SemGroup to Sell Interest in Glass Mountain Pipeline for $300 Million

11/9/2017

TULSA, Okla., Nov. 09, 2017 (GLOBE NEWSWIRE) -- 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.

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Forward-Looking Statements
Certain 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 Perkins
918-524-8081
investor.relations@semgroupcorp.com

Media:
Tom Droege
918-524-8560
tdroege@semgroupcorp.com

Source: SemGroup Corp.
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