Condensed Consolidating Guarantor Financial Statements (Tables)

9 Months Ended

Sep. 30, 2019

Condensed Consolidating Guarantor Financial Statements [Abstract]

Schedule of Condensed Balance Sheet [Table Text Block]

Condensed Consolidating Guarantor Balance Sheets

	September 30, 2019
	Parent		Guarantors		Non-guarantors		Consolidating Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	204,474	$	—	$	12,665	$	(3,132	)	$	214,007
Accounts receivable, net	2		444,803		125,201		—			570,006
Receivable from affiliates	129		1		151		—			281
Inventories	—		66,883		—		—			66,883
Other current assets	7,459		11,367		7,611		(34		)	26,403
Total current assets	212,064		523,054		145,628		(3,166		)	877,580
Property, plant and equipment, net	6,713		946,468		2,974,464		—			3,927,645
Equity method investments	2,811,088		1,508,168		—		(4,035,618		)	283,638
Goodwill	—		—		338,856		—			338,856
Other intangible assets, net	1		113,433		330,795		—			444,229
Other noncurrent assets	44,114		4,196		102,707		—			151,017
Right of use assets, net	6,133		3,316		80,216		—			89,665
Total assets	$	3,080,113	$	3,098,635	$	3,972,666	$	(4,038,784	)	$	6,112,630
LIABILITIES, PREFERRED STOCK AND OWNERS’ EQUITY
Current liabilities:
Accounts payable	$	3,274	$	444,373	$	55,089	$	—		$	502,736
Payable to affiliates	—		870		—		—			870
Accrued liabilities	26,118		15,582		71,990		3			113,693
Other current liabilities	4,961		2,717		24,352		—			32,030
Total current liabilities	34,353		463,542		151,431		3			649,329
Long-term debt	1,351,079		6,098		1,126,247		(6,098		)	2,477,326
Deferred income taxes	61,601		—		71,379		—			132,980
Other noncurrent liabilities	5,936		3,883		131,813		—			141,632
Commitments and contingencies
Redeemable preferred stock	379,285		—		—		—			379,285
Subsidiary redeemable preferred stock	—		—		258,376		—			258,376
Owners' equity excluding noncontrolling interests in consolidated subsidiaries	1,247,859		2,625,112		1,407,577		(4,032,689		)	1,247,859
Noncontrolling interests in consolidated subsidiaries	—		—		825,843		—			825,843
Total owners’ equity	1,247,859		2,625,112		2,233,420		(4,032,689		)	2,073,702
Total liabilities, preferred stock and owners’ equity	$	3,080,113	$	3,098,635	$	3,972,666	$	(4,038,784	)	$	6,112,630

	December 31, 2018
	Parent		Guarantors		Non-guarantors		Consolidating Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	40,064	$	—	$	50,742	$	(4,151	)	$	86,655
Accounts receivable, net	83		461,980		100,151		—			562,214
Receivable from affiliates	120		18		157		—			295
Inventories	—		49,397		—		—			49,397
Other current assets	6,682		6,711		3,871		—			17,264
Total current assets	46,949		518,106		154,921		(4,151		)	715,825
Property, plant and equipment, net	6,732		992,974		2,457,620		—			3,457,326
Equity method investments	3,267,581		1,553,360		—		(4,546,932		)	274,009
Goodwill	—		—		257,302		—			257,302
Other intangible assets, net	5		119,583		245,450		—			365,038
Other noncurrent assets	41,981		4,788		94,038		—			140,807
Total assets	$	3,363,248	$	3,188,811	$	3,209,331	$	(4,551,083	)	$	5,210,307
LIABILITIES, PREFERRED STOCK AND OWNERS’ EQUITY
Current liabilities:
Accounts payable	$	38	$	444,984	$	49,770	$	—		$	494,792
Payable to affiliates	1		3,714		—		—			3,715
Accrued liabilities	33,239		18,424		63,430		2			115,095
Other current liabilities	5,723		3,409		14,423		—			23,555
Total current liabilities	39,001		470,531		127,623		2			637,157
Long-term debt	1,467,083		6,315		811,751		(6,315		)	2,278,834
Deferred income taxes	4,882		—		50,907		—			55,789
Other noncurrent liabilities	1,792		—		36,756		—			38,548
Commitments and contingencies
Redeemable preferred stock	359,658		—		—		—			359,658
Owners' equity excluding noncontrolling interest in consolidated subsidiary	1,490,832		2,711,965		1,832,805		(4,544,770		)	1,490,832
Noncontrolling interest in consolidated subsidiary	—		—		349,489		—			349,489
Total owners’ equity	1,490,832		2,711,965		2,182,294		(4,544,770		)	1,840,321
Total liabilities, preferred stock and owners’ equity	$	3,363,248	$	3,188,811	$	3,209,331	$	(4,551,083	)	$	5,210,307

Schedule of Condensed Income Statement [Table Text Block]

Condensed Consolidating Guarantor Statements of Operations

	Three Months Ended September 30, 2019
	Parent			Guarantors			Non-guarantors			Consolidating Adjustments			Consolidated
Revenues:
Product	$	—		$	399,679		$	—		$	—		$	399,679
Service	—			25,318			73,667			(20		)	98,965
Storage	—			4,777			39,343			(2,976		)	41,144
Lease	—			—			3,873			—			3,873
Other	—			—			18,749			—			18,749
Total revenues	—			429,774			135,632			(2,996		)	562,410
Expenses:
Costs of products sold, exclusive of depreciation and amortization shown below	—			380,134			36			(2,996		)	377,174
Operating	—			20,246			53,373			—			73,619
General and administrative	15,361			3,772			10,529			—			29,662
Depreciation and amortization	736			18,489			42,264			—			61,489
Loss (gain) on disposal or impairment, net	(5,697		)	14,774			(9,450		)	—			(373		)
Total expenses	10,400			437,415			96,752			(2,996		)	541,571
Earnings from equity method investments	14,936			19,010			—			(24,881		)	9,065
Operating income	4,536			11,369			38,880			(24,881		)	29,904
Other expenses (income), net:
Interest expense	23,951			290			15,422			—			39,663
Foreign currency transaction loss	795			—			6			—			801
Other income, net	(1,002		)	(6		)	(67		)	—			(1,075		)
Total other expenses, net	23,744			284			15,361			—			39,389
Income (loss) before income taxes	(19,208		)	11,085			23,519			(24,881		)	(9,485		)
Income tax expense (benefit)	(6,700		)	—			2,681			—			(4,019		)
Net income (loss)	(12,508		)	11,085			20,838			(24,881		)	(5,466		)
Less: net income attributable to noncontrolling interests	—			—			7,042			—			7,042
Net income (loss) attributable to SemGroup	$	(12,508	)	$	11,085		$	13,796		$	(24,881	)	$	(12,508	)
Net income (loss)	$	(12,508	)	$	11,085		$	20,838		$	(24,881	)	$	(5,466	)
Other comprehensive income (loss), net of income taxes	2,779			195			(9,291		)	—			(6,317		)
Comprehensive income (loss)	(9,729		)	11,280			11,547			(24,881		)	(11,783		)
Less: net income attributable to noncontrolling interests	—			—			7,042			—			7,042
Less: other comprehensive loss attributable to noncontrolling interests	—			—			(4,605		)	—			(4,605		)
Comprehensive income (loss) attributable to SemGroup	$	(9,729	)	$	11,280		$	9,110		$	(24,881	)	$	(14,220	)

	Three Months Ended September 30, 2018
	Parent			Guarantors			Non-guarantors			Consolidating Adjustments			Consolidated
Revenues:
Product	$	—		$	487,676		$	17		$	—		$	487,693
Service	—			34,042			52,080			—			86,122
Storage	—			5,652			36,262			—			41,914
Lease	—			—			3,937			—			3,937
Other	—			—			14,330			—			14,330
Total revenues	—			527,370			106,626			—			633,996
Expenses:
Costs of products sold, exclusive of depreciation and amortization shown below	—			468,841			30			—			468,871
Operating	—			27,806			37,029			—			64,835
General and administrative	6,174			5,640			10,090			—			21,904
Depreciation and amortization	719			19,477			33,402			—			53,598
Loss (gain) on disposal or impairment, net	1,198			(1,581		)	—			—			(383		)
Total expenses	8,091			520,183			80,551			—			608,825
Earnings from equity method investments	28,555			21,966			—			(35,993		)	14,528
Operating income	20,464			29,153			26,075			(35,993		)	39,699
Other expenses (income), net:
Interest expense	19,341			10,400			5,577			—			35,318
Foreign currency transaction gain	(961		)	—			(22		)	—			(983		)
Other income, net	(40		)	(9		)	(351		)	—			(400		)
Total other expenses, net	18,340			10,391			5,204			—			33,935
Income before income taxes	2,124			18,762			20,871			(35,993		)	5,764
Income tax expense (benefit)	(6,337		)	—			3,640			—			(2,697		)
Net income	8,461			18,762			17,231			(35,993		)	8,461
Other comprehensive income (loss), net of income taxes	(6,111		)	87			9,376			—			3,352
Comprehensive income	$	2,350		$	18,849		$	26,607		$	(35,993	)	$	11,813

	Nine Months Ended September 30, 2019
	Parent			Guarantors			Non-guarantors			Consolidating Adjustments			Consolidated
Revenues:
Product	$	—		$	1,335,953		$	961		$	—		$	1,336,914
Service	—			79,562			199,637			(225		)	278,974
Storage	—			14,821			118,108			(8,928		)	124,001
Lease	—			—			11,789			—			11,789
Other	—			83			52,821			—			52,904
Total revenues	—			1,430,419			383,316			(9,153		)	1,804,582
Expenses:
Costs of products sold, exclusive of depreciation and amortization shown below	—			1,282,162			1,117			(9,153		)	1,274,126
Operating	—			68,801			146,022			—			214,823
General and administrative	43,710			11,036			29,983			—			84,729
Depreciation and amortization	2,146			56,634			125,756			—			184,536
Loss (gain) on disposal or impairment, net	(5,697		)	17,892			(5,076		)	—			7,119
Total expenses	40,159			1,436,525			297,802			(9,153		)	1,765,333
Earnings from equity method investments	58,423			42,441			—			(65,153		)	35,711
Operating income	18,264			36,335			85,514			(65,153		)	74,960
Other expenses (income), net:
Interest expense	73,683			926			40,764			(148		)	115,225
Foreign currency transaction gain	(461		)	—			(15		)	—			(476		)
Other income, net	(2,656		)	(57		)	(836		)	148			(3,401		)
Total other expenses, net	70,566			869			39,913			—			111,348
Income (loss) before income taxes	(52,302		)	35,466			45,601			(65,153		)	(36,388		)
Income tax benefit	(7,368		)	—			(7,342		)	—			(14,710		)
Net income (loss)	(44,934		)	35,466			52,943			(65,153		)	(21,678		)
Less: net income attributable to noncontrolling interests	—			—			23,256			—			23,256
Net income (loss) attributable to SemGroup	$	(44,934	)	$	35,466		$	29,687		$	(65,153	)	$	(44,934	)
Net income (loss)	$	(44,934	)	$	35,466		$	52,943		$	(65,153	)	$	(21,678	)
Other comprehensive income (loss), net of income taxes	(6,844		)	217			13,464			—			6,837
Comprehensive income (loss)	(51,778		)	35,683			66,407			(65,153		)	(14,841		)
Less: net income attributable to noncontrolling interests	—			—			23,256			—			23,256
Less: other comprehensive income attributable to noncontrolling interests	—			—			8,993			—			8,993
Comprehensive income (loss) attributable to SemGroup	$	(51,778	)	$	35,683		$	34,158		$	(65,153	)	$	(47,090	)

	Nine Months Ended September 30, 2018
	Parent			Guarantors			Non-guarantors			Consolidating Adjustments			Consolidated
Revenues:
Product	$	—		$	1,390,415		$	31,336		$	—		$	1,421,751
Service	—			100,703			181,665			—			282,368
Storage	—			17,601			109,000			—			126,601
Lease	—			—			12,517			—			12,517
Other	—			—			48,162			—			48,162
Total revenues	—			1,508,719			382,680			—			1,891,399
Expenses:
Costs of products sold, exclusive of depreciation and amortization shown below	—			1,350,821			26,271			—			1,377,092
Operating	—			83,979			140,892			—			224,871
General and administrative	19,149			17,500			34,618			—			71,267
Depreciation and amortization	2,213			57,830			95,846			—			155,889
Loss (gain) on disposal or impairment, net	133,808			(152,634		)	16,701			—			(2,125		)
Total expenses	155,170			1,357,496			314,328			—			1,826,994
Earnings from equity method investments	188,136			50,947			—			(197,590		)	41,493
Operating income	32,966			202,170			68,352			(197,590		)	105,898
Other expenses (income), net:
Interest expense	50,582			45,931			17,410			(240		)	113,683
Foreign currency transaction loss (gain)	5,505			147			(1,027		)	—			4,625
Other income, net	(896		)	(17		)	(1,210		)	240			(1,883		)
Total other expenses, net	55,191			46,061			15,173			—			116,425
Income (loss) before income taxes	(22,225		)	156,109			53,179			(197,590		)	(10,527		)
Income tax expense	5,075			—			11,698			—			16,773
Net income (loss)	(27,300		)	156,109			41,481			(197,590		)	(27,300		)
Other comprehensive income (loss), net of income taxes	(16,202		)	242			43,663			—			27,703
Comprehensive income (loss)	$	(43,502	)	$	156,351		$	85,144		$	(197,590	)	$	403

Schedule of Condensed Cash Flow Statement [Table Text Block]

	Nine Months Ended September 30, 2019
	Parent			Guarantors			Non-guarantors			Consolidating Adjustments			Consolidated
Net cash provided by (used in) operating activities	$	(113,034	)	$	94,810		$	152,908		$	35		$	134,719
Cash flows from investing activities:
Capital expenditures	(2,123		)	(24,497		)	(262,319		)	—			(288,939		)
Proceeds from sale of long-lived assets	10,955			786			1,076			—			12,817
Contributions to equity method investments	—			(25,456		)	—			—			(25,456		)
Payments to acquire businesses	—			—			(488,297		)	—			(488,297		)
Distributions in excess of equity in earnings of affiliates	—			15,838			—			—			15,838
Net cash provided (used in) investing activities	8,832			(33,329		)	(749,540		)	—			(774,037		)
Cash flows from financing activities:
Debt issuance costs	—			—			(13,241		)	—			(13,241		)
Borrowings on credit facilities and issuance of senior notes, net of discount	95,500			—			504,604			—			600,104
Principal payments on credit facilities and other obligations	(217,845		)	—			(177,120		)	—			(394,965		)
Proceeds from issuance of common stock, net of offering costs	—			—			448,443			—			448,443
Proceeds from issuance of preferred stock, net of offering costs	—			—			223,280			—			223,280
Contributions from noncontrolling interests	—			—			103,691			—			103,691
Distributions to noncontrolling interests	(20,770		)	—			(70,060		)	—			(90,830		)
Repurchase of common stock for payment of statutory taxes due on equity-based compensation	(736		)	—			—			—			(736		)
Dividends paid	(112,929		)	—			—			—			(112,929		)
Proceeds from issuance of common stock under employee stock purchase plan	306			—			217			—			523
Intercompany borrowings (advances), net	525,086			(61,481		)	(464,589		)	984			—
Net cash provided by (used in) financing activities	268,612			(61,481		)	555,225			984			763,340
Effect of exchange rate changes on cash and cash equivalents	—			—			3,330			—			3,330
Change in cash and cash equivalents	164,410			—			(38,077		)	1,019			127,352
Cash and cash equivalents at beginning of period	40,064			—			50,742			(4,151		)	86,655
Cash and cash equivalents at end of period	$	204,474		$	—		$	12,665		$	(3,132	)	$	214,007

	Nine Months Ended September 30, 2018
	Parent			Guarantors			Non-guarantors			Consolidating Adjustments			Consolidated
Net cash provided by (used in) operating activities	$	(78,542	)	$	76,038		$	138,919		$	—		$	136,415
Cash flows from investing activities:
Capital expenditures	(1,139		)	(59,609		)	(242,643		)	—			(303,391		)
Proceeds from sale of long-lived assets	—			1,892			(1,646		)	—			246
Proceeds from business divestiture	155,447			6,753			(15,465		)	—			146,735
Contributions to equity method investments	—			(7,466		)	—			—			(7,466		)
Distributions in excess of equity in earnings of affiliates	—			15,730			—			—			15,730
Net cash provided by (used in) investing activities	154,308			(42,700		)	(259,754		)	—			(148,146		)
Cash flows from financing activities:
Debt issuance costs	(475		)	—			(4,245		)	—			(4,720		)
Borrowings on credit facilities and issuance of senior notes, net of discount	541,000			—			598,500			—			1,139,500
Principal payments on credit facilities and other obligations	(217,120		)	(565,904		)	(593,625		)	—			(1,376,649		)
Proceeds from issuance of preferred stock, net of offering costs	342,299			—			—			—			342,299
Repurchase of common stock for payment of statutory taxes due on equity-based compensation	(699		)	—			—			—			(699		)
Dividends paid	(111,445		)	—			—			—			(111,445		)
Proceeds from issuance of common stock under employee stock purchase plan	228			—			—			—			228
Intercompany borrowing (advances), net	(640,614		)	532,580			102,108			5,926			—
Net cash provided by (used in) financing activities	(86,826		)	(33,324		)	102,738			5,926			(11,486		)
Effect of exchange rate changes on cash and cash equivalents	—			(14		)	(480		)	—			(494		)
Change in cash and cash equivalents	(11,060		)	—			(18,577		)	5,926			(23,711		)
Cash and cash equivalents at beginning of period	32,457			—			69,872			(8,630		)	93,699
Cash and cash equivalents at end of period	$	21,397		$	—		$	51,295		$	(2,704	)	$	69,988