SemGroup Corp

CIK:0001489136|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues:
Direct Financing Lease, Revenue	$ 3,873	$ 3,937	$ 11,789	$ 12,517
Revenues	562,410	633,996	1,804,582	1,891,399
Expenses:
Cost of Goods and Service, Excluding Depreciation, Depletion, and Amortization	377,174	468,871	1,274,126	1,377,092
Operating	73,619	64,835	214,823	224,871
General and administrative	29,662	21,904	84,729	71,267
Depreciation and amortization	61,489	53,598	184,536	155,889
Loss (gain) on Disposal or Impairment	(373)	(383)	7,119	(2,125)
Total expenses	541,571	608,825	1,765,333	1,826,994
Earnings from equity method investments	9,065	14,528	35,711	41,493
Operating income	29,904	39,699	74,960	105,898
Other expenses (income), net:
Interest expense	39,663	35,318	115,225	113,683
Foreign currency transaction loss (gain)	801	(983)	(476)	4,625
Other income, net	(1,075)	(400)	(3,401)	(1,883)
Total other expenses, net	39,389	33,935	111,348	116,425
Income (loss) before income taxes	(9,485)	5,764	(36,388)	(10,527)
Income tax expense (benefit)	(4,019)	(2,697)	(14,710)	16,773
Net income (loss)	(5,466)	8,461	(21,678)	(27,300)
Net Income (Loss) Attributable to Noncontrolling Interest	7,042	0	23,256	0
Net Income (Loss) Attributable to Parent	(12,508)	8,461	(44,934)	(27,300)
Less: cumulative preferred stock dividends	6,773	6,317	19,971	17,360
Subsidiary Preferred Stock Dividends, Income Statement Impact	2,604	0	6,288	0
Accretion of Subsidiary Preferred Stock to redemption Value	255	0	14,241	0
Net income (loss) attributable to common shareholders	(22,140)	2,144	(85,434)	(44,660)
Other comprehensive income (loss), net of income taxes	(6,317)	3,352	6,837	27,703
Comprehensive income (loss)	(11,783)	11,813	(14,841)	403
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest	(4,605)	0	8,993	0
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	$ (14,220)	$ 11,813	$ (47,090)	$ 403
Net income (loss) per common share (Note 15):
Basic	$ (0.28)	$ 0.03	$ (1.09)	$ (0.57)
Diluted	$ (0.28)	$ 0.03	$ (1.09)	$ (0.57)
Product [Member]
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax	$ 399,679	$ 487,693	$ 1,336,914	$ 1,421,751
Service [Member]
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax	98,965	86,122	278,974	282,368
Storage Revenue [Member]
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax	41,144	41,914	124,001	126,601
Other revenue [Member]
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax	$ 18,749	$ 14,330	$ 52,904	$ 48,162

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ (21,678)	$ (27,300)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	184,536	155,889
Loss (gain) on Disposal or Impairment	7,119	(2,125)
Earnings from equity method investments	(35,711)	(41,493)
Distributions from equity method investments	35,700	41,489
Amortization of debt issuance costs and discount	7,396	5,628
Deferred tax expense (benefit)	(21,494)	1,793
Non-cash equity compensation	7,764	8,332
Provision for uncollectible accounts receivable, net of recoveries	(128)	(97)
Foreign currency transaction loss (gain)	(476)	4,625
Inventory Write-down	2,834	0
Changes in operating assets and liabilities (Note 16)	(31,143)	(10,326)
Net cash provided by operating activities	134,719	136,415
Capital expenditures	(288,939)	(303,391)
Proceeds from sale of long-lived assets	12,817	246
Contributions to equity method investments	(25,456)	(7,466)
Payments to Acquire Businesses, Net of Cash Acquired	(488,297)	0
Proceeds from business divestitures	0	146,735
Distributions in excess of equity in earnings of affiliates	15,838	15,730
Net cash used in investing activities	(774,037)	(148,146)
Debt issuance costs	(13,241)	(4,720)
Borrowings on credit facilities and issuance of senior notes, net of discount	600,104	1,139,500
Principal payments on credit facilities and other obligations	(394,965)	(1,376,649)
Proceeds from Issuance of Common Stock	448,443	0
Proceeds from subsidiary preferred stock issuance, net of offering costs	223,280	342,299
Proceeds from Noncontrolling Interests	103,691	0
Payments to Noncontrolling Interests	(90,830)	0
Repurchase of common stock for payment of statutory taxes due on equity-based compensation	(736)	(699)
Payments of Dividends	(112,929)	(111,445)
Proceeds from issuance of common stock under employee stock purchase plan	523	228
Net cash provided by (used in) financing activities	763,340	(11,486)
Effect of exchange rate changes on cash and cash equivalents	3,330	(494)
Change in cash and cash equivalents	127,352	(23,711)
Cash and cash equivalents at beginning of period	86,655	93,699
Cash and cash equivalents at end of period	$ 214,007	$ 69,988

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 214,007	$ 86,655
Accounts receivable (net of allowance of $2,461 and $2,244, respectively)	570,006	562,214
Receivable from affiliates	281	295
Inventories	66,883	49,397
Other current assets	26,403	17,264
Total current assets	877,580	715,825
Property, plant and equipment (net of accumulated depreciation of $721,958 and $607,903, respectively)	3,927,645	3,457,326
Equity method investments	283,638	274,009
Goodwill	338,856	257,302
Other intangible assets (net of accumulated amortization of $125,127 and $90,014, respectively)	444,229	365,038
Other noncurrent assets	151,017	140,807
Right-of-Use Asset, Operating and Finance Leases	89,665	0
Total assets	6,112,630	5,210,307
Current liabilities:
Accounts payable	502,736	494,792
Payable to affiliates	870	3,715
Accrued liabilities	113,693	115,095
Deferred revenue	3,292	11,060
Other current liabilities	12,826	6,495
Long-term debt	15,912	6,000
Total current liabilities	649,329	637,157
Long-term debt	2,477,326	2,278,834
Deferred income taxes	132,980	55,789
Other noncurrent liabilities	141,632	38,548
Commitments and contingencies (Note 8)
Redeemable preferred stock, $0.01 par value, $386,988 liquidation preference (authorized - 4,000 shares; issued - 350 shares)	379,285	359,658
Subsidiary Preferred Stock, Value Outstanding	258,376	0
SemGroup owners’ equity:
Common stock, $0.01 par value (authorized - 190,000 shares; issued - 79,856 and 79,270 shares, respectively)	790	786
Additional paid-in capital	1,409,772	1,615,969
Treasury stock, at cost (277 and 126 shares, respectively)	(1,441)	(705)
Accumulated deficit	(107,859)	(73,971)
Accumulated other comprehensive loss	(53,403)	(51,247)
Total SemGroup Corporation owners’ equity	1,247,859	1,490,832
Stockholders' Equity Attributable to Noncontrolling Interest	825,843	349,489
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	2,073,702	1,840,321
Total liabilities, preferred stock and owners’ equity	$ 6,112,630	$ 5,210,307