MASTER LIMITED PARTNERSHIPS

Thursday, July 17, 2008

If i were a shareholder from Semgroup LP (SGLP) I would be really pissed off right now. The stock has now broken under 14. Its trading nearly 4 million shares have changed hands. The stock is down nearly 9 dollars. And not a word out of them. I.R. has not responded to me at all.

adding this....the stock is now at 11 and change. And you wonder why there is so little confidence in a group that is known for not responding to its limited partners in a timely fashion.

How about a trading halt?

7 comments:

Anonymous said...: The distribution has to be in jeopardy. There is NO reason for this price action otherwise.

My question is how do some people have the knowledge which has moved the price 50% lower and the rest of us don't? Where is the SEC?; 7/17/2008 3:06 PM
joewxman said...: i agree. it got down to 10.16 and still not a breath!; 7/17/2008 3:14 PM
Anonymous said...: Exactly! Where is the SEC?!

I just called IR at the company and was told... well, I was told to leave a message because I went right to voicemail. My message to them? Answer the email I sent you hours ago because there are a bunch of people wondering why your cap has been cut in half in a single trading session without an utterance from the company.

This is abusive and it’s blatant.; 7/17/2008 3:18 PM
Anonymous said...: there are a couple explanations for SGLP

1. there some sort of fraud and the company is going bankrupt

2. someone had to liquidate a position because of the energy sell off today

3. the company is having problems, but will still be around.

lets hope it is 2; 7/17/2008 3:18 PM
Anonymous said...: seeing some news now that the debt was downgraded; 7/17/2008 3:26 PM
Anonymous said...: for all of you sglp holders. the parent company was downgraded today because of high oil prices. seems like an over reaction. news just out.; 7/17/2008 3:34 PM
Anonymous said...: SGLP units sell-off on potential parent credit issues
SGLP LP units have traded down significantly this morning. We understand
SGLP’s parent, SemGroup, L.P., which is a private company, held a conference
call with its fixed income investors either yesterday or Tuesday. The content of the
call was not made public. However, we note SemGroup, L.P.’s debt instruments
are now trading at distressed levels after being quoted close to par earlier this
week (SemGroup is rated B1/B+ by Moody’s and Fitch, respectively). In addition
to its interests in SGLP, SemGroup, L.P.’s parent conducts business through
several different segments: crude oil marketing and trading, a natural gas
processing business, refined products marketing and a Canadian natural gas
gathering and processing business. SemGroup L.P.’s marketing and trading
operations are working capital intensive.
Parent provides majority of SGLP’s revenues
SGLP is almost unique among our coverage universe with the derivation of ~90%
of its revenues from agreements with its parent, SemGroup, L.P. Essentially,
SGLP’s assets are “tolled” by the parent via long-term contracts. While this limits
the business risk surrounding SGLP’s crude oil pipeline, terminalling and asphalt
terminalling businesses, it does expose SGLP to its parent’s credit profile.
Need to hear from parent before becoming comfortable
Given SGLP’s reliance on its parent for its revenues, we need to hear further
detail from its parent prior to having conviction on what to do with SGLP’s LP units
and therefore we are placing our opinion under review. We also think the issues
surrounding SGLP are unique to it and should not have implications for the rest of
our Energy MLP coverage.; 7/17/2008 3:43 PM