Tulsa World: QuikTrip, Magellan planning to buy SemGroup assets

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QuikTrip, Magellan planning to buy SemGroup assets

By ROD WALTON World Staff Writer
Published: 6/29/2009 1:48 PM
Last Modified: 6/29/2009 1:55 PM

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

Bankrupt SemGroup LP will sell off much of its SemFuel refined petroleum unit to fellow Tulsa companies QuikTrip Corp. and Magellan Midstream Partners LP for a combined $37 million, officials confirmed Monday.

Fee-based gasoline storer and transporter Magellan, through subsidiary Magellan Pipeline Co., would pay $23 million to buy SemFuel’s terminal operations El Dorado, Kan.; Des Moines, Iowa; and storage sites in Glenpool and west Tulsa, court records show. Convenience-store giant QuikTrip would spend $14 million for assets in Fort Worth.

“It fits our long-term plans in the Dallas area,” QuikTrip spokesman Mike Thornbrugh said.

The acquisitions are still subject to an auction and court approval, but QuikTrip, Magellan and Wisconsin-based U.S. Oil Co. emerged as stalking horse bidders for three of SemFuel’s five assets groups. The auction deadline for other interested bidders is July 27, but a judge will hear arguments on these proposed transactions by July 14, according to court records.

If approved, SemFuels will be the second major piece of the former SemGroup sold to help pay off creditors. The 9-year-old privately held Tulsa energy conglomerate also sold off or wound down its SemMaterials asphalt unit earlier this year.

SemGroup LP filed for Chapter

11 bankruptcy protection last July after its traders lost at least $2.4 billion in margins on oil futures positions. The company also owes at least another $2.5 billion to banks and other creditors, according to reports.

SemGroup LP filed a reorganization plan last month but revised its proposal after many oil and gas producers filed objections against the company’s disclosure statement. The amended reorganization still calls for SemGroup to emerge as a publicly traded entity by September, if approved by creditors and the court.

Earlier this year, SemGroup CEO Terry Ronan told employees that the eventual plan would focus on the company’s SemCrude oil operations.

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By ROD WALTON World Staff Writer

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Reader comments for this story have been moved to the most updated version of the story, now under the headline "Two Tulsa firms to buy SemGroup unit," which was published on 6/30/2009. So far, 11 comments have been made.