Norm Szydlowski: Organic growth project investments "are all currently on schedule and on budget," he says.
SemGroup Corp's comeback story completed another strong chapter Thursday as the Tulsa-based energy storage and transport firm reported a $22.1 million profit for 2012.
Pipeline, marketing and storage volumes all increased last year, SemGroup said.
Its spinoff master limited partnership, Rose Rock Midstream LP, generated $24 million in net income for 2012, the company reported.
"SemGroup delivered exceptional performance during 2012, wrapping up a multiquarter trend with continued strong results in the fourth quarter," Norm Szydlowski, CEO for both SemGroup and Rose Rock, said in a statement. "We continue to invest significantly in organic growth projects which are all currently on schedule and on budget."
The company's natural gas transport side - at a time of lower prices - has benefitted from mainly moving associated gas coming from oil production clients, the CEO said
SemGroup also put into service its expanded processing operation in northern Oklahoma.
The White Cliffs Pipeline, a Colorado-to-Cushing crude oil system in which SemGroup owns a majority interest, increased volumes by 6 percent, while the Rose Rock transportation and marketing volumes improved by 53 percent and 63 percent, respectively. Rose Rock last month acquired a 33.3 percent in SemCrude Pipeline LLC, which holds the stake in WhiteCliffs for $273.9 million.
Rose Rock's storage at the Cushing hub rose by 39 percent in the past year. The partnership's capacity at the terminal now totals 7 million barrels.
SemGroup's stake in Tulsa-based and Two Warren Place office neighbor NGL Energy Partners also is starting to pay off. NGL, which offers propane, crude oil and water treatment services, recently reported a $40.5 million profit for its last fiscal quarter.
"We're really pleased with our investment there," Szydlowski said.
SemGroup acquired nearly 9 million common units of NGL when the latter bought the SemStream unit in 2011.
SemGroup Corp., formerly known as SemGroup LP, emerged from Chapter 11 bankruptcy more than three years ago. The company owns oil and gas gathering, transportation, processing, storage and marketing assets in the Mid-Continent and Rocky Mountains regions.
Shares of SemGroup rose 25 cents Thursday at $46.09 on the New York Stock Exchange. The company's stock value has more than doubled since August 2011.
SemGroup Corp. earnings
|
2012 |
2011 |
2012 |
2011 |
|
4Q |
4Q |
Full-year |
Full-year |
| Revenue |
$315.8M |
$330.2M |
$1.24B |
$1.47B |
| Net income (loss) |
$21.1M |
$305,000 |
$22.1M |
$2.4M |
| Net per share |
$0.50 |
$0.01 |
$0.52 |
($0.06) |
Rose Rock Midstream LP earnings
|
2012 |
2011 |
2012 |
2011 |
|
4Q |
4Q |
Full-year |
Full-year |
| Revenue |
$151.7M |
$132.2M |
$620.4M |
$431.3M |
| Net income |
$4.6M |
$6.8M |
$23.95M |
$23.2M |
| Net per share |
$0.27 |
$0.06 |
$1.40 |
$0.06 |
Rod Walton 918-581-8457
rod.walton@tulsaworld.com
Original Print Headline: SemGroup reports profit
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