SemGroup Corp. (NYSE: SEMG) emerged from bankruptcy a year ago and is focused once again with businesses involved in crude oil, natural gas and other parts of the energy complex.

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SemGroup operates many subsidiaries involved in the transport, storage and processing of crude oil, natural gas and natural gas liquids. The company's asset base stretches from Canada to Mexico and across the Atlantic to the United Kingdom.


SemGroup was founded in 2000 and grew rapidly through acquisitions for most of the decade. In July 2008, the company filed for bankruptcy after SemGroup LP, the parent company of what was then called SemGroup Energy Partners LP, had made acquisitions totaling over $1 billion.

SemGroup emerged from bankruptcy one year ago, and it has moved quickly to refocus on areas of previous involvement. The company also recently started trading back on the NYSE.

Crude Oil

In crude oil, SemGroup operates its business through SemCrude and SemCanada Crude. SemCrude owns and operates more than 1,100 miles of pipeline with capacity of 62,400 barrels per day. The company also owns approximately 4.5 million barrels of crude oil storage capacity in Cushing, Oklahoma.

SemGroup also has 51% ownership of the White Cliffs pipeline, which is 527 miles long and runs from Colorado to Oklahoma. This pipeline has growth potential from the development of the Niobrara Shale in the Denver Julesburg Basin. Other publicly traded companies with an ownership stake in White Cliffs include Noble Energy (NYSE: NBL) with 5%, Western Gas Partners (NYSE: WES) with 10% and Plains All American Pipeline (NYSE: PAA), which owns 34%.

SemCanada Crude owns 250,000 barrels of storage in Edmonton, Canada along with several blending facilities. The company is currently evaluating strategic alternatives for this business.

Natural Gas And Natural Gas Liquids

In natural gas and natural gas liquids, SemGroup conducts its business through SemStream, SemCAMS and SemGas. These businesses operate natural gas gathering and processing services as well as the purchase, transport and sale of natural gas liquids. (How a company accounts for its expenses affects how its net income and cash flow numbers are reported. Check out Accounting For Differences In Oil And Gas Accounting.)


On the products side, SemGroup operates through SemLogistics, which owns 8.7 million barrels of storage in England. The company has another 1.5 million barrels of storage under construction. It has an asphalt business operated by SemMexico, and it owns 11 terminals in that country.


SemGroup had $82.5 million in cash and $470.8 million in total debt as of June 30, with a total debt to capitalization ratio of 35.4%. The company has access to $38.2 million on its revolver, and it has a manageable debt maturity schedule over the next five years. Unlike many companies in its space, SemGroup does not currently pay a distribution to shareholders.

SemGroup has been out of bankruptcy for a year and has a fresh listing on the NYSE. This midstream company is leaving the past behind, focusing on a wide range of businesses involved with commodities and other related products.

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Tickers in this Article: SEMG, NBL, PAA, WES

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