Pipeline to Support Motiva Enterprises LLC's Gulf Coast Refineries
Increases Inventory of Assets to Drop Down to Rose Rock Midstream in the Future
TULSA, Okla., March 26, 2015 (GLOBE NEWSWIRE) -- SemGroup® Corporation (NYSE:SEMG) today announced plans to construct, own and operate three new pipelines in the U.S. Gulf Coast region of Louisiana, collectively named the Maurepas Pipelines. The Maurepas Pipelines will support Motiva Enterprises LLC's efforts to interconnect and optimize its refinery operations.
"We are pleased to announce our first asset development project in the Gulf Coast region, an important growth area for SemGroup. We are excited to work with Motiva, a Gulf Coast refining leader, to advance its Louisiana refinery integration project," said Carlin Conner, SemGroup chief executive officer. "This $500 million investment will expand SemGroup's scale and customer base, creating a more diversified midstream company while adding to our inventory of assets to drop down to our MLP, Rose Rock Midstream, in the future. We remain focused on expansion projects that create value for our customers, are executed at mid-to-high single digit EBITDA multiples and generate attractive returns for our shareholders."
- 24-inch, 34.2 mile crude oil pipeline connected to LOCAP, crossing the Mississippi River and terminating at Motiva's Norco refinery;
- 12-inch, 35 mile intermediates pipeline between Motiva's Norco and Convent refineries; and
- 6-inch, 34 mile intermediates pipeline between Motiva's Norco and Convent refineries.
This project is supported by long-term transportation agreements with Motiva and is expected to be operational in the fourth quarter of 2016.
Based in Tulsa, Oklahoma, 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.
About Rose Rock Midstream
Rose Rock Midstream®, L.P. (NYSE:RRMS) is a growth-oriented Delaware limited partnership formed by SemGroup® Corporation (NYSE:SEMG) to own, operate, develop and acquire a diversified portfolio of midstream energy assets. Headquartered in Tulsa, OK, Rose Rock Midstream provides crude oil gathering, transportation, storage and marketing services with the majority of its assets strategically located in or connected to the Cushing, Oklahoma crude oil marketing hub.
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 initial capacity and anticipated completion date of the pipeline, 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 possibility that we may encounter construction delays beyond our control, 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.
Source:SemGroup Corporation;Rose Rock Midstream