SemGroup Corporation Reports Fourth Quarter and Full Year 2012 Results

SemGroup Corporation Reports Fourth Quarter and Full Year 2012 Results

     Fourth Quarter Adjusted EBITDA Increased 33% Over Previous Quarter;

             2013 Adjusted EBITDA Guidance $165 to $175 Million;

                       2013 Capex Guidance $400 Million

TULSA, Okla., Feb. 28, 2013 (GLOBE NEWSWIRE) -- SemGroup^® Corporation
(NYSE:SEMG) (SemGroup) today announced its financial results for the three
months and year ended December 31, 2012.

"SemGroup delivered exceptional performance during 2012, wrapping up a
multi-quarter trend with continued strong results in the fourth quarter. We
continue to invest significantly in organic growth projects, which are all
currently on schedule and on budget," said Norm Szydlowski, president and
chief executive officer of SemGroup. "These positive results exceeded our
projections and affirmed the strength of our strategic plan and asset base.
Looking forward to 2013, we are well positioned for another exciting year. Our
solid business model, strong balance sheet and attractive fee-based growth
projects should provide significant benefit and attractive results for our
shareholders."

Fourth Quarter Highlights

  *White Cliffs Pipeline^® volumes increased 6% from third quarter 2012;
  *SemCAMS' Adjusted EBITDA increased 41%, primarily due to capital recovery
    fees;
  *Cash distributions increased 99% from NGL Energy Partners LP with full
    distributions received on LP units; and
  *SemGas margins increased due to higher volumes and prices.

SemGroup's adjusted earnings before interest, taxes, depreciation and
amortization (Adjusted EBITDA) was $43.7 million for the fourth quarter 2012,
compared to $32.9 million for the third quarter 2012 and $31.8 million for the
fourth quarter 2011, an increase of 33% and 37%, respectively. Adjusted
EBITDA, which is a non-GAAP measure, is reconciled to net income below.

SemGroup reported revenues for fourth quarter 2012 of $315.8 million with net
income attributable to SemGroup of $21.1 million, or $0.50 per diluted share,
compared to revenues of $277.9 million with a net loss attributable to
SemGroup of $2.8 million, or a loss of $0.07 per diluted share, for the third
quarter 2012. For the fourth quarter 2011, revenues totaled $330.2 million
with net income of $0.3 million, or $0.01 per diluted share.

Full Year 2012 Highlights

  *White Cliffs Pipeline volumes increased 65%;
  *Rose Rock Midstream transportation and marketing volumes increased 53% and
    63%, respectively; and
  *Increased Cushing storage capacity by 39%.

Adjusted EBITDA for the year ended December 31, 2012, totaled $135.0 million,
up 17% from $115.5 million for the year ended December 31, 2011. For the year
ended December 31, 2012, SemGroup reported revenues of $1.2 billion with a net
income attributable to SemGroup of $22.1 million, or $0.52 per diluted share,
compared to revenues of $1.5 billion with a net income attributable to
SemGroup of $2.4 million, or a net loss of $0.06 per diluted share, for the
year ended December 31, 2011.

2013 Adjusted EBITDA and Capex Guidance

SemGroup anticipates 2013 consolidated Adjusted EBITDA of $165 million to $175
million, an increase of approximately 25% over 2012 results of $135.0 million.
The company also expects to deploy $400 million in capital investments in
2013, with more than 90% allocated to growth projects.

Recent Developments

  *On December 31, 2012, SemGroup closed on the sale of SemStream Arizona
    Propane assets to J.P. Energy Partners, L.P.;
  *On January 9, 2013, SemGroup announced plans to pay a quarterly cash
    dividend to common shareholders beginning in the second quarter of 2013;
    and
  *On January 11, 2013, SemGroup's Master Limited Partnership, Rose Rock
    Midstream, acquired a 33.3% interest in SemCrude Pipeline, L.L.C., which
    owns 51% of White Cliffs Pipeline L.L.C., for $273.9 million.

Earnings Conference Call

SemGroup will host a joint conference call with Rose Rock Midstream, L.P.
(NYSE:RRMS) for investors tomorrow, March 1, 2013, at 11 a.m. EST. The call
can be accessed live over the telephone by dialing 877.359.3652, or for
international callers, 720.545.0014. The pass code for the call is 88748209.
Interested parties may also listen to a simultaneous webcast of the conference
call by logging onto SemGroup's Investor Relations website at
ir.semgroupcorp.com. A replay of the webcast will also be available for a year
following the call at ir.semgroupcorp.com on the Calendar of Events-Past
Events page. The fourth quarter and full year 2012 earnings slide deck will be
posted under Presentations.

About SemGroup

Based in Tulsa, OK, 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 and asphalt. Services include
purchasing, selling, processing, transporting, terminalling and storing
energy.

SemGroup^®, SemGas^®, SemMaterialsMèxico^MR, SemStream^® and White Cliffs
Pipeline^® are registered trademarks of SemGroup Corporation.

The SemGroup Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=14815

Non-GAAP Financial Measures

Adjusted EBITDA is not a generally accepted accounting principles (GAAP)
measure and is not intended to be used in lieu of a GAAP presentation of net
income/loss. Adjusted EBITDA is presented in this Press Release because
SemGroup believes it provides additional information with respect to its
financial performance and its ability to meet future debt service, capital
expenditures and working capital requirements. Adjusted EBITDA represents
earnings before interest, taxes, depreciation and amortization, adjusted for
selected items that SemGroup believes impact the comparability of financial
results between reporting periods. Although SemGroup presents selected items
that it considers in evaluating its performance, you should also be aware that
the items presented do not represent all items that affect comparability
between the periods presented. Variations in SemGroup's operating results are
also caused by changes in volumes, prices, exchange rates, mechanical
interruptions and numerous other factors. These types of variances are not
separately identified in this Press Release. Because all companies do not use
identical calculations, SemGroup's presentation of Adjusted EBITDA may be
different from similarly titled measures of other companies. Reconciliations
of net income (loss) to Adjusted EBITDA for the periods presented are included
in the tables at the end of this Press Release.

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 Section21E 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 including the prospects of our industry, our anticipated
financial performance, NGL Energy Partners LP (NYSE:NGL) anticipated financial
performance, management's plans and objectives for future operations, business
prospects, outcome of regulatory proceedings, market conditions and other
matters, 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, but are not limited
to, our ability to comply with the covenants contained in and maintain certain
financial ratios required by our credit facilities; NGL's operations, which we
do not control; the ability of our subsidiary, Rose Rock Midstream L.P.
(NYSE:RRMS), to make minimum quarterly distributions; the possibility that our
hedging activities may result in losses or may have a negative impact on our
financial results; any sustained reduction in demand for the petroleum
products we gather, transport, process and store; our ability to obtain new
sources of supply of petroleum products; our failure to comply with new or
existing environmental laws or regulations or cross border laws or
regulations; the possibility that the construction or acquisition of new
assets may not result in the corresponding anticipated revenue increases;
changes in currency exchange rates; and the risks and uncertainties of doing
business outside of the U.S., including political and economic instability and
changes in local governmental laws, regulations and policies, as well as other
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.

Condensed Consolidated Balance Sheets
(in thousands, unaudited)
                                                     
                                                     
                                         December 31, December 31,
                                          2012         2011
ASSETS                                                
Current assets                            $520,003   $389,735
Property, plant and equipment, net        814,724      733,925
Goodwill and other intangible assets      17,469       18,403
Equity method investments                 387,802      327,243
Other noncurrent assets, net              8,181        21,875
Total assets                              $1,748,179 $1,491,181
LIABILITIES AND OWNERS' EQUITY                        
Current liabilities:                                  
Current portion of long-term debt         $24        $26,058
Other current liabilities                 374,320      270,453
Total current liabilities                 374,344      296,511
Long-term debt, excluding current portion 206,062      83,277
Other noncurrent liabilities              146,245      132,728
Total liabilities                         726,651      512,516
Total owners' equity                      1,021,528    978,665
Total liabilities and owners' equity      $1,748,179 $1,491,181


Condensed Consolidated Statements of Operations
(in thousands, except per share amounts, unaudited)
                                                             
                                                             
                   Three Months Ended               Year Ended
                   December 31,          September  December 31,
                                          30,
                   2012       2011       2012       2012         2011
Revenues            $315,837 $330,159 $277,852 $1,237,497 $1,465,246
Expenses:                                                     
Costs of products
sold, exclusive of
depreciation and    223,602   247,568   189,830   874,885     1,144,439
amortization shown
below
Operating           51,950    38,657    52,367    224,700     155,041
General and         18,845    19,004    16,680    71,918      75,447
administrative
Depreciation and    12,523    11,468    12,081    48,210      49,823
amortization
(Gain) loss on
disposal or
impairment of       (35)      437       (3,615)   (3,531)     301
long-lived assets,
net
Total expenses      306,885   317,134   267,343   1,216,182   1,425,051
Earnings from
equity method       13,133    4,838     3,116     36,036      15,004
investments
Operating income    22,085    17,863    13,625    57,351      55,199
Other expenses, net 5,567     13,822    11,701    30,471      45,149
Income from
continuing          16,518    4,041     1,924     26,880      10,050
operations before
income taxes
Income tax          (3,066)   (5,592)   2,092     (2,078)     (2,310)
(benefit) expense
Income (loss) from
continuing          19,584    9,633     (168)     28,958      12,360
operations
Income (loss) from
discontinued        3,392     (8,893)   (264)     2,939       (9,548)
operations, net of
income taxes
Net income (loss)   22,976    740       (432)     31,897      2,812
Less: net income
attributable to     1,882     435       2,336     9,797       435
noncontrolling
interests
Net income (loss)
attributable to     $21,094  $305     $(2,768) $22,100    $2,377
SemGroup
Corporation
Net income (loss)
attributable to     $21,094  $305     $(2,768) $22,100    $2,377
SemGroup
Corporation
Other comprehensive
income (loss), net  (2,354)   (3,525)   12,072    12,576      (14,990)
of income taxes
Comprehensive
income (loss)
attributable to     $18,740  $(3,220) $9,304   $34,676    $(12,613)
SemGroup
Corporation
Net income (loss)                                             
per common share:
Basic               $0.50    $0.01    $(0.07)  $0.53      $0.06
Diluted             $0.50    $0.01    $(0.07)  $0.52      $(0.06)
Weighted average                                              
shares (thousands):
Basic               41,960     41,698     41,949     41,939       41,640
Diluted             42,303     41,890     42,234     42,254       41,640
                                                             

Reconciliation of net income to Adjusted EBITDA:
(in thousands, unaudited)
                                                              
                    Three Months Ended                Year Ended
                   December 31,          September   December 31,
                                           30,
                   2012       2011       2012        2012        2011
Net income (loss)    $22,976  $740     $(432)    $31,897   $2,812
Add: Interest        1,139     10,817    1,992      8,902      60,138
expense
Add: Income tax      (3,066)   (5,592)   2,092      (2,078)    (2,310)
(benefit) expense
Add: Depreciation
and amortization     12,523    11,468    12,081     48,210     49,823
expense
EBITDA               33,572    17,433    15,733     86,931     110,463
Selected Non-Cash
Items and Other      10,080    14,399    17,204     48,034     5,082
Items Impacting
Comparability
Adjusted EBITDA      $43,652  $31,832  $32,937   $134,965  $115,545
                                                              
Selected Non-Cash Items and Other Items Impacting Comparability
(in thousands, unaudited)
                                                              
                                                              
                   Three Months Ended              Year Ended
                   December 31,        September  December 31,
                                           30,
                   2012      2011      2012       2012      2011
(Gain) loss on
disposal or
impairment of        $(35)    $437     $(3,615)  $(3,531)  $301
long-lived assets,
net
Loss (income) from
discontinued         (3,392)   8,893     264        (2,939)    9,548
operations, net of
income taxes ^(1)
Foreign currency
transaction (gain)   (60)      (20)      355        298        (3,450)
loss
Remove NGL equity    (1,747)   —        6,905      403        —
(earnings) losses
NGL cash             4,155     —        2,090      9,218      —
distribution
Employee severance   —        —        —         354        4,374
expense
Unrealized (gain)
loss on derivative   1,628     (4,720)   (554)      1,196      (14,114)
activities
Change in fair value 4,227     3,246     9,544      21,310     (5,012)
of warrants
Reversal of
allowance on goods   —        —        —         —         (4,144)
and services tax
receivable
Depreciation and
amortization
included within      2,550     2,663     2,546      10,181     10,630
equity earnings of
White Cliffs
Defense costs        —        1,000     —         5,899      1,000
Recovery of
receivable from AGE  —        (1,792)   —         —         (2,692)
Refining
Recovery of
receivables written  1,082     —        (1,940)    (858)      —
off at emergence
Non-cash equity      1,672     4,692     1,609      6,503      8,641
compensation
Selected Non-Cash
Items and Other      $10,080  $14,399  $17,204   $48,034   $5,082
Items Impacting
Comparability
                                                              
(1) SemStream Arizona has been reported as a discontinued operation at
December 31, 2012. Prior periods have been recast to conform with the current
presentation.


2013 Adjusted EBITDA Guidance
(in millions, unaudited)
                                     Guidance ^(1)
                                     Low                       High
Net income                            $68.6                   $72.1
Add: Interest expense                 19.0                     20.0
Add: Income tax expense               6.0                      6.5
Add: Depreciation and amortization    55.0                     60.0
EBITDA                                $148.6                  $158.6
Selected Non-Cash Items and Other     16.4                     16.4
Items Impacting Comparability
Adjusted EBITDA                       $165.0                  $175.0
Selected Non-Cash Items and Other                              
Items Impacting Comparability
Depreciation and amortization                      $10.1      
included within equity earnings
Non-cash equity compensation                       6.3          
Selected Non-Cash Items and Other                  $16.4      
Items Impacting Comparability
                                                              
(1) Guidance is on a cash basis for equity investments including NGL, White
Cliffs Pipeline and Glass Mountain Pipeline and includes fully consolidated
Rose Rock Midstream.

CONTACT: Investor Relations:
         Mary Catherine Ward
         918-524-8081
         investor.relations@semgroupcorp.com
        
         Media:
         Kiley Roberson
         918-524-8594
         kroberson@semgroupcorp.com

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