TULSA, Okla., Jan. 11, 2016 (GLOBE NEWSWIRE) — 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 Midstream
Rose 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.
Certain 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.
CONTACT: Contacts: Investor Relations: Alisa Perkins 918-524-7711 firstname.lastname@example.org Media: Kiley Roberson 918-524-8594 email@example.com