SGLP Files Third Quarter 2008 Form 10-Q and Enters Into Asphalt Storage Contracts and Leases Relating to its Asphalt Facilities
2009-05-28 00:38:03 -
SemGroup Energy Partners, L.P. (“SGLP”) (Pink Sheets: SGLP) today announced that it filed its Quarterly Report on Form 10-Q for the quarter ended September 30, 2008 and that it has recently completed the execution of asphalt storage contracts or leases relating to 39 of its 46 owned asphalt facilities with various counterparties.
Asphalt Storage Contracts and Leases
“We are very pleased to announce that we have entered into storage or lease agreements with 11 various counterparties for our asphalt facilities. We believe our ability to get these facilities quickly under contract highlights the strategic location and strong industry demand for our asphalt and residual fuel oil assets,” stated Jerry Parsons, Executive Vice President – Asphalt Operations.
SGLP will operate the facilities under the storage agreements and the contract counterparties will operate the facilities under the lease agreements. SGLP will receive storage fees or lease payments as appropriate from the new counterparties and the agreements are effective between May 1st and June 1st with terms extending primarily through December 31, 2011. The revenues that SGLP will receive pursuant to these leases and storage agreements will be less than the revenues received under the Terminalling and Storage Agreement with SemGroup, L.P.
Parsons further said, “We look forward to working with our new counterparties in these terminal facilities and are also pleased that the majority of the operational employees at the terminals will continue to be employed by either SGLP or by the new third-party counterparties.
We continue to be in discussions with additional counterparties on the remaining facilities not yet under contract and are hopeful we can execute similar contracts on those locations in the near term.”
Kevin Foxx, Chief Executive Officer and President of SGLP’s general partner added, “The asphalt contracts, in connection with our existing crude oil storage, transportation and terminalling business further stabilize our revenues, which we expect on a go-forward basis to be more than 95% from third parties. We also wish to express our gratitude to our new asphalt counterparties, existing crude oil customers and approximately 400 employees for their continued support.”
Filing of Form 10-Q
SGLP today filed its Quarterly Report on Form 10-Q for the quarter ended September 30, 2008. As previously disclosed, SGLP’s common units were delisted from the Nasdaq Global Market (“Nasdaq”) effective at the opening of business on February 20, 2009 due to SGLP’s failure to timely file its Quarterly Reports on Form 10-Q for the quarters ended June 30, 2008 and September 30, 2008. SGLP’s common units are currently traded on the Pink Sheets, which is an over-the-counter securities market, under the symbol SGLP.PK. SGLP continues to work to become compliant with its SEC reporting obligations and intends to promptly seek the relisting of its common units on Nasdaq as soon as practicable after it has become compliant with such reporting obligations. However, there can be no assurances that SGLP will be able to relist its common units on Nasdaq or any other national securities exchange and SGLP may face a lengthy process to relist its common units if it is able to relist them at all.
About SGLP
SGLP owns and operates a diversified portfolio of complementary midstream energy assets consisting of approximately 8.2 million barrels of crude oil storage located in Oklahoma and Texas, approximately 6.8 million barrels of which are located at the Cushing, Oklahoma interchange, approximately 1,150 miles of crude oil pipeline located primarily in Oklahoma and Texas, over 200 crude oil transportation and oilfield services vehicles deployed in Kansas, Colorado, New Mexico, Oklahoma and Texas and approximately 7.4 million barrels of combined asphalt and residual fuel storage located at 46 terminals in 23 states.
SGLP provides crude oil and liquid asphalt cement terminalling and storage services and crude oil gathering and transportation services.
SGLP is based in Tulsa, Oklahoma. For more information, visit SGLP’s web site at www.SGLP.com : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww .. .
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Forward-Looking Statements
This news release includes forward-looking statements. Statements included in this press release that are not historical facts (including any statements concerning expectations relating to SGLP’s asphalt facilities and any statements concerning plans and objectives of management for future operations or economic performance, or assumptions related thereto) are forward-looking statements. Such forward-looking statements are subject to various risks and uncertainties. These risks and uncertainties include, among other things, uncertainties relating to bankruptcy filings of SemGroup, L.P., uncertainties relating to future operations of SGLP’s asphalt operations, uncertainties relating to pursuing strategic alternatives for SGLP’s business, insufficient cash from operations, market conditions, governmental regulations and factors discussed in SGLP’s filings with the Securities and Exchange Commission.
If any of these risks or uncertainties materializes, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those expected. SGLP undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SGLP Investor RelationsBrian Cropper, 918-524-SGLP (7457)orToll
Free Phone: 866-490-SGLP (7457) investor@semgroupenergypartners.com : mailto:investor@semgroupenergypartners.com
