Tulsa World: SemGroup Energy gains more asphalt storage clients

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SemGroup Energy gains more asphalt storage clients

By Staff Reports
Published: 6/4/2009 2:37 PM
Last Modified: 6/4/2009 2:37 PM

Tulsa-based SemGroup Energy Partners LP announced it has signed additional asphalt storage customers to increase the number of its facilities under contract or lease to 45 of the 46 it owns. SemGroup Energy has been working to diversify its customer base to replace business that had come from its former parent, SemGroup LP, which is in Chapter 11 bankruptcy. SemGroup Energy offers fee-based storage, terminal and transport services in oil and asphalt. “The execution of these additional contracts essentially completes the task to get our asphalt facilities under contract,” Jerry Parsons, SemGroup Energy’s executive vice president of asphalt operations, said in a press release. “We now have agreements with 13 counterparties for our asphalt facilities with terms primarily extending through Dec. 31, 2011.” SemGroup Energy, or SGLP, will operate the facilities under the storage agreements and the contract customers will operate the locations under the lease agreements. SGLP will receive storage fees or lease payments from the new clients. According to company officials, SGLP’s revenues from these deals will be less than what previously was received under its terminalling and storage agreement with SemGroup LP. Late last month, SGLP released its long-delayed financial report for last year’s third quarter. The document showed publicly traded SGLP had an $11.85 million net loss for the three-month period. The company’s total “current assets” as of Sept. 30, however, rose to $48.8 million from $13.9 million six months earlier. The net loss was due to an $18 million non-cash charge

related to the early vesting of units under SGLP’s long-term incentive plan, a company spokesman said. SemGroup LP spun off millions of dollars’ worth of storage, terminal and pipeline assets to form SGLP and take it public in July 2007. A year later, SemGroup LP filed for Chapter 11 protection in U.S. Bankruptcy Court in Wilmington, Del. The company traders, including co-founder Tom Kivisto, lost more than $2.4 billion on the oil futures market, court records indicate. The public SGLP was not a debtor in that bankruptcy but lost a majority of the revenue it received in its throughput agreement with the parent SemGroup. The public subsidiary also fell into credit default, and hedge funds Alerian Capital Management and Manchester Securities took control of the SGLP board after the parent SemGroup defaulted on a $150 million loan. In recent months, SGLP has been releasing some positive news, including gaining a two-year credit waiver from its senior lending group. By Staff Reports

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Reader comments for this story have been moved to the most updated version of the story, now under the headline "SemGroup Energy adding customers," which was published on 6/5/2009. So far, 4 comments have been made.