � (534 ) (Loss) income before non-controlling interest in net income of consolidated subsidiary and income taxes (13,200 ) 8,381 214 (4,605 ) Non-controlling interest in net income of consolidated subsidiary - - (5,562 ) (5,562 ) Interest in net income of consolidated subsidiary 2,800 � - � (2,800 ) - � (Loss) income before taxes (10,400 ) 8,381 (8,148 ) (10,167 ) Provision for income tax benefit (expense) 2,914 � (106 ) 87 � 2,895 � Net (loss) income $ (7,486 ) $ 8,275 � $ (8,061 ) $ (7,272 ) � MarkWest Hydrocarbon Standalone MarkWest Energy Partners Consolidating Entries Total Three months ended June 30, 2006: Revenue: Revenue $ 62,189 $ 142,041 $ (17,879 ) $ 186,351 Derivative loss (6,156 ) (6,901 ) - � (13,057 ) Total revenue 56,033 135,140 (17,879 ) 173,294 � Purchased product costs 52,205 76,244 (11,926 ) 116,523 Facility expenses 5,106 15,160 (5,953 ) 14,313 Selling, general and administrative expenses 4,073 8,988 - 13,061 Depreciation 394 7,384 - 7,778 Amortization of intangible assets - 4,027 - 4,027 Accretion of asset retirement and lease obligations - � 26 � - � 26 � (Loss) income from operations (5,745 ) 23,311 - 17,566 � Other income (expense): Earnings from unconsolidated affiliates - 1,228 - 1,228 Interest income 177 259 - 436 Interest expense (84 ) (10,714 ) - (10,798 ) Amortization of deferred financing costs (a component of interest expense) (33 ) (826 ) - (859 ) Dividend income 109 - - 109 Miscellaneous income 2 � 1,515 � - � 1,517 � (Loss) income before non-controlling interest in net income of consolidated subsidiary and income taxes (5,574 ) 14,773 - 9,199 Non-controlling interest in net income of consolidated subsidiary - - (11,273 ) (11,273 ) Interest in net income of consolidated subsidiary 3,364 � - � (3,364 ) - � (Loss) income before taxes (2,210 ) 14,773 (14,637 ) (2,074 ) Provision for income tax benefit (expense) 78 � (679 ) 543 � (58 ) Net (loss) income $ (2,132 ) $ 14,094 � $ (14,094 ) $ (2,132 ) MarkWest Hydrocarbon, Inc. Segment Income (Loss) (Unaudited, in thousands) � MarkWest Hydrocarbon Standalone MarkWest Energy Partners Consolidating Entries Total Six months ended June 30, 2007: Revenue: Revenue $ 125,085 $ 265,572 $ (38,367 ) $ 352,290 Derivative loss (13,530 ) (14,292 ) - � (27,822 ) Total revenue 111,555 251,280 (38,367 ) 324,468 � Purchased product costs 101,520 138,218 (26,024 ) 213,714 Facility expenses 9,775 33,259 (12,557 ) 30,477 Selling, general and administrative expenses 13,218 26,317 - 39,535 Depreciation 586 16,913 - 17,499 Amortization of intangible assets - 8,336 - 8,336 Accretion of asset retirement and lease obligations - � 55 � - � 55 � (Loss) income from operations (13,544 ) 28,182 214 14,852 � Other income (expense): Earnings from unconsolidated affiliates - 3,423 - 3,423 Interest income 1,121 2,399 - 3,520 Interest expense (122 ) (18,346 ) - (18,468 ) Amortization of deferred financing costs (a component of interest expense) (129 ) (1,322 ) - (1,451 ) Dividend income 258 81 - 339 Miscellaneous expense (145 ) (1,261 ) - � (1,406 ) (Loss) income before non-controlling interest in net income of consolidated subsidiary and income taxes (12,561 ) 13,156 214 809 Non-controlling interest in net income of consolidated subsidiary - - (9,522 ) (9,522 ) Interest in net income of consolidated subsidiary 3,612 � - � (3,612 ) - � (Loss) income before taxes (8,949 ) 13,156 (12,920 ) (8,713 ) Provision for income tax benefit (expense) 2,420 � (125 ) 103 � 2,398 � Net (loss) income $ (6,529 ) $ 13,031 � $ (12,817 ) $ (6,315 ) � MarkWest Hydrocarbon Standalone MarkWest Energy Partners Consolidating Entries Total Six months ended June 30, 2006: Revenue: Revenue $ 164,281 $ 298,783 $ (35,594 ) $ 427,470 Derivative loss (7,655 ) (6,661 ) - � (14,316 ) Total revenue 156,626 292,122 (35,594 ) 413,154 � Purchased product costs 144,527 177,205 (23,581 ) 298,151 Facility expenses 10,579 29,229 (12,013 ) 27,795 Selling, general and administrative expenses 7,111 17,326 - 24,437 Depreciation 599 14,557 - 15,156 Amortization of intangible assets - 8,043 - 8,043 Accretion of asset retirement and lease obligations - � 51 � - � 51 � (Loss) income from operations (6,190 ) 45,711 - 39,521 � Other income (expense): Earnings from unconsolidated affiliates - 2,173 - 2,173 Interest income 363 479 - 842 Interest expense (152 ) (21,690 ) - (21,842 ) Amortization of deferred financing costs (a component of interest expense) (50 ) (1,634 ) - (1,684 ) Dividend income 215 - - 215 Miscellaneous income 152 � 3,607 � - � 3,759 � (Loss) income before non-controlling interest in net income of consolidated subsidiary and income taxes (5,662 ) 28,646 - 22,984 Non-controlling interest in net income of consolidated subsidiary - - (21,817 ) (21,817 ) Interest in net income of consolidated subsidiary 6,693 � - � (6,693 ) - � Income (loss) before taxes 1,031 28,646 (28,510 ) 1,167 Provision for income tax (expense) benefit (331 ) (679 ) 543 � (467 ) Net income $ 700 � $ 27,967 � $ (27,967 ) $ 700 � MarkWest Hydrocarbon, Inc. Segment Balance Sheet (Unaudited, in thousands) � June 30, 2007 MarkWest Hydrocarbon Standalone MarkWest Energy Partners Consolidating Entries Total ASSETS Current assets: Cash and cash equivalents $ 7,503 $ 32,406 $ - $ 39,909 Trading securities 15,806 - - 15,806 Available for sale securities 9,170 - - 9,170 Receivables 14,808 118,520 (6,880 ) 126,448 Inventories 33,492 2,853 - 36,345 Fair value of derivative instruments 2,009 1,514 - 3,523 Other current assets 19,710 6,574 - � 26,284 Total current assets 102,498 161,867 (6,880 ) 257,485 � Property, plant and equipment, net 4,450 703,862 - 708,312 Investment in and advances to other equity investee - 61,474 - 61,474 Investment in consolidated subsidiaries 11,101 - (11,101 ) - Fair value of derivative instruments 3,840 656 - 4,496 Deferred tax asset 4,000 - - 4,000 Other long term assets 2,768 350,584 - � 353,352 Total assets $ 128,657 $ 1,278,443 $ (17,981 ) $ 1,389,119 � LIABILITIES AND STOCKHOLDERS� EQUITY Current liabilities: Accounts payable and accrued liabilities $ 28,096 $ 165,445 $ (6,880 ) $ 186,661 Fair value of derivative instruments 13,333 5,291 - 18,624 Deferred tax liability 732 - - � 732 Total current liabilities 42,161 170,736 (6,880 ) 206,017 � Long-term debt - 529,030 - 529,030 Deferred tax liability 476 769 (641 ) 604 Non-controlling interest in consolidated subsidiary 965 - 556,358 557,323 Fair value of derivative instruments 13,129 9,084 - 22,213 Other long-term liabilities 42,793 2,006 - � 44,799 Total liabilities 99,524 711,625 548,837 � 1,359,986 � Total stockholders� equity 29,133 566,818 (566,818 ) 29,133 Total liabilities and stockholders� equity $ 128,657 $ 1,278,443 $ (17,981 ) $ 1,389,119 MarkWest Hydrocarbon, Inc. Segment Balance Sheet (Unaudited, in thousands) � December 31, 2006 MarkWest Hydrocarbon Standalone MarkWest Energy Partners Consolidating Entries Total ASSETS Current assets: Cash and cash equivalents $ 14,442 $ 34,402 $ - $ 48,844 Marketable securities 7,713 - - 7,713 Receivables 16,940 90,780 (6,604) 101,116 Inventories 31,668 3,593 - 35,261 Fair value of derivative instruments 5,727 4,211 - 9,938 Other current assets 12,217 3,047 - 15,264 Total current assets 88,707 136,033 (6,604) 218,136 � Property, plant and equipment, net 3,449 550,886 - 554,335 Investment in and advances to other equity investee - 64,240 - 64,240 Investment in consolidated subsidiaries 12,683 - (12,683) - Fair value of derivative instruments 35 2,759 - 2,794 Other long term assets 2,874 360,862 - 363,736 Total assets $ 107,748 $ 1,114,780 $ (19,287) $ 1,203,241 � LIABILITIES AND STOCKHOLDERS� EQUITY Current liabilities: Accounts payable and accrued liabilities $ 19,370 $ 131,684 $ (6,604) $ 144,450 Fair value of derivative instruments 7,385 91 - 7,476 Deferred tax liability 180 - - 180 Current portion of long term debt - - - - Total current liabilities 26,935 131,775 (6,604) 152,106 � Long-term debt - 526,865 - 526,865 Deferred tax liability and FIN 48 liability 9,425 769 (641) 9,553 Non-controlling interest in consolidated subsidiary 965 - 440,607 441,572 Fair value of derivative instruments 98 1,362 - 1,460 Other long-term liabilities 28,836 1,360 - 30,196 Total liabilities 66,259 662,131 433,362 1,161,752 � Total stockholders� equity 41,489 452,649 (452,649) 41,489 Total liabilities and stockholders� equity $ 107,748 $ 1,114,780 $ (19,287) $ 1,203,241 MarkWest Hydrocarbon, Inc. Operating Statistics � Three months ended June 30, Six months ended June 30, 2007 2006 2007 2006 MarkWest Hydrocarbon Standalone: Marketing Hydrocarbon frac spread sales (gallons) 17,605,000 19,027,000 68,681,000 58,511,000 Maytown sales (gallons) 10,639,000 10,468,000 22,047,000 20,951,000 Total NGL product sales (gallons)(1) 28,244,000 29,495,000 90,728,000 79,462,000 � Wholesale NGL product sales (gallons)(2) N/A 7,867,000 N/A 35,063,000 � MarkWest Energy Partners: East Texas: Gathering systems throughput (Mcf/d) 407,000 375,000 404,000 360,000 NGL product sales (gallons) 44,486,000 40,461,000 86,274,000 75,897,000 � Oklahoma : Foss Lake gathering system throughput (Mcf/d) 103,700 84,500 99,400 86,100 Woodford gathering system throughput (Mcf/d) (3) 102,800 N/A 76,900 N/A Grimes gathering system throughput (Mcf/d) (4) 11,200 N/A 11,900 N/A Arapaho NGL product sales (gallons) 22,233,000 19,615,000 42,758,000 38,032,000 � Other Southwest: Appleby gathering system throughput (Mcf/d) 58,000 33,600 53,400 33,600 Other gathering systems throughput (Mcf/d) 9,600 21,900 13,000 20,500 Lateral throughput volumes (Mcf/d) 68,100 93,600 59,200 71,500 � Appalachia: Natural gas processed (Mcf/d) 196,000 197,000 199,000 201,000 NGLs fractionated (Gal/d) 442,000 450,000 455,000 450,000 NGL product sales (gallons) 10,639,000 10,468,000 22,047,000 20,951,000 � Michigan: Natural gas throughput (Mcf/d) 6,100 5,800 6,100 5,200 NGL product sales (gallons) 1,065,000 1,394,000 2,190,000 2,843,000 Crude oil transported (Bbl/d) 14,200 14,900 14,200 14,600 � Gulf Coast: Refinery off-gas processed (Mcf/d) 102,000 130,000 115,000 125,000 Liquids fractionated (Bbl/d) 24,100 26,900 24,500 25,900 � � (1) Represents sales at the Siloam fractionator. � (2) Represents sales from our wholesale business. In December 2006 the Company terminated its wholesale agreement. � (3) The Partnership began construction and operation of the Woodford gathering system in late 2006. � (4) The Partnership acquired the Grimes gathering system in December 2006.