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.
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http://www.b2i.us/irpass.asp?BzID=1505&to=ea&s=0 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 Relations
Brian Cropper, 918-524-SGLP (7457)
or
Toll
Free Phone: 866-490-SGLP (7457)
investor@semgroupenergypartners.com |