This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

SemGroup Completes Contribution Of SemStream Assets To NGL Energy Partners

SemGroup ® Corporation (NYSE: SEMG) today announced that it has completed its contribution of the company’s SemStream ®, L.P. business into NGL Energy Partners LP (NYSE: NGL) in exchange for cash and equity interests. This transaction is intended to enhance SemGroup’s investment in natural gas liquids, create additional opportunities for growth and strengthen SemGroup’s financial profile through increased earnings.

As previously announced, all assets of SemStream, L.P. were incorporated in this contribution excluding those of SemStream Arizona Propane, L.L.C. In exchange for these assets, SemGroup Corporation received the following:
  • 8.93 million common units of NGL Energy Partners stock, representing an approximately one third equity interest in the limited partnership:
  • 7.5 percent equity interest in the General Partner of NGL Energy Partners;
  • A cash payment of up to $100,000,000 for working capital, subject to adjustment; and
  • Two seats on the board of directors of the general partner of NGL Energy Partners.

“We are pleased to report on the closing of this transaction which we believe demonstrates the benefits that the NGL MLP structure can deliver for our shareholders,” said Norman Szydlowski, SemGroup President and Chief Executive Officer. “By contributing our SemStream assets to NGL, we are confident that we will improve the stability of SemGroup’s cash flows, reduce earnings volatility, increase earnings and create an additional platform for growth.”

Mr. Szydlowski continued, “Our future cash flows will be derived from the quarterly distributions we receive from NGL Energy Partners. In essence, this transaction converts a seasonal cash flow into a stable distribution leveraged towards growth. As part of the transaction, we will also own 7.5% of the General Partner and associated incentive distribution rights, which means we will receive increasing percentages of cash distributed from operations as the partnership meets certain thresholds,” added Mr. Szydlowski.

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,084.49 +33.74 0.20%
S&P 500 2,013.43 +15.91 0.80%
NASDAQ 4,830.47 +19.6820 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs