SemGroup Corporation Reports First Quarter 2013 Results

SemGroup Corporation Reports First Quarter 2013 Results

           Announces Initial Quarterly Dividend of $0.19 Per Share

TULSA, Okla., May 8, 2013 (GLOBE NEWSWIRE) -- SemGroup^® Corporation
(NYSE:SEMG) (SemGroup) today announced its financial results for the three
months ended March 31, 2013 and the board of directors of SemGroup has also
declared a quarterly cash dividend to common shareholders of $0.19 per share.
Initiated in the second quarter of 2013, this equates to $0.76 per share
annually. The company is targeting a 10% increase in dividends paid in 2013
and anticipates a double-digit annual dividend growth rate for the next three
years. The dividend will be paid on May 30, 2013 to all common shareholders of
record on May 20, 2013.

"We're off to a solid start in 2013 and pleased to be offering a cash dividend
to our shareholders. This dividend complements our continued growth story and
is an important part of our commitment to shareholders," said Norm Szydlowski,
president and chief executive officer of SemGroup. "We are excited about our
growth opportunities, most notably our recently announced agreement to acquire
Chesapeake's gas gathering and processing assets in the Mississippi Lime play.
These new assets will increase our size and strategic position in the area and
help us create additional value for our shareholders."

SemGroup's adjusted earnings before interest, taxes, depreciation and
amortization (Adjusted EBITDA) was $35.5 million for the first quarter 2013,
compared to $43.7 million for the fourth quarter 2012 and $28.1 million for
the first quarter 2012, a decrease of 19% and an increase of 26%,
respectively. Adjusted EBITDA, which is a non-GAAP measure, is reconciled to
net income below.

First Quarter Highlights

  *On January 11, 2013, Rose Rock Midstream acquired a 33.3% interest in
    SemCrude Pipeline, L.L.C., which owns 51% of White Cliffs Pipeline,
    L.L.C.;
  *Crude marketing margins increased due to improved crude oil market
    conditions;
  *SemGas margins increased due to higher NGL prices, although volumes were
    down modestly;
  *SemCAMS saw a decrease in Adjusted EBITDA due primarily to timing of
    maintenance capital recovery fees as compared to the prior quarter and a
    decrease in volumes was driven by an unplanned shutdown at the K3 plant;
    and
  *SemMaterials Mexico experienced lower demand in the first quarter due to a
    decrease in government spending resulting from the change in
    administration.

SemGroup reported revenues for first quarter 2013 of $287.7 million with net
income attributable to SemGroup of $43.4 million, or a $1.03 per diluted
share, compared to revenues of $315.8 million with a net income attributable
to SemGroup of $21.1 million, or $0.50 per diluted share, for the fourth
quarter 2012. For the first quarter 2012, revenues totaled $312.0 million with
net loss of $1.4 million, or a loss of $0.03 per diluted share. Net income for
the first quarter of 2013 was positively impacted by an income tax benefit of
$54 million due to the release of a valuation allowance on our deferred tax
assets. Net income was negatively affected by a non-cash expense of $25.8
million related to a change in the fair value of warrants.

2013 Guidance

SemGroup reaffirms 2013 consolidated Adjusted EBITDA guidance of $165 million
to $175 million, an increase of approximately 25% over 2012 results of $135
million. The company is on track to spend $400 million in capital investments
in 2013, excluding the capital spending related to the proposed acquisition of
Chesapeake's Mississippi Lime gas gathering and processing assets.

Earnings Conference Call

SemGroup will host a joint conference call with Rose Rock Midstream, L.P.
(NYSE:RRMS) for investors tomorrow, May 9, 2013, at 11 a.m. EDT. 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 34090290.
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 first quarter 2013 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^®, SemMaterials Mexico^MR, SemStream^® and White Cliffs
Pipeline^® are registered trademarks of SemGroup Corporation.

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 our
performance. 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, thereby diminishing its utility.
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 Section 21E 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)                               

                                         March 31, 2013 December 31, 2012
ASSETS                                                  
Current assets                            $ 519,657      $ 520,003
Property, plant and equipment, net        817,141        814,724
Goodwill and other intangible assets      17,934         17,469
Equity method investments                 423,507        387,802
Other noncurrent assets, net              30,969         8,181
Total assets                              $ 1,809,208    $ 1,748,179
LIABILITIES AND OWNERS' EQUITY                          
Current liabilities:                                    
Current portion of long-term debt         $ 4,567        $ 24
Other current liabilities                 375,715        374,320
Total current liabilities                 380,282        374,344
Long-term debt, excluding current portion 176,056        206,062
Other noncurrent liabilities              166,476        146,245
Total liabilities                         722,814        726,651
Total owners' equity                      1,086,394      1,021,528
Total liabilities and owners' equity      $ 1,809,208    $ 1,748,179

                                                               
Condensed Consolidated Statements of                            
Operations
(in thousands, except per share amounts,                        
unaudited)
                                                               
                                            Three Months Ended
                                            March 31,            December 31,
                                            2013      2012       2012
Revenues                                     $ 287,696 $ 312,031  $ 315,837
Expenses:                                                       
Costs of products sold, exclusive of         212,369   241,521    223,602
depreciation and amortization shown below
Operating                                    40,771    37,991     51,950
General and administrative                   17,037    19,830     18,845
Depreciation and amortization                12,636    11,725     12,523
Gain on disposal of long-lived assets, net   (162)     —          (35)
Total expenses                               282,651   311,067    306,885
Earnings from equity method investments      17,345    7,498      13,133
Operating income                             22,390    8,462      22,085
Other expenses, net                          27,862    7,616      5,567
Income (loss) from continuing operations     (5,472)   846        16,518
before income taxes
Income tax benefit                           (54,006)  (1,012)    (3,066)
Income from continuing operations            48,534    1,858      19,584
Income from discontinued operations, net of  32        252        3,392
income taxes ^(1)
Net income                                   48,566    2,110      22,976
Less: net income attributable to             5,143     3,483      1,882
noncontrolling interests
Net income (loss) attributable to SemGroup   $ 43,423  $(1,373) $ 21,094
Corporation
Net income (loss) attributable to SemGroup   $ 43,423  $(1,373) $ 21,094
Corporation
Other comprehensive income (loss), net of    (5,058)   12,755     (2,354)
income taxes
Comprehensive income attributable to         $ 38,365  $ 11,382   $ 18,740
SemGroup Corporation
Net income (loss) per common share:                             
Basic                                        $ 1.03    $(0.03)  $ 0.50
Diluted                                      $ 1.03    $(0.03)  $ 0.50
Weighted average shares (thousands):                            
Basic                                        42,070    41,907     41,960
Diluted                                      42,346    42,055     42,303
                                                               
(1) SemStream Arizona was sold on December 31, 2012.
Prior periods have been recast to reflect its results as discontinued
operations.

Reconciliation of net income to Adjusted                        
EBITDA:
(in thousands, unaudited)                                       
                                                               
                                             Three Months Ended
                                             March 31,           December 31,
                                             2013      2012      2012
Net income                                    $48,566 $2,110  $22,976
Add: Interest expense                         2,396     3,659     1,139
Add: Income tax benefit                       (54,006)  (1,012)   (3,066)
Add: Depreciation and amortization expense    12,636    11,725    12,523
EBITDA                                        9,592     16,482    33,572
Selected Non-Cash Items and Other Items       25,911    11,630    10,080
Impacting Comparability
Adjusted EBITDA                               $35,503 $28,112 $43,652
                                                               
                                                               
Selected Non-Cash Items and                                     
Other Items Impacting Comparability                             
(in thousands, unaudited)                                       
                                                               
                                                               
                                             Three Months Ended
                                             March 31,           December 31,
                                             2013      2012      2012
Gain on disposal of long-lived assets, net    $(162)  $—      $(35)
Income from discontinued operations, net of   (32)      (252)     (3,392)
income taxes ^(1)
Foreign currency transaction (gain) loss      (167)     37        (60)
Remove NGL equity earnings                    (6,916)   (927)     (1,747)
NGL cash distribution                         4,272     1,160     4,155
Employee severance expense                    —         381       —
Unrealized (gain) loss on derivative          (468)     146       1,628
activities
Change in fair value of warrants              25,796    3,987     4,227
Depreciation and amortization included within 2,405     2,541     2,550
equity earnings of White Cliffs
Defense costs                                 —         3,000     —
Recovery of receivables written off at        —         —         1,082
emergence
Non-cash equity compensation                  1,183     1,557     1,672
Selected Non-Cash Items and Other Items       $25,911 $11,630 $10,080
Impacting Comparability
                                                               
(1) SemStream Arizona was sold on December 31, 2012.
Prior periods have been recast to reflect its results as discontinued
operations.

                                      

2013 Adjusted EBITDA Guidance                                        
(in millions, unaudited)                                Guidance^(1)
                                                       Low           High
Net income                                              $ 96.2        $ 99.7
Add: Interest expense                                   19.0          20.0
Add: Income tax benefit                                 (47.4)        (46.9)
Add: Depreciation and amortization                      55.0          60.0
EBITDA                                                  $ 122.8       $ 132.8
Selected Non-Cash Items and Other Items Impacting       42.2          42.2
Comparability
Adjusted EBITDA                                         $ 165.0       $ 175.0
                                                                    
                                                                    
Selected Non-Cash Items and Other Items Impacting                    
Comparability
Depreciation and amortization included within equity           $ 10.1 
earnings
Change in fair value of warrants                               25.8   
Non-cash equity compensation                                   6.3    
Selected Non-Cash Items and Other Items Impacting              $ 42.2 
Comparability
                                                                    
(1) Guidance is on a cash basis for equity investments in NGL, and includes
fully
consolidated Rose Rock Midstream and excludes the recently proposed CHK
acquisition.


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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