2. First Quarter 2017 Results
Non-GAAP Financial Measures
SemGroup’s non-GAAP measure, Adjusted EBITDA, is not a GAAP measure and is not intended to be used in lieu of GAAP presentation of net income (loss),
which is the most closely associated GAAP measure. Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization, adjusted for
selected items that SemGroup believes impact the comparability of financial results between reporting periods. In addition to non-cash items, we have selected
items for adjustment to EBITDA which management feels decrease the comparability of our results among periods. These items are identified as those which
are generally outside of the results of day to day operations of the business. These items are not considered non-recurring, infrequent or unusual, but do erode
comparability among periods in which they occur with periods in which they do not occur or occur to a greater or lesser degree. Historically, we have selected
items such as gains on the sale of NGL Energy Partners LP common units, costs related to our predecessor’s bankruptcy, significant business development
related costs, significant legal settlements, severance and other similar costs. Management believes these types of items can make comparability of the results
of day to day operations among periods difficult and have chosen to remove these items from our Adjusted EBITDA. We expect to adjust for similar types of
items in the future. Although we present selected items that we consider in evaluating our performance, you should be aware that the items presented do not
represent all items that affect comparability between the periods presented. Variations in our operating results are also caused by changes in volumes, prices,
mechanical interruptions and numerous other factors. We do not adjust for these types of variances.
This measure may be used periodically by management when discussing our financial results with investors and analysts and is presented as management
believes it provides additional information and metrics relative to the performance of our businesses. This non-GAAP financial measure has important limitations
as an analytical tool because it excludes some, but not all, items that affect the most directly comparable GAAP financial measures. You should not consider
non-GAAP measures in isolation or as substitutes for analysis of our results as reported under GAAP. Management compensates for the limitations of our non-
GAAP measures as analytical tools by reviewing the comparable GAAP measures, understanding the differences between the non-GAAP measure and the
most comparable GAAP measure and incorporating this knowledge into its decision-making processes. We believe that investors benefit from having access to
the same financial measures that our management uses in evaluating our operating results. Because all companies do not use identical calculations, our
presentations of non-GAAP measures may be different from similarly titled measures of other companies, thereby diminishing their utility.
SemGroup does not provide guidance for net income, the GAAP financial measure most directly comparable to the non-GAAP financial measure Adjusted
EBITDA, because Net Income includes items such as unrealized gains or losses on derivative activities or similar items which, because of their nature, cannot
be accurately forecasted. We do not expect that such amounts would be significant to Adjusted EBITDA as they are largely non-cash items.
2
3. First Quarter 2017 Results
Certain 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 protections
provided 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, 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, the failure to realize the anticipated benefits of the
transaction, consummated on September 30, 2016, pursuant to which we acquired all of the outstanding common units of our subsidiary, Rose Rock Midstream,
L.P., not already owned by us; our ability to generate sufficient cash flow from operations to enable us to pay our debt obligations and our current and expected
dividends or to fund our other liquidity needs; any sustained reduction in demand for, or supply of, the petroleum products we gather, transport, process, market and
store; the effect of our debt level on our future financial and operating flexibility, including our ability to obtain additional 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 credit ratings 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 commodity purchase, sale or derivative transactions; the
impact of operational and developmental hazards and unforeseen interruptions; our ability to obtain new sources of supply of petroleum products; competition from
other midstream energy companies; our ability to comply with the covenants contained in our credit agreement and the indentures governing our senior notes,
including requirements under our credit agreement 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 acquisition of 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; 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 to taxes, 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 our 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 presentation 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.
We use our 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 website at ir.semgroupcorp.com.
We are present on Twitter and LinkedIn, follow us at the links below:
SemGroup Twitter and LinkedIn
Forward-Looking Information
3
4. First Quarter 2017 Results
SemGroup Corporation
(in millions, unaudited) 1Q 2017 4Q 2016 2017 Guidance
Adjusted EBITDA(1)
$60.7 $66.2 $270 - $310 million
First Quarter 2017 Results
4
1) Non-GAAP Financial Data Reconciliations are included in the Appendix to this presentation
First Quarter Adjusted EBITDA Results
Ñ SemCAMS - up over 70% due to absence of 4Q 2016 producer concession fee & higher volumes
Ñ Crude Facilities - down nearly $5 million due to absence of 4Q 2016 take or pay adjustment
Ñ Crude Supply & Logistics - down due to timing of inventory costing, expected to turn around during
2Q 2017
Full Year Highlights
Ñ Reaffirm 2017 Adjusted EBITDA guidance of $270 to $310 million
Ñ Based on current outlook, expected annualized 4Q 2017 Adj EBITDA run rate of $325 to $340 million
Ñ Targeting 8% dividend CAGR through 2020 and expect to recommend a 6% to 10% annualized
dividend increase in December 2017
Ñ Maurepas Pipeline construction completion expected late 2Q 2017
Ñ Announced SemGas Canton Pipeline project to capture STACK play volumes
5. First Quarter 2017 Results
Key Committed Projects
Crude Projects
• Maurepas Pipeline ~ completion late 2Q 2017: $180 million
• Cushing 20" Pipeline ~ completion 4Q 2017: $35 million
• STACK Crude Pipeline ~ completion 4Q 2017: $30 million(1)
Natural Gas Projects
• Wapiti Sour Gas Plant ~ completion mid-2019: $80 million
• KA Plant projects: $25 million
• N. Oklahoma gathering projects: $20 million
• SemGas STACK Canton Pipeline ~ completion 4Q 2017: $60 million
Maurepas Pipeline
Crude
Natural Gas
Other Growth Projects
Maintenance
$180
36%
$65
13%
$185
37%
$10
2%
$60
12%
2017 Capital Expenditure Guidance
5 1) Reflects SemGroup's 50% of capital contributions to the joint venture
$500 million to Strategic Crude and Natural Gas Projects
6. First Quarter 2017 Results
SemGas STACK Pipeline Project
Canton Pipeline
Ñ 24-inch diameter natural gas pipeline, ~50 miles long
Ñ Originates from SemGroup’s Rose Valley gas
processing facility in Woods County and extends to
north central Blaine County
Ñ Expected to be in service by year-end 2017
Ñ Backed by a long-term, firm commitment from an
investment-grade counterparty
Ñ Initial capacity of 200 mmcf/d, and could be expanded
up to 400 mmcf/d by adding compression, to serve
other producers in the area
6
Provides significant operational synergies with our existing assets
7. First Quarter 2017 Results
Key Projects Update
Ñ Maurepas Pipeline
• All field welds expected to be complete in May
• On budget and expected construction completion late 2Q 2017
Ñ STACK Crude Pipeline
• Acquired over 90% of right of way
• Begun tank construction at Omega and Ruby stations
• Pipe to be delivered in June
• Expected completion 4Q 2017
Ñ Wapiti Gas Plant
• Long-lead time equipment ordered
• Site work progressing
• Expected completion mid-2019
7
8. First Quarter 2017 Results
1Q 2017 Results
Segment Adjusted EBITDA
(in millions, unaudited) 1Q 2017 4Q 2016
Crude - Transportation $ 25.7 $ 26.1
Crude - Facilities 9.0 13.9
Crude - Supply and Logistics (3.5) (1.9)
SemGas 16.1 16.9
SemCAMS 12.5 7.3
SemLogistics 3.9 3.3
SemMaterials Mexico 2.0 3.7
Corporate and Other (5.0) (3.1)
SemGroup $ 60.7 $ 66.2
SemGroup Corporation
As Reported (in millions, excluding EPS, unaudited) 1Q 2017 4Q 2016
Net income (loss) attributable to SemGroup $ (10.3) $ 12.0
Net income (loss) per share - diluted $ (0.16) $ 0.18
EBITDA(1)
$ 28.3 $ 61.4
Selected Non-Cash Items and Other Items Impacting Comparability(1)
$ 32.4 $ 4.8
Adjusted EBITDA(1)
$ 60.7 $ 66.2
Dividend per Share $ 0.45 $ 0.45
8
1) Non-GAAP Financial Data Reconciliations are included in the Appendix to this presentation
9. First Quarter 2017 Results
SemGroup Corporation
(in millions, unaudited) March 31, 2017
$1 billion revolver - 2021 $90.0
5.625% Senior unsecured notes - 2022 400.0
5.625% Senior unsecured notes - 2023 350.0
6.375% Senior unsecured notes - 2025 325.0
Total debt $1,165.0
Compliance leverage ratio(1)
3.6x
Target leverage <4.5x
Liquidity:
Cash and cash equivalents(2)
$56.6
Revolver availability(3)
874.6
Total liquidity $931.2
Leverage and Liquidity
9
1) Calculated per revolving credit agreement definitions, which includes material project adjustments; maximum total leverage
covenant of 5.5x
2) Cash excludes SemMaterials Mexico
3) Revolver availability is reduced for outstanding letters of credit
Ñ Refinanced 2021 Notes to achieve
lower borrowing costs and extended
maturity
Ñ Successfully amended the revolving
credit facility to lower the pricing grid
25 bps
Ñ Targeting compliance leverage ratio of
4.5x, based on current outlook expect
4Q 2017 compliance leverage to be
4.5x to 4.75x, assuming no ATM
issuance
10. First Quarter 2017 Results
Delivering Long-Term Value
10
Financial
Discipline & Strong
Balance Sheet
High Return
Growth Projects &
Strategic
Acquisitions
Focus on Portfolio
Balance & Secure
Cash Flows
Targeting 8%
Dividend CAGR
through 2020
12. First Quarter 2017 Results
Guidance Assumptions
Average Commodity Price Assumptions(2)
• Crude Oil: $54/barrel
• Natural Gas: $3.40/mmbtu
• Natural Gas Liquids: $0.80/gallon
Foreign Exchange Rate Assumptions
• Canadian Dollar (CAD/USD): $0.74
• British Pound (GBP/USD): $1.25
• Mexican Peso (MXN/USD): $0.05
Cash Taxes
• Approximately $5 million, related to foreign subs
Operational Assumptions
Crude
• Average Cushing storage rate: $0.33/barrel/month
• Maurepas Pipeline: expected completion late 2Q 2017
• Transportation volumes(3)
: 5-10% increase
• White Cliffs Pipeline volumes: 100-110k bpd
• Glass Mountain Pipeline volumes: 75-80k bpd
SemGas
• N. Oklahoma processing volumes: 280-300 mmcf/d
SemCAMS
• Processing volumes: 375-400 mmcf/d
• K3 plant turnaround scheduled 2Q 2017
Adjusted EBITDA $270 million - $310 million(1)
(in millions)
$400
$300
$200
$100
2014 2015 2016 2017E
$287
$305
$283
$270 - $310
SemGroup 2017 Guidance
12
1) Non-GAAP Reconciliations for historical periods are included in the Appendix to this presentation
2) Average commodity prices as of January 11, 2017
3) Transportation volumes excludes Maurepas Pipeline and JV assets (White Cliffs Pipeline and Glass Mountain Pipeline)
13. First Quarter 2017 Results
Over 70% of SemGroup's revenue is derived from
investment grade counterparties
Over 90% of total LTM gross margin from
fixed fee based cash flows
(1) LTM December 31, 2016
(2) Counterparty ratings LTM December 31, 2016; excludes SemLogistics and SemMaterials Mexico
Take or Pay Fixed Fee POP/Marketing
600
500
400
300
200
100
0
($inmillions)
2014 2015 2016 2017 Investment Grade
Non-Investment Grade
72%
28%
51%
38%
11%11%
59%
30%
64%
13%
23%
SemGroup derives a significant portion of its margin from fixed fee contracted arrangements with
strong counterparties; SemGroup is well-positioned to drive future growth
Company Strengths
13
1) LTM March 31, 2017
2) Counterparty ratings LTM March 31, 2017; excludes SemLogistics and SemMaterials Mexico13
Counterparty Strength(2)
Stable Cash Flows(1)
51%
40%
9%
15. First Quarter 2017 Results
SemCAMS Average Throughput Volume
Natural Gas Key Performance Metrics
K3 Plant KA Plant Capacity
600
500
400
300
200
100
0
(mmcf/d)
1Q 2Q 3Q 4Q 1Q
270.4
157.0
253.5 253.7 260.7
114.3
384.7
147.1
304.1 135.0
388.5
143.1
396.8
146.9
407.6
Capacity Processing Volumes
600
500
400
300
200
100
0
(mmcf/d)
1Q 2Q 3Q 4Q 1Q
325.9 290.6 284.4 284.2 273.6
(1)
15 1) Lower volumes related to an unplanned shutdown at our K3 plant during June 2016
SemGas Northern OK Avg Processed Volume
2016 2017
2016 2017
16. First Quarter 2017 Results
Consolidated Balance Sheets
(in thousands, unaudited, condensed) March 31,
2017
December 31,
2016
ASSETS
Current assets $ 672,770 $ 635,874
Property, plant and equipment, net 1,834,400 1,762,072
Goodwill and other intangible assets 182,994 185,208
Equity method investments 432,389 434,289
Other noncurrent assets, net 54,173 57,529
Total assets $ 3,176,726 $ 3,074,972
LIABILITIES AND OWNERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 27 $ 26
Other current liabilities 535,795 488,329
Total current liabilities 535,822 488,355
Long-term debt, excluding current portion 1,140,637 1,050,918
Other noncurrent liabilities 85,922 89,734
Total liabilities 1,762,381 1,629,007
Total owners' equity 1,414,345 1,445,965
Total liabilities and owners' equity $ 3,176,726 $ 3,074,972
16
17. First Quarter 2017 Results
Consolidated Statements of Operations and Comprehensive Income (Loss)
(in thousands, except per share amounts, unaudited, condensed) Three Months Ended
March 31, December 31,
2017 2016 2016
Revenues $ 456,100 $ 314,851 $ 402,172
Expenses:
Costs of products sold, exclusive of depreciation and amortization shown below 348,998 196,947 281,139
Operating 52,083 50,192 54,564
General and administrative 21,644 21,060 21,490
Depreciation and amortization 24,599 24,051 24,776
Loss on disposal or impairment, net 2,410 13,307 38
Total expenses 449,734 305,557 382,007
Earnings from equity method investments 17,091 23,071 17,763
Loss on issuance of common units by equity method investee — (41) —
Operating income 23,457 32,324 37,928
Other expenses, net 33,639 58,622 9,809
Income (loss) from continuing operations before income taxes (10,182) (26,298) 28,119
Income tax expense (benefit) 95 (21,407) 16,119
Income (loss) from continuing operations (10,277) (4,891) 12,000
Loss from discontinued operations, net of income taxes — (2) —
Net income (loss) (10,277) (4,893) 12,000
Less: net income attributable to noncontrolling interests — 9,020 —
Net income (loss) attributable to SemGroup Corporation (10,277) (13,913) 12,000
Net income (loss) attributable to SemGroup Corporation (10,277) (13,913) 12,000
Other comprehensive income (loss), net of income taxes 6,033 (4,109) (10,783)
Comprehensive income (loss) attributable to SemGroup Corporation $ (4,244) $ (18,022) $ 1,217
Net income (loss) per common share:
Basic $ (0.16) $ (0.32) $ 0.18
Diluted $ (0.16) $ (0.32) $ 0.18
Weighted average shares (thousands):
Basic 65,692 43,870 65,754
Diluted 65,692 43,870 66,326
17
18. First Quarter 2017 Results
2016 Quarterly Financial Data
Note: Prior quarter amounts above have been restated from the amounts originally reported to correct for an immaterial error identified by management in the fourth
quarter related to an under capitalization of interest on certain capital projects. Previously reported interest expense, included in "other expense, net" above, has
been decreased by $1.4 million, $0.9 million and $2.5 million for the quarters ended March 31, June 30 and September 30, 2016, respectively, with a corresponding
increase to net income. Earnings per basic share was increased by $0.03, $0.02 and $0.05 per share for the quarters ended March 31, June 30 and September 30,
2016, respectively. Capitalized interest recorded for the fourth quarter of 2016 includes an immaterial out of period adjustment of $6.3 million related to under
capitalization of interest in the prior year.
(in thousands, except per share data, unaudited)
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter Total
Total revenues $ 314,851 $ 287,377 $ 327,764 $ 402,172 $ 1,332,164
Loss on disposal or impairment, net 13,307 1,685 1,018 38 16,048
Other operating costs and expenses 292,250 277,379 316,644 381,969 1,268,242
Total expenses 305,557 279,064 317,662 382,007 1,284,290
Earnings from equity method investments 23,071 17,078 15,845 17,763 73,757
Loss on issuance of common units by equity method investee (41) — — — (41)
Operating income 32,324 25,391 25,947 37,928 121,590
Other expenses, net 58,622 9,944 18,684 9,809 97,059
Income (loss) from continuing operations before income taxes (26,298) 15,447 7,263 28,119 24,531
Income tax expense (benefit) (21,407) 4,658 11,898 16,119 11,268
Income (loss) from continuing operations (4,891) 10,789 (4,635) 12,000 13,263
Income (loss) from discontinued operations, net of income taxes (2) (2) 3 — (1)
Net income (loss) (4,893) 10,787 (4,632) 12,000 13,262
Less: net income attributable to noncontrolling interests 9,020 1,922 225 — 11,167
Net income (loss) attributable to SemGroup $ (13,913) $ 8,865 $ (4,857) $ 12,000 $ 2,095
Earnings (loss) per share—basic $ (0.32) $ 0.20 $ (0.09) $ 0.18 $ 0.04
Earnings (loss) per share—diluted $ (0.32) $ 0.19 $ (0.09) $ 0.18 $ 0.04
18
19. First Quarter 2017 Results
Non-GAAP Adjusted EBITDA Calculation
(in thousands, unaudited) Three Months Ended
March 31, December 31,
Reconciliation of net income to Adjusted EBITDA: 2017 2016 2016
Net income (loss) $ (10,277) $ (4,893) $ 12,000
Add: Interest expense(1) 13,867 17,577 8,545
Add: Income tax expense (benefit) 95 (21,407) 16,119
Add: Depreciation and amortization expense 24,599 24,051 24,776
EBITDA 28,284 15,328 61,440
Selected Non-Cash Items and
Other Items Impacting Comparability 32,383 62,348 4,765
Adjusted EBITDA $ 60,667 $ 77,676 $ 66,205
Selected Non-Cash Items and
Other Items Impacting Comparability
Loss on disposal or impairment, net $ 2,410 $ 13,307 $ 38
Loss from discontinued operations, net of income taxes — 2 —
Foreign currency transaction loss — 1,469 1,088
Remove NGL equity losses (earnings) including loss (gain) on issuance
of common units (3) (2,191) 6
Remove loss on sale or impairment of NGL units — 39,764 —
NGL cash distribution — 4,873 —
Employee severance and relocation expense 558 259 499
Unrealized loss (gain) on derivative activities 27 (4,548) (5,107)
Depreciation and amortization included within equity earnings 6,712 6,539 5,071
Non-cash equity compensation 2,757 2,874 3,170
Loss on early extinguishment of debt $ 19,922 $ — $ —
Selected Non-Cash items and
Other Items Impacting Comparability $ 32,383 $ 62,348 $ 4,765
19
1) Capitalized interest recorded for 4Q 2016 includes an immaterial out of period adjustment of $6.3 million related to the prior year
Note: 1Q 2017 cash expense: ~ $18 million interest, ~ $8 million maintenance capex, ~ $1 million income tax
20. First Quarter 2017 Results
Non-GAAP Financial Data Reconciliations
(in thousands, unaudited) Three Months Ended
March 31, December 31,
2017 2016 2016
Net income $ 12,242 $ 19,295 $ 15,810
Add: Interest expense (income) (1,305) 264 (1,098)
Add: Depreciation and amortization expense 5,927 5,860 6,140
EBITDA 16,864 25,419 20,852
Selected Non-Cash Items and
Other Items Impacting Comparability 8,788 6,606 5,206
Adjusted EBITDA $ 25,652 $ 32,025 $ 26,058
Selected Non-Cash Items and Other Items Impacting Comparability
Loss on disposal or impairment, net $ 1,961 $ 67 $ 38
Employee severance and relocation expense 115 — 97
Depreciation and amortization included within
equity earnings 6,712 6,539 5,071
Selected Non-Cash items and
Other Items Impacting Comparability $ 8,788 $ 6,606 $ 5,206
Crude - Transportation Segment
20
21. First Quarter 2017 Results
Non-GAAP Financial Data Reconciliations
(in thousands, unaudited) Three Months Ended
March 31, December 31,
2017 2016 2016
Net income $ 6,884 $ 7,705 $ 11,756
Add: Interest expense 134 — 128
Add: Depreciation and amortization expense 1,944 1,882 1,996
EBITDA 8,962 9,587 13,880
Selected Non-Cash Items and
Other Items Impacting Comparability 54 — —
Adjusted EBITDA $ 9,016 $ 9,587 $ 13,880
Selected Non-Cash Items and Other Items Impacting Comparability
Employee severance expense $ 54 $ — $ —
Selected Non-Cash items and
Other Items Impacting Comparability $ 54 $ — $ —
Crude - Facilities Segment
21
22. First Quarter 2017 Results
Non-GAAP Financial Data Reconciliations
(in thousands, unaudited) Three Months Ended
March 31, December 31,
2017 2016 2016
Net income (loss) $ (3,961) $ 13,461 $ 2,853
Add: Interest expense 257 140 302
Add: Depreciation and amortization expense 62 40 59
EBITDA (3,642) 13,641 3,214
Selected Non-Cash Items and
Other Items Impacting Comparability 170 (4,321) (5,107)
Adjusted EBITDA $ (3,472) $ 9,320 $ (1,893)
Selected Non-Cash Items and Other Items Impacting Comparability
Loss on disposal or impairment, net $ — $ 227 $ —
Employee severance expense 143 — —
Unrealized loss (gain) on derivative activities 27 (4,548) (5,107)
Selected Non-Cash items and
Other Items Impacting Comparability $ 170 $ (4,321) $ (5,107)
Crude - Supply and Logistics Segment
22
23. First Quarter 2017 Results
Non-GAAP Financial Data Reconciliations
(in thousands, unaudited) Three Months Ended
March 31, December 31,
2017 2016 2016
Net income (loss) $ 3,673 $ (13,474) $ 4,385
Add: Interest expense 3,149 3,555 3,283
Add: Depreciation and amortization expense 8,927 8,927 8,966
EBITDA 15,749 (992) 16,634
Selected Non-Cash Items and
Other Items Impacting Comparability 318 13,391 266
Adjusted EBITDA $ 16,067 $ 12,399 $ 16,900
Selected Non-Cash Items and Other Items Impacting Comparability
Loss on disposal or impairment, net $ 21 $ 13,052 $ —
Non-cash equity compensation 297 339 266
Selected Non-Cash items and
Other Items Impacting Comparability $ 318 $ 13,391 $ 266
SemGas Segment
23
24. First Quarter 2017 Results
Non-GAAP Financial Data Reconciliations
(in thousands, unaudited) Three Months Ended
March 31, December 31,
2017 2016 2016
Net income $ 3,506 $ 3,276 $ 931
Add: Interest expense 2,162 1,706 937
Add: Income tax expense 1,424 965 678
Add: Depreciation and amortization expense 4,496 3,951 4,383
EBITDA 11,588 9,898 6,929
Selected Non-Cash Items and
Other Items Impacting Comparability 932 383 369
Adjusted EBITDA $ 12,520 $ 10,281 $ 7,298
Selected Non-Cash Items and Other Items Impacting Comparability
Loss on disposal or impairment, net $ 445 $ — $ —
Foreign currency transaction loss 8 6 —
Non-cash equity compensation 479 377 369
Selected Non-Cash items and
Other Items Impacting Comparability $ 932 $ 383 $ 369
SemCAMS Segment
24
25. First Quarter 2017 Results
Non-GAAP Financial Data Reconciliations
(in thousands, unaudited) Three Months Ended
March 31, December 31,
2017 2016 2016
Net income (loss) $ 1,285 $ (246) $ (155)
Add: Interest expense 522 376 407
Add: Income tax expense 381 59 91
Add: Depreciation and amortization expense 1,815 1,960 1,853
EBITDA 4,003 2,149 2,196
Selected Non-Cash Items and
Other Items Impacting Comparability (64) 687 1,148
Adjusted EBITDA $ 3,939 $ 2,836 $ 3,344
Selected Non-Cash Items and Other Items Impacting Comparability
Foreign currency transaction (gain) loss $ (259) $ 510 $ 1,006
Non-cash equity compensation 195 177 142
Selected Non-Cash items and
Other Items Impacting Comparability $ (64) $ 687 $ 1,148
SemLogistics Segment
25
26. First Quarter 2017 Results
Non-GAAP Financial Data Reconciliations
(in thousands, unaudited) Three Months Ended
March 31, December 31,
2017 2016 2016
Net income $ 406 $ 696 $ 2,068
Add: Income tax expense 217 607 534
Add: Depreciation and amortization expense 937 941 930
EBITDA 1,560 2,244 3,532
Selected Non-Cash Items and
Other Items Impacting Comparability 391 370 199
Adjusted EBITDA $ 1,951 $ 2,614 $ 3,731
Selected Non-Cash Items and Other Items Impacting Comparability
Gain on disposal of long-lived assets, net $ (17) $ (39) $ —
Foreign currency transaction loss 252 256 59
Non-cash equity compensation 156 153 140
Selected Non-Cash items and
Other Items Impacting Comparability $ 391 $ 370 $ 199
SemMaterials México Segment
26
27. First Quarter 2017 Results
Non-GAAP Financial Data Reconciliations
(in thousands, unaudited) Three Months Ended
March 31, December 31,
2017 2016 2016
Net loss $ (34,312) $ (35,606) $ (25,648)
Add: Interest expense 8,948 11,536 4,586
Add: Income tax expense (benefit) (1,927) (23,038) 14,816
Add: Depreciation and amortization expense 491 490 449
EBITDA (26,800) (46,618) (5,797)
Selected Non-Cash Items and
Other Items Impacting Comparability 21,794 45,232 2,684
Adjusted EBITDA $ (5,006) $ (1,386) $ (3,113)
Selected Non-Cash Items and Other Items Impacting Comparability
Loss from discontinued operations, net of income taxes $ — $ 2 $ —
Foreign currency transaction (gain) loss (1) 697 23
Remove NGL equity losses (earnings) including gain (loss) on issuance
of common units (3) (2,191) 6
Remove loss on impairment or sale of NGL units — 39,764 —
NGL cash distribution — 4,873 —
Employee severance and relocation expense 246 259 402
Non-cash equity compensation 1,630 1,828 2,253
Loss on early extinguishment of debt 19,922 — —
Selected Non-Cash items and
Other Items Impacting Comparability $ 21,794 $ 45,232 $ 2,684
Corporate & Other Segment
27
28. First Quarter 2017 Results
(in thousands, unaudited) Three Months Ended
June 30, 2016
Crude -
Transportation
Crude -
Facilities
Crude -
Supply and
Logistics SemCAMS SemLogistics SemMexico SemGas
Corporate
and Other Consolidated
Net income (loss) $ 11,794 $ 7,450 $ 5,370 $ 2,325 $ (1,447) $ 1,187 $ (325) $ (15,567) $ 10,787
Add: Interest expense 193 — 182 1,931 353 — 3,431 11,921 18,011
Add: Income tax expense (benefit) — — — 451 (273) 194 — 4,286 4,658
Add: Depreciation and amortization expense 6,174 1,921 40 4,294 1,983 949 9,198 496 25,055
EBITDA 18,161 9,371 5,592 9,001 616 2,330 12,304 1,136 58,511
Selected Non-Cash Items and
Other Items Impacting Comparability 8,954 4 4,477 381 1,562 244 256 (6,757) 9,121
Adjusted EBITDA $ 27,115 $ 9,375 $ 10,069 $ 9,382 $ 2,178 $ 2,574 $ 12,560 $ (5,621) $ 67,632
Selected Non-Cash Items and Other Items Impacting Comparability
Loss (gain) on disposal of long-lived assets, net $ 1,714 $ — $ — $ — $ — $ (28) $ (1) $ — $ 1,685
Loss from discontinued operations, net of income taxes — — — — — — — 2 2
Foreign currency transaction (gain) loss — — — (1) 1,391 153 — — 1,543
Remove NGL equity earnings including gain on issuance of common units — — — — — — — (9,120) (9,120)
Employee severance expense 102 4 — — — — 13 717 836
Unrealized loss on derivative activities — — 4,477 — — — — — 4,477
Depreciation and amortization included within
equity earnings 7,138 — — — — — — — 7,138
Non-cash equity compensation — — — 382 171 119 244 1,644 2,560
Selected Non-Cash Items and
Other Items Impacting Comparability $ 8,954 $ 4 $ 4,477 $ 381 $ 1,562 $ 244 $ 256 $ (6,757) $ 9,121
Reconciliation of Net Income to Adjusted EBITDA
28
29. First Quarter 2017 Results
(in thousands, unaudited) Three Months Ended
September 30, 2016
Crude -
Transportation
Crude -
Facilities
Crude -
Supply and
Logistics SemCAMS SemLogistics SemMexico SemGas
Corporate
and Other Consolidated
Net income (loss) $ 13,052 $ 7,697 $ (3,248) $ 5,080 $ 948 $ 1,491 $ 3,750 $ (33,402) $ (4,632)
Add: Interest expense 154 — 186 2,175 456 43 3,367 12,136 18,517
Add: Income tax expense (benefit) — — — 1,573 (601) 349 — 10,577 11,898
Add: Depreciation and amortization expense 6,309 1,982 46 4,239 1,880 932 9,079 455 24,922
EBITDA 19,515 9,679 (3,016) 13,067 2,683 2,815 16,196 (10,234) 50,705
Selected Non-Cash Items and
Other Items Impacting Comparability 8,334 2 6,167 124 686 72 125 5,078 20,588
Adjusted EBITDA $ 27,849 $ 9,681 $ 3,151 $ 13,191 $ 3,369 $ 2,887 $ 16,321 $ (5,156) $ 71,293
Selected Non-Cash Items and Other Items Impacting Comparability
Loss (gain) on disposal of long-lived assets, net $ 1,018 $ — $ — $ — $ — $ — $ — $ — $ 1,018
Foreign currency transaction (gain) loss — — — — 647 30 — (18) 659
Remove NGL equity losses including gain on issuance of common units — — — — — — — 38 38
Employee severance expense 33 2 — 1 — — — 498 534
Unrealized loss on derivative activities — — 6,167 — — — — — 6,167
M&A transaction related costs 3,269 3,269
Depreciation and amortization included within
equity earnings 7,283 — — — — — — — 7,283
Non-cash equity compensation — — — 123 39 42 125 1,291 1,620
Selected Non-Cash Items and
Other Items Impacting Comparability $ 8,334 $ 2 $ 6,167 $ 124 $ 686 $ 72 $ 125 $ 5,078 $ 20,588
Reconciliation of Net Income to Adjusted EBITDA
29
30. First Quarter 2017 Results
(in thousands, unaudited) Year Ended
December 31, 2016
Crude -
Transportation
Crude -
Facilities
Crude -
Supply and
Logistics SemCAMS SemLogistics SemMexico SemGas
Corporate
and Other Consolidated
Net income (loss) $ (59,951) $ 34,608 $ 18,436 $ 11,612 $ (900) $ 5,442 $ (5,564) $ 9,579 $ 13,262
Add: Interest expense (487) 128 810 6,749 1,592 43 13,636 40,179 62,650
Add: Income tax expense (benefit) — — — 3,667 (724) 1,684 — 6,641 11,268
Add: Depreciation and amortization expense 24,483 7,781 185 16,867 7,676 3,752 36,170 1,890 98,804
EBITDA (35,955) 42,517 19,431 38,895 7,644 10,921 44,242 58,289 185,984
Selected Non-Cash Items and
Other Items Impacting Comparability 29,100 6 1,216 1,257 4,083 885 14,038 46,226 96,811
Adjusted EBITDA $ (6,855) $ 42,523 $ 20,647 $ 40,152 $ 11,727 $ 11,806 $ 58,280 $ 104,515 $ 282,795
Selected Non-Cash Items and Other Items Impacting Comparability
Loss (gain) on disposal of long-lived assets, net $ 2,837 $ — $ 227 $ — $ — $ (67) $ 13,051 $ — $ 16,048
Loss from discontinued operations, net of income taxes — — — — — — — 1 1
Foreign currency transaction loss — — — 5 3,554 498 — 702 4,759
Remove NGL equity earnings including gain on issuance of common units — — — — — — — (2,147) (2,147)
Remove loss on sale of NGL units — — — — — — — 30,644 30,644
NGL cash distribution — — — — — — — 4,873 4,873
Employee severance expense 232 6 — 1 — — 13 1,876 2,128
Unrealized loss on derivative activities — — 989 — — — — — 989
M&A transaction related costs — — — — — — — 3,269 3,269
Depreciation and amortization included within
equity earnings 26,031 — — — — — — — 26,031
Non-cash equity compensation — — — 1,251 529 454 974 7,008 10,216
Selected Non-Cash Items and
Other Items Impacting Comparability $ 29,100 $ 6 $ 1,216 $ 1,257 $ 4,083 $ 885 $ 14,038 $ 46,226 $ 96,811
Reconciliation of Net Income to Adjusted EBITDA
30
31. First Quarter 2017 Results
Reconciliation of Net Income to Adjusted EBITDA
(in thousands, unaudited) Year Ended
December 31, 2015
Crude -
Transportation
Crude -
Facilities
Crude -
Supply and
Logistics SemCAMS SemLogistics SemMexico SemGas
Corporate
and Other Consolidated
Net income (loss) $ 44,771 $ 27,928 $ 27,567 $ 7,879 $ (1,624) $ 8,725 $ 16,704 $ (89,138) $ 42,812
Add: Interest expense 778 — 462 10,742 1,746 46 13,162 42,739 69,675
Add: Income tax expense (benefit) — — — 4,847 (2,195) 2,611 — 28,267 33,530
Add: Depreciation and amortization expense 35,500 5,829 159 12,940 8,543 4,076 31,803 2,032 100,882
EBITDA 81,049 33,757 28,188 36,408 6,470 15,458 61,669 (16,100) 246,899
Selected Non-Cash Items and
Other Items Impacting Comparability 35,600 — 4,487 773 1,399 1,193 2,777 12,154 58,383
Adjusted EBITDA $ 116,649 $ 33,757 $ 32,675 $ 37,181 $ 7,869 $ 16,651 $ 64,446 $ (3,946) $ 305,282
Selected Non-Cash Items and Other Items Impacting Comparability
Loss (gain) on disposal of long-lived assets, net $ 9,621 $ — $ (3) $ (917) $ — $ 85 $ 1,832 $ 854 $ 11,472
Loss from discontinued operations, net of income taxes — — — — — — — 4 4
Foreign currency transaction (gain) loss — — — 103 799 605 — (2,574) (1,067)
Remove NGL equity earnings including gain on issuance of common units — — — — — — — (11,416) (11,416)
Remove gain on sale of NGL units — — — — — — — (14,517) (14,517)
NGL cash distribution — — — — — — — 19,074 19,074
M&A transaction related costs — — — — — — — 10,000 10,000
Employee severance and relocation expense 75 — — — — — — 15 90
Unrealized loss on derivative activities — — 1,900 — — — — 114 2,014
Depreciation and amortization included within
equity earnings 25,307 — — — — — — — 25,307
Inventory valuation adjustment including equity method investees 597 — 2,590 — — — — — 3,187
Bankruptcy related expenses — — — — — — — 224 224
Legal settlement expense — — — — — — — 3,394 3,394
Non-cash equity compensation — — — 1,587 600 503 945 6,982 10,617
Selected Non-Cash Items and
Other Items Impacting Comparability $ 35,600 $ — $ 4,487 $ 773 $ 1,399 $ 1,193 $ 2,777 $ 12,154 $ 58,383
31
32. First Quarter 2017 Results
(in thousands, unaudited) Year Ended
December 31, 2014
Crude -
Transportation
Crude -
Facilities
Crude -
Supply and
Logistics SemCAMS SemLogistics SemMexico SemGas
Corporate
and Other Consolidated
Net income (loss) $ 31,301 $ 26,921 $ 24,610 $ 14,318 $ (10,072) $ 5,900 $ 6,792 $ (47,713) $ 52,057
Add: Interest expense (income) 11,727 — 502 13,558 1,528 166 8,570 12,993 49,044
Add: Income tax expense (benefit) — — — 3,135 (2,231) 4,053 — 41,556 46,513
Add: Depreciation and amortization expense 33,679 5,365 549 14,295 10,005 6,031 26,353 2,120 98,397
EBITDA 76,707 32,286 25,661 45,306 (770) 16,150 41,715 8,956 246,011
Selected Non-Cash Items and
Other Items Impacting Comparability 21,582 (34) 4,004 590 (1,083) 621 21,053 (5,303) 41,430
Adjusted EBITDA $ 98,289 $ 32,252 $ 29,665 $ 45,896 $ (1,853) $ 16,771 $ 62,768 $ 3,653 $ 287,441
Selected Non-Cash Items and Other Items Impacting Comparability
Loss (gain) on disposal of long-lived assets, net $ 467 $ (34) $ (42) $ (950) $ (2,490) $ (53) $ 20,092 $ 15,602 $ 32,592
Loss (income) from discontinued operations, net of income taxes — — — — (1) — — 2 1
Foreign currency transaction (gain) loss — — — 42 821 279 — (1,228) (86)
Remove NGL equity earnings including gain on issuance of common units — — — — — — — (31,363) (31,363)
Remove gain on sale of NGL units — — — — — — — (34,211) (34,211)
NGL cash distribution — — — — — — — 23,404 23,404
Employee severance expense 9 — — 150 — — 41 20 220
Unrealized loss (gain) on derivative activities — — (1,621) — — — — (113) (1,734)
Change in fair value of warrants — — — — — — — 13,423 13,423
Depreciation and amortization included within
equity earnings 18,992 — — — — — — — 18,992
Inventory valuation adjustment including equity method investees 2,114 — 5,667 — — — — — 7,781
Recovery of receivables written off at emergence — — — (664) — — — — (664)
Bankruptcy related expenses — — — — — — 150 1,160 1,310
Charitable contributions — — — — — — — 3,379 3,379
Non-cash equity compensation — — — 2,012 587 395 770 4,622 8,386
Selected Non-Cash Items and
Other Items Impacting Comparability $ 21,582 $ (34) $ 4,004 $ 590 $ (1,083) $ 621 $ 21,053 $ (5,303) $ 41,430
Reconciliation of Net Income to Adjusted EBITDA
32
