Hiland Addresses SemGroup, L.P. Bankruptcy Filing
July 23 2008 - 6:30PM
PR Newswire (US)
ENID, Okla., July 23 /PRNewswire-FirstCall/ -- Hiland Holdings GP,
LP (NASDAQ:HPGP) and Hiland Partners, LP (NASDAQ:HLND) (the
"Partnership") today updated the status of the Partnership's
product sales to certain affiliates of SemGroup, L.P. in response
to the bankruptcy of SemGroup, L.P. and certain of its affiliates
("SemGroup"). As disclosed in the Partnership's public filings with
the Securities and Exchange Commission, the Partnership has
historically sold natural gas liquids and condensate that are
produced at its Bakken and Badlands plants and gathering systems to
SemGroup. The Partnership currently has an account receivable of
approximately $8 million from SemGroup relating to product sales
made during June 2008 and estimates additional uninvoiced product
sales of approximately $5 million from July 1 through July 18,
2008. Any potential accounts receivable write-off related to the
Partnership's exposure to SemGroup is not expected to cause the
Partnership to be out of compliance with its covenants under its
credit facility or impact its liquidity position in any material
respect. The Partnership has made temporary arrangements for its
product sales while assessing its options in light of SemGroup's
bankruptcy. The Partnership does not anticipate that the SemGroup
bankruptcy will cause it to lower its distribution guidance or
impede the execution of its current growth capital expenditure
program. About the Hiland Companies Hiland Partners, LP is a
publicly traded midstream energy partnership engaged in gathering,
compressing, dehydrating, treating, processing and marketing
natural gas, and fractionating, or separating, natural gas liquids,
or NGLs. The Partnership also provides air compression and water
injection services for use in oil and gas secondary recovery
operations. The Partnership's operations are primarily located in
the Mid-Continent and Rocky Mountain regions of the United States.
Hiland Partners, LP's midstream assets consist of fourteen natural
gas gathering systems with approximately 2,030 miles of gathering
pipelines, five natural gas processing plants, seven natural gas
treating facilities and three NGL fractionation facilities. The
Partnership's compression assets consist of two air compression
facilities and a water injection plant. Hiland Holdings GP, LP owns
the two percent general partner interest, 2,321,471 common units
and 3,060,000 subordinated units in Hiland Partners, LP, and the
incentive distribution rights of Hiland Partners, LP. This press
release may include certain statements concerning expectations for
the future that are forward-looking statements. Such
forward-looking statements are subject to a variety of known and
unknown risks, uncertainties, and other factors that are difficult
to predict and many of which are beyond management's control. An
extensive list of factors that can affect future results are
discussed in the Partnership's Annual Report on Form 10-K and other
documents filed from time to time with the Securities and Exchange
Commission. The Partnership undertakes no obligation to update or
revise any forward-looking statements to reflect new information or
events. The information contained in this press release is
available on the Partnership's website at
http://www.hilandpartners.com/. DATASOURCE: Hiland Partners, LP
CONTACT: Matt Harrison Vice President Finance of Hiland Partners,
LP, +1-580-242-6040 Web site: http://www.hilandpartners.com/
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