September 22, 2019

Energy Transfer LP (NYSE: ET) announced on Monday, September 16, 2019 that it had entered into a definitive merger agreement whereby Energy Transfer will acquire SemGroup Corporation (NYSE: SEMG) in a share and cash transaction valued at approximately $5 billion. This represents a 65% premium to the closing price of SemGroup shares as of Friday, September 13, 2019. The transaction is expected to close in late 2019 or early 2020, subject to the approval by SemGroup’s stockholders and other regulatory approvals.

Following the September 16 announcement, Alinda sold all its funds' interests in SemGroup shares in the open market. Investment funds managed by Alinda had received shares in SemGroup in partial consideration for the sale of Houston Fuel Oil Terminal (HFOTCO) to SemGroup in June 2017. 


Investments funds managed by Alinda continue to hold a 49% interest in the Maurepas Pipeline, LLC, acquired from SemGroup in August 2018 in a transaction unrelated to the sale of HFOTCO. Upon completion of its merger with SemGroup, Energy Transfer will own the remaining 51% of Maurepas.  


Energy Transfer says its acquisition of SemGroup will significantly strengthen its crude oil transportation, terminal and export capabilities with the addition of the HFOTCO, a world class crude oil terminal on the Houston Ship Channel with 18.2 million barrels of crude oil storage capacity, five deep-water ship docks and seven barge docks. HFOTCO is supported by stable take-or-pay cash flows from diverse, primarily investment grade customers. Energy Transfer also announced plans to construct a new crude oil pipeline, the Ted Collins Pipeline, to connect HFOTCO to Energy Transfer’s Nederland Terminal. Energy Transfer’s crude oil assets on the Gulf Coast will also benefit from SemGroup’s interest in the Maurepas pipeline and its connections to the St. James refining complex. Energy Transfer owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint in all of the major domestic production basins.


See Alinda Acquires 49% Interest in the Maurepas Pipeline