Bank of America/Merrill Lynch Global Energy Conference November 12, 2010
About SemGroup 3
About SemGroup A diversified midstream services company Began trading on NYSE on Nov. 11 - SEMG 41.4 million shares outstanding Headquartered in Tulsa, Oklahoma Operations in U.S., Canada, Mexico, and U.K. Total assets of 1.8…
SemGroup Operations Flow Gather / Store / Transport / Store / Terminal / Terminal / Market Distribute / Market Producers Refiners & Processors Distributors Our Customers 5
Key Operating Assets 2,800 miles of pipelines 18.1 million barrels of storage capacity 12 NGL terminals Seven natural gas processing plants Owned and leased railcars, trucks and pipeline injection stations 13 liquid asphalt cement…
Well Positioned In Growth Areas Scalable storage capacity at Cushing Interchange Niobrara/Wattenberg White Cliffs Pipeline Bakken Liquids gathering and marketing Mid Continent infrastructure to support producers focus on oil…
2010 Priorities Keep everyone safe Ensure safety of employees, customers, contractors and communities in which we operate Meet and/or exceed regulatory mandates for integrity management programs Allocate resources in support of our…
Growth and Investment Cushing Expansion Capacity New storage capacity placed into service (2008/2009) 4.2 million barrels per day Current construction activity (in service 2010/2011) .8 million barrels per day White Cliffs Pipeline…
Fee-based Business Model Fee for service Throughput and processing fees Gross Margins (fixed fee) Service, storage and terminalling fees (fixed fee) Pipeline tariffs (fixed fee) Percent of proceeds, percent of Marketing Based…
Crude Oil 11
Crude Oil PP&E: 495.9 million* Employees: 82 * As of 6/30/10 Established/ Acquired: 2000 - Dynegy 12
SemCrude Overview Gather, transport, store, market and distribute crude oil Four primary operations: White Cliffs Pipeline Cushing storage facility Kansas and Oklahoma pipeline and storage system North Dakota gathering,…
SemCrude Overview 14
SemCrude White Cliffs Pipeline DJ Basin to the Cushing market Placed in service June 2009 527- mile, crude oil pipeline Platteville, CO to Cushing, OK 12-inch common carrier crude pipeline Initial design capacity: 29,700 barrels…
SemCrude Kansas and Oklahoma Serves Kansas and northern Oklahoma producing regions Primarily fee-based gathering and transportation 620 miles of gathering and transportation pipeline Private pipeline system 2010 average utilization…
SemCrude Kansas and Oklahoma Pipeline Map 17
SemCrude Cushing Storage 4.2 million barrels of crude oil storage Connectivity to TEPPCO terminal 0.85 million barrels under construction Delivery point for NYMEX contracts Real estate to construct additional Cash market hub 5-6…
SemCanada Crude Five blending facilities in Canada 250,000 barrels of crude oil storage in Edmonton, Canada Ship on all major Canadian feeder pipelines and Canadian trunkline pipelines Revenues Crude oil blending and upgrading…
Natural Gas and NGLs 20
Natural Gas & Natural Gas Liquids PP&E: 297.1 million* Employees: 390 Established/ Acquired: SemStream: 2003 - Williams SemCAMS: 2005 - BP & Chevron Texaco SemGas: 2004 - BCCK Engineering & Henry Holdings * As of 6/30/10 21
SemStream Purchase, transport, store, and distribute natural gas liquids (NGLs) across the United States Major shipper on all six North American NGL common carrier pipelines Own and operate 12 terminals in eight states Access to 4.4…
SemStream Assets 23
SemCAMS Two sour and two sweet natural gas processing plants 1.5 billion cubic feet per day of licensed capacity 600 miles of transport and gathering lines Revenues Contracted fee for service No direct commodity exposure 24
SemCAMS Assets 25
SemGas Natural gas gathering and processing services 800 miles of gathering lines Three processing plants 53 million cubic feet per day of capacity Revenues Fee based gathering contracts Percent-of-proceeds and percent-of-index…
Products 27
SemLogistics Largest independent petroleum products storage facility in U.K. 8.7 million barrels of above ground storage Approval to build nine new tanks; 1.5 million barrels of storage 2010 average utilization 100% Average contract…
SemMaterials Mxico Provide asphalt emulsions and polymer modified liquid asphalt cement to Mexico market 13 in-country terminals Including two emulsion distribution terminals Importing product to diversify suppliers Revenues…
Questions and Answers 30
Appendix 31
Board of Directors John F. Chlebowski, Chairman SemGroup Director and Chairman since November 2009 Former Co-Founder, President and Chief Executive Officer of Lakeshore Operating Partners, LLC Former President and Chief Executive…
Corporate Leadership Norman J. Szydlowski, President and Chief Executive Officer Director, President and Chief Executive Officer since November 2009 Former President and Chief Executive Officer of Colonial Pipeline Company Former…
Business Unit Leaders Pete L. Schwiering, President SemCrude President of SemCrude since August 2009 Former Manager of Pipeline and Commercial Business for Dynegy Pipeline Served 25 years in various positions for Sun Company Kevin…