SemGroup® Corporation (NYSE:SEMG) today reported second quarter
2019 net loss of $12.9 million, compared to first quarter net loss
of $3.3 million and second quarter 2018 net loss of $2.7 million.
Second quarter 2019 net loss was primarily due to non-cash items
related to the impairment or sale of certain assets.
Second quarter 2019 Adjusted EBITDA (adjusted earnings before
interest, taxes, depreciation and amortization) was $105.5 million,
compared to $103 million in the first quarter of 2019 and $99
million in the second quarter 2018, primarily reflecting
contributions from the company's new gas plants in Canada. Adjusted
EBITDA is a non-GAAP measure and is reconciled to net income
below.
"Second quarter results were in line with expectations," said
SemGroup President and Chief Executive Officer Carlin Conner.
"Investments over the past year in our U.S. Liquids and Canadian
segments drove the increased year-over-year Adjusted EBITDA. This
growth highlights the value of strategic projects like the Houston
terminal expansion and the Wapiti and Patterson Creek gas plants,
which will provide long-term, stable cash flows."
"I'm pleased to see our strategy deliver the intended financial
and commercial results," said Conner. "Our well-positioned assets
in Canada, the Mid-Continent and Gulf Coast are anchored by
contracted cash flows that provide us confidence in our future
growth. While our assets are performing, we have additional work to
do on our balance sheet and are evaluating alternatives to de-lever
while creating shareholder value."
Segment Profit ResultsSemGroup management
believes segment profit is a valuable measure of the operating and
financial performance of the company's operating segments. Segment
profit is defined as revenue, less cost of products sold (exclusive
of depreciation and amortization) and operating expenses, plus
equity earnings and is adjusted to remove unrealized gains and
losses on commodity derivatives and to reflect equity earnings on
an EBITDA basis. Reconciliations can be found in the tables of this
release.
| |
Three Months Ended |
|
Six Months Ended |
| |
June 30 |
March 31 |
|
June 30 |
| Segment Profit: |
2019 |
2018 |
2019 |
|
2019 |
2018 |
|
U.S. Liquids |
$ |
85,189 |
|
$ |
80,393 |
|
$ |
89,511 |
|
|
$ |
174,700 |
|
$ |
148,449 |
|
|
U.S. Gas |
11,040 |
|
15,437 |
|
12,165 |
|
|
23,205 |
|
29,714 |
|
|
Canada |
29,669 |
|
21,448 |
|
22,693 |
|
|
52,362 |
|
43,561 |
|
|
Corporate/Other (1) |
(219 |
) |
(172 |
) |
(237 |
) |
|
(456 |
) |
10,791 |
|
| Total Segment Profit |
$ |
125,679 |
|
$ |
117,106 |
|
$ |
124,132 |
|
|
$ |
249,811 |
|
$ |
232,515 |
|
(1) 1Q 2018 reflects earnings from divested businesses
Performance by Segment - Second Quarter 2019 vs. First
Quarter 2019
U.S. Liquids
- Second quarter was impacted by a $3.3 million property tax
increase at the Houston terminal and the absence of a one-time $2.7
million insurance recovery recognized in the first quarter.
- Higher marketing margins more than offset lower White Cliffs
volumes related to the NGL line conversion.
U.S. Gas
- The decrease was primarily due to lower residue and NGL
prices.
- Higher volumes and lower operating cost were offset by lower
revenue margins.
Canada
- Results were driven by full quarter contributions from the
Patterson Creek and Wapiti plants, which benefited from strong
volume growth.
| |
2019 |
|
2018 |
| Select Operating
Statistics |
1Q |
2Q (1) |
|
1Q |
2Q |
3Q |
4Q |
| U.S.
Liquids |
|
|
|
|
|
|
|
|
White Cliffs Pipeline Volumes (mbpd) |
147 |
|
106 |
|
|
107 |
|
135 |
|
112 |
|
144 |
|
|
Cushing Terminal Utilization % |
100% |
|
90% |
|
|
98% |
|
97% |
|
94% |
|
98% |
|
|
Houston Terminal Utilization % |
98% |
|
98% |
|
|
97% |
|
97% |
|
96% |
|
96% |
|
| U.S. Gas
(2) |
|
|
|
|
|
|
|
|
Total Oklahoma Average Processing Volumes (mmcf/d) |
290 |
|
301 |
|
|
293 |
|
353 |
|
380 |
|
355 |
|
| Canada
(3) |
|
|
|
|
|
|
|
|
Total Average Processing Volumes (mmcf/d) |
460 |
|
590 |
|
|
441 |
|
382 |
|
434 |
|
430 |
|
(1) White Cliffs Pipeline volumes
decline primarily due to one crude line taken out of service for
NGL conversion in early May 2019 and the Cushing terminal
excludes storage out of service for inspection and
repairs (2) U.S. Gas volumes exclude Sherman,
Texas due to sale of asset (3) Canada volumes
include total average processed volumes - K3/Wapiti, KA/West Fox
Creek and Patterson Creek facilities
Segment Profit and Adjusted EBITDA:(in
thousands, unaudited)
| |
2019 |
|
2018 |
| Segment Profit: |
1Q |
2Q |
YTD |
|
1Q |
2Q |
3Q |
4Q |
FY2018 |
|
U.S. Liquids |
$ |
89,511 |
|
$ |
85,189 |
|
$ |
174,700 |
|
|
$ |
68,056 |
|
$ |
80,393 |
|
$ |
75,500 |
|
$ |
85,474 |
|
$ |
309,423 |
|
|
U.S. Gas |
12,165 |
|
11,040 |
|
23,205 |
|
|
14,277 |
|
15,437 |
|
19,754 |
|
17,602 |
|
67,070 |
|
|
Canada |
22,693 |
|
29,669 |
|
52,362 |
|
|
22,113 |
|
21,448 |
|
20,543 |
|
17,226 |
|
81,330 |
|
|
Corporate and other (1) |
(237 |
) |
(219 |
) |
(456 |
) |
|
10,963 |
|
(172 |
) |
(913 |
) |
(152 |
) |
9,726 |
|
| Total Segment Profit |
124,132 |
|
125,679 |
|
249,811 |
|
|
115,409 |
|
117,106 |
|
114,884 |
|
120,150 |
|
467,549 |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
General and administrative expense |
29,547 |
|
25,520 |
|
55,067 |
|
|
26,477 |
|
22,886 |
|
21,904 |
|
20,301 |
|
91,568 |
|
|
Other income |
(979 |
) |
(1,347 |
) |
(2,326 |
) |
|
(950 |
) |
(533 |
) |
(400 |
) |
(497 |
) |
(2,380 |
) |
| Plus: |
|
|
|
|
|
|
|
|
|
|
M&A related costs |
4,635 |
|
1,676 |
|
6,311 |
|
|
1,156 |
|
648 |
|
290 |
|
1,058 |
|
3,152 |
|
|
Employee severance and relocation |
159 |
|
73 |
|
232 |
|
|
137 |
|
211 |
|
43 |
|
758 |
|
1,149 |
|
|
Non-cash equity compensation |
2,632 |
|
2,232 |
|
4,864 |
|
|
2,196 |
|
3,398 |
|
2,738 |
|
3,190 |
|
11,522 |
|
| Consolidated Adjusted
EBITDA |
$ |
102,990 |
|
$ |
105,487 |
|
$ |
208,477 |
|
|
$ |
93,371 |
|
$ |
99,010 |
|
$ |
96,451 |
|
$ |
105,352 |
|
$ |
394,184 |
|
(1) 1Q 2018 reflects earnings from divested businesses
Recent DevelopmentsSemGroup secured a five-year
contract on the White Cliffs Crude Pipeline for 20,000 barrels per
day and is currently holding an open season due to continued
shipper interest.
On August 5, SemGroup announced that its Board of Directors had
declared a quarterly cash dividend to common shareholders. A
dividend in the amount of $0.4725 per share, or $1.89 per share
annualized, will be paid on August 26, 2019 to all common
shareholders of record on August 15, 2019. The Board of Directors
also declared a dividend to holders of its 7% Series A Cumulative
Perpetual Convertible Preferred Stock. The company elected,
pursuant to the terms of the convertible preferred shares, to have
the aggregate amount of $6.7 million that would have been payable
in cash as a dividend added to the liquidation preference of such
shares as a payment in kind. The record date for the payment in
kind on the shares of convertible preferred stock is August 15,
2019 and the payment date is August 26, 2019.
On May 28, SemGroup entered into an agreement with Suncor Energy
to provide crude transportation service from SemGroup's
Platteville, Colorado terminal in the DJ Basin to Suncor's Commerce
City Pipeline, which feeds into Suncor's local refinery. The
project is supported by long-term contracted cash flows. The
16-mile Platteville to Suncor Pipeline is expected to be in service
in the third quarter of 2020.
On May 4, SemCAMS Midstream ULC announced the formation of an
asset joint venture with Keyera Corp. to construct a natural gas
liquids and condensate pipeline system to connect the liquids-rich
Montney and Duvernay production areas of northwestern Alberta to
the fractionation and condensate hubs in Fort Saskatchewan,
Alberta. This pipeline system provides producers additional and
alternative transportation solutions to meet growing production and
is supported by long-term contracts with significant take-or-pay
commitments. The project is now 70 percent contracted with customer
commitments.
Guidance OutlookBased on year-to-date results,
SemGroup is maintaining its initial financial guidance provided
earlier this year.
SemGroup does not provide guidance for net income, the GAAP
financial measure most directly comparable to the non-GAAP
financial measure Adjusted EBITDA, because Net Income includes
items such as unrealized gains or losses on derivative activities
or similar items which, because of their nature, cannot be
accurately forecasted. SemGroup does not expect that such amounts
would be significant to Adjusted EBITDA as they are largely
non-cash items; however, such items may be significant to net
income.
Earnings Conference CallSemGroup will host a
conference call at 11 a.m. Eastern, Friday, August 9, 2019. The
call can be accessed live over the telephone by dialing
855-239-1101, or for international callers, 412-542-4117.
Interested parties may also listen to a simultaneous webcast of the
conference call by logging onto SemGroup's Investor Relations
website at www.semgroup.com. A replay of the webcast will be
available following the call. The second quarter 2019 slide deck
will be posted here.
About SemGroupSemGroup® Corporation (NYSE:SEMG)
moves energy across North America through a network of pipelines,
processing plants, refinery-connected storage facilities and
deep-water marine terminals with import and export capabilities.
SemGroup serves as a versatile connection between upstream oil and
gas producers and downstream refiners and end users. Key areas of
operation and growth include western Canada, the Mid-Continent and
the Gulf Coast. SemGroup is committed to safe, environmentally
sound operations. Headquartered in Tulsa, Okla., the company has
additional offices in Calgary, Alberta; Denver, Colo.; and Houston,
Texas.
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.semgroup.com, our Twitter
account and LinkedIn account.
Non-GAAP Financial MeasuresSemGroup’s non-GAAP
measures, Adjusted EBITDA, Cash Available for Dividends ("CAFD")
and Total Segment Profit, are not GAAP measures and are not
intended to be used in lieu of GAAP presentation of their most
closely associated GAAP measures, net income (loss) for Adjusted
EBITDA and CAFD and operating income for Total Segment Profit.
Adjusted EBITDA represents earnings before interest, taxes,
depreciation and amortization, adjusted for selected items that
SemGroup believes impact the comparability of financial results
between reporting periods. In addition to non-cash items, we
have selected items for adjustment to EBITDA which management feels
decrease the comparability of our results among periods. These
items are identified as those which are generally outside of the
results of day to day operations of the business. These items are
not considered non- recurring, infrequent or unusual, but do erode
comparability among periods in which they occur with periods in
which they do not occur or occur to a greater or lesser degree.
Historically, we have selected items such as gains on the sale of
NGL Energy Partners LP common units, costs related to our
predecessor’s bankruptcy, significant business development related
costs, significant legal settlements, severance and other similar
costs. Management believes these types of items can make
comparability of the results of day to day operations among periods
difficult and have chosen to remove these items from our Adjusted
EBITDA. We expect to adjust for similar types of items in the
future. Although we present selected items that we consider in
evaluating our performance, you should be aware that the items
presented do not represent all items that affect comparability
between the periods presented. Variations in our operating results
are also caused by changes in volumes, prices, mechanical
interruptions and numerous other factors. We do not adjust for
these types of variances.
CAFD is based on Adjusted EBITDA, as defined above, and reduced
for cash income taxes, cash interest expense, preferred stock cash
dividends, maintenance capital expenditures and CAFD attributable
to noncontrolling interests, as adjusted for selected items which
management feels decrease the comparability of results among
periods. CAFD is a performance measure utilized by management
to analyze our performance after the payment of cash taxes,
servicing debt obligations and making sustaining capital
expenditures.
Total Segment Profit represents revenue, less cost of products
sold (exclusive of depreciation and amortization) and operating
expenses, plus equity earnings and is adjusted to remove unrealized
gains and losses on commodity derivatives and to reflect equity
earnings on an EBITDA basis. Reflecting equity earnings on an
EBITDA basis is achieved by adjusting equity earnings to exclude
our percentage of interest, taxes, depreciation and amortization
from equity earnings for operated equity method investees. For our
investment in NGL Energy, we exclude equity earnings and include
cash distributions received. Segment profit is the measure by which
management assess the performance of our reportable segments.
These measures may be used periodically by management when
discussing our financial results with investors and analysts and
are presented as management believes they provide additional
information and metrics relative to the performance of our
businesses. These non-GAAP financial measures have important
limitations as analytical tools because they exclude some, but not
all, items that affect the most directly comparable GAAP financial
measures. You should not consider non-GAAP measures in isolation or
as substitutes for analysis of our results as reported under GAAP.
Management compensates for the limitations of our non-GAAP measures
as analytical tools by reviewing the comparable GAAP measures,
understanding the differences between the non-GAAP measure and the
most comparable GAAP measure and incorporating this knowledge into
its decision-making processes. We believe that investors benefit
from having access to the same financial measures that our
management uses in evaluating our operating results. Because all
companies do not use identical calculations, our presentations of
non-GAAP measures may be different from similarly titled measures
of other companies, thereby diminishing their utility.
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 including the prospects of our
industry, our anticipated financial performance, our anticipated
annual dividend growth rate, management's plans and objectives for
future operations, planned capital expenditures, business
prospects, outcome of regulatory proceedings, market conditions and
other matters, 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, our ability to generate
sufficient cash flow from operations to enable us to pay our debt
obligations and our current and expected dividends or to fund our
other liquidity needs; any sustained reduction in demand for, or
supply of, the petroleum products we gather, transport, process,
market and store; the effect of our debt level on our future
financial and operating flexibility, including our ability to
obtain additional capital on terms that are favorable to us; our
ability to access the debt and equity markets, which will depend on
general market conditions and the credit ratings for our debt
obligations and equity; the loss of, or a material nonpayment or
nonperformance by, any of our key customers; the amount of cash
distributions, capital requirements and performance of our
investments and joint ventures; the consequences of any
divestitures of non-strategic operating assets or divestitures of
interests in some of our operating assets through partnerships
and/or joint ventures; the amount of collateral required to be
posted from time to time in our commodity purchase, sale or
derivative transactions; the impact of operational and
developmental hazards and unforeseen interruptions; our ability to
obtain new sources of supply of petroleum products; competition
from other midstream energy companies; our ability to comply with
the covenants contained in our credit agreements, continuing
covenant agreement, and the indentures governing our notes,
including requirements under our credit agreements and continuing
covenant agreement to maintain certain financial ratios; our
ability to renew or replace expiring storage, transportation and
related contracts; the overall forward markets for crude oil,
natural gas and natural gas liquids; the possibility that the
construction or acquisition of new assets or other business
combination activities may not result in the corresponding
anticipated benefits; any future impairment of goodwill resulting
from the loss of customers or business; changes in currency
exchange rates; weather and other natural phenomena, including
climate conditions; a cyber attack involving our information
systems and related infrastructure, or that of our business
associates; the risks and uncertainties of doing business outside
of the U.S., including political and economic instability and
changes in local governmental laws, regulations and policies; costs
of, or changes in, laws and regulations and our failure to comply
with new or existing laws or regulations, particularly with regard
to taxes, safety and protection of the environment; the possibility
that our hedging activities may result in losses or may have a
negative impact on our financial results; general economic, market
and business conditions; as well as other 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.
Contacts:Investor Relations:Kevin
Greenwell918-524-8081investor.relations@semgroup.com
Media:Tom Droege918-524-8560tdroege@semgroup.com
Condensed Consolidated Balance Sheets(in
thousands, unaudited)
| |
June 30, 2019 |
December 31, 2018 |
| ASSETS |
|
|
|
Current assets |
$ |
1,043,362 |
|
$ |
715,825 |
|
| Property, plant and equipment,
net |
3,886,438 |
|
3,457,326 |
|
| Goodwill and other intangible
assets |
794,789 |
|
622,340 |
|
| Equity method investments |
284,186 |
|
274,009 |
|
| Other noncurrent assets,
net |
156,076 |
|
140,807 |
|
| Right of use assets, net |
93,089 |
|
— |
|
| Total assets |
$ |
6,257,940 |
|
$ |
5,210,307 |
|
| LIABILITIES, PREFERRED STOCK
AND OWNERS' EQUITY |
|
|
| Current liabilities: |
|
|
|
Current portion of long-term debt |
$ |
12,682 |
|
$ |
6,000 |
|
|
Other current liabilities |
707,962 |
|
631,157 |
|
| Total current liabilities |
720,644 |
|
637,157 |
|
| Long-term debt, excluding
current portion |
2,510,897 |
|
2,278,834 |
|
| Other noncurrent
liabilities |
283,549 |
|
94,337 |
|
| Total liabilities |
3,515,090 |
|
3,010,328 |
|
| Preferred stock |
372,628 |
|
359,658 |
|
| Subsidiary preferred
stock |
252,876 |
|
— |
|
| Total owners' equity |
2,117,346 |
|
1,840,321 |
|
| Total liabilities, preferred
stock and owners' equity |
$ |
6,257,940 |
|
$ |
5,210,307 |
|
Condensed Consolidated Statements of
Operations(in thousands, except per share amounts,
unaudited)
| |
Three Months Ended |
|
Six Months Ended |
| |
June 30, |
March 31, |
|
June 30, |
| |
2019 |
2018 |
2019 |
|
2019 |
2018 |
|
Revenues |
$ |
674,940 |
|
$ |
595,794 |
|
$ |
567,232 |
|
|
$ |
1,242,172 |
|
$ |
1,257,403 |
|
| Expenses: |
|
|
|
|
|
|
|
Costs of products sold, exclusive of depreciation and amortization
shown below |
493,580 |
|
412,089 |
|
403,372 |
|
|
896,952 |
|
908,221 |
|
|
Operating |
77,997 |
|
90,245 |
|
63,207 |
|
|
141,204 |
|
160,036 |
|
|
General and administrative |
25,520 |
|
22,886 |
|
29,547 |
|
|
55,067 |
|
49,363 |
|
|
Depreciation and amortization |
64,011 |
|
51,755 |
|
59,036 |
|
|
123,047 |
|
102,291 |
|
|
Loss (gain) on disposal or impairment, net |
8,936 |
|
1,824 |
|
(1,444 |
) |
|
7,492 |
|
(1,742 |
) |
|
Total expenses |
670,044 |
|
578,799 |
|
553,718 |
|
|
1,223,762 |
|
1,218,169 |
|
| Earnings from equity method
investments |
12,695 |
|
14,351 |
|
13,951 |
|
|
26,646 |
|
26,965 |
|
| Operating income |
17,591 |
|
31,346 |
|
27,465 |
|
|
45,056 |
|
66,199 |
|
| Other expenses, net |
36,574 |
|
37,685 |
|
35,385 |
|
|
71,959 |
|
82,490 |
|
| Loss before income taxes |
(18,983 |
) |
(6,339 |
) |
(7,920 |
) |
|
(26,903 |
) |
(16,291 |
) |
| Income tax expense
(benefit) |
(6,085 |
) |
(3,613 |
) |
(4,606 |
) |
|
(10,691 |
) |
19,470 |
|
| Net loss |
(12,898 |
) |
(2,726 |
) |
(3,314 |
) |
|
(16,212 |
) |
(35,761 |
) |
|
Less: net income attributable to noncontrolling interest |
12,689 |
|
— |
|
3,525 |
|
|
16,214 |
|
— |
|
| Net loss attributable to
SemGroup |
(25,587 |
) |
(2,726 |
) |
(6,839 |
) |
|
(32,426 |
) |
(35,761 |
) |
|
Less: cumulative preferred stock dividends |
6,657 |
|
6,211 |
|
6,541 |
|
|
13,198 |
|
11,043 |
|
|
Less: cumulative subsidiary preferred stock dividends |
2,577 |
|
— |
|
1,857 |
|
|
3,684 |
|
— |
|
|
Less: accretion of subsidiary preferred stock to redemption
value |
237 |
|
— |
|
13,749 |
|
|
13,986 |
|
— |
|
| Net loss attributable to
common shareholders |
$ |
(35,058 |
) |
$ |
(8,937 |
) |
$ |
(28,986 |
) |
|
$ |
(63,294 |
) |
$ |
(46,804 |
) |
| Net loss |
$ |
(12,898 |
) |
$ |
(2,726 |
) |
$ |
(3,314 |
) |
|
$ |
(16,212 |
) |
$ |
(35,761 |
) |
| Other comprehensive income
(loss), net of income tax |
27,387 |
|
6,180 |
|
(14,233 |
) |
|
13,154 |
|
24,351 |
|
| Comprehensive income
(loss) |
14,489 |
|
3,454 |
|
(17,547 |
) |
|
(3,058 |
) |
(11,410 |
) |
|
Less: net income attributable to noncontrolling interest |
12,689 |
|
— |
|
3,525 |
|
|
16,214 |
|
— |
|
|
Less: other comprehensive income attributable to noncontrolling
interests |
8,018 |
|
— |
|
5,580 |
|
|
13,598 |
|
— |
|
| Comprehensive income (loss)
attributable to SemGroup |
$ |
(6,218 |
) |
$ |
3,454 |
|
$ |
(26,652 |
) |
|
$ |
(32,870 |
) |
$ |
(11,410 |
) |
| |
|
|
|
|
|
|
| Net loss per common
share: |
|
|
|
|
|
|
|
Basic |
$ |
(0.45 |
) |
$ |
(0.11 |
) |
$ |
(0.37 |
) |
|
$ |
(0.81 |
) |
$ |
(0.60 |
) |
|
Diluted |
$ |
(0.45 |
) |
$ |
(0.11 |
) |
$ |
(0.37 |
) |
|
$ |
(0.81 |
) |
$ |
(0.60 |
) |
| Weighted average shares
(thousands): |
|
|
|
|
|
|
|
Basic |
78,668 |
|
78,319 |
|
78,492 |
|
|
78,580 |
|
78,259 |
|
|
Diluted |
78,668 |
|
78,319 |
|
78,492 |
|
|
78,580 |
|
78,259 |
|
Reconciliation of Net Income to Adjusted
EBITDA:(in thousands, unaudited)
| |
Three Months Ended |
|
Six Months Ended |
| |
June 30, |
March 31, |
|
June 30, |
| |
2019 |
2018 |
2019 |
|
2019 |
2018 |
|
Net loss |
$ |
(12,898 |
) |
$ |
(2,726 |
) |
$ |
(3,314 |
) |
|
$ |
(16,212 |
) |
$ |
(35,761 |
) |
|
Add: Interest expense |
38,910 |
|
35,904 |
|
36,652 |
|
|
75,562 |
|
78,365 |
|
|
Add: Income tax expense (benefit) |
(6,085 |
) |
(3,613 |
) |
(4,606 |
) |
|
(10,691 |
) |
19,470 |
|
|
Add: Depreciation and amortization expense |
64,011 |
|
51,755 |
|
59,036 |
|
|
123,047 |
|
102,291 |
|
| EBITDA |
83,938 |
|
81,320 |
|
87,768 |
|
|
171,706 |
|
164,365 |
|
| Selected Non-Cash Items and
Other Items Impacting Comparability |
21,549 |
|
17,690 |
|
15,222 |
|
|
36,771 |
|
28,016 |
|
| Adjusted EBITDA |
$ |
105,487 |
|
$ |
99,010 |
|
$ |
102,990 |
|
|
$ |
208,477 |
|
$ |
192,381 |
|
Selected Non-Cash Items andOther Items
Impacting Comparability(in thousands, unaudited)
| |
Three Months Ended |
|
Six Months Ended |
| |
June 30, |
March 31, |
|
June 30, |
| |
2019 |
2018 |
2019 |
|
2019 |
2018 |
|
Loss (gain) on disposal or impairment, net |
$ |
8,936 |
|
$ |
1,824 |
|
$ |
(1,444 |
) |
|
$ |
7,492 |
|
$ |
(1,742 |
) |
| Foreign currency transaction
loss (gain) |
(989 |
) |
2,314 |
|
(288 |
) |
|
(1,277 |
) |
5,608 |
|
| Adjustments to reflect equity
earnings on an EBITDA basis |
4,718 |
|
4,886 |
|
4,710 |
|
|
9,428 |
|
9,769 |
|
| M&A transaction related
costs |
1,676 |
|
648 |
|
4,635 |
|
|
6,311 |
|
1,804 |
|
| Employee severance and
relocation expense |
73 |
|
211 |
|
159 |
|
|
232 |
|
348 |
|
| Unrealized loss on derivative
activities |
4,903 |
|
4,409 |
|
4,818 |
|
|
9,721 |
|
6,635 |
|
| Non-cash equity
compensation |
2,232 |
|
3,398 |
|
2,632 |
|
|
4,864 |
|
5,594 |
|
| Selected Non-Cash Items and
Other Items Impacting Comparability |
$ |
21,549 |
|
$ |
17,690 |
|
$ |
15,222 |
|
|
$ |
36,771 |
|
$ |
28,016 |
|
Reconciliation of Operating Income to Total Segment
Profit:(in thousands, unaudited)
| |
Three Months Ended |
|
Six Months Ended |
| |
June 30, |
March 31, |
|
June 30, |
| |
2019 |
2018 |
2019 |
|
2019 |
2018 |
|
Operating income |
$ |
17,591 |
|
$ |
31,346 |
|
$ |
27,465 |
|
|
$ |
45,056 |
|
$ |
66,199 |
|
| Plus: |
|
|
|
|
|
|
| Adjustments to reflect equity
earnings on an EBITDA basis |
4,718 |
|
4,886 |
|
4,710 |
|
|
9,428 |
|
9,769 |
|
| Unrealized loss (gain) on
derivatives |
4,903 |
|
4,409 |
|
4,818 |
|
|
9,721 |
|
6,635 |
|
| General and administrative
expense |
25,520 |
|
22,886 |
|
29,547 |
|
|
55,067 |
|
49,363 |
|
| Depreciation and
amortization |
64,011 |
|
51,755 |
|
59,036 |
|
|
123,047 |
|
102,291 |
|
| Gain on disposal of long-lived
assets, net |
8,936 |
|
1,824 |
|
(1,444 |
) |
|
7,492 |
|
(1,742 |
) |
| Total Segment Profit |
$ |
125,679 |
|
$ |
117,106 |
|
$ |
124,132 |
|
|
$ |
249,811 |
|
$ |
232,515 |
|
Cash Available for Dividends:(in thousands,
unaudited)
| |
Three Months Ended |
|
Six Months Ended |
| |
June 30 |
March 31, |
|
June 30, |
| |
2019 |
2018 |
2019 |
|
2019 |
2018 |
|
Adjusted EBITDA |
$ |
105,487 |
|
$ |
99,010 |
|
$ |
102,990 |
|
|
$ |
208,477 |
|
$ |
192,381 |
|
|
Less: Cash interest expense |
36,458 |
|
34,870 |
|
35,626 |
|
|
72,084 |
|
67,400 |
|
|
Less: Maintenance capital |
8,073 |
|
11,550 |
|
10,600 |
|
|
18,673 |
|
19,279 |
|
|
Less: Cash paid for income taxes |
796 |
|
12,900 |
|
910 |
|
|
1,706 |
|
14,700 |
|
|
Less: CAFD attributable to CAMS Midstream noncontrolling
interest |
9,840 |
|
— |
|
2,844 |
|
|
12,684 |
|
— |
|
|
Less: Distributions to Maurepas Class B shareholders |
6,595 |
|
— |
|
6,613 |
|
|
13,208 |
|
— |
|
| Selected items impacting
comparability |
|
|
|
|
|
|
|
Add back: Mexico disposal cash taxes |
— |
|
10,955 |
|
— |
|
|
— |
|
10,955 |
|
| Cash available for
dividends |
$ |
43,725 |
|
$ |
50,645 |
|
$ |
46,397 |
|
|
$ |
90,122 |
|
$ |
101,957 |
|
| |
|
|
|
|
|
|
| Dividends declared |
$ |
37,161 |
|
$ |
37,022 |
|
$ |
37,061 |
|
|
$ |
74,222 |
|
$ |
74,026 |
|
| |
|
|
|
|
|
|
| Dividend coverage ratio |
1.2 |
x |
1.4 |
x |
1.3 |
x |
|
1.2 |
x |
1.4 |
x |
SemGroup (NYSE:SEMG)
Historical Stock Chart
From Jun 2024 to Jul 2024
SemGroup (NYSE:SEMG)
Historical Stock Chart
From Jul 2023 to Jul 2024
