The Norman Transcript

Business

August 2, 2013

SemGroup closes acquisition of assets from Chesapeake

NORMAN — SemGroup Corporation recently announced that it completed its previously disclosed acquisition of the gas gathering and processing assets owned by Chesapeake Energy Corporation, located in the Mississippi Lime play, for $300 million in cash.

Approximately $125 million of additional capital expenditures will be required for the completion of the Rose Valley plants I and II, as well as additional capital related to future well connects.

“We are pleased to add all of these key assets to SemGroup’s continued story of growth,” said Norm Szydlowski, president and chief executive officer of SemGroup. “This purchase positions us to expand our presence in a highly attractive area and provides future drop-down inventory for Rose Rock Midstream.”

LCT Capital LLC and Citi acted as financial advisors to SemGroup.

SemGroup is a publicly traded midstream service company based in Tulsa.

Acquisition highlights include:

· 200 miles of gathering pipeline

· Rose Valley I plant: 200 mmcfd cryogenic processing plant, expected to be operational first quarter 2014

· Rose Valley II plant: 200 mmcfd cryogenic processing plant, expected to be operational first quarter 2016

· About 540,000 net acre dedication in the core of the Mississippi Lime play

· 20-year, 100 percent fee-based, gas gathering and processing agreement

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