Tulsa World: SemGroup Energy CEO is leaving

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SemGroup Energy CEO is leaving
Kevin Foxx is not the only executive who is stepping down, the company says.

LEAVING
Kevin Foxx: The SemGroup Energy Partners CEO is stepping down as the company is acquired by Vitol Inc.

By ROD WALTON World Staff Writer
Published: 11/25/2009 2:26 AM
Last Modified: 11/25/2009 4:49 AM

Complete coverage: Read all the stories and documents related to the SemGroup collapse.

SemGroup Energy Partners LP's new controlling owners announced Tuesday that CEO and President Kevin Foxx, who weathered the storm of parent company SemGroup LP's bankruptcy and questions about his involvement in its financial decline, is stepping down from the Tulsa midstream firm.

Foxx and Treasurer Michael Brochetti's departures come as Vitol Inc. completes its acquisition of SGLP's general partner. The two are leaving "to pursue other opportunities" and may remain as consultants until March 2010, according to a company release.

"Kevin Foxx and Michael Brochetti have led SGLP, during a time of great challenge and worked to rebuild value in SGLP," SemGroup Energy board chairman Duke R. Ligon said in a statement. "Their diligent efforts during the transition of control to Vitol were instrumental in the successful conclusion."

Former Teppco Partners executive Michael Cockrell will move into SGLP's president and chief operating officer posts.

Vitol Inc., part of a Rotterdam-based, worldwide group of energy companies called Vitol Group, acquired the general partner interest from hedge fund Manchester Securities. Manchester took control of SGLP's board in July 2008, when the parent SGLP filed for Chapter 11 bankruptcy protection.

Foxx was a co-founder of the parent SemGroup and resigned his board position around the time of the bankruptcy. SemGroup sought Chapter 11 after amassing nearly $3 billion in lost margins on failed oil futures positions, reports state.

The SGLP subsidiary avoided its own bankruptcy despite credit default and millions in lost revenues from services for the parent firm. SemGroup spun off some of its oil and asphalt storage and transport assets to form SGLP and then take it public in July 2007.

The spinoff eventually severed relations with its troubled parent and found third-party oil and asphalt storage customers.

The separation will become symbolically complete when SGLP changes its name to Blueknight Energy Partners, by Dec. 1.

The Tulsa-based firm owns and operates 8.2 million barrels of crude oil storage, mostly at its Cushing hub, as well as 1,150 miles of pipeline, 200 vehicles and 46 terminals. SGLP has 26 employees in Tulsa and 387 companywide.

Foxx was highly touted by SGLP brass for his efforts in staving off bankruptcy, but his involvement with SemGroup LP — which he helped found nine years ago — persisted throughout the parent company's Chapter 11 period.

SemGroup hopes to exit bankruptcy on Monday after 16 months under protection .

The U.S. judge-appointed bankruptcy examiner — former FBI Director Louis Freeh — guided a four-month investigation into events leading to SemGroup LP's financial collapse. Freeh's report accused co-founders Tom Kivisto and Gregory Wallace of misleading creditors, mismanaging company resources and enriching themselves with improper bonuses.

Foxx also was accused of mismanagement. He, Kivisto, Wallace and several other former executives were defendants in a lawsuit brought by his onetime employer.

Rod Walton 581-8457
rod.walton@tulsaworld.com By ROD WALTON World Staff Writer

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Some reader comments for this story were copied from "SemGroup Energy CEO Kevin Foxx stepping down," which was published on 11/24/2009.

	Report Comment O&Gtrader, ft. worth (11/25/2009 8:33:13 AM) The skills it takes to build a $6 billion oil marketing and service firm will not automatically make you a supertrader. Some know that to begin with and others have to learn it the hard way.
	Report Comment im4osu, Broken Arrow (11/25/2009 8:44:00 PM) Oh yea, I forgot......OU SUX;)
	Report Comment don't be fooled, (11/28/2009 10:26:44 AM) Slither back under the rock from whence you came. It's just too bad someone didn't cut your head off when you were among real people.

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