SemGroup, L.P. Acquires Assets from Explorer Pipeline for Refined Products and Crude Oil Subsidiaries

Business Wire, March 7, 2008

TULSA, Okla. -- SemGroup, L.P. today announced that two of its subsidiaries acquired assets from Explorer Pipeline. Terms of the acquisition, effective March 7, 2008, were not disclosed.

SemFuel, L.P. acquired three refined product terminals located in Texas from Explorer. The first terminal, located in Fort Worth, was operational immediately. The other two facilities, in Bryan and North Houston, are expected to be operational during the second quarter of 2008.

Darrell Weakland, SemFuel president and chief operating officer, said, "The addition of these terminals further expands SemFuel's marketing presence and storage capacity in the Midwest, Gulf Coast and Dallas-Fort Worth regions of the United States."

SemCrude, L.P. acquired a 130-mile, 8-inch pipeline that originates in Ardmore, Oklahoma, and terminates in Drumright, Oklahoma. The pipeline was part of Explorer's 8" Product System that originates in Arlington, Texas.

"We are excited about the opportunities that this section of pipeline provides SemCrude," Pete Schwiering, SemCrude vice president - operations, said. "We plan to connect the pipeline to the Cushing Interchange by the third quarter of 2008."

SemFuel, L.P. is a North American commercial supplier and wholesale distributor of refined petroleum products. A full-service supplier for many refiners and industry partners, SemFuel provides customers a clear market view, varied pricing options and numerous supply alternatives for spot sales and contract volumes. The company's main offices are in Denver, Colo., Houston, Texas, Green Bay, Wis., and Tulsa, Okla.

SemCrude, L.P. purchases crude oil and condensates from more than 2,000 independent producers and operators, as well as aggregators and independent refiners. The company predominately stores crude oil at the Cushing Interchange, one of the largest crude oil market hubs in the United States. SemCrude, has offices in Tulsa and Oklahoma City, Okla.; Houston, Abilene and Dumas, Texas; Wichita, Kan; and Denver, Colo.

SemGroup, L.P. is a midstream company providing the energy industry means to move products from the wellhead to the wholesale marketplace. With operations in the United States, Canada, Mexico, Wales (United Kingdom), Switzerland and Vietnam, SemGroup's business segments focus on activities related to crude oil, refined petroleum products, natural gas, natural gas liquids and asphalt. Based in Tulsa, Oklahoma, SemGroup is the parent of SemGroup Energy Partners, L.P., a master limited partnership listed on the NASDAQ under the symbol SGLP. For more information, visit www.semgrouplp.com.