SemGroup to Sell Interest in Glass Mountain Pipeline for $300 Million
09 November 2017 - 10:55PM
SemGroup® Corporation (NYSE:SEMG) today announced that it has
reached an agreement to sell its 50 percent interest in Glass
Mountain Pipeline, LLC to an affiliate of BlackRock Inc.’s Global
Energy and Power Infrastructure Fund (“GEPIF”) in partnership with
Navigator Energy Services for $300 million.
“This accretive transaction is the first step of our capital
raise plan that is associated with the funding of the second
payment for the acquisition of Houston Fuel Oil Terminal Company,”
said SemGroup President and Chief Executive Officer Carlin Conner.
“During the past year SemGroup has made significant strides on our
strategy to de-risk our portfolio by capturing downstream,
refinery-facing growth on the Gulf Coast while also leveraging our
positions in the Mid-Continent and in Canada.”
Glass Mountain Pipeline, LLC is a joint venture owned equally
between SemGroup Corporation and NGL Energy Partners LP. SemGroup
subsidiary Rose Rock Midstream serves as the pipeline operator.
“We are very excited to build upon the foundation that SemGroup
and NGL Energy Partners have successfully established in Glass
Mountain,” said Matt Vining, CEO of Navigator Energy
Services. “Glass Mountain represents a unique opportunity to
enter an exciting resource play and continue SemGroup’s
customer-focused approach to providing safe crude oil midstream
services in this region. We look forward to engaging with our new
customers and commercial partners as we embark on a new phase of
growth.”
“By partnering with Navigator Energy Services in the acquisition
of Glass Mountain, we look forward to delivering our clients a very
attractive midstream investment opportunity,” said Mark Saxe,
Managing Director in BlackRock’s Global Energy & Power
Infrastructure group. “As a leading global energy
infrastructure investor, our deep industry experience and technical
expertise will enable us to bring strategic and operational
insights essential to take the assets on to the next phase of their
life cycle.”
Glass Mountain Pipeline, LLC owns the Glass Mountain Pipeline
system. The current pipeline is 215-miles long and delivers crude
oil from the Mississippi Lime and Granite Wash plays to Cushing,
Okla. Construction on a 44-mile pipeline extension of the pipeline
is expected to be complete by year-end 2017 and operational by
first quarter 2018. The extension will deliver crude oil from
north-central Oklahoma’s STACK/Merge resource play to Cushing. Once
the STACK extension is completed, the system would include pipeline
capacity of approximately 210,000 barrels of oil per day and
approximately 1.8 million barrels of storage, including 1.0 million
barrels located in Cushing, Oklahoma.
The Glass Mountain sale is expected to close in the fourth
quarter of 2017, subject to the receipt of certain governmental
approvals and the satisfaction of other customary closing
conditions.
About SemGroup Based in Tulsa, Okla., SemGroup®
Corporation (NYSE:SEMG) is a publicly traded midstream service
company providing the energy industry the means to move products
from the wellhead to the wholesale marketplace. SemGroup provides
diversified services for end-users and consumers of crude oil,
natural gas, natural gas liquids, refined products, residual fuel
oil and asphalt. Services include purchasing, selling, processing,
transporting, terminalling and storing energy.
SemGroup uses its Investor Relations website and social media
outlets as channels of distribution of material company
information. Such information is routinely posted and accessible on
our Investor Relations website at www.semgroupcorp.com, our Twitter
account and LinkedIn account.
Forward-Looking StatementsCertain matters
contained in this Press Release include “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. We make these forward-looking statements in
reliance on the safe harbor protections provided under the Private
Securities Litigation Reform Act of 1995.
All statements, other than statements of historical fact,
included in this Press Release may constitute forward-looking
statements. Although we believe that the expectations reflected in
these forward-looking statements are reasonable, we cannot assure
you that these expectations will prove to be correct. These
forward-looking statements are subject to certain known and unknown
risks and uncertainties, as well as assumptions that could cause
actual results to differ materially from those reflected in these
forward-looking statements. Factors that might cause actual results
to differ include the risk factors discussed from time to time in
each of our documents and reports filed with the SEC.
Readers are cautioned not to place undue reliance on any
forward-looking statements contained in this Press Release, which
reflect management’s opinions only as of the date hereof. Except as
required by law, we undertake no obligation to revise or publicly
release the results of any revision to any forward-looking
statements.
Investor Relations:Alisa
Perkins918-524-8081investor.relations@semgroupcorp.com
Media:Tom Droege918-524-8560tdroege@semgroupcorp.com
SemGroup (NYSE:SEMG)
Historical Stock Chart
From Apr 2024 to May 2024
SemGroup (NYSE:SEMG)
Historical Stock Chart
From May 2023 to May 2024