SemGroup Corporation and Noble Energy Agree to Build New Wattenberg Crude Oil Gathering System

TULSA, Okla.--()--SemGroup® Corporation (NYSE:SEMG) today announced plans to construct a new crude oil gathering system in the Denver-Julesburg Basin (DJ Basin) in Colorado. The project will support Noble Energy, Inc.’s (NYSE: NBL) efforts to move their production away from the wellhead.

“Demand continues to increase for midstream services out of the DJ Basin,” said Pete Schwiering, vice president of SemGroup Corporation. “Strong crude prices provide attractive economics for producers in this play and we are excited to be working with Noble Energy to accommodate the increased production.”

Once operational, the new gathering system, to be called the Wattenberg Oil Trunkline, will transport oil within the DJ Basin. The project will include a 37 mile, 12 inch pipeline system with 200,000 barrels of operational storage extending north from Rose Rock Midstream’s (NYSE: RRMS) Platteville Station, the origin point of White Cliffs Pipeline. The Wattenberg Oil Trunkline will connect to Noble Energy processing facilities in the heart of their producing areas and include facilities to unload trucks.

Noble Energy, Inc. has entered into a long term agreement to use the asset. The project is expected be operational the third quarter of 2013.

About SemGroup

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.

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.

Forward-Looking Statements

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 prospects of our industry, our anticipated financial performance, management’s plans and objectives for future operations, business prospects, outcome of regulatory proceedings, market conditions and other matters, 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, our ability to comply with the covenants contained in and maintain certain financial ratios required by our credit facilities; the possibility that our hedging activities may result in losses or may have a negative impact on our financial results; any sustained reduction in demand for the petroleum products we gather, transport, process and store; our ability to obtain new sources of supply of petroleum products; our failure to comply with new or existing environmental laws or regulations or cross border laws or regulations; the possibility that the construction or acquisition of new assets may not result in the corresponding anticipated revenue increases; any future impairment to goodwill resulting from the loss of customers or business; changes in currency exchange rates; and the risks and uncertainties of doing business outside of the U.S., including political and economic instability and changes in local governmental laws, regulations and policies, 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.

Contacts

SemGroup Corporation
Investor Relations:
Alisa Perkins, 918-524-8081
investor.relations@semgroupcorp.com
or
Media:
Liz Barclay, 918-524-8158
lbarclay@semgroupcorp.com

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Contacts

SemGroup Corporation
Investor Relations:
Alisa Perkins, 918-524-8081
investor.relations@semgroupcorp.com
or
Media:
Liz Barclay, 918-524-8158
lbarclay@semgroupcorp.com