Houston Fuel Oil Terminal Company new storage
SemGroup, as of July, the owner of the Houston Fuel Oil Terminal Company, is planning to add 1.45 million barrels of crude storage to the facility along with a fifth dock. CEO Carlin Conner revealed the plans at the company’s Q2 results conference call.
The company bought the facility from investment funds managed by Alinda Capital Partners. The 16.8-million-barrel terminal is located on the US Gulf Coast with pipeline connectivity to the local refining complex, deep water marine access and inbound pipeline and rail & truck receipt capabilities from all major producing basins.
On the call, Carlin also shared news of the company’s second quarter 2017 results including revenues of $473.1m with net income of $9.6m.
SemGroup’s second quarter 2017 Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) was $65.4m compared to $60.7m in first quarter 2017 and $67.6m in second quarter 2016.
The nearly 8% increase in Adjusted EBITDA was primarily driven by the timing of take-or-pay minimum volume commitments at SemCAMS.
Carlin said: “During the second quarter our existing business performed well and we made steady progress executing on our growth projects in Canada and the STACK, while capturing additional commercialization opportunities. In July, we reached a milestone in our growth strategy with the acquisition of Houston Fuel Oil Terminal Company, an extremely versatile, refinery-facing asset that provides stable and growing cash flows even in volatile commodity price environments, as well as significant optionality for further expansion. I am also excited to report that construction on Maurepas Pipeline was completed and on budget. It has been an eventful summer for our company. I believe we are turning an important corner in our pursuit to establish a more secure foundation of cash flows while building paths to future growth and long-term value creation for our investors.”
For full details visit www.semgroupcorp.com
15th Aug 2017
