|Bid||16.84 x 3000|
|Ask||17.00 x 1200|
|Day's Range||16.70 - 16.87|
|52 Week Range||8.10 - 22.96|
|Beta (3Y Monthly)||1.11|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||1.89 (19.38%)|
|1y Target Est||N/A|
Midstream biggie Energy Transfer (ET) said on Monday it would buy SemGroup (SEMG) for $5.1 billion. Meanwhile, supermajor ExxonMobil (XOM) confirmed its 14th oil discovery off the coast of Guyana.
This most-searched list is a feature included in Benzinga Pro's Newsfeed tool. It highlights stocks frequently searched by Benzinga Pro users on the platform. Yuma Energy (AMEX: YUMA) shares were up 5.1% ...
Oil futures saw their biggest gains in a decade Monday, after Saturday’s attack on Saudi oil facilities shocked markets and gave a lift to bonds issued by debt-laden U.S. energy companies.
Concurrently, Moody's also placed on review for upgrade the Ba3 CFR, Ba3-PD probability of default and Ba3 senior secured ratings of HFOTCO, a wholly owned subsidiary of SEMGroup. The transaction was approved by the board of directors of both Energy Transfer and SEMGroup and is expected to close by late 2019 or early 2020, subject to obtaining regulatory approvals, SemGroup shareholder approval and other customary closing conditions.
(Bloomberg) -- On a day when the biggest oil rally in more than a decade boosted most U.S. energy stocks, billionaire Kelcy Warren’s plan to acquire a rival wiped out $1.5 billion of his pipeline giant’s market value.Energy Transfer LP’s announcement Monday that it agreed to purchase SemGroup Corp. sent the buyer’s units falling the most in a month. Energy investors have been increasingly restive with anything short of strict financial discipline.The $17-a-share offer represents a 65% premium to SemGroup’s closing price Friday, according to a statement. The value of the $1.35 billion cash-and-stock deal rises to $5 billion with the inclusion of debt. SemGroup soared 61% on Monday while its suitor fell 4.2%.For deal-hungry Warren, the transaction is his latest run at a consolidation spree that included last year’s pursuit of NuStar GP Holdings LLC, which fizzled when the target rebuffed the approach.Energy Transfer was one of the only pipeline operators to fall on a day when oil prices surged the most in a decade after an attack at a Saudi Arabian crude-processing facility.The “acquisition this morning represents a sharp reversal from recent messaging on portfolio management, capital discipline and accelerated deleveraging,” Tudor Pickering Holt & Co. analysts said in a note to clients.Investors have been similarly harsh on other notable energy deals this year. Occidental Petroleum Corp. and Callon Petroleum Co. plunged after announcing deals to buy Anadarko Petroleum Corp. and Carrizo Oil & Gas Inc., respectively.Both buyers now have disgruntled billionaires knocking at the door: Carl Icahn is pushing Occidental to sell the combined company, while John Paulson is urging Callon to scrap the deal and put itself up for sale.Energy Transfer is unlikely to draw an activist investor given its structure as a master limited partnership, a model employed by many pipeline companies that shields investors from certain taxes but also comes with fewer rights for common unitholders.Not all analysts disliked the SemGroup deal. While Sanford C. Bernstein’s research team said investors will likely be “disappointed,” analysts led by Jean Ann Salisbury said they “don’t see this deal as a disaster” because $170 million in cost savings Energy Transfer is eyeing are “doable.”‘A Lot of Frogs’Warren -- who built his empire scooping up small pipeline companies as the shale boom exploded -- first signaled he could resume buying in August 2018. That was just eight days after the company announced a streamlining move in part meant to improve stock performance.“We kiss a lot of frogs looking for a prince,” Warren said on a conference call in November. “We are working it hard. I will tell you, though, we are not finding any deals.”Dealmaking has been a touchy subject for Warren ever since Energy Transfer walked away from a $33 billion agreement to buy Williams Cos., which would have been its biggest acquisition yet.SemGroup’s crude and products terminal on the Houston Ship Channel is likely the driver behind Energy Transfer’s decision to buy the company, Wells Fargo Securities’ Michael Blum said in a note Monday. Still, “many of the other assets don’t seem to fit ET’s footprint and are of lower quality and we wouldn’t be surprised to see ET divest some of the assets,” he said.Energy Transfer is already looking to sell a 33% stake in its Rover pipeline that carries Appalachian natural gas to customers across the Midwest, people familiar with the matter said in July.“From ‘30,000 feet,’ in a market where investors are pushing companies to reduce spending and leverage and increase free cash flow, we’re not sure the optics of this deal will be met with enthusiasm,” Blum wrote of the SemGroup acquisition.No CallEnergy Transfer is likely to “face investor scrutiny around the asset mix and the merits of the transaction, though at first glance, it passes our litmus test on accretion,” Citigroup Inc. analyst Timm Schneider wrote in a note to clients.“We wish we could ask some questions, but there is no conference call,” Schneider said.While Energy Transfer is offering a big takeover premium, Tulsa-based SemGroup has seen its stock fall by more than half in the last year. The company had previously worked with an adviser on alternative options to raise capital, people familiar with the matter said earlier this year.For SemGroup, the deal offers “a nice exit ramp for the company following a strategic review that could have gone in many directions,” Wells Fargo’s Blum said.Jefferies LLC acted as exclusive financial adviser to SemGroup, while Bank of America Merrill Lynch advised Energy Transfer.To contact the reporter on this story: Rachel Adams-Heard in Houston at firstname.lastname@example.orgTo contact the editors responsible for this story: Simon Casey at email@example.com, Joe CarrollFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of SemGroup Corporation and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
Energy Transfer announced plans to purchase SemGroup Corp. (NYSE: SEMG) in a move that's expected to increase the company's scale and connectivity across multiple regions.
Energy Transfer LP (NYSE: ET) said Monday that it has entered an agreement to acquire SemGroup Corp (NYSE: SEMG) in a unit and cash transaction valued at $5.1 billion, including the assumption of debt and other liabilities. The transaction values SemGroup at $17 per share and represents a 65% premium to SemGroup's closing share price of $10.28 on Sept. 13 and an 87% premium to SemGroup's 20-day volume weighted average price as of the same date. Upon closing of the deal, SemGroup shareholders are expected to own approximately 2.2% of Energy Transfer’s outstanding common units.
Oil and gas pipeline company Energy Transfer LP said on Monday it would buy smaller rival SemGroup Corp for $1.35 billion and build a 75-mile oil pipeline to strengthen its oil transportation, terminalling and export operations. Energy Transfer will gain control of SemGroup's crude oil terminal on the Houston Ship Channel, and to connect it with its Nederland, Texas terminal, Energy Transfer said it will construct a pipeline between the two terminals. Energy Transfer will also add SemGroup's crude oil gathering assets in the DJ Basin in Colorado and the Anadarko Basin in Oklahoma and Kansas, as well as crude oil and natural gas liquids pipelines connecting the DJ Basin and Anadarko Basin with terminals in Cushing, Oklahoma.
Shares of SemGroup Corp. rocketed 63% toward a 7-month high in premarket trading Monday, after the oil and gas pipeline and processing plant company agreed to be acquired by Energy Transfer LP in a deal that values SemGroup at about $1.35 billion. The total consideration of the cash-and-stock deal, including debt is valued at $5.1 billion. Under terms of the deal, SemGroup shareholders will receive $6.80 in cash and 0.7275 Energy Transfer shares for each SemGroup share they own, which based on Friday's closing prices values SemGroup shares at $17 each, or a 65% premium. Energy Transfer's stock gained 2.2% ahead of the open. The deal is expected to close by late 2019 or early 2020. "SemGroup has been exploring a range of strategic alternatives aimed at increasing shareholder value, and determined that this combination with ET is in the best interests of shareholders--providing immediate value, a significant premium, and opportunity to participate in the future upside of the combined business," said SemGroup Chief Executive Carlin Conner. Year to date, SemGroup shares had dropped 25.4% through Friday and ET's stock has gained 6.1%, while the Dow Jones Industrial Average has advanced 16.7%.
SemGroup agrees to be acquired by Energy Transfer in a transaction that prices the Tusla, Oklahoma-based Semgroup at about $1.35 billion.
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SemGroup (SEMG) delivered earnings and revenue surprises of 10.00% and 17.52%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
SemGroup (SEMG) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.