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SemGroup reports fourth quarter loss, shares fall 11%

Apr. 01, 2011 7:44 AM ETSGLP
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Shares of SemGroup Corp. (NYSE:SEMG), a provider of oil and gas transport and related services, tumbled on Thursday after the company reported losses in the fourth quarter.

The Oklahoma-based company's shares fell 11% to trade at $28.90 as of 2:13 pm EST.

SemGroup filed for bankruptcy in 2008 after rising oil prices resulted in large losses for the company, which held futures betting that oil prices would drop.

Since emerging from bankruptcy in December 2009, the company has sold its 49% stake in the White Cliffs pipeline to pay off debt.

For the quarter ending December 31 2010, the company reported a loss of $4.9 million, or 12 cents per diluted share, on revenues of $453 million. There were no comparable results provided since SemGroup was under bankruptcy protection for two months during the 2009 fourth quarter.

For the entire 2010, the company reported a loss of $132.3 million, or $3.20 per diluted share, on revenues of $1.6 billion.

"Refinancing our capital structure is a key priority for 2011," said SemGroup’s CFO Bob Fitzgerald.

"There are substantial benefits that will flow to shareholders from achieving this goal and we continue to work with the banks to highlight our performance and refinance our debt at more reasonable rates."

The company also announced today that it will build 1.95 million barrels of additional crude oil storage at its terminal in Cushing, Oklahoma.  The project is expected to be completed in mid 2012.

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