TULSA, Okla., April 25, 2013 (GLOBE NEWSWIRE) -- Rose Rock Midstream, L.P. (RRMS) announced today that the Board of Directors of its general partner has declared a cash distribution for the first quarter of 2013 of $0.43 per unit, or $1.72 per unit on an annualized basis. This distribution represents an increase of approximately 15% over the first quarter of 2012 quarterly distribution of $0.3725 per unit, and an approximately 7% increase over the prior quarter's distribution.
"We are pleased to announce the fifth consecutive increase in the distribution to RRMS limited partner unitholders since our initial public offering in December 2011. With this increase we anticipate to be at the high end of our 2013 guidance of 10% to 15% year-over-year distribution growth," said Norm Szydlowski, chairman and chief executive officer of Rose Rock Midstream.
The distribution will be paid on May 15, 2013 to all unitholders of record on May 6, 2013.
About Rose Rock Midstream
Rose Rock Midstream, L.P. (RRMS) is a growth-oriented Delaware limited partnership formed by SemGroup(R) Corporation (SEMG) 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 states with the majority of its assets strategically located in or connected to the Cushing, Oklahoma crude oil marketing hub.
This release is a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat 100% of Rose Rock Midstream, L.P.'s distributions to foreign investors as being attributable to income that is effectively connected with a United States trade or business. Therefore, distributions to foreign investors are subject to federal income tax withholding at the highest applicable effective tax rate.
Certain matters contained in this Press Release include "forward-looking statements." All statements, other than statements of historical fact, included in this Press Release including the prospects of our industry, our anticipated financial performance, including distributable cash flow, 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, insufficient cash from operations following the establishment of cash reserves and payment of fees and expenses to pay the minimum quarterly distribution; any sustained reduction in demand for crude oil in markets served by our midstream assets; our ability to obtain new sources of supply of crude oil; competition from other midstream energy companies; our ability to comply with the covenants contained in and maintain certain financial ratios required by our credit facility; our ability to access credit markets; our ability to renew or replace expiring storage contracts; the loss of or a material nonpayment or nonperformance by any of our key customers; the overall forward market for crude oil; the possibility that our hedging activities may result in losses or may have a negative impact on our financial results; hazards or operating risks incidental to the gathering, transporting or storing of crude oil; our failure to comply with new or existing environmental laws or regulations; the possibility that the construction or acquisition of new assets may not result in the corresponding anticipated revenue increases; 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.
Mary Catherine Ward