Tulsa, OK, July 23, 2010, SemGroup® Corporation (“SemGroup”), a midstream energy company, today announced first quarter 2010 earnings in filing a Form 10 Amendment No. 2 with the U.S. Securities and Exchange Commission (“SEC”). The amended Form 10 is in response to comments received from the SEC.
"We are continuing to make progress on becoming a publicly-traded company" said President and Chief Executive Officer Norman Szydlowski. "We are working with both the SEC and the New York Stock Exchange in anticipation of listing our Class A shares before year-end. At the same time, we are focusing on execution of our business plan.”
First Quarter 2010 Financial Results
SemGroup today reported net income attributable to SemGroup of $9.1 million, or $0.20 per diluted share, for the first quarter of 2010, as compared to a net loss attributable to SemGroup of $89.8 million for the first quarter of 2009. SemGroup reported adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) of $54.3 million for the first quarter of 2010, compared with a reported adjusted loss before interest, taxes, depreciation, and amortization of $14.7 million for the same period of 2009. (See the section of the release entitled “Non-GAAP Financial Measures” for a discussion on Adjusted EBITDA and a reconciliation of such measure to net income attributable to SemGroup.)
SemGroup reported revenues of $476.0 million for the three months ended March 31, 2010, compared to revenues of $282.5 million for the first three months of 2009. Operating income for the first three months of 2010 was $24.5 million, compared to $3.9 million for the same period of 2009. The results of operations of SemCAMS and SemCanada Crude are excluded from the first three months of 2009 as these two entities were not consolidated by SemGroup during this period. Operating results were favorably impacted by seasonally higher natural gas liquids margins during the first quarter of 2010.
Recent Developments
During the second quarter of 2010, SemCanada Crude experienced unfavorable market conditions which adversely impacted the segment’s profitability. As a result, SemGroup tested the goodwill and intangible assets attributable to SemCanada Crude for impairment as of May 31, 2010, and an impairment was recorded for second quarter 2010. The Company is currently reviewing strategic and restructuring options available to SemGroup with respect to this business unit.
In light of our Form 10 filing process with the SEC, we will not hold a quarterly conference call to discuss the information presented in these documents. We anticipate our second quarter 2010 numbers will be released subject to the timing of the registration process.
Today’s SemGroup Form 10 filing can be found on the Company’s website, www.semgroupcorp.com, under the heading “Investor Relations” and within the section entitled “SEC Filings”, or by searching the website of the U.S. Securities and Exchange Commission, http://www.sec.gov/search/search.htm using the Company’s name. In addition, a presentation based on the information in today’s press release may be found on our website under the heading “Investor Relations/Financial News & Events”.
About SemGroup
Based in Tulsa, OK, SemGroup® Corporation is a 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® is a registered trademark of SemGroup Corporation.
Non-GAAP Financial Measures
Adjusted EBITDA is presented in this release for the three month periods ended March 31, 2010 and 2009. 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. Adjusted EBITDA is presented in this 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 income, 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 release.
A reconciliation of net income to EBITDA and adjusted EBITDA for the periods presented in included in the tables attached to this release.
Forward-Looking Statement
This press release contains statements that we believe are, or may be considered to be, forward-looking statements. All statements, other than statements of historical fact, included in this press release regarding the prospects of our industry or our prospects, plans, financial position or business strategy may constitute forward-looking statements. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, we cannot be certain 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, those discussed in the section entitled “Risk Factors” set forth in Item 1A of the Company’s Form 10. Except as required by law, the Company undertakes no obligation to revise or publicly release the results of any revision to any forward-looking statements.
Schedules
Contacts:
Jennifer Gordon
918-524-8081
investor.relations@semgroupcorp.com
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