SemGroup Corporation Reports Fourth Quarter and Full Year 2013 Results

SemGroup Corporation Reports Fourth Quarter and Full Year 2013 Results

                Adjusted EBITDA Increased 40% Year-Over-Year;

             2014 Adjusted EBITDA Guidance $245 to $265 Million;

                       2014 Capex Guidance $415 Million

TULSA, Okla., Feb. 27, 2014 (GLOBE NEWSWIRE) -- SemGroup^® Corporation
(NYSE:SEMG) today announced its financial results for the three months and
year ended December 31, 2013.

SemGroup's adjusted earnings before interest, taxes, depreciation and
amortization (Adjusted EBITDA) was $57.8 million for the fourth quarter 2013,
compared to $52.1 million for the third quarter 2013 and $43.7 million for the
fourth quarter 2012, an increase of 11% and 32%, respectively. Adjusted
EBITDA, which is a non-GAAP measure, is reconciled to net income (loss) below.

"2013 was an excellent year for our company. We continued a multi-quarter
trend of strong results," said Norm Szydlowski, president and chief executive
officer of SemGroup. "These results reflect the strength of our strategic plan
and asset base. Looking to 2014, 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 2013 Adjusted EBITDA Highlights

Compared to the Third Quarter 2013

  *Crude's results increased $5.9 million
    —$3.5 million increase in marketing due to higher volumes
    — 15% increase in White Cliffs Pipeline volumes
  *SemGas increased $1.9 million
    —Largely related to Northern Oklahoma processing volumes increase of 9.5%
    due to additional production
  *SemCAMS decreased $2.2 million
    —Primarily due to pipeline curtailments and lower volumes

SemGroup reported revenues for fourth quarter 2013 of $457.3 million with net
income attributable to SemGroup of $3.3 million, or $0.08 per diluted share,
compared to revenues of $357.7 million with a net loss attributable to
SemGroup of $1.9 million, or $(0.05) per diluted share, for the third quarter
2013. For the fourth quarter 2012, revenues totaled $315.8 million with net
income attributable to SemGroup of $21.1 million, or $0.50 per diluted share.

Full Year 2013 Highlights

  *SemGroup invested approximately $400 million in growth projects
  *SemGroup completed three acquisitions for nearly $360 million
  *Initiated and increased SemGroup dividends by 16%
  *Major projects remain on time and on budget
  *Many existing assets operating at or near capacity
  *Completed two drop downs to Rose Rock Midstream

Adjusted EBITDA for the year ended December 31, 2013, totaled $189.0 million,
up 40% from $135.0 million for the year ended December 31, 2012. For the year
ended December 31, 2013, SemGroup reported revenues of $1.4 billion with a net
income attributable to SemGroup of $48.1 million, or $1.13 per diluted share,
compared to revenues of $1.2 billion with a net income attributable to
SemGroup of $22.1 million, or $0.52 per diluted share, for the year ended
December 31, 2012.

Dividend

The SemGroup board of directors declared a quarterly cash dividend to common
shareholders of $0.22 per share, resulting in an annualized distribution of
$0.88 per share. This represents a 5% increase from the previous quarterly
dividend of $0.21. The dividend will be paid on March 20, 2014 to all common
shareholders of record on March 10, 2014.

2014 Adjusted EBITDA and Capex Guidance

SemGroup anticipates 2014 consolidated Adjusted EBITDA of $245 million to $265
million, an increase of approximately 35% over 2013 results of $189.0 million.
The company also expects to deploy $415 million in capital investments in
2014, with more than 85% allocated to growth projects.

Recent Updates

SemGroup announces plans to extend its current Wattenberg Oil Trunkline (WOT)
in the DJ Basin in Colorado. The extension will further support the
transportation of Noble Energy's crude oil production from the wellhead.

The project will include a 38-mile, 12-inch pipeline extension, as well as
150,000 barrels of operational storage. The pipeline will expand northeast
from the current WOT, connecting Noble Energy's East Pony processing
facilities in the northeast part of the DJ Basin. Rose Rock Midstream will
continue to operate the pipeline and deliver to its Platteville Station, the
origin point of White Cliffs Pipeline.

Noble Energy has entered into a long-term agreement to use the asset. The
project is expected to be operational in the fourth quarter of 2014.

Earnings Conference Call

SemGroup will host a joint conference call with Rose Rock Midstream^®, L.P.
(NYSE:RRMS) for investors tomorrow, February 28, 2014, at 11 a.m. ET. 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 31052519.
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 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 uses its Investor Relations website and social media outlets as
channels of distribution of material company information. Such information is
routinely posted and accessible on our Investor Relations website at
ir.semgroupcorp.com, our Twitter account and LinkedIn account.

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
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, our anticipated annual dividend growth rate, 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, the factors
discussed above; our ability to comply with the covenants contained in the
instruments governing our indebtedness and to 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,
                                         2013         2012
ASSETS                                                 
Current assets                            $534,014    $520,003
Property, plant and equipment, net        1,105,728     814,724
Goodwill and other intangible assets      236,859       17,469
Equity method investments                 565,124       387,802
Other noncurrent assets, net              28,889        8,181
Total assets                              $2,470,614  $1,748,179
LIABILITIES AND OWNERS' EQUITY                         
Current liabilities:                                   
Current portion of long-term debt         $37         $24
Other current liabilities                 499,177       374,320
Total current liabilities                 499,214       374,344
Long-term debt, excluding current portion 615,088       206,062
Other noncurrent liabilities              142,449       146,245
Total liabilities                         1,256,751     726,651
Total owners' equity                      1,213,863     1,021,528
Total liabilities and owners' equity      $2,470,614  $1,748,179
                                                      
                                                      

Condensed Consolidated Statements of Operations
(in thousands, except per share amounts, unaudited)
                                                             
                   Three Months Ended               Year Ended
                   December 31,          September  December 31,
                                          30,
                   2013       2012       2013       2013         2012
Revenues            $457,328 $315,837 $357,748 $1,427,016 $1,237,497
Expenses:                                                     
Costs of products
sold, exclusive of
depreciation and    339,468    223,602    255,554    1,020,100    874,885
amortization shown
below
Operating           60,772     51,950     52,360     223,585      224,700
General and         23,710     18,845     20,952     78,597       71,918
administrative
Depreciation and    24,846     12,523     16,113     66,409       48,210
amortization
Loss (gain) loss on
disposal of         (109)      (35)       408        (239)        (3,531)
long-lived assets,
net
Total expenses      448,687    306,885    345,387    1,388,452    1,216,182
Earnings from
equity method       12,788     13,133     7,483      52,477       36,036
investments
Gain on issuance of
common units by     26,873     —          —          26,873       —
equity method
investee
Operating income    48,302     22,085     19,844     117,914      57,351
Other expenses, net 17,646     5,567      13,294     69,415       30,471
Income from
continuing          30,656     16,518     6,550      48,499       26,880
operations before
income taxes
Income tax expense  24,051     (3,066)    3,413      (17,254)     (2,078)
(benefit)
Income from
continuing          6,605      19,584     3,137      65,753       28,958
operations
Income (loss) from
discontinued        (6)        3,392      (2)        59           2,939
operations, net of
income taxes
Net income          6,599      22,976     3,135      65,812       31,897
Less: net income
attributable to     3,319      1,882      5,054      17,710       9,797
noncontrolling
interests
Net income (loss)
attributable to     $3,280   $21,094  $ (1,919)  $48,102    $22,100
SemGroup
Corporation
Net income (loss)
attributable to     $3,280   $21,094  $ (1,919)  $48,102    $22,100
SemGroup
Corporation
Other comprehensive
income (loss), net  2,752      (2,354)    6,105      (1,555)      12,576
of income taxes
Comprehensive
income attributable $6,032   $18,740  $4,186   $46,547    $34,676
to SemGroup
Corporation
Net income (loss)                                             
per common share:
Basic               $0.08    $0.50    $ (0.05)   $1.14      $0.53
Diluted             $0.08    $0.50    $ (0.05)   $1.13      $0.52
Weighted average                                              
shares (thousands):
Basic               42,530     41,960     42,528     42,339       41,939
Diluted             42,888     42,303     42,528     42,646       42,254
                                                             
                                                             

Reconciliation of net income to Adjusted EBITDA:
(in thousands, unaudited)
                                                               
                      Three Months Ended                Year Ended
                      December 31,        September 30, December 31,
                      2013      2012      2013          2013       2012
Net income             $6,599  $22,976 $3,135      $65,812  $31,897
Add: Interest expense  9,171     1,139     9,080         25,142     8,902
Add: Income tax        24,051    (3,066)   3,413         (17,254)   (2,078)
expense (benefit)
Add: Depreciation and  24,846    12,523    16,113        66,409     48,210
amortization expense
EBITDA                 64,667    33,572    31,741        140,109    86,931
Selected Non-Cash
Items and Other Items  (6,869)   10,080    20,341        48,909     48,034
Impacting
Comparability
Adjusted EBITDA        $57,798 $43,652 $52,082     $189,018 $134,965
                                                               
                                                               

Selected Non-Cash Items and
Other Items Impacting Comparability
(in thousands, unaudited)
                                                                
                        Three Months Ended                Year Ended
                        December 31,        September 30, December 31,
                        2013      2012      2013          2013      2012
Loss (gain) on disposal
of long-lived assets,    $ (109)   $ (35)    $408        $ (239)   $ (3,531)
net
Loss (income) from
discontinued operations, 6         (3,392)   2             (59)      (2,939)
net of income taxes
Foreign currency         (660)     (60)      (457)         (1,633)   298
transaction loss (gain)
Remove NGL equity
earnings including gain  (26,168)  (1,747)   3,288         (33,996)  403
on issuance of common
units
NGL cash distribution    4,952     4,155     4,671         18,321    9,218
Mid-America Midstream
Gas Services acquisition —         —         3,600         3,600     —
cost
Employee severance       29        —         —             38        354
expense
Unrealized loss (gain)   785       1,628     (464)         (974)     1,196
on derivative activities
Change in fair value of  9,406     4,227     4,834         46,434    21,310
warrants
Depreciation and
amortization included    2,304     2,550     2,407         9,520     10,181
within equity earnings
of White Cliffs
Bankruptcy related       567       —         —             567       —
expenses
Defense costs            —         —         —             —         5,899
Recovery of receivables  —         1,082     —             —         (858)
written off at emergence
Non-cash equity          2,019     1,672     2,052         7,330     6,503
compensation
Selected Non-Cash Items
and Other Items          $ (6,869) $10,080 $20,341     $48,909 $48,034
Impacting Comparability
                                                                
                                                                

2014 Adjusted EBITDA Guidance Reconciliation
                                                                     
(in millions, unaudited)                                   2014 Guidance^(1)
                                                          Low         High
Net income                                                 $79       $93
Add: Interest expense                                      46          48
Add: Income tax expense                                    6           8
Add: Depreciation and amortization                         86          88
EBITDA                                                     $217      $237
Selected Non-Cash and Other Items Impacting Comparability  28          28
Adjusted EBITDA                                            $245      $265
                                                                     
                                                                     
Selected Non-Cash and Other Items Impacting Comparability             
Depreciation and amortization included within equity             18    
earnings
Non-cash equity compensation                                     10    
Selected Non-Cash and Other Items Impacting Comparability        $28 
                                                                     

(1) Guidance is on a cash basis for equity investments in NGL, includes fully
consolidated Rose Rock Midstream

CONTACT: Investor Relations:
         Alisa Perkins
         918-524-8081
         investor.relations@semgroupcorp.com
        
         Media:
         Kiley Roberson
         918-524-8594
         kroberson@semgroupcorp.com

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