View source for SemGroup

{{Infobox company
| name          = SemGroup Corporation
| logo          = SemGroup_Corp_new_logo.jpg
| industry      = [[Petroleum industry]]
| fate          = Acquired by [[Energy Transfer LP]]
| founder       = [[Thomas L. Kivisto]]<br>Gregory C. Wallace
| foundation    = {{start date and age|2000}}
| location      = [[Tulsa, Oklahoma]]
| defunct       = {{end date and age|2019|12|05}}
| key_people    = Carlin G. Conner, President & [[CEO]]<BR>Robert N. Fitzgerald, [[CFO]]
| services      = [[Pipeline transport]]<BR>[[Natural gas processing]]<br>[[Bitumen|Asphalt]]
| revenue       = {{increase}} $2.503 billion (2018)
| net_income    = {{decrease}} -$24 million (2018)
| assets        = {{decrease}} $5.210 billion (2018)
| equity        = {{increase}} $1.840 billion (2018)
| num_employees = 880 (2018)
| subsid        = {{Collapsible list|framestyle = <!--(optional)-->|title=Subsidiaries|titlestyle = <!--(optional)-->|liststyle = <!--(optional)-->|1= SemCAMS|2=SemGas|3=SemLogistics|4=SemMaterials|5=HFOTCO|6=SemStream|7=NGL Equity Ownership|8=Rose Rock Midstream|9=White Cliffs Pipeline}}
| footnotes     = <ref name=10K>{{cite web | url=https://www.sec.gov/ix?doc=/Archives/edgar/data/0001489136/000148913619000011/semg1231201810-k.htm | title=Semgroup Corporation 2018 Form 10-K Annual Report | publisher=[[U.S. Securities and Exchange Commission]]}}</ref>
}}
'''SemGroup Corporation''' was a publicly-traded company engaged in [[natural gas]], [[petroleum]], and [[propane]] [[pipeline transport]]. It was organized in [[Delaware]] and headquartered in [[Tulsa, Oklahoma]].<ref name=10K/> In December 2019, the company was acquired by [[Energy Transfer LP]].
SemGroup LP was engaged in diversified services for the North American [[crude oil]] and refined products industry. Operations included gathering, transporting, marketing and hedging services. SemGroup owned and operated carrier [[Pipeline transport|pipelines]], oil terminals, oil transport and service trucks, pipeline injection stations and terminal storage in [[Oklahoma]], [[Louisiana]], [[Kansas]], and [[Texas]]. Canadian operations were located in [[Alberta]], [[British Columbia]], and [[Saskatchewan]].
SemCAMS Midstream ULC was a business unit of SemGroup based in Calgary, Alberta. SemCAMS operated four gas processing plants in the Western Canadian Sedimentary Basin. SemCAMS offers midstream service options for wet or dry, sweet or sour gas gathering and processing, as well as dehydration, field compression and sulfur forming and handling.<ref>{{Cite press release | url=https://www.prnewswire.com/news-releases/transalta-and-semcams-midstream-announce-agreement-to-construct-and-own-a-new-cogeneration-plant-in-alberta-300928920.html | title=TransAlta and SemCAMS Midstream Announce Agreement to Construct and Own a New Cogeneration Plant in Alberta | publisher=[[PR Newswire]] | date=October 1, 2019}}</ref>
Houston Fuel Oil Terminal Company was acquired by SemGroup in July 2017. Often referred to as 'HFOTCO,' the business unit operated one of the largest oil terminals in the U.S. HFOTCO is in the Houston Ship Channel on the U.S. Gulf Coast.<ref name=houston>{{Cite press release | url=http://www.globenewswire.com/news-release/2017/07/17/1047426/0/en/SemGroup-Completes-Acquisition-of-Houston-Fuel-Oil-Terminal-Company.html | title=SemGroup Completes Acquisition of Houston Fuel Oil Terminal Company | publisher=[[GlobeNewswire]] | date=July 17, 2017}}</ref>
Rose Rock Midstream was a master limited partnership formed by SemGroup in 2011. It was originally publicly traded but fully acquired by SemGroup in September 2016.<ref>{{Cite news | url=https://www.reuters.com/article/roserockmidstream/update-1-rose-rock-midstream-prices-ipo-at-midpoint-of-range-idUKL3E7N85MF20111208 | title=UPDATE 1-Rose Rock Midstream prices IPO at midpoint of range | first=Brenton | last=Cordeiro | work=[[Reuters]] | date=December 8, 2011}}</ref><ref>{{Cite press release | url=https://www.globenewswire.com/news-release/2016/09/30/876098/0/en/SemGroup-Corporation-Announces-Closing-of-Acquisition-of-Rose-Rock-Midstream-L-P.html | title=SemGroup Corporation Announces Closing of Acquisition of Rose Rock Midstream, L.P. | publisher=[[GlobeNewswire]] | date=September 30, 2016}}</ref>
==History==
SemGroup LP was founded in 2000.<ref>{{Cite news | url=https://www.reuters.com/article/us-semgroup/semgroups-3-2-billion-failure-shocks-backers-idUSN2550339420080725 | title=SemGroup's $3.2 billion failure shocks backers | first=Robert | last=Campbell | work=[[Reuters]] | date=July 25, 2008}}</ref>
In July 2007, the company established a publicly traded affiliate, SemGroup Energy Partners LP.<ref>{{Cite press release | url=https://www.carlyle.com/media-room/news-release-archive/semgroup-energy-partners-lp-announces-pricing-initial-public | title=SemGroup Energy Partners, L.P. Announces Pricing of Initial Public Offering; Trading Begins July 18 | publisher=[[The Carlyle Group]] | date=July 16, 2007}}</ref>
In 2007, it was the 18th largest private company in the US.<ref>{{cite news| title=The 35 Largest US Private Companies | url=https://money.cnn.com/galleries/2008/fortune/0805/gallery.private_companies.fortune/18.html | work=[[CNN]] | date=May 28, 2008}}</ref>
===Bankruptcy===
[[Hedge funds]] run by Alerian Capital Management and Elliot Associates exercised the terms of a [[secured loan]] made to SemGroup and took over the general partnership interest in SemGroup Energy Partners LP. On July 22, 2008, Semgroup, LP filed for [[Chapter 11]] bankruptcy protection in [[U.S. Bankruptcy Court]] in [[Wilmington, Delaware]].<ref>{{cite web | title=SemGroup Chapter 11 Petition | url=https://www.pacermonitor.com/view/YMT5KMQ/SemGroup,_L.P.__debke-08-11547__0001.0.pdf | website=PacerMonitor}}</ref><ref>{{Cite news | url=https://www.forbes.com/forbes/2009/0413/096-sachs-semgroup-goldman-goose-oil.html | work=[[Forbes]] | title=Did Goldman Goose Oil? | date=March 25, 2009}}</ref><ref>{{Cite news | url=https://www.nytimes.com/2008/07/23/business/23energy.html | title=SemGroup Files for Bankruptcy | agency=[[Dow Jones & Company]] | date=July 23, 2008 | work=[[The New York Times]] | url-access=subscription | issn=0362-4331}}</ref>
New York [[billionaire]] [[John Catsimatidis]] then became engaged in efforts to take over SemGroup and gained control over a majority of the company's management committee. He was opposed by the company's existing management, who argued for selling off at least some of the company's assets, while Catsimatidis stated his intention to keep the company together.<ref>{{Cite news | url=https://tulsaworld.com/business/business-brawler/article_11a38c70-5133-563b-9d9e-52a5224b263a.html | title=Business brawler? | first=ROD | last=WALTON | work=[[Tulsa World]] | date=January 25, 2009 | url-access=subscription}}</ref>  On February 11, 2009 Catsimatidis was sued by a group of SemGroup executives, seeking removal of Catsimatidis and his allies from the committee.<ref>{{Cite news | url=https://tulsaworld.com/archive/semgroup-executives-sue-catsimatidis/article_7bdd4025-fffb-5132-a7c8-14c8e702ff56.html | title=SemGroup executives sue Catsimatidis | work=[[Tulsa World]] | date=February 11, 2009 | url-access=subscription}}</ref> The company and its unsecured creditors committee sued former CEO [[Thomas L. Kivisto]] and former CFO Gregory C. Wallace, seeking return of $362 million that they claim the defendants used for their own transactions and benefits.<ref>{{Cite news | url=https://tulsaworld.com/archive/kivisto-is-sued-over-use-of-funds/article_54936b77-5d25-583d-b44a-21f818cd2e21.html | title=Kivisto is sued over use of funds | first=ROD | last=WALTON | work=[[Tulsa World]] | date=February 19, 2009 | url-access=subscription}}</ref>
In April 2009, former FBI director [[Louis Freeh]] released a report on the circumstances surrounding the SemGroup bankruptcy, claiming it was a result of  lies by its top executives about its liquidity problems and a mismanaged speculative oil trading strategy.<ref>{{Cite news | url=https://www.reuters.com/article/us-semgroup-examiner-idUSTRE53F05Q20090416 | title=SemGroup examiner pins collapse on former execs | first1=Emily | last1=Chasan | first2=Joshua | last2=Schneyer | work=[[Reuters]] | date=April 16, 2009}}</ref> In July 2009, Catsimatidis settled with the company, pursuant to which Catsimatidis acquired an interest in SemGroup's asphalt business and dropped his competing plan for the company's proposed reorganization.<ref>{{Cite news | url=https://tulsaworld.com/business/semgroup-suitor-drops-out/article_1a8c6dac-075a-50cb-b0ce-1b81d8c62533.html | title=SemGroup suitor drops out | first=ROD | last=WALTON | work=[[Tulsa World]] | date=July 21, 2009 | url-access=subscription}}</ref><ref>{{Cite news | url=https://www.reuters.com/article/etfNews/idUSN207001820090720 | title=Catsimatidis to support SemGroup reorganization | first1=Chelsea | last1=Emery | first2=Tom | last2=Hals | work=[[Reuters]] | date=July 20, 2009}}</ref>
===Recovery===
On December 1, 2009, SemGroup exited bankruptcy under a new corporate structure, eliminating its [[master limited partnership]] structure and becoming a publicly traded company focused on asphalt manufacture and marketing and on oil and natural gas storage and transport, with about 1,000 employees including 140 employees in Tulsa.<ref>{{Cite news | url=https://tulsaworld.com/business/energy/semgroup-emerges-from-chapter-bankruptcy/article_247103d0-6ce5-5c90-9f33-52290c45f996.html | title=SemGroup emerges from Chapter 11 bankruptcy | first=ROD | last=WALTON | work=[[Tulsa World]] | date=December 2, 2009 | url-access=subscription}}</ref> SemGroup Energy Partners LP was renamed Blueknight Energy Partners LP.<ref>{{Cite news | first=Rod | last=Walton | url=https://tulsaworld.com/archive/sem-spinoff-renamed-blueknight/article_d8caa92c-d264-5864-be6c-12fc53a6628b.html | title=Sem spinoff renamed Blueknight | work=[[Tulsa World]] | date=December 2, 2009 | url-access=subscription}}</ref>
SemGroup Corporation's common stock was listed on the [[New York Stock Exchange]] on November 11, 2010.<ref>{{Cite news | url=https://tulsaworld.com/business/energy/semgroup-corp-to-begin-trading-on-nyse-on-thursday/article_6c7993ae-485d-5fb2-9afc-0785e2a12118.html | title=SemGroup Corp. to begin trading on NYSE on Thursday | last=WALTON |first=ROD | work=[[Tulsa World]] | date=November 10, 2010 | url-access=subscription}}</ref> Two of its representatives rang the opening bell of the [[New York Stock Exchange]] on December 17, 2010.<ref>{{Cite news | first=Rod | last=Walton | url=https://tulsaworld.com/business/semgroup-duo-ring-nyse-opening-bell/article_dd094e37-cbbd-5683-9010-40743c7b5bb9.html | title=SemGroup duo ring NYSE opening bell | work=[[Tulsa World]] | date=December 17, 2010 | url-access=subscription}}</ref><ref name="Baskin">{{Cite news | first=Brian | last=Baskin | url=https://www.wsj.com/articles/SB10001424052748704862604576029372172924188 | title=SemGroup Works to Turn It Around: After a Disastrous Bet and a Bankruptcy Stay, Firm Tries to Forge New Identity | work=[[The Wall Street Journal]] | date= December 20, 2010 | url-access=subscription}}</ref>
In November 2009, [[Vitol]] acquired the general partner of Blueknight.<ref>{{cite web | url=https://www.vitol.com/blueknight-energy-partners-l-p/ | title=Blueknight Energy Partners, L.P | publisher=[[Vitol]] | date=December 1, 2009}}</ref> In October 2010, Vitol added [[Charlesbank Capital Partners]] as a second [[general partner]]; this led to public charges, by an investment fund associated with billionaire [[Michael Dell]], that the transaction was improper [[self-dealing]] intended to take money from Blueknight's existing limited partners. Vitol denied these charges.<ref name=Baskin/><ref>{{cite news | first=Shira | last=Ovide | url=https://www.wsj.com/articles/BL-DLB-29987 | title=Michael Dell's Investment Firm Rails Against 'Self-Dealing' Energy Deal | work=[[The Wall Street Journal]] | date=December 17, 2010 | url-access=subscription}}</ref><ref>{{Cite news | first=Rod | last=Walton | url=https://tulsaworld.com/business/blueknight-investor-attacks-restructuring-deal/article_b690e628-38fc-5e7f-a9c6-be3986f1f74f.html | title=Blueknight investor attacks restructuring deal | work=[[Tulsa World]] | date=December 21, 2010 | url-access=subscription}}</ref>
In October 2011, the company fought a [[hostile takeover]] offer from [[Plains All American Pipeline]].<ref>{{cite news | url=https://www.wsj.com/articles/BL-DLB-35207 | title=Plains All American Trying to Buy SemGroup | first=Shira | last=Ovide | work=[[The Wall Street Journal]] | date=October 24, 2011 | url-access=subscription}}</ref><ref>{{cite news | url=https://www.wsj.com/articles/BL-DLB-35622 | title=Plains All American Trying to Buy SemGroup | first=Shira | last=Ovide | work=[[The Wall Street Journal]] | date=November 22, 2011 | url-access=subscription}}</ref> The offer was withdrawn in April 2012.<ref>{{cite news | url=https://www.wsj.com/articles/SB10001424052702304432704577349640467150640 | title=Plains All American Withdraws Bid for SemGroup | first=Ben | last=Lefebvre | work=[[The Wall Street Journal]] | date=April 17, 2012 | url-access=subscription}}</ref>
In July 2017, the company acquired one of the largest oil terminals in the U.S. for over $2 billion.<ref name=houston/><ref>{{cite news | url=https://www.nbcdfw.com/news/local/semgroup-buying-houston-fuel-oil-terminal-co-in-2b-deal/24733/ | title=SemGroup Buying Houston Fuel Oil Terminal Co. in $2B Deal | work=[[NBC News]] | date=June 7, 2017}}</ref><ref>{{cite news | url=https://www.chron.com/business/energy/article/SemGroup-Houston-Fuel-Oil-Terminal-Company-2-11198945.php | title=SemGroup buys Houston Fuel Oil Terminal Co. for $2 billion | first=David | last=Hunn | work=[[Houston Chronicle]] | date=June 6, 2017}}</ref>
In March 2018 the company sold its Mexican asphalt business to [[Ergon, Inc.]] for $72 million.<ref>{{Cite press release | url=https://www.globenewswire.com/news-release/2018/03/15/1438386/22695/en/SemGroup-Completes-Sale-of-Mexican-Asphalt-Business.html | title=SemGroup Completes Sale of Mexican Asphalt Business | publisher=[[GlobeNewswire]] | date=March 15, 2018}}</ref><ref>{{Cite news | url=https://www.oklahoman.com/article/5578782/tulsa-based-semgroup-to-sell-asphalt-business-for-70-million | title=Tulsa-based Semgroup to sell asphalt business for $70 million | work=[[The Oklahoman]] | date=January 9, 2018}}</ref>
In April 2018, it sold a petroleum products storage facility in the U.K.<ref>{{Cite news | url=https://www.oklahoman.com/article/5590730/plugging-in-oklahoma-energy-briefs-for-april-13-2018 | title=PLUGGING IN: Oklahoma energy briefs for April 13, 2018 | work=[[The Oklahoman]] | date=April 13, 2018}}</ref>
In December 2019, the company was acquired by [[Energy Transfer LP]].<ref>{{Cite press release | url=https://www.businesswire.com/news/home/20191205005499/en/Energy-Transfer-and-SemGroup-Announce-Successful-Completion-of-Merger | title=Energy Transfer and SemGroup Announce Successful Completion of Merger | publisher=[[Business Wire]] | date=December 5, 2019}}</ref>
===Leadership history===
[[Thomas L. Kivisto]] co-founded SemGroup and served as its President and Chief Executive Officer. Another co-founder was Gregory C. Wallace, who served as [[CFO]]. In 2008, Terry Ronan replaced Kivisto as President and CEO. In September 2009, SemGroup announced a new leadership team, to be led by a new president and CEO, Norm Szydlowski, an experienced oil industry executive who had previously served as president and CEO of [[Colonial Pipeline]] Co. A new board was also announced, chaired by John F. Chlebowski, a director of [[NRG Energy, Inc.]] and previously president/CEO of [[GATX]] Terminals.<ref>{{cite news | first=John | last=Stancavage | url=https://tulsaworld.com/business/semgroup-announces-new-president-board-of-directors/article_320fd43d-61b2-5f6c-b0e4-c007dcfdefed.html  | title=SemGroup announces new president, board of directors | work=[[Tulsa World]] | date=September 9, 2009 | url-access=subscription}}</ref>
President and CEO Carlin G. Conner was named to the company's top role effective April 1, 2014.<ref>{{Cite news | url=https://tulsaworld.com/business/semgroup-names-carlin-g-conner-as-new-ceo/article_ffde6f70-afbd-5e27-8ba5-a0afc54f4e41.html | title=SemGroup names Carlin G. Conner as new CEO | work=[[Tulsa World]] | date=March 7, 2014 | url-access=subscription}}</ref> Thomas R. McDaniel became chairman of the SemGroup board of directors on January 1, 2017. McDaniel served as a director of SemGroup since 2009.<ref>{{Cite news | url=http://www.okenergytoday.com/2016/12/semgroup-selects-thomas-r-mcdaniel-new-chairman-following-retirement-john-chlebowski/ | title=SemGroup Selects Thomas R. McDaniel as New Chairman Following Retirement of John Chlebowski | work=Oklahoma Energy Today | date=December 15, 2016}}</ref>
==References==
{{Reflist}}
{{Tulsa companies}}
{{Authority control}}
{{DEFAULTSORT:Semgroup}}
[[Category:2000 establishments in Oklahoma]]
[[Category:2019 disestablishments in Oklahoma]]
[[Category:2019 mergers and acquisitions]]
[[Category:Companies formerly listed on the New York Stock Exchange]]
[[Category:Companies established in 2000]]
[[Category:Companies that filed for Chapter 11 bankruptcy in 2008]]
[[Category:Energy companies established in 2000]]
[[Category:Non-renewable resource companies established in 2000]]