SemGroup to pursue agreement with Rose Rock Midstream

theflyonthewall.com

SemGroup (SEMG) announces its intent to pursue an agreement with Rose Rock Midstream (RRMS) to sell an additional 33.3% interest in SemCrude Pipeline, which owns a 51% interest in White Cliffs Pipeline. Following the proposed transaction SemGroup will retain a 33% interest in SemCrude Pipeline and a 17% interest in White Cliffs Pipeline. Rose Rock expects that the acquisition will be accretive to distributable cash flow, on a per-unit basis for the partnership's unit holders. As contemplated, Rose Rock would fund the proposed transaction with a combination of debt and units to SemGroup. The transaction is subject to execution of an agreement between the two parties, review and recommendation by the conflicts committee of the general partner of Rose Rock, and the approval of both company's boards of directors. The agreement is expected to close by year-end.

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