MWP Markwest Hydrocarbon,

MarkWest Hydrocarbon Reports 2004 First Quarter Results DENVER, May 6 /PRNewswire-FirstCall/ -- MarkWest Hydrocarbon, Inc. today reported net income of $0.8 million, or $0.08 per diluted share, for the three months ended March 31, 2004, compared to a net loss of $1.0 million, or $0.11 per diluted share, for the first quarter of 2003. On April 22, 2004, the board of directors of MarkWest Hydrocarbon, Inc. declared the Company's first quarterly cash dividend of $0.025 per share of its common stock, which implies an annual dividend of $0.10 per share. The board of directors declared that the dividend is to be paid on May 19, 2004, to the stockholders of record as of the close of business on May 5, 2004. The ex-dividend date is May 3, 2004. The Board announced that its objective is to maintain a regular quarterly dividend, but that any such future declaration will be dependent upon the financial performance of the Company. First quarter results primarily benefited from two events. First, the full-quarter contributions from MarkWest Energy Partners, L.P.'s 2003 acquisitions increased income from continuing operations by approximately $2.4 million relative to first quarter 2003. MarkWest Energy Partners, L.P. (AMEX:MWE) is our consolidated subsidiary. First quarter 2003 did not include any financial impact from MarkWest Energy Partners' 2003 acquisitions except for approximately $50,000, which represents four days of results from its March 28, 2003, Pinnacle acquisition. Second, healthier margins from our marketing business, primarily due to a favorable pricing environment and a reduction in hedging losses, accounted for an approximate $7.0 million increase in income from continuing operations. These increases were offset by increases in selling, general and administrative expenses due to the significant growth of MarkWest Energy Partners. Frank Semple, President and CEO, said, "We are pleased with our first quarter results. Our strong financial performance reflects the continued growth of MarkWest Energy Partners and improving margins from our marketing business. Because of the increased cash flow and strong consolidated balance sheet, we felt now was the appropriate time to establish the first quarterly dividend in our company's history." MarkWest Hydrocarbon, Inc. (AMEX:MWP) controls and operates MarkWest Energy Partners, L.P. (AMEX: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. 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, 2003, as filed with the SEC. MarkWest Hydrocarbon, Inc. Financial and Operating Statistics (in thousands except per share amounts and operating statistics) Three Months Ended March 31, 2004 2003 % Change Statement of Operations Data Revenues (1) $93,426 $50,651 84% Net income (loss) $797 $(1,042) NM Basic and diluted earnings (loss) per share $0.08 $(0.11) NM Weighted average shares outstanding (basic) 9,615 9,362 -- Operating Data Marketing NGL product sales (gallons) 51,525,000 53,987,000 (5%) MarkWest Energy Partners Appalachia: Natural gas processed (Mcf/d) (2) 207,000 203,000 2% NGLs fractionated (gal/day) 462,000 446,000 4% Michigan: Gas volumes transported (Mcf/d) 13,900 15,400 (10%) NGL product sales (gallons) 2,700,000 2,900,000 (7%) Crude oil transported (barrels/day) (3) 14,600 -- NA Southwest: Gathering system throughput (Mcf/d) (4) 97,800 NM NM Lateral pipeline throughput volumes (Mcf/d) (5) 28,900 -- NA NGL product sales (gallons) (6) 8,200,000 -- NA March 31, 2004 December 31, 2003 March 31, 2003 Consolidated Balance Sheet Data Total assets $274,884 $280,713 $314,081 Total debt $84,200 $126,200 $105,824 Stockholders' equity $50,257 $52,184 $54,105 NA - Not applicable NM - Not meaningful (1) Exclusive of our discontinued exploration and production activities. (2) Includes throughput from the Kenova, Cobb and Boldman processing plants. (3) MarkWest Energy Partners acquired its Michigan Crude Pipeline in December 2003. (4) Includes volumes from MarkWest Energy Partners' Pinnacle gathering systems, which were acquired in late March 2003, and its Oklahoma gathering systems, which were acquired in December 2003. (5) Includes volumes from Power Tex Lateral pipeline (a/k/a the Lubbock Pipeline), which was acquired in September 2003. (6) Includes sales out of MarkWest Energy Partners' Arapaho processing plant, which was acquired in December 2003. MarkWest Hydrocarbon, Inc. Statement of Operations (in thousands of dollars except per share amounts) Three Months Three Months Ended Ended March 31, 2004 March 31, 2003 Statement of Operations Data Revenues $93,426 $50,651 Operating expenses: Purchased product costs 75,135 46,003 Facility expenses 5,975 4,362 Selling, general and administrative expenses 4,268 2,550 Depreciation 3,458 1,530 Total operating expenses 88,836 54,445 Income (loss) from operations 4,590 (3,794) Other income (expense): Interest expense, net (1,358) (1,063) Minority interest in net income of consolidated subsidiary (1,693) (874) Other income (expense) 62 (15) Income (loss) before income taxes 1,601 (5,746) Provision (benefit) for income taxes 627 (2,451) Income (loss) from continuing operations 974 (3,295) Income (loss) from discontinued exploration and production operations, net of tax (177) 2,282 Income (loss) before cumulative effect of accounting change 797 (1,013) Cumulative effect of accounting change, net of tax -- (29) Net income (loss) $797 $(1,042) Income (loss) from continuing operations per share: Basic $0.10 $(0.35) Diluted $0.10 $(0.35) Net income (loss) per share: $0.08 $(0.11) Basic $0.08 $(0.11) Diluted Weighted average number of outstanding shares of common stock: Basic 9,615 9,362 Diluted 9,632 9,365 MarkWest Hydrocarbon, Inc. Segment Operating Income and Reconciliation to Income (Loss) from Continuing Operations Before Taxes (in thousands of dollars) MarkWest Energy Eliminating Marketing Partners, L.P. Entries Total Three Months Ended March 31, 2004 Revenues $44,131 $63,813 $(14,518) $93,426 Segment operating expenses: Purchased product costs 35,851 47,500 (8,216) 75,135 Facility expenses 5,953 6,324 (6,302) 5,975 Depreciation 201 3,257 -- 3,458 Total segment operating expenses 42,005 57,081 (14,518) 84,568 Segment operating income (loss) $2,126 $6,732 $-- $8,858 Three Months Ended March 31, 2003 Revenues $46,619 $17,693 $(13,661) $50,651 Segment operating expenses: Purchased product costs 45,210 8,392 (7,599) 46,003 Facility expenses 6,087 4,337 (6,062) 4,362 Depreciation 185 1,345 -- 1,530 Total segment operating expenses 51,482 14,074 (13,661) 51,895 Segment operating income (loss) $(4,863) $3,619 $-- $(1,244) Reconciliation of Segment Operating Income (Loss) to Income (Loss) from Continuing Operations Before Taxes Three Months Three Months Ended Ended March 31, 2004 March 31, 2003 Total segment operating income $8,858 $(1,244) Selling, general and administrative expenses (4,268) (2,550) Interest expense, net (1,358) (1,063) Minority interest in net income of consolidated subsidiary (1,693) (874) Other income (expense) 62 (15) Income (loss) from continuing operations before taxes $1,601 $(5,746) DATASOURCE: MarkWest Hydrocarbon, Inc. CONTACT: Frank Semple, President and CEO, or Andy Schroeder, VP of Finance/Treasurer, both of MarkWest Hydrocarbon, Inc., +1-303-290-8700, Web site: http://www.markwest.com/

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