SEMGROUP CORP, 10-Q filed on 11/12/2013
Quarterly Report
Document and Entity Information
9 Months Ended
Sep. 30, 2013
Oct. 31, 2013
Class A
Oct. 31, 2013
Class B
Document Type
10-Q 
 
 
Amendment Flag
false 
 
 
Document Period End Date
Sep. 30, 2013 
 
 
Document Fiscal Period Focus
Q3 
 
 
Document Fiscal Year Focus
2013 
 
 
Entity Registrant Name
SemGroup Corp 
 
 
Entity Central Index Key
0001489136 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Common Stock, Shares Outstanding
 
42,445,841 
28,235 
Condensed Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Current assets:
 
 
Cash and cash equivalents
$ 64,718 
$ 80,029 
Restricted cash
34,182 
34,678 
Accounts receivable, net
368,246 
346,169 
Receivable from affiliates
13,039 
6,178 
Inventories
46,609 
34,433 
Other current assets
15,167 
18,516 
Total current assets
541,961 
520,003 
Property, plant and equipment, net
1,057,116 
814,724 
Equity method investments
518,149 
387,802 
Goodwill
60,676 
9,884 
Other intangible assets, net
179,897 
7,585 
Other noncurrent assets, net
32,603 
8,181 
Total assets
2,390,402 
1,748,179 
Current liabilities:
 
 
Accounts payable
303,672 
253,623 
Payable to affiliates
2,102 
Accrued liabilities
81,509 
63,831 
Payables to pre-petition creditors
32,372 
32,933 
Deferred revenue
18,835 
18,973 
Other current liabilities
9,120 
4,960 
Current portion of long-term debt
26 
24 
Total current liabilities
447,636 
374,344 
Long-term debt
540,043 
206,062 
Deferred income taxes
53,588 
65,620 
Other noncurrent liabilities
95,418 
80,625 
Commitments and contingencies (Note 9)
   
   
SemGroup owners' equity:
 
 
Common stock (Note 10)
425 
420 
Additional paid-in capital
1,108,041 
1,039,189 
Treasury stock, at cost (Note 10)
(613)
(242)
Accumulated deficit
(100,890)
(145,674)
Accumulated other comprehensive loss
(5,606)
(1,299)
Total SemGroup owners' equity
1,001,357 
892,394 
Noncontrolling interests in consolidated subsidiaries
252,360 
129,134 
Total owners' equity
1,253,717 
1,021,528 
Total liabilities and owners' equity
$ 2,390,402 
$ 1,748,179 
Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Statement of Financial Position [Abstract]
 
 
Allowance for doubtful accounts
$ 3,728 
$ 3,687 
Accumulated depreciation
167,584 
130,886 
Accumulated amortization
$ 9,521 
$ 6,701 
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Revenues:
 
 
 
 
Product
$ 288,452 
$ 209,202 
$ 765,334 
$ 708,408 
Service
36,402 
29,800 
95,737 
86,727 
Other
32,894 
38,850 
108,617 
126,525 
Total revenues
357,748 
277,852 
969,688 
921,660 
Expenses:
 
 
 
 
Costs of products sold, exclusive of depreciation and amortization shown below
255,554 
189,830 
680,632 
651,283 
Operating
52,360 
52,367 
162,813 
172,750 
General and administrative
20,952 
16,680 
54,887 
53,073 
Depreciation and amortization
16,113 
12,081 
41,563 
35,687 
Loss (gain) on disposal of long-lived assets, net
408 
(3,615)
(130)
(3,496)
Total expenses
345,387 
267,343 
939,765 
909,297 
Earnings from equity method investments
7,483 
3,116 
39,689 
22,903 
Operating income
19,844 
13,625 
69,612 
35,266 
Other expenses (income):
 
 
 
 
Interest expense
9,080 
1,992 
15,971 
7,763 
Foreign currency transaction (gain) loss
(457)
355 
(973)
358 
Other expense, net
4,671 
9,354 
36,771 
16,783 
Total other expenses, net
13,294 
11,701 
51,769 
24,904 
Income (loss) from continuing operations before income taxes
6,550 
1,924 
17,843 
10,362 
Income tax expense (benefit)
3,413 
2,091 
(41,305)
985 
Income (loss) from continuing operations
3,137 
(167)
59,148 
9,377 
Income (loss) from discontinued operations, net of income taxes
(2)
(265)
65 
(456)
Net income (loss)
3,135 
(432)
59,213 
8,921 
Less: net income attributable to noncontrolling interests
5,054 
2,336 
14,429 
7,915 
Net income (loss) attributable to SemGroup
(1,919)
(2,768)
44,784 
1,006 
Other comprehensive income (loss), net of income taxes
6,105 
12,072 
(4,307)
14,930 
Comprehensive income (loss)
9,240 
11,640 
54,906 
23,851 
Less: comprehensive income attributable to noncontrolling interests
5,054 
2,336 
14,429 
7,915 
Comprehensive income (loss) attributable to SemGroup
4,186 
9,304 
40,477 
15,936 
Net income per common share (Note 11):
 
 
 
 
Basic
$ (0.05)
$ (0.07)
$ 1.06 
$ 0.02 
Diluted
$ (0.05)
$ (0.07)
$ 1.05 
$ 0.02 
Accumulated Deficit [Member]
 
 
 
 
Other expenses (income):
 
 
 
 
Net income (loss)
 
 
44,784 
 
Other comprehensive income (loss), net of income taxes
 
 
$ 0 
 
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Cash flows from operating activities:
 
 
Net income
$ 59,213 
$ 8,921 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Net unrealized (gain) loss related to derivative instruments
(1,759)
(432)
Depreciation and amortization
41,563 
35,687 
Depreciation, Depletion and Amortization, Nonproduction
 
36,123 
Loss (gain) on disposal of long-lived assets, net
(107)
(3,496)
Earnings from equity method investments
(39,689)
(22,903)
Distributions from equity investments
39,714 
25,053 
Amortization of debt issuance costs
1,943 
2,078 
Deferred tax benefit
(49,448)
(3,738)
Non-cash equity compensation
5,311 
4,832 
Fair value adjustment of warrants
37,028 
17,082 
Provision for uncollectible accounts receivable, net of recoveries
(357)
(828)
Foreign currency transaction (gain) loss
(973)
358 
Changes in operating assets and liabilities (Note 12)
4,080 
(11,292)
Net cash provided by operating activities
96,519 
51,758 
Cash flows from investing activities:
 
 
Capital expenditures
(131,650)
(82,123)
Proceeds from sale of long-lived assets
1,048 
347 
Investments in non-consolidated subsidiaries
(143,463)
(63,999)
Payments to acquire businesses
(356,201)
Proceeds from sale of non-consolidated affiliate
3,500 
Distributions in excess of equity in earnings of affiliates
13,091 
10,569 
Net cash used in investing activities
(617,175)
(131,706)
Cash flows from financing activities:
 
 
Debt issuance costs
(11,865)
(694)
Borrowings on credit facilities
928,474 
260,500 
Principal payments on credit facilities and other obligations
(594,403)
(179,001)
Proceeds from issuance of Rose Rock Midstream, L.P. common units, net of offering costs
210,226 
Distributions to noncontrolling interests
(11,458)
(5,754)
Proceeds from warrant exercises
225 
Repurchase of stock-based awards for payment of statutory taxes due on stock-based compensation
(371)
(242)
Payments of dividends
(16,387)
Net cash provided by financing activities
504,441 
74,809 
Effect of exchange rate changes on cash and cash equivalents
904 
(977)
Change in cash and cash equivalents
(15,311)
(6,116)
Change in cash and cash equivalents included in discontinued operations
(36)
Change in cash and cash equivalents from continuing operations
(15,311)
(6,152)
Cash and cash equivalents at beginning of period
80,029 
73,613 
Cash and cash equivalents at end of period
$ 64,718 
$ 67,461 
Overview
OVERVIEW
OVERVIEW
SemGroup Corporation is a Delaware corporation headquartered in Tulsa, Oklahoma. SemGroup Corporation is the successor entity of SemGroup, L.P., which was an Oklahoma limited partnership. The terms “we,” “our,” “us,” “SemGroup,” “the Company” and similar language used in these notes to the unaudited condensed consolidated financial statements refer to SemGroup Corporation, SemGroup, L.P., and their subsidiaries.
Basis of presentation
The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and the rules and regulations of the Securities and Exchange Commission ("SEC"). These financial statements include all normal and recurring adjustments that, in the opinion of management, are necessary to present fairly the financial position of the Company and the results of its operations and its cash flows.
The accompanying condensed consolidated financial statements are unaudited. The condensed consolidated balance sheet at December 31, 2012, is derived from audited financial statements.
Our condensed consolidated financial statements include the accounts of our controlled subsidiaries. All significant transactions between our consolidated subsidiaries have been eliminated.
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts and disclosures in the financial statements. Although management believes these estimates are reasonable, actual results could differ materially from these estimates. The results of operations for the three months and nine months ended September 30, 2013, are not necessarily indicative of the results to be expected for the full year ending December 31, 2013.
Pursuant to the rules and regulations of the SEC, the accompanying condensed consolidated financial statements do not include all of the information and notes normally included with financial statements prepared in accordance with accounting principles generally accepted in the United States. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2012, which are included in our Annual Report on Form 10-K for the year ended December 31, 2012, filed with the SEC.
Certain reclassifications have been made to conform previously reported balances to the current presentation.
Our significant accounting policies are consistent with those described in our Annual Report on Form 10-K for the year ended December 31, 2012.
Recent accounting pronouncements
On January 31, 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2013-01, "Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities," which clarifies the scope of the offsetting disclosure requirements in ASU 2011-11, "Disclosures About Offsetting Assets and Liabilities." Under ASU 2013-01, the disclosure requirements apply to derivative instruments accounted for in accordance with Accounting Standards Codification ("ASC") 815, "Derivatives and Hedging," including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending arrangements that are either offset on the balance sheet or subject to an enforceable master netting arrangement or similar agreement. ASU 2013-01 is effective for fiscal years beginning on or after January 1, 2013, and interim periods within those years. Retrospective application is required for all comparative periods presented. We adopted this guidance in the first quarter of 2013. The impact of adoption was not material.
On February 5, 2013, the FASB issued ASU 2013-02, "Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income." This ASU adds new disclosure requirements for items reclassified out of accumulated other comprehensive income ("AOCI"). The ASU is intended to help entities improve the transparency of changes in other comprehensive income ("OCI") and items reclassified out of AOCI in their financial statements. It does not amend any existing requirements for reporting net income or OCI in the financial statements. We adopted this guidance in the first quarter of 2013. The impact of adoption was not material.
On February 28, 2013, the FASB issued ASU 2013-04, "Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date (a consensus of the FASB Emerging Issues Task Force)." The ASU requires entities to “measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, as the sum of the following:
the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors; and
any additional amount the reporting entity expects to pay on behalf of its co-obligors.”
Required disclosures include a description of the joint and several arrangement and the total outstanding amount of the obligation for all joint parties. The ASU permits entities to aggregate disclosures (as opposed to providing separate disclosures for each joint and several obligation). These disclosure requirements are incremental to the existing related-party disclosure requirements in ASC 850, "Related Party Disclosures." The ASU is effective for public entities for all prior periods in fiscal years beginning on or after December 15, 2013, and interim reporting periods within those years. The Company will adopt this guidance in the first quarter of 2014. The impact is not expected to be material.
On March 4, 2013, the FASB issued ASU 2013-05, "Parent's Accounting for the Cumulative Translation Adjustment Upon Derecognition of Certain Subsidiaries or Groups of Assets Within a Foreign Entity or of an Investment in a Foreign Entity - a consensus of the FASB Emerging Issues Task Force”, which indicates that the entire amount of a cumulative translation adjustment ("CTA") related to an entity's investment in a foreign entity should be released when there has been a:
sale of a subsidiary or group of net assets within a foreign entity and the sale represents the substantially complete liquidation of the investment in the foreign entity;
loss of a controlling financial interest in an investment in a foreign entity (i.e., the foreign entity is deconsolidated); or
step acquisition for a foreign entity (i.e., when an entity has changed from applying the equity method for an investment in a foreign entity to consolidating the foreign entity).
The ASU does not change the requirement to release a pro rata portion of the CTA of the foreign entity into earnings for a partial sale of an equity method investment in a foreign entity. For public entities, this ASU is effective for fiscal years beginning on or after December 15, 2013, and interim periods within those years. The Company will adopt this guidance in the first quarter of 2014. The impact is not expected to be material.
In July 2013, the FASB issued ASU 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists," which requires an unrecognized tax benefit to be classified as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except in certain circumstances. For public entities, this ASU is effective for fiscal years beginning on or after December 15, 2013, and interim periods within those years. The Company will adopt this guidance in the first quarter of 2014. The impact is not expected to be material.
Rose Rock Midstream, L.P.
ROSE ROCK MIDSTREAM, L.P.
ROSE ROCK MIDSTREAM, L.P.
We control the operations of our consolidated subsidiary, Rose Rock Midstream, L.P. ("Rose Rock") through our ownership of the general partner interest. As of September 30, 2013, we own the 2% general partner interest and a 46.7% limited partner interest made up of 2.9 million common units, 8.4 million subordinated units and 1.25 million Class A units.
In August 2013, Rose Rock sold 4.75 million common limited partner units to third-party purchasers for $152.5 million, net of underwriting discounts and commissions. Proceeds were used to repay borrowings on the Rose Rock credit facility.
On January 11, 2013, we contributed a 33% interest in SemCrude Pipeline, L.L.C. ("SCPL") to Rose Rock in exchange for (i) cash of approximately $189.5 million, (ii) the issuance of 1.5 million common units, (iii) the issuance of 1.25 million Class A units and (iv) an increase of the capital account of the general partner of Rose Rock and a related issuance of general partner interest, to allow the general partner of Rose Rock to maintain its 2% general partner interest. SCPL owns a 51% membership interest in White Cliffs Pipeline, L.L.C. ("White Cliffs"), which owns a 527-mile pipeline that transports crude oil from Platteville, Colorado to Cushing, Oklahoma (the "White Cliffs Pipeline"), giving Rose Rock an indirect 17% interest in White Cliffs.
The Class A units are not entitled to receive any distribution of available cash (other than upon liquidation) prior to the first day of the month immediately following the first month for which the average daily throughput volumes on the White Cliffs Pipeline for such month are 125,000 barrels per day or greater. Upon such date, the Class A units will automatically convert into common units.
As this transaction was between parties under common control, Rose Rock recorded its interest in SCPL at SemGroup's historical value and, as such, no gain on the sale was recognized by SemGroup. Proceeds in excess of the historical value were accounted for as an equity transaction between Rose Rock and SemGroup and resulted in a $90.5 million reduction to noncontrolling interests in consolidated subsidiaries and an offsetting increase to additional paid-in capital of $56.8 million (net of tax impact of $33.7 million). This non-cash entry represents the portion of the proceeds in excess of historical cost which were attributed to Rose Rock's third-party unitholders.
In connection with this transaction, Rose Rock issued and sold 2.0 million common units to third-party purchasers in a private placement for aggregate consideration of $59.3 million. In addition, Rose Rock exercised the accordion feature of its revolving credit facility and increased the total borrowing capacity under the credit facility from $150 million to $385 million and made a borrowing of $133.5 million under the credit facility. The proceeds from the private placement and the borrowing were used by Rose Rock to fund the cash consideration in the transaction with us and to pay certain related transaction costs and expenses.
SemGroup incurred $1.4 million of general and administrative expense associated with the transaction including amounts expensed by Rose Rock. Rose Rock incurred $3.7 million of cost, of which $1.6 million of equity issuance costs were offset against proceeds, $1.6 million was related to the borrowing and was deferred and $0.5 million was expensed as general and administrative expense in the condensed consolidated statement of operations and comprehensive income.
Outside ownership interests in Rose Rock are reflected in “noncontrolling interests in consolidated subsidiaries” on our condensed consolidated balance sheets at September 30, 2013 and December 31, 2012. The portion of Rose Rock’s net income attributable to outside owners is reflected within “net income attributable to noncontrolling interests” in our condensed consolidated statements of operations and comprehensive income for the three months and nine months ended September 30, 2013.
We receive distributions from Rose Rock on our common and subordinated units, our 2% general partner interest and incentive distribution rights. Rose Rock intends to pay a minimum quarterly distribution of $0.3625 per unit, to the extent it has sufficient available cash, as defined in Rose Rock’s partnership agreement. Rose Rock’s partnership agreement requires Rose Rock to distribute all of its available cash each quarter in the following manner:
 
Total Quarterly Distributions
Per Unit Target Amount
 
Marginal Percentage
Interest in Distributions
 
Unitholders
 
General
Partner
 
Incentive
Distribution
Rights
Minimum Quarterly Distributions
 
 
 
 
 
 
$
0.362500

 
98.0
%
 
2.0
%
 

First Target Distribution
above
 
$
0.362500

 
up to
 
$
0.416875

 
98.0
%
 
2.0
%
 

Second Target Distribution
above
 
$
0.416875

 
up to
 
$
0.453125

 
85.0
%
 
2.0
%
 
13.0
%
Third Target Distribution
above
 
$
0.453125

 
up to
 
$
0.543750

 
75.0
%
 
2.0
%
 
23.0
%
Thereafter
 
 
 
 
above
 
$
0.543750

 
50.0
%
 
2.0
%
 
48.0
%
 
The following table shows the cash distributions paid or declared during 2013 and 2012 (in thousands, except for per unit amounts):
 
 
Record Date
Payment Date
Distribution
Per Unit
 
Distributions Paid/To Be Paid
Quarter Ended
 
SemGroup
Noncontrolling
Interest
Common Units
Total
Distributions
 
General
Partner
Incentive
Distributions
Common
Units
Subordinated
Units
December 31, 2011
*
February 3, 2012
February 13, 2012
$
0.0670

$
23

$

$
93

$
561

$
470

$
1,147

March 31, 2012
 
May 7, 2012
May 15, 2012
$
0.3725

  
$
128

$

$
517

$
3,125

$
2,607

$
6,377

June 30, 2012
 
August 6, 2012
August 14, 2012
$
0.3825

 
$
131

$

$
532

$
3,209

$
2,678

$
6,550

September 30, 2012
 
November 5, 2012
November 14, 2012
$
0.3925

 
$
134

$

$
545

$
3,294

$
2,748

$
6,721

December 31, 2012
 
February 4, 2013
February 14, 2013
$
0.4025

 
$
167

$

$
1,163

$
3,377

$
3,624

$
8,331

March 31, 2013
 
May 6, 2013
May 15, 2013
$
0.4300

 
$
179

$
41

$
1,242

$
3,607

$
3,872

$
8,941

June 30, 2013
 
August 5, 2013
August 14, 2013
$
0.4400


$
183

$
72

$
1,271

$
3,692

$
3,962

$
9,180

September 30, 2013
**
November 5, 2013
November 14, 2013
$
0.4500

**
$
232

$
127

$
1,301

$
3,775

$
6,189

$
11,624

*Minimum quarterly distribution for quarter ended December 31, 2011 was prorated for the period beginning immediately after the closing of Rose Rock’s IPO, December 14, 2011 through December 31, 2011.
**Expected payment date and amounts for distributions related to the quarter ended September 30, 2013.

Certain summarized balance sheet information of Rose Rock is shown below (in thousands):
 
(unaudited)
 
 
 
September 30,
2013
 
December 31,
2012
Cash
$
1,914

 
$
108

Other current assets
292,386

 
250,509

Property, plant and equipment, net
313,193

 
291,530

Equity method investment
77,449

 

Goodwill
27,261

 

Other noncurrent assets, net
10,536

 
2,579

Total assets
$
722,739

 
$
544,726

 
 
 
 
Current liabilities
$
254,491

 
$
231,843

Long-term debt
85,043

 
4,562

Partners’ capital attributable to SemGroup
130,845

 
179,187

Partners’ capital attributable to noncontrolling interests
252,360

 
129,134

Total liabilities and partners’ capital
$
722,739

 
$
544,726


Certain summarized income statement information of Rose Rock for the three months and nine months ended September 30, 2013 and 2012 is shown below (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Revenue
$
181,831

 
$
131,554

 
$
514,485

 
$
468,687

Cost of products sold
$
157,550

 
$
111,790

 
$
446,507

 
$
412,847

Operating, general and administrative expenses
$
12,394

 
$
9,779

 
$
30,434

 
$
25,976

Depreciation and amortization expense
$
4,130

 
$
3,066

 
$
11,327

 
$
9,032

Earnings from equity method investment
$
3,527

 
$

 
$
10,431

 
$

Net income
$
9,411

 
$
6,469

 
$
30,539

 
$
19,353

Investments in Non-Consolidated Subsidiaries
INVESTMENTS IN NON-CONSOLIDATED SUBSIDIARIES
INVESTMENTS IN NON-CONSOLIDATED SUBSIDIARIES

Our investments in affiliates over which we have significant influence, but for which we do not control the operating decisions of the investee, are accounted for under the equity method. Under the equity method, we do not report the individual assets and liabilities of our investees on our condensed consolidated balance sheets. Instead, our ownership interest is reflected in one line as a noncurrent asset on our condensed consolidated balance sheets. Our equity method investments consist of the following (in thousands):
 
September 30, 2013
 
December 31, 2012
White Cliffs
$
228,076

 
$
138,970

NGL Energy
187,632

 
174,398

Glass Mountain
102,441

 
74,434

Total equity method investments
$
518,149

 
$
387,802


    
Under the equity method, we do not report the individual revenues and expenses of our investees in our condensed consolidated statements of income. Instead, our interest in the earnings of our investees is reflected in one line item on our condensed consolidated statement of operations and comprehensive income. Our earnings from equity method investments consist of the following (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
White Cliffs
$
10,786

 
$
10,021

 
$
31,886

 
$
25,053

NGL Energy
(3,288
)
 
(6,905
)
 
7,828

 
(2,150
)
Glass Mountain
(15
)
 

 
(25
)
 

Total earnings from equity method investments
$
7,483

 
$
3,116

 
$
39,689

 
$
22,903



Cash distributions received from equity methods investments consist of the following (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
White Cliffs
$
12,755

 
$
10,794

 
$
39,436

 
$
30,561

NGL Energy
4,671

 
2,090

 
13,369

 
5,063

Glass Mountain

 

 

 

Total cash distributions received from equity method investments
$
17,426

 
$
12,884

 
$
52,805

 
$
35,624


White Cliffs
We account for our 51% ownership of White Cliffs under the equity method, as the other owners have substantive rights to participate in its management.
In August 2012, the owners of White Cliffs approved an expansion project to construct a 12" pipeline from Platteville, Colorado to Cushing, Oklahoma. The project is expected to cost approximately $300 million, which will be funded by capital calls to owners. Our funding requirement will be 51% of the total cost. We have contributed approximately $97.8 million for project funding up through September 30, 2013, including $35.9 million and $95.5 million for the three months and nine months ended September 30, 2013, respectively, and estimate our expected remaining contributions to be $53.3 million, which will be made in 2014.
Certain summarized income statement information of White Cliffs for the three months and nine months ended September 30, 2013 and 2012 is shown below (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Revenue
$
31,453

 
$
28,522

 
$
92,238

 
$
76,910

Operating, general and administrative expenses
$
5,141

 
$
3,857

 
$
14,433

 
$
11,382

Depreciation and amortization expense
$
4,720

 
$
4,995

 
$
14,150

 
$
14,964

Net income
$
21,579

 
$
19,670

 
$
63,642

 
$
50,564


The equity in earnings of White Cliffs for the three months and nine months ended September 30, 2013 and 2012 reported in our condensed consolidated statement of operations and comprehensive income is less than 51% of the net income of White Cliffs for the same period. This is due to certain general and administrative expenses we incur in managing the operations of White Cliffs that the other owners are not obligated to share. Such expenses are recorded by White Cliffs and are allocated to our ownership interest. White Cliffs recorded $0.5 million and $24 thousand of such general and administrative expense for the three months ended September 30, 2013 and 2012, respectively, and $1.2 million and $1.5 million for the nine months ended September 30, 2013 and 2012, respectively.
NGL Energy Partners LP
We own 9,133,409 common units representing limited partner interests in NGL Energy Partners LP (NYSE: NGL) (“NGL Energy”), which represents approximately 17.0% of the total 53,622,659 limited partner units of NGL Energy outstanding at June 30, 2013, and a 11.78% interest in the general partner of NGL Energy.
At September 30, 2013, the fair market value of our 9,133,409 common unit investment in NGL Energy was $281.7 million, based on a September 30, 2013 closing price of $30.84 per common unit. This does not reflect our interest in the general partner of NGL Energy. The fair value of our limited partner investment in NGL Energy is categorized as a Level 1 measurement, as it is based on quoted market prices.
Our policy is to record our equity in earnings of NGL Energy on a one-quarter lag, as we do not expect information on the earnings of NGL Energy to always be available in time to consistently record the earnings in the quarter in which they are generated. Accordingly, the equity in earnings from NGL Energy, which is reflected in our condensed consolidated statements of operations and comprehensive income for the three months and nine months ended September 30, 2013 and 2012, relates to the earnings of NGL Energy for the three months and nine months ended June 30, 2013 and 2012, prorated for the period of time we held our ownership interest in NGL Energy.
Certain unaudited summarized income statement information of NGL Energy for the three months and nine months ended June 30, 2013 and 2012 is shown below (in thousands):
 
Three Months Ended June 30,
 
Nine Months Ended June 30,
 
2013

2012
 
2013
 
2012
Revenue
$
1,385,957

 
$
326,436

 
$
4,341,778

 
$
1,236,023

Cost of products sold
$
1,303,076

 
$
298,985

 
$
3,989,511

 
$
1,128,581

Operating, general and administrative expenses
$
67,499

 
$
33,298

 
$
206,824

 
$
76,015

Depreciation and amortization expense
$
22,724

 
$
9,227

 
$
68,989

 
$
21,260

Net income
$
(17,508
)
 
$
(24,710
)
 
$
45,310

 
$
(4,678
)
 
Glass Mountain Pipeline, LLC
In May 2012, we formed a joint venture, Glass Mountain Pipeline, LLC (“Glass Mountain” or "GMP"), to construct, maintain and operate a 210-mile crude oil pipeline system ("the Glass Mountain Pipeline") originating in Alva and Arnett, Oklahoma and terminating at Cushing, Oklahoma. The Glass Mountain Pipeline is expected to be operational in January 2014. Once the pipeline is in service, it will be operated by a subsidiary of Rose Rock. Our original ownership interest in GMP was 25%. In September 2012, we acquired an additional 25% ownership interest in GMP, bringing our total ownership interest to 50% . We account for our investment in GMP using the equity method. As of September 30, 2013, we have invested $102.4 million in GMP including our capital contributions, amounts paid to acquire the additional ownership percentage, and capitalized interest. We invested $6.7 million and $28.0 million in GMP for the three months and nine months ended September 30, 2013, respectively. We expect to make additional contributions of approximately $26.5 million for the remainder of 2013 and $3.5 million in 2014.
Segments
SEGMENTS
4.
SEGMENTS
Our businesses are organized based on the nature and location of the services they provide. Certain summarized information related to our reportable segments is shown in the tables below. None of the operating segments have been aggregated, other than White Cliffs and Glass Mountain, which have been included within the Crude segment. Our investment in NGL Energy is included within the SemStream segment. Although “Corporate and Other” does not represent an operating segment, it is included in the tables below to reconcile segment information to that of the consolidated Company. Eliminations of transactions between segments are also included within “Corporate and Other” in the tables below.
The accounting policies of each segment are the same as the accounting policies of the consolidated Company. Transactions between segments are generally recorded based on prices negotiated between the segments. Certain general and administrative and interest expenses incurred at the corporate level are allocated to the segments, based on our allocation policies in effect at the time.

 
Three Months Ended September 30, 2013
 
Crude

SemStream

SemCAMS

SemGas

SemLogistics

SemMexico

Corporate
and Other

Consolidated
 
 
 
 
 
 
 
(dollars in thousands)
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
External
$
181,831

 
$

 
$
48,979

 
$
59,220

 
$
2,169

 
$
65,549

 
$

 
$
357,748

Intersegment

 

 

 
6,575

 

 

 
(6,575
)
 

Total revenues
181,831

 

 
48,979

 
65,795

 
2,169

 
65,549

 
(6,575
)
 
357,748

Expenses:
 
 
 
 

 

 
 
 

 
 
 
 
Costs of products sold, exclusive of depreciation and amortization shown below
157,550

 

 
106

 
48,403

 

 
56,070

 
(6,575
)
 
255,554

Operating
9,098

 

 
33,980

 
5,436

 
1,616

 
2,230

 

 
52,360

General and administrative
3,360

 
114

 
3,446

 
1,923

 
1,679

 
2,510

 
7,920

 
20,952

Depreciation and amortization
4,130

 

 
2,631

 
4,992

 
2,334

 
1,529

 
497

 
16,113

Loss (gain) on disposal of long-lived assets, net

 

 

 
679

 

 
(271
)
 

 
408

Total expenses
174,138

 
114


40,163


61,433


5,629


62,068


1,842


345,387

Earnings from equity method investments
10,771

 
(3,288
)
 

 

 

 

 

 
7,483

Operating income (loss)
18,464

 
(3,402
)
 
8,816

 
4,362

 
(3,460
)
 
3,481

 
(8,417
)

19,844

Other expenses (income), net
3,634

 
(1,238
)
 
4,720

 
880

 
(217
)
 
(21
)
 
5,536

 
13,294

Income (loss) from continuing operations before income taxes
$
14,830

 
$
(2,164
)
 
$
4,096

 
$
3,482

 
$
(3,243
)
 
$
3,502

 
$
(13,953
)

$
6,550

Total assets at September 30, 2013 (excluding intersegment receivables)
$
1,012,535

 
$
187,632

 
$
320,431

 
$
510,129

 
$
167,741

 
$
95,317

 
$
96,617

 
$
2,390,402


For the three months ended September 30, 2013, one customer from our Crude segment accounted for 13% of our total consolidated revenue.

 
Three Months Ended September 30, 2012
 
Crude
 
SemStream
 
SemCAMS
 
SemGas
 
SemLogistics
 
SemMexico
 
Corporate
and Other
 
Consolidated
 
 
 
 
 
 
 
(dollars in thousands)
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
External
$
131,616

 
$

 
$
54,301

 
$
27,627

 
$
2,213

 
$
62,095

 
$

 
$
277,852

Intersegment

 

 

 
2,251

 

 

 
(2,251
)
 

Total revenues
131,616

 


54,301


29,878


2,213


62,095


(2,251
)
 
277,852

Expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Costs of products sold, exclusive of depreciation and amortization shown below
111,790

 

 
309

 
24,068

 
97

 
55,817

 
(2,251
)
 
189,830

Operating
6,042

 
7

 
40,081

 
2,931

 
1,436

 
1,870

 

 
52,367

General and administrative
5,015

 
528

 
3,354

 
1,329

 
990

 
1,501

 
3,963

 
16,680

Depreciation and amortization
3,066

 

 
2,664

 
1,797

 
2,388

 
1,536

 
630

 
12,081

Gain on disposal of long-lived assets, net
(3,500
)
 

 

 
(3
)
 

 
(112
)
 

 
(3,615
)
Total expenses
122,413

 
535


46,408


30,122


4,911


60,612


2,342

 
267,343

Earnings from equity method investments
10,021

 
(6,905
)
 

 

 

 

 

 
3,116

Operating income (loss)
19,224

 
(7,440
)

7,893


(244
)

(2,698
)

1,483


(4,593
)
 
13,625

Other expenses (income), net
(119
)
 
(2,551
)
 
3,419

 
(378
)
 
337

 
(82
)
 
11,075

 
11,701

Income (loss) from continuing operations before income taxes
$
19,343

 
$
(4,889
)

$
4,474


$
134


$
(3,035
)

$
1,565


$
(15,668
)
 
$
1,924


 
Nine Months Ended September 30, 2013
 
Crude
 
SemStream
 
SemCAMS
 
SemGas
 
SemLogistics
 
SemMexico
 
Corporate
and Other
 
Consolidated
 
 
 
 
 
 
 
(dollars in thousands)
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
External
$
514,485

 
$

 
$
151,219

 
$
135,782

 
$
7,827

 
$
160,375

 
$

 
$
969,688

Intersegment

 

 

 
15,678

 

 

 
(15,678
)
 

Total revenues
514,485

 

 
151,219

 
151,460

 
7,827

 
160,375

 
(15,678
)
 
969,688

Expenses:
 
 
 
 

 

 
 
 

 
 
 
 
Costs of products sold, exclusive of depreciation and amortization shown below
446,507

 

 
290

 
111,141

 

 
138,372

 
(15,678
)
 
680,632

Operating
20,527

 
1

 
116,372

 
13,869

 
5,303

 
6,741

 

 
162,813

General and administrative
10,778

 
430

 
10,933

 
5,112

 
4,285

 
7,175

 
16,174

 
54,887

Depreciation and amortization
11,327

 

 
7,925

 
9,353

 
6,987

 
4,467

 
1,504

 
41,563

Loss (gain) on disposal of long-lived assets, net
(25
)
 
6

 

 
673

 

 
(784
)
 

 
(130
)
Total expenses
489,114

 
437

 
135,520

 
140,148

 
16,575

 
155,971

 
2,000

 
939,765

Earnings from equity method investments
31,861

 
7,828

 

 

 

 

 

 
39,689

Operating income (loss)
57,232

 
7,391

 
15,699

 
11,312

 
(8,748
)
 
4,404

 
(17,678
)
 
69,612

Other expenses (income), net
10,925

 
(3,399
)
 
14,179

 
2,149

 
896

 
(339
)
 
27,358

 
51,769

Income (loss) from continuing operations before income taxes
$
46,307

 
$
10,790

 
$
1,520

 
$
9,163

 
$
(9,644
)
 
$
4,743

 
$
(45,036
)
 
$
17,843


For the nine months ended September 30, 2013, two customers from our Crude segment each accounted for 10% of our total consolidated revenue.
 
Nine Months Ended September 30, 2012
 
Crude
 
SemStream
 
SemCAMS
 
SemGas
 
SemLogistics
 
SemMexico
 
Corporate
and Other
 
Consolidated
 
 
 
 
 
 
 
(dollars in thousands)
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
External
$
468,748

 
$
7

 
$
169,149

 
$
81,917

 
$
8,610

 
$
193,229

 
$

 
$
921,660

Intersegment

 

 

 
7,535

 

 

 
(7,535
)
 

Total revenues
468,748

 
7

 
169,149

 
89,452

 
8,610

 
193,229

 
(7,535
)
 
921,660

Expenses:
 
 
 
 

 

 
 
 

 
 
 
 
Costs of products sold, exclusive of depreciation and amortization shown below
412,847

 
33

 
499

 
70,607

 
196

 
174,636

 
(7,535
)
 
651,283

Operating
17,957

 
(18
)
 
135,165

 
9,092

 
4,521

 
6,033

 

 
172,750

General and administrative
9,796

 
582

 
10,404

 
4,564

 
4,249

 
6,730

 
16,748

 
53,073

Depreciation and amortization
9,032

 

 
7,910

 
5,153

 
7,040

 
4,614

 
1,938

 
35,687

Gain on disposal of long-lived assets, net
(3,444
)
 

 

 
(3
)
 

 
(49
)
 

 
(3,496
)
Total expenses
446,188

 
597

 
153,978

 
89,413

 
16,006

 
191,964

 
11,151

 
909,297

Earnings from equity method investments
25,053

 
(2,150
)
 

 

 

 

 

 
22,903

Operating income (loss)
47,613

 
(2,740
)
 
15,171

 
39

 
(7,396
)
 
1,265

 
(18,686
)
 
35,266

Other expenses (income), net
(739
)
 
(2,507
)
 
13,974

 
924

 
1,805

 
233

 
11,214

 
24,904

Income (loss) from continuing operations before income taxes
$
48,352

 
$
(233
)
 
$
1,197

 
$
(885
)
 
$
(9,201
)
 
$
1,032

 
$
(29,900
)
 
$
10,362

Inventories
Inventories
INVENTORIES
Inventories consist of the following (in thousands):
 
September 30,
2013
 
December 31,
2012
Crude oil
$
32,720

 
$
24,840

Asphalt and other
13,889

 
9,593

Total inventories
$
46,609

 
$
34,433

Financial Instruments
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS
Fair value of financial instruments
We record certain financial assets and liabilities at fair value at each balance sheet date. The tables below summarize the balances of these assets and liabilities at September 30, 2013 and December 31, 2012 (in thousands):

 
September 30, 2013
 
December 31, 2012
 
Level 1
 
Netting*
 
Total
 
Level 1
 
Netting*
 
Total
Assets:
 
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
$
857

 
$
(132
)
 
$
725

 
$
22

 
$
(22
)
 
$

Total assets
857

 
(132
)
 
725

 
22

 
(22
)
 

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
$
132

 
$
(132
)
 
$

 
$
1,056

 
$
(22
)
 
$
1,034

Warrants
46,350

 

 
46,350

 
32,858

 

 
32,858

Total liabilities
46,482

 
(132
)
 
46,350

 
33,914

 
(22
)
 
33,892

Net assets (liabilities) at fair value
$
(45,625
)
 
$

 
$
(45,625
)
 
$
(33,892
)
 
$

 
$
(33,892
)
*Relates primarily to exchange traded futures. Gain and loss positions on multiple contracts are settled net on a daily basis with the exchange.
“Level 1” measurements use as inputs unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. These include commodity futures contracts that are traded on an exchange. These also include common stock warrants (Note 10) which are traded on the New York Stock Exchange.
“Level 2” measurements use as inputs market observable and corroborated prices for similar commodity derivative contracts. Assets and liabilities classified as Level 2 include over-the-counter (“OTC”) traded forward contracts and swaps.
“Level 3” measurements use as inputs information from a pricing service and internal valuation models incorporating observable and unobservable market data. These may include commodity derivatives, such as forwards and swaps for which there is not a highly liquid market, and therefore are not included in Level 2.
Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the measurement requires judgment and may affect the valuation of assets and liabilities and their placement within the fair value levels. At September 30, 2013, all of our physical fixed price forward purchases and sales contracts were being accounted for as normal purchases and normal sales.
There were no financial assets or liabilities classified as Level 2 or Level 3 during the three months and nine months ended September 30, 2013 and 2012, as such no rollforward of activity has been presented.
Commodity derivative contracts
Our consolidated results of operations and cash flows are impacted by changes in market prices for petroleum products. This exposure to commodity price risk is managed, in part, by entering into various commodity derivatives.
We seek to manage the price risk associated with our marketing operations by limiting our net open positions through (i) the concurrent purchase and sale of like quantities of petroleum products to create back-to-back transactions that are intended to lock in positive margins based on the timing, location or quality of the petroleum products purchased and delivered or (ii) derivative contracts. Our storage and transportation assets can also be used to mitigate location and time basis risk. All marketing activities are subject to our Comprehensive Risk Management Policy, which establishes limits in order to manage risk and mitigate financial exposure.
Our commodity derivatives can be comprised of swaps, future contracts and forward contracts of crude oil and natural gas liquids. These are defined as follows:
Swaps – OTC transactions where a floating price, basis or index is exchanged for a fixed (or a different floating) price, basis or index at a preset schedule in the future, according to an agreed-upon formula.
Futures contracts – Exchange traded contracts to buy or sell a commodity. These contracts are standardized by the exchange in terms of quality, quantity, delivery period and location for each commodity.
Forward contracts – OTC contracts to buy or sell a commodity at an agreed upon future date. The buyer and seller agree on specific terms (price, quantity, delivery period and location) and conditions at the inception of the contract.
The following table sets forth the unaudited notional quantities for commodity derivative instruments entered into (in thousands of barrels):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Sales
695

 
470

 
2,025

 
1,153

Purchases
805

 
380

 
2,095

 
1,066


We have not designated any of our commodity derivative instruments as accounting hedges. We record the fair value of our commodity derivative instruments on our condensed consolidated balance sheets in other current assets and other current liabilities in the following amounts (in thousands):
 
September 30, 2013
 
December 31, 2012
 
Assets
 
Liabilities
 
Assets
 
Liabilities
Commodity contracts
$
725

 
$

 
$

 
$
1,034


We have posted margin deposits as collateral with brokers who have the right of set off associated with these funds. Our margin accounts were in a net liability position at September 30, 2013 of $0.1 million. At December 31, 2012, our margin deposit balance was $1.9 million. These margin account balances have not been offset against our net commodity derivative instrument (contract) positions. Had these margin deposits been netted against our net commodity derivative instrument (contract) positions as of September 30, 2013 and December 31, 2012, we would have had net asset positions of $0.6 million and $0.8 million, respectively.
Realized and unrealized gains (losses) from our commodity derivatives were recorded to product revenue in the following amounts (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Commodity contracts
$
(1,652
)
 
$
(631
)
 
$
(2,430
)
 
$
(342
)

Warrants
As described in Note 10, upon emergence from bankruptcy, we issued certain common stock warrants. These warrants are recorded at fair value in other noncurrent liabilities on the condensed consolidated balance sheets, with changes in the fair value recorded to other expense (income).
Income Taxes
INCOME TAXES
INCOME TAXES
Due to our emergence from bankruptcy and overall restructuring, we recorded a full valuation allowance on all U.S. federal and state deferred tax assets in all periods prior to March 31, 2013. Deferred tax assets are reduced by a valuation allowance when a determination is made that it is more likely than not that some, or all, of the deferred tax assets will not be realized based on the weight of all available evidence. Evidence which is objectively verifiable carries a higher weight in the analysis. The ultimate realization of deferred tax assets is dependent upon the existence of sufficient taxable income of the appropriate character within the carryback and carryforward period available under the tax law. Sources of taxable income include future reversals of existing taxable temporary differences, future earnings and available tax planning strategies.

The nine months ended September 30, 2013 includes a discrete tax benefit of $50.9 million for the partial release of our valuation allowance. The tax benefit was recorded for the three months ended March 31, 2013. Gain recognition, for tax purposes, on the contribution of a 33% interest in SemCrude Pipeline, L.L.C. to Rose Rock, as disclosed in Note 2, had a material impact to the available positive and objectively verifiable evidence for that quarter and, combined with other factors, resulted in the change in our assessment of recoverability of the deferred tax assets. Under ASC 740, "Income Taxes", such evidence was not considered in the valuation allowance at December 31, 2012, due to fundamentals of the transaction which remained subject to market influence until closed. We did not release the valuation allowance attributable to a small portion of our state net operating loss carryovers which have shorter carryover periods. We have not released the valuation allowance on the foreign tax credits due to the foreign tax credit limitation and the relative subjectivity of forecasts of the relational magnitude of U.S. and foreign taxable income in future periods, as well as the shorter carryover period available for the credits.

We have determined that no accruals related to uncertainty in tax positions are required. All income tax years of the Company ending after the emergence from bankruptcy remain open for examination in all jurisdictions. In foreign jurisdictions, all tax years within the relevant statute of limitations for periods prior to the emergence from bankruptcy remain open for examination. Currently, there are no examinations in progress for our federal or state jurisdictions. Canada Revenue Agency has initiated an income tax audit of SemCAMS ULC for the tax year 2009, which remains in progress. We do not anticipate the SemCAMS ULC audit will have a significant impact on the results of operations or financial position. No other foreign jurisdictions are currently under audit.

The effective tax rate was 52% and 109% for the three months ended September 30, 2013 and 2012, respectively, and (231)% and 10% for the nine months ended September 30, 2013 and 2012, respectively. The rate for the three months ended September 30, 2013 is impacted by a $3.3 million discrete deferred tax benefit resulting from enactment of U.K. tax rate reductions for future periods. Significant items that impacted the effective tax rate for each period, as compared to the U.S. federal statutory rate of 35%, include earnings in foreign jurisdictions taxed at lower rates, a noncontrolling interest in Rose Rock for which taxes are not provided, warrant expense which is not deductible for tax purposes, and the impact of the valuation allowance or release recorded against our deferred tax assets. Further, the foreign earnings are taxed in foreign jurisdictions as well as in the U.S., since they are disregarded entities for U.S. federal income tax purposes. Deferred tax liabilities, with the exception of those related to certain long-lived assets, have been considered as a source of future taxable income in establishing the amount of the valuation allowance. These combined factors, and the magnitude of permanent items impacting the tax rate relative to income from continuing operations before income taxes, result in rates that are not comparable between the periods.
Long-Term Debt
Long-Term Debt
LONG-TERM DEBT
Our long-term debt consisted of the following (in thousands):
 
September 30,
2013
 
December 31,
2012
SemGroup 7.50% senior unsecured notes
$
300,000

 
$

SemGroup corporate revolving credit facility
155,000

 
201,500

Rose Rock credit facility
85,000

 
4,500

SemMexico credit facility

 

Capital leases
69

 
86

Total long-term debt
$
540,069

 
$
206,086

less: current portion of long-term debt
26

 
24

Noncurrent portion of long-term debt
$
540,043

 
$
206,062


SemGroup senior unsecured notes
On June 14, 2013, we completed an offering of $300 million of 7.50% senior unsecured notes due 2021 (the “Notes”) to certain initial purchasers for resale to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to non-U.S. persons outside the United States pursuant to Regulation S of the Securities Act. The Notes are guaranteed by certain of our subsidiaries: SemGas, L.P., SemCanada, L.P., SemCanada II, L.P., SemMaterials, L.P., SemStream, L.P., SemGroup Europe Holding, L.L.C., SemOperating G.P., L.L.C., SemMexico, L.L.C., SemDevelopment, L.L.C., Rose Rock Midstream Holdings, LLC, Wattenberg Holding, LLC, Glass Mountain Holding, LLC and Mid-America Midstream Gas Services, L.L.C. (collectively, the "Guarantors").
The net proceeds from the offering were $294.0 million, after deducting the initial purchasers' discount. We used the net proceeds from the offering to (i) fund a portion of our acquisition on August 1, 2013, of all the outstanding equity interests in Mid-America Midstream Gas Services, L.L.C., a subsidiary of Chesapeake Energy Corporation, and (ii) during the second quarter of 2013, repay amounts borrowed under our revolving credit facility.
The Notes are governed by an indenture, as supplemented, between the Company and its subsidiary Guarantors and Wilmington Trust, N.A., as trustee (the “Indenture”). The Indenture includes customary covenants, including limitations on our ability to incur additional indebtedness or issue certain preferred shares; pay dividends and make certain distributions, investments and other restricted payments; create certain liens; sell assets; enter into transactions with affiliates; enter into sale and lease-back transactions; merge, consolidate, sell or otherwise dispose of all or substantially all of our assets; and designate our subsidiaries as unrestricted under the Indenture.
The Indenture includes customary events of default, including events of default relating to non-payment of principal and other amounts owing from time to time, failure to provide required reports, failure to comply with agreements in the indenture, cross payment-defaults to any material indebtedness, bankruptcy and insolvency events, certain unsatisfied judgments, and invalidation or cessation of the subsidiary guarantee of a significant subsidiary. A default would permit holders to declare the Notes and accrued interest due and payable.
The Notes are effectively subordinated in right of payment to any of our, and the Guarantors', existing and future secured indebtedness to the extent of the value of the collateral securing such indebtedness and are structurally subordinated to the obligations of any subsidiary that is not a guarantor of the Notes.
The Company may issue additional Notes under the Indenture from time to time, subject to the terms of the Indenture.
Except as described below, the Notes are not redeemable at the Company's option prior to June 15, 2016. From and after June 15, 2016, the Company may redeem the Notes, in whole or in part, at the redemption prices (expressed as percentages of principal amount) set forth below, plus accrued and unpaid interest, if redeemed during the twelve-month period beginning on June 15 of each of the years indicated below:
Year
 
Percentage
2016
 
105.625%
2017
 
103.750%
2018
 
101.875%
2019 and thereafter
 
100.000%

Prior to June 15, 2016, the Company may, at its option, on one or more occasions, redeem up to 35% of the sum of the original aggregate principal amount of the Notes at a redemption price equal to 107.500% of the aggregate principal amount thereof, plus accrued and unpaid interest, with the net cash proceeds of one or more equity offerings of the Company, subject to certain conditions.
Prior to June 15, 2016, the Company may also redeem all or part of the Notes at a price equal to the principal plus a premium equal to the greater of 1% of the principal or the excess of the present value of the June 15, 2016 redemption price from the table above plus all required interest payments due through June 15, 2016, computed using a discount rate based on a published United States Treasury Rate plus 50 basis points, over the principal value of such Note.
In the event of a change of control, the Company is required to offer to repurchase the Notes at an amount equal to 101% of the principal plus accrued and unpaid interest.
The Notes are also subject to a Registration Rights Agreement which requires the Company to file a registration statement with the SEC and to use commercially reasonable efforts to cause the registration statement to be declared effective by the SEC so that holders of the Notes can exchange the Notes and related guarantees for registered notes (the "Exchange Notes") and guarantees that have substantially identical terms as the Notes and related guarantees. The guarantees of the Exchange Notes will be full and unconditional and will constitute the joint and several obligations of the Guarantors. Failure to meet the terms of the Registration Rights Agreement will require the Company to pay incremental interest of 0.25% per annum, increased by an additional 0.25% per annum for each 90-day period for which registration default continues (up to a maximum of 1.0% per annum).
Interest on the Notes is payable in arrears on June 15th and December 15th to holders of record on June 1st and December 1st each year until maturity. For the three and nine months ended September 30, 2013, we incurred $6.0 million and $7.1 million of interest expense related to the Notes, respectively, including the amortization of debt issuance costs. At September 30, 2013, we had $6.4 million of unamortized debt issuance costs related to the Notes included in other noncurrent assets on our condensed consolidated balance sheet.
At September 30, 2013, we were in compliance with the terms of the Notes.
SemGroup corporate credit agreement
Our revolving credit facility had a capacity of $500 million at September 30, 2013. This capacity may be used either for cash borrowings or letters of credit, although the maximum letter of credit capacity is $250 million. At September 30, 2013, we had $155 million outstanding cash borrowings on this facility and outstanding letters of credit of $4.5 million.
The interest rate in effect at September 30, 2013, on $155 million of alternate base rate ("ABR") borrowings was 5.5%. At September 30, 2013, the rate in effect on letters of credit was 3.25%. In addition, a fronting fee of 0.25% is charged on outstanding letters of credit. A commitment fee of 0.5% is charged on any unused capacity on the revolving credit facility.
At September 30, 2013, $4.8 million in capitalized loan fees, net of accumulated amortization, was recorded in other noncurrent assets, which is being amortized over the life of the facility.
We recorded interest expense related to the SemGroup revolving credit facility of $2.3 million and $1.7 million for the three months ended September 30, 2013 and 2012, respectively, including amortization of debt issuance costs. We recorded interest expense related to the SemGroup revolving credit facility of $5.0 million and $4.9 million for the nine months ended September 30, 2013 and 2012, respectively, including amortization of debt issuance costs.
At September 30, 2013, we were in compliance with the terms of the credit agreement.
On April 22, 2013, the credit agreement was amended to (i) permit the increase of the facility by up to an additional $300 million subject to satisfaction of certain conditions, (ii) remove the restriction limiting unsecured senior or subordinated indebtedness to $200 million, while establishing certain requirements for obtaining unsecured senior or subordinated indebtedness of $200 million or more and (iii) establish less restrictive leverage covenants.
On May 3, 2013, we elected to increase the credit facility capacity by $200 million, for a total capacity of $500 million. The facility can be increased by an additional $100 million. In connection with the increase, we recorded $2.2 million of capitalized loan fees which are being amortized over the remaining life of the facility.
The credit agreement is guaranteed by all of our material domestic subsidiaries (except for SemCrude Pipeline, L.L.C. and Rose Rock Midstream, L.P. and its subsidiaries) and secured by a lien on substantially all of our property and assets, subject to customary exceptions.
Rose Rock credit facility
At September 30, 2013, there was $85.0 million outstanding cash borrowings under the Rose Rock revolving credit facility, of which $55.0 million incurred interest at the ABR plus an applicable margin, and $30 million incurred interest at the Eurodollar rate plus an applicable margin. The interest rate in effect at September 30, 2013 on $55.0 million of ABR borrowings was 4.50%. The interest rate in effect at September 30, 2013 on $30 million of Eurodollar rate borrowings was 2.53%.
Rose Rock had $31.8 million in outstanding letters of credit, and the rate in effect was 2.25%. In addition, a fronting fee of 0.25% is charged on outstanding letters of credit. A commitment fee that ranges from 0.375% to 0.50%, depending on a leverage ratio specified in the credit agreement, is charged on any unused capacity of the revolving credit facility.
On January 11, 2013, the credit facility capacity was increased to $385 million and Rose Rock borrowed $133.5 million in connection with the purchase of a 33% interest in SCPL from SemGroup and to pay transaction related expenses. Approximately $1.6 million of related costs have been capitalized and will be amortized over the remaining life of the facility.
On September 20, 2013, the credit agreement was amended to extend the agreement to September 20, 2018 and permit the increase of the facility by not more than $200 million, subject to certain conditions. The amended agreement allows the Rose Rock to incur unsecured or subordinated debt without limitation, subject to certain conditions, and provides alternative financial performance covenants at Rose Rock's election after the issuance of $200 million or more unsecured or subordinated debt, in aggregate. Additionally, the interest rate and commitment fees related to the revolving facility were lowered.
Rose Rock had $7.6 million of Secured Bilateral Letters of Credit outstanding at September 30, 2013. The interest rate in effect was 1.75% on $0.6 million and 2.0% on $7.0 million. Secured Bilateral Letters of Credit are external to the facility and do not reduce revolver availability.
We recorded $1.9 million and $0.5 million of interest expense related to this facility during the three months ended September 30, 2013 and 2012, respectively, including amortization of debt issuance costs. We recorded $6.1 million and $1.4 million of interest expense related to this facility during the nine months ended September 30, 2013 and 2012, respectively, including amortization of debt issuance costs.
At September 30, 2013, $3.7 million in capitalized loan fees, net of accumulated amortization, was recorded in other noncurrent assets, which is being amortized over the life of the facility.
At September 30, 2013, we were in compliance with the terms of the credit agreement.
SemMexico facilities
During the third quarter, SemMexico renewed a credit agreement that allows SemMexico to borrow up to 56 million Mexican pesos (U.S. $4.3 million at the September 30, 2013 exchange rate) at any time during the term of the facility. The new maturity date of the facility is July 2014. Borrowings are unsecured and bear interest at the bank prime rate in Mexico plus 1.70%. At September 30, 2013, there were no borrowings outstanding on this facility.
On June 13, 2012, SemMexico entered into a credit agreement that allows SemMexico to borrow up to 44 million Mexican pesos (U.S. $3.3 million at the September 30, 2013 exchange rate) at any time during the term of the facility, which matures in June 2015. Borrowings are unsecured and bear interest at the bank prime rate in Mexico plus 2.0%. At September 30, 2013, there were no outstanding borrowings on this facility.
SemMexico also has outstanding letters of credit of 292.8 million Mexican pesos at September 30, 2013 (U.S. $22.3 million at the September 30, 2013 exchange rate). Fees are generally charged on outstanding letters of credit at a rate of 0.5%.
At September 30, 2013, we were in compliance with the terms of these facilities.
Capitalized interest
During the nine months ended September 30, 2013 and 2012, we capitalized interest from our credit facilities of $2.9 million and $0.2 million, respectively.
Fair value
We estimate the fair value of our senior unsecured notes to be $306 million at September 30, 2013, based on unadjusted, transacted market prices, which is categorized as a Level 1 measurement. We estimate that the fair value of our other long-term debt was not materially different than the recorded values at September 30, 2013. It is our belief that neither the market interest rates nor our credit profile have changed significantly enough to have had a material impact on the fair value of our other debt outstanding at September 30, 2013. This estimate is categorized as a Level 3 measurement.
Commitments and Contingencies
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES
Bankruptcy matters
On July 22, 2008 (the “Petition Date”), SemGroup, L.P. and certain subsidiaries filed petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Also on July 22, 2008, SemGroup, L.P.'s Canadian subsidiaries filed for creditor protection in Canada. Later during 2008, certain other U.S. subsidiaries filed petitions for reorganization. While in bankruptcy, SemGroup, L.P. filed a plan of reorganization with the court, which was confirmed on October 28, 2009 (the “Plan of Reorganization”). The Plan of Reorganization determined, among other things, how pre-Petition Date obligations would be settled, the equity structure of the reorganized company upon emergence, and the financing arrangements upon emergence. SemGroup Corporation emerged from bankruptcy protection on November 30, 2009 (the “Emergence Date”).
(a)
Confirmation order appeal
Luke Oil appeal. On October 21, 2009, Luke Oil Company, C&S Oil/Cross Properties, Inc., Wayne Thomas Oil and Gas and William R. Earnhardt Company (collectively, “Luke Oil”) filed an objection to the Plan of Reorganization “to the extent that the Plan of Reorganization may alter, impair, or otherwise adversely affect Luke Oil’s legal rights or other interests.” On October 28, 2009, the bankruptcy court overruled the Luke Oil objection and entered the confirmation order. On November 6, 2009, Luke Oil filed a Notice of Appeal. On December 23, 2009, Luke Oil’s appeal was docketed in the United States District Court for the District of Delaware. We filed a motion to dismiss the appeal as equitably moot. On May 21, 2012, the District Court entered an order granting our motion to dismiss Luke Oil's appeal of the confirmation order. On June 18, 2012, Luke Oil filed its Notice of Appeal, notifying the District Court and the parties to the lawsuit that it was appealing the decision of the District Court to the United States Court of Appeals for the Third Circuit. On August 27, 2013, the United States Court of Appeals for the Third Circuit issued an opinion, and on September 18, 2013 issued a judgment, reversing the District Court’s dismissal of the confirmation order and remanding the case to the District Court for consideration on the merits of Luke Oil’s appeal of the confirmation order. On October 1, 2013, at the request of the parties, the District Court entered an order staying the case and referring it to a magistrate judge for mediation. While we believe that this action is without merit and are vigorously defending this matter on appeal, an adverse ruling on this action could have a material adverse impact on us.
(b)
Investigations
Around the time of our predecessor's bankruptcy filings, several governmental agencies launched investigations regarding the circumstances of the filings. The mandate and scope of these investigations were very broad and the investigations are ongoing.
Bankruptcy examiner. On October 14, 2008, the bankruptcy court appointed an examiner to (i) investigate the circumstances surrounding our predecessor's trading strategy prior to bankruptcy filings; (ii) investigate the circumstances surrounding certain insider transactions and the formation of SemGroup Energy Partners L.P. (a former subsidiary); (iii) investigate the circumstances surrounding the potential improper use of borrowed funds and funds generated from operations and the liquidation of assets to satisfy margin calls related to our predecessor's trading strategy and that of certain entities owned or controlled by former officers and directors of the general partner of SemGroup, L.P.; (iv) determine whether any directors, officers or employees of the general partner of SemGroup, L.P. participated in fraud, dishonesty, incompetence, misconduct, mismanagement, or irregularity in the management of our affairs; and (v) determine whether the SemGroup debtor estates have causes of action against current or former officers, directors, or employees of the general partner of SemGroup, L.P. arising from such participation. The examiner’s report was filed with the bankruptcy court on April 15, 2009.
Certain current and prior employees of the general partner of SemGroup, L.P. are referenced in the examiner’s report and the report’s conclusions may suggest possible civil or criminal liability on their part. To the extent such claims exist, they are property of a litigation trust that was established for the benefit of pre-petition creditors pursuant to the Plan of Reorganization, and are not property of the reorganized SemGroup Corporation. This litigation trust is pursuing claims against certain former officers, at its own expense. We may incur expenses, which are not expected to be material, related to information and document requests of the litigation trust related to such claims. Any indemnification obligations to such officers by SemGroup, L.P. were discharged under the Plan of Reorganization.
CFTC. On June 19, 2008, we received a request for voluntary production from the Commodity Futures Trading Commission (“CFTC”). Subsequent to the bankruptcy filings, the CFTC sent other requests for voluntary production. The CFTC has also served subpoenas upon us requiring us to produce various documents and for the depositions of our representatives. We continue to comply with the CFTC’s requests. We are unaware of any currently pending formal charges against us by the CFTC.
(c)
Claims reconciliation process
A large number of parties have made claims against us for obligations alleged to have been incurred prior to our predecessor's bankruptcy filing. On September 15, 2010, the bankruptcy court entered an order estimating the contingent, unliquidated and disputed claims and authorizing distributions to holders of allowed claims. Pursuant to that order we have begun making distributions to the claimants. We continue to attempt to settle unresolved claims.
Pursuant to the Plan of Reorganization, we committed to settle authorized and allowed bankruptcy claims by paying a specified amount of cash, issuing a specified number of warrants, and issuing a specified number of shares of SemGroup Corporation common stock. We do not believe the resolution of the remaining outstanding claims will exceed the total amount of consideration established under the Plan of Reorganization for all claimants; instead, the resolution of the remaining claims in some cases will impact the relative share of the established pool of common stock and warrants that certain claimants receive.
However, under certain circumstances we could be required to pay additional funds to settle the specified group of claims to be settled with cash. Pursuant to the Plan of Reorganization, a specified amount of restricted cash was set aside at the Emergence Date, which we expect to be sufficient to settle this group of claims. Since the Emergence Date, we have made significant progress in resolving these claims, and we continue to believe that the cash set aside at the Emergence Date will be sufficient to settle these claims. However, we have not yet reached a resolution of all of these claims, and if the total settlement amount of all of these claims exceeds the specified amount, we will be required to pay additional funds to satisfy the total settlement amount for this specified group of claims. If this were to become probable of occurring, we would be required to record a liability and a corresponding expense.
Blueknight claim
Blueknight Energy Partners, L.P. (“Blueknight”), which was formerly a subsidiary of SemGroup, together with other entities related to Blueknight, entered into a Shared Services Agreement on April 7, 2009, with SemCrude, L.P., now known as Rose Rock Midstream Crude, L.P. (“SemCrude”) and SemManagement, L.L.C. (which are currently subsidiaries of SemGroup). The services provided by SemCrude to Blueknight under this agreement included assisting Blueknight with movement of crude oil belonging to Blueknight’s customers and with the operation of Blueknight’s Oklahoma pipeline system and its Cushing, Oklahoma terminal. Under the subsequent amendments to the agreements beginning in May 2010, certain of these services were phased out, and Blueknight began to perform all services necessary for the movement of its crude oil and the operation of its Cushing terminal without SemCrude’s assistance.
In a letter dated August 18, 2011, Blueknight claimed that SemCrude owes Blueknight approximately 141,000 barrels of crude oil. We responded to Blueknight’s letter denying their charges and requesting documentation from Blueknight of its claim. On February 14, 2012, after months of interaction between the parties through which Blueknight was requested to substantiate its claim, Blueknight filed suit against SemCrude and other related companies in the District Court of Oklahoma County, Oklahoma. On May 1, 2012, the case was transferred to Tulsa County, Oklahoma. On July 2, 2012, the Tulsa County District Court appointed a Special Master to review terminal operations accounting records and determine whether 141,000 barrels of crude oil owned by Blueknight is missing after three months of operations in April through June, 2010. On June 11, 2013, the Special Master’s Report was filed with the District Court finding a shortage in Blueknight’s Cushing terminal and Oklahoma pipeline system of 148,000 barrels. However, after a review of all records created during that three month time period, the Special Master was unable to determine how the shortage might have occurred and she was unable to determine the ownership of the potential shortage.
We are currently seeking discovery in the District Court of documentation and testimony on the potential cause and the impact, if any, of the shortage found by the Special Master. Blueknight is resisting discovery and has asked for summary judgment against SemCrude and the other defendants for the entire terminal and pipeline system shortage. We will continue to defend our position; however, we cannot predict the outcome.
Environmental
We may from time to time experience leaks of petroleum products from our facilities and, as a result of which, we may incur remediation obligations or property damage claims. In addition, we are subject to numerous environmental regulations. Failure to comply with these regulations could result in the assessment of fines or penalties by regulatory authorities.
The Kansas Department of Health and Environment (“the KDHE”) initiated discussions during our bankruptcy proceeding regarding six of our sites in Kansas (five owned by Crude and one owned by SemGas) that KDHE believes, based on their historical use, may have soil or groundwater contamination in excess of state standards. KDHE sought our agreement to undertake assessments of these sites to determine whether they are contaminated. We reached an agreement with KDHE on this matter and entered into a Consent Agreement and Final Order with KDHE to conduct environmental assessments on the sites and to pay KDHE’s costs associated with their oversight of this matter. We have conducted Phase II investigations at all sites and results indicate that four of the sites have limited amounts of soil contamination that will require remediation and ground water contamination that may require further delineation and/or ongoing monitoring. Work plans have been submitted to, and approved by, the KDHE. We do not anticipate any penalties or fines for these historical sites.
A water pipeline break occurred at a SemCAMS facility during August 2010. This resulted in a spill of material that was predominantly salt water containing a small amount of hydrocarbons. The incident was investigated by Environment Canada and Alberta Environment. On February 14, 2012, charges were filed against SemCAMS by the Federal Government of Canada (Department of Fisheries) and the Province of Alberta (Alberta Environment) in connection with this incident. SemCAMS and the Federal and Provincial Crowns are discussing a resolution of the charges on specific terms. We expect that the matter will be finally resolved by the end of the year. We accrued a liability for estimated fines and environmental contributions of $0.4 million in December 2010, which we still carry on our books at September 30, 2013.
Other matters
We are party to various other claims, legal actions, and complaints arising in the ordinary course of business. In the opinion of our management, the ultimate resolution of these claims, legal actions and complaints, after consideration of amounts accrued, insurance coverage and other arrangements, will not have a material adverse effect on our consolidated financial position, results of operations or cash flows. However, the outcome of such matters is inherently uncertain, and estimates of our consolidated liabilities may change materially as circumstances develop.
Asset retirement obligations
We will be required to incur significant removal and restoration costs when we retire our natural gas gathering and processing facilities in Canada. We have recorded an asset retirement obligation liability of $42.1 million at September 30, 2013, which is included within other noncurrent liabilities on our condensed consolidated balance sheets. This amount was calculated using the $104.6 million cost we estimate we would incur to retire these facilities, discounted based on our risk-adjusted cost of borrowing and the estimated timing of remediation.
The calculation of the liability for an asset retirement obligation requires the use of significant estimates, including those related to the length of time before the assets will be retired, cost inflation over the assumed life of the assets, actual remediation activities to be required, and the rate at which such obligations should be discounted. Future changes in these estimates could result in material changes in the value of the recorded liability. In addition, future changes in laws or regulations could require us to record additional asset retirement obligations.
Our other segments may also be subject to removal and restoration costs upon retirement of their facilities. However, we are unable to predict when, or if, our pipelines, storage tanks and other facilities would become completely obsolete and require decommissioning. Accordingly, we have not recorded a liability or corresponding asset, as both the amount and timing of such potential future costs are indeterminable.
Purchase and sale commitments
We routinely enter into agreements to purchase and sell petroleum products at specified future dates. We account for derivatives at fair value with the exception of commitments which have been designated as normal purchases and sales for which we do not record assets or liabilities related to these agreements until the product is purchased or sold. At September 30, 2013, such commitments included the following (in thousands):
 
Volume
(Barrels)
 
Value
Fixed price purchases
202

 
$
20,324

Fixed price sales
330

 
$
34,749

Floating price purchases
18,016

 
$
1,781,247

Floating price sales
18,600

 
$
1,814,662


Certain of the commitments shown in the table above relate to agreements to purchase product from a counterparty and to sell a similar amount of product (in a different location) to the same counterparty. Many of the commitments shown in the table above are cancellable by either party, as long as notice is given within the time frame specified in the agreement (generally 30 to 120 days).
Our SemGas segment has a take or pay contractual obligation related to the fractionation of natural gas liquids. This obligation began in July 2011 and continues through June 2023, subsequent to the extension of the agreement in the second quarter of 2013. At September 30, 2013, approximately $25.8 thousand was due under the contract and the amount of future obligation is approximately $88.2 million. SemGas also enters into contracts under which we are responsible for marketing the majority of the gas and natural gas liquids produced by the counterparties to the agreements. The majority of SemGas’ revenues were generated from such contracts.
See Note 3 for commitments related to Glass Mountain Pipeline LLC and the White Cliffs expansion project.
Equity
EQUITY
EQUITY
Unaudited condensed consolidated statement of changes in owners’ equity
The following table shows the changes in our consolidated owners’ equity accounts from December 31, 2012 to September 30, 2013 (in thousands):
 
Common
Stock
 
Additional
Paid-in
Capital
 
Treasury
Stock
 
Accumulated
Deficit
 
Accumulated
Other
Comprehensive
Loss
 
Noncontrolling
Interests
 
Total
Owners’
Equity
Balance at December 31, 2012
$
420

 
$
1,039,189

 
$
(242
)
 
$
(145,674
)
 
$
(1,299
)
 
$
129,134

 
$
1,021,528

Net income

 

 

 
44,784

 

 
14,429

 
59,213

Other comprehensive income (loss), net of income taxes

 

 

 

 
(4,307
)
 

 
(4,307
)
Distributions to noncontrolling interests

 

 

 

 

 
(11,458
)
 
(11,458
)
Rose Rock Midstream, L.P. equity issuance

 

 

 

 

 
210,226

 
210,226

Transfer of SemCrude Pipeline interest to Rose Rock*

 
56,800

 

 

 

 
(90,516
)
 
(33,716
)
Warrants settlements
4

 
23,754

 

 

 

 

 
23,758

Dividends paid

 
(16,387
)


 

 

 

 
(16,387
)
Unvested dividend equivalent rights

 
(47
)
 

 

 

 
(33
)
 
(80
)
Non-cash equity compensation

 
4,733

 

 

 

 
578

 
5,311

Issuance of common stock under compensation plans
1

 
(1
)
 

 

 

 

 

Repurchase of common stock

 

 
(371
)
 

 

 

 
(371
)
Balance at September 30, 2013
$
425

 
$
1,108,041

 
$
(613
)
 
$
(100,890
)
 
$
(5,606
)
 
$
252,360

 
$
1,253,717

* On January 13, 2013, we contributed a 33% interest in SemCrude Pipeline, L.L.C. to our consolidated subsidiary, Rose Rock. As this transaction was between entities under common control, the interest in SemCrude Pipeline, L.L.C. was recorded by Rose Rock based on SemGroup's book value. This amount represents the purchase price in excess of book value which was attributed to the noncontrolling interest owners of Rose Rock. The entry to additional paid-in capital has been recorded net of tax.
Accumulated other comprehensive loss
The following table presents the changes in the components of accumulated other comprehensive loss from December 31, 2012 to September 30, 2013 (in thousands):
 
Currency
Translation
 
Employee
Benefit
Plans
 
Total
Balance at December 31, 2012
$
1,855

 
$
(3,154
)
 
$
(1,299
)
Currency translation adjustment
(4,444
)
 

 
(4,444
)
Changes related to benefit plans, net of income tax expense of $46

 
137

 
137

Balance at September 30, 2013
$
(2,589
)
 
$
(3,017
)
 
$
(5,606
)

There were no significant items reclassified out of accumulated other comprehensive loss to net income for the three months and nine months ended September 30, 2013.
Common stock
Upon emergence from bankruptcy, we issued 40,882,496 shares of common stock. The Plan of Reorganization specified that we were to issue an additional 517,500 shares of common stock in settlement of pre-petition claims. As of September 30, 2013, we have issued 226,016 shares of this stock and will issue the remainder as the process of resolving the claims progresses. The owners’ equity balances on the condensed consolidated balance sheets include the shares that are required to be issued in settlement of pre-petition claims. The shares of common stock reflected on the condensed consolidated balance sheet at September 30, 2013 are summarized below:
Shares issued on Emergence Date
40,882,496

Shares subsequently issued in settlement of pre-petition claims
226,016

Remaining shares required to be issued in settlement of pre-petition claims
291,484

Issuance of shares under employee and director compensation programs(*)
689,320

Shares issued upon exercise of warrants
441,325

Total shares
42,530,641

Par value per share
$
0.01

Common stock on September 30, 2013 balance sheet (in thousands)
$
425

(*) These shares include 105,738 shares which vested during the nine months ended September 30, 2013. Of these vested shares, recipients sold back to the Company 8,591 shares to satisfy tax withholding obligations which are being recognized at cost as treasury stock on the condensed consolidated balance sheet.
In addition to the shares in the table above, there are shares of unvested restricted stock outstanding at September 30, 2013. The par value of these shares has not yet been reflected in common stock on the condensed consolidated balance sheet, as these shares have not yet vested. There are also shares of restricted stock that were returned to treasury upon forfeiture. The par value of these shares is not reflected in the condensed consolidated balance sheet, as no accounting recognition is given to forfeited shares.
The common stock includes Class A and Class B stock. Class A stock is eligible to be listed on an exchange, whereas Class B stock is not. Any share of Class B stock may be converted to Class A at the election of the holder. Both classes of stock have full voting rights. Both classes of stock have a par value of $0.01 per share. The total number of shares authorized for issuance is 90,000,000 shares of Class A stock and 10,000,000 shares of Class B stock.
Equity-based compensation
We have reserved common stock for issuance pursuant to director and employee compensation programs. At September 30, 2013, there were approximately 534,000 unvested shares that have been granted under these programs. The par value of these shares is not reflected in common stock on the condensed consolidated balance sheet, as these shares have not yet vested. Shares of restricted stock awards that were forfeited were returned to treasury. The par value of these shares is not reflected in the condensed consolidated balance sheet, as no accounting recognition is given to forfeited shares. For certain of the awards, the number of shares that will vest is contingent upon our achievement of certain specified targets. If we meet the specified maximum targets, approximately 141,000 additional shares could vest. The holders of certain restricted stock awards granted prior to 2013 are entitled to equivalent dividends (“UDs”) to be received upon vesting of the restricted stock awards. The dividends will be settled in common shares based on the market price of our Class A shares as of the close of business on the vesting date. The UDs are subject to the same forfeiture and acceleration conditions as the associated restricted stock awards. At September 30, 2013, the value of the UDs related to unvested restricted stock awards was approximately $78 thousand. This is equivalent to 1,366 Class A shares based on the quarter end close of business market price of our Class A shares of $57.02 per share. Dividends related to the 2013 restricted stock awards will be settled in cash upon vesting.
During the nine months ended September 30, 2013, we have issued 201,451 restricted stock awards with a weighted average grant date fair value of $52.78 per award.
Warrants
Upon emergence from bankruptcy, we issued 1,634,210 warrants. The Plan of Reorganization specified that we were to issue an additional 544,737 warrants in settlement of the pre-petition claims. As of September 30, 2013, we have issued 237,897 of the warrants and will issue the remainder as the process of resolving the claims progresses. The warrants are traded on the New York Stock Exchange under the ticker symbol SEMGWS. We classify the warrant fair value as a Level 1 measurement. The warrants reflected on the condensed consolidated balance sheet at September 30, 2013 are summarized below:
Warrants issued on Emergence Date
1,634,210

Warrants subsequently issued in settlement of pre-petition claims
237,897

Remaining warrants to be issued in settlement of pre-petition claims
306,840

Warrants exercised (*)
(818,124
)
Total warrants at September 30, 2013
1,360,823

Fair value per warrant at September 30, 2013
$
34.06

Warrant value included within other noncurrent liabilities on September 30, 2013 consolidated balance sheet
$
46,349,631

 
(*) During the nine months ended September 30, 2013, certain warrant holders exercised a total of 772,817 warrants resulting in the issuance of 425,618 Class A shares.
Each warrant entitles the holder to purchase one share of common stock for $25 at any time before the November 30, 2014 expiration date. Upon exercise, a holder may elect a cashless exercise, whereby the number of shares to be issued to the holder is reduced, in lieu of a cash payment. In the event of a change in control of the Company, the holders of the warrants would have the right to sell the warrants to us, and we would have the right to purchase the warrants from the holders. In either case, the price to be paid for the warrants would be calculated using a standard pricing model with inputs specified in the warrant agreement.
Employee Stock Purchase Plan
As part of the Company's 2013 Annual Meeting of Stockholders held on May 22, 2013, Company stockholders approved the 2013 Employee Stock Purchase Plan (“ESPP”). The ESPP will be effective October 1, 2013 and will allow Company employees to purchase the Company's Class A stock through payroll deductions based on six month offering periods. Share purchases will be limited to 12,500 shares per offering period per employee-participant. Shares will be able to be purchased by employee-participants at 85% of the Fair Market Value (as defined by the ESPP). Upon the purchase of shares, employee-participants will receive all stockholder rights including dividend and voting rights, and will be permitted to sell their shares at any time. The Company has made 1.0 million shares available under the ESPP. The ESPP terminates on September 30, 2023 or earlier at the discretion of the Board of Directors. No shares are expected to be issued under the ESPP in fiscal year 2013 as the end of the first offering period does not occur until March 31, 2014. The Company expects to begin recording stock based compensation expense related to the ESPP in the fourth quarter for 2013, the start of the first offering period.
Dividends
On May 30, 2013, we paid a dividend of $0.19 per share to shareholders of record on May 20, 2013. On August 30, 2013, we paid a dividend of $0.20 per share to shareholders of record on August 19, 2013.
On November 6, 2013, we declared a dividend of $0.21 per share payable on December 3, 2013 to shareholders of record on November 22, 2013.
Earnings Per Share
EARNINGS PER SHARE
EARNINGS PER SHARE

Earnings per share is calculated based on income from continuing and discontinued operations less any income attributable to the noncontrolling interest.  Income attributable to noncontrolling interests represents third party limited partner unitholders' interests in the earnings of our consolidated subsidiary, Rose Rock.  Rose Rock allocates net income to its limited partners based on the distributions pertaining to the current period's available cash as defined by Rose Rock's partnership agreement. After adjusting for the appropriate period's distributions, the remaining undistributed earnings or excess distributions over earnings, if any, are allocated to Rose Rock's general partner, limited partners and participating securities in accordance with the contractual terms of Rose Rock's partnership agreement and as further prescribed under the two-class method. Incentive distribution rights do not participate in undistributed earnings.
Basic earnings (loss) per share (“Basic EPS”) is calculated based on the weighted average shares outstanding during the period.  Diluted earnings (loss) per share (“Diluted EPS”) includes the dilutive effect of warrants and unvested equity compensation awards.
The following summarizes the calculation of basic earnings (loss) per share for the three months and nine months ended September 30, 2013 and 2012 (in thousands, except per share amounts):

 
Three Months Ended September 30, 2013
 
Three Months Ended September 30, 2012
 
Continuing
Operations
 
Discontinued
Operations
 
Net
 
Continuing
Operations
 
Discontinued
Operations
 
Net
Income
$
3,137

 
$
(2
)
 
$
3,135

 
$
(167
)
 
$
(265
)
 
$
(432
)
less: Income attributable to noncontrolling interests
5,054

 

 
5,054

 
2,336

 

 
2,336

Numerator
$
(1,917
)
 
$
(2
)
 
$
(1,919
)
 
$
(2,503
)
 
$
(265
)
 
$
(2,768
)
Common stock issued and to be issued pursuant to Plan of Reorganization
41,400

 
41,400

 
41,400

 
41,400

 
41,400

 
41,400

Weighted average common stock outstanding issued under compensation plans and warrant exercises
1,128

 
1,128

 
1,128

 
549

 
549

 
549

Denominator
42,528

 
42,528

 
42,528

 
41,949

 
41,949

 
41,949

Basic earnings (loss) per share
$
(0.05
)
 
$

 
$
(0.05
)
 
$
(0.06
)
 
$
(0.01
)
 
$
(0.07
)

 
Nine Months Ended September 30, 2013
 
Nine Months Ended September 30, 2012
 
Continuing
Operations
 
Discontinued
Operations
 
Net
 
Continuing
Operations
 
Discontinued
Operations
 
Net
Income
$
59,148

 
$
65

 
$
59,213

 
$
9,377

 
$
(456
)
 
$
8,921

less: Income attributable to noncontrolling interests
14,429

 

 
14,429

 
7,915

 

 
7,915

Numerator
$
44,719

 
$
65

 
$
44,784

 
$
1,462

 
$
(456
)
 
$
1,006

Common stock issued and to be issued pursuant to Plan of Reorganization
41,400

 
41,400

 
41,400

 
41,400

 
41,400

 
41,400

Weighted average common stock outstanding issued under compensation plans and warrant exercises
874

 
874

 
874

 
530

 
530

 
530

Denominator
42,274

 
42,274

 
42,274

 
41,930

 
41,930

 
41,930

Basic earnings (loss) per share
$
1.06

 
$

 
$
1.06

 
$
0.03

 
$
(0.01
)
 
$
0.02



The following summarizes the calculation of diluted earnings (loss) per share for the three months and nine months ended September 30, 2013 and 2012 (in thousands, except per share amounts):

 
Three Months Ended September 30, 2013
 
Three Months Ended September 30, 2012
 
Continuing
Operations
 
Discontinued
Operations
 
Net
 
Continuing
Operations
 
Discontinued
Operations
 
Net
Income
$
3,137

 
$
(2
)
 
$
3,135

 
$
(167
)
 
$
(265
)
 
$
(432
)
less: Income attributable to noncontrolling interests
5,054

 

 
5,054

 
2,336

 

 
2,336

Numerator
$
(1,917
)
 
$
(2
)
 
$
(1,919
)
 
$
(2,503
)
 
$
(265
)
 
$
(2,768
)
Common stock issued and to be issued pursuant to Plan of Reorganization
41,400

 
41,400

 
41,400

 
41,400

 
41,400

 
41,400

Weighted average common stock outstanding issued under compensation plans and warrant exercises
1,128

 
1,128

 
1,128

 
549

 
549

 
549

Effect of dilutive securities

 

 

 

 

 

Denominator
42,528

 
42,528

 
42,528

 
41,949

 
41,949

 
41,949

Diluted earnings (loss) per share
$
(0.05
)
 
$

 
$
(0.05
)
 
$
(0.06
)
 
$
(0.01
)
 
$
(0.07
)

 
Nine Months Ended September 30, 2013
 
Nine Months Ended September 30, 2012
 
Continuing
Operations
 
Discontinued
Operations
 
Net
 
Continuing
Operations
 
Discontinued
Operations
 
Net
Income
$
59,148

 
$
65

 
$
59,213

 
$
9,377

 
$
(456
)
 
$
8,921

less: Income attributable to noncontrolling interests
14,429

 

 
14,429

 
7,915

 

 
7,915

Numerator
$
44,719

 
$
65

 
$
44,784

 
$
1,462

 
$
(456
)
 
$
1,006

Common stock issued and to be issued pursuant to Plan of Reorganization
41,400

 
41,400

 
41,400

 
41,400

 
41,400

 
41,400

Weighted average common stock outstanding issued under compensation plans and warrant exercises
874

 
874

 
874

 
530

 
530

 
530

Effect of dilutive securities
270

 
270

 
270

 
252

 
252

 
252

Denominator
42,544

 
42,544

 
42,544

 
42,182

 
42,182

 
42,182

Diluted earnings (loss) per share
$
1.05

 
$

 
$
1.05

 
$
0.03

 
$
(0.01
)
 
$
0.02


During the three months and nine months ended September 30, 2013, we recorded expenses of $4.8 million and $37.0 million, respectively, related to the change in fair value of the warrants. During the three months and nine months ended September 30, 2012, we recorded expenses of $9.5 million and $17.1 million related to the change in fair value of the warrants. Because the mark to market valuation of the warrants resulted in losses, the warrants would have been antidilutive and, therefore, were not included in the computation of diluted earnings per share.
As we experienced losses from continuing operations for the three months ended September 30, 2013 and 2012, the equity based compensation (described in Note 10) did not cause any dilution.
Supplemental Cash Flow Information
SUPPLEMENTAL CASH FLOW INFORMATION
SUPPLEMENTAL CASH FLOW INFORMATION
The following table summarizes the changes in the components of operating assets and liabilities shown on our condensed consolidated statements of cash flows (in thousands):

 
Nine Months Ended September 30,
 
2013
 
2012
Decrease (increase) in restricted cash
$
451

 
$
4,691

Decrease (increase) in accounts receivable
(30,977
)
 
(116,987
)
Decrease (increase) in receivable from affiliates
(6,861
)
 
622

Decrease (increase) in inventories
(13,983
)
 
(1,804
)
Decrease (increase) in derivatives and margin deposits
1,972

 
457

Decrease (increase) in other current assets
2,269

 
8,393

Decrease (increase) in other assets
258

 
2,457

Increase (decrease) in accounts payable and accrued liabilities
50,614

 
97,638

Increase (decrease) in payable to affiliates
2,102

 
(5,160
)
Increase (decrease) in payables to pre-petition creditors
(416
)
 
(4,541
)
Increase (decrease) in other noncurrent liabilities
(1,349
)
 
2,942

 
$
4,080

 
$
(11,292
)
  

Other supplemental disclosures
We recorded a $90.5 million reduction to noncontrolling interests in consolidated subsidiaries and an offsetting increase to additional paid-in capital of $56.8 million (net of tax impact of $33.7 million). This non-cash entry represents the portion of the proceeds in excess of historical cost which were attributed to Rose Rock's third-party unitholders related to Rose Rock's purchase of a 33% interest in SCPL (Note 2).
During the nine months ended September 30, 2013, we issued 425,618 Class A units related to the exercise of 772,817 warrants resulting in the non-cash reclassification of $23.5 million from other noncurrent liabilities to common stock and additional paid-in capital. Cash proceeds of $0.2 million were received in connection with the warrant exercises.
We paid cash interest of $7.3 million and $4.4 million for the nine months ended September 30, 2013 and 2012, respectively.
We paid cash for income taxes (net of refunds received) of $6.6 million and $5.5 million for the nine months ended September 30, 2013 and 2012, respectively.
We incurred liabilities for construction work in process that had not been paid of $16.4 million and $7.0 million as of September 30, 2013 and 2012, respectively. Such amounts are not included in capital expenditures on the consolidated statements of cash flows.
At September 30, 2013, we had a non-cash accrual of goodwill of $9.0 million from unpaid invoices which represent purchase price adjustments related to the acquisition of Mid-America Midstream Gas Services, L.L.C. This amount is not included in acquisition of Mid-America Midstream Gas Services, L.L.C. on the consolidated statement of cash flows.
Related Party Transactions
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS
NGL Energy
As described in Note 3, we own interests in NGL Energy, which we account for under the equity method.
During the three and nine months ended September 30, 2013 and 2012, we generated the following transactions with NGL Energy (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Revenues
$
31,043

 
$
14,395

 
$
66,367

 
$
41,945

Purchases
$
8,018

 
$
6,009

 
$
8,018

 
$
36,573

Reimbursements from NGL Energy for transition services
$
60

 
$
28

 
$
156

 
$
526


High Sierra Crude Oil and Marketing, LLC
We generated revenues from High Sierra Crude Oil and Marketing, LLC ("High Sierra"), which is a subsidiary of NGL Energy, of $15.7 million and $12.4 million for the three months ended September 30, 2013 and 2012, respectively. We generated revenues from High Sierra of $68.6 million and $23.4 million for the nine months ended September 30, 2013 and 2012, respectively. Purchases from High Sierra were $6.5 million and $16.3 million for the three months ended September 30, 2013 and 2012, respectively. Purchases from High Sierra were $34.7 million and $32.2 million for the nine months ended September 30, 2013 and 2012, respectively. Transactions with High Sierra primarily relate to transportation and marketing of crude oil and condensate. In accordance with ASC 845-10-15, these transactions were reported as revenue on a net basis in our condensed consolidated statements of operations and comprehensive income as the purchases of inventory and subsequent sales of the inventory were with the same counterparty.
White Cliffs
As described in Note 3, we account for our ownership interest in White Cliffs under the equity method. During the three months ended September 30, 2013 and 2012, we generated storage revenue from White Cliffs of approximately $0.8 million and $0.6 million, respectively. We generated storage revenue from White Cliffs of approximately $2.1 million and $1.8 million during the nine months ended September 30, 2013 and 2012, respectively.
Glass Mountain
As described in Note 3, in May 2012, we formed a joint venture, Glass Mountain, to construct, maintain and operate a 210-mile crude oil pipeline system originating in Alva and Arnett, Oklahoma and terminating at Cushing, OK. In connection with the pipeline project, Glass Mountain entered into a Pipeline Construction Management Agreement with Glass Mountain Holding, LLC ("GMH"), a wholly-owned subsidiary of SemGroup. The Pipeline Construction Management Agreement appoints GMH as construction manager of the pipeline project for which GMH will receive $0.9 million prorated over the period of construction. For the three months and the nine months ended September 30, 2013, Glass Mountain paid $0.1 million and $0.4 million to GMH pursuant to this agreement, the remaining balance of $0.1 million will be received by GMH over the period of construction.
Legal services
The law firm of Conner & Winters, LLP, of which Mark D. Berman is a partner, performs legal services for us. Mr. Berman is the spouse of Candice L. Cheeseman, General Counsel and Secretary. Mr. Berman does not perform any legal services for us. SemGroup paid $0.6 million and $0.5 million in legal fees and related expenses to this law firm during the three months ended September 30, 2013 and 2012, respectively (of which $68.0 thousand and $9.9 thousand was paid by White Cliffs during the three months ended September 30, 2013 and 2012, respectively). SemGroup paid $1.6 million and $1.2 million in legal fees and related expenses to this law firm during the nine months ended September 30, 2013 and 2012, respectively (of which $79.6 thousand and $56.1 thousand was paid by White Cliffs during the nine months ended September 30, 2013 and 2012, respectively).
Acquisition Acquisition (Notes)
Mergers, Acquisitions and Dispositions Disclosures [Text Block]
14.
ACQUISITIONS
Mid-America Midstream Gas Services, L.L.C.
On August 1, 2013, we acquired the equity interest of Mid-America Midstream Gas Services, L.L.C. ("MMGS"), a wholly owned subsidiary of Chesapeake Energy Corporation (NYSE: CHK)("Chesapeake"), which is the owner of gas gathering and processing assets in the Mississippi Lime play for approximately $316.1 million in cash. We incurred approximately $3.6 million in transaction related general and administrative expenses. The transaction was funded through the combination of a portion of the net proceeds from the sale of the Notes and a borrowing under the revolving credit facility under SemGroup's corporate credit agreement. Highlights of the acquisition include the following:
200 miles of gathering pipeline;
Rose Valley I plant - A 200 mmcf/d (million cubic feet per day) cryogenic processing plant, expected to be in operation in the first quarter of 2014;
Rose Valley II plant - A 200 mmcf/d cryogenic processing plant, expected to be in operation in the first quarter of 2016;
Approximately 540,000 net acre dedication in the core of the Mississippi Lime play, supported by a recently announced joint venture between Chesapeake and Sinopec International Petroleum Exploration and Production Corporation ("Sinopec"); and
A 20-year, 100% fee based, gas gathering and processing agreement with certain affiliates of Chesapeake and Sinopec.
Rose Valley plants I and II will require approximately $125 million of additional capital expenditures for completion as well as additional capital related to future well connections.
We have included MMGS in our condensed consolidated financial statements as of August 1, 2013 in our SemGas segment. During the three months and nine months ended September 30, 2013, our condensed consolidated statements of operations and comprehensive income did not include material amounts of revenue or operating income related to MMGS. The proforma impact to comparative prior year periods, had the acquisition occurred at the beginning of the comparative prior year period, is not significant as the business is in the development stage.
We have received a preliminary independent appraisal of the fair value of the assets acquired in the MMGS acquisition. The estimates of fair value reflected as of September 30, 2013 are subject to change and such changes could be material. We currently expect to complete this process prior to filing our Form 10-K for the year ending December 31, 2013. We have preliminarily estimated the fair value of the assets acquired as follows (in thousands):
Property, plant and equipment
$
123,316

Customer contract intangible
169,244

Goodwill
23,587

Total assets acquired
$
316,147


Goodwill represents the excess of the estimated consideration paid for the acquired business over the fair value of the individual assets acquired. Goodwill primarily represents the value of synergies between the acquired entity and the Company and the opportunity to use the acquired business as a platform for growth. We estimate that all of the goodwill will be deductible for federal income tax purposes and will be amortized on a straight-line basis over 15 years.
Barcas Field Services, LLC
On August 1, 2013, our consolidated subsidiary, Rose Rock, executed a definitive agreement to acquire the assets of Barcas Field Services, LLC ("Barcas"), which owns and operates a crude oil trucking fleet for $50.0 million in cash. The transaction closed on September 1, 2013. Highlights of the acquisition include the following:
114 trucks, 120 trailers and miscellaneous equipment; and
a long-term take-or-pay customer transportation agreement.
We have included Barcas in our condensed consolidated financial statements as of September 1, 2013 in our Crude segment. During the three months and nine months ended September 30, 2013, our condensed consolidated statements of operations and comprehensive income did not include material amounts of revenue or operating income related to Barcas. The proforma impact to comparative prior year periods, had the acquisition occurred at the beginning of the comparative prior year period, is not significant.
We have received a preliminary independent appraisal of the fair value of the assets acquired in the Barcas acquisition. The estimates of fair value reflected as of September 30, 2013 are subject to change and such changes could be material. We currently expect to complete this process prior to filing our Form 10-K for the year ending December 31, 2013. We have preliminarily estimated the fair value of the assets acquired as follows (in thousands):
Property, plant and equipment
$
16,690

Customer contract intangible
6,018

Goodwill
27,261

Total assets acquired
$
49,969


Goodwill represents the excess of the estimated consideration paid for the acquired business over the fair value of the individual assets acquired. Goodwill primarily represents the value of synergies between the acquired entity and the Company, the opportunity to use the acquired business as a platform for growth, and the acquired assembled workforce. We estimate that all of the goodwill will be deductible for federal income tax purposes and will be amortized on a straight-line basis over 15 years.
NGL Energy
On August 6, 2013, we completed the acquisition of approximately 5.36% of the general partner of NGL Energy, which increases our ownership of NGL Energy's general partner to 11.78%.
Goodwill
The above acquisitions accounted for the majority of the change to our goodwill during the nine months ended September 30, 2013, as follows (in thousands):
Balance at December 31, 2012
$
9,884

Acquisitions
50,848

Currency translation adjustments
(56
)
Balance at September 30, 2013
$
60,676

Condensed Consolidating Guarantor Financial Statements (Notes)
Condensed Financial Information of Parent Company Only Disclosure [Text Block]
15.
CONDENSED CONSOLIDATING GUARANTOR FINANCIAL STATEMENTS

Pursuant to the Registration Rights Agreement related to our offering of $300 million of 7.50% senior unsecured notes, as discussed in Note 8, we intend to file a registration statement with the SEC so that holders of the Notes can exchange the Notes and the related guarantees for the Exchange Notes and related guarantees.
Each of the Guarantors is 100% owned by SemGroup Corporation (the "Parent"). Such guarantees of the Notes are full and unconditional and constitute the joint and several obligations of the Guarantors. The guarantees of the Exchange Notes will be full and unconditional and will constitute the joint and several obligations of the Guarantors. There are no significant restrictions upon the ability of the Parent or any of the Guarantors to obtain funds from its respective subsidiaries by dividend or loan. None of the assets of the Guarantors represent restricted net assets pursuant to Rule 4-08(e)(3) of Regulation S-X under the Securities Act.
Unaudited condensed consolidating financial statements for the Parent, the Guarantors and non-guarantors as of September 30, 2013 and December 31, 2012 and for each of the three months and nine months ended September 30, 2013 and 2012 are presented on an equity method basis in the tables below (in thousands).
Intercompany receivable and payable balances, including notes receivable and payable, are capital transactions primarily to facilitate the capital needs of our subsidiaries. As such, subsidiary intercompany balances have been reported as a reduction to equity on the condensed consolidating Guarantor balance sheets. The Parent's net intercompany balance, including note receivable, and investments in subsidiaries have been reported in equity method investments on the condensed consolidating Guarantor balance sheets. Intercompany transactions, such as daily cash management activities, have been reported as financing activities within the condensed consolidating Guarantor statements of cash flows. The Parent's investing activities with subsidiaries, such as the drop down of a 33% interest in SCPL to Rose Rock in the first quarter of 2013 have been reflected as cash flows from investing activities. Quarterly cash distributions from Rose Rock representing a return on capital have been included in the Parent's cash flows from operations. These balances are eliminated through consolidating adjustments below.
Condensed Consolidating Guarantor Balance Sheets
 
 
September 30, 2013
 
 
Parent
 
Guarantors
 
Non-guarantors
 
Consolidating Adjustments
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
9,711

 
$

 
$
58,135

 
$
(3,128
)
 
$
64,718

Restricted cash
 
32,880

 

 
1,302

 

 
34,182

Accounts receivable
 
640

 
11,256

 
356,350

 

 
368,246

Receivable from affiliates
 
752

 
15,189

 
244

 
(3,146
)
 
13,039

Inventories
 

 
1,164

 
45,445

 

 
46,609

Other current assets
 
2,417

 
330

 
12,420

 

 
15,167

Total current assets
 
46,400

 
27,939


473,896


(6,274
)

541,961

Property, plant and equipment
 
4,521

 
318,805

 
733,790

 

 
1,057,116

Equity method investments
 
1,475,019

 
524,300

 
228,076

 
(1,709,246
)
 
518,149

Goodwill
 

 
23,587

 
37,089

 

 
60,676

Other intangible assets
 
32

 
167,834

 
12,031

 

 
179,897

Other noncurrent assets, net
 
19,745

 
1,172

 
11,686

 

 
32,603

Total assets
 
$
1,545,717

 
$
1,063,637


$
1,496,568


$
(1,715,520
)

$
2,390,402

LIABILITIES AND OWNERS’ EQUITY
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
104

 
$
44,888

 
$
258,680

 
$

 
$
303,672

Payable to affiliates
 
14

 
121

 
1,967

 

 
2,102

Accrued liabilities
 
14,715

 
8,026

 
58,773

 
(5
)
 
81,509

Payables to pre-petition creditors
 
32,317

 

 
55

 

 
32,372

Deferred revenue
 

 

 
18,835

 

 
18,835

Other current liabilities
 
97

 
714

 
8,309

 

 
9,120

Current portion of long-term debt
 

 

 
26

 

 
26

Total current liabilities
 
47,247

 
53,749

 
346,645

 
(5
)
 
447,636

Long-term debt
 
455,000

 

 
85,043

 

 
540,043

Deferred income taxes
 
976

 

 
52,612

 

 
53,588

Other noncurrent liabilities
 
46,358

 

 
49,060

 

 
95,418

Commitments and contingencies
 


 


 


 


 


Owners’ equity excluding noncontrolling interests in consolidated subsidiaries
 
996,136

 
1,009,888

 
710,848

 
(1,715,515
)
 
1,001,357

Noncontrolling interests in consolidated subsidiaries
 

 

 
252,360

 

 
252,360

Total owners’ equity
 
996,136

 
1,009,888


963,208


(1,715,515
)

1,253,717

Total liabilities and owners’ equity
 
$
1,545,717


$
1,063,637

 
$
1,496,568

 
$
(1,715,520
)
 
$
2,390,402


 
 
December 31, 2012
 
 
Parent
 
Guarantors
 
Non-guarantors
 
Consolidating Adjustments
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
19,123

 
$

 
$
63,844

 
$
(2,938
)
 
$
80,029

Restricted cash
 
33,324

 

 
1,354

 

 
34,678

Accounts receivable
 
1,155

 
7,927

 
337,087

 

 
346,169

Receivable from affiliates
 
827

 
7,222

 
109

 
(1,980
)
 
6,178

Inventories
 

 
181

 
34,252

 

 
34,433

Other current assets
 
2,528

 
312

 
15,676

 

 
18,516

Total current assets
 
56,957

 
15,642


452,322


(4,918
)

520,003

Property, plant and equipment
 
5,399

 
122,899

 
686,426

 

 
814,724

Equity method investments
 
1,104,832

 
468,033

 
138,970

 
(1,324,033
)
 
387,802

Goodwill
 

 

 
9,884

 

 
9,884

Other intangible assets
 
36

 

 
7,549

 

 
7,585

Other noncurrent assets, net
 
3,606

 
1,317

 
3,258

 

 
8,181

Total assets
 
$
1,170,830

 
$
607,891


$
1,298,409


$
(1,328,951
)

$
1,748,179

LIABILITIES AND OWNERS’ EQUITY
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
70

 
$
12,304

 
$
241,249

 
$

 
$
253,623

Accrued liabilities
 
8,972

 
4,546

 
50,313

 

 
63,831

Payables to pre-petition creditors
 
32,876

 

 
57

 

 
32,933

Deferred revenue
 

 

 
18,973

 

 
18,973

Other current liabilities
 
134

 
580

 
4,263

 
(17
)
 
4,960

Current portion of long-term debt
 

 

 
24

 

 
24

Total current liabilities
 
42,052

 
17,430

 
314,879

 
(17
)
 
374,344

Long-term debt
 
201,500

 

 
4,562

 

 
206,062

Deferred income taxes
 
2,018

 

 
63,602

 

 
65,620

Other noncurrent liabilities
 
32,866

 

 
47,759

 

 
80,625

Commitments and contingencies
 


 


 


 


 


Owners’ equity excluding noncontrolling interests in consolidated subsidiaries
 
892,394

 
590,461

 
738,473

 
(1,328,934
)
 
892,394

Noncontrolling interests in consolidated subsidiaries
 

 

 
129,134

 

 
129,134

Total owners’ equity
 
892,394

 
590,461


867,607


(1,328,934
)

1,021,528

Total liabilities and owners’ equity
 
$
1,170,830

 
$
607,891


$
1,298,409


$
(1,328,951
)

$
1,748,179



Condensed Consolidating Guarantor Statements of Operations
 
 
Three Months Ended September 30, 2013
 
 
Parent
 
Guarantors
 
Non-guarantors
 
Consolidating Adjustments
 
Consolidated
Revenues:
 
 
 
 
 
 
 
 
 
 
Product
 
$

 
$
63,623

 
$
231,404

 
$
(6,575
)
 
$
288,452

Service
 

 
1,174

 
35,228

 

 
36,402

Other
 

 

 
32,894

 

 
32,894

Total revenues
 

 
64,797

 
299,526

 
(6,575
)
 
357,748

Expenses:
 
 
 
 
 
 
 
 
 
 
Costs of products sold, exclusive of depreciation and amortization shown below
 

 
47,657

 
214,472

 
(6,575
)
 
255,554

Operating
 

 
5,069

 
47,291

 

 
52,360

General and administrative
 
7,855

 
2,242

 
10,855

 

 
20,952

Depreciation and amortization
 
497

 
4,838

 
10,778

 

 
16,113

Loss (gain) on disposal of long-lived assets, net
 

 
679

 
(271
)
 

 
408

Total expenses
 
8,352

 
60,485

 
283,125

 
(6,575
)
 
345,387

Earnings from equity method investments
 
15,497

 
24,667

 
10,787

 
(43,468
)
 
7,483

Operating income
 
7,145

 
28,979

 
27,188

 
(43,468
)
 
19,844

Other expenses (income):
 
 
 
 
 
 
 
 
 

Interest expense
 
4,029

 
1,314

 
5,136

 
(1,399
)
 
9,080

Foreign currency transaction gain
 

 

 
(457
)
 

 
(457
)
Other expense, net
 
3,383

 
1

 
(112
)
 
1,399

 
4,671

Total other expenses, net
 
7,412

 
1,315

 
4,567

 

 
13,294

Income (loss) from continuing operations before income taxes
 
(267
)
 
27,664

 
22,621

 
(43,468
)
 
6,550

Income tax expense (benefit)
 
4,960

 

 
(1,547
)
 

 
3,413

Income (loss) from continuing operations
 
(5,227
)
 
27,664

 
24,168

 
(43,468
)
 
3,137

Loss from discontinued operations, net of income taxes
 

 

 
(2
)
 

 
(2
)
Net income (loss)
 
(5,227
)
 
27,664

 
24,166

 
(43,468
)
 
3,135

Less: net income attributable to noncontrolling interests
 

 

 
5,054

 

 
5,054

Net income (loss) attributable to SemGroup
 
$
(5,227
)
 
$
27,664

 
$
19,112

 
$
(43,468
)
 
$
(1,919
)
Net income (loss)
 
$
(5,227
)
 
$
27,664

 
$
24,166

 
$
(43,468
)
 
$
3,135

Other comprehensive income (loss), net of income taxes
 
(2,162
)
 

 
8,267

 

 
6,105

Comprehensive income (loss)
 
(7,389
)
 
27,664

 
32,433

 
(43,468
)
 
9,240

Less: comprehensive income attributable to noncontrolling interests
 

 

 
5,054

 

 
5,054

Comprehensive income (loss) attributable to SemGroup
 
$
(7,389
)
 
$
27,664

 
$
27,379

 
$
(43,468
)
 
$
4,186

 
 
Three Months Ended September 30, 2012
 
 
Parent
 
Guarantors
 
Non-guarantors
 
Consolidating Adjustments
 
Consolidated
Revenues:
 
 
 
 
 
 
 
 
 
 
Product
 
$

 
$
28,781

 
$
182,672

 
$
(2,251
)
 
$
209,202

Service
 

 
282

 
29,518

 

 
29,800

Other
 

 
62

 
38,788

 

 
38,850

Total revenues
 

 
29,125

 
250,978

 
(2,251
)
 
277,852

Expenses:
 
 
 
 
 
 
 
 
 

Costs of products sold, exclusive of depreciation and amortization shown below
 

 
23,483

 
168,598

 
(2,251
)
 
189,830

Operating
 

 
3,055

 
49,312

 

 
52,367

General and administrative
 
3,840

 
2,793

 
10,047

 

 
16,680

Depreciation and amortization
 
628

 
1,649

 
9,804

 

 
12,081

Gain on disposal of long-lived assets, net
 

 
(3
)
 
(3,612
)
 

 
(3,615
)
Total expenses
 
4,468

 
30,977

 
234,149

 
(2,251
)
 
267,343

Earnings from equity method investments
 
14,201

 
20,904

 
10,021

 
(42,010
)
 
3,116

Operating income
 
9,733

 
19,052

 
26,850

 
(42,010
)
 
13,625

Other expenses (income):
 
 
 
 
 
 
 
 
 

Interest expense
 
4,262

 
(2,230
)
 
1,346

 
(1,386
)
 
1,992

Foreign currency transaction loss
 

 

 
355

 

 
355

Other expense (income), net
 
8,152

 
(50
)
 
(134
)
 
1,386

 
9,354

Total other expenses, net
 
12,414

 
(2,280
)
 
1,567

 

 
11,701

Income (loss) from continuing operations before income taxes
 
(2,681
)
 
21,332

 
25,283

 
(42,010
)
 
1,924

Income tax expense
 
96

 

 
1,995

 

 
2,091

Income (loss) from continuing operations
 
(2,777
)
 
21,332

 
23,288

 
(42,010
)
 
(167
)
Loss from discontinued operations, net of income taxes
 

 
(4
)
 
(261
)
 

 
(265
)
Net income (loss)
 
(2,777
)
 
21,328

 
23,027

 
(42,010
)
 
(432
)
Less: net income attributable to noncontrolling interests
 

 

 
2,336

 

 
2,336

Net income (loss) attributable to SemGroup
 
$
(2,777
)
 
$
21,328

 
$
20,691

 
$
(42,010
)
 
$
(2,768
)
Net income (loss)
 
$
(2,777
)
 
$
21,328

 
$
23,027

 
$
(42,010
)
 
$
(432
)
Other comprehensive loss, net of income taxes
 
1,475

 

 
10,597

 

 
12,072

Comprehensive income (loss)
 
(1,302
)
 
21,328

 
33,624

 
(42,010
)
 
11,640

Less: comprehensive income attributable to noncontrolling interests
 

 

 
2,336

 

 
2,336

Comprehensive income (loss) attributable to SemGroup
 
$
(1,302
)
 
$
21,328

 
$
31,288

 
$
(42,010
)
 
$
9,304


 
 
Nine Months Ended September 30, 2013
 
 
Parent
 
Guarantors
 
Non-guarantors
 
Consolidating Adjustments
 
Consolidated
Revenues:
 
 
 
 
 
 
 
 
 
 
Product
 
$

 
$
146,880

 
$
634,117

 
$
(15,663
)
 
$
765,334

Service
 

 
1,646

 
94,091

 

 
95,737

Other
 

 

 
108,617

 

 
108,617

Total revenues
 

 
148,526

 
836,825

 
(15,663
)
 
969,688

Expenses:
 
 
 
 
 
 
 
 
 

Costs of products sold, exclusive of depreciation and amortization shown below
 

 
108,814

 
587,481

 
(15,663
)
 
680,632

Operating
 

 
13,041

 
149,772

 

 
162,813

General and administrative
 
15,983

 
6,347

 
32,557

 

 
54,887

Depreciation and amortization
 
1,504

 
8,898

 
31,161

 

 
41,563

Loss (gain) on disposal of long-lived assets, net
 

 
682

 
(812
)
 

 
(130
)
Total expenses
 
17,487

 
137,782

 
800,159

 
(15,663
)
 
939,765

Earnings from equity method investments
 
52,432

 
63,011

 
31,886

 
(107,640
)
 
39,689

Operating income
 
34,945

 
73,755

 
68,552

 
(107,640
)
 
69,612

Other expenses (income):
 
 
 
 
 
 
 
 
 

Interest expense
 
1,112

 
3,141

 
15,845

 
(4,127
)
 
15,971

Foreign currency transaction gain
 

 

 
(973
)
 

 
(973
)
Other expense (income), net
 
32,826

 
159

 
(341
)
 
4,127

 
36,771

Total other expenses, net
 
33,938

 
3,300

 
14,531

 

 
51,769

Income from continuing operations before income taxes
 
1,007

 
70,455

 
54,021

 
(107,640
)
 
17,843

Income tax benefit
 
(40,469
)
 

 
(836
)
 

 
(41,305
)
Income from continuing operations
 
41,476

 
70,455

 
54,857

 
(107,640
)
 
59,148

Income (loss) from discontinued operations, net of income taxes
 

 
66

 
(1
)
 

 
65

Net income
 
41,476

 
70,521

 
54,856

 
(107,640
)
 
59,213

Less: net income attributable to noncontrolling interests
 

 

 
14,429

 

 
14,429

Net income attributable to SemGroup
 
$
41,476

 
$
70,521

 
$
40,427

 
$
(107,640
)
 
$
44,784

Net income
 
$
41,476

 
$
70,521

 
$
54,856

 
$
(107,640
)
 
$
59,213

Other comprehensive income (loss), net of income taxes
 
190

 

 
(4,497
)
 

 
(4,307
)
Comprehensive income
 
41,666

 
70,521

 
50,359

 
(107,640
)
 
54,906

Less: comprehensive income attributable to noncontrolling interests
 

 

 
14,429

 

 
14,429

Comprehensive income attributable to SemGroup
 
$
41,666

 
$
70,521

 
$
35,930

 
$
(107,640
)
 
$
40,477


 
 
Nine Months Ended September 30, 2012
 
 
Parent
 
Guarantors
 
Non-guarantors
 
Consolidating Adjustments
 
Consolidated
Revenues:
 
 
 
 
 
 
 
 
 
 
Product
 
$

 
$
86,158

 
$
629,770

 
$
(7,520
)
 
$
708,408

Service
 

 
951

 
85,776

 

 
86,727

Other
 

 
69

 
126,456

 

 
126,525

Total revenues
 

 
87,178

 
842,002

 
(7,520
)
 
921,660

Expenses:
 
 
 
 
 
 
 
 
 

Costs of products sold, exclusive of depreciation and amortization shown below
 

 
68,874

 
589,929

 
(7,520
)
 
651,283

Operating
 

 
9,255

 
163,495

 

 
172,750

General and administrative
 
16,528

 
6,109

 
30,436

 

 
53,073

Depreciation and amortization
 
1,938

 
4,707

 
29,042

 

 
35,687

Gain on disposal of long-lived assets, net
 

 
(3
)
 
(3,493
)
 

 
(3,496
)
Total expenses
 
18,466

 
88,942

 
809,409

 
(7,520
)
 
909,297

Earnings from equity method investments
 
36,721

 
39,992

 
25,053

 
(78,863
)
 
22,903

Operating income
 
18,255

 
38,228

 
57,646

 
(78,863
)
 
35,266

Other expenses (income):
 
 
 
 
 
 
 
 
 

Interest expense
 
4,064

 
(915
)
 
8,609

 
(3,995
)
 
7,763

Foreign currency transaction loss
 

 

 
358

 

 
358

Other expense (income), net
 
12,902

 
(19
)
 
(95
)
 
3,995

 
16,783

Total other expenses (income), net
 
16,966

 
(934
)
 
8,872

 

 
24,904

Income from continuing operations before income taxes
 
1,289

 
39,162

 
48,774

 
(78,863
)
 
10,362

Income tax expense
 
286

 

 
699

 

 
985

Income from continuing operations
 
1,003

 
39,162

 
48,075

 
(78,863
)
 
9,377

Income (loss) from discontinued operations, net of income taxes
 
3

 
(11
)
 
(448
)
 

 
(456
)
Net income
 
1,006

 
39,151

 
47,627

 
(78,863
)
 
8,921

Less: net income attributable to noncontrolling interests
 

 

 
7,915

 

 
7,915

Net income attributable to SemGroup
 
$
1,006

 
$
39,151

 
$
39,712

 
$
(78,863
)
 
$
1,006

Net income
 
$
1,006

 
$
39,151

 
$
47,627

 
$
(78,863
)
 
$
8,921

Other comprehensive income, net of income taxes
 
984

 

 
13,946

 

 
14,930

Comprehensive income
 
1,990

 
39,151

 
61,573

 
(78,863
)
 
23,851

Less: comprehensive income attributable to noncontrolling interests
 

 

 
7,915

 

 
7,915

Comprehensive income attributable to SemGroup
 
$
1,990

 
$
39,151

 
$
53,658

 
$
(78,863
)
 
$
15,936



Condensed Consolidating Guarantor Statements of Cash Flows
 
 
Nine Months Ended September 30, 2013
 
 
Parent
 
Guarantors
 
Non-guarantors
 
Consolidating Adjustments
 
Consolidated
Net cash provided by operating activities
 
$
19,717

 
$
16,424

 
$
74,197

 
$
(13,819
)
 
$
96,519

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 

Capital expenditures
 
(622
)
 
(65,845
)
 
(65,183
)
 

 
(131,650
)
Proceeds from sale of long-lived assets
 

 
3

 
1,045

 

 
1,048

Proceeds from the sale of interest in SemCrude Pipeline, L.L.C. to Rose Rock Midstream L.P.
 
189,500

 

 

 
(189,500
)
 

Investments in non-consolidated subsidiaries
 
(18,775
)
 
(28,031
)
 
(96,657
)
 

 
(143,463
)
Payments to acquire businesses
 

 
(306,232
)
 
(49,969
)
 

 
(356,201
)
Distributions in excess of equity in earnings of affiliates
 
5,541

 

 
7,550

 

 
13,091

Net cash provided by (used in) investing activities
 
175,644


(400,105
)

(203,214
)

(189,500
)
 
(617,175
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 

Debt issuance costs
 
(9,037
)
 

 
(2,828
)
 

 
(11,865
)
Borrowings on credit facilities
 
575,000

 

 
353,474

 

 
928,474

Principal payments on credit facilities and other obligations
 
(321,500
)
 

 
(272,903
)
 

 
(594,403
)
Proceeds from issuance of Rose Rock Midstream, L.P. common units, net of offering costs
 

 

 
210,226

 

 
210,226

Distributions to noncontrolling interests
 

 

 
(11,458
)
 

 
(11,458
)
Proceeds from warrant exercises
 
225

 

 

 

 
225

Repurchase of stock-based awards for payment of statutory taxes due on stock-based compensation
 
(371
)
 

 

 

 
(371
)
Dividends paid
 
(16,387
)
 

 

 

 
(16,387
)
Intercompany borrowings (advances), net
 
(432,703
)
 
383,681

 
(154,107
)
 
203,129

 

Net cash provided by (used in) financing activities
 
(204,773
)
 
383,681


122,404


203,129

 
504,441

Effect of exchange rate changes on cash and cash equivalents
 

 

 
904

 

 
904

Change in cash and cash equivalents
 
(9,412
)
 


(5,709
)

(190
)
 
(15,311
)
Cash and cash equivalents at beginning of period
 
19,123

 

 
63,844

 
(2,938
)
 
80,029

Cash and cash equivalents at end of period
 
$
9,711

 
$


$
58,135


$
(3,128
)
 
$
64,718


 
 
Nine Months Ended September 30, 2012
 
 
Parent
 
Guarantors
 
Non-guarantors
 
Consolidating Adjustments
 
Consolidated
Net cash provided by (used in) operating activities
 
$
(4,374
)
 
$
11,105

 
$
58,353

 
$
(13,326
)
 
$
51,758

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
Capital expenditures
 
(1,621
)
 
(41,706
)
 
(38,796
)
 

 
(82,123
)
Proceeds from sale of long-lived assets
 

 
12

 
335

 

 
347

Investments in non-consolidated subsidiaries
 
(1,740
)
 
(62,464
)
 
205

 

 
(63,999
)
Proceeds from the sale of non-consolidated affiliate
 

 

 
3,500

 

 
3,500

Distributions in excess of equity in earnings of affiliates
 
5,062

 

 
5,507

 

 
10,569

Net cash provided by (used in) investing activities
 
1,701

 
(104,158
)

(29,249
)


 
(131,706
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 

Debt issuance costs
 
(455
)
 

 
(239
)
 

 
(694
)
Borrowings on credit facilities
 
184,000

 

 
76,500

 

 
260,500

Principal payments on credit facilities and other obligations
 
(76,500
)
 

 
(102,501
)
 

 
(179,001
)
Distributions to noncontrolling interests
 

 

 
(5,754
)
 

 
(5,754
)
Repurchase of stock-based awards for payment of statutory taxes due on stock-based compensation
 
(242
)
 

 

 

 
(242
)
Intercompany borrowing (advances), net
 
(98,381
)
 
93,053

 
(8,086
)
 
13,414

 

Net cash provided by (used in) financing activities
 
8,422

 
93,053


(40,080
)

13,414

 
74,809

Effect of exchange rate changes on cash and cash equivalents
 

 

 
(977
)
 

 
(977
)
Change in cash and cash equivalents
 
5,749

 


(11,953
)

88

 
(6,116
)
Change in cash and cash equivalents included in discontinued operations
 

 

 
(36
)
 

 
(36
)
Change in cash and cash equivalents from continuing operations
 
5,749

 


(11,989
)

88

 
(6,152
)
Cash and cash equivalents at beginning of period
 
111

 

 
76,264

 
(2,762
)
 
73,613

Cash and cash equivalents at end of period
 
$
5,860

 
$


$
64,275


$
(2,674
)
 
$
67,461

Overview (Policies)
Basis of presentation
The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and the rules and regulations of the Securities and Exchange Commission ("SEC"). These financial statements include all normal and recurring adjustments that, in the opinion of management, are necessary to present fairly the financial position of the Company and the results of its operations and its cash flows.
The accompanying condensed consolidated financial statements are unaudited. The condensed consolidated balance sheet at December 31, 2012, is derived from audited financial statements.
Our condensed consolidated financial statements include the accounts of our controlled subsidiaries. All significant transactions between our consolidated subsidiaries have been eliminated.
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts and disclosures in the financial statements. Although management believes these estimates are reasonable, actual results could differ materially from these estimates. The results of operations for the three months and nine months ended September 30, 2013, are not necessarily indicative of the results to be expected for the full year ending December 31, 2013.
Pursuant to the rules and regulations of the SEC, the accompanying condensed consolidated financial statements do not include all of the information and notes normally included with financial statements prepared in accordance with accounting principles generally accepted in the United States. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2012, which are included in our Annual Report on Form 10-K for the year ended December 31, 2012, filed with the SEC.
Certain reclassifications have been made to conform previously reported balances to the current presentation.
Our significant accounting policies are consistent with those described in our Annual Report on Form 10-K for the year ended December 31, 2012.
Recent accounting pronouncements
On January 31, 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2013-01, "Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities," which clarifies the scope of the offsetting disclosure requirements in ASU 2011-11, "Disclosures About Offsetting Assets and Liabilities." Under ASU 2013-01, the disclosure requirements apply to derivative instruments accounted for in accordance with Accounting Standards Codification ("ASC") 815, "Derivatives and Hedging," including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending arrangements that are either offset on the balance sheet or subject to an enforceable master netting arrangement or similar agreement. ASU 2013-01 is effective for fiscal years beginning on or after January 1, 2013, and interim periods within those years. Retrospective application is required for all comparative periods presented. We adopted this guidance in the first quarter of 2013. The impact of adoption was not material.
On February 5, 2013, the FASB issued ASU 2013-02, "Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income." This ASU adds new disclosure requirements for items reclassified out of accumulated other comprehensive income ("AOCI"). The ASU is intended to help entities improve the transparency of changes in other comprehensive income ("OCI") and items reclassified out of AOCI in their financial statements. It does not amend any existing requirements for reporting net income or OCI in the financial statements. We adopted this guidance in the first quarter of 2013. The impact of adoption was not material.
On February 28, 2013, the FASB issued ASU 2013-04, "Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date (a consensus of the FASB Emerging Issues Task Force)." The ASU requires entities to “measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, as the sum of the following:
the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors; and
any additional amount the reporting entity expects to pay on behalf of its co-obligors.”
Required disclosures include a description of the joint and several arrangement and the total outstanding amount of the obligation for all joint parties. The ASU permits entities to aggregate disclosures (as opposed to providing separate disclosures for each joint and several obligation). These disclosure requirements are incremental to the existing related-party disclosure requirements in ASC 850, "Related Party Disclosures." The ASU is effective for public entities for all prior periods in fiscal years beginning on or after December 15, 2013, and interim reporting periods within those years. The Company will adopt this guidance in the first quarter of 2014. The impact is not expected to be material.
On March 4, 2013, the FASB issued ASU 2013-05, "Parent's Accounting for the Cumulative Translation Adjustment Upon Derecognition of Certain Subsidiaries or Groups of Assets Within a Foreign Entity or of an Investment in a Foreign Entity - a consensus of the FASB Emerging Issues Task Force”, which indicates that the entire amount of a cumulative translation adjustment ("CTA") related to an entity's investment in a foreign entity should be released when there has been a:
sale of a subsidiary or group of net assets within a foreign entity and the sale represents the substantially complete liquidation of the investment in the foreign entity;
loss of a controlling financial interest in an investment in a foreign entity (i.e., the foreign entity is deconsolidated); or
step acquisition for a foreign entity (i.e., when an entity has changed from applying the equity method for an investment in a foreign entity to consolidating the foreign entity).
The ASU does not change the requirement to release a pro rata portion of the CTA of the foreign entity into earnings for a partial sale of an equity method investment in a foreign entity. For public entities, this ASU is effective for fiscal years beginning on or after December 15, 2013, and interim periods within those years. The Company will adopt this guidance in the first quarter of 2014. The impact is not expected to be material.
In July 2013, the FASB issued ASU 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists," which requires an unrecognized tax benefit to be classified as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except in certain circumstances. For public entities, this ASU is effective for fiscal years beginning on or after December 15, 2013, and interim periods within those years. The Company will adopt this guidance in the first quarter of 2014. The impact is not expected to be material.
Financial Instruments Financial Instruments (Policies)
Fair Value of Financial Instruments, Policy [Policy Text Block]
“Level 1” measurements use as inputs unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. These include commodity futures contracts that are traded on an exchange. These also include common stock warrants (Note 10) which are traded on the New York Stock Exchange.
“Level 2” measurements use as inputs market observable and corroborated prices for similar commodity derivative contracts. Assets and liabilities classified as Level 2 include over-the-counter (“OTC”) traded forward contracts and swaps.
“Level 3” measurements use as inputs information from a pricing service and internal valuation models incorporating observable and unobservable market data. These may include commodity derivatives, such as forwards and swaps for which there is not a highly liquid market, and therefore are not included in Level 2.
Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the measurement requires judgment and may affect the valuation of assets and liabilities and their placement within the fair value levels. At September 30, 2013, all of our physical fixed price forward purchases and sales contracts were being accounted for as normal purchases and normal sales.
Rose Rock Midstream, L.P. (Tables)
Rose Rock intends to pay a minimum quarterly distribution of $0.3625 per unit, to the extent it has sufficient available cash, as defined in Rose Rock’s partnership agreement. Rose Rock’s partnership agreement requires Rose Rock to distribute all of its available cash each quarter in the following manner:
 
Total Quarterly Distributions
Per Unit Target Amount
 
Marginal Percentage
Interest in Distributions
 
Unitholders
 
General
Partner
 
Incentive
Distribution
Rights
Minimum Quarterly Distributions
 
 
 
 
 
 
$
0.362500

 
98.0
%
 
2.0
%
 

First Target Distribution
above
 
$
0.362500

 
up to
 
$
0.416875

 
98.0
%
 
2.0
%
 

Second Target Distribution
above
 
$
0.416875

 
up to
 
$
0.453125

 
85.0
%
 
2.0
%
 
13.0
%
Third Target Distribution
above
 
$
0.453125

 
up to
 
$
0.543750

 
75.0
%
 
2.0
%
 
23.0
%
Thereafter
 
 
 
 
above
 
$
0.543750

 
50.0
%
 
2.0
%
 
48.0
%
 
The following table shows the cash distributions paid or declared during 2013 and 2012 (in thousands, except for per unit amounts):
 
 
Record Date
Payment Date
Distribution
Per Unit
 
Distributions Paid/To Be Paid
Quarter Ended
 
SemGroup
Noncontrolling
Interest
Common Units
Total
Distributions
 
General
Partner
Incentive
Distributions
Common
Units
Subordinated
Units
December 31, 2011
*
February 3, 2012
February 13, 2012
$
0.0670

$
23

$

$
93

$
561

$
470

$
1,147

March 31, 2012
 
May 7, 2012
May 15, 2012
$
0.3725

  
$
128

$

$
517

$
3,125

$
2,607

$
6,377

June 30, 2012
 
August 6, 2012
August 14, 2012
$
0.3825

 
$
131

$

$
532

$
3,209

$
2,678

$
6,550

September 30, 2012
 
November 5, 2012
November 14, 2012
$
0.3925

 
$
134

$

$
545

$
3,294

$
2,748

$
6,721

December 31, 2012
 
February 4, 2013
February 14, 2013
$
0.4025

 
$
167

$

$
1,163

$
3,377

$
3,624

$
8,331

March 31, 2013
 
May 6, 2013
May 15, 2013
$
0.4300

 
$
179

$
41

$
1,242

$
3,607

$
3,872

$
8,941

June 30, 2013
 
August 5, 2013
August 14, 2013
$
0.4400


$
183

$
72

$
1,271

$
3,692

$
3,962

$
9,180

September 30, 2013
**
November 5, 2013
November 14, 2013
$
0.4500

**
$
232

$
127

$
1,301

$
3,775

$
6,189

$
11,624

*Minimum quarterly distribution for quarter ended December 31, 2011 was prorated for the period beginning immediately after the closing of Rose Rock’s IPO, December 14, 2011 through December 31, 2011.
**Expected payment date and amounts for distributions related to the quarter ended September 30, 2013.
Certain summarized balance sheet information of Rose Rock is shown below (in thousands):
 
(unaudited)
 
 
 
September 30,
2013
 
December 31,
2012
Cash
$
1,914

 
$
108

Other current assets
292,386

 
250,509

Property, plant and equipment, net
313,193

 
291,530

Equity method investment
77,449

 

Goodwill
27,261

 

Other noncurrent assets, net
10,536

 
2,579

Total assets
$
722,739

 
$
544,726

 
 
 
 
Current liabilities
$
254,491

 
$
231,843

Long-term debt
85,043

 
4,562

Partners’ capital attributable to SemGroup
130,845

 
179,187

Partners’ capital attributable to noncontrolling interests
252,360

 
129,134

Total liabilities and partners’ capital
$
722,739

 
$
544,726

Certain summarized income statement information of Rose Rock for the three months and nine months ended September 30, 2013 and 2012 is shown below (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Revenue
$
181,831

 
$
131,554

 
$
514,485

 
$
468,687

Cost of products sold
$
157,550

 
$
111,790

 
$
446,507

 
$
412,847

Operating, general and administrative expenses
$
12,394

 
$
9,779

 
$
30,434

 
$
25,976

Depreciation and amortization expense
$
4,130

 
$
3,066

 
$
11,327

 
$
9,032

Earnings from equity method investment
$
3,527

 
$

 
$
10,431

 
$

Net income
$
9,411

 
$
6,469

 
$
30,539

 
$
19,353

Investments In Non-Consolidated Subsidiaries (Tables)
Our equity method investments consist of the following (in thousands):
 
September 30, 2013
 
December 31, 2012
White Cliffs
$
228,076

 
$
138,970

NGL Energy
187,632

 
174,398

Glass Mountain
102,441

 
74,434

Total equity method investments
$
518,149

 
$
387,802

Our earnings from equity method investments consist of the following (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
White Cliffs
$
10,786

 
$
10,021

 
$
31,886

 
$
25,053

NGL Energy
(3,288
)
 
(6,905
)
 
7,828

 
(2,150
)
Glass Mountain
(15
)
 

 
(25
)
 

Total earnings from equity method investments
$
7,483

 
$
3,116

 
$
39,689

 
$
22,903

Cash distributions received from equity methods investments consist of the following (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
White Cliffs
$
12,755

 
$
10,794

 
$
39,436

 
$
30,561

NGL Energy
4,671

 
2,090

 
13,369

 
5,063

Glass Mountain

 

 

 

Total cash distributions received from equity method investments
$
17,426

 
$
12,884

 
$
52,805

 
$
35,624

Certain summarized income statement information of White Cliffs for the three months and nine months ended September 30, 2013 and 2012 is shown below (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Revenue
$
31,453

 
$
28,522

 
$
92,238

 
$
76,910

Operating, general and administrative expenses
$
5,141

 
$
3,857

 
$
14,433

 
$
11,382

Depreciation and amortization expense
$
4,720

 
$
4,995

 
$
14,150

 
$
14,964

Net income
$
21,579

 
$
19,670

 
$
63,642

 
$
50,564

Certain unaudited summarized income statement information of NGL Energy for the three months and nine months ended June 30, 2013 and 2012 is shown below (in thousands):
 
Three Months Ended June 30,
 
Nine Months Ended June 30,
 
2013

2012
 
2013
 
2012
Revenue
$
1,385,957

 
$
326,436

 
$
4,341,778

 
$
1,236,023

Cost of products sold
$
1,303,076

 
$
298,985

 
$
3,989,511

 
$
1,128,581

Operating, general and administrative expenses
$
67,499

 
$
33,298

 
$
206,824

 
$
76,015

Depreciation and amortization expense
$
22,724

 
$
9,227

 
$
68,989

 
$
21,260

Net income
$
(17,508
)
 
$
(24,710
)
 
$
45,310

 
$
(4,678
)
Segments (Tables)
Schedule of Segment Reporting Information
 
Three Months Ended September 30, 2013
 
Crude

SemStream

SemCAMS

SemGas

SemLogistics

SemMexico

Corporate
and Other

Consolidated
 
 
 
 
 
 
 
(dollars in thousands)
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
External
$
181,831

 
$

 
$
48,979

 
$
59,220

 
$
2,169

 
$
65,549

 
$

 
$
357,748

Intersegment

 

 

 
6,575

 

 

 
(6,575
)
 

Total revenues
181,831

 

 
48,979

 
65,795

 
2,169

 
65,549

 
(6,575
)
 
357,748

Expenses:
 
 
 
 

 

 
 
 

 
 
 
 
Costs of products sold, exclusive of depreciation and amortization shown below
157,550

 

 
106

 
48,403

 

 
56,070

 
(6,575
)
 
255,554

Operating
9,098

 

 
33,980

 
5,436

 
1,616

 
2,230

 

 
52,360

General and administrative
3,360

 
114

 
3,446

 
1,923

 
1,679

 
2,510

 
7,920

 
20,952

Depreciation and amortization
4,130

 

 
2,631

 
4,992

 
2,334

 
1,529

 
497

 
16,113

Loss (gain) on disposal of long-lived assets, net

 

 

 
679

 

 
(271
)
 

 
408

Total expenses
174,138

 
114


40,163


61,433


5,629


62,068


1,842


345,387

Earnings from equity method investments
10,771

 
(3,288
)
 

 

 

 

 

 
7,483

Operating income (loss)
18,464

 
(3,402
)
 
8,816

 
4,362

 
(3,460
)
 
3,481

 
(8,417
)

19,844

Other expenses (income), net
3,634

 
(1,238
)
 
4,720

 
880

 
(217
)
 
(21
)
 
5,536

 
13,294

Income (loss) from continuing operations before income taxes
$
14,830

 
$
(2,164
)
 
$
4,096

 
$
3,482

 
$
(3,243
)
 
$
3,502

 
$
(13,953
)

$
6,550

Total assets at September 30, 2013 (excluding intersegment receivables)
$
1,012,535

 
$
187,632

 
$
320,431

 
$
510,129

 
$
167,741

 
$
95,317

 
$
96,617

 
$
2,390,402


For the three months ended September 30, 2013, one customer from our Crude segment accounted for 13% of our total consolidated revenue.

 
Three Months Ended September 30, 2012
 
Crude
 
SemStream
 
SemCAMS
 
SemGas
 
SemLogistics
 
SemMexico
 
Corporate
and Other
 
Consolidated
 
 
 
 
 
 
 
(dollars in thousands)
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
External
$
131,616

 
$

 
$
54,301

 
$
27,627

 
$
2,213

 
$
62,095

 
$

 
$
277,852

Intersegment

 

 

 
2,251

 

 

 
(2,251
)
 

Total revenues
131,616

 


54,301


29,878


2,213


62,095


(2,251
)
 
277,852

Expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Costs of products sold, exclusive of depreciation and amortization shown below
111,790

 

 
309

 
24,068

 
97

 
55,817

 
(2,251
)
 
189,830

Operating
6,042

 
7

 
40,081

 
2,931

 
1,436

 
1,870

 

 
52,367

General and administrative
5,015

 
528

 
3,354

 
1,329

 
990

 
1,501

 
3,963

 
16,680

Depreciation and amortization
3,066

 

 
2,664

 
1,797

 
2,388

 
1,536

 
630

 
12,081

Gain on disposal of long-lived assets, net
(3,500
)
 

 

 
(3
)
 

 
(112
)
 

 
(3,615
)
Total expenses
122,413

 
535


46,408


30,122


4,911


60,612


2,342

 
267,343

Earnings from equity method investments
10,021

 
(6,905
)
 

 

 

 

 

 
3,116

Operating income (loss)
19,224

 
(7,440
)

7,893


(244
)

(2,698
)

1,483


(4,593
)
 
13,625

Other expenses (income), net
(119
)
 
(2,551
)
 
3,419

 
(378
)
 
337

 
(82
)
 
11,075

 
11,701

Income (loss) from continuing operations before income taxes
$
19,343

 
$
(4,889
)

$
4,474


$
134


$
(3,035
)

$
1,565


$
(15,668
)
 
$
1,924


 
Nine Months Ended September 30, 2013
 
Crude
 
SemStream
 
SemCAMS
 
SemGas
 
SemLogistics
 
SemMexico
 
Corporate
and Other
 
Consolidated
 
 
 
 
 
 
 
(dollars in thousands)
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
External
$
514,485

 
$

 
$
151,219

 
$
135,782

 
$
7,827

 
$
160,375

 
$

 
$
969,688

Intersegment

 

 

 
15,678

 

 

 
(15,678
)
 

Total revenues
514,485

 

 
151,219

 
151,460

 
7,827

 
160,375

 
(15,678
)
 
969,688

Expenses:
 
 
 
 

 

 
 
 

 
 
 
 
Costs of products sold, exclusive of depreciation and amortization shown below
446,507

 

 
290

 
111,141

 

 
138,372

 
(15,678
)
 
680,632

Operating
20,527

 
1

 
116,372

 
13,869

 
5,303

 
6,741

 

 
162,813

General and administrative
10,778

 
430

 
10,933

 
5,112

 
4,285

 
7,175

 
16,174

 
54,887

Depreciation and amortization
11,327

 

 
7,925

 
9,353

 
6,987

 
4,467

 
1,504

 
41,563

Loss (gain) on disposal of long-lived assets, net
(25
)
 
6

 

 
673

 

 
(784
)
 

 
(130
)
Total expenses
489,114

 
437

 
135,520

 
140,148

 
16,575

 
155,971

 
2,000

 
939,765

Earnings from equity method investments
31,861

 
7,828

 

 

 

 

 

 
39,689

Operating income (loss)
57,232

 
7,391

 
15,699

 
11,312

 
(8,748
)
 
4,404

 
(17,678
)
 
69,612

Other expenses (income), net
10,925

 
(3,399
)
 
14,179

 
2,149

 
896

 
(339
)
 
27,358

 
51,769

Income (loss) from continuing operations before income taxes
$
46,307

 
$
10,790

 
$
1,520

 
$
9,163

 
$
(9,644
)
 
$
4,743

 
$
(45,036
)
 
$
17,843


For the nine months ended September 30, 2013, two customers from our Crude segment each accounted for 10% of our total consolidated revenue.
 
Nine Months Ended September 30, 2012
 
Crude
 
SemStream
 
SemCAMS
 
SemGas
 
SemLogistics
 
SemMexico
 
Corporate
and Other
 
Consolidated
 
 
 
 
 
 
 
(dollars in thousands)
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
External
$
468,748

 
$
7

 
$
169,149

 
$
81,917

 
$
8,610

 
$
193,229

 
$

 
$
921,660

Intersegment

 

 

 
7,535

 

 

 
(7,535
)
 

Total revenues
468,748

 
7

 
169,149

 
89,452

 
8,610

 
193,229

 
(7,535
)
 
921,660

Expenses:
 
 
 
 

 

 
 
 

 
 
 
 
Costs of products sold, exclusive of depreciation and amortization shown below
412,847

 
33

 
499

 
70,607

 
196

 
174,636

 
(7,535
)
 
651,283

Operating
17,957

 
(18
)
 
135,165

 
9,092

 
4,521

 
6,033

 

 
172,750

General and administrative
9,796

 
582

 
10,404

 
4,564

 
4,249

 
6,730

 
16,748

 
53,073

Depreciation and amortization
9,032

 

 
7,910

 
5,153

 
7,040

 
4,614

 
1,938

 
35,687

Gain on disposal of long-lived assets, net
(3,444
)
 

 

 
(3
)
 

 
(49
)
 

 
(3,496
)
Total expenses
446,188

 
597

 
153,978

 
89,413

 
16,006

 
191,964

 
11,151

 
909,297

Earnings from equity method investments
25,053

 
(2,150
)
 

 

 

 

 

 
22,903

Operating income (loss)
47,613

 
(2,740
)
 
15,171

 
39

 
(7,396
)
 
1,265

 
(18,686
)
 
35,266

Other expenses (income), net
(739
)
 
(2,507
)
 
13,974

 
924

 
1,805

 
233

 
11,214

 
24,904

Income (loss) from continuing operations before income taxes
$
48,352

 
$
(233
)
 
$
1,197

 
$
(885
)
 
$
(9,201
)
 
$
1,032

 
$
(29,900
)
 
$
10,362



Inventories (Tables)
Components Of Inventories
Inventories consist of the following (in thousands):
 
September 30,
2013
 
December 31,
2012
Crude oil
$
32,720

 
$
24,840

Asphalt and other
13,889

 
9,593

Total inventories
$
46,609

 
$
34,433

Financial Instruments (Tables)
The tables below summarize the balances of these assets and liabilities at September 30, 2013 and December 31, 2012 (in thousands):

 
September 30, 2013
 
December 31, 2012
 
Level 1
 
Netting*
 
Total
 
Level 1
 
Netting*
 
Total
Assets:
 
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
$
857

 
$
(132
)
 
$
725

 
$
22

 
$
(22
)
 
$

Total assets
857

 
(132
)
 
725

 
22

 
(22
)
 

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
$
132

 
$
(132
)
 
$

 
$
1,056

 
$
(22
)
 
$
1,034

Warrants
46,350

 

 
46,350

 
32,858

 

 
32,858

Total liabilities
46,482

 
(132
)
 
46,350

 
33,914

 
(22
)
 
33,892

Net assets (liabilities) at fair value
$
(45,625
)
 
$

 
$
(45,625
)
 
$
(33,892
)
 
$

 
$
(33,892
)
*Relates primarily to exchange traded futures. Gain and loss positions on multiple contracts are settled net on a daily basis with the exchange.
There were no financial assets or liabilities classified as Level 2 or Level 3 during the three months and nine months ended September 30, 2013 and 2012, as such no rollforward of activity has been presented.
The following table sets forth the unaudited notional quantities for commodity derivative instruments entered into (in thousands of barrels):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Sales
695

 
470

 
2,025

 
1,153

Purchases
805

 
380

 
2,095

 
1,066

Realized and unrealized gains (losses) from our commodity derivatives were recorded to product revenue in the following amounts (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Commodity contracts
$
(1,652
)
 
$
(631
)
 
$
(2,430
)
 
$
(342
)
We record the fair value of our commodity derivative instruments on our condensed consolidated balance sheets in other current assets and other current liabilities in the following amounts (in thousands):
 
September 30, 2013
 
December 31, 2012
 
Assets
 
Liabilities
 
Assets
 
Liabilities
Commodity contracts
$
725

 
$

 
$

 
$
1,034

Long-Term Debt (Tables)
Our long-term debt consisted of the following (in thousands):
 
September 30,
2013
 
December 31,
2012
SemGroup 7.50% senior unsecured notes
$
300,000

 
$

SemGroup corporate revolving credit facility
155,000

 
201,500

Rose Rock credit facility
85,000

 
4,500

SemMexico credit facility

 

Capital leases
69

 
86

Total long-term debt
$
540,069

 
$
206,086

less: current portion of long-term debt
26

 
24

Noncurrent portion of long-term debt
$
540,043

 
$
206,062

Year
 
Percentage
2016
 
105.625%
2017
 
103.750%
2018
 
101.875%
2019 and thereafter
 
100.000%
Commitments and Contingencies (Tables)
Summary Of Purchase And Sale Commitments
We account for derivatives at fair value with the exception of commitments which have been designated as normal purchases and sales for which we do not record assets or liabilities related to these agreements until the product is purchased or sold. At September 30, 2013, such commitments included the following (in thousands):
 
Volume
(Barrels)
 
Value
Fixed price purchases
202

 
$
20,324

Fixed price sales
330

 
$
34,749

Floating price purchases
18,016

 
$
1,781,247

Floating price sales
18,600

 
$
1,814,662

Equity (Tables)
The following table shows the changes in our consolidated owners’ equity accounts from December 31, 2012 to September 30, 2013 (in thousands):
 
Common
Stock
 
Additional
Paid-in
Capital
 
Treasury
Stock
 
Accumulated
Deficit
 
Accumulated
Other
Comprehensive
Loss
 
Noncontrolling
Interests
 
Total
Owners’
Equity
Balance at December 31, 2012
$
420

 
$
1,039,189

 
$
(242
)
 
$
(145,674
)
 
$
(1,299
)
 
$
129,134

 
$
1,021,528

Net income

 

 

 
44,784

 

 
14,429

 
59,213

Other comprehensive income (loss), net of income taxes

 

 

 

 
(4,307
)
 

 
(4,307
)
Distributions to noncontrolling interests

 

 

 

 

 
(11,458
)
 
(11,458
)
Rose Rock Midstream, L.P. equity issuance

 

 

 

 

 
210,226

 
210,226

Transfer of SemCrude Pipeline interest to Rose Rock*

 
56,800

 

 

 

 
(90,516
)
 
(33,716
)
Warrants settlements
4

 
23,754

 

 

 

 

 
23,758

Dividends paid

 
(16,387
)


 

 

 

 
(16,387
)
Unvested dividend equivalent rights

 
(47
)
 

 

 

 
(33
)
 
(80
)
Non-cash equity compensation

 
4,733

 

 

 

 
578

 
5,311

Issuance of common stock under compensation plans
1

 
(1
)
 

 

 

 

 

Repurchase of common stock

 

 
(371
)
 

 

 

 
(371
)
Balance at September 30, 2013
$
425

 
$
1,108,041

 
$
(613
)
 
$
(100,890
)
 
$
(5,606
)
 
$
252,360

 
$
1,253,717

The following table presents the changes in the components of accumulated other comprehensive loss from December 31, 2012 to September 30, 2013 (in thousands):
 
Currency
Translation
 
Employee
Benefit
Plans
 
Total
Balance at December 31, 2012
$
1,855

 
$
(3,154
)
 
$
(1,299
)
Currency translation adjustment
(4,444
)
 

 
(4,444
)
Changes related to benefit plans, net of income tax expense of $46

 
137

 
137

Balance at September 30, 2013
$
(2,589
)
 
$
(3,017
)
 
$
(5,606
)
The shares of common stock reflected on the condensed consolidated balance sheet at September 30, 2013 are summarized below:
Shares issued on Emergence Date
40,882,496

Shares subsequently issued in settlement of pre-petition claims
226,016

Remaining shares required to be issued in settlement of pre-petition claims
291,484

Issuance of shares under employee and director compensation programs(*)
689,320

Shares issued upon exercise of warrants
441,325

Total shares
42,530,641

Par value per share
$
0.01

Common stock on September 30, 2013 balance sheet (in thousands)
$
425

(*) These shares include 105,738 shares which vested during the nine months ended September 30, 2013. Of these vested shares, recipients sold back to the Company 8,591 shares to satisfy tax withholding obligations which are being recognized at cost as treasury stock on the condensed consolidated balance sheet.
The warrants reflected on the condensed consolidated balance sheet at September 30, 2013 are summarized below:
Warrants issued on Emergence Date
1,634,210

Warrants subsequently issued in settlement of pre-petition claims
237,897

Remaining warrants to be issued in settlement of pre-petition claims
306,840

Warrants exercised (*)
(818,124
)
Total warrants at September 30, 2013
1,360,823

Fair value per warrant at September 30, 2013
$
34.06

Warrant value included within other noncurrent liabilities on September 30, 2013 consolidated balance sheet
$
46,349,631

Earnings Per Share (Tables)
Basic and diluted earnings per share
The following summarizes the calculation of basic earnings (loss) per share for the three months and nine months ended September 30, 2013 and 2012 (in thousands, except per share amounts):

 
Three Months Ended September 30, 2013
 
Three Months Ended September 30, 2012
 
Continuing
Operations
 
Discontinued
Operations
 
Net
 
Continuing
Operations
 
Discontinued
Operations
 
Net
Income
$
3,137

 
$
(2
)
 
$
3,135

 
$
(167
)
 
$
(265
)
 
$
(432
)
less: Income attributable to noncontrolling interests
5,054

 

 
5,054

 
2,336

 

 
2,336

Numerator
$
(1,917
)
 
$
(2
)
 
$
(1,919
)
 
$
(2,503
)
 
$
(265
)
 
$
(2,768
)
Common stock issued and to be issued pursuant to Plan of Reorganization
41,400

 
41,400

 
41,400

 
41,400

 
41,400

 
41,400

Weighted average common stock outstanding issued under compensation plans and warrant exercises
1,128

 
1,128

 
1,128

 
549

 
549

 
549

Denominator
42,528

 
42,528

 
42,528

 
41,949

 
41,949

 
41,949

Basic earnings (loss) per share
$
(0.05
)
 
$

 
$
(0.05
)
 
$
(0.06
)
 
$
(0.01
)
 
$
(0.07
)

 
Nine Months Ended September 30, 2013
 
Nine Months Ended September 30, 2012
 
Continuing
Operations
 
Discontinued
Operations
 
Net
 
Continuing
Operations
 
Discontinued
Operations
 
Net
Income
$
59,148

 
$
65

 
$
59,213

 
$
9,377

 
$
(456
)
 
$
8,921

less: Income attributable to noncontrolling interests
14,429

 

 
14,429

 
7,915

 

 
7,915

Numerator
$
44,719

 
$
65

 
$
44,784

 
$
1,462

 
$
(456
)
 
$
1,006

Common stock issued and to be issued pursuant to Plan of Reorganization
41,400

 
41,400

 
41,400

 
41,400

 
41,400

 
41,400

Weighted average common stock outstanding issued under compensation plans and warrant exercises
874

 
874

 
874

 
530

 
530

 
530

Denominator
42,274

 
42,274

 
42,274

 
41,930

 
41,930

 
41,930

Basic earnings (loss) per share
$
1.06

 
$

 
$
1.06

 
$
0.03

 
$
(0.01
)
 
$
0.02



The following summarizes the calculation of diluted earnings (loss) per share for the three months and nine months ended September 30, 2013 and 2012 (in thousands, except per share amounts):

 
Three Months Ended September 30, 2013
 
Three Months Ended September 30, 2012
 
Continuing
Operations
 
Discontinued
Operations
 
Net
 
Continuing
Operations
 
Discontinued
Operations
 
Net
Income
$
3,137

 
$
(2
)
 
$
3,135

 
$
(167
)
 
$
(265
)
 
$
(432
)
less: Income attributable to noncontrolling interests
5,054

 

 
5,054

 
2,336

 

 
2,336

Numerator
$
(1,917
)
 
$
(2
)
 
$
(1,919
)
 
$
(2,503
)
 
$
(265
)
 
$
(2,768
)
Common stock issued and to be issued pursuant to Plan of Reorganization
41,400

 
41,400

 
41,400

 
41,400

 
41,400

 
41,400

Weighted average common stock outstanding issued under compensation plans and warrant exercises
1,128

 
1,128

 
1,128

 
549

 
549

 
549

Effect of dilutive securities

 

 

 

 

 

Denominator
42,528

 
42,528

 
42,528

 
41,949

 
41,949

 
41,949

Diluted earnings (loss) per share
$
(0.05
)
 
$

 
$
(0.05
)
 
$
(0.06
)
 
$
(0.01
)
 
$
(0.07
)

 
Nine Months Ended September 30, 2013
 
Nine Months Ended September 30, 2012
 
Continuing
Operations
 
Discontinued
Operations
 
Net
 
Continuing
Operations
 
Discontinued
Operations
 
Net
Income
$
59,148

 
$
65

 
$
59,213

 
$
9,377

 
$
(456
)
 
$
8,921

less: Income attributable to noncontrolling interests
14,429

 

 
14,429

 
7,915

 

 
7,915

Numerator
$
44,719

 
$
65

 
$
44,784

 
$
1,462

 
$
(456
)
 
$
1,006

Common stock issued and to be issued pursuant to Plan of Reorganization
41,400

 
41,400

 
41,400

 
41,400

 
41,400

 
41,400

Weighted average common stock outstanding issued under compensation plans and warrant exercises
874

 
874

 
874

 
530

 
530

 
530

Effect of dilutive securities
270

 
270

 
270

 
252

 
252

 
252

Denominator
42,544

 
42,544

 
42,544

 
42,182

 
42,182

 
42,182

Diluted earnings (loss) per share
$
1.05

 
$

 
$
1.05

 
$
0.03

 
$
(0.01
)
 
$
0.02

Supplemental Cash Flow Information (Tables)
Schedule of Changes in Operating Assets and Liabilities
The following table summarizes the changes in the components of operating assets and liabilities shown on our condensed consolidated statements of cash flows (in thousands):

 
Nine Months Ended September 30,
 
2013
 
2012
Decrease (increase) in restricted cash
$
451

 
$
4,691

Decrease (increase) in accounts receivable
(30,977
)
 
(116,987
)
Decrease (increase) in receivable from affiliates
(6,861
)
 
622

Decrease (increase) in inventories
(13,983
)
 
(1,804
)
Decrease (increase) in derivatives and margin deposits
1,972

 
457

Decrease (increase) in other current assets
2,269

 
8,393

Decrease (increase) in other assets
258

 
2,457

Increase (decrease) in accounts payable and accrued liabilities
50,614

 
97,638

Increase (decrease) in payable to affiliates
2,102

 
(5,160
)
Increase (decrease) in payables to pre-petition creditors
(416
)
 
(4,541
)
Increase (decrease) in other noncurrent liabilities
(1,349
)
 
2,942

 
$
4,080

 
$
(11,292
)
Related Party Transactions (Tables)
Related Party Transactions
During the three and nine months ended September 30, 2013 and 2012, we generated the following transactions with NGL Energy (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Revenues
$
31,043

 
$
14,395

 
$
66,367

 
$
41,945

Purchases
$
8,018

 
$
6,009

 
$
8,018

 
$
36,573

Reimbursements from NGL Energy for transition services
$
60

 
$
28

 
$
156

 
$
526

Acquisition Acquisition (Tables)
The above acquisitions accounted for the majority of the change to our goodwill during the nine months ended September 30, 2013, as follows (in thousands):
Balance at December 31, 2012
$
9,884

Acquisitions
50,848

Currency translation adjustments
(56
)
Balance at September 30, 2013
$
60,676

We have preliminarily estimated the fair value of the assets acquired as follows (in thousands):
Property, plant and equipment
$
123,316

Customer contract intangible
169,244

Goodwill
23,587

Total assets acquired
$
316,147

We have preliminarily estimated the fair value of the assets acquired as follows (in thousands):
Property, plant and equipment
$
16,690

Customer contract intangible
6,018

Goodwill
27,261

Total assets acquired
$
49,969

Condensed Consolidating Guarantor Financial Statements (Tables)
Condensed Consolidating Guarantor Balance Sheets
 
 
September 30, 2013
 
 
Parent
 
Guarantors
 
Non-guarantors
 
Consolidating Adjustments
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
9,711

 
$

 
$
58,135

 
$
(3,128
)
 
$
64,718

Restricted cash
 
32,880

 

 
1,302

 

 
34,182

Accounts receivable
 
640

 
11,256

 
356,350

 

 
368,246

Receivable from affiliates
 
752

 
15,189

 
244

 
(3,146
)
 
13,039

Inventories
 

 
1,164

 
45,445

 

 
46,609

Other current assets
 
2,417

 
330

 
12,420

 

 
15,167

Total current assets
 
46,400

 
27,939


473,896


(6,274
)

541,961

Property, plant and equipment
 
4,521

 
318,805

 
733,790

 

 
1,057,116

Equity method investments
 
1,475,019

 
524,300

 
228,076

 
(1,709,246
)
 
518,149

Goodwill
 

 
23,587

 
37,089

 

 
60,676

Other intangible assets
 
32

 
167,834

 
12,031

 

 
179,897

Other noncurrent assets, net
 
19,745

 
1,172

 
11,686

 

 
32,603

Total assets
 
$
1,545,717

 
$
1,063,637


$
1,496,568


$
(1,715,520
)

$
2,390,402

LIABILITIES AND OWNERS’ EQUITY
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
104

 
$
44,888

 
$
258,680

 
$

 
$
303,672

Payable to affiliates
 
14

 
121

 
1,967

 

 
2,102

Accrued liabilities
 
14,715

 
8,026

 
58,773

 
(5
)
 
81,509

Payables to pre-petition creditors
 
32,317

 

 
55

 

 
32,372

Deferred revenue
 

 

 
18,835

 

 
18,835

Other current liabilities
 
97

 
714

 
8,309

 

 
9,120

Current portion of long-term debt
 

 

 
26

 

 
26

Total current liabilities
 
47,247

 
53,749

 
346,645

 
(5
)
 
447,636

Long-term debt
 
455,000

 

 
85,043

 

 
540,043

Deferred income taxes
 
976

 

 
52,612

 

 
53,588

Other noncurrent liabilities
 
46,358

 

 
49,060

 

 
95,418

Commitments and contingencies
 


 


 


 


 


Owners’ equity excluding noncontrolling interests in consolidated subsidiaries
 
996,136

 
1,009,888

 
710,848

 
(1,715,515
)
 
1,001,357

Noncontrolling interests in consolidated subsidiaries
 

 

 
252,360

 

 
252,360

Total owners’ equity
 
996,136

 
1,009,888


963,208


(1,715,515
)

1,253,717

Total liabilities and owners’ equity
 
$
1,545,717


$
1,063,637

 
$
1,496,568

 
$
(1,715,520
)
 
$
2,390,402


 
 
December 31, 2012
 
 
Parent
 
Guarantors
 
Non-guarantors
 
Consolidating Adjustments
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
19,123

 
$

 
$
63,844

 
$
(2,938
)
 
$
80,029

Restricted cash
 
33,324

 

 
1,354

 

 
34,678

Accounts receivable
 
1,155

 
7,927

 
337,087

 

 
346,169

Receivable from affiliates
 
827

 
7,222

 
109

 
(1,980
)
 
6,178

Inventories
 

 
181

 
34,252

 

 
34,433

Other current assets
 
2,528

 
312

 
15,676

 

 
18,516

Total current assets
 
56,957

 
15,642


452,322


(4,918
)

520,003

Property, plant and equipment
 
5,399

 
122,899

 
686,426

 

 
814,724

Equity method investments
 
1,104,832

 
468,033

 
138,970

 
(1,324,033
)
 
387,802

Goodwill
 

 

 
9,884

 

 
9,884

Other intangible assets
 
36

 

 
7,549

 

 
7,585

Other noncurrent assets, net
 
3,606

 
1,317

 
3,258

 

 
8,181

Total assets
 
$
1,170,830

 
$
607,891


$
1,298,409


$
(1,328,951
)

$
1,748,179

LIABILITIES AND OWNERS’ EQUITY
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
70

 
$
12,304

 
$
241,249

 
$

 
$
253,623

Accrued liabilities
 
8,972

 
4,546

 
50,313

 

 
63,831

Payables to pre-petition creditors
 
32,876

 

 
57

 

 
32,933

Deferred revenue
 

 

 
18,973

 

 
18,973

Other current liabilities
 
134

 
580

 
4,263

 
(17
)
 
4,960

Current portion of long-term debt
 

 

 
24

 

 
24

Total current liabilities
 
42,052

 
17,430

 
314,879

 
(17
)
 
374,344

Long-term debt
 
201,500

 

 
4,562

 

 
206,062

Deferred income taxes
 
2,018

 

 
63,602

 

 
65,620

Other noncurrent liabilities
 
32,866

 

 
47,759

 

 
80,625

Commitments and contingencies
 


 


 


 


 


Owners’ equity excluding noncontrolling interests in consolidated subsidiaries
 
892,394

 
590,461

 
738,473

 
(1,328,934
)
 
892,394

Noncontrolling interests in consolidated subsidiaries
 

 

 
129,134

 

 
129,134

Total owners’ equity
 
892,394

 
590,461


867,607


(1,328,934
)

1,021,528

Total liabilities and owners’ equity
 
$
1,170,830

 
$
607,891


$
1,298,409


$
(1,328,951
)

$
1,748,179

Condensed Consolidating Guarantor Statements of Operations
 
 
Three Months Ended September 30, 2013
 
 
Parent
 
Guarantors
 
Non-guarantors
 
Consolidating Adjustments
 
Consolidated
Revenues:
 
 
 
 
 
 
 
 
 
 
Product
 
$

 
$
63,623

 
$
231,404

 
$
(6,575
)
 
$
288,452

Service
 

 
1,174

 
35,228

 

 
36,402

Other
 

 

 
32,894

 

 
32,894

Total revenues
 

 
64,797

 
299,526

 
(6,575
)
 
357,748

Expenses:
 
 
 
 
 
 
 
 
 
 
Costs of products sold, exclusive of depreciation and amortization shown below
 

 
47,657

 
214,472

 
(6,575
)
 
255,554

Operating
 

 
5,069

 
47,291

 

 
52,360

General and administrative
 
7,855

 
2,242

 
10,855

 

 
20,952

Depreciation and amortization
 
497

 
4,838

 
10,778

 

 
16,113

Loss (gain) on disposal of long-lived assets, net
 

 
679

 
(271
)
 

 
408

Total expenses
 
8,352

 
60,485

 
283,125

 
(6,575
)
 
345,387

Earnings from equity method investments
 
15,497

 
24,667

 
10,787

 
(43,468
)
 
7,483

Operating income
 
7,145

 
28,979

 
27,188

 
(43,468
)
 
19,844

Other expenses (income):
 
 
 
 
 
 
 
 
 

Interest expense
 
4,029

 
1,314

 
5,136

 
(1,399
)
 
9,080

Foreign currency transaction gain
 

 

 
(457
)
 

 
(457
)
Other expense, net
 
3,383

 
1

 
(112
)
 
1,399

 
4,671

Total other expenses, net
 
7,412

 
1,315

 
4,567

 

 
13,294

Income (loss) from continuing operations before income taxes
 
(267
)
 
27,664

 
22,621

 
(43,468
)
 
6,550

Income tax expense (benefit)
 
4,960

 

 
(1,547
)
 

 
3,413

Income (loss) from continuing operations
 
(5,227
)
 
27,664

 
24,168

 
(43,468
)
 
3,137

Loss from discontinued operations, net of income taxes
 

 

 
(2
)
 

 
(2
)
Net income (loss)
 
(5,227
)
 
27,664

 
24,166

 
(43,468
)
 
3,135

Less: net income attributable to noncontrolling interests
 

 

 
5,054

 

 
5,054

Net income (loss) attributable to SemGroup
 
$
(5,227
)
 
$
27,664

 
$
19,112

 
$
(43,468
)
 
$
(1,919
)
Net income (loss)
 
$
(5,227
)
 
$
27,664

 
$
24,166

 
$
(43,468
)
 
$
3,135

Other comprehensive income (loss), net of income taxes
 
(2,162
)
 

 
8,267

 

 
6,105

Comprehensive income (loss)
 
(7,389
)
 
27,664

 
32,433

 
(43,468
)
 
9,240

Less: comprehensive income attributable to noncontrolling interests
 

 

 
5,054

 

 
5,054

Comprehensive income (loss) attributable to SemGroup
 
$
(7,389
)
 
$
27,664

 
$
27,379

 
$
(43,468
)
 
$
4,186

 
 
Three Months Ended September 30, 2012
 
 
Parent
 
Guarantors
 
Non-guarantors
 
Consolidating Adjustments
 
Consolidated
Revenues:
 
 
 
 
 
 
 
 
 
 
Product
 
$

 
$
28,781

 
$
182,672

 
$
(2,251
)
 
$
209,202

Service
 

 
282

 
29,518

 

 
29,800

Other
 

 
62

 
38,788

 

 
38,850

Total revenues
 

 
29,125

 
250,978

 
(2,251
)
 
277,852

Expenses:
 
 
 
 
 
 
 
 
 

Costs of products sold, exclusive of depreciation and amortization shown below
 

 
23,483

 
168,598

 
(2,251
)
 
189,830

Operating
 

 
3,055

 
49,312

 

 
52,367

General and administrative
 
3,840

 
2,793

 
10,047

 

 
16,680

Depreciation and amortization
 
628

 
1,649

 
9,804

 

 
12,081

Gain on disposal of long-lived assets, net
 

 
(3
)
 
(3,612
)
 

 
(3,615
)
Total expenses
 
4,468

 
30,977

 
234,149

 
(2,251
)
 
267,343

Earnings from equity method investments
 
14,201

 
20,904

 
10,021

 
(42,010
)
 
3,116

Operating income
 
9,733

 
19,052

 
26,850

 
(42,010
)
 
13,625

Other expenses (income):
 
 
 
 
 
 
 
 
 

Interest expense
 
4,262

 
(2,230
)
 
1,346

 
(1,386
)
 
1,992

Foreign currency transaction loss
 

 

 
355

 

 
355

Other expense (income), net
 
8,152

 
(50
)
 
(134
)
 
1,386

 
9,354

Total other expenses, net
 
12,414

 
(2,280
)
 
1,567

 

 
11,701

Income (loss) from continuing operations before income taxes
 
(2,681
)
 
21,332

 
25,283

 
(42,010
)
 
1,924

Income tax expense
 
96

 

 
1,995

 

 
2,091

Income (loss) from continuing operations
 
(2,777
)
 
21,332

 
23,288

 
(42,010
)
 
(167
)
Loss from discontinued operations, net of income taxes
 

 
(4
)
 
(261
)
 

 
(265
)
Net income (loss)
 
(2,777
)
 
21,328

 
23,027

 
(42,010
)
 
(432
)
Less: net income attributable to noncontrolling interests
 

 

 
2,336

 

 
2,336

Net income (loss) attributable to SemGroup
 
$
(2,777
)
 
$
21,328

 
$
20,691

 
$
(42,010
)
 
$
(2,768
)
Net income (loss)
 
$
(2,777
)
 
$
21,328

 
$
23,027

 
$
(42,010
)
 
$
(432
)
Other comprehensive loss, net of income taxes
 
1,475

 

 
10,597

 

 
12,072

Comprehensive income (loss)
 
(1,302
)
 
21,328

 
33,624

 
(42,010
)
 
11,640

Less: comprehensive income attributable to noncontrolling interests
 

 

 
2,336

 

 
2,336

Comprehensive income (loss) attributable to SemGroup
 
$
(1,302
)
 
$
21,328

 
$
31,288

 
$
(42,010
)
 
$
9,304


 
 
Nine Months Ended September 30, 2013
 
 
Parent
 
Guarantors
 
Non-guarantors
 
Consolidating Adjustments
 
Consolidated
Revenues:
 
 
 
 
 
 
 
 
 
 
Product
 
$

 
$
146,880

 
$
634,117

 
$
(15,663
)
 
$
765,334

Service
 

 
1,646

 
94,091

 

 
95,737

Other
 

 

 
108,617

 

 
108,617

Total revenues
 

 
148,526

 
836,825

 
(15,663
)
 
969,688

Expenses:
 
 
 
 
 
 
 
 
 

Costs of products sold, exclusive of depreciation and amortization shown below
 

 
108,814

 
587,481

 
(15,663
)
 
680,632

Operating
 

 
13,041

 
149,772

 

 
162,813

General and administrative
 
15,983

 
6,347

 
32,557

 

 
54,887

Depreciation and amortization
 
1,504

 
8,898

 
31,161

 

 
41,563

Loss (gain) on disposal of long-lived assets, net
 

 
682

 
(812
)
 

 
(130
)
Total expenses
 
17,487

 
137,782

 
800,159

 
(15,663
)
 
939,765

Earnings from equity method investments
 
52,432

 
63,011

 
31,886

 
(107,640
)
 
39,689

Operating income
 
34,945

 
73,755

 
68,552

 
(107,640
)
 
69,612

Other expenses (income):
 
 
 
 
 
 
 
 
 

Interest expense
 
1,112

 
3,141

 
15,845

 
(4,127
)
 
15,971

Foreign currency transaction gain
 

 

 
(973
)
 

 
(973
)
Other expense (income), net
 
32,826

 
159

 
(341
)
 
4,127

 
36,771

Total other expenses, net
 
33,938

 
3,300

 
14,531

 

 
51,769

Income from continuing operations before income taxes
 
1,007

 
70,455

 
54,021

 
(107,640
)
 
17,843

Income tax benefit
 
(40,469
)
 

 
(836
)
 

 
(41,305
)
Income from continuing operations
 
41,476

 
70,455

 
54,857

 
(107,640
)
 
59,148

Income (loss) from discontinued operations, net of income taxes
 

 
66

 
(1
)
 

 
65

Net income
 
41,476

 
70,521

 
54,856

 
(107,640
)
 
59,213

Less: net income attributable to noncontrolling interests
 

 

 
14,429

 

 
14,429

Net income attributable to SemGroup
 
$
41,476

 
$
70,521

 
$
40,427

 
$
(107,640
)
 
$
44,784

Net income
 
$
41,476

 
$
70,521

 
$
54,856

 
$
(107,640
)
 
$
59,213

Other comprehensive income (loss), net of income taxes
 
190

 

 
(4,497
)
 

 
(4,307
)
Comprehensive income
 
41,666

 
70,521

 
50,359

 
(107,640
)
 
54,906

Less: comprehensive income attributable to noncontrolling interests
 

 

 
14,429

 

 
14,429

Comprehensive income attributable to SemGroup
 
$
41,666

 
$
70,521

 
$
35,930

 
$
(107,640
)
 
$
40,477


 
 
Nine Months Ended September 30, 2012
 
 
Parent
 
Guarantors
 
Non-guarantors
 
Consolidating Adjustments
 
Consolidated
Revenues:
 
 
 
 
 
 
 
 
 
 
Product
 
$

 
$
86,158

 
$
629,770

 
$
(7,520
)
 
$
708,408

Service
 

 
951

 
85,776

 

 
86,727

Other
 

 
69

 
126,456

 

 
126,525

Total revenues
 

 
87,178

 
842,002

 
(7,520
)
 
921,660

Expenses:
 
 
 
 
 
 
 
 
 

Costs of products sold, exclusive of depreciation and amortization shown below
 

 
68,874

 
589,929

 
(7,520
)
 
651,283

Operating
 

 
9,255

 
163,495

 

 
172,750

General and administrative
 
16,528

 
6,109

 
30,436

 

 
53,073

Depreciation and amortization
 
1,938

 
4,707

 
29,042

 

 
35,687

Gain on disposal of long-lived assets, net
 

 
(3
)
 
(3,493
)
 

 
(3,496
)
Total expenses
 
18,466

 
88,942

 
809,409

 
(7,520
)
 
909,297

Earnings from equity method investments
 
36,721

 
39,992

 
25,053

 
(78,863
)
 
22,903

Operating income
 
18,255

 
38,228

 
57,646

 
(78,863
)
 
35,266

Other expenses (income):
 
 
 
 
 
 
 
 
 

Interest expense
 
4,064

 
(915
)
 
8,609

 
(3,995
)
 
7,763

Foreign currency transaction loss
 

 

 
358

 

 
358

Other expense (income), net
 
12,902

 
(19
)
 
(95
)
 
3,995

 
16,783

Total other expenses (income), net
 
16,966

 
(934
)
 
8,872

 

 
24,904

Income from continuing operations before income taxes
 
1,289

 
39,162

 
48,774

 
(78,863
)
 
10,362

Income tax expense
 
286

 

 
699

 

 
985

Income from continuing operations
 
1,003

 
39,162

 
48,075

 
(78,863
)
 
9,377

Income (loss) from discontinued operations, net of income taxes
 
3

 
(11
)
 
(448
)
 

 
(456
)
Net income
 
1,006

 
39,151

 
47,627

 
(78,863
)
 
8,921

Less: net income attributable to noncontrolling interests
 

 

 
7,915

 

 
7,915

Net income attributable to SemGroup
 
$
1,006

 
$
39,151

 
$
39,712

 
$
(78,863
)
 
$
1,006

Net income
 
$
1,006

 
$
39,151

 
$
47,627

 
$
(78,863
)
 
$
8,921

Other comprehensive income, net of income taxes
 
984

 

 
13,946

 

 
14,930

Comprehensive income
 
1,990

 
39,151

 
61,573

 
(78,863
)
 
23,851

Less: comprehensive income attributable to noncontrolling interests
 

 

 
7,915

 

 
7,915

Comprehensive income attributable to SemGroup
 
$
1,990

 
$
39,151

 
$
53,658

 
$
(78,863
)
 
$
15,936

Condensed Consolidating Guarantor Statements of Cash Flows
 
 
Nine Months Ended September 30, 2013
 
 
Parent
 
Guarantors
 
Non-guarantors
 
Consolidating Adjustments
 
Consolidated
Net cash provided by operating activities
 
$
19,717

 
$
16,424

 
$
74,197

 
$
(13,819
)
 
$
96,519

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 

Capital expenditures
 
(622
)
 
(65,845
)
 
(65,183
)
 

 
(131,650
)
Proceeds from sale of long-lived assets
 

 
3

 
1,045

 

 
1,048

Proceeds from the sale of interest in SemCrude Pipeline, L.L.C. to Rose Rock Midstream L.P.
 
189,500

 

 

 
(189,500
)
 

Investments in non-consolidated subsidiaries
 
(18,775
)
 
(28,031
)
 
(96,657
)
 

 
(143,463
)
Payments to acquire businesses
 

 
(306,232
)
 
(49,969
)
 

 
(356,201
)
Distributions in excess of equity in earnings of affiliates
 
5,541

 

 
7,550

 

 
13,091

Net cash provided by (used in) investing activities
 
175,644


(400,105
)

(203,214
)

(189,500
)
 
(617,175
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 

Debt issuance costs
 
(9,037
)
 

 
(2,828
)
 

 
(11,865
)
Borrowings on credit facilities
 
575,000

 

 
353,474

 

 
928,474

Principal payments on credit facilities and other obligations
 
(321,500
)
 

 
(272,903
)
 

 
(594,403
)
Proceeds from issuance of Rose Rock Midstream, L.P. common units, net of offering costs
 

 

 
210,226

 

 
210,226

Distributions to noncontrolling interests
 

 

 
(11,458
)
 

 
(11,458
)
Proceeds from warrant exercises
 
225

 

 

 

 
225

Repurchase of stock-based awards for payment of statutory taxes due on stock-based compensation
 
(371
)
 

 

 

 
(371
)
Dividends paid
 
(16,387
)
 

 

 

 
(16,387
)
Intercompany borrowings (advances), net
 
(432,703
)
 
383,681

 
(154,107
)
 
203,129

 

Net cash provided by (used in) financing activities
 
(204,773
)
 
383,681


122,404


203,129

 
504,441

Effect of exchange rate changes on cash and cash equivalents
 

 

 
904

 

 
904

Change in cash and cash equivalents
 
(9,412
)
 


(5,709
)

(190
)
 
(15,311
)
Cash and cash equivalents at beginning of period
 
19,123

 

 
63,844

 
(2,938
)
 
80,029

Cash and cash equivalents at end of period
 
$
9,711

 
$


$
58,135


$
(3,128
)
 
$
64,718


 
 
Nine Months Ended September 30, 2012
 
 
Parent
 
Guarantors
 
Non-guarantors
 
Consolidating Adjustments
 
Consolidated
Net cash provided by (used in) operating activities
 
$
(4,374
)
 
$
11,105

 
$
58,353

 
$
(13,326
)
 
$
51,758

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
Capital expenditures
 
(1,621
)
 
(41,706
)
 
(38,796
)
 

 
(82,123
)
Proceeds from sale of long-lived assets
 

 
12

 
335

 

 
347

Investments in non-consolidated subsidiaries
 
(1,740
)
 
(62,464
)
 
205

 

 
(63,999
)
Proceeds from the sale of non-consolidated affiliate
 

 

 
3,500

 

 
3,500

Distributions in excess of equity in earnings of affiliates
 
5,062

 

 
5,507

 

 
10,569

Net cash provided by (used in) investing activities
 
1,701

 
(104,158
)

(29,249
)


 
(131,706
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 

Debt issuance costs
 
(455
)
 

 
(239
)
 

 
(694
)
Borrowings on credit facilities
 
184,000

 

 
76,500

 

 
260,500

Principal payments on credit facilities and other obligations
 
(76,500
)
 

 
(102,501
)
 

 
(179,001
)
Distributions to noncontrolling interests
 

 

 
(5,754
)
 

 
(5,754
)
Repurchase of stock-based awards for payment of statutory taxes due on stock-based compensation
 
(242
)
 

 

 

 
(242
)
Intercompany borrowing (advances), net
 
(98,381
)
 
93,053

 
(8,086
)
 
13,414

 

Net cash provided by (used in) financing activities
 
8,422

 
93,053


(40,080
)

13,414

 
74,809

Effect of exchange rate changes on cash and cash equivalents
 

 

 
(977
)
 

 
(977
)
Change in cash and cash equivalents
 
5,749

 


(11,953
)

88

 
(6,116
)
Change in cash and cash equivalents included in discontinued operations
 

 

 
(36
)
 

 
(36
)
Change in cash and cash equivalents from continuing operations
 
5,749

 


(11,989
)

88

 
(6,152
)
Cash and cash equivalents at beginning of period
 
111

 

 
76,264

 
(2,762
)
 
73,613

Cash and cash equivalents at end of period
 
$
5,860

 
$


$
64,275


$
(2,674
)
 
$
67,461

Rose Rock Midstream, L.P. (Details 1)
3 Months Ended
Sep. 30, 2013
Minimum Quarterly Distributions [Member]
 
Quarterly Target Distributions
 
Marginal Percentage Interest, Unitholders
98.00% 
Marginal Percentage Interest, General Partner
2.00% 
Marginal Percentage Interest, Incentive Distribution Rights
0.00% 
Minimum Quarterly Distributions [Member] |
Minimum [Member]
 
Quarterly Target Distributions
 
Quarterly Distributions, Per Unit Target Amounts
0.3625 
First Target Distribution [Member]
 
Quarterly Target Distributions
 
Marginal Percentage Interest, Unitholders
98.00% 
Marginal Percentage Interest, General Partner
2.00% 
Marginal Percentage Interest, Incentive Distribution Rights
0.00% 
First Target Distribution [Member] |
Minimum [Member]
 
Quarterly Target Distributions
 
Quarterly Distributions, Per Unit Target Amounts
0.3625 
First Target Distribution [Member] |
Maximum [Member]
 
Quarterly Target Distributions
 
Quarterly Distributions, Per Unit Target Amounts
0.416875 
Second Target Distribution [Member]
 
Quarterly Target Distributions
 
Marginal Percentage Interest, Unitholders
85.00% 
Marginal Percentage Interest, General Partner
2.00% 
Marginal Percentage Interest, Incentive Distribution Rights
13.00% 
Second Target Distribution [Member] |
Minimum [Member]
 
Quarterly Target Distributions
 
Quarterly Distributions, Per Unit Target Amounts
0.416875 
Second Target Distribution [Member] |
Maximum [Member]
 
Quarterly Target Distributions
 
Quarterly Distributions, Per Unit Target Amounts
0.453125 
Third Target Distribution [Member]
 
Quarterly Target Distributions
 
Marginal Percentage Interest, Unitholders
75.00% 
Marginal Percentage Interest, General Partner
2.00% 
Marginal Percentage Interest, Incentive Distribution Rights
23.00% 
Third Target Distribution [Member] |
Minimum [Member]
 
Quarterly Target Distributions
 
Quarterly Distributions, Per Unit Target Amounts
0.453125 
Third Target Distribution [Member] |
Maximum [Member]
 
Quarterly Target Distributions
 
Quarterly Distributions, Per Unit Target Amounts
0.54375 
Thereafter [Member]
 
Quarterly Target Distributions
 
Marginal Percentage Interest, Unitholders
50.00% 
Marginal Percentage Interest, General Partner
2.00% 
Marginal Percentage Interest, Incentive Distribution Rights
48.00% 
Thereafter [Member] |
Minimum [Member]
 
Quarterly Target Distributions
 
Quarterly Distributions, Per Unit Target Amounts
0.54375 
Rose Rock Midstream, L.P. (Details 2) (USD $)
In Thousands, except Per Share data, unless otherwise specified
0 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended 0 Months Ended
Feb. 13, 2012
Distribution of Q4 2011 earnings (pro-rated) [Member]
Sep. 30, 2013
Distribution of Q4 2011 earnings (pro-rated) [Member]
Feb. 13, 2012
Distribution of Q4 2011 earnings (pro-rated) [Member]
SemGroup [Member]
Common Units [Member]
Feb. 13, 2012
Distribution of Q4 2011 earnings (pro-rated) [Member]
SemGroup [Member]
Subordinated Units [Member]
Feb. 13, 2012
Distribution of Q4 2011 earnings (pro-rated) [Member]
Noncontrolling Interest [Member]
Feb. 13, 2012
Distribution of Q4 2011 earnings (pro-rated) [Member]
SemGroup [Member]
May 15, 2012
Distribution of Q1 2012 earnings [Member]
Sep. 30, 2013
Distribution of Q1 2012 earnings [Member]
May 15, 2012
Distribution of Q1 2012 earnings [Member]
SemGroup [Member]
Common Units [Member]
May 15, 2012
Distribution of Q1 2012 earnings [Member]
SemGroup [Member]
Subordinated Units [Member]
May 15, 2012
Distribution of Q1 2012 earnings [Member]
Noncontrolling Interest [Member]
May 15, 2012
Distribution of Q1 2012 earnings [Member]
SemGroup [Member]
Aug. 14, 2012
Distribution of Q2 2012 earnings [Member]
Sep. 30, 2013
Distribution of Q2 2012 earnings [Member]
Aug. 14, 2012
Distribution of Q2 2012 earnings [Member]
SemGroup [Member]
Common Units [Member]
Aug. 14, 2012
Distribution of Q2 2012 earnings [Member]
SemGroup [Member]
Subordinated Units [Member]
Aug. 14, 2012
Distribution of Q2 2012 earnings [Member]
Noncontrolling Interest [Member]
Aug. 14, 2012
Distribution of Q2 2012 earnings [Member]
SemGroup [Member]
Nov. 14, 2012
Distribution of Q3 2012 earnings [Member]
Sep. 30, 2013
Distribution of Q3 2012 earnings [Member]
Nov. 14, 2012
Distribution of Q3 2012 earnings [Member]
SemGroup [Member]
Common Units [Member]
Nov. 14, 2012
Distribution of Q3 2012 earnings [Member]
SemGroup [Member]
Subordinated Units [Member]
Nov. 14, 2012
Distribution of Q3 2012 earnings [Member]
Noncontrolling Interest [Member]
Nov. 14, 2012
Distribution of Q3 2012 earnings [Member]
SemGroup [Member]
Nov. 14, 2012
Distribution of Q3 2012 earnings [Member]
SemGroup [Member]
Feb. 14, 2013
Distribution of Q4 2012 earnings [Member]
Sep. 30, 2013
Distribution of Q4 2012 earnings [Member]
Feb. 14, 2013
Distribution of Q4 2012 earnings [Member]
SemGroup [Member]
Common Units [Member]
Feb. 14, 2013
Distribution of Q4 2012 earnings [Member]
SemGroup [Member]
Subordinated Units [Member]
Feb. 14, 2013
Distribution of Q4 2012 earnings [Member]
Noncontrolling Interest [Member]
Feb. 14, 2013
Distribution of Q4 2012 earnings [Member]
SemGroup [Member]
May 15, 2013
Distribution of Q1 2013 earnings [Member]
Sep. 30, 2013
Distribution of Q1 2013 earnings [Member]
May 15, 2013
Distribution of Q1 2013 earnings [Member]
SemGroup [Member]
Common Units [Member]
May 15, 2013
Distribution of Q1 2013 earnings [Member]
SemGroup [Member]
Subordinated Units [Member]
May 15, 2013
Distribution of Q1 2013 earnings [Member]
Noncontrolling Interest [Member]
May 15, 2013
Distribution of Q1 2013 earnings [Member]
SemGroup [Member]
Aug. 14, 2013
Distribution of Q2 2013 earnings [Member]
Sep. 30, 2013
Distribution of Q2 2013 earnings [Member]
Aug. 14, 2013
Distribution of Q2 2013 earnings [Member]
SemGroup [Member]
Common Units [Member]
Aug. 14, 2013
Distribution of Q2 2013 earnings [Member]
SemGroup [Member]
Subordinated Units [Member]
Aug. 14, 2013
Distribution of Q2 2013 earnings [Member]
Noncontrolling Interest [Member]
Aug. 14, 2013
Distribution of Q2 2013 earnings [Member]
SemGroup [Member]
Nov. 14, 2013
Distribution of Q3 2013 earnings [Member]
Sep. 30, 2013
Distribution of Q3 2013 earnings [Member]
Nov. 14, 2013
Distribution of Q3 2013 earnings [Member]
SemGroup [Member]
Common Units [Member]
Nov. 14, 2013
Distribution of Q3 2013 earnings [Member]
SemGroup [Member]
Subordinated Units [Member]
Nov. 14, 2013
Distribution of Q3 2013 earnings [Member]
Noncontrolling Interest [Member]
Nov. 14, 2013
Distribution of Q3 2013 earnings [Member]
SemGroup [Member]
Distributions paid or to be paid
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distribution per unit
$ 0.0670 1
 
 
 
 
 
$ 0.3725 
 
 
 
 
 
$ 0.3825 
 
 
 
 
 
$ 0.3925 
 
 
 
 
 
 
$ 0.4025 
 
 
 
 
 
$ 0.4300 
 
 
 
 
 
$ 0.4400 
 
 
 
 
 
 
 
 
 
 
 
Record Date
 
Feb. 03, 2012 
 
 
 
 
 
May 07, 2012 
 
 
 
 
 
Aug. 06, 2012 
 
 
 
 
 
Nov. 05, 2012 
 
 
 
 
 
 
Feb. 04, 2013 
 
 
 
 
 
May 06, 2013 
 
 
 
 
 
Aug. 05, 2013 
 
 
 
 
 
Nov. 05, 2013 
 
 
 
 
Distribution Date
 
Feb. 13, 2012 
 
 
 
 
 
May 15, 2012 
 
 
 
 
 
Aug. 14, 2012 
 
 
 
 
 
Nov. 14, 2012 
 
 
 
 
 
 
Feb. 14, 2013 
 
 
 
 
 
May 15, 2013 
 
 
 
 
 
Aug. 14, 2013 
 
 
 
 
 
Nov. 14, 2013 
 
 
 
 
Distribution Made to Limited Partner, Distributions Declared, Per Unit
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 0.4500 2
 
 
 
 
 
Managing Member or General Partner, Subsequent Distribution Amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 232 
General partner distributions
 
 
 
 
 
23 
 
 
 
 
 
128 
 
 
 
 
 
131 
 
 
 
 
 
134 
 
 
 
 
 
 
167 
 
 
 
 
 
179 
 
 
 
 
 
183 
 
 
 
 
 
 
Incentive distributions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
41 
 
 
 
 
 
72 
 
 
 
 
 
127 
Limited partner distributions
 
 
93 
561 
470 
 
 
 
517 
3,125 
2,607 
 
 
 
532 
3,209 
2,678 
 
 
 
545 
3,294 
2,748 
 
 
 
 
1,163 
3,377 
3,624 
 
 
 
1,242 
3,607 
3,872 
 
 
 
1,271 
3,692 
3,962 
 
 
 
 
 
 
 
Distribution Made to Limited Partner, Cash Distributions Declared
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,301 
3,775 
6,189 
 
Partners' Capital Account, Distributions
$ 1,147 
 
 
 
 
 
$ 6,377 
 
 
 
 
 
$ 6,550 
 
 
 
 
 
$ 6,721 
 
 
 
 
 
 
$ 8,331 
 
 
 
 
 
$ 8,941 
 
 
 
 
 
$ 9,180 
 
 
 
 
 
$ 11,624 
 
 
 
 
 
Rose Rock Midstream, L.P. (Details 3) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Summarized Balance Sheet Information
 
 
Other current assets
$ 15,167 
$ 18,516 
Property, plant and equipment, net
1,057,116 
814,724 
Equity method investment
518,149 
387,802 
Goodwill
60,676 
9,884 
Other noncurrent assets, net
32,603 
8,181 
Total assets
2,390,402 
1,748,179 
Current liabilities
447,636 
374,344 
Long-term debt
540,043 
206,062 
Total liabilities and owners' equity
2,390,402 
1,748,179 
Rose Rock Midstream, L.P. [Member]
 
 
Summarized Balance Sheet Information
 
 
Cash
1,914 
108 
Other current assets
292,386 
250,509 
Property, plant and equipment, net
313,193 
291,530 
Equity method investment
77,449 
Goodwill
27,261 
Other noncurrent assets, net
10,536 
2,579 
Total assets
722,739 
544,726 
Current liabilities
254,491 
231,843 
Long-term debt
85,043 
4,562 
Partners' capital attributable to parent
130,845 
179,187 
Partners' capital attributable to noncontrolling interest
252,360 
129,134 
Total liabilities and owners' equity
$ 722,739 
$ 544,726 
Rose Rock Midstream, L.P. (Details 4) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Summarized Income Statement Information
 
 
 
 
Revenue
$ 357,748 
$ 277,852 
$ 969,688 
$ 921,660 
Cost of products sold
255,554 
189,830 
680,632 
651,283 
Depreciation and amortization
16,113 
12,081 
41,563 
35,687 
Earnings from equity method investments
7,483 
3,116 
39,689 
22,903 
Net income
3,135 
(432)
59,213 
8,921 
Rose Rock Midstream, L.P. [Member]
 
 
 
 
Summarized Income Statement Information
 
 
 
 
Revenue
181,831 
131,554 
514,485 
468,687 
Cost of products sold
157,550 
111,790 
446,507 
412,847 
Operating, general and administrative expenses
12,394 
9,779 
30,434 
25,976 
Depreciation and amortization
4,130 
3,066 
11,327 
9,032 
Earnings from equity method investments
3,527 
10,431 
Net income
$ 9,411 
$ 6,469 
$ 30,539 
$ 19,353 
Rose Rock Midstream, L.P. (Details Textual) (USD $)
3 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended 3 Months Ended 0 Months Ended 3 Months Ended 0 Months Ended 0 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2013
mi
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Semcrude Pipeline [Member]
Jan. 11, 2013
SemCrude Pipeline [Member]
Jan. 11, 2013
Rose Rock Midstream, L.P. [Member]
Sep. 30, 2013
Rose Rock Midstream, L.P. [Member]
Mar. 31, 2013
Rose Rock Midstream, L.P. [Member]
Semcrude Pipeline [Member]
Jan. 11, 2013
Rose Rock Midstream, L.P. [Member]
Common Units [Member]
Sep. 30, 2013
Rose Rock Midstream, L.P. [Member]
Common Units [Member]
Jan. 11, 2013
Rose Rock Midstream, L.P. [Member]
Class A [Member]
Sep. 30, 2013
Rose Rock Midstream, L.P. [Member]
Class A [Member]
Sep. 30, 2013
Rose Rock Midstream, L.P. [Member]
Subordinated Units [Member]
Jan. 11, 2013
Rose Rock Midstream, L.P. [Member]
Private Placement [Member]
Jan. 11, 2013
Rose Rock Midstream, L.P. [Member]
Private Placement [Member]
Common Units [Member]
Jan. 11, 2013
White Cliffs Pipeline, L.L.C. [Member]
bbl
Sep. 30, 2013
White Cliffs Pipeline, L.L.C. [Member]
mi
Sep. 30, 2013
SemCrude Pipeline [Member]
Jan. 11, 2013
SemCrude Pipeline [Member]
White Cliffs Pipeline, L.L.C. [Member]
Jan. 11, 2013
Revolving Credit Facility [Member]
Rose Rock Midstream, L.P. [Member]
Sep. 30, 2013
Revolving Credit Facility [Member]
Rose Rock Midstream, L.P. [Member]
Jan. 13, 2013
Revolving Credit Facility [Member]
Rose Rock Midstream, L.P. [Member]
Dec. 31, 2012
Revolving Credit Facility [Member]
Rose Rock Credit Facility [Member]
Rose Rock Midstream, L.P. [Member]
Sep. 30, 2013
Limited Partner [Member]
Rose Rock Midstream, L.P. [Member]
Sep. 30, 2013
General Partner [Member]
Rose Rock Midstream, L.P. [Member]
Sep. 30, 2013
General Partner [Member]
Rose Rock Midstream, L.P. [Member]
Sep. 30, 2013
Noncontrolling Interest [Member]
Sep. 30, 2013
Additional Paid-In Capital [Member]
Subsidiary (Textual) [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common units representing limited partner interests
 
 
 
 
 
 
 
 
 
2,900,000 
 
1,250,000 
8,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Partners' minimum quarterly distribution per unit
$ 0.3625 
$ 0.3625 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Partners' Capital Account, Units, Sold in Public Offering
 
 
 
 
 
 
 
 
 
4,750,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from Noncontrolling Interests
$ 152,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity Method Investment, Ownership Percentage
 
 
 
33.00% 
 
 
 
 
 
 
 
 
 
 
 
 
17.00% 
33.00% 
51.00% 
 
 
 
 
 
 
 
 
 
Length Of Pipeline Network
210 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
527 
 
 
 
 
 
 
 
 
 
 
 
Gain (Loss) on Sale of Equity Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sale of interest in equity investment to related party
 
33,716,000 1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
90,516,000 1
(56,800,000)1
Tax effect of adjustment to APIC from sale of equity investment to less than wholly owned subsidiary
 
33,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from Issuance of Private Placement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Cost of Acquired Entity, Cash Paid
 
143,463,000 
63,999,000 
 
 
 
 
189,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock Issued During Period, Shares, New Issues
 
 
 
 
 
 
 
 
1,500,000 
 
1,250,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average daily throughput threshold in barrels for conversion of Class A units
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
125,000 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from Issuance of Common Stock
 
 
 
 
 
 
 
 
 
 
 
 
 
59,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of Credit Facility, Current Borrowing Capacity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
385,000,000 
150,000,000 
 
 
 
 
 
Proceeds from Lines of Credit
 
 
 
 
 
133,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
133,500,000 
 
 
 
 
 
 
 
 
General Partner Ownership Interest
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.00% 
2.00% 
 
 
Transaction related costs
 
1,400,000 
 
 
 
 
3,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Limited Partnership Unit Issuance Costs, Incurred
 
 
 
 
 
 
1,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
46.70% 
 
 
 
 
Debt Issuance Cost
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,600,000 
 
 
 
 
 
 
 
Business Combination, Acquisition Related Costs
 
 
 
 
 
 
$ 500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments in Non-Consolidated Subsidiaries Investments in Non-Consolidated Subsidiaries (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Equity method investments
$ 518,149 
$ 387,802 
White Cliffs Pipeline L L C [Member]
 
 
Equity method investments
228,076 
138,970 
NGL Energy Partners LP [Member]
 
 
Equity method investments
187,632 
174,398 
Glass Mountain Pipeline Llc [Member]
 
 
Equity method investments
$ 102,441 
$ 74,434 
Investments in Non-Consolidated Subsidiaries Investments in Non-Consolidated Subsidiaries (Details 1) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Earnings from equity method investments
$ 7,483 
$ 3,116 
$ 39,689 
$ 22,903 
White Cliffs Pipeline L L C [Member]
 
 
 
 
Earnings from equity method investments
10,786 
10,021 
31,886 
25,053 
NGL Energy Partners LP [Member]
 
 
 
 
Earnings from equity method investments
(3,288)
(6,905)
7,828 
(2,150)
Glass Mountain Pipeline Llc [Member]
 
 
 
 
Earnings from equity method investments
$ (15)
$ 0 
$ (25)
$ 0 
Investments in Non-Consolidated Subsidiaries Investments in Non-Consolidated Subsidiaries (Details 2) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Proceeds from Equity Method Investment, Dividends or Distributions
 
 
$ 39,714 
$ 25,053 
White Cliffs Pipeline L L C [Member]
 
 
 
 
Proceeds from Equity Method Investment, Dividends or Distributions
12,755 
10,794 
39,436 
30,561 
NGL Energy Partners LP [Member]
 
 
 
 
Proceeds from Equity Method Investment, Dividends or Distributions
4,671 
2,090 
13,369 
5,063 
Glass Mountain Pipeline Llc [Member]
 
 
 
 
Proceeds from Equity Method Investment, Dividends or Distributions
Return of and return on capital [Member]
 
 
 
 
Proceeds from Equity Method Investment, Dividends or Distributions
$ 17,426 
$ 12,884 
$ 52,805 
$ 35,624 
Investments in Non-Consolidated Subsidiaries (Details 3) (White Cliffs Pipeline L L C [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
White Cliffs Pipeline L L C [Member]
 
 
 
 
Summarized income statement information
 
 
 
 
Equity Method Investment, Summarized Financial Information, Revenue
$ 31,453 
$ 28,522 
$ 92,238 
$ 76,910 
Equity Method Investment, Summarized Financial Information, Operating, General and Administrative Expenses
5,141 
3,857 
14,433 
11,382 
Equity Method Investment, Summarized Financial Information, Depreciation and Amortization Expense
4,720 
4,995 
14,150 
14,964 
Equity Method Investment, Summarized Financial Information, Net Income (Loss)
$ 21,579 
$ 19,670 
$ 63,642 
$ 50,564 
Investments in Non-Consolidated Subsidiaries Investments in Non-Consolidated Subsidiaries (Details 4) (NGL Energy Partners LP [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Mar. 31, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
NGL Energy Partners LP [Member]
 
 
 
 
Summarized income statement information
 
 
 
 
Equity Method Investment, Summarized Financial Information, Revenue
$ 1,385,957 
$ 326,436 
$ 4,341,778 
$ 1,236,023 
Cost of Goods Sold
1,303,076 
298,985 
3,989,511 
1,128,581 
Equity Method Investment, Summarized Financial Information, Operating, General and Administrative Expenses
67,499 
33,298 
206,824 
76,015 
Equity Method Investment, Summarized Financial Information, Depreciation and Amortization Expense
22,724 
9,227 
68,989 
21,260 
Equity Method Investment, Summarized Financial Information, Net Income (Loss)
$ (17,508)
$ (24,710)
$ 45,310 
$ (4,678)
Investments in Non-Consolidated Subsidiaries (Details Textual) (USD $)
3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 3 Months Ended 9 Months Ended 14 Months Ended 3 Months Ended 9 Months Ended 17 Months Ended
Sep. 30, 2013
mi
Sep. 30, 2012
Sep. 30, 2013
Width
Sep. 30, 2012
Sep. 30, 2013
White Cliffs Pipeline, L.L.C. [Member]
Sep. 30, 2012
White Cliffs Pipeline, L.L.C. [Member]
Sep. 30, 2013
White Cliffs Pipeline, L.L.C. [Member]
mi
Sep. 30, 2012
White Cliffs Pipeline, L.L.C. [Member]
Sep. 30, 2013
General Partner [Member]
NGL Energy Partners LP [Member]
Mar. 31, 2013
General Partner [Member]
NGL Energy Partners LP [Member]
Sep. 30, 2013
NGL Energy Partners LP [Member]
Jun. 30, 2013
NGL Energy Partners LP [Member]
Mar. 31, 2013
NGL Energy Partners LP [Member]
Limited Partner Interests [Member]
Sep. 30, 2013
White Cliffs Pipeline, L.L.C. [Member]
Semcrude Pipeline [Member]
Sep. 30, 2013
White Cliffs Pipeline, L.L.C. [Member]
Semcrude Pipeline [Member]
Sep. 30, 2013
White Cliffs Pipeline, L.L.C. [Member]
Semcrude Pipeline [Member]
Sep. 30, 2013
Glass Mountain Pipeline Llc [Member]
Sep. 30, 2012
Glass Mountain Pipeline Llc [Member]
Sep. 30, 2013
Glass Mountain Pipeline Llc [Member]
Sep. 30, 2013
Glass Mountain Pipeline Llc [Member]
May 31, 2012
Glass Mountain Pipeline Llc [Member]
Sep. 30, 2013
Pipeline expansion [Member]
White Cliffs Pipeline, L.L.C. [Member]
Semcrude Pipeline [Member]
Equity method investment, ownership percentage
 
 
 
 
 
 
51.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest
 
 
 
 
 
 
 
 
 
 
 
 
17.00% 
 
 
 
 
 
 
 
 
 
Width of pipeline in inches
 
 
12 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total expected project costs
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 300,000,000 
$ 300,000,000 
$ 300,000,000 
 
 
 
 
 
 
Partners' Capital Account, Contributions
 
 
 
 
 
 
 
 
 
 
 
 
 
35,900,000 
95,500,000 
97,800,000 
6,700,000 
 
28,000,000 
102,400,000 
 
 
Estimated Project Contributions in Year Two
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,500,000 
 
3,500,000 
3,500,000 
 
53,300,000 
General and administrative
20,952,000 
16,680,000 
54,887,000 
53,073,000 
500,000 
1,200,000 
1,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common units
 
 
 
 
 
 
 
 
 
 
9,133,409 
 
 
 
 
 
 
 
 
 
 
 
Percentage of ownership interest
 
 
 
 
17.00% 
 
17.00% 
 
 
 
 
 
 
51.00% 
51.00% 
51.00% 
50.00% 
 
50.00% 
50.00% 
25.00% 
 
Common units representing limited partner interests
 
 
 
 
 
 
 
 
 
 
 
53,622,659 
 
 
 
 
 
 
 
 
 
 
General Partner Ownership Interest
 
 
 
 
 
 
 
 
11.78% 
11.78% 
 
 
 
 
 
 
 
 
 
 
 
 
Fair market value of common units
 
 
 
 
 
 
 
 
 
 
281,700,000 
 
 
 
 
 
 
 
 
 
 
 
Share Price
$ 57.02 
 
$ 57.02 
 
 
 
 
 
 
 
$ 30.84 
 
 
 
 
 
 
 
 
 
 
 
Length Of Pipeline Network
210 
 
 
 
 
 
527 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity Method Investment, Additional Ownership Percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
25.00% 
 
 
 
 
Additional cash capital contribution, year one
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 26,500,000 
 
$ 26,500,000 
$ 26,500,000 
 
 
Segments (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Segment Reporting Information
 
 
 
 
 
Revenue
$ 357,748 
$ 277,852 
$ 969,688 
$ 921,660 
 
Costs of products sold, exclusive of depreciation and amortization shown below
255,554 
189,830 
680,632 
651,283 
 
Operating
52,360 
52,367 
162,813 
172,750 
 
General and administrative
20,952 
16,680 
54,887 
53,073 
 
Depreciation and amortization
16,113 
12,081 
41,563 
35,687 
 
Loss (gain) on disposal of long-lived assets, net
408 
(3,615)
(130)
(3,496)
 
Total expenses
345,387 
267,343 
939,765 
909,297 
 
Earnings from equity method investments
7,483 
3,116 
39,689 
22,903 
 
Operating income
19,844 
13,625 
69,612 
35,266 
 
Other expenses (income), net
13,294 
11,701 
51,769 
24,904 
 
Income (loss) from continuing operations before income taxes
6,550 
1,924 
17,843 
10,362 
 
Total assets (excluding intersegment receivables)
2,390,402 
 
2,390,402 
 
1,748,179 
Crude [Member]
 
 
 
 
 
Segment Reporting Information
 
 
 
 
 
Revenue
181,831 
131,616 
514,485 
468,748 
 
Costs of products sold, exclusive of depreciation and amortization shown below
157,550 
111,790 
446,507 
412,847 
 
Operating
9,098 
6,042 
20,527 
17,957 
 
General and administrative
3,360 
5,015 
10,778 
9,796 
 
Depreciation and amortization
4,130 
3,066 
11,327 
9,032 
 
Loss (gain) on disposal of long-lived assets, net
(3,500)
(25)
(3,444)
 
Total expenses
174,138 
122,413 
489,114 
446,188 
 
Earnings from equity method investments
10,771 
10,021 
31,861 
25,053 
 
Operating income
18,464 
19,224 
57,232 
47,613 
 
Other expenses (income), net
3,634 
(119)
10,925 
(739)
 
Income (loss) from continuing operations before income taxes
14,830 
19,343 
46,307 
48,352 
 
Total assets (excluding intersegment receivables)
1,012,535 
 
1,012,535 
 
 
SemStream [Member]
 
 
 
 
 
Segment Reporting Information
 
 
 
 
 
Revenue
   
 
Costs of products sold, exclusive of depreciation and amortization shown below
33 
 
Operating
(18)
 
General and administrative
114 
528 
430 
582 
 
Depreciation and amortization
 
Loss (gain) on disposal of long-lived assets, net
 
Total expenses
114 
535 
437 
597 
 
Earnings from equity method investments
(3,288)
(6,905)
7,828 
(2,150)
 
Operating income
(3,402)
(7,440)
7,391 
(2,740)
 
Other expenses (income), net
(1,238)
(2,551)
(3,399)
(2,507)
 
Income (loss) from continuing operations before income taxes
(2,164)
(4,889)
10,790 
(233)
 
Total assets (excluding intersegment receivables)
187,632 
 
187,632 
 
 
SemCAMS [Member]
 
 
 
 
 
Segment Reporting Information
 
 
 
 
 
Revenue
48,979 
54,301 
151,219 
169,149 
 
Costs of products sold, exclusive of depreciation and amortization shown below
106 
309 
290 
499 
 
Operating
33,980 
40,081 
116,372 
135,165 
 
General and administrative
3,446 
3,354 
10,933 
10,404 
 
Depreciation and amortization
2,631 
2,664 
7,925 
7,910 
 
Loss (gain) on disposal of long-lived assets, net
 
Total expenses
40,163 
46,408 
135,520 
153,978 
 
Earnings from equity method investments
 
Operating income
8,816 
7,893 
15,699 
15,171 
 
Other expenses (income), net
4,720 
3,419 
14,179 
13,974 
 
Income (loss) from continuing operations before income taxes
4,096 
4,474 
1,520 
1,197 
 
Total assets (excluding intersegment receivables)
320,431 
 
320,431 
 
 
SemGas [Member]
 
 
 
 
 
Segment Reporting Information
 
 
 
 
 
Revenue
65,795 
29,878 
151,460 
89,452 
 
Costs of products sold, exclusive of depreciation and amortization shown below
48,403 
24,068 
111,141 
70,607 
 
Operating
5,436 
2,931 
13,869 
9,092 
 
General and administrative
1,923 
1,329 
5,112 
4,564 
 
Depreciation and amortization
4,992 
1,797 
9,353 
5,153 
 
Loss (gain) on disposal of long-lived assets, net
679 
(3)
673 
(3)
 
Total expenses
61,433 
30,122 
140,148 
89,413 
 
Earnings from equity method investments
 
Operating income
4,362 
(244)
11,312 
39 
 
Other expenses (income), net
880 
(378)
2,149 
924 
 
Income (loss) from continuing operations before income taxes
3,482 
134 
9,163 
(885)
 
Total assets (excluding intersegment receivables)
510,129 
 
510,129 
 
 
SemLogistics [Member]
 
 
 
 
 
Segment Reporting Information
 
 
 
 
 
Revenue
2,169 
2,213 
7,827 
8,610 
 
Costs of products sold, exclusive of depreciation and amortization shown below
97 
196 
 
Operating
1,616 
1,436 
5,303 
4,521 
 
General and administrative
1,679 
990 
4,285 
4,249 
 
Depreciation and amortization
2,334 
2,388 
6,987 
7,040 
 
Loss (gain) on disposal of long-lived assets, net
 
Total expenses
5,629 
4,911 
16,575 
16,006 
 
Earnings from equity method investments
 
Operating income
(3,460)
(2,698)
(8,748)
(7,396)
 
Other expenses (income), net
(217)
337 
896 
1,805 
 
Income (loss) from continuing operations before income taxes
(3,243)
(3,035)
(9,644)
(9,201)
 
Total assets (excluding intersegment receivables)
167,741 
 
167,741 
 
 
SemMexico [Member]
 
 
 
 
 
Segment Reporting Information
 
 
 
 
 
Revenue
65,549 
62,095 
160,375 
193,229 
 
Costs of products sold, exclusive of depreciation and amortization shown below
56,070 
55,817 
138,372 
174,636 
 
Operating
2,230 
1,870 
6,741 
6,033 
 
General and administrative
2,510 
1,501 
7,175 
6,730 
 
Depreciation and amortization
1,529 
1,536 
4,467 
4,614 
 
Loss (gain) on disposal of long-lived assets, net
(271)
(112)
(784)
(49)
 
Total expenses
62,068 
60,612 
155,971 
191,964 
 
Earnings from equity method investments
 
Operating income
3,481 
1,483 
4,404 
1,265 
 
Other expenses (income), net
(21)
(82)
(339)
233 
 
Income (loss) from continuing operations before income taxes
3,502 
1,565 
4,743 
1,032 
 
Total assets (excluding intersegment receivables)
95,317 
 
95,317 
 
 
Corporate and Other [Member]
 
 
 
 
 
Segment Reporting Information
 
 
 
 
 
Revenue
(6,575)
(2,251)
(15,678)
(7,535)
 
Costs of products sold, exclusive of depreciation and amortization shown below
(6,575)
(2,251)
(15,678)
(7,535)
 
Operating
   
 
General and administrative
7,920 
3,963 
16,174 
16,748 
 
Depreciation and amortization
497 
630 
1,504 
1,938 
 
Loss (gain) on disposal of long-lived assets, net
 
Total expenses
1,842 
2,342 
2,000 
11,151 
 
Earnings from equity method investments
 
Operating income
(8,417)
(4,593)
(17,678)
(18,686)
 
Other expenses (income), net
5,536 
11,075 
27,358 
11,214 
 
Income (loss) from continuing operations before income taxes
(13,953)
(15,668)
(45,036)
(29,900)
 
Total assets (excluding intersegment receivables)
96,617 
 
96,617 
 
 
Operating Segments [Member]
 
 
 
 
 
Segment Reporting Information
 
 
 
 
 
Revenue
357,748 
277,852 
969,688 
921,660 
 
Operating Segments [Member] |
Crude [Member]
 
 
 
 
 
Segment Reporting Information
 
 
 
 
 
Revenue
181,831 
131,616 
514,485 
468,748 
 
Operating Segments [Member] |
SemStream [Member]
 
 
 
 
 
Segment Reporting Information
 
 
 
 
 
Revenue
 
Operating Segments [Member] |
SemCAMS [Member]
 
 
 
 
 
Segment Reporting Information
 
 
 
 
 
Revenue
48,979 
54,301 
151,219 
169,149 
 
Operating Segments [Member] |
SemGas [Member]
 
 
 
 
 
Segment Reporting Information
 
 
 
 
 
Revenue
59,220 
27,627 
135,782 
81,917 
 
Operating Segments [Member] |
SemLogistics [Member]
 
 
 
 
 
Segment Reporting Information
 
 
 
 
 
Revenue
2,169 
2,213 
7,827 
8,610 
 
Operating Segments [Member] |
SemMexico [Member]
 
 
 
 
 
Segment Reporting Information
 
 
 
 
 
Revenue
65,549 
62,095 
160,375 
193,229 
 
Operating Segments [Member] |
Corporate and Other [Member]
 
 
 
 
 
Segment Reporting Information
 
 
 
 
 
Revenue
   
 
Intersegment Eliminations [Member]
 
 
 
 
 
Segment Reporting Information
 
 
 
 
 
Revenue
 
Intersegment Eliminations [Member] |
Crude [Member]
 
 
 
 
 
Segment Reporting Information
 
 
 
 
 
Revenue
 
Intersegment Eliminations [Member] |
SemStream [Member]
 
 
 
 
 
Segment Reporting Information
 
 
 
 
 
Revenue
 
Intersegment Eliminations [Member] |
SemCAMS [Member]
 
 
 
 
 
Segment Reporting Information
 
 
 
 
 
Revenue
 
Intersegment Eliminations [Member] |
SemGas [Member]
 
 
 
 
 
Segment Reporting Information
 
 
 
 
 
Revenue
6,575 
2,251 
15,678 
7,535 
 
Intersegment Eliminations [Member] |
SemLogistics [Member]
 
 
 
 
 
Segment Reporting Information
 
 
 
 
 
Revenue
 
Intersegment Eliminations [Member] |
SemMexico [Member]
 
 
 
 
 
Segment Reporting Information
 
 
 
 
 
Revenue
 
Intersegment Eliminations [Member] |
Corporate and Other [Member]
 
 
 
 
 
Segment Reporting Information
 
 
 
 
 
Revenue
$ (6,575)
$ (2,251)
$ (15,678)
$ (7,535)
 
Segments (Details Textual) (Customer Concentration Risk [Member])
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2013
Customer Concentration Risk [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Concentration Risk, Percentage
13.00% 
10.00% 
Number of customers accounting for in excess of 10% of revenue
 
Inventories (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Components of Inventories
 
 
Crude oil
$ 32,720 
$ 24,840 
Asphalt and other
13,889 
9,593 
Total Inventories
$ 46,609 
$ 34,433 
Financial Instruments (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Fair Value of Financial Assets and Liabilities
 
 
Total assets
$ 725 
    
Total liabilities
46,350 
33,892 
Net assets (liabilities) at fair value
(45,625)
(33,892)
Level 1 [Member]
 
 
Fair Value of Financial Assets and Liabilities
 
 
Total assets
857 
22 
Total liabilities
46,482 
33,914 
Net assets (liabilities) at fair value
(45,625)
(33,892)
Netting [Member]
 
 
Fair Value of Financial Assets and Liabilities
 
 
Total assets
(132)1
(22)1
Total liabilities
(132)1
(22)1
Net assets (liabilities) at fair value
   1
   1
Commodity Derivatives [Member]
 
 
Fair Value of Financial Assets and Liabilities
 
 
Total assets
725 
Total liabilities
1,034 
Commodity Derivatives [Member] |
Level 1 [Member]
 
 
Fair Value of Financial Assets and Liabilities
 
 
Total assets
857 
22 
Total liabilities
132 
1,056 
Commodity Derivatives [Member] |
Netting [Member]
 
 
Fair Value of Financial Assets and Liabilities
 
 
Total assets
(132)1
(22)1
Total liabilities
(132)1
(22)1
Warrants [Member]
 
 
Fair Value of Financial Assets and Liabilities
 
 
Total liabilities
46,350 
32,858 
Warrants [Member] |
Level 1 [Member]
 
 
Fair Value of Financial Assets and Liabilities
 
 
Total liabilities
46,350 
32,858 
Warrants [Member] |
Netting [Member]
 
 
Fair Value of Financial Assets and Liabilities
 
 
Total liabilities
   1
   1
Financial Instruments (Details 2)
3 Months Ended 9 Months Ended
Sep. 30, 2013
bbl
Sep. 30, 2012
bbl
Sep. 30, 2013
bbl
Sep. 30, 2012
bbl
Sales [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Derivative, Nonmonetary Notional Amount, Volume
695,000 
470,000 
2,025,000 
1,153,000 
Purchases [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Derivative, Nonmonetary Notional Amount, Volume
805,000 
380,000 
2,095,000 
1,066,000 
Financial Instruments (Details 3) (Commodity Contract [Member], USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Other Current Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Asset
$ 725 
$ 0 
Other Current Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Liability
$ 0 
$ 1,034 
Financial Instruments (Details 4) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Schedule of Realized and Unrealized Gains (Losses) from Commodity Derivatives
 
 
 
 
Realized and unrealized gains (losses) from commodity derivatives
$ (1,652)
$ (631)
$ (2,430)
$ (342)
Financial Instruments Fair Value Disclosures (Details Textual) (USD $)
9 Months Ended
Sep. 30, 2013
Dec. 31, 2012
Financial Instruments [Abstract]
 
 
Level 2 and level 3 fair value transactions
$ 0 
 
Derivative Asset, Fair Value, Net
600,000 
800,000 
Margin Deposit Assets
$ (100,000)
$ 1,900,000 
Income Taxes (Details Textual) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Income Taxes (Textual) [Abstract]
 
 
 
 
U.S. federal statutory rate
 
 
35.00% 
 
Valuation Allowance, Deferred Tax Asset, Change in Amount
 
 
$ (50.9)
 
Effective Income Tax Rate, Continuing Operations
52.00% 
109.00% 
(231.00%)
10.00% 
Semcrude Pipeline [Member]
 
 
 
 
Income Taxes (Textual) [Abstract]
 
 
 
 
Equity Method Investment, Ownership Percentage
33.00% 
 
33.00% 
 
Foreign Tax Authority [Member]
 
 
 
 
Income Taxes (Textual) [Abstract]
 
 
 
 
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount
$ 3.3 
 
 
 
Long-Term Debt (Details) (USD $)
Sep. 30, 2013
Dec. 31, 2012
Debt Instrument [Line Items]
 
 
Senior Notes
$ 300,000,000 
$ 0 
Line of Credit Facility [Abstract]
 
 
Capital leases
69,000 
86,000 
Total long-term debt
540,069,000 
206,086,000 
less: current portion of long-term debt
26,000 
24,000 
Noncurrent portion of long-term debt
540,043,000 
206,062,000 
SemMexico [Member]
 
 
Line of Credit Facility [Abstract]
 
 
Borrowings
Corporate [Member]
 
 
Line of Credit Facility [Abstract]
 
 
Borrowings
155,000,000 
201,500,000 
Revolving Credit Facility [Member] |
SemMexico [Member]
 
 
Line of Credit Facility [Abstract]
 
 
Borrowings
 
Revolving Credit Facility [Member] |
Corporate [Member]
 
 
Line of Credit Facility [Abstract]
 
 
Borrowings
155,000,000 
 
Rose Rock Midstream L P [Member]
 
 
Line of Credit Facility [Abstract]
 
 
Borrowings
85,000,000 
4,500,000 
Noncurrent portion of long-term debt
$ 85,043,000 
$ 4,562,000 
Long-Term Debt Long-Term Debt (Details 1)
9 Months Ended
Sep. 30, 2013
2016 Redemption [Member]
 
Early redemption premium
105.625% 
2017 Redemption [Member]
 
Early redemption premium
103.75% 
2018 Redemption [Member]
 
Early redemption premium
101.875% 
2019 Redemption and Thereafter
 
Early redemption premium
100.00% 
Long-Term Debt (Details Textual)
9 Months Ended 3 Months Ended 9 Months Ended 9 Months Ended 1 Months Ended 3 Months Ended 9 Months Ended 9 Months Ended 0 Months Ended 3 Months Ended 0 Months Ended 3 Months Ended 9 Months Ended 9 Months Ended
Sep. 30, 2013
USD ($)
Sep. 30, 2012
USD ($)
Dec. 31, 2012
USD ($)
Sep. 30, 2013
Senior Notes [Member]
USD ($)
Sep. 30, 2013
Senior Notes [Member]
USD ($)
Sep. 30, 2013
sale of stock [Member]
Sep. 30, 2013
Registration Payment Arrangement, Arrangement [Domain]
Sep. 30, 2013
Registration Payment Arrangement, Arrangement [Domain]
Minimum [Member]
Sep. 30, 2013
Registration Payment Arrangement, Arrangement [Domain]
Maximum [Member]
Sep. 30, 2013
Corporate [Member]
USD ($)
Dec. 31, 2012
Corporate [Member]
USD ($)
Sep. 30, 2013
Corporate [Member]
Letter of Credit [Member]
USD ($)
Sep. 30, 2013
Corporate [Member]
Letter of Credit [Member]
Maximum [Member]
USD ($)
May 31, 2013
Corporate [Member]
Revolving Credit Facility [Member]
USD ($)
Sep. 30, 2013
Corporate [Member]
Revolving Credit Facility [Member]
USD ($)
Sep. 30, 2012
Corporate [Member]
Revolving Credit Facility [Member]
USD ($)
Sep. 30, 2013
Corporate [Member]
Revolving Credit Facility [Member]
USD ($)
Sep. 30, 2012
Corporate [Member]
Revolving Credit Facility [Member]
USD ($)
May 3, 2013
Corporate [Member]
Revolving Credit Facility [Member]
USD ($)
Apr. 22, 2013
Corporate [Member]
Revolving Credit Facility [Member]
USD ($)
Sep. 30, 2013
Corporate [Member]
Revolving Credit Facility [Member]
Maximum [Member]
USD ($)
Sep. 30, 2013
SemMexico [Member]
USD ($)
Dec. 31, 2012
SemMexico [Member]
USD ($)
Sep. 30, 2013
SemMexico [Member]
Letter of Credit [Member]
USD ($)
Sep. 30, 2013
SemMexico [Member]
Letter of Credit [Member]
MXN ($)
Sep. 30, 2013
SemMexico [Member]
Revolving Credit Facility [Member]
USD ($)
Sep. 30, 2013
SemMexico [Member]
Revolving Credit Facility [Member]
MXN ($)
Sep. 30, 2013
SemMexico [Member]
Revolving Credit Agreements [Member]
Additional Credit Agreement [Member]
USD ($)
Sep. 30, 2013
SemMexico [Member]
Revolving Credit Agreements [Member]
Additional Credit Agreement [Member]
MXN ($)
Jan. 11, 2013
Rose Rock Midstream L P [Member]
USD ($)
Sep. 30, 2013
Rose Rock Midstream L P [Member]
USD ($)
Dec. 31, 2012
Rose Rock Midstream L P [Member]
USD ($)
Sep. 30, 2013
Rose Rock Midstream L P [Member]
Bilateral Letter of Credit [Member]
USD ($)
Sep. 30, 2013
Rose Rock Midstream L P [Member]
Letter of Credit [Member]
USD ($)
Jan. 11, 2013
Rose Rock Midstream L P [Member]
Revolving Credit Facility [Member]
USD ($)
Sep. 30, 2013
Rose Rock Midstream L P [Member]
Revolving Credit Facility [Member]
USD ($)
Sep. 30, 2012
Rose Rock Midstream L P [Member]
Revolving Credit Facility [Member]
USD ($)
Sep. 30, 2013
Rose Rock Midstream L P [Member]
Revolving Credit Facility [Member]
USD ($)
Sep. 30, 2012
Rose Rock Midstream L P [Member]
Revolving Credit Facility [Member]
USD ($)
Jan. 13, 2013
Rose Rock Midstream L P [Member]
Revolving Credit Facility [Member]
USD ($)
Sep. 30, 2013
Rose Rock Midstream L P [Member]
Revolving Credit Facility [Member]
Eurodollar Rate Borrowings [Member]
USD ($)
Sep. 30, 2013
Rose Rock Midstream L P [Member]
Revolving Credit Facility [Member]
Alternate Base Rate Borrowings [Member]
USD ($)
Sep. 30, 2013
Rose Rock Midstream L P [Member]
Revolving Credit Facility [Member]
Minimum [Member]
Sep. 30, 2013
Rose Rock Midstream L P [Member]
Revolving Credit Facility [Member]
Maximum [Member]
Sep. 30, 2013
Rose Rock Midstream L P [Member]
1.75% Letter of Credit [Member]
Bilateral Letter of Credit [Member]
USD ($)
Sep. 30, 2013
Rose Rock Midstream L P [Member]
2.0% Letter of Credit [Member]
Bilateral Letter of Credit [Member]
USD ($)
Sep. 30, 2013
Rose Rock Midstream L P [Member]
Debt issuance [Member]
Subordinated Debt [Member]
USD ($)
Sep. 30, 2013
Semcrude Pipeline [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior Notes
$ 300,000,000 
 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Interest Rate, Stated Percentage
 
 
 
7.50% 
7.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from Issuance of Senior Long-term Debt
294,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior Notes Redemable Prior to June 15, 2016
35.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Early Redemption Premium on Senior Notes Redeemed Prior to June 15, 2016
1.00% 
 
 
 
 
107.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basis point adjustment to discount rate
50 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Redemption premium on senior notes in the event of a change in control
101.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate increase
 
 
 
 
 
 
0.25% 
0.25% 
1.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense recorded
 
 
 
6,000,000 
7,100,000 
 
 
 
 
 
 
 
 
 
2,300,000 
1,700,000 
5,000,000 
4,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,900,000 
500,000 
6,100,000 
1,400,000 
 
 
 
 
 
 
 
 
 
Unamortized debt costs
 
 
 
6,400,000 
6,400,000 
 
 
 
 
 
 
 
 
 
4,800,000 
 
4,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,700,000 
 
3,700,000 
 
 
 
 
 
 
 
 
 
 
Maximum borrowing capacity
 
 
 
 
 
 
 
 
 
 
 
 
250,000,000 
 
500,000,000 
 
500,000,000 
 
 
 
500,000,000 
 
 
 
 
3,300,000 
44,000,000 
4,300,000 
56,000,000 
 
 
 
 
 
 
 
 
 
 
385,000,000 
 
 
 
 
 
 
 
 
Borrowings outstanding
 
 
 
 
 
 
 
 
 
155,000,000 
201,500,000 
 
 
 
155,000,000 
 
155,000,000 
 
 
 
 
 
 
 
 
 
85,000,000 
4,500,000 
 
 
 
 
 
 
 
 
30,000,000 
55,000,000 
 
 
 
 
 
 
Letters of credit outstanding
 
 
 
 
 
 
 
 
 
 
 
4,500,000 
 
 
 
 
 
 
 
 
 
 
 
22,300,000 
292,800,000 
 
 
 
 
 
 
 
7,600,000 
31,800,000 
 
 
 
 
 
 
 
 
 
 
600,000 
7,000,000 
 
 
Interest rate in effect
 
 
 
 
 
 
 
 
 
 
 
3.25% 
 
 
5.50% 
 
5.50% 
 
 
 
 
 
 
0.50% 
0.50% 
 
 
 
 
 
 
 
 
2.25% 
 
 
 
 
 
 
2.53% 
4.50% 
 
 
1.75% 
2.00% 
 
 
Percentage of line of credit facility fronting fee
 
 
 
 
 
 
 
 
 
 
 
0.25% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.25% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commitment fee on unused capacity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.375% 
0.50% 
 
 
 
 
Line of Credit Facility, Maximum Borrowing Incremental Increases
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
300,000,000 
100,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
200,000,000 
 
200,000,000 
 
 
 
 
 
 
 
 
 
 
Senior Unsecured Indebtedness Threshold
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
200,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of Credit Facility, Incremental Increase
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
200,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from Lines of Credit
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
133,500,000 
 
 
 
 
133,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity Method Investment, Ownership Percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
33.00% 
Debt Issuance Cost
 
 
 
 
 
 
 
 
 
 
 
 
 
2,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,600,000 
 
 
 
 
 
 
 
 
 
 
Minimum aggregate issuance to elect alternative financial covenants
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
200,000,000 
 
Margin added to Prime Rate to determine effective interest rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.00% 
2.00% 
1.70% 
1.70% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Costs Capitalized
2,900,000 
200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt, Fair Value
$ 306,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commitments and Contingencies (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
bbl
Fixed Price Sales [Member]
 
Summary Of Purchase And Sale Commitments
 
Sale commitments, Volume (barrels)
330,000 
Sale commitments, Value
$ 34,749 
Floating Price Sales [Member]
 
Summary Of Purchase And Sale Commitments
 
Sale commitments, Volume (barrels)
18,600,000 
Sale commitments, Value
1,814,662 
Fixed Price Purchases [Member]
 
Summary Of Purchase And Sale Commitments
 
Purchase commitments, Volume (barrels)
202,000 
Purchase commitments, Value
20,324 
Floating Price Purchases [Member]
 
Summary Of Purchase And Sale Commitments
 
Purchase commitments, Volume (barrels)
18,016,000 
Purchase commitments, Value
$ 1,781,247 
Commitments and Contingencies (Details Textual) (USD $)
3 Months Ended 3 Months Ended 3 Months Ended
Sep. 30, 2013
sites
Dec. 31, 2012
Aug. 18, 2011
Sem Crude [Member]
bbl
Sep. 30, 2013
Crude [Member]
sites
Sep. 30, 2013
SemGas [Member]
sites
Sep. 30, 2013
SemCAMS [Member]
Sep. 30, 2013
Minimum [Member]
Sep. 30, 2013
Maximum [Member]
Sep. 30, 2013
Capacity [Member]
SemGas [Member]
Sep. 30, 2013
Commitments [Member]
SemGas [Member]
Commitments and Contingencies (Textual) [Abstract]
 
 
 
 
 
 
 
 
 
 
Loss contingency claims, number of barrels of crude oil claimed to be owed
 
 
141,000 
 
 
 
 
 
 
 
Site contingency number of sites checked
 
 
 
 
 
 
 
Number of sites requiring remediation and water contamination as per phase two investigations
 
 
 
 
 
 
 
 
 
Accrued liability, estimated fines and environmental contributions
 
 
 
 
 
$ 400,000 
 
 
 
 
Asset retirement obligation liability
 
 
 
 
 
42,100,000 
 
 
 
 
Estimated cost to retire facilities
 
 
 
 
 
104,600,000 
 
 
 
 
Notice required to cancel purchase agreements, days
 
 
 
 
 
 
30 days 
120 days 
 
 
Due under the contract
81,509,000 
63,831,000 
 
 
 
 
 
 
 
25,800 
Future obligations
 
 
 
 
 
 
 
 
$ 88,200,000 
 
Equity (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
SemGroup owners' equity:
 
 
 
 
Beginning Balance
 
 
$ 1,021,528 
 
Net income (loss) attributable to SemGroup
3,135 
(432)
59,213 
8,921 
Other comprehensive income (loss), net of income taxes
6,105 
12,072 
(4,307)
14,930 
Distributions to noncontrolling interests
 
 
(11,458)
 
Noncontrolling interest, increase from equity issuance
 
 
210,226 
 
Sale of interest in equity investment to related party
 
 
(33,716)1
 
Stock issued during period from warrant exercises
 
 
23,758 
 
Dividends
 
 
(16,387)
 
Dividends, Share-based Compensation, Cash
 
 
(80)
 
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition
 
 
5,311 
 
Issuance of common stock under compensation plans
 
 
 
Repurchase of common stock
 
 
(371)
 
Ending Balance
1,253,717 
 
1,253,717 
 
Common Stock [Member]
 
 
 
 
SemGroup owners' equity:
 
 
 
 
Beginning Balance
 
 
420 
 
Net income (loss) attributable to SemGroup
 
 
 
Other comprehensive income (loss), net of income taxes
 
 
 
Distributions to noncontrolling interests
 
 
 
Noncontrolling interest, increase from equity issuance
 
 
 
Sale of interest in equity investment to related party
 
 
1
 
Stock issued during period from warrant exercises
 
 
 
Dividends
 
 
 
Dividends, Share-based Compensation, Cash
 
 
 
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition
 
 
 
Issuance of common stock under compensation plans
 
 
 
Repurchase of common stock
 
 
 
Ending Balance
425 
 
425 
 
Additional Paid-In Capital [Member]
 
 
 
 
SemGroup owners' equity:
 
 
 
 
Beginning Balance
 
 
1,039,189 
 
Net income (loss) attributable to SemGroup
 
 
 
Other comprehensive income (loss), net of income taxes
 
 
 
Distributions to noncontrolling interests
 
 
 
Noncontrolling interest, increase from equity issuance
 
 
 
Sale of interest in equity investment to related party
 
 
56,800 1
 
Stock issued during period from warrant exercises
 
 
23,754 
 
Dividends
 
 
(16,387)
 
Dividends, Share-based Compensation, Cash
 
 
(47)
 
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition
 
 
4,733 
 
Issuance of common stock under compensation plans
 
 
(1)
 
Repurchase of common stock
 
 
 
Ending Balance
1,108,041 
 
1,108,041 
 
Treasury Stock [Member]
 
 
 
 
SemGroup owners' equity:
 
 
 
 
Beginning Balance
 
 
(242)
 
Net income (loss) attributable to SemGroup
 
 
 
Other comprehensive income (loss), net of income taxes
 
 
 
Distributions to noncontrolling interests
 
 
 
Noncontrolling interest, increase from equity issuance
 
 
 
Sale of interest in equity investment to related party
 
 
1
 
Stock issued during period from warrant exercises
 
 
 
Dividends
 
 
 
Dividends, Share-based Compensation, Cash
 
 
 
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition
 
 
 
Issuance of common stock under compensation plans
 
 
 
Repurchase of common stock
 
 
(371)
 
Ending Balance
(613)
 
(613)
 
Accumulated Deficit [Member]
 
 
 
 
SemGroup owners' equity:
 
 
 
 
Beginning Balance
 
 
(145,674)
 
Net income (loss) attributable to SemGroup
 
 
44,784 
 
Other comprehensive income (loss), net of income taxes
 
 
 
Distributions to noncontrolling interests
 
 
 
Noncontrolling interest, increase from equity issuance
 
 
 
Sale of interest in equity investment to related party
 
 
1
 
Stock issued during period from warrant exercises
 
 
 
Dividends
 
 
 
Dividends, Share-based Compensation, Cash
 
 
 
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition
 
 
 
Issuance of common stock under compensation plans
 
 
 
Repurchase of common stock
 
 
 
Ending Balance
(100,890)
 
(100,890)
 
Accumulated Other Comprehensive Income (Loss) [Member]
 
 
 
 
SemGroup owners' equity:
 
 
 
 
Beginning Balance
 
 
(1,299)
 
Net income (loss) attributable to SemGroup
 
 
 
Other comprehensive income (loss), net of income taxes
 
 
(4,307)
 
Distributions to noncontrolling interests
 
 
 
Noncontrolling interest, increase from equity issuance
 
 
 
Sale of interest in equity investment to related party
 
 
1
 
Stock issued during period from warrant exercises
 
 
 
Dividends
 
 
 
Dividends, Share-based Compensation, Cash
 
 
 
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition
 
 
 
Issuance of common stock under compensation plans
 
 
 
Repurchase of common stock
 
 
 
Ending Balance
(5,606)
 
(5,606)
 
Noncontrolling Interest [Member]
 
 
 
 
SemGroup owners' equity:
 
 
 
 
Beginning Balance
 
 
129,134 
 
Net income (loss) attributable to SemGroup
 
 
14,429 
 
Other comprehensive income (loss), net of income taxes
 
 
 
Distributions to noncontrolling interests
 
 
(11,458)
 
Noncontrolling interest, increase from equity issuance
 
 
210,226 
 
Sale of interest in equity investment to related party
 
 
(90,516)1
 
Stock issued during period from warrant exercises
 
 
 
Dividends
 
 
 
Dividends, Share-based Compensation, Cash
 
 
(33)
 
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition
 
 
578 
 
Issuance of common stock under compensation plans
 
 
 
Repurchase of common stock
 
 
 
Ending Balance
$ 252,360 
 
$ 252,360 
 
Equity (Details 1) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Other Comprehensive Income (Loss), Net of Tax
$ 6,105 
$ 12,072 
$ (4,307)
$ 14,930 
Components of Accumulated Other Comprehensive Loss
 
 
 
 
Beginning Balance
 
 
(1,299)
 
Currency translation adjustments
 
 
(4,444)
 
Changes related to benefit plans, net of income tax expense of $46
 
 
137 
 
Ending Balance
(5,606)
 
(5,606)
 
Currency Translation [Member]
 
 
 
 
Components of Accumulated Other Comprehensive Loss
 
 
 
 
Beginning Balance
 
 
1,855 
 
Currency translation adjustments
 
 
(4,444)
 
Changes related to benefit plans, net of income tax expense of $46
 
 
 
Ending Balance
(2,589)
 
(2,589)
 
Employee Benefit Plans [Member]
 
 
 
 
Components of Accumulated Other Comprehensive Loss
 
 
 
 
Beginning Balance
 
 
(3,154)
 
Currency translation adjustments
 
 
 
Changes related to benefit plans, net of income tax expense of $46
 
 
137 
 
Ending Balance
$ (3,017)
 
$ (3,017)
 
Equity (Details 2) (USD $)
In Thousands, except Share data, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Schedule of Common Stock Reflected On The Condensed Consolidated Balance Sheet
 
 
Total shares
42,530,641 
 
Par value per share
$ 0.01 
 
Common stock
$ 425 
$ 420 
Shares Issued On Emergence Date [Member]
 
 
Schedule of Common Stock Reflected On The Condensed Consolidated Balance Sheet
 
 
Total shares
40,882,496 
 
Shares Subsequently Issued In Settlement Of Pre-Petition Claims [Member]
 
 
Schedule of Common Stock Reflected On The Condensed Consolidated Balance Sheet
 
 
Total shares
226,016 
 
Remaining Shares Required To Be Issued In Settlement Of Pre-Petition Claims [Member]
 
 
Schedule of Common Stock Reflected On The Condensed Consolidated Balance Sheet
 
 
Total shares
291,484 
 
Issuance of Shares Under Employee and Director Compensation Programs [Member]
 
 
Schedule of Common Stock Reflected On The Condensed Consolidated Balance Sheet
 
 
Total shares
689,320 1
 
Shares Issued Upon Exercise Of Warrants [Member]
 
 
Schedule of Common Stock Reflected On The Condensed Consolidated Balance Sheet
 
 
Total shares
441,325 
 
Equity (Details 3) (USD $)
Sep. 30, 2013
Warrants and Rights Note Disclosure [Abstract]
 
Total warrants
1,360,823 
Fair value per warrant
$ 34.06 
Warrant value included within other noncurrent liabilities
$ 46,349,631.38 
Warrants Issued On Emergence Date [Member]
 
Warrants and Rights Note Disclosure [Abstract]
 
Total warrants
1,634,210 
Warrants Subsequently Issued In Settlement Of Pre-Petition Claims [Member]
 
Warrants and Rights Note Disclosure [Abstract]
 
Total warrants
237,897 
Remaining Warrants To Be Issued In Settlement Of Pre-Petition Claims [Member]
 
Warrants and Rights Note Disclosure [Abstract]
 
Total warrants
306,840 
Warrants Exercised [Member]
 
Warrants and Rights Note Disclosure [Abstract]
 
Total warrants
818,124 1
Equity (Details Textual) (USD $)
In Thousands, except Share data, unless otherwise specified
1 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 9 Months Ended
May 30, 2013
Nov. 19, 2013
Sep. 30, 2013
Sep. 30, 2013
Employee Stock Purchase Plan[Member]
Sep. 30, 2013
Warrants Issued On Emergence Date [Member]
Sep. 30, 2013
Warrants Subsequently Issued In Settlement Of Pre-Petition Claims [Member]
Sep. 30, 2013
Class A [Member]
Sep. 30, 2013
Class B [Member]
Sep. 30, 2013
Shares Issued On Emergence Date [Member]
Sep. 30, 2013
Shares Subsequently Issued In Settlement Of Pre-Petition Claims [Member]
Sep. 30, 2013
Issuance of Shares Under Employee and Director Compensation Programs [Member]
Sep. 30, 2013
Warrant [Member]
Sep. 30, 2013
Semcrude Pipeline [Member]
Sep. 30, 2013
2013 Q2 [Member]
Sep. 30, 2013
2013 Q3 [Member] [Member]
Sep. 30, 2013
2013 Q4 [Member]
Equity [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common Stock, Dividends, Per Share, Declared
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 0.21 
Dividends Payable, Date to be Paid
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dec. 03, 2013 
EQUITY (Textual) [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity Method Investment, Ownership Percentage
 
 
 
 
 
 
 
 
 
 
 
 
33.00% 
 
 
 
Income tax expense, related to change in benefit plans
 
 
$ 46 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock shares issued
 
 
42,530,641 
 
 
 
 
 
40,882,496 
226,016 
689,320 1
 
 
 
 
 
Shares To Be Issued To Settle Prepetition Claims
 
 
 
 
 
 
 
 
 
517,500 
 
 
 
 
 
 
Vested common stock
 
 
 
 
 
 
 
 
 
 
105,738 
 
 
 
 
 
Shares of vested stock awards sold back to satisfy tax obligations
 
 
8,591 
 
 
 
 
 
 
 
 
 
 
 
 
 
Par value per share
 
 
$ 0.01 
 
 
 
$ 0.01 
$ 0.01 
 
 
 
 
 
 
 
 
Common stock shares authorized
 
 
 
 
 
 
90,000,000 
10,000,000 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period
 
 
201,451 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Potentialy Vest
 
 
141,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred Compensation Liability, Classified, Noncurrent
 
 
$ 78 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of Class A shares equal to unvested dividend rights
 
 
1,366 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share Price
 
 
$ 57.02 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number
 
 
534,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value
 
 
$ 52.78 
 
 
 
 
 
 
 
 
 
 
 
 
 
Warrants issued
 
 
1,360,823 
 
1,634,210 
237,897 
 
 
 
 
 
 
 
 
 
 
Class of Warrant or Right, To Be Issued
 
 
 
 
 
544,737 
 
 
 
 
 
 
 
 
 
 
Warrants exercised during period
 
 
772,817 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock Issued During Period, Shares, Conversion of Convertible Securities
 
 
 
 
 
 
 
 
 
 
 
425,618 
 
 
 
 
Price of purchase of one share of common stock against warrant
 
 
25 
 
 
 
 
 
 
 
 
 
 
 
 
 
Limitation on ESPP shares per employee per offering period
 
 
 
12,500 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Purchase Date
 
 
 
85.00% 
 
 
 
 
 
 
 
 
 
 
 
 
Common Stock, Capital Shares Reserved for Future Issuance
 
 
 
1,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Common Stock, Dividends, Per Share, Cash Paid
$ 0.19 
$ 0.20 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends Payable, Date of Record
 
 
 
 
 
 
 
 
 
 
 
 
 
May 20, 2013 
Aug. 19, 2013 
Nov. 22, 2013 
Dividends Payable, Date Declared
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nov. 06, 2013 
Earnings Per Share (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Basic earnings per share
 
 
 
 
Income (loss)
$ 3,137 
$ (167)
$ 59,148 
$ 9,377 
Income (loss) from discontinued operations, net of income taxes
(2)
(265)
65 
(456)
Net income
3,135 
(432)
59,213 
8,921 
Less: net income attributable to noncontrolling interests
5,054 
2,336 
14,429 
7,915 
Numerator
(1,919)
(2,768)
44,784 
1,006 
Common stock issued and to be issued pursuant to Plan of Reorganization
41,400 
41,400 
41,400 
41,400 
Weighted average common stock outstanding issued under compensation plans and warrant exercises
1,128 
549 
874 
530 
Denominator, Net, Basic
42,528 
41,949 
42,274 
41,930 
Basic earnings (loss) per share, Net
$ (0.05)
$ (0.07)
$ 1.06 
$ 0.02 
Continuing Operations [Member]
 
 
 
 
Basic earnings per share
 
 
 
 
Income (loss)
3,137 
(167)
59,148 
9,377 
Less: net income attributable to noncontrolling interests
5,054 
2,336 
14,429 
7,915 
Numerator
(1,917)
(2,503)
44,719 
1,462 
Common stock issued and to be issued pursuant to Plan of Reorganization
41,400 
41,400 
41,400 
41,400 
Weighted average common stock outstanding issued under compensation plans and warrant exercises
1,128 
549 
874 
530 
Denominator, Net, Basic
42,528 
41,949 
42,274 
41,930 
Basic earnings per share, Continuing Operations
$ (0.05)
$ (0.06)
$ 1.06 
$ 0.03 
Discontinued Operations [Member]
 
 
 
 
Basic earnings per share
 
 
 
 
Income (loss) from discontinued operations, net of income taxes
(2)
(265)
65 
(456)
Less: net income attributable to noncontrolling interests
Numerator
$ (2)
$ (265)
$ 65 
$ (456)
Common stock issued and to be issued pursuant to Plan of Reorganization
41,400 
41,400 
41,400 
41,400 
Weighted average common stock outstanding issued under compensation plans and warrant exercises
1,128 
549 
874 
530 
Denominator, Net, Basic
42,528 
41,949 
42,274 
41,930 
Basic earnings per share, Discontinued Operations
$ 0.00 
$ (0.01)
$ 0.00 
$ (0.01)
Earnings Per Share (Details 1) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Diluted earnings per share
 
 
 
 
Income (loss)
$ 3,137 
$ (167)
$ 59,148 
$ 9,377 
Income (loss) from discontinued operations, net of income taxes
(2)
(265)
65 
(456)
Net income
3,135 
(432)
59,213 
8,921 
Less: net income attributable to noncontrolling interests
5,054 
2,336 
14,429 
7,915 
Numerator
(1,919)
(2,768)
44,784 
1,006 
Common stock issued and to be issued pursuant to Plan of Reorganization
41,400 
41,400 
41,400 
41,400 
Weighted average common stock outstanding issued under compensation plans and warrant exercises
1,128 
549 
874 
530 
Effect of dilutive securities
   
270 
252 
Denominator, Net, Diluted
42,528 
41,949 
42,544 
42,182 
Diluted earnings (loss) per share, Net
$ (0.05)
$ (0.07)
$ 1.05 
$ 0.02 
Continuing Operations [Member]
 
 
 
 
Diluted earnings per share
 
 
 
 
Income (loss)
3,137 
(167)
59,148 
9,377 
Less: net income attributable to noncontrolling interests
5,054 
2,336 
14,429 
7,915 
Numerator
(1,917)
(2,503)
44,719 
1,462 
Common stock issued and to be issued pursuant to Plan of Reorganization
41,400 
41,400 
41,400 
41,400 
Weighted average common stock outstanding issued under compensation plans and warrant exercises
1,128 
549 
874 
530 
Effect of dilutive securities
   
270 
252 
Denominator, Net, Diluted
42,528 
41,949 
42,544 
42,182 
Diluted earnings per share, Continuing Operations
$ (0.05)
$ (0.06)
$ 1.05 
$ 0.03 
Discontinued Operations [Member]
 
 
 
 
Diluted earnings per share
 
 
 
 
Income (loss) from discontinued operations, net of income taxes
(2)
(265)
65 
(456)
Less: net income attributable to noncontrolling interests
Numerator
$ (2)
$ (265)
$ 65 
$ (456)
Common stock issued and to be issued pursuant to Plan of Reorganization
41,400 
41,400 
41,400 
41,400 
Weighted average common stock outstanding issued under compensation plans and warrant exercises
1,128 
549 
874 
530 
Effect of dilutive securities
   
270 
252 
Denominator, Net, Diluted
42,528 
41,949 
42,544 
42,182 
Diluted earnings per share, Discontinued Operations
$ 0.00 
$ (0.01)
$ 0.00 
$ (0.01)
Earnings Per Share (Details Textual) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Earnings Per Share (Textual) [Abstract]
 
 
 
 
Expense on the change in the fair value of the warrants
$ 4.8 
$ 9.5 
$ 37.0 
$ 17.1 
Supplemental Cash Flow Information (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Components of operating assets and liabilities
 
 
Decrease (increase) in restricted cash
$ 451 
$ 4,691 
Decrease (increase) in accounts receivable
(30,977)
(116,987)
Decrease (increase) in receivable from affiliates
(6,861)
622 
Decrease (increase) in inventories
(13,983)
(1,804)
Decrease (increase) in derivatives and margin deposits
1,972 
457 
Decrease (increase) in other current assets
2,269 
8,393 
Decrease (increase) in other assets
258 
2,457 
Increase (decrease) in accounts payable and accrued liabilities
50,614 
97,638 
Increase (decrease) in payable to affiliates
2,102 
(5,160)
Increase (decrease) in payables to pre-petition creditors
(416)
(4,541)
Increase (decrease) in other noncurrent liabilities
(1,349)
2,942 
Total changes in operating assets and liabilities
$ 4,080 
$ (11,292)
Supplemental Cash Flow Information Supplemental Cash Flow Information (Details Textual) (USD $)
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Sale of interest in equity investment to related party
$ 33,716,000 1
 
 
Tax effect of adjustment to APIC from sale of equity investment to less than wholly owned subsidiary
33,700,000 
 
 
Warrants exercised during period
772,817 
 
 
Proceeds from warrant exercises
225,000 
 
Interest Paid
7,300,000 
4,400,000 
 
Income Taxes Paid, Net
6,600,000 
5,500,000 
 
Capital Expenditures Incurred but Not yet Paid
16,400,000 
7,000,000 
 
Accrued liabilities
81,509,000 
 
63,831,000 
Noncontrolling Interest [Member]
 
 
 
Sale of interest in equity investment to related party
90,516,000 1
 
 
Additional Paid-in Capital [Member]
 
 
 
Sale of interest in equity investment to related party
(56,800,000)1
 
 
Warrant [Member]
 
 
 
Stock Issued During Period, Shares, Conversion of Convertible Securities
425,618 
 
 
Adjustments to Additional Paid in Capital, Other
23,500,000 
 
 
Semcrude Pipeline [Member]
 
 
 
Equity Method Investment, Ownership Percentage
33.00% 
 
 
Goodwill related to unpaid invoices representing purchase price adjustments [Member]
 
 
 
Accrued liabilities
$ 9,000,000 
 
 
Related Party Transactions (Details) (NGL Energy [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
NGL Energy [Member]
 
 
 
 
Related Party Transaction
 
 
 
 
Revenues
$ 31,043 
$ 14,395 
$ 66,367 
$ 41,945 
Related Party Transaction, Purchases from Related Party
8,018 
6,009 
8,018 
36,573 
Reimbursements from NGL Energy for transition services
$ 60 
$ 28 
$ 156 
$ 526 
Related Party Transactions (Details Textual) (USD $)
3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2013
High Sierra Crude Oil and Marketing, LLC [Member]
Sep. 30, 2012
High Sierra Crude Oil and Marketing, LLC [Member]
Sep. 30, 2013
High Sierra Crude Oil and Marketing, LLC [Member]
Sep. 30, 2012
High Sierra Crude Oil and Marketing, LLC [Member]
Sep. 30, 2013
White Cliffs Pipeline, L.L.C. [Member]
Sep. 30, 2012
White Cliffs Pipeline, L.L.C. [Member]
Sep. 30, 2013
White Cliffs Pipeline, L.L.C. [Member]
Sep. 30, 2012
White Cliffs Pipeline, L.L.C. [Member]
Sep. 30, 2013
Law Firm [Member]
Sep. 30, 2012
Law Firm [Member]
Sep. 30, 2013
Law Firm [Member]
Sep. 30, 2012
Law Firm [Member]
Sep. 30, 2013
Glass Mountain Holding LLC [Member]
Glass Mountain Pipeline Llc [Member]
Sep. 30, 2013
Glass Mountain Holding LLC [Member]
Glass Mountain Pipeline Llc [Member]
May 31, 2012
Glass Mountain Holding LLC [Member]
Glass Mountain Pipeline Llc [Member]
Sep. 30, 2013
White Cliffs Pipeline, L.L.C. [Member]
Law Firm [Member]
Sep. 30, 2012
White Cliffs Pipeline, L.L.C. [Member]
Law Firm [Member]
Sep. 30, 2013
White Cliffs Pipeline, L.L.C. [Member]
Law Firm [Member]
Sep. 30, 2012
White Cliffs Pipeline, L.L.C. [Member]
Law Firm [Member]
Related Party Transactions (Textual) [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$ 15,700,000 
$ 12,400,000 
$ 68,600,000 
$ 23,400,000 
$ 800,000 
$ 600,000 
$ 2,100,000 
$ 1,800,000 
 
 
 
 
$ 100,000 
$ 400,000 
 
 
 
 
 
Related Party Transaction, Purchases from Related Party
6,500,000 
16,300,000 
34,700,000 
32,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Legal fees
 
 
 
 
 
 
 
 
600,000 
500,000 
1,600,000 
1,200,000 
 
 
 
68,000 
9,900 
79,600 
56,100 
Due from Related Parties
 
 
 
 
 
 
 
 
 
 
 
 
 
 
900,000 
 
 
 
 
Future earnings from related party under management agreement
 
 
 
 
 
 
 
 
 
 
 
 
$ 100,000 
$ 100,000 
 
 
 
 
 
Acquisition Acquisition (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Business Acquisition [Line Items]
 
 
Goodwill
$ 60,676 
$ 9,884 
Mid-America Midstream Gas Services, L.L.C. [Member]
 
 
Business Acquisition [Line Items]
 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment
123,316 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles
169,244 
 
Goodwill
23,587 
 
Total assets acquired
$ 316,147 
 
Acquisition Acquisition (Details 1) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Business Acquisition [Line Items]
 
 
Goodwill
$ 60,676 
$ 9,884 
Barcas Field Services, LLC [Member]
 
 
Business Acquisition [Line Items]
 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment
16,690 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles
6,018 
 
Goodwill
27,261 
 
Total assets acquired
$ 49,969 
 
Acquisition Acquisition (Details 2) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Dec. 31, 2012
Acquisitions [Abstract]
 
 
Goodwill
$ 60,676 
$ 9,884 
Goodwill, Acquired During Period
50,848 
 
Goodwill, Translation Adjustments
$ (56)
 
Acquisition Acquisition (Details Textual) (USD $)
9 Months Ended 9 Months Ended 9 Months Ended 3 Months Ended 0 Months Ended
Sep. 30, 2013
Sep. 30, 2013
Mid-America Midstream Gas Services, L.L.C. [Member]
Aug. 1, 2013
Mid-America Midstream Gas Services, L.L.C. [Member]
acre
mi
Sep. 30, 2013
Mid-America Midstream Gas Services, L.L.C. [Member]
Gathering and processing agreement [Member]
Aug. 1, 2013
Mid-America Midstream Gas Services, L.L.C. [Member]
Gathering and processing agreement [Member]
Sep. 30, 2013
Barcas Field Services, LLC [Member]
Sep. 1, 2013
Barcas Field Services, LLC [Member]
Trucks
Trailers
Aug. 1, 2013
Rose Valley I plant [Member]
Mid-America Midstream Gas Services, L.L.C. [Member]
MMcf
Aug. 1, 2013
Rose Valley II plant [Member]
Mid-America Midstream Gas Services, L.L.C. [Member]
MMcf
Sep. 30, 2013
General Partner [Member]
NGL Energy Partners LP [Member]
Mar. 31, 2013
General Partner [Member]
NGL Energy Partners LP [Member]
Aug. 8, 2013
General Partner [Member]
NGL Energy Partners LP [Member]
Additional GP ownership acquired [Member]
Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill, Amortization Period
15 years 
 
 
 
 
 
 
 
 
 
 
 
Payments to Acquire Businesses, Gross
 
$ 316,147,000 
 
 
 
$ 49,969,000 
 
 
 
 
 
 
Business Combination, Acquisition Related Costs
 
3,600,000 
 
 
 
 
 
 
 
 
 
 
Length Of Pipeline Network
 
 
200 
 
 
 
 
 
 
 
 
 
Processing Capacity
 
 
 
 
 
 
 
200 
200 
 
 
 
Net Acre Dedication Acquired
 
 
540,000 
 
 
 
 
 
 
 
 
 
Contract tenor
 
 
 
 
20 years 
 
 
 
 
 
 
 
Percentage of contract which is fee based
 
 
 
100.00% 
 
 
 
 
 
 
 
 
Future Capital Expenditures Related to Acquisition
 
 
$ 125,000,000 
 
 
 
 
 
 
 
 
 
Trucks purchased
 
 
 
 
 
 
114 
 
 
 
 
 
Trailers purchased
 
 
 
 
 
 
120 
 
 
 
 
 
General Partner Ownership Interest
 
 
 
 
 
 
 
 
 
11.78% 
11.78% 
5.36% 
Condensed Consolidating Guarantor Financial Statements Condensed Consolidating Guarantor Financial Statements (Details) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Dec. 31, 2011
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
Cash and Cash Equivalents, at Carrying Value
$ 64,718,000 
$ 67,461,000 
$ 64,718,000 
$ 67,461,000 
$ 80,029,000 
$ 73,613,000 
Restricted Cash and Cash Equivalents, Current
34,182,000 
 
34,182,000 
 
34,678,000 
 
Accounts receivable, net
368,246,000 
 
368,246,000 
 
346,169,000 
 
Receivable from affiliates
13,039,000 
 
13,039,000 
 
6,178,000 
 
Inventories
46,609,000 
 
46,609,000 
 
34,433,000 
 
Other Assets, Current
15,167,000 
 
15,167,000 
 
18,516,000 
 
Total current assets
541,961,000 
 
541,961,000 
 
520,003,000 
 
Property, plant and equipment, net
1,057,116,000 
 
1,057,116,000 
 
814,724,000 
 
Equity method investments
518,149,000 
 
518,149,000 
 
387,802,000 
 
Goodwill
60,676,000 
 
60,676,000 
 
9,884,000 
 
Other intangible assets, net
179,897,000 
 
179,897,000 
 
7,585,000 
 
Other noncurrent assets, net
32,603,000 
 
32,603,000 
 
8,181,000 
 
Total assets
2,390,402,000 
 
2,390,402,000 
 
1,748,179,000 
 
Accounts Payable, Current
303,672,000 
 
303,672,000 
 
253,623,000 
 
Payable to affiliates
2,102,000 
 
2,102,000 
 
 
Accrued liabilities
81,509,000 
 
81,509,000 
 
63,831,000 
 
Payables to pre-petition creditors
32,372,000 
 
32,372,000 
 
32,933,000 
 
Deferred revenue
18,835,000 
 
18,835,000 
 
18,973,000 
 
Other Liabilities, Current
9,120,000 
 
9,120,000 
 
4,960,000 
 
Current portion of long-term debt
26,000 
 
26,000 
 
24,000 
 
Total current liabilities
447,636,000 
 
447,636,000 
 
374,344,000 
 
Long-term Debt and Capital Lease Obligations
540,043,000 
 
540,043,000 
 
206,062,000 
 
Deferred Tax Liabilities, Net, Noncurrent
53,588,000 
 
53,588,000 
 
65,620,000 
 
Other Liabilities, Noncurrent
95,418,000 
 
95,418,000 
 
80,625,000 
 
Commitments and contingencies
   
 
   
 
   
 
Stockholders' Equity Attributable to Parent
1,001,357,000 
 
1,001,357,000 
 
892,394,000 
 
Noncontrolling interests in consolidated subsidiaries
252,360,000 
 
252,360,000 
 
129,134,000 
 
Total owners' equity
1,253,717,000 
 
1,253,717,000 
 
1,021,528,000 
 
Total liabilities and owners' equity
2,390,402,000 
 
2,390,402,000 
 
1,748,179,000 
 
Product Revenue
288,452,000 
209,202,000 
765,334,000 
708,408,000 
 
 
Sales Revenue, Services, Other
36,402,000 
29,800,000 
95,737,000 
86,727,000 
 
 
Other Revenue, Net
32,894,000 
38,850,000 
108,617,000 
126,525,000 
 
 
Total revenues
357,748,000 
277,852,000 
969,688,000 
921,660,000 
 
 
Costs of products sold, exclusive of depreciation and amortization shown below
255,554,000 
189,830,000 
680,632,000 
651,283,000 
 
 
Operating Costs and Expenses
52,360,000 
52,367,000 
162,813,000 
172,750,000 
 
 
General and administrative
20,952,000 
16,680,000 
54,887,000 
53,073,000 
 
 
Depreciation and amortization
16,113,000 
12,081,000 
41,563,000 
35,687,000 
 
 
Loss (gain) on disposal of long-lived assets, net
408,000 
(3,615,000)
(130,000)
(3,496,000)
 
 
Total expenses
345,387,000 
267,343,000 
939,765,000 
909,297,000 
 
 
Earnings from equity method investments
7,483,000 
3,116,000 
39,689,000 
22,903,000 
 
 
Operating income
19,844,000 
13,625,000 
69,612,000 
35,266,000 
 
 
Interest Expense
9,080,000 
1,992,000 
15,971,000 
7,763,000 
 
 
Foreign currency transaction (gain) loss
(457,000)
355,000 
(973,000)
358,000 
 
 
Other Nonoperating Income (Expense)
4,671,000 
9,354,000 
36,771,000 
16,783,000 
 
 
Total other expenses, net
13,294,000 
11,701,000 
51,769,000 
24,904,000 
 
 
Income (loss) from continuing operations before income taxes
6,550,000 
1,924,000 
17,843,000 
10,362,000 
 
 
Income tax expense (benefit)
3,413,000 
2,091,000 
(41,305,000)
985,000 
 
 
Income (loss) from continuing operations
3,137,000 
(167,000)
59,148,000 
9,377,000 
 
 
Income (loss) from discontinued operations, net of income taxes
(2,000)
(265,000)
65,000 
(456,000)
 
 
Net income (loss)
3,135,000 
(432,000)
59,213,000 
8,921,000 
 
 
Net Income (Loss) Attributable to Noncontrolling Interest
5,054,000 
2,336,000 
14,429,000 
7,915,000 
 
 
Net income (loss) attributable to SemGroup
(1,919,000)
(2,768,000)
44,784,000 
1,006,000 
 
 
Other Comprehensive Income (Loss), Net of Tax
6,105,000 
12,072,000 
(4,307,000)
14,930,000 
 
 
Comprehensive income
9,240,000 
11,640,000 
54,906,000 
23,851,000 
 
 
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest
5,054,000 
2,336,000 
14,429,000 
7,915,000 
 
 
Comprehensive income attributable to SemGroup
4,186,000 
9,304,000 
40,477,000 
15,936,000 
 
 
Net Cash Provided by (Used in) Operating Activities
 
 
96,519,000 
51,758,000 
 
 
Payments to Acquire Property, Plant, and Equipment
 
 
(131,650,000)
(82,123,000)
 
 
Proceeds from sale of long-lived assets
 
 
1,048,000 
347,000 
 
 
Proceeds from Divestiture of Businesses
 
 
 
 
 
Payments to Acquire Equity Method Investments
 
 
(143,463,000)
(63,999,000)
 
 
Payments to acquire businesses
 
 
(356,201,000)
 
 
Proceeds from sale of non-consolidated affiliate
 
 
3,500,000 
 
 
Distributions in excess of equity in earnings of affiliates
 
 
13,091,000 
10,569,000 
 
 
Net cash used in investing activities
 
 
(617,175,000)
(131,706,000)
 
 
Payments of Debt Issuance Costs
 
 
(11,865,000)
(694,000)
 
 
Proceeds from Issuance of Long-term Debt and Capital Securities, Net
 
 
928,474,000 
260,500,000 
 
 
Repayments of Long-term Debt, Long-term Capital Lease Obligations, and Capital Securities
 
 
(594,403,000)
(179,001,000)
 
 
Proceeds from Issuance of Common Limited Partners Units
 
 
210,226,000 
 
 
Distributions to noncontrolling interests
 
 
(11,458,000)
(5,754,000)
 
 
Proceeds from warrant exercises
 
 
225,000 
 
 
Payments for Repurchase of Other Equity
 
 
(371,000)
(242,000)
 
 
Payments of dividends
 
 
16,387,000 
 
 
Intercompany borrowings (advances), net
 
 
 
 
Net cash provided by financing activities
 
 
504,441,000 
74,809,000 
 
 
Effect of exchange rate changes on cash and cash equivalents
 
 
904,000 
(977,000)
 
 
Change in cash and cash equivalents
 
 
(15,311,000)
(6,116,000)
 
 
Change in cash and cash equivalents included in discontinued operations
 
 
(36,000)
 
 
Change in cash and cash equivalents from continuing operations
 
 
(15,311,000)
(6,152,000)
 
 
Parent [Member]
 
 
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
Cash and Cash Equivalents, at Carrying Value
9,711,000 
5,860,000 
9,711,000 
5,860,000 
19,123,000 
111,000 
Restricted Cash and Cash Equivalents, Current
32,880,000 
 
32,880,000 
 
33,324,000 
 
Accounts receivable, net
640,000 
 
640,000 
 
1,155,000 
 
Receivable from affiliates
752,000 
 
752,000 
 
827,000 
 
Inventories
 
 
 
Other Assets, Current
2,417,000 
 
2,417,000 
 
2,528,000 
 
Total current assets
46,400,000 
 
46,400,000 
 
56,957,000 
 
Property, plant and equipment, net
4,521,000 
 
4,521,000 
 
5,399,000 
 
Equity method investments
1,475,019,000 
 
1,475,019,000 
 
1,104,832,000 
 
Goodwill
 
 
 
Other intangible assets, net
32,000 
 
32,000 
 
36,000 
 
Other noncurrent assets, net
19,745,000 
 
19,745,000 
 
3,606,000 
 
Total assets
1,545,717,000 
 
1,545,717,000 
 
1,170,830,000 
 
Accounts Payable, Current
104,000 
 
104,000 
 
70,000 
 
Payable to affiliates
14,000 
 
14,000 
 
 
 
Accrued liabilities
14,715,000 
 
14,715,000 
 
8,972,000 
 
Payables to pre-petition creditors
32,317,000 
 
32,317,000 
 
32,876,000 
 
Deferred revenue
 
 
 
Other Liabilities, Current
97,000 
 
97,000 
 
134,000 
 
Current portion of long-term debt
 
 
 
Total current liabilities
47,247,000 
 
47,247,000 
 
42,052,000 
 
Long-term Debt and Capital Lease Obligations
455,000,000 
 
455,000,000 
 
201,500,000 
 
Deferred Tax Liabilities, Net, Noncurrent
976,000 
 
976,000 
 
2,018,000 
 
Other Liabilities, Noncurrent
46,358,000 
 
46,358,000 
 
32,866,000 
 
Commitments and contingencies
   
 
   
 
   
 
Stockholders' Equity Attributable to Parent
996,136,000 
 
996,136,000 
 
892,394,000 
 
Noncontrolling interests in consolidated subsidiaries
 
 
 
Total owners' equity
996,136,000 
 
996,136,000 
 
892,394,000 
 
Total liabilities and owners' equity
1,545,717,000 
 
1,545,717,000 
 
1,170,830,000 
 
Product Revenue
 
 
Sales Revenue, Services, Other
 
 
Other Revenue, Net
 
 
Total revenues
 
 
Costs of products sold, exclusive of depreciation and amortization shown below
 
 
Operating Costs and Expenses
 
 
General and administrative
7,855,000 
3,840,000 
15,983,000 
16,528,000 
 
 
Depreciation and amortization
497,000 
628,000 
1,504,000 
1,938,000 
 
 
Loss (gain) on disposal of long-lived assets, net
 
 
Total expenses
8,352,000 
4,468,000 
17,487,000 
18,466,000 
 
 
Earnings from equity method investments
15,497,000 
14,201,000 
52,432,000 
36,721,000 
 
 
Operating income
7,145,000 
9,733,000 
34,945,000 
18,255,000 
 
 
Interest Expense
4,029,000 
4,262,000 
1,112,000 
4,064,000 
 
 
Foreign currency transaction (gain) loss
 
 
Other Nonoperating Income (Expense)
3,383,000 
8,152,000 
32,826,000 
12,902,000 
 
 
Total other expenses, net
7,412,000 
12,414,000 
33,938,000 
16,966,000 
 
 
Income (loss) from continuing operations before income taxes
(267,000)
(2,681,000)
1,007,000 
1,289,000 
 
 
Income tax expense (benefit)
4,960,000 
96,000 
(40,469,000)
286,000 
 
 
Income (loss) from continuing operations
(5,227,000)
(2,777,000)
41,476,000 
1,003,000 
 
 
Income (loss) from discontinued operations, net of income taxes
3,000 
 
 
Net income (loss)
(5,227,000)
(2,777,000)
41,476,000 
1,006,000 
 
 
Net Income (Loss) Attributable to Noncontrolling Interest
 
 
Net income (loss) attributable to SemGroup
(5,227,000)
(2,777,000)
41,476,000 
1,006,000 
 
 
Other Comprehensive Income (Loss), Net of Tax
(2,162,000)
1,475,000 
190,000 
984,000 
 
 
Comprehensive income
(7,389,000)
(1,302,000)
41,666,000 
1,990,000 
 
 
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest
 
 
Comprehensive income attributable to SemGroup
(7,389,000)
(1,302,000)
41,666,000 
1,990,000 
 
 
Net Cash Provided by (Used in) Operating Activities
 
 
19,717,000 
(4,374,000)
 
 
Payments to Acquire Property, Plant, and Equipment
 
 
(622,000)
(1,621,000)
 
 
Proceeds from sale of long-lived assets
 
 
 
 
Proceeds from Divestiture of Businesses
 
 
189,500,000 
 
 
 
Payments to Acquire Equity Method Investments
 
 
(18,775,000)
(1,740,000)
 
 
Payments to acquire businesses
 
 
 
 
 
Proceeds from sale of non-consolidated affiliate
 
 
 
 
 
Distributions in excess of equity in earnings of affiliates
 
 
5,541,000 
5,062,000 
 
 
Net cash used in investing activities
 
 
175,644,000 
1,701,000 
 
 
Payments of Debt Issuance Costs
 
 
(9,037,000)
(455,000)
 
 
Proceeds from Issuance of Long-term Debt and Capital Securities, Net
 
 
575,000,000 
184,000,000 
 
 
Repayments of Long-term Debt, Long-term Capital Lease Obligations, and Capital Securities
 
 
(321,500,000)
(76,500,000)
 
 
Proceeds from Issuance of Common Limited Partners Units
 
 
 
 
 
Distributions to noncontrolling interests
 
 
 
 
Proceeds from warrant exercises
 
 
225,000 
 
 
 
Payments for Repurchase of Other Equity
 
 
(371,000)
(242,000)
 
 
Payments of dividends
 
 
16,387,000 
 
 
 
Intercompany borrowings (advances), net
 
 
(432,703,000)
(98,381,000)
 
 
Net cash provided by financing activities
 
 
(204,773,000)
8,422,000 
 
 
Effect of exchange rate changes on cash and cash equivalents
 
 
 
 
Change in cash and cash equivalents
 
 
(9,412,000)
5,749,000 
 
 
Change in cash and cash equivalents included in discontinued operations
 
 
 
 
 
Change in cash and cash equivalents from continuing operations
 
 
 
5,749,000 
 
 
Consolidation, Eliminations [Member]
 
 
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
Cash and Cash Equivalents, at Carrying Value
(3,128,000)
(2,674,000)
(3,128,000)
(2,674,000)
(2,938,000)
(2,762,000)
Restricted Cash and Cash Equivalents, Current
 
 
 
Accounts receivable, net
 
 
 
Receivable from affiliates
(3,146,000)
 
(3,146,000)
 
(1,980,000)
 
Inventories
 
 
 
Other Assets, Current
 
 
 
Total current assets
(6,274,000)
 
(6,274,000)
 
(4,918,000)
 
Property, plant and equipment, net
 
 
 
Equity method investments
(1,709,246,000)
 
(1,709,246,000)
 
(1,324,033,000)
 
Goodwill
 
 
 
Other intangible assets, net
 
 
 
Other noncurrent assets, net
 
 
 
Total assets
(1,715,520,000)
 
(1,715,520,000)
 
(1,328,951,000)
 
Accounts Payable, Current
 
 
 
Payable to affiliates
 
 
 
 
Accrued liabilities
(5,000)
 
(5,000)
 
 
Payables to pre-petition creditors
 
 
 
Deferred revenue
 
 
 
Other Liabilities, Current
 
 
(17,000)
 
Current portion of long-term debt
 
 
 
Total current liabilities
(5,000)
 
(5,000)
 
(17,000)
 
Long-term Debt and Capital Lease Obligations
 
 
 
Deferred Tax Liabilities, Net, Noncurrent
 
 
 
Other Liabilities, Noncurrent
 
 
 
Commitments and contingencies
   
 
   
 
   
 
Stockholders' Equity Attributable to Parent
(1,715,515,000)
 
(1,715,515,000)
 
(1,328,934,000)
 
Noncontrolling interests in consolidated subsidiaries
 
 
 
Total owners' equity
(1,715,515,000)
 
(1,715,515,000)
 
(1,328,934,000)
 
Total liabilities and owners' equity
(1,715,520,000)
 
(1,715,520,000)
 
(1,328,951,000)
 
Product Revenue
(6,575,000)
(2,251,000)
(15,663,000)
(7,520,000)
 
 
Sales Revenue, Services, Other
 
 
Other Revenue, Net
 
 
Total revenues
(6,575,000)
(2,251,000)
(15,663,000)
(7,520,000)
 
 
Costs of products sold, exclusive of depreciation and amortization shown below
(6,575,000)
(2,251,000)
(15,663,000)
(7,520,000)
 
 
Operating Costs and Expenses
 
 
General and administrative
 
 
Depreciation and amortization
 
 
Loss (gain) on disposal of long-lived assets, net
 
 
Total expenses
(6,575,000)
(2,251,000)
(15,663,000)
(7,520,000)
 
 
Earnings from equity method investments
(43,468,000)
(42,010,000)
(107,640,000)
(78,863,000)
 
 
Operating income
(43,468,000)
(42,010,000)
(107,640,000)
(78,863,000)
 
 
Interest Expense
(1,399,000)
(1,386,000)
(4,127,000)
(3,995,000)
 
 
Foreign currency transaction (gain) loss
 
 
Other Nonoperating Income (Expense)
1,399,000 
1,386,000 
4,127,000 
3,995,000 
 
 
Total other expenses, net
 
 
Income (loss) from continuing operations before income taxes
(43,468,000)
(42,010,000)
(107,640,000)
(78,863,000)
 
 
Income tax expense (benefit)
 
 
Income (loss) from continuing operations
(43,468,000)
(42,010,000)
(107,640,000)
(78,863,000)
 
 
Income (loss) from discontinued operations, net of income taxes
 
 
Net income (loss)
(43,468,000)
(42,010,000)
(107,640,000)
(78,863,000)
 
 
Net Income (Loss) Attributable to Noncontrolling Interest
 
 
Net income (loss) attributable to SemGroup
(43,468,000)
(42,010,000)
(107,640,000)
(78,863,000)
 
 
Other Comprehensive Income (Loss), Net of Tax
 
 
Comprehensive income
(43,468,000)
(42,010,000)
(107,640,000)
(78,863,000)
 
 
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest
 
 
Comprehensive income attributable to SemGroup
(43,468,000)
(42,010,000)
(107,640,000)
(78,863,000)
 
 
Net Cash Provided by (Used in) Operating Activities
 
 
(13,819,000)
(13,326,000)
 
 
Payments to Acquire Property, Plant, and Equipment
 
 
 
 
Proceeds from sale of long-lived assets
 
 
 
 
Proceeds from Divestiture of Businesses
 
 
(189,500,000)
 
 
 
Payments to Acquire Equity Method Investments
 
 
 
 
Payments to acquire businesses
 
 
 
 
 
Proceeds from sale of non-consolidated affiliate
 
 
 
 
 
Distributions in excess of equity in earnings of affiliates
 
 
 
 
Net cash used in investing activities
 
 
(189,500,000)
 
 
Payments of Debt Issuance Costs
 
 
 
 
Proceeds from Issuance of Long-term Debt and Capital Securities, Net
 
 
 
 
Repayments of Long-term Debt, Long-term Capital Lease Obligations, and Capital Securities
 
 
 
 
Proceeds from Issuance of Common Limited Partners Units
 
 
 
 
 
Distributions to noncontrolling interests
 
 
 
 
Proceeds from warrant exercises
 
 
 
 
 
Payments for Repurchase of Other Equity
 
 
 
 
Payments of dividends
 
 
 
 
 
Intercompany borrowings (advances), net
 
 
203,129,000 
13,414,000 
 
 
Net cash provided by financing activities
 
 
203,129,000 
13,414,000 
 
 
Effect of exchange rate changes on cash and cash equivalents
 
 
 
 
Change in cash and cash equivalents
 
 
(190,000)
88,000 
 
 
Change in cash and cash equivalents included in discontinued operations
 
 
 
 
 
Change in cash and cash equivalents from continuing operations
 
 
 
88,000 
 
 
Non-Guarantor Subsidiaries [Member]
 
 
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
Cash and Cash Equivalents, at Carrying Value
58,135,000 
64,275,000 
58,135,000 
64,275,000 
63,844,000 
76,264,000 
Restricted Cash and Cash Equivalents, Current
1,302,000 
 
1,302,000 
 
1,354,000 
 
Accounts receivable, net
356,350,000 
 
356,350,000 
 
337,087,000 
 
Receivable from affiliates
244,000 
 
244,000 
 
109,000 
 
Inventories
45,445,000 
 
45,445,000 
 
34,252,000 
 
Other Assets, Current
12,420,000 
 
12,420,000 
 
15,676,000 
 
Total current assets
473,896,000 
 
473,896,000 
 
452,322,000 
 
Property, plant and equipment, net
733,790,000 
 
733,790,000 
 
686,426,000 
 
Equity method investments
228,076,000 
 
228,076,000 
 
138,970,000 
 
Goodwill
37,089,000 
 
37,089,000 
 
9,884,000 
 
Other intangible assets, net
12,031,000 
 
12,031,000 
 
7,549,000 
 
Other noncurrent assets, net
11,686,000 
 
11,686,000 
 
3,258,000 
 
Total assets
1,496,568,000 
 
1,496,568,000 
 
1,298,409,000 
 
Accounts Payable, Current
258,680,000 
 
258,680,000 
 
241,249,000 
 
Payable to affiliates
1,967,000 
 
1,967,000 
 
 
 
Accrued liabilities
58,773,000 
 
58,773,000 
 
50,313,000 
 
Payables to pre-petition creditors
55,000 
 
55,000 
 
57,000 
 
Deferred revenue
18,835,000 
 
18,835,000 
 
18,973,000 
 
Other Liabilities, Current
8,309,000 
 
8,309,000 
 
4,263,000 
 
Current portion of long-term debt
26,000 
 
26,000 
 
24,000 
 
Total current liabilities
346,645,000 
 
346,645,000 
 
314,879,000 
 
Long-term Debt and Capital Lease Obligations
85,043,000 
 
85,043,000 
 
4,562,000 
 
Deferred Tax Liabilities, Net, Noncurrent
52,612,000 
 
52,612,000 
 
63,602,000 
 
Other Liabilities, Noncurrent
49,060,000 
 
49,060,000 
 
47,759,000 
 
Commitments and contingencies
   
 
   
 
   
 
Stockholders' Equity Attributable to Parent
710,848,000 
 
710,848,000 
 
738,473,000 
 
Noncontrolling interests in consolidated subsidiaries
252,360,000 
 
252,360,000 
 
129,134,000 
 
Total owners' equity
963,208,000 
 
963,208,000 
 
867,607,000 
 
Total liabilities and owners' equity
1,496,568,000 
 
1,496,568,000 
 
1,298,409,000 
 
Product Revenue
231,404,000 
182,672,000 
634,117,000 
629,770,000 
 
 
Sales Revenue, Services, Other
35,228,000 
29,518,000 
94,091,000 
85,776,000 
 
 
Other Revenue, Net
32,894,000 
38,788,000 
108,617,000 
126,456,000 
 
 
Total revenues
299,526,000 
250,978,000 
836,825,000 
842,002,000 
 
 
Costs of products sold, exclusive of depreciation and amortization shown below
214,472,000 
168,598,000 
587,481,000 
589,929,000 
 
 
Operating Costs and Expenses
47,291,000 
49,312,000 
149,772,000 
163,495,000 
 
 
General and administrative
10,855,000 
10,047,000 
32,557,000 
30,436,000 
 
 
Depreciation and amortization
10,778,000 
9,804,000 
31,161,000 
29,042,000 
 
 
Loss (gain) on disposal of long-lived assets, net
(271,000)
(3,612,000)
(812,000)
(3,493,000)
 
 
Total expenses
283,125,000 
234,149,000 
800,159,000 
809,409,000 
 
 
Earnings from equity method investments
10,787,000 
10,021,000 
31,886,000 
25,053,000 
 
 
Operating income
27,188,000 
26,850,000 
68,552,000 
57,646,000 
 
 
Interest Expense
5,136,000 
1,346,000 
15,845,000 
8,609,000 
 
 
Foreign currency transaction (gain) loss
(457,000)
355,000 
(973,000)
358,000 
 
 
Other Nonoperating Income (Expense)
(112,000)
(134,000)
(341,000)
(95,000)
 
 
Total other expenses, net
4,567,000 
1,567,000 
14,531,000 
8,872,000 
 
 
Income (loss) from continuing operations before income taxes
22,621,000 
25,283,000 
54,021,000 
48,774,000 
 
 
Income tax expense (benefit)
(1,547,000)
1,995,000 
(836,000)
699,000 
 
 
Income (loss) from continuing operations
24,168,000 
23,288,000 
54,857,000 
48,075,000 
 
 
Income (loss) from discontinued operations, net of income taxes
(2,000)
(261,000)
(1,000)
(448,000)
 
 
Net income (loss)
24,166,000 
23,027,000 
54,856,000 
47,627,000 
 
 
Net Income (Loss) Attributable to Noncontrolling Interest
5,054,000 
2,336,000 
14,429,000 
7,915,000 
 
 
Net income (loss) attributable to SemGroup
19,112,000 
20,691,000 
40,427,000 
39,712,000 
 
 
Other Comprehensive Income (Loss), Net of Tax
8,267,000 
10,597,000 
(4,497,000)
13,946,000 
 
 
Comprehensive income
32,433,000 
33,624,000 
50,359,000 
61,573,000 
 
 
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest
5,054,000 
2,336,000 
14,429,000 
7,915,000 
 
 
Comprehensive income attributable to SemGroup
27,379,000 
31,288,000 
35,930,000 
53,658,000 
 
 
Net Cash Provided by (Used in) Operating Activities
 
 
74,197,000 
58,353,000 
 
 
Payments to Acquire Property, Plant, and Equipment
 
 
(65,183,000)
(38,796,000)
 
 
Proceeds from sale of long-lived assets
 
 
1,045,000 
335,000 
 
 
Proceeds from Divestiture of Businesses
 
 
 
 
 
Payments to Acquire Equity Method Investments
 
 
(96,657,000)
205,000 
 
 
Payments to acquire businesses
 
 
(49,969,000)
 
 
 
Proceeds from sale of non-consolidated affiliate
 
 
 
3,500,000 
 
 
Distributions in excess of equity in earnings of affiliates
 
 
7,550,000 
5,507,000 
 
 
Net cash used in investing activities
 
 
(203,214,000)
(29,249,000)
 
 
Payments of Debt Issuance Costs
 
 
(2,828,000)
(239,000)
 
 
Proceeds from Issuance of Long-term Debt and Capital Securities, Net
 
 
353,474,000 
76,500,000 
 
 
Repayments of Long-term Debt, Long-term Capital Lease Obligations, and Capital Securities
 
 
(272,903,000)
(102,501,000)
 
 
Proceeds from Issuance of Common Limited Partners Units
 
 
210,226,000 
 
 
 
Distributions to noncontrolling interests
 
 
(11,458,000)
(5,754,000)
 
 
Proceeds from warrant exercises
 
 
 
 
 
Payments for Repurchase of Other Equity
 
 
 
 
Payments of dividends
 
 
 
 
 
Intercompany borrowings (advances), net
 
 
(154,107,000)
(8,086,000)
 
 
Net cash provided by financing activities
 
 
122,404,000 
(40,080,000)
 
 
Effect of exchange rate changes on cash and cash equivalents
 
 
904,000 
(977,000)
 
 
Change in cash and cash equivalents
 
 
(5,709,000)
(11,953,000)
 
 
Change in cash and cash equivalents included in discontinued operations
 
 
 
(36,000)
 
 
Change in cash and cash equivalents from continuing operations
 
 
 
(11,989,000)
 
 
Guarantor Subsidiaries [Member]
 
 
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
Cash and Cash Equivalents, at Carrying Value
Restricted Cash and Cash Equivalents, Current
 
 
 
Accounts receivable, net
11,256,000 
 
11,256,000 
 
7,927,000 
 
Receivable from affiliates
15,189,000 
 
15,189,000 
 
7,222,000 
 
Inventories
1,164,000 
 
1,164,000 
 
181,000 
 
Other Assets, Current
330,000 
 
330,000 
 
312,000 
 
Total current assets
27,939,000 
 
27,939,000 
 
15,642,000 
 
Property, plant and equipment, net
318,805,000 
 
318,805,000 
 
122,899,000 
 
Equity method investments
524,300,000 
 
524,300,000 
 
468,033,000 
 
Goodwill
23,587,000 
 
23,587,000 
 
 
Other intangible assets, net
167,834,000 
 
167,834,000 
 
 
Other noncurrent assets, net
1,172,000 
 
1,172,000 
 
1,317,000 
 
Total assets
1,063,637,000 
 
1,063,637,000 
 
607,891,000 
 
Accounts Payable, Current
44,888,000 
 
44,888,000 
 
12,304,000 
 
Payable to affiliates
121,000 
 
121,000 
 
 
 
Accrued liabilities
8,026,000 
 
8,026,000 
 
4,546,000 
 
Payables to pre-petition creditors
 
 
 
Deferred revenue
 
 
 
Other Liabilities, Current
714,000 
 
714,000 
 
580,000 
 
Current portion of long-term debt
 
 
 
Total current liabilities
53,749,000 
 
53,749,000 
 
17,430,000 
 
Long-term Debt and Capital Lease Obligations
 
 
 
Deferred Tax Liabilities, Net, Noncurrent
 
 
 
Other Liabilities, Noncurrent
 
 
 
Commitments and contingencies
   
 
   
 
   
 
Stockholders' Equity Attributable to Parent
1,009,888,000 
 
1,009,888,000 
 
590,461,000 
 
Noncontrolling interests in consolidated subsidiaries
 
 
 
Total owners' equity
1,009,888,000 
 
1,009,888,000 
 
590,461,000 
 
Total liabilities and owners' equity
1,063,637,000 
 
1,063,637,000 
 
607,891,000 
 
Product Revenue
63,623,000 
28,781,000 
146,880,000 
86,158,000 
 
 
Sales Revenue, Services, Other
1,174,000 
282,000 
1,646,000 
951,000 
 
 
Other Revenue, Net
62,000 
69,000 
 
 
Total revenues
64,797,000 
29,125,000 
148,526,000 
87,178,000 
 
 
Costs of products sold, exclusive of depreciation and amortization shown below
47,657,000 
23,483,000 
108,814,000 
68,874,000 
 
 
Operating Costs and Expenses
5,069,000 
3,055,000 
13,041,000 
9,255,000 
 
 
General and administrative
2,242,000 
2,793,000 
6,347,000 
6,109,000 
 
 
Depreciation and amortization
4,838,000 
1,649,000 
8,898,000 
4,707,000 
 
 
Loss (gain) on disposal of long-lived assets, net
679,000 
(3,000)
682,000 
(3,000)
 
 
Total expenses
60,485,000 
30,977,000 
137,782,000 
88,942,000 
 
 
Earnings from equity method investments
24,667,000 
20,904,000 
63,011,000 
39,992,000 
 
 
Operating income
28,979,000 
19,052,000 
73,755,000 
38,228,000 
 
 
Interest Expense
1,314,000 
(2,230,000)
3,141,000 
(915,000)
 
 
Foreign currency transaction (gain) loss
 
 
Other Nonoperating Income (Expense)
1,000 
(50,000)
159,000 
(19,000)
 
 
Total other expenses, net
1,315,000 
(2,280,000)
3,300,000 
(934,000)
 
 
Income (loss) from continuing operations before income taxes
27,664,000 
21,332,000 
70,455,000 
39,162,000 
 
 
Income tax expense (benefit)
 
 
Income (loss) from continuing operations
27,664,000 
21,332,000 
70,455,000 
39,162,000 
 
 
Income (loss) from discontinued operations, net of income taxes
(4,000)
66,000 
(11,000)
 
 
Net income (loss)
27,664,000 
21,328,000 
70,521,000 
39,151,000 
 
 
Net Income (Loss) Attributable to Noncontrolling Interest
 
 
Net income (loss) attributable to SemGroup
27,664,000 
21,328,000 
70,521,000 
39,151,000 
 
 
Other Comprehensive Income (Loss), Net of Tax
 
 
Comprehensive income
27,664,000 
21,328,000 
70,521,000 
39,151,000 
 
 
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest
 
 
Comprehensive income attributable to SemGroup
27,664,000 
21,328,000 
70,521,000 
39,151,000 
 
 
Net Cash Provided by (Used in) Operating Activities
 
 
16,424,000 
11,105,000 
 
 
Payments to Acquire Property, Plant, and Equipment
 
 
(65,845,000)
(41,706,000)
 
 
Proceeds from sale of long-lived assets
 
 
3,000 
12,000 
 
 
Proceeds from Divestiture of Businesses
 
 
 
 
 
Payments to Acquire Equity Method Investments
 
 
(28,031,000)
(62,464,000)
 
 
Payments to acquire businesses
 
 
(306,232,000)
 
 
 
Proceeds from sale of non-consolidated affiliate
 
 
 
 
 
Distributions in excess of equity in earnings of affiliates
 
 
 
 
Net cash used in investing activities
 
 
(400,105,000)
(104,158,000)
 
 
Payments of Debt Issuance Costs
 
 
 
 
Proceeds from Issuance of Long-term Debt and Capital Securities, Net
 
 
 
 
Repayments of Long-term Debt, Long-term Capital Lease Obligations, and Capital Securities
 
 
 
 
Proceeds from Issuance of Common Limited Partners Units
 
 
 
 
 
Distributions to noncontrolling interests
 
 
 
 
Proceeds from warrant exercises
 
 
 
 
 
Payments for Repurchase of Other Equity
 
 
 
 
Payments of dividends
 
 
 
 
 
Intercompany borrowings (advances), net
 
 
383,681,000 
93,053,000 
 
 
Net cash provided by financing activities
 
 
383,681,000 
93,053,000 
 
 
Effect of exchange rate changes on cash and cash equivalents
 
 
 
 
Change in cash and cash equivalents
 
 
 
 
Change in cash and cash equivalents included in discontinued operations
 
 
 
 
 
Change in cash and cash equivalents from continuing operations
 
 
 
$ 0 
 
 
Condensed Consolidating Guarantor Financial Statements Condensed Consolidating Guarantor Financial Statements (Details Textual) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Condensed Financial Statements, Captions [Line Items]
 
 
Senior Notes
$ 300,000 
$ 0 
Guarantor Subsidiaries [Member]
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Equity Method Investment, Ownership Percentage
100.00% 
 
Senior Notes [Member]
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
7.50% 
 
Semcrude Pipeline [Member]
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Equity Method Investment, Ownership Percentage
33.00%