Deutsche Bank Leveraged Finance Conference Bob Fitzgerald October 1, 2013
Non-GAAP Financial Measures SemGroup Adjusted EBITDA is presented in this presentation for certain periods. Adjusted EBITDA is not a U.S. generally accepted accounting principles (GAAP) measure and is not intended to be used in lieu…
About SemGroup A diversified midstream services company NYSE Listed - SEMG Headquartered in Tulsa, Oklahoma Operations in U.S., Canada, Mexico, and U.K. 42.5 million shares outstanding Enterprise value of 2.7 billion; market cap…
SemGroup Ownership Structure 5
Business Strategy Capitalize on Organic Generate Consistent Growth Opportunities Operating Margins, with Existing and Earnings and Cash Flows New Assets Grow Our Business Maintain Financial Through Strategic and Flexibility…
Crude and Gas Assets in Key Growth Areas Primary assets located in the Liquids Fairway in the Mid-Continent Region Montney/ Duvernay Shale Montney/Duvernay Bakken Williston Basin Bakken Shale DJ Basin/Niobrara DJ Basin…
SemGroup Corporate Crude Business Overview White Cliffs Pipeline DJ Basin to Cushing, OK 527-mile, 12-inch pipeline 76,000 barrels per day capacity Debottlenecking project - completed June 2013 80,000 barrels per day expansion 2Q…
Rose Rock Midstream Crude Business Overview Cushing KS/OK Pipeline 7.25 million barrels of storage and Storage 96% under long-term fixed fee contracts with third-party customers and one affiliated company with first expiration of…
Rose Rock Midstream Crude Business Overview Bakken Shale Bakken Average marketed volumes of 7,100 barrels per day for FY 2012 Operation Two truck unloading facilities 17 gathering trucks Transport via truck, third-party pipeline or…
Natural Gas Business Overview SemCAMS (Canada) Located in: Western Canadian Sedimentary Basin sour gas Montney Shale liquids rich sour gas Duvernay Shale liquids rich sweet gas Two sour and two sweet natural gas processing plants…
SemGroup Acquisition Mississippi Lime Gas Gathering & Processing 200 miles of gathering pipeline currently in service Rose Valley I plant - 200 mmcf/d cryo plant, 1Q 2014 Rose Valley II plant - 200 mmcf/d cryo plant, 1Q 2016 Capital…
Mississippi Lime Footprint 15
SemGroup Credit Metrics (in millions) June 30, 2013 Senior Secured Debt(1) 66.0 Letters of Credit 4.5 High Yield Bond 300.0 Cash(1) 48.7 Net Debt(1) 321.8 SEMG LTM Adjusted EBITDA(2) 122.1 Credit Metrics Leverage Ratio…
2013 Capex Guidance SemGroup and Rose Rock Midstream 2013 Capital Expenditures 850 million YTD Spend(1) - 141 million Crude - RRMS 432 Crude - SEMG 51% 163 SemGas 46 19% 5% 76 SemCAMS 103 30 9% 12% 4% Other Growth…
SemGroup Corporation 2013 Adjusted EBITDA Guidance 165 to 175 million(1) 2013 Adjusted EBITDA Guidance Assumptions 2013 vs 2012 Adjusted EBITDA Crude (in millions) + Average crude price 93 per barrel RRMS 200 + Full year EBITDA…
Future Growth in Drop Downs Rose Rock Midstreams relationship with SemGroup allows for potential future drop downs Adjusted EBITDA (in millions) Asset Description LTM 527-mile crude oil pipeline - 76,000 bpd capacity White Cliffs…
2013 Goals Safety Maintain strong safety and environmental record Deliver on Financial Targets Achieve Adjusted EBITDA and capex guidance Disciplined Investments Execute 2013 capital program Selectively pursue third-party…
Key Investment Considerations Strategically Located Assets that Provide a Strong Well positioned to add strategic infrastructure in growing Platform for Growth unconventional oil and gas plays SEMG and RRMS investing 850 million…
Q&A
Rose Rock Midstream Ownership Structure 23
Track Record of Value Creation Agreement with Eagle Energy Company to gather and process natural gas in the Mississippi Lime Play Agreement Purchased SemGroup in Oklahoma Contributed finalized for additional dropped down Closed…
SemLogistics Largest independent petroleum products storage facility in U.K. Receive product from the Middle East and Europe and deliver to Europe, West Africa and the United States 8.7 million barrels of storage Two deep water…
SemMaterials Mxico Provide asphalt products and services 15 in-country terminals 2 National labs Importing product to diversify suppliers Diversified customer base 26
SemGroups Fee-based Business Model Adjusted Gross Margin Fixed Fee Variable Fee Marketing Contribution(1) SemGas 8% 92% 87% SemCAMS 100% SemLogistics 100% 9% SemMaterials Mexico 100% 4% White Cliffs Pipeline 100% Rose Rock…
2013 Capex Guidance SemGroup and Rose Rock Midstream 2013 Capital Expenditures 850 million Normalized (USD in millions) Estimated Total Annual EBITDA 2013 Capex 2014 Capex(1) (1) Segment Description Completion Date CapEx…
Cash Distributions NGL Energy Partners LP Rose Rock Midstream, L.P. (NYSE: NGL) (NYSE: RRMS) (in thousands, excluding per unit amounts) (in thousands, excluding per unit amounts) NGL common units owned by SemGroup 9,133 Common units…
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