TULSA, Okla., Jan. 26, 2015 (GLOBE NEWSWIRE) -- SemGroup® Corporation (NYSE:SEMG) today issued the following statement in response to an open letter issued today by Sandell Asset Management Corporation ("Sandell"):
The SemGroup Board of Directors and management team remain open to constructive input from, and seek to maintain an open dialogue with, all SemGroup stockholders. SemGroup regularly engages with its stockholders, including Sandell, and welcomes investor feedback. SemGroup is committed to acting in the best interests of all stockholders and has a demonstrated record of taking decisive actions to drive stockholder value creation.
The SemGroup Board and management team continually review the Company' s strategic priorities and opportunities, including the Company's portfolio, business strategy and other potential avenues to create additional shareholder value. To that end, SemGroup remains on track with its planned drop down strategy, including dropping the remainder of its crude oil assets into its MLP, Rose Rock Midstream, during the first quarter of 2015. As previously discussed, SemGroup also intends to drop down its U.S. gas assets in the near future.
Furthermore, since Carlin Conner joined SemGroup as chief executive in April 2014, the Company has significantly increased its quarterly dividend and made substantial progress in achieving regional and segment diversification. Additional accomplishments since April 2014 include:
- Completed of the doubling of capacity on the White Cliffs Pipeline from the Denver-Julesburg Basin to SemGroup's terminal in Cushing, Oklahoma.
- Acquired Chesapeake Energy's field services business in several key producing basins.
- Expanded SemGroup's U.S. gas processing position in the Mississippi Lime play of Northern Oklahoma and accelerated the implementation of a new 200 mmcf/d plant by nine months to mid-2015.
- Increased the quarterly cash distribution at Rose Rock Midstream.
The SemGroup Board is mindful of its obligations to stockholders and will carefully consider the recent letter from Sandell. However the Board does not intend to pursue actions that do not create additional value for its stockholders or would be harmful to the business. Consistent with the Board's historical approach, the Board will continue to assess its strategy and consider opportunities for additional or greater shareholder value creation.
Wachtell, Lipton, Rosen & Katz is serving as legal counsel to 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, terminaling and storing energy.
Certain matters contained in this press release include "forward-looking statements" within the meaning of Section 27A of the Securities Act 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 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 are discussed from time to time in each of our documents and reports filed with the Securities and Exchange Commission.
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.
CONTACT: Investor Relations: Alisa Perkins SemGroup - 918-524-8081 email@example.com Media: Kiley Roberson 918-524-8594 firstname.lastname@example.org or Andrew Siegel / James Golden / Joe Crisci Joele Frank, Wilkinson Brimmer Katcher 212-355-4449