• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

SemMaterials, L.P. Agrees to Sell Asphalt Terminals and Storage Assets to SemGroup Energy Partners, L.P.

Posted on: Monday, 14 January 2008, 18:00 CST

SemMaterials, L.P., a subsidiary of SemGroup, L.P., today announced it has agreed to sell 46 U.S. liquid asphalt cement and residual fuel oil terminalling and storage facilities to SemGroup Energy Partners, L.P. (NASDAQ: SGLP) for $378.8 million. The terminalling and storage facilities, located in 23 states, have aggregate storage capacity of approximately 6.6 million barrels. SGLP will provide SemMaterials liquid asphalt cement and residual fuel oil terminalling and storage services under a long-term terminalling and storage agreement.

SemMaterials will continue to own assets involved in the further processing of asphalt cement and will continue to purchase and market asphalt and residual fuel oil, as well as blend, process and market its line of specialty road-paving products. SemGroup Energy Partners will not take title to any asphalt in storage or engage in any asphalt marketing activities. The sale does not involve any SemMaterials' Mexico assets.

"This transaction positions SemMaterials to continue our expansion and growth. The sale is consistent with SemMaterials' long-term business strategy, and it allows us to focus on road science, infrastructure services and continued innovation of road technology," said Frank Panzer, SemMaterials' president and chief operating officer. "The sale will have minimal impact on SemMaterials' customers and employees."

Panzer said that SemMaterials remains dedicated to helping its customers address their "ongoing needs and issues, which include aging infrastructure, funding shortfalls and the innovation of services and products."

Kevin Foxx, SemGroup Energy Partners president and chief executive officer, commented on SemMaterials' legacy as one of the largest asphalt suppliers and processors of polymer modified asphalt cement and emulsions in the United States. "SGLP looks forward to facilitating the current and future terminalling and storage needs for SemMaterials as it continues to be a key player in the industry," Foxx said.

The acquisition is subject to financing and other standard closing conditions, including expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and it is expected to close in the first quarter of 2008.

About SemMaterials, L.P.

SemMaterials, L.P., a subsidiary of SemGroup, L.P, is one of the largest asphalt suppliers and processors of polymer modified asphalt cement and emulsions in the United States and Mexico. The company develops, produces, markets and stores a diverse line of asphalt cements, modified asphalts, asphalt emulsions and innovative performance-based pavement technologies. For more information, visit www.semmaterials.com.

About SemGroup Energy Partners, L.P.

SemGroup Energy Partners owns and operates a diversified portfolio of complementary midstream energy assets. SemGroup Energy Partners provides crude oil gathering and transportation and terminalling and storage services primarily in its core operating areas in Oklahoma, Kansas and Texas. A subsidiary of SemGroup, L.P. is the general partner of SemGroup Energy Partners. SemGroup Energy Partners owns and operates terminalling and storage facilities with approximately 6.7 million barrels of storage capacity, including approximately 4.8 million barrels of storage capacity located at the Cushing Interchange, two pipeline systems consisting of approximately 1,150 miles of pipeline, and tanker trucks used to gather oil at remote wellhead locations generally not covered by pipeline and gathering systems. The partnership is based in Tulsa, Oklahoma. For more information, visit the partnership's Web site www.SGLP.com.

Source: Business Wire

More News in this Category