TULSA, Okla., Jan. 9, 2013 (GLOBE NEWSWIRE) -- SemGroup Corporation (NYSE:SEMG) (SemGroup) today announced that it expects to pay a quarterly cash dividend to common shareholders beginning in the second quarter of 2013. The dividend is targeted to represent a pass-through of the majority of the cash distributions received by SemGroup from its interests in Rose Rock Midstream, L.P. (NYSE:RRMS) and NGL Energy Partners LP (NYSE:NGL).
The dividend is expected to be based on the previous quarter's distributions received from SemGroup's interests in these master limited partnerships (MLPs). Accordingly, the initial dividend, to be declared and paid in the second quarter of 2013, is anticipated to be based on the distributions received by SemGroup from Rose Rock Midstream and NGL Energy Partners in the first quarter of the year.
"In the past three years, since becoming a public company, we undertook a number of initiatives to improve the stability of our cash flows and to position the company to benefit from the significant growth potential in the midstream oil and gas sector. Our intention to initiate a cash dividend reflects our confidence in our future cash flows. It is another important step in our commitment to deliver value to shareholders," said Norm Szydlowski, president and chief executive officer of SemGroup. "As we receive additional cash distributions from our MLP investments, we anticipate increasing the SemGroup dividend," Szydlowski added.
About SemGroup
Based in Tulsa, OK, 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.
The SemGroup Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=14815
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 our intention to initiate a cash dividend, possible increases in such a dividend, the prospects of our industry, our anticipated financial performance, NGL Energy Partners LP and Rose Rock Midstream, L.P. anticipated financial performance, management's plans and objectives for future operations, business prospects, 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; NGL's operations, which we do not control; the ability of our subsidiary, Rose Rock Midstream L.P., to make minimum quarterly distributions; 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.