Rose Rock Midstream, L.P. (Tables)

9 Months Ended

Sep. 30, 2013

Investments in and Advances to Affiliates, Schedule of Investments [Abstract]

Quarterly Target Distributions

Rose Rock intends to pay a minimum quarterly distribution of $0.3625 per unit, to the extent it has sufficient available cash, as defined in Rose Rock’s partnership agreement. Rose Rock’s partnership agreement requires Rose Rock to distribute all of its available cash each quarter in the following manner:

	Total Quarterly Distributions Per Unit Target Amount						Marginal Percentage Interest in Distributions
							Unitholders		General Partner		Incentive Distribution Rights
Minimum Quarterly Distributions					$	0.362500	98.0	%	2.0	%	—
First Target Distribution	above	$	0.362500	up to	$	0.416875	98.0	%	2.0	%	—
Second Target Distribution	above	$	0.416875	up to	$	0.453125	85.0	%	2.0	%	13.0	%
Third Target Distribution	above	$	0.453125	up to	$	0.543750	75.0	%	2.0	%	23.0	%
Thereafter				above	$	0.543750	50.0	%	2.0	%	48.0	%

Distributions Paid and Declared

The following table shows the cash distributions paid or declared during 2013 and 2012 (in thousands, except for per unit amounts):

		Record Date	Payment Date	Distribution Per Unit			Distributions Paid/To Be Paid
Quarter Ended							SemGroup								Noncontrolling Interest Common Units		Total Distributions
							General Partner		Incentive Distributions		Common Units		Subordinated Units
December 31, 2011	*	February 3, 2012	February 13, 2012	$	0.0670	*	$	23	$	—	$	93	$	561	$	470	$	1,147
March 31, 2012		May 7, 2012	May 15, 2012	$	0.3725		$	128	$	—	$	517	$	3,125	$	2,607	$	6,377
June 30, 2012		August 6, 2012	August 14, 2012	$	0.3825		$	131	$	—	$	532	$	3,209	$	2,678	$	6,550
September 30, 2012		November 5, 2012	November 14, 2012	$	0.3925		$	134	$	—	$	545	$	3,294	$	2,748	$	6,721
December 31, 2012		February 4, 2013	February 14, 2013	$	0.4025		$	167	$	—	$	1,163	$	3,377	$	3,624	$	8,331
March 31, 2013		May 6, 2013	May 15, 2013	$	0.4300		$	179	$	41	$	1,242	$	3,607	$	3,872	$	8,941
June 30, 2013		August 5, 2013	August 14, 2013	$	0.4400		$	183	$	72	$	1,271	$	3,692	$	3,962	$	9,180
September 30, 2013	**	November 5, 2013	November 14, 2013	$	0.4500	**	$	232	$	127	$	1,301	$	3,775	$	6,189	$	11,624

*Minimum quarterly distribution for quarter ended December 31, 2011 was prorated for the period beginning immediately after the closing of Rose Rock’s IPO, December 14, 2011 through December 31, 2011.

**Expected payment date and amounts for distributions related to the quarter ended September 30, 2013.

Summarized Balance Sheet Information

Certain summarized balance sheet information of Rose Rock is shown below (in thousands):

	(unaudited)
	September 30, 2013		December 31, 2012
Cash	$	1,914	$	108
Other current assets	292,386		250,509
Property, plant and equipment, net	313,193		291,530
Equity method investment	77,449		—
Goodwill	27,261		—
Other noncurrent assets, net	10,536		2,579
Total assets	$	722,739	$	544,726
Current liabilities	$	254,491	$	231,843
Long-term debt	85,043		4,562
Partners’ capital attributable to SemGroup	130,845		179,187
Partners’ capital attributable to noncontrolling interests	252,360		129,134
Total liabilities and partners’ capital	$	722,739	$	544,726

Summarized Income Statement Information

Certain summarized income statement information of Rose Rock for the three months and nine months ended September 30, 2013 and 2012 is shown below (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Revenue	$	181,831	$	131,554	$	514,485	$	468,687
Cost of products sold	$	157,550	$	111,790	$	446,507	$	412,847
Operating, general and administrative expenses	$	12,394	$	9,779	$	30,434	$	25,976
Depreciation and amortization expense	$	4,130	$	3,066	$	11,327	$	9,032
Earnings from equity method investment	$	3,527	$	—	$	10,431	$	—
Net income	$	9,411	$	6,469	$	30,539	$	19,353