TULSA, Okla., Oct. 10, 2012 (GLOBE NEWSWIRE) -- SemGroup® Corporation (NYSE:SEMG), and Gavilon, LLC, today announced that each has completed the acquisition of a 25 percent share of Glass Mountain Pipeline LLC previously owned by an affiliate of Chesapeake Energy Corporation (NYSE:CHK). Following this purchase, SemGroup Corporation now owns 50 percent of Glass Mountain Pipeline; the remaining 50 percent of the pipeline is now owned by Gavilon. Chesapeake will maintain its long-term transportation agreement with Glass Mountain Pipeline, providing the economic incentive for its construction.
The Glass Mountain Pipeline will have an initial capacity of approximately 140,000 barrels per day and 440,000 barrels of intermediate storage. The pipeline will consist of two laterals. One lateral will originate near the town of Alva in Woods County, Oklahoma. The second lateral will originate near the town of Arnett in Ellis County, Oklahoma. The pipeline will increase in diameter where the laterals intersect near Cleo Springs in Major County, Oklahoma and continue east to Cushing, Oklahoma. The pipeline will terminate at Gavilon's Cushing facility, where the joint venture will own one million barrels of crude oil storage. Following pipeline construction, Rose Rock Midstream, LP (NYSE:RRMS), SemGroup's master limited partnership, will serve as the pipeline operator.
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.
SemGroup®, is a registered trademark of SemGroup Corporation.
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About Rose Rock Midstream
Rose Rock Midstream, L.P. (NYSE:RRMS) is a growth-oriented Delaware limited partnership recently formed by SemGroup® Corporation to own, operate, develop and acquire a diversified portfolio of midstream energy assets. Rose Rock Midstream provides crude oil gathering, transportation, storage and marketing services. Headquartered in Tulsa, OK, Rose Rock Midstream has operations in six different states with the majority of its assets strategically located in or connected to the Cushing, Oklahoma crude oil marketing hub.
About Chesapeake Energy Corporation
Chesapeake Energy Corporation (NYSE:CHK) is the second-largest producer of natural gas, a Top 15 producer of oil and natural gas liquids and the most active driller of new wells in the U.S. Headquartered in Oklahoma City, the company's operations are focused on discovering and developing unconventional natural gas and oil fields onshore in the U.S. Chesapeake owns leading positions in the Eagle Ford, Utica, Granite Wash, Cleveland, Tonkawa, Mississippi Lime and Niobrara unconventional liquids plays and in the Marcellus, Haynesville/Bossier and Barnett unconventional natural gas shale plays. The company also owns substantial marketing and oilfield services businesses through its subsidiaries Chesapeake Energy Marketing, Inc. and Chesapeake Oilfield Services, L.L.C. Further information is available at www.chk.com where Chesapeake routinely posts announcements, updates, events, investor information, presentations and news releases.
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About Gavilon, LLC
Gavilon, LLC is a subsidiary of The Gavilon Group, LLC. The Gavilon Group is a leading commodity management firm, connecting producers and consumers of feed, food and fuel through its global supply chain network. Gavilon leverages its strategic partnerships and more than 300 facilities and regional offices worldwide to link agricultural and energy supply with demand. The company provides origination, storage and handling, transportation and logistics, marketing and distribution, and risk management services to tens of thousands of customers each year. Headquartered in Omaha, Nebraska, Gavilon employs 2,000 people around the world and is ranked America's nineteenth largest private company by Forbes. For more information, please visit www.gavilon.com.
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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;Gavilon, LLC