SEMG & RRMS 1Q 2016 Results

First Quarter 2016 ResultsEarnings Conference Call - May 6, 2016

Forward-looking InformationCertain matters contained in this presentation include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended,and Section 21E of the Securities Exchange Act of 1934, as amended. We make these forward-looking statements in reliance on the safe harbor protectionsprovided under the Private Securities Litigation Reform Act of 1995.

All statements, other than statements of historical fact, included in this presentation including the prospects of our industry, our anticipated financial performance,our anticipated annual dividend growth rate, management's plans and objectives for future operations, planned capital expenditures, business prospects, outcomeof regulatory proceedings, market conditions and other matters, may constitute forward-looking statements. Although we believe that the expectations reflected inthese forward-looking statements are reasonable, we cannot assure you that these expectations will prove to be correct. These forward-looking statements aresubject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected inthese forward-looking statements. Factors that might cause actual results to differ include, but are not limited to, the ability of SemGroup Corporation (SemGroup)to generate sufficient cash flow from operations to enable it to pay its debt obligations and its current and expected dividends or to fund its other liquidity needs;insufficient cash from operations following the establishment of cash reserves and payment of fees and expenses for SemGroup’s subsidiary, Rose RockMidstream, L.P. (Rose Rock), to pay current, expected or minimum quarterly distributions; any sustained reduction in demand for, or supply of, the petroleumproducts we gather, transport, process, market and store; the effect of our debt level on our future financial and operating flexibility, including our ability to obtainadditional capital on terms that are favorable to us; our ability to access the debt and equity markets, which will depend on general market conditions and the creditratings for our debt obligations and equity; the loss of, or a material nonpayment or nonperformance by, any of our key customers; the amount of cash distributions,capital requirements and performance of our investments and joint ventures; the amount of collateral required to be posted from time to time in our purchase, sale orderivative transactions; the impact of operational and developmental hazards and unforeseen interruptions; our ability to obtain new sources of supply of petroleumproducts; competition from other midstream energy companies; our ability to comply with the covenants contained in our credit agreements and the indenturesgoverning our senior notes, including requirements under our credit agreements to maintain certain financial ratios; our ability to renew or replace expiring storage,transportation and related contracts; the overall forward markets for crude oil, natural gas and natural gas liquids; the possibility that the construction or acquisitionof new assets may not result in the corresponding anticipated revenue increases; changes in currency exchange rates; weather and other natural phenomena,including climate conditions; a cyber attack involving our information systems and related infrastructure, or that of our business associates; in the case ofSemGroup, the risks and uncertainties of doing business outside of the U.S., including political and economic instability and changes in local governmental laws,regulations and policies; costs of, or changes in, laws and regulations and our failure to comply with new or existing laws or regulations, particularly with regard totaxes, safety and protection of the environment; the possibility that our hedging activities may result in losses or may have a negative impact on our financial results;general economic, market and business conditions; as well as other risk factors discussed from time to time in each of SemGroup’s and Rose Rock’s documentsand reports filed with the SEC.

Readers are cautioned not to place undue reliance on any forward-looking statements contained in this presentation which reflect management's opinions only as ofthe 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.

SemGroup and Rose Rock Midstream use their Investor Relations website and social media outlets as channels of distribution of material company information.Such information is routinely posted and accessible on our Investor Relations websites at ir.semgroupcorp.com and ir.rrmidstream.com. Both companies are present on Twitter and LinkedIn, follow us at the links below:SemGroup Twitter and LinkedIn Rose Rock Midstream Twitter and LinkedIn

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Non-GAAP Financial MeasuresThis presentation includes financial measures which are not U.S. generally accepted accounting principles (GAAP) measures and are not intended to be used inlieu of GAAP measures. These measures may be used periodically by management when discussing our financial results with investors and analysts and arepresented as management believes they provide additional information and metrics relative to the performance of our businesses. These non-GAAP financialmeasures have important limitations as analytical tools because they exclude some, but not all, items that affect the most directly comparable GAAP financialmeasures. You should not consider non-GAAP measures in isolation or as substitutes for analysis of our results as reported under GAAP. Managementcompensates for the limitations of our non-GAAP measures as analytical tools by reviewing the comparable GAAP measures, understanding the differencesbetween the non-GAAP measure and the most comparable GAAP measure and incorporating this knowledge into its decision-making processes. We believe thatinvestors benefit from having access to the same financial measures that our management uses in evaluating our operating results. Because all companies do notuse identical calculations, our presentations of non-GAAP measures may be different from similarly titled measures of other companies, thereby diminishingtheir utility.

SemGroupSemGroup’s non-GAAP measures, Adjusted EBITDA and cash available for dividends, are not GAAP measures and are not intended to be used in lieu of GAAPpresentation of net income (loss), which is the most closely associated GAAP measure. Adjusted EBITDA represents earnings before interest, taxes, depreciationand amortization, adjusted for selected items that SemGroup believes impact the comparability of financial results between reporting periods. AlthoughSemGroup presents selected items that it considers in evaluating its performance, you should also be aware that the items presented do not represent all itemsthat affect comparability between the periods presented. Variations in SemGroup’s operating results are also caused by changes in volumes, prices, exchangerates, mechanical interruptions and numerous other factors. These types of variances are not separately identified in this presentation. Cash available fordividends is based on Adjusted EBITDA, as described above, adjusted to exclude the earnings of our subsidiary, Rose Rock Midstream, cash income taxes, cashinterest expense and maintenance capital expenditures and include cash distributions received from Rose Rock Midstream.

Rose Rock MidstreamRose Rock’s non-GAAP financial measures, Adjusted gross margin, Adjusted EBITDA and distributable cash flow, are not GAAP measures and are not intendedto be used in lieu of GAAP presentation of operating income (loss) which is the GAAP measure most directly comparable to Adjusted gross margin, net income(loss) and cash provided by (used in) operating activities which are the GAAP measures most directly comparable to Adjusted EBITDA, and net income (loss)which is the GAAP measure most directly comparable to distributable cash flow. Adjusted gross margin represents total revenues minus cost of products soldand unrealized gain (loss) on derivatives. Adjusted EBITDA represents net income before interest expense, income tax expense (benefit), depreciation andamortization, earnings from equity method investments and any other non-cash adjustments to reconcile net income to net cash provided by operating activitiesplus cash distributions from equity method investments. Distributable cash flow represents Adjusted EBITDA, as described above, adjusted to exclude cashincome taxes, cash interest expense and maintenance capital expenditures.

3

$400

$300

$200

$100

$02014 2015 2016E

SEMG Adjusted EBITDA(in millions)

First Quarter 2016 Results

$305$287$270 - $320

4

$200

$150

$100

$50

$02014 2015 2016E

RRMS Adjusted EBITDA(in millions)

$175

$128

$165 - $185

Adjusted EBITDA(1)

1Q 2016 4Q 2015 2016 GuidanceSemGroup(2) $77.7 million $79.3 million $270 - $320 millionRose Rock Midstream $49.0 million $46.6 million $165 - $185 million

(1) Non-GAAP Financial Data Reconciliations are included in the Appendix to this presentation(2) SemGroup includes fully consolidated Rose Rock Midstream

2016 Capital Expenditure Guidance2016 Capital Expenditures – $455 million

n Maurepas Pipelinen Rose Rock Midstreamn Natural Gasn Other Growth Projectsn Maintenance

$325

10%

72%

1%12%

$45

$5$55__

¬ Key Committed Projects - Crude Projects

• Maurepas Pipeline (expected completion 4Q 2016): $325 million• Isabel Pipeline (completed March 2016): $9 million

- Natural Gas Projects• Northern OK well connects & compression: $15 million• KA Plant Projects: $18 million • Wapiti Pipeline Expansion (expected completion 3Q 2016): $9 million

- Maintenance Capital• SemGroup: $45 million • Rose Rock: $10 million

¬ Focus on completing projects already in progress andmaintain existing assets

¬ Prudent organic capital investments at attractive EBITDAmultiples

5

$255%

Capital market access not needed in 2016

First Quarter 2016 Adjusted EBITDA(1)

(1) Non-GAAP Financial Data Reconciliations are included in the Appendix to this presentation(2) Rose Rock Transportation segment adjusted EBITDA includes equity method investments on a cash basis

Segment Adjusted EBITDA(in millions, unaudited) 1Q 2016 4Q 2015

Crude - Transportation $32.0 $31.3Crude - Facilities 9.6 8.3Crude - Supply and Logistics 9.3 9.5SemGas 12.4 12.5SemCAMS 10.3 11.1SemLogistics 2.8 2.6SemMaterials Mexico 2.6 1.5SemStream 4.9 4.8Corporate and Other (6.2) (2.3)

SemGroup $77.7 $79.3

Transportation(2) $31.8 $29.4Facilities 9.6 8.3Supply and Logistics 9.3 9.5Corporate and Other (1.7) (0.6)

Rose Rock Midstream $49.0 $46.6

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Leverage & Liquidity

(in millions, unaudited)

SemGroup(1) Rose RockMarch 31, 2016 March 31, 2016

$500 million revolver - 2018 $70.0$585 million revolver - 2018 24.0

7.500% Senior unsecured notes - 2021 300.05.625% Senior unsecured notes - 2022 400.05.625% Senior unsecured notes - 2023 350.0

Total consolidated debt $370.0 $774.0

Compliance leverage ratio(2) 1.5x 4.1x

Target leverage 3.0x 4.5x

Liquidity:Cash and cash equivalents(3) $43.3 $10.7Revolver availability(4) 424.7 527.6

Total liquidity $468.0 $538.3

(1) SemGroup stand-alone basis(2) Calculated per revolving credit agreement definitions; maximum total leverage covenant of 5.5x(3) SemGroup cash excludes Rose Rock and SemMaterials Mexico(4) Revolver availability excludes outstanding letters of credit

$1 Billion of Combined Liquidity

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8

A Look Ahead

Preserve BalanceSheet Strength

Ample Liquidity - NoCapital Market Needs

in 2016

Focus onDownstreamOpportunities

Maintain Dividends &Distributions

APPENDIX

SemGroup’s Fee-based Business Model

Margin Descriptions

¬ Fixed Fee– Storage fees– Transportation fees– Unloading fees– Gathering and processing fees

¬ Variable Fee– Gas processing – percent of

proceeds

¬ Marketing– Back-to-back marketing and

blending transactions

(1) LTM March 31, 2016

Fixed Fee Variable Fee MarketingSemGas 74% 26%SemCAMS 100%SemLogistics 100%SemMaterials Mexico 100%White Cliffs Pipeline 100%Rose Rock Midstream 84% 16%

Margin Contribution(1)

n Fixed Fee n Variable Fee n Marketing

88%

7%5%

10

250

200

150

100

50

0

1Q 2Q 3Q 4Q 1Q

125.6 151.0 157.2191.2 209.8

250

200

150

100

50

0

1Q 2Q 3Q 4Q 1Q

111.1 119.1 109.4 109.6 102.4

76.893.2 91.6 91.5 93.8

250

200

150

100

50

0

1Q 2Q 3Q 4Q 1Q

139.2 121.3 120.7 130.3 142.3

64.9 71.8 61.5 59.9 58.9

2015 2016

Crude Key Performance Metrics

(1) Weighted average term of storage contracts(2) Prior period volumes recast to include intersegment volumes for comparability(3) Volumes on pipelines 100% owned by RRMS(4) Reflects 100% throughput on Joint Venture pipelines

Transportation Volumes(Thousand Barrels per Day)

Supply and Logistics Volumes(2)

(Thousand Barrels per Day)Facilities - Cushing Storage

7.6 million Barrels Capacity

Joint Venture Transportation Volumes

(Thousand Barrels per Day)(4)

n Third-party contracted(1) n Operational / Marketing n Uncontracted

n White Cliffs Pipeline n Glass Mountain Pipeline

0.7

11

2015 2016

2015 2016

187.9212.3 201.0 201.1 196.2

8

6

4

2

0

2016 2017 2018 2019

6.3 5.5 4.6

1.1

1.31.4

1.4

1.4

1.6

5.1

n Pipelines(3) n Field Services

SemCAMS Avg Throughput Volume (mmcf/d)

600500400300200100

0

1Q 2Q 3Q 4Q 1Q

302.5 288.8 254.6 267.4 270.4

91.9 96.6 93.4 106.0 114.3

SemGas Northern OK Avg Processed Volume (mmcf/d)

Capacity Processing Volumes

600500400300200100

0

1Q 2Q 3Q 4Q 1Q

369.0 384.2 368.0 336.1 325.9

2015 2016

Natural Gas Key Performance Metrics

384.7394.4 385.3 348.0 373.4

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2015 2016Capacity n K3 Plant n KA Plant

SemGroup Consolidated Balance Sheets

(in thousands, unaudited, condensed) March 31, 2016

December 31, 2015

ASSETSCurrent assets $ 449,102 $ 480,381Property, plant and equipment, net 1,629,751 1,566,821Goodwill and other intangible assets 194,504 210,255Equity method investments 503,914 551,078Other noncurrent assets, net 24,561 45,374Total assets $ 2,801,832 $ 2,853,909

LIABILITIES AND OWNERS' EQUITYCurrent liabilities:

Current portion of long-term debt $ 27 $ 31Other current liabilities 316,699 376,996

Total current liabilities 316,726 377,027

Long-term debt, excluding current portion 1,122,588 1,057,816Other noncurrent liabilities 204,150 222,710Total liabilities 1,643,464 1,657,553

Total owners' equity 1,158,368 1,196,356Total liabilities and owners' equity $ 2,801,832 $ 2,853,909

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SemGroup Consolidated Statements of Operations and Comprehensive Income(in thousands, except per share amounts, unaudited, condensed) Three Months Ended

March 31, December 31,2016 2015 2015

Revenues $ 314,851 $ 298,310 $ 382,493Expenses:

Costs of products sold, exclusive of depreciation and amortization shown below 196,947 192,072 268,680Operating 50,192 53,090 57,286General and administrative 21,060 32,310 19,094Depreciation and amortization 24,047 23,734 26,452Loss on disposal or impairment, net 13,307 1,058 9,993Total expenses 305,553 302,264 381,505

Earnings from equity method investments 23,071 20,559 20,687Gain (loss) on issuance of common units by equity method investee (41) — 352Operating income 32,328 16,605 22,027Other expenses net 59,981 6,087 19,082Income (loss) from continuing operations before income taxes (27,653) 10,518 2,945Income tax expense (benefit) (21,407) 4,742 3,921Income (loss) from continuing operations (6,246) 5,776 (976)Loss from discontinued operations, net of income taxes (2) — (1)Net income (loss) (6,248) 5,776 (977)

Less: net income (loss) attributable to noncontrolling interests 9,020 4,310 (1,661)Net income (loss) attributable to SemGroup Corporation $ (15,268) $ 1,466 $ 684Net income (loss) attributable to SemGroup Corporation $ (15,268) $ 1,466 $ 684Other comprehensive loss, net of income taxes (4,109) (9,060) (7,671)Comprehensive loss attributable to SemGroup Corporation $ (19,377) $ (7,594) $ (6,987)

Net income (loss) per common shareBasic $ (0.35) $ 0.03 $ 0.02Diluted $ (0.35) $ 0.03 $ 0.02

Weighted average shares (thousands):Basic 43,870 43,717 43,824Diluted 43,870 43,940 43,971

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SemGroup Non-GAAP Adjusted EBITDA Calculation(in thousands, unaudited) Three Months Ended

March 31, December 31,Reconciliation of net income to Adjusted EBITDA: 2016 2015 2015Net income (loss) $ (6,248) $ 5,776 $ (977)

Add: Interest expense 18,935 14,591 19,092Add: Income tax expense (benefit) (21,407) 4,742 3,921Add: Depreciation and amortization expense 24,047 23,734 26,452

EBITDA 15,327 48,843 48,488

Selected Non-Cash Items and Other Items Impacting Comparability 62,340 21,139 30,837

Adjusted EBITDA $ 77,667 $ 69,982 $ 79,325

Selected Non-Cash Items andOther Items Impacting ComparabilityLoss on disposal or impairment, net $ 13,307 $ 1,058 $ 9,993Loss from discontinued operations, net of income taxes 2 — 1Foreign currency transaction (gain) loss 1,469 (519) 132Remove NGL equity losses (earnings) including gain on issuance of common units (2,191) 305 (346)Remove loss (gain) on sale or impairment of NGL units 39,764 (7,894) —NGL cash distribution 4,873 5,015 4,839M&A transaction related costs — 10,000 —Inventory valuation adjustments including equity method investees — 1,187 1,810Employee severance expense 259 — 48Unrealized loss (gain) on derivative activities (4,548) 2,645 5,330Depreciation and amortization included within equity earnings 6,539 6,376 6,173Bankruptcy related expenses — 189 —Non-cash equity compensation 2,866 2,777 2,857

Selected Non-Cash items andOther Items Impacting Comparability $ 62,340 $ 21,139 $ 30,837

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SemGroup Cash Available for Dividends

(in thousands, unaudited) Three Months EndedMarch 31, December 31,

Reconciliation of net income to cash available for dividends: 2016 2015 2015Net income (loss) $ (6,248) $ 5,776 $ (977)

Add: Interest expense 18,935 14,591 19,092Add: Income tax expense (benefit) (21,407) 4,742 3,921Add: Depreciation and amortization expense 24,047 23,734 26,452

EBITDA 15,327 48,843 48,488Selected non-cash items and other items impacting comparability 32,163 (12,346) 1,201SemGroup stand-alone Adjusted EBITDA 47,490 36,497 49,689

Less: Cash interest expense 5,913 6,021 6,227Less: Cash paid for income taxes 1,137 3,299 1,008Less: Maintenance capital expenditures 14,523 3,308 11,353

Cash available for dividends $ 25,917 $ 23,869 $ 31,101

Dividends declared $ 19,736 $ 16,632 $ 19,877

Coverage 1.3x 1.4x 1.6x

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SemGroup Cash Available for Dividends (Continued)


2016 2015 2015Selected Non-Cash Items andOther Items Impacting ComparabilityRemove Rose Rock EBITDA $ (46,798) $ (32,749) $ (24,691)Rose Rock distributions received 19,606 10,290 19,602Loss (gain) on disposal or impairment, net 13,013 906 (107)Loss (income) from discontinued operations, net of income taxes 2 — 1Foreign currency transaction (gain) loss 1,469 (519) 132Remove NGL equity losses (earnings) including gain on issuance of common units (2,191) 305 (346)Remove loss (gain) on sale or impairment of NGL units 39,764 (7,894) —NGL cash distribution 4,873 5,015 4,839M&A transaction related costs — 10,000 —Employee severance expense 259 — —Bankruptcy related expenses — 189 —Non-cash equity compensation 2,166 2,111 1,771Selected Non-Cash items and

Other Items Impacting Comparability $ 32,163 $ (12,346) $ 1,201

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SemGroup Non-GAAP Financial Data Reconciliations


2016 2015 2015Net income $ 19,296 $ 15,750 $ 6,057

Add: Interest expense 264 156 254Add: Depreciation and amortization expense 5,859 8,618 8,822

EBITDA 25,419 24,524 15,133Selected Non-Cash Items and

Other Items Impacting Comparability 6,606 6,531 16,137Adjusted EBITDA $ 32,025 $ 31,055 $ 31,270

Selected Non-Cash Items and Other Items Impacting Comparability

Loss on disposal or impairment, net $ 67 $ 155 $ 9,461Employee severance expense — — 48Depreciation and amortization included within

equity earnings 6,539 6,376 6,173Inventory valuation adjustments including equity method investees — — 455Selected Non-Cash items and

Other Items Impacting Comparability $ 6,606 $ 6,531 $ 16,137

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Crude - Transportation Segment



2016 2015 2015Net income $ 7,703 $ 7,033 $ 6,705

Add: Depreciation and amortization expense 1,884 1,369 1,603EBITDA 9,587 8,402 8,308

Selected Non-Cash Items and Other Items Impacting Comparability — — —

Adjusted EBITDA $ 9,587 $ 8,402 $ 8,308

19

Crude - Facilities Segment



2016 2015 2015Net income $ 13,461 $ 2,512 $ 2,598

Add: Interest expense 140 99 132Add: Depreciation and amortization expense 40 39 40


Other Items Impacting Comparability (4,321) 3,715 6,685Adjusted EBITDA $ 9,320 $ 6,365 $ 9,455


Loss (gain) on disposal or impairment, net $ 227 $ (3) $ —Unrealized loss (gain) on derivative activities (4,548) 2,531 5,330Inventory valuation adjustments including equity method investees — 1,187 1,355Selected Non-Cash items and

Other Items Impacting Comparability $ (4,321) $ 3,715 $ 6,685

20

Crude - Supply and Logistics Segment



2016 2015 2015Net income (loss) $ (13,469) $ 4,891 $ 16

Add: Interest expense 3,555 2,851 3,538Add: Depreciation and amortization expense 8,922 7,138 8,705

EBITDA (992) 14,880 12,259Selected Non-Cash Items and

Other Items Impacting Comparability 13,391 200 238Adjusted EBITDA $ 12,399 $ 15,080 $ 12,497


Loss (gain) on disposal or impairment, net $ 13,052 $ (1) $ (62)Non-cash equity compensation 339 201 300Selected Non-Cash items and

Other Items Impacting Comparability $ 13,391 $ 200 $ 238

21

SemGas Segment



2016 2015 2015Net income $ 2,756 $ 1,199 $ 3,646

Add: Interest expense 2,226 3,112 2,243Add: Income tax expense 965 551 1,319Add: Depreciation and amortization expense 3,951 3,066 3,489


Other Items Impacting Comparability 383 424 397Adjusted EBITDA $ 10,281 $ 8,352 $ 11,094


Foreign currency transaction (gain) loss $ 6 $ (44) $ (1)Non-cash equity compensation 377 468 398Selected Non-Cash items and

Other Items Impacting Comparability $ 383 $ 424 $ 397

22

SemCAMS Segment



2016 2015 2015Net income (loss) $ (246) $ (1,926) $ 1,276

Add: Interest expense 376 465 405Add: Income tax expense (benefit) 59 (369) (1,823)Add: Depreciation and amortization expense 1,960 2,040 2,176

EBITDA 2,149 210 2,034Selected Non-Cash Items and



Foreign currency transaction loss $ 510 $ 651 $ 425Non-cash equity compensation 177 154 173Selected Non-Cash items and


23

SemLogistics Segment



2016 2015 2015Net income $ 696 $ 3,011 $ 42

Add: Income tax expense 607 990 215Add: Depreciation and amortization expense 941 1,053 993




Loss on disposal of long-lived assets, net $ (39) $ (19) $ (20)Foreign currency transaction loss 256 131 111Non-cash equity compensation 153 107 143Selected Non-Cash items and


24

SemMaterials México Segment



2016 2015 2015Net income (loss) $ (36,200) $ 8,908 $ 1,708

Add: Interest expense (income) (1,382) (1,322) (1,366)EBITDA (37,582) 7,586 342

Selected Non-Cash Items and Other Items Impacting Comparability 42,447 (2,574) 4,494

Adjusted EBITDA $ 4,865 $ 5,012 $ 4,836


Remove NGL equity losses (earnings) including gain on issuance of common units $ (2,191) $ 305 $ (346)Remove loss (gain) on sale or impairment of NGL units 39,764 (7,894) —NGL cash distribution 4,873 5,015 4,839Non-cash equity compensation 1 — 1Selected Non-Cash items and

Other Items Impacting Comparability $ 42,447 $ (2,574) $ 4,494

25

SemStream Segment



2016 2015 2015Net loss $ (244) $ (35,602) $ (23,025)

Add: Interest expense 13,756 9,230 13,886Add: Income tax expense (benefit) (23,038) 3,570 4,210Add: Depreciation and amortization expense 490 411 624

EBITDA (9,036) (22,391) (4,305)Selected Non-Cash Items and

Other Items Impacting Comparability 2,777 11,819 2,054Adjusted EBITDA $ (6,259) $ (10,572) $ (2,251)


Loss from discontinued operations, net of income taxes $ 2 $ — $ 1Loss on disposal or impairment, net — 926 614Foreign currency transaction (gain) loss 697 (1,257) (403)Employee severance expense 259 — —Unrealized loss on derivative activities — 114 —M&A transaction related costs — 10,000 —Bankruptcy related expenses — 189 —Non-cash equity compensation 1,819 1,847 1,842Selected Non-Cash items and

Other Items Impacting Comparability $ 2,777 $ 11,819 $ 2,054

26

Corporate & Other Segment

SemGroup 2016 Adjusted EBITDA Guidance

(1) Guidance is on a cash basis for equity investments in NGL, includes fully consolidated Rose Rock Midstream

(in millions, unaudited) 2016 Guidance(1)

Mid-point

Net income $ 34.0

Add: Interest expense 83.0

Add: Income tax expense 10.0

Add: Depreciation and amortization 126.0

EBITDA $ 253.0

Selected Non-Cash and Other Items Impacting Comparability 42.0Adjusted EBITDA $ 295.0

Selected Non-Cash and Other Items Impacting Comparability

Depreciation and amortization included within equity earnings $ 28.0

Non-cash equity compensation 14.0

Selected Non-Cash and Other Items Impacting Comparability $ 42.0

27

SemGroup 2016 Cash Available for Dividends Guidance(in millions, unaudited) 2016 Guidance

Mid-pointNet income $ 34.0

Add: Interest expense 83.0Add: Income tax expense 10.0Add: Depreciation and amortization 126.0

EBITDA 253.0Selected non-cash and other items impacting comparability (63.0)

SemGroup stand-alone Adjusted EBITDA $ 190.0

Less: Cash interest expense 29.0Less: Cash paid for income taxes 10.0Less: Maintenance capital expenditures 45.0

Cash available for dividends $ 106.0

Expected dividends declared $ 79.0

Coverage 1.3x

Selected non-cash and other items impacting comparabilityRose Rock EBITDA $ (148.5)Rose Rock distributions received, net of General Partner support 74.5Non-cash equity compensation 11.0

Selected Non-Cash and Other Items Impacting Comparability $ (63.0)

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Rose Rock Midstream Consolidated Balance Sheets

(in thousands, unaudited, condensed) March 31, 2016

December 31, 2015

ASSETSCurrent assets $ 290,474 $ 319,614Property, plant and equipment, net 443,415 441,596Equity method investment 433,572 438,291Other noncurrent assets, net 45,376 46,089Total assets $ 1,212,837 $ 1,245,590

LIABILITIES AND PARTNERS' CAPITALCurrent liabilities $ 229,164 $ 283,029Long-term debt 756,921 732,356Total liabilities 986,085 1,015,385

Partners’ capital 226,752 230,205Total liabilities and partners' capital $ 1,212,837 $ 1,245,590

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Rose Rock Midstream Consolidated Statements of Income(in thousands, except per unit data, unaudited) Three Months Ended

March 31, December 31,2016 2015 2015

Revenues, including revenues from affiliatesProduct $ 176,622 $ 106,567 $ 218,020Service 27,329 28,126 27,609

Total revenues 203,951 134,693 245,629

Expenses, including expenses from affiliatesCosts of products sold, exclusive of depreciation

and amortization 151,391 96,237 207,155Operating 21,407 20,799 19,603General and administrative 4,900 5,620 4,797Depreciation and amortization 7,893 10,143 10,613Loss on disposal or impairment, net 294 152 10,100Total expenses 185,885 132,951 252,268

Earnings from equity method investments 20,839 20,864 20,693Operating income 38,905 22,606 14,054

Other expenses:Interest expense 12,437 8,006 12,494Other income — — (24)Total other expenses, net 12,437 8,006 12,470

Net income $ 26,468 $ 14,600 $ 1,584

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(in thousands, except per unit data, unaudited) Three Months Ended

March 31, December 31,2016 2015 2015

Net income allocated to general partner $ 5,868 $ 4,742 $ 5,366Net income (loss) allocated to common unitholders $ 20,600 $ 9,858 $ (3,782)

Net income (loss) per limited partner unit:Common unit (basic) $ 0.56 $ 0.28 $ (0.10)Common unit (diluted) $ 0.56 $ 0.28 $ (0.10)

Basic weighted average number of limited partner units outstanding:Common units 36,809 34,804 36,796

Diluted weighted average number of limited partner units outstanding:Common units 36,835 34,847 36,831

Rose Rock Midstream Consolidated Statements of Income (Continued)

31

Rose Rock Midstream Non-GAAP Financial Data Reconciliations (in thousands, unaudited) Three Months Ended

March 31, December 31,2016 2015 2015

Reconciliation of operating income to Adjusted gross margin:Operating income $ 38,905 $ 22,606 $ 14,054Add:

Operating expense 21,407 20,799 19,603General and administrative expense 4,900 5,620 4,797Depreciation and amortization expense 7,893 10,143 10,613Loss on disposal or impairment, net 294 152 10,100

Less:Earnings from equity method investments 20,839 20,864 20,693Non-cash unrealized gain (loss) on derivatives, net 4,548 (2,531) (5,330)

Adjusted gross margin $ 48,012 $ 40,987 $ 43,804Reconciliation of net income to Adjusted EBITDA:

Net income $ 26,468 $ 14,600 $ 1,584Add:

Interest expense 12,437 8,006 12,494Depreciation and amortization expense 7,893 10,143 10,613Cash distributions from equity method investments 26,913 26,065 25,241Inventory valuation adjustment — 1,187 1,355Provision for uncollectible accounts receivable 38 — 257Non-cash equity compensation 365 298 341Loss on disposal or impairment, net 294 152 10,100

Less:Earnings from equity method investments 20,839 20,864 20,693Impact from derivative instruments:

Total gain (loss) on derivatives, net 3,354 (644) 4,955Total realized gain (loss) (cash flow) on derivatives, net 1,194 (1,887) (10,285)

Non-cash unrealized gain (loss) on derivatives, net 4,548 (2,531) (5,330)Adjusted EBITDA $ 49,021 $ 42,118 $ 46,622

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Rose Rock Midstream Non-GAAP Financial Data Reconciliations

(in thousands, unaudited) Three Months Ended

March 31, December 31,2016 2015 2015

Reconciliation of net cash provided by operating activities to Adjusted EBITDA:Net cash provided by (used in) operating activities $ 14,530 $ (7,070) $ 30,549Less:

Changes in operating assets and liabilities, net (16,811) (36,508) 140Add:

Interest expense, excluding amortization of debt issuance costs 11,606 7,479 11,664Distributions from equity method investments in excess of equity in earnings 6,074 5,201 4,549

Adjusted EBITDA $ 49,021 $ 42,118 $ 46,622

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Rose Rock Midstream Distributable Cash Flow(in thousands, unaudited) Three Months Ended

March 31, December 31,2016 2015 2015

Reconciliation of net income to distributable cash flow:Net income $ 26,468 $ 14,600 $ 1,584

Add:Interest expense 12,437 8,006 12,494Depreciation and amortization expense 7,893 10,143 10,613

EBITDA 46,798 32,749 24,691Add:

Loss on disposal or impairment, net 294 152 10,100Cash distributions from equity method investments 26,913 26,065 25,241Provision for uncollectible accounts receivable 38 — 257Inventory valuation adjustment — 1,187 1,355Non-cash equity compensation 365 298 341

Less:Earnings from equity method investments 20,839 20,864 20,693Non-cash unrealized gain (loss) on derivatives, net 4,548 (2,531) (5,330)

Adjusted EBITDA $ 49,021 $ 42,118 $ 46,622Less:

Cash interest expense 11,587 7,454 11,640Maintenance capital expenditures 2,148 927 2,458

Distributable cash flow $ 35,286 $ 33,737 $ 32,524

Distribution declared $ 30,251 $ 28,379 $ 30,224

Distribution coverage ratio 1.2 x 1.2 x 1.1 x

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Transportation SegmentRose Rock Midstream Non-GAAP Financial Data Reconciliations


2016 2015 2015Reconciliation of operating income to Adjusted gross margin:

Operating income $ 19,733 $ 15,906 $ 6,299Add:

Operating expense 18,451 18,328 17,110General and administrative expense 1,138 1,905 2,610Depreciation and amortization expense 5,859 8,618 8,822Loss on disposal or impairment, net 67 155 9,461

Less:Earnings from equity method investments 20,839 20,864 20,693


Net income $ 19,469 $ 15,750 $ 6,066Add:

Interest expense 264 156 254Depreciation and amortization expense 5,859 8,618 8,822Cash distributions from equity method investments 26,913 26,065 25,241Provision for uncollectible accounts receivable 38 — 257Loss on disposal or impairment, net 67 155 9,461

Less:Earnings from equity method investments 20,839 20,864 20,693

Adjusted EBITDA $ 31,771 $ 29,880 $ 29,408

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Facilities SegmentRose Rock Midstream Non-GAAP Financial Data Reconciliations

(in thousands, unaudited) Three Months Ended

March 31, December 31,



Operating expense 2,118 2,271 2,134General and administrative expense 1,174 732 1,045Depreciation and amortization expense 1,884 1,369 1,603


Net income $ 7,703 $ 7,033 $ 6,705Add:

Depreciation and amortization expense 1,884 1,369 1,603Adjusted EBITDA $ 9,587 $ 8,402 $ 8,308

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Supply and Logistics SegmentRose Rock Midstream Non-GAAP Financial Data Reconciliations




Operating expense 838 193 366General and administrative expense 566 163 242Depreciation and amortization expense 40 39 40Loss (gain) on disposal or impairment, net 227 (3) —

Less:Non-cash unrealized gain (loss) on derivatives, net 4,548 (2,531) (5,330)


Net income $ 13,461 $ 2,512 $ 2,598Add:

Interest expense 140 99 132Depreciation and amortization expense 40 39 40Inventory valuation adjustment — 1,187 1,355Loss (gain) on disposal or impairment, net 227 (3) —

Less:Impact from derivative instruments:

Total gain (loss) on derivatives, net 3,354 (644) 4,955Total realized gain (loss) (cash flow) on derivatives, net 1,194 (1,887) (10,285)

Non-cash unrealized gain (loss) on derivatives, net 4,548 (2,531) (5,330)Adjusted EBITDA $ 9,320 $ 6,365 $ 9,455

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Corporate and Other SegmentRose Rock Midstream Non-GAAP Financial Data Reconciliations



Operating loss $ (2,132) $ (2,944) $ (1,680)Add:

Operating expense — 7 (7)General and administrative expense 2,022 2,820 900Depreciation and amortization expense 110 117 148Loss on disposal of long-lived assets, net — — 639

Adjusted gross margin $ — $ — $ —Reconciliation of net income to Adjusted EBITDA:

Net loss $ (14,165) $ (10,695) $ (13,785)Add:

Interest expense 12,033 7,751 12,108Depreciation and amortization expense 110 117 148Non-cash equity compensation 365 298 341Loss on disposal of long-lived assets, net — — 639

Adjusted EBITDA $ (1,657) $ (2,529) $ (549)

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Rose Rock Midstream 2016 Adjusted EBITDA and DCF Guidance(in millions, unaudited) 2016 Guidance

Mid-pointNet income $ 48.5

Add: Interest expense 51.0Add: Depreciation and amortization 49.0EBITDA $ 148.5

Non-Cash and Other Adjustments 26.5Adjusted EBITDA $ 175.0

Less:Cash interest expense 48.0Maintenance capital expenditures 10.0

Add:General Partner support 4.0

Distributable cash flow $ 121.0

Expected cash distributions declared $ 121.0

Coverage 1.0x

Non-Cash and Other AdjustmentsEarnings from equity method investments $ (77.0)Cash distributions from equity method investments (1) 102.0Non-cash equity compensation 1.5

Non-Cash and Other Adjustments $ 26.5

(1) Distributions from equity method investment includes the cash distributions from White Cliffs and Glass Mountainattributable to Rose Rock

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(in thousands, unaudited) Year EndedDecember 31, 2015

Crude -Transportation

Crude -Facilities

Crude -Supply andLogistics SemStream SemCAMS SemLogistics SemMexico SemGas

Corporateand other Consolidated

Net income (loss) $ 44,771 $ 27,928 $ 27,567 $ 31,283 $ 7,879 $ (1,624) $ 8,725 $ 16,704 $ (121,708) $ 41,525Add: Interest expense (income) 778 — 462 (5,376) 10,742 1,746 46 13,162 48,115 69,675Add: Income tax expense (benefit) — — — — 4,847 (2,195) 2,611 — 29,554 34,817Add: Depreciation and amortization expense 35,500 5,829 159 — 12,940 8,543 4,076 31,803 2,032 100,882EBITDA 81,049 33,757 28,188 25,907 36,408 6,470 15,458 61,669 (42,007) 246,899Selected Non-Cash Items and Other Items Impacting Comparability 35,600 — 4,491 (6,857) 773 1,399 1,193 2,777 19,007 58,383Adjusted EBITDA $ 116,649 $ 33,757 $ 32,679 $ 19,050 $ 37,181 $ 7,869 $ 16,651 $ 64,446 $ (23,000) $ 305,282


Loss (gain) on disposal of long-lived assets, net $ 9,621 $ — $ (3) $ — $ (917) $ — $ 85 $ 1,832 $ 854 $ 11,472Loss from discontinued operations, net of income taxes — — — — — — — — 4 4Foreign currency transaction (gain) loss — — — — 103 799 605 — (2,574) (1,067)Remove NGL equity earnings including gain on issuance of commonunits — — — (11,416) — — — — — (11,416)Remove gain on sale of NGL units — — — (14,517) — — — — — (14,517)NGL cash distribution — — — 19,074 — — — — — 19,074Employee severance expense 75 — 4 — — — — — 11 90Unrealized loss (gain) on derivative activities — — 1,900 — — — — — 114 2,014M&A transaction related costs — — — — — — — — 10,000 10,000Depreciation and amortization included within equity earnings 25,307 — — — — — — — — 25,307Inventory valuation adjustment including equity method investees 597 — 2,590 — — — — — — 3,187Bankruptcy related expenses — — — — — — — — 224 224Legal settlement — — — — — — — — 3,394 3,394Non-cash equity compensation — — — 2 1,587 600 503 945 6,980 10,617Selected Non-Cash Items and Other Items Impacting Comparability $ 35,600 $ — $ 4,491 $ (6,857) $ 773 $ 1,399 $ 1,193 $ 2,777 $ 19,007 $ 58,383

SemGroup Reconciliation of Net Income to Adjusted EBITDA

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(in thousands, unaudited) Year EndedDecember 31, 2014

Crude -Transportation

Crude -Facilities

Crude -Supply andLogistics SemStream SemCAMS SemLogistics SemMexico SemGas

Corporateand other Consolidated

Net income (loss) $ 31,301 $ 26,921 $ 24,610 $ 70,632 $ 14,318 $ (10,072) $ 5,900 $ 6,792 $ (118,345) $ 52,057Add: Interest expense (income) 11,727 — 502 (5,140) 13,558 1,528 166 8,570 18,133 49,044Add: Income tax expense (benefit) — — — — 3,135 (2,231) 4,053 — 41,556 46,513Add: Depreciation and amortization expense 33,679 5,365 549 — 14,295 10,005 6,031 26,353 2,120 98,397EBITDA 76,707 32,286 25,661 65,492 45,306 (770) 16,150 41,715 (56,536) 246,011Selected Non-Cash Items and Other Items Impacting Comparability 21,582 (34) 4,004 (42,165) 590 (1,083) 621 21,053 36,862 41,430Adjusted EBITDA $ 98,289 $ 32,252 $ 29,665 $ 23,327 $ 45,896 $ (1,853) $ 16,771 $ 62,768 $ (19,674) $ 287,441


Loss (gain) on disposal of long-lived assets, net $ 467 $ (34) $ (42) $ — $ (950) $ (2,490) $ (53) $ 20,092 $ 15,602 $ 32,592Loss (income) from discontinued operations, net of income taxes — — — — — (1) — — 2 1Foreign currency transaction (gain) loss — — — — 42 821 279 — (1,228) (86)Remove NGL equity earnings including gain on issuance of commonunits — — — (31,363) — — — — — (31,363)Remove gain on sale of NGL units — — — (34,211) — — — — — (34,211)NGL cash distribution — — — 23,404 — — — — — 23,404Employee severance expense 9 — — — 150 — — 41 20 220Unrealized loss (gain) on derivative activities — — (1,621) — — — — — (113) (1,734)Change in fair value of warrants — — — — — — — — 13,423 13,423Depreciation and amortization included within equity earnings 18,992 — — — — — — — — 18,992Inventory valuation adjustment including equity method investees 2,114 — 5,667 — — — — — — 7,781Recovery of receivables written off at emergence — — — — (664) — — — — (664)Bankruptcy related expenses — — — 1 — — — 150 1,159 1,310Charitable contributions — — — — — — — — 3,379 3,379Non-cash equity compensation — — — 4 2,012 587 395 770 4,618 8,386Selected Non-Cash Items and Other Items Impacting Comparability $ 21,582 $ (34) $ 4,004 $ (42,165) $ 590 $ (1,083) $ 621 $ 21,053 $ 36,862 $ 41,430

SemGroup Reconciliation of Net Income to Adjusted EBITDA

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(in thousands, unaudited) Year EndedDecember 31,

2015 2014Net income $ 49,673 $ 62,925

Add:Interest expense 43,188 21,279Depreciation and amortization expense 41,998 40,035Distributions from equity method investment 100,468 66,768Inventory valuation adjustment 2,590 5,667Non-cash equity compensation 1,354 943Loss on disposal of long-lived assets, net 10,257 319Provision for uncollectible accounts receivable 257 —

Less:Earnings from equity method investment 76,355 57,378White Cliffs cash distributions attributable to noncontrolling interests — 11,008Impact from derivative instruments:Total gain on derivatives, net 8,145 17,351Total realized gain (cash outflow) on derivatives, net (10,045) (15,730)Non-cash unrealized gain (loss) on derivatives, net (1,900) 1,621Adjusted EBITDA $ 175,330 $ 127,929

Rose Rock Reconciliation of Net Income to Adjusted EBITDA

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Rose Rock Reconciliation of Net Cash Provided by Operating Activities toAdjusted EBITDA

(in thousands, unaudited) Year EndedDecember 31,

2015 2014Net cash provided by operating activities $ 82,851 $ 111,093Less:Changes in operating assets and liabilities, net (28,044) 1,296White Cliffs cash distributions attributable to noncontrolling interests — 11,008Add:Interest expense, excluding amortization of debt issuance costs 40,322 19,750Distributions in excess of equity earnings of affiliates 24,113 9,390Adjusted EBITDA $ 175,330 $ 127,929

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SEMG & RRMS 1Q 2016 Results

Business

Transcript of SEMG & RRMS 1Q 2016 Results