SemGroup Corporation Declares Quarterly Cash Dividend, Payable on August 28, 2017; Provides Dividend Guidance; Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2017; Revises Earnings Guidance for the Full Year of 2017
The management reaffirms that dividends will be reviewed annually in December of each year targeting a 10% dividend CAGR through 2020. In December 2017, management expects to recommend to the Board of Directors a dividend increase of 10% on an annualized basis.
The company reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2017. For the quarter, the company reported revenues of $473,089,000 against $287,377,000 a year ago. Operating income was $25,269,000 against $25,391,000 a year ago. Income from continuing operations before income taxes was $13,236,000 against $15,447,000 a year ago. Income from continuing operations was $9,611,000 against $10,789,000 a year ago. Net income attributable to the company was $9,611,000 or $0.15 per diluted share $8,865,000 or $0.19 per diluted share a year ago. EBITDA was $52,315,000 against $58,511,000 a year ago. Adjusted EBITDA was $65,410,000 against $67,632,000 a year ago.
For the six months, the company reported revenues of $929,189,000 against $602,228,000 a year ago. Operating income was $48,726,000 against $57,715,000 a year ago. Income from continuing operations before income taxes was $3,054,000 against loss from continuing operations before income taxes of $10,851,000 a year ago. Loss from continuing operations was $666,000 against income from continuing operations of $5,898,000 a year ago. Net Loss attributable to the company was $666,000 or $0.01 per basic and diluted share against $5,048,000 or $0.11 per basic and diluted share a year ago. EBITDA was $80,599,000 against $73,839,000 a year ago. Adjusted EBITDA was $126,077 against $145,300,000 a year ago.
The company is narrowing its initial Adjusted EBITDA guidance range of between $270 million and $310 million to $270 million and $290 million due primarily to the delay in the completion of the Maurepas Pipeline and continued pressure on Crude Supply & Logistic differentials. With the expected addition of $60 million of Adjusted EBITDA in connection with the HFOTCO acquisition, the company now expects Adjusted EBITDA of between $330 million and $350 million in 2017. Capital expenditure guidance to $575 million, which now includes approximately $75 million in growth projects at HFOTCO and approximately $60 million related to maintenance projects.