SemGroup Corporation Announces Closing of Acquisition of Rose Rock Midstream, L.P.
30 September 2016 - 2:31PM
SemGroup® Corporation (NYSE:SEMG) today announced that it has
completed the acquisition of all of the outstanding common units of
Rose Rock Midstream®, L.P. (NYSE:RRMS) not already owned by the
company.
“SemGroup’s shareholders showed resounding support
for this important transaction, which simplifies our corporate
capital structure and provides the financial flexibility to execute
on our strategic growth plan,” said Carlin Conner, president and
chief executive officer of SemGroup. “This business combination
provides immediate benefits to our investors and expected dividend
growth beyond 2016 as we position for long-term value
creation.”
About SemGroup Based in Tulsa,
Okla., SemGroup® Corporation 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.
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 Statements 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 the benefits of the
transaction pursuant to which we acquired all of the outstanding
common units of our subsidiary, Rose Rock Midstream, L.P., not
already owned by us; 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 amount
of collateral required to be posted from time to time in our
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 and
the indentures governing our senior notes, including requirements
under our credit agreements 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 may not result in the
corresponding anticipated revenue increases; 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:
Alisa Perkins
918-524-8081
investor.relations@semgroupcorp.com
Media:
Kiley Roberson
918-524-8594
kroberson@semgroupcorp.com
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