Rose Rock Midstream Announces Agreement to Acquire Remaining Crude Oil Assets of SemGroup Corporation
February 09 2015 - 4:26PM
Rose Rock Midstream®, L.P. (NYSE:RRMS) announced today that it has
entered into an agreement to acquire the remaining crude oil assets
of SemGroup® Corporation (NYSE:SEMG), which include the Wattenberg
Oil Trunkline System and SemGroup's 50% interest in the Glass
Mountain Pipeline, for a purchase price of $325 million consisting
of cash and 1.75 million Rose Rock Midstream common LP units. Rose
Rock expects the acquisition to close in the first quarter of 2015,
subject to customary closing conditions.
"We have been working toward this agreement for some time now,
and we are pleased to have reached this important milestone for
both Rose Rock and SemGroup," said Carlin Conner, president and
chief executive officer of SemGroup, which is Rose Rock Midstream's
general partner. "The transaction strengthens and diversifies Rose
Rock's asset base while immediately increasing distributable cash
flow on a per unit basis. In addition, this transaction underscores
SemGroup's focus on value creation and advances our efforts to drop
down assets to enhance returns and increase dividends for
stockholders. We remain committed to dropping down SemGroup's U.S.
gas assets in the near future."
The Glass Mountain Pipeline is a 210-mile crude oil pipeline
system that comprises two lateral pipelines originating in the
Granite Wash and Mississippi Lime Plays. The two pipelines, which
have a current capacity of 140,000 barrels per day, join and then
terminate in Cushing, OK.
The Wattenberg Oil Trunkline System is a 75-mile crude oil
pipeline in the DJ Basin, which transports production from Noble
Energy to the White Cliffs Pipeline. The Wattenberg Oil Trunkline
System includes a 38-mile extension that came online February 1,
2015.
The terms of the acquisition agreement were approved by the
Conflicts Committee of the Board of Directors of Rose Rock
Midstream's general partner. The Conflicts Committee engaged
Simmons & Company International to act as its independent
financial advisor and to render a fairness opinion, and Akin Gump
Strauss Hauer & Feld, LLP to act as its legal advisor.
About Rose Rock Midstream
Rose Rock Midstream®, L.P. (NYSE:RRMS) is a growth-oriented
Delaware limited partnership formed by SemGroup® Corporation
(NYSE:SEMG) to own, operate, develop and acquire a diversified
portfolio of midstream energy assets. Headquartered in Tulsa, OK,
Rose Rock Midstream provides crude oil gathering, transportation,
storage and marketing services with the majority of its assets
strategically located in or connected to the Cushing, Oklahoma
crude oil marketing hub.
About SemGroup
Based in Tulsa, OK, 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 and asphalt. Services include purchasing,
selling, processing, transporting, terminalling and storing
energy.
Forward-Looking Statements
Certain matters contained in this Press Release include
"forward-looking statements." 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, but are not
limited to, 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.
CONTACT: Investor Relations:
Alisa Perkins
918-524-8081
investor.relations@semgroupcorp.com
roserockir@rrmidstream.com
Media:
Kiley Roberson
918-524-8594
kroberson@semgroupcorp.com
kroberson@rrmidstream.com
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