SemGroup completes acquisition of 16.8-million-barrel Houston oil terminal

Oil and gas company SemGroup has finalized the acquisition of Houston Fuel Oil Terminal Company (HFOTCO) from the investment funds managed by Alinda Capital Partners, according to a company release.

The 16.8-million-barrel HFOTCO, one of the largest oil terminals in the United States, is strategically located on the U.S. Gulf Coast.

Its assets, moreover, are located on 330 acres on the Houston Ship Channel, one of the world’s most active trading centers for residual fuel oil, clean products, LPGs and crude oil.

As part of the initial payment, SemGroup paid $301 million in cash, issued 12.4 million common shares to Alinda, and assumed $761 million of existing HFOTCO net debt. SemGroup will fund the second payment of $600 million in cash before the end of 2018.

“As planned, this acquisition helps fulfill our long-term strategy to further de-risk our business by adding secure, downstream cash flow to our portfolio mix. This remarkably versatile asset provides an entirely new growth platform to capture opportunities within the Houston Ship Channel’s massive processing, trading and import/export complex. ” said SemGroup President and CEO Carlin Conner.

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