SemGroup unit pays $12.1 million under natural gas liquids marketing agreement assumption

By Caroline Salls

Pittsburgh, Oct. 23 - SemGroup, LP affiliate SemStream, LP obtained court approval to assume a natural gas liquids marketing agreement with Hiland Holdings GP, LP related to the sale of natural gas liquids and condensate at Hiland's Bakken and Badlands plants and gathering systems, according to a Hiland news release.

As a result of the assumption, SemStream paid $12.1 million to Hiland to cover amounts owed for June and July product sales.

After the payment, Hiland said its total pre-bankruptcy credit exposure to SemGroup, related to condensate sales to SemCrude, LLC and outside of the agreement, is roughly $300,000.

Hiland said its third-quarter results of operations will reflect a reversal of $7.9 million of its $8.1 million allowance for doubtful accounts and bad debt expense previously recorded on its second-quarter income statement.

SemGroup, a Tulsa, Okla., privately held limited partnership that provides midstream services to North America's energy industry, filed for bankruptcy on July 22 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 08-11525.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.