SemGroup (SEMG), Gavilon Complete Glass Mtn. Acquisition
Get Alerts SEMG Hot Sheet
Join SI Premium – FREE
SemGroup Corporation (NYSE: SEMG), and Gavilon, LLC, today announced that each has completed the acquisition of a 25 percent share of Glass Mountain Pipeline LLC previously owned by an affiliate of Chesapeake Energy Corporation (NYSE: CHK). Following this purchase, SemGroup Corporation now owns 50 percent of Glass Mountain Pipeline; the remaining 50 percent of the pipeline is now owned by Gavilon. Chesapeake will maintain its long-term transportation agreement with Glass Mountain Pipeline, providing the economic incentive for its construction.
The Glass Mountain Pipeline will have an initial capacity of approximately 140,000 barrels per day and 440,000 barrels of intermediate storage. The pipeline will consist of two laterals. One lateral will originate near the town of Alva in Woods County, Oklahoma. The second lateral will originate near the town of Arnett in Ellis County, Oklahoma. The pipeline will increase in diameter where the laterals intersect near Cleo Springs in Major County, Oklahoma and continue east to Cushing, Oklahoma. The pipeline will terminate at Gavilon's Cushing facility, where the joint venture will own one million barrels of crude oil storage. Following pipeline construction, Rose Rock Midstream, LP (NYSE: RRMS), SemGroup's master limited partnership, will serve as the pipeline operator.
The Glass Mountain Pipeline will have an initial capacity of approximately 140,000 barrels per day and 440,000 barrels of intermediate storage. The pipeline will consist of two laterals. One lateral will originate near the town of Alva in Woods County, Oklahoma. The second lateral will originate near the town of Arnett in Ellis County, Oklahoma. The pipeline will increase in diameter where the laterals intersect near Cleo Springs in Major County, Oklahoma and continue east to Cushing, Oklahoma. The pipeline will terminate at Gavilon's Cushing facility, where the joint venture will own one million barrels of crude oil storage. Following pipeline construction, Rose Rock Midstream, LP (NYSE: RRMS), SemGroup's master limited partnership, will serve as the pipeline operator.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Chevron (CVX) earnings fall short while revenue tops estimates in Q1
- Exclusive-Anglo American does not find BHP $39 billion offer attractive
- Workday (WDAY) Announces Resignation of Ann-Marie Campbell from Board
Create E-mail Alert Related Categories
Corporate News, Mergers and AcquisitionsRelated Entities
Crude OilSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!