SemGroup Buy Prompts Energy Transfer to Build New Pipeline
(Reuters) – Dallas-based Energy Transfer said Monday it would buy smaller rival SemGroup Corp for $1.35 billion and build a 75-mile oil pipeline to strengthen its oil transportation, terminaling and export operations.
Energy Transfer will gain control of SemGroup’s crude oil terminal on the Houston Ship Channel, and to connect it with its Nederland, Texas terminal. Energy Transfer said it will construct a pipeline between the two terminals.
Energy Transfer will also add SemGroup’s crude oil gathering assets in the DJ Basin in Colorado and the Anadarko Basin in Oklahoma and Kansas, as well as crude oil and natural gas liquids pipelines connecting the DJ Basin and Anadarko Basin with terminals in Cushing, Okla.
The deal, which includes $6.80 in cash and 0.7275 shares of Energy Transfer for each outstanding share of SemGroup, represents a premium of 65.4% to SemGroup’s Friday close.
Including SemGroup’s debt, the enterprise value of the deal is $5 billion.
The transaction is expected to close in late 2019 or early 2020.
Related News
Related News
- Keystone Oil Pipeline Resumes Operations After Temporary Shutdown
- U.S. House Passes Bill to Reverse Biden's LNG Pause
- Mexico Orders Seizure of Hydrogen Plant at Pemex Oil Refinery
- EnCap Eyes $5 Billion Sale of Bakken Shale Producer Grayson Mill
- Sunoco to Acquire NuStar Energy in $7.3 Billion Deal for Midstream Expansion
- U.S. Regulators Approve Mexico Pacific LNG's Saguaro Connector Pipeline
- U.S. to Acquire 3 Million Barrels of Oil for Emergency Reserve in September
- AG&P LNG Acquires 49% Stake in Vietnam's Cai Mep LNG Terminal
- BP's Carbon Emissions Increase in 2023, Ending Decline Since 2019
- Texas Sues EPA Over Methane Emission Rules for Oil and Gas Sector
Comments