Rose Rock Midstream Announces Agreement to Acquire Remaining Crude Oil Assets of SemGroup Corporation

TULSA, Okla., Feb. 9, 2015 (GLOBE NEWSWIRE) -- Rose Rock Midstream^®, L.P. RRMS announced today that it has entered into an agreement to acquire the remaining crude oil assets of SemGroup^® Corporation SEMG, which include the Wattenberg Oil Trunkline System and SemGroup's 50% interest in the Glass Mountain Pipeline, for a purchase price of $325 million consisting of cash and 1.75 million Rose Rock Midstream common LP units. Rose Rock expects the acquisition to close in the first quarter of 2015, subject to customary closing conditions.

"We have been working toward this agreement for some time now, and we are pleased to have reached this important milestone for both Rose Rock and SemGroup," said Carlin Conner, president and chief executive officer of SemGroup, which is Rose Rock Midstream's general partner. "The transaction strengthens and diversifies Rose Rock's asset base while immediately increasing distributable cash flow on a per unit basis. In addition, this transaction underscores SemGroup's focus on value creation and advances our efforts to drop down assets to enhance returns and increase dividends for stockholders. We remain committed to dropping down SemGroup's U.S. gas assets in the near future."

The Glass Mountain Pipeline is a 210-mile crude oil pipeline system that comprises two lateral pipelines originating in the Granite Wash and Mississippi Lime Plays. The two pipelines, which have a current capacity of 140,000 barrels per day, join and then terminate in Cushing, OK.

The Wattenberg Oil Trunkline System is a 75-mile crude oil pipeline in the DJ Basin, which transports production from Noble Energy to the White Cliffs Pipeline. The Wattenberg Oil Trunkline System includes a 38-mile extension that came online February 1, 2015.

The terms of the acquisition agreement were approved by the Conflicts Committee of the Board of Directors of Rose Rock Midstream's general partner. The Conflicts Committee engaged Simmons & Company International to act as its independent financial advisor and to render a fairness opinion, and Akin Gump Strauss Hauer & Feld, LLP to act as its legal advisor.

About Rose Rock Midstream

Rose Rock Midstream^®, L.P. RRMS is a growth-oriented Delaware limited partnership formed by SemGroup^® Corporation SEMG to own, operate, develop and acquire a diversified portfolio of midstream energy assets. Headquartered in Tulsa, OK, Rose Rock Midstream provides crude oil gathering, transportation, storage and marketing services with the majority of its assets strategically located in or connected to the Cushing, Oklahoma crude oil marketing hub.

About SemGroup

Based in Tulsa, OK, SemGroup^® Corporation SEMG is a publicly traded midstream service company providing the energy industry the means to move products from the wellhead to the wholesale marketplace. SemGroup provides diversified services for end-users and consumers of crude oil, natural gas, natural gas liquids, refined products and asphalt. Services include purchasing, selling, processing, transporting, terminalling and storing energy.

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