SemGas To Team with Exterran
TULSA, Okla., Nov 22, 2011 (BUSINESS WIRE) --
SemGroup(R) Corporation (NYSE:SEMG) and Exterran Holdings, Inc. (NYSE:
EXH) announce the development of a new gas processing plant for SemGas(R),L.P. The new plant and equipment are needed to meet the growing
demand for midstream services in the Mississippi play.
"SemGroup is focused on capturing the growing demand for midstream
services," says Norm Szydlowski, President and Chief Executive Officer
of SemGroup. "We are excited about this new opportunity for growth and
what it means for our business and shareholders."
SemGas(R) has entered into a Letter of Intent with Exterran, a
global leader in full service natural gas compression and processing, to
purchase a new gas processing plant and associated compression
equipment. It is expected that the plant will be designed and fabricated
by Exterran to handle a throughput of 60 million cubic feet per day of
gas, and will feature state-of-the-art cryogenic technology for natural
gas liquid extraction and enhanced ethane recovery. Exterran offers
pre-engineered processing plants in 60, 150 and 200 million cubic feet
per day nominal capacity to meet the demanding performance and delivery
needs of today's leading midstream service providers.
"The agreement with Exterran is another step forward in our strategy to
become the service provider of choice among active producers in the
Mississippi Zone," says Wayne Ziegler, Vice President of SemGas. "We
believe there is an immediate and growing need for more processing
capacity in SemGas' Northern Oklahoma system."
Matt Sucy, Regional Vice President for Exterran, adds, "Commodity
pricing in today's market dictates an ever increasing focus on natural
gas liquids extraction. Exterran is proud to provide the processing and
compression equipment and services to SemGas intended to maximize the
value of their clients' produced natural gas. "
About SemGas
Based in Tulsa, OK, SemGas(R), L.P., a subsidiary of SemGroup(R)
Corporation, offers customers natural gas gathering, processing and
marketing services. As part of the U.S. energy industry's midstream
segment, SemGas(R) provides infrastructure that helps gather
gas from the wellhead and moves it to the marketplace.
About SemGroup
Based in Tulsa, Oklahoma, SemGroup(R) Corporation 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(R) and SemGas(R) are registered trademarks of SemGroup
Corporation.
About Exterran
Exterran Holdings, Inc. is a global market leader in full service
natural gas compression and a premier provider of operations,
maintenance, service and equipment for oil and gas production,
processing and transportation applications. Exterran Holdings serves
customers across the energy spectrum--from producers to transporters to
processors to storage owners. Headquartered in Houston, Texas, Exterran
has more than 10,000 employees and operates in approximately 30
countries. For more information, visit www.exterran.com.
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. SemGroup and Exterran each 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 are forward-looking statements, including but not
limited to: expectations regarding industry prospects and future
economic and market conditions; statements relating to the new plant and
equipment, including the expected capacity and features of the new
plant; and each company's operational and financial strategies and
ability to successfully effect those strategies. Although SemGroup and
Exterran each believe that the expectations reflected in these
forward-looking statements are reasonable, neither company can 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: SemGroup's ability to comply
with the covenants contained in and maintain certain financial ratios
required by its credit facilities; the possibility that SemGroup's
hedging activities may result in losses or may have a negative impact on
its financial results; conditions in the oil and natural gas industry,
including any sustained reduction in demand for the petroleum products
SemGroup gathers, transports, processes and stores; SemGroup's ability
to obtain new sources of supply of petroleum products; Exterran's
ability to timely and cost-effectively execute larger projects; either
company's failure to comply with new or existing environmental laws or
regulations or cross border laws or regulations; changes in safety,
health, environmental and other regulations; the possibility that the
construction or acquisition of new assets may not result in the
corresponding anticipated revenue increases for SemGroup; any future
impairment to SemGroup's 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. These forward-looking statements are also
affected by the risk factors, forward-looking statements and challenges
and uncertainties described in each company's Annual Report on Form 10-K
for the year ended December 31, 2010, as well as those discussed from
time to time in each company's respective 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 the opinions
of each company's management only as of the date hereof. Except as
required by law, neither SemGroup nor Exterran undertake any obligation
to revise or publicly release the results of any revision to any
forward-looking statements.
Additional Information
This communication does not constitute an offer to buy or solicitation
of an offer to sell any securities or a solicitation of any vote,
consent or approval. No tender offer for the shares of SemGroup has
commenced at this time. If a tender offer is commenced, SemGroup may
file a solicitation/recommendation statement with the U.S. Securities
and Exchange Commission ("SEC"). Any solicitation/recommendation
statement filed by SemGroup that is required to be mailed to
stockholders will be mailed to stockholders of SemGroup. In addition,
SemGroup may file a proxy statement and other documents with the SEC.
Any definitive proxy statement will be mailed to stockholders of
SemGroup. INVESTORS AND SECURITY HOLDERS OF SEMGROUP ARE URGED TO READ
THESE AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY IN THEIR ENTIRETY
IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION. Investors and security holders will be able to obtain free
copies of these documents (if and when available) and other documents
filed with the SEC by SemGroup through the web site maintained by the
SEC at http://www.sec.gov.
A registration statement relating to the common units of Rose Rock
Midstream, L.P. has been filed with the Securities and Exchange
Commission, but has not yet become effective. These securities may not
be sold nor may offers to buy be accepted prior to the time the
registration statement becomes effective. This announcement does not
constitute an offer to sell, or the solicitation of an offer to buy, any
securities. Any offers, solicitations of offers to buy or sales of
securities will only be made in accordance with the registration
requirements of the Securities Act of 1933 or an exemption therefrom.
Certain Information Regarding Participants
SemGroup and certain of its respective directors and executive officers
may be deemed to be participants under the rules of the SEC in any
future solicitation of proxies or consents from SemGroup's stockholders
in respect of the matters discussed herein. Security holders may obtain
information regarding the names, affiliations and interests of
SemGroup's directors and executive officers in SemGroup's Annual Report
on Form 10-K for the year ended December 31, 2010, which was filed with
the SEC on March 31, 2011, and its proxy statement for the 2011 Annual
Meeting, which was filed with the SEC on April 21, 2011. These documents
can be obtained free of charge from the sources indicated above.
Additional information regarding the interests of these participants in
any proxy solicitation or consent solicitation and a description of
their direct and indirect interests, by security holdings or otherwise,
will also be included in future filings with the SEC.
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SOURCE: SemGroup Corporation and Exterran Holdings, Inc.
SemGroup Corporation
Investor Relations:
Alisa Perkins, 918-524-8081
investor.relations@semgroupcorp.com
or
Media:
Liz Barclay, 918-524-8158
lbarclay@semgroupcorp.com
or
Exterran Holdings, Inc.
Media:
Mike Hopfe, 281-836-7592
Director of Marketing, Exterran
Mike.Hopfe@Exterran.com