SemGroup, L.P. Bankruptcyadmin
Hiland Holdings GP, LP and Hiland Partners, LP has released an update news saying that the status of the Partnership’s product sales to certain affiliates of SemGroup, L.P. in response to the bankruptcy of SemGroup, L.P. and certain of its affiliates (”SemGroup”). As disclosed in the Partnership’s public filings with the Securities and Exchange Commission, the Partnership has historically sold natural gas liquids and condensate that are produced at its Bakken and Badlands plants and gathering systems to SemGroup. The Partnership currently has an account receivable of approximately $8 million from SemGroup relating to product sales made during June 2008 and estimates additional uninvoiced product sales of approximately $5 million from July 1 through July 18, 2008. Any potential accounts receivable write-off related to the Partnership’s exposure to SemGroup is not expected to cause the Partnership to be out of compliance with its covenants under its credit facility or impact its liquidity position in any material respect.
Hiland Partners, LP is a publicly traded midstream energy partnership engaged in gathering, compressing, dehydrating, treating, processing and marketing natural gas, and fractionating, or separating, natural gas liquids, or NGLs. The Partnership also provides air compression and water injection services for use in oil and gas secondary recovery operations. The Partnership’s operations are primarily located in the Mid-Continent and Rocky Mountain regions of the United States. Hiland Partners, LP’s midstream assets consist of fourteen natural gas gathering systems with approximately 2,030 miles of gathering pipelines, five natural gas processing plants, seven natural gas treating facilities and three NGL fractionation facilities. The Partnership’s compression assets consist of two air compression facilities and a water injection plant.
Source: Hiland Partners, LP