Tulsa-based SemGroup Corporation reported a net loss of $2.7 million for the second quarter of 2018, compared to net loss of $33 million in the first quarter of 2018 and net income of $9.6 million in the second quarter of 2017. The improvement in quarter over quarter earnings is primarily due to lower income tax and interest expense pertaining to non-recurring items recognized during the first quarter, according to a company press release issued on Wednesday.
Adjusted EBITDA (adjusted earnings before interest, taxes, depreciation and amortization) was $99 million for the second quarter of 2018, compared to $93.4 million in the first quarter of 2018, and $65.4 million in the second quarter of 2017.
“We delivered solid financial results during the second quarter with improved earnings in five of our six segments,” said Carlin Conner, SemGroup’s President and Chief Executive Officer. “Improving crude oil and gas volumes, coupled with contributions from our organic growth projects, will continue to provide increasing cash flows. As we look to the second half of 2018, one of our highest priorities is executing additional capital raise measures that allow us to reach our leverage goals.”
SemGroup announced on August 7, 2018 that its Board of Directors declared a quarterly cash dividend of $0.4725 per share, or $1.89 per share annualized, which will be paid on August 29, 2018 to all common shareholders of record as of August 20, 2018.
The Board of Directors also declared a dividend to holders of its 7% Series A Cumulative Perpetual Convertible Preferred Stock. Pursuant to the terms of the convertible preferred shares, the company elected to have the aggregate amount of $6.2 million that would have been payable in cash as a dividend added to the liquidation preference of such shares as a payment in kind. The payment date for the payment in kind on the shares of convertible preferred stock is August 29, 2018 and the record date is August 20, 2018.