SemGroup and KKR’s Midstream JV closes acquisition of Meritage Midstream

CPE News (2-25-2019) – SemCAMS Midstream ULC, a newly created joint venture owned by SemGroup® Corporation (NYSE: SEMG) and Kohlberg Kravis Roberts & Co. L.P. (NYSE: KKR), has closed its previously announced CDN $600 million acquisition of Meritage Midstream ULC from Meritage Midstream Services III, LP, a platform company of Riverstone Global Energy and Power Fund VI and Riverstone Energy Limited (LSE: RSE).

Calgary based SemCAMS Midstream ULC was formed in January 2019 to own and operate midstream oil and gas infrastructure in Western Canada. SemGroup contributed 100% of its wholly owned subsidiary, SemCAMS ULC, in exchange for 51% of SemCAMS Midstream and CDN $615 million in cash. KKR Global Infrastructure Investors III contributed CDN $815 million in cash in exchange for 49% of SemCAMS Midstream and 300,000 preferred shares in SemCAMS Midstream.

With the closing of Meritage Midstream ULC, SemCAMS Midstream now owns and operates six gas processing plants located in the heart of the Western Canadian Sedimentary Basin with a combined licensed capacity of approximately 2 billion cubic feet per day. Strategically positioned to accept production out of the Montney and Duvernay area, the assets include more than 700 miles of natural gas gathering and transportation pipelines as well as oil gathering and emulsion.

photo credit: SemCAMS

News Release

SemCAMS Midstream Joint Venture Completes Acquisition of Meritage Midstream ULC

CALGARY, Alberta, Feb. 25, 2019 (GLOBE NEWSWIRE) — SemGroup® Corporation (NYSE: SEMG) and KKR today announced that SemCAMS Midstream ULC (“SemCAMS Midstream”) has closed on its acquisition of Meritage Midstream ULC’s midstream infrastructure assets in the prolific Alberta Montney resource play. SemCAMS Midstream is a newly-created joint venture owned by SemGroup and KKR.

“Meritage is an excellent addition to our portfolio both geographically and operationally,” said SemCAMS Midstream President Dave Gosse. “We are pleased to welcome the Meritage staff to our team and look forward to the many benefits this acquisition brings, including a more diverse customer base, increased processing capacity and broader capabilities.”

SemCAMS Midstream owns approximately 1.1 bcf/d of natural gas processing capacity, including capacity from Meritage’s Patterson Creek Plant and the new Wapiti Plant, which came online in January 2019. SemCAMS Midstream capacity will increase to approximately 1.3 bcf/d later this year with the expected completion of the Smoke Lake Plant and Patterson Creek Plant expansion.

The press release announcing the acquisition on January 10, 2019 contains more information.

About SemCAMS Midstream ULC
SemCAMS Midstream ULC is a gathering and processing business that provides midstream solutions from the wellhead to the wholesale market place in Western Canada. As one of Alberta’s largest licensed gas processors, SemCAMS Midstream owns and operates six gas processing plants located in the heart of the Western Canadian Sedimentary Basin with combined licensed capacity of approximately 2 billion cubic feet per day. Strategically positioned to accept production out of the Montney and Duvernay area, the assets include more than 700 miles of natural gas gathering and transportation pipelines as well as oil gathering and emulsion. SemCAMS Midstream, a joint venture between SemGroup Corporation® (NYSE: SEMG) and KKR, is based in Calgary, Alberta.

About SemGroup
SemGroup® Corporation (NYSE: SEMG) moves energy across North America through a network of pipelines, processing plants, refinery-connected storage facilities and deep-water marine terminals with import and export capabilities. SemGroup serves as a versatile connection between upstream oil and gas producers and downstream refiners and end users. Key areas of operation and growth include western Canada, the Mid-Continent and the Gulf Coast. SemGroup is committed to safe, environmentally sound operations. Headquartered in Tulsa, Okla., the company has additional offices in Calgary, Alberta; Denver, Colo.; and Houston, Texas. SemGroup uses its Investor Relations website and social media outlets as channels of distribution of material company information. Such information is routinely posted and accessible on SemGroup’s Investor Relations website at www.semgroup.com, SemGroup’s Twitter account and LinkedIn account.

About KKR
KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic partners that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

SemGroup Investor Relations:
Kevin Greenwell
918-524-8081
investor.relations@semgroupcorp.com

SemGroup Media:
Tom Droege
918-524-8560
tdroege@semgroup.com

KKR:
Kristi Huller
212-750-8300
media@kkr.com