Rose Rock Midstream, L.P. Announces Distributions on Limited Partner Units
January 11 2016 - 8:49PM
Rose Rock Midstream®, L.P. (NYSE:RRMS) announced today that the
Board of Directors of its general partner has declared a cash
distribution with respect to the fourth quarter of 2015 of $0.66
per unit, or $2.64 per unit on an annualized basis. This
distribution represents an increase of approximately 6.5% over the
distribution of $0.62 per unit with respect to the fourth quarter
of 2014.
The distribution will be paid on February 12,
2016 to all unitholders of record on February 2, 2016.
“We expect to maintain our current quarterly
distribution of $0.66 per unit and distribution coverage of 1.0
times or greater throughout 2016, which if necessary, may include
some level of support from our general partner,” said Carlin
Conner, chief executive officer of Rose Rock Midstream’s general
partner. “The partnership remains well-positioned with good assets
supported by significant minimum volume commitments, a strong
balance sheet, ample liquidity and a well-capitalized, supportive
general partner with solid dividend coverage to withstand this weak
commodity price environment.”
Additionally, at this time, due to current
market conditions, Rose Rock is not expecting to acquire SemGas,
L.P., the U.S. gas business, from its general partner, SemGroup
Corporation.
Rose Rock anticipates announcing 2016 guidance
along with the partnership’s fourth quarter 2015 results after the
market closes on Thursday, February 25, 2016.
About Rose Rock MidstreamRose Rock Midstream®,
L.P. (NYSE:RRMS) is a growth-oriented Delaware limited partnership
formed by SemGroup® Corporation (NYSE:SEMG) to own, operate,
develop and acquire a diversified portfolio of midstream energy
assets. Headquartered in Tulsa, OK, Rose Rock Midstream provides
crude oil gathering, transportation, storage and marketing services
with the majority of its assets strategically located in or
connected to the Cushing, Oklahoma crude oil marketing hub.
This release is a qualified notice under Treasury Regulation
Section 1.1446-4(b). Brokers and nominees should treat 100%
of Rose Rock Midstream, L.P.’s distributions to foreign investors
as being attributable to income that is effectively connected with
a United States trade or business. Therefore, distributions
to foreign investors are subject to federal income tax withholding
at the highest applicable effective tax rate.
Forward-Looking StatementsCertain matters
contained in this Press Release include “forward-looking
statements.” All statements, other than statements of
historical fact, included in this Press Release including the
prospects of our industry, our anticipated financial performance,
including distributable cash flow, cash distributions, management's
plans and objectives for future operations, capital investments,
business prospects, outcome of regulatory proceedings, market
conditions and other matters, may constitute forward-looking
statements. Although we believe that the expectations reflected in
these forward-looking statements are reasonable, we cannot assure
you that these expectations will prove to be correct. These
forward-looking statements are subject to certain known and unknown
risks and uncertainties, as well as assumptions that could cause
actual results to differ materially from those reflected in these
forward-looking statements. Factors that might cause actual results
to differ include, but are not limited to, insufficient cash from
operations following the establishment of cash reserves and payment
of fees and expenses to pay expected distributions; any sustained
reduction in demand for crude oil in markets served by our
midstream assets; our ability to obtain new sources of supply of
crude oil; the amount of collateral required to be posted from time
to time in our purchase, sale or derivative transactions;
competition from other midstream energy companies; our ability to
comply with the covenants contained in the instruments governing
our indebtedness and to maintain certain financial ratios required
by our credit facility; our ability to access credit and capital
markets; our ability to renew or replace expiring storage,
transportation and related contracts; the loss of or a material
nonpayment or nonperformance by any of our key customers; the
overall forward market for crude oil; the possibility that our
hedging activities may result in losses or may have a negative
impact on our financial results; weather and other natural
phenomena; cyber attacks involving our information systems and
related infrastructure; hazards or operating risks incidental to
the gathering, transporting or storing of crude oil; our failure to
comply with new or existing environmental laws or regulations; and
the possibility that the construction or acquisition of new assets
may not result in the corresponding anticipated revenue increases;
as well as other risk factors discussed from time to time in each
of our documents and reports filed with the SEC.
Readers are cautioned not to place undue reliance on any
forward-looking statements contained in this Press Release, which
reflect management's opinions only as of the date hereof. Except as
required by law, we undertake no obligation to revise or publicly
release the results of any revision to any forward-looking
statements.
Contacts:
Investor Relations:
Alisa Perkins
918-524-7711
roserockir@rrmidstream.com
Media:
Kiley Roberson
918-524-8594
kroberson@rrmidstream.com
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