semgroup and rose rock 3q 2015 earnings presentation

THIRD QUARTER 2015 RESULTSEarnings Conference Call - November 6, 2015

Forward-looking Information

Certain matters contained in this presentation include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, asamended, and Section 21E of the Securities Exchange Act of 1934, as amended. We make these forward-looking statements in reliance on the safe harborprotections provided under the Private Securities Litigation Reform Act of 1995.

All statements, other than statements of historical fact, included in this presentation including the prospects of our industry, our anticipated financialperformance, our anticipated annual dividend growth rate, management's plans and objectives for future operations, planned capital expenditures, businessprospects, outcome of regulatory proceedings, market conditions and other matters, may constitute forward-looking statements. Although we believe that theexpectations reflected in these forward-looking statements are reasonable, we cannot assure you that these expectations will prove to be correct. Theseforward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differmaterially from those reflected in these forward-looking statements. Factors that might cause actual results to differ include, but are not limited to, our ability togenerate sufficient cash flow from operations to enable us to pay our debt obligations or to fund our other liquidity needs; our ability to comply with thecovenants contained in the instruments governing our indebtedness and to maintain certain financial ratios required by our credit facilities; the effect of our debtlevel on our future financial and operating flexibility, including our ability to obtain additional capital; the ability of our subsidiary, Rose Rock Midstream L.P.(NYSE: RRMS), to make minimum quarterly distributions; the operations of NGL Energy Partners LP (NYSE: NGL), which we do not control; any sustainedreduction in demand for the petroleum products we gather, transport, process and store; our ability to obtain new sources of supply of petroleum products; ourfailure to comply with new or existing environmental laws or regulations or cross border laws or regulations; the possibility that the construction or acquisition ofnew assets may not result in the corresponding anticipated revenue increases; changes in currency exchange rates; cyber attacks involving our informationsystems and related infrastructure; the risks and uncertainties of doing business outside of the U.S., including political and economic instability and changes inlocal governmental laws, regulations and policies; and the possibility that our hedging activities may result in losses or may have a negative impact on ourfinancial results; as well as other risk factors discussed from time to time in each of our documents and reports filed with the SEC.

Readers are cautioned not to place undue reliance on any forward-looking statements contained in this presentation which reflect management's opinions onlyas of the date hereof. Except as required by law, we undertake no obligation to revise or publicly release the results of any revision to any forward-lookingstatements.

SemGroup and Rose Rock Midstream use their Investor Relations website and social media outlets as channels of distribution of material companyinformation. Such information is routinely posted and accessible on our Investor Relations websites at ir.semgroupcorp.com and ir.rrmidstream.com.

Both companies are present on Twitter and LinkedIn, follow us at the links below:

SemGroup Twitter and LinkedIn Rose Rock Midstream Twitter and LinkedIn

2

http://ir.semgroupcorp.com/CorporateProfile.aspx?iid=4135511

http://ir.rrmidstream.com/CorporateProfile.aspx?iid=4308013

https://twitter.com/SemGroupCorp

http://www.linkedin.com/company/3258367?trk=tyah

https://twitter.com/RoseRockMid

http://www.linkedin.com/company/3258406?trk=tyah

Non-GAAP Financial MeasuresSemGroupAdjusted EBITDA is presented in this presentation for certain periods. Adjusted EBITDA is not a U.S. generally accepted accounting principles (“GAAP”)measure and is not intended to be used in lieu of a GAAP presentation of net income (loss). Adjusted EBITDA is presented in this presentation becauseSemGroup believes it provides additional information with respect to its performance. Adjusted EBITDA represents earnings before interest, taxes, depreciationand amortization, adjusted for selected items that SemGroup believes impact the comparability of financial results between reporting periods. AlthoughSemGroup presents selected items that it considers in evaluating its performance, you should also be aware that the items presented do not represent all itemsthat affect comparability between the periods presented. Variations in SemGroup’s operating results are also caused by changes in volumes, prices, exchangerates, mechanical interruptions and numerous other factors. These types of variances are not separately identified in this presentation. Because all companiesdo not use identical calculations, SemGroup’s presentation of Adjusted EBITDA may be different from similarly titled measures of other companies, therebydiminishing its utility. Reconciliations of net income (loss) to Adjusted EBITDA for the periods presented are included in the appendix of this presentation.

Rose Rock Midstream

This presentation includes the non-GAAP financial measures of Adjusted gross margin, Adjusted EBITDA and distributable cash flow, which may be usedperiodically by management when discussing our financial results with investors and analysts. The appendix of this presentation provides reconciliations ofthese non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP. Adjusted grossmargin, Adjusted EBITDA and distributable cash flow are presented as management believes they provide additional information and metrics relative to theperformance of our business.

Operating income (loss) is the GAAP measure most directly comparable to Adjusted gross margin, net income (loss) and cash provided by (used in) operatingactivities are the GAAP measures most directly comparable to Adjusted EBITDA, and net income (loss) is the GAAP measure most directly comparable todistributable cash flow. Our non-GAAP financial measures should not be considered as alternatives to the most directly comparable GAAP financial measures.These non-GAAP financial measures have important limitations as analytical tools because they exclude some, but not all, items that affect the most directlycomparable GAAP financial measures. You should not consider Adjusted gross margin, Adjusted EBITDA or distributable cash flow in isolation or as substitutesfor analysis of our results as reported under GAAP. Because Adjusted gross margin, Adjusted EBITDA and distributable cash flow may be defined differently byother companies in our industry, our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies,thereby diminishing their utility.

Management compensates for the limitation of Adjusted gross margin, Adjusted EBITDA and distributable cash flow as analytical tools by reviewing thecomparable GAAP measures, understanding the differences between Adjusted gross margin, Adjusted EBITDA and distributable cash flow, on the one hand,and operating income (loss), net income (loss) and net cash provided by (used in) operating activities, on the other hand, and incorporating this knowledge intoits decision-making processes. We believe that investors benefit from having access to the same financial measures that our management uses in evaluatingour operating results.

3

Business Review

Overview¬ Industry facing headwinds in low price environment¬ Targeting to maintain or grow volumes in key asset areas¬ Reducing full year Adjusted EBITDA guidance due to market conditions and and foreign currency impact

- SemGroup Updated Adjusted EBITDA Guidance of $305 - $315 million- Rose Rock Midstream Updated Adjusted EBITDA Guidance of $175 - $185 million

SemGroup Dividend Increased¬ Increased third quarter 2015 dividend by 50% over third quarter 2014¬ Maintain 2015 guidance of 50-60% year-over-year growth

Rose Rock Midstream Distribution Increased¬ Increased third quarter 2015 distribution by nearly 15% over third quarter 2014¬ Maintain 2015 guidance of 15-20% year-over-year growth

Financial Flexibility¬ No immediate capital market needs; revolver availability to fund capex projects¬ SemGas drop-down structure flexibility

Potential M&A¬ Strong balance sheet¬ Focused on strategic opportunities

4

Regional Update

Gulf Coast ¬ Maurepas Pipeline on-track for a Q4 2016 completion, approximately $55 million capex shift to 2016 ¬ Continued effort to expand footprint ¬ Actively pursuing acquisitions in this region

DJ Basin¬ Economically advantaged basin ¬ Key producers suggest that they will continue to focus capital on their positions in the DJ Basin¬ Increased gathering capacity for White Cliffs Pipeline¬ Increased competitive takeaway capacity

Mississippi Lime¬ Inventory of drilled but uncompleted wells to support production volumes¬ Anticipate maintaining third quarter 2015 processing volumes through 2016

Montney/Duvernay ¬ Announced commissioning of the KA North Condensate pipeline and the restart of the KA

condensate stabilizer¬ Strong incumbent position to serve industry's growing infrastructure needs

5

Third Quarter 2015 Adjusted EBITDA(1)

(1) Non-GAAP Financial Data Reconciliations are included in the Appendix to this presentation(2) Crude segment includes fully consolidated Rose Rock Midstream

Key Highlights (3Q 2015 vs 2Q 2015)¬ Crude decreased $1.6 million - decrease in marketing was partially offset by lower operating and G&A expenses¬ SemGas decreased $2.0 million - decrease due to lower gathering and processing volumes

Key Highlights (3Q YTD 2015 vs 3Q YTD 2014)¬ Crude increased $21.6 million due to higher pipeline transportation volumes and marketing margins¬ SemGas increased $7.4 million as a result of a 53% increase in Northern Oklahoma processing volumes

3Q 2015 2Q 2015 1Q 20159 monthsending9/30/15

9 monthsending9/30/14

Crude(2) $ 42.2 $ 43.8 $ 41.6 $ 127.6 $ 106.0SemGas 17.4 19.4 15.1 51.9 44.5SemCAMS 9.2 8.5 8.4 26.1 36.5SemLogistics 2.0 2.2 1.0 5.2 (0.8)SemMaterials Mexico 4.6 5.3 5.3 15.2 12.6SemStream 4.7 4.5 5.0 14.2 17.3Corporate and Other (4.1) (3.7) (6.4) (14.2) (11.9)

SemGroup $ 76.0 $ 80.0 $ 70.0 $ 226.0 $ 204.2

Rose Rock Midstream $ 41.9 $ 44.7 $ 42.1 $ 128.7 $ 82.8

6

2015 Capital Expenditure Guidance

2015 Capital Expenditures – $650 million

7

n Natural Gasn Cruden Other Growth Projectsn Maintenance

$355

38%

54%

1%

7%

$245

$5

$45

__

¬ Project update- Platteville expansion completed- Maurepas Pipeline on-track for a Q4 2016 completion

¬ Growth capex guidance reduced $90million to reflect timing of capital spend

¬ Reduced capex guidance $35 millionprimarily a result of a decrease inSemGas well connects

¬ More than 90% of capital expendituresare focused on growth capital

¬ Targeting EBITDA multiples of 5-8x onorganic growth projects in key asset plays

2015 Updated Capital Expenditure Guidance

8

(1) Investment in affiliate; reflects our proportional capex

(in millions)

Total ProjectSegment Description

Estimated Completion

Date 2015 Capex 2016 CapexSemGroup

Crude Maurepas Pipeline 4Q 2016 205 275 500SemGas Northern Oklahoma gas gathering & processing expansion varies 105 40 145SemCAMS Wapiti Pipeline Expansion varies 45 5 50SemCAMS K3 Plant projects varies 10 10 20SemCAMS KA Plant projects varies 40 25 65

Other/undesignated growth projects varies 60 135Maintenance 35 30

Total SemGroup $500

Rose Rock MidstreamCrude White Cliffs Pipeline capacity expansion(1) 1H 2016 35 5 40Crude Isabel Pipeline 1Q 2016 30 5 35Crude Platteville truck unloading expansion October 2015 25 — 25Crude Wattenberg Oil Trunkline extension 1Q 2015 20 10 30

Other/undesignated growth projects 30Maintenance 10 10

Total Rose Rock Midstream $150

Total $650 $500-$600

SemGroup Corporation Dividend Growth(1)

9

(1) Assumes no further drop downs to Rose Rock or 3rd party acquisitions

2015 Target Dividend Growth 50-60% year-over-year

4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4QE

$0.2200$0.2400

$0.2700$0.3000

$0.3400

$0.3800

$0.4200$0.4500

2013 2014 2015

$0.7500

$0.6500

$0.5500

$0.4500

$0.3500

$0.2500

1Q 2Q 3Q 4QE

$0.6350 $0.6500 $0.6600

Rose Rock Midstream Distribution Growth(1)

10

(1) Assumes no further drop downs from SemGroup or 3rd party acquisitions

2015 Target Annual Coverage Ratio 1.1x-1.2x2015 Target Distribution Growth 15-20% year-over-year

4Q 4Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4QE

$0.3625

$0.4025

$0.4650$0.4950

$0.5350

$0.5750

$0.6200 $0.6350 $0.6500 $0.6600

2011 2012 2013 2014 2015

Leverage & Liquidity

11

(in millions, unaudited)

SemGroup Rose RockSeptember 30, 2015 September 30, 2015

Revolving credit facility - December 2018Revolving credit facility - September 2018

7.500% Senior unsecured notes - 2021 $300.05.625% Senior unsecured notes - 2022 $400.05.625% Senior unsecured notes - 2023 350.0

Total consolidated debt $300.0 $750.0

Compliance leverage ratio(1) 1.08x 3.96x

Liquidity:Cash and cash equivalents 146.0 44.0Revolver availability(2) 495.5 546.1

Total liquidity $641.5 $590.1

(1) Calculated per credit agreement definitions(2) Revolver availability less outstanding letters of credit

More than $1.2 Billion of Combined Liquidity

Growing today with a focus for tomorrow

Safety

12

Crude StorageOklahoma

DisciplinedInvestment Execution Increase Equity

Holders Return

SemGas Rose Valley PlantOklahoma

SemCAMS K3 PlantsCanada

APPENDIX

SemGroup’s Fee-based Business Model

14

Margin Descriptions

¬ Fixed Fee– Storage fees– Transportation fees– Unloading fees– Gathering and processing fees

¬ Variable Fee– Gas processing – percent ofproceeds

¬ Marketing– Back-to-back marketingand blending transactions

(1) LTM September 30, 2015(2) SemGas 3Q 2015 margin contribution 73% fixed fee, 27% variable fee(3) Rose Rock Midstream includes White Cliffs and Glass Mtn Pipeline proportionate cash distributions(4) Marketing margin reduced by intercompany trucking expense

Fixed Fee Variable Fee MarketingSemGas(2) 72% 28%SemCAMS 100%SemLogistics 100%SemMaterials Mexico 100%White Cliffs Pipeline 100%Rose Rock Midstream(3)(4) 85% 15%

Margin Contribution(1)

n Fixed Fee n Variable Fee n Marketing

88%

6%6%

250

200

150

100

50

0

4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

57.1 67.3 64.9 65.2 71.8 65.3 69.1 57.8

11.026.6 28.5 31.2 35.2 45.8 50.0 51.630.942.7 46.1

75.085.6 76.8

93.2 91.6

2013 2014 2015

120

90

60

30

0

4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

48.7 49.6 39.3 51.568.7 75.4

100.2125.5

2013 2014 2015

2252001751501251007550250

4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

77.4 72.7 74.1 98.5 118.4 139.2 121.3 120.743.7 61.7

61.165.2

64.9 71.8 61.5

2013 2014 2015

Crude Key Performance Metrics

15

(1) 100% of storage contract volumes are included in year of contract expiration(2) Pipeline volumes include KS/OK system, ND transportation and Tampa pipeline(3) Includes intercompany trucking volumes; 14.0kbpd in 3Q 2015(4) White Cliffs Pipeline is owned 51% by RRMS; reflects 100% throughput(5) Glass Mountain Pipeline is owned 50% by RRMS; average volumes for 1Q 2014 for two months operational;

reflects 100% throughput

Crude Transportation Volumes(Thousand Barrels per Day)

Crude Marketing Volumes(Thousand Barrels per Day)

8

6

4

2

0

2015 2016 2017 2018

n Pipeline Volumes(2) n Wattenberg Oil Trunkline n Field Services(3)

Crude Cushing Storage 7.6 million Barrels Capacity

6.50 6.004.65

3.15

Joint Venture Transportation Volumes

(Thousand Barrels per Day)

n Contracted(1) n Operational / Marketing n Uncontracted

1.35

1.101.35

1.353.10

1.60

0.25

n White Cliffs Pipeline Volumes(4) n Glass Mountain Pipeline Volumes(5)

SemCAMS Avg Throughput Volume (mmcf/d)

500

400

300

200

100

0

4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

272.6 285.8148.2

274.2340.1 302.5 288.8 254.6

146.9 152.6

186.1

138.397.9

91.9 96.693.4

2013 2014 2015

SemGas Northern OK Avg Processed Volume (mmcf/d)

Capacity Processing Volumes

600500400300200100

0

4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

156.9 167.7 251.4 315.9 355.9 369.0 384.2 368.0

2013 2014 2015

Natural Gas Business

16

n K3 Plant n KA Plant

419.5 438.4

334.3412.5 438.0 394.4 385.3

348.0

SemGroup Consolidated Balance Sheets

17

(in thousands, unaudited, condensed) September 30, 2015

December 31, 2014

ASSETSCurrent assets $ 571,241 $ 479,280Property, plant and equipment, net 1,474,947 1,256,825Goodwill and other intangible assets 222,432 231,391Equity method investments 547,448 577,920Other noncurrent assets, net 61,500 44,386Total assets $ 2,877,568 $ 2,589,802

LIABILITIES AND OWNERS' EQUITYCurrent liabilities:

Current portion of long-term debt $ 37 $ 40Other current liabilities 378,133 391,622

Total current liabilities 378,170 391,662

Long-term debt, excluding current portion 1,044,468 767,092Other noncurrent liabilities 220,768 211,611Total liabilities 1,643,406 1,370,365

Total owners' equity 1,234,162 1,219,437Total liabilities and owners' equity $ 2,877,568 $ 2,589,802

SemGroup Consolidated Statements of Operations and Comprehensive Income

18

(in thousands, except per share amounts, unaudited) Three Months Ended Nine Months EndedSeptember 30, June 30, September 30,

2015 2014 2015 2015 2014Revenues $ 397,065 $ 594,235 $ 377,226 $ 1,072,601 $ 1,575,342Expenses:

Costs of products sold, exclusive of depreciation and amortization shown below 274,639 458,063 244,158 710,869 1,211,703Operating 53,267 69,377 60,800 167,157 179,579General and administrative 23,045 23,296 22,917 78,272 63,882Depreciation and amortization 26,022 25,200 24,674 74,430 70,899Loss (gain) on disposal or impairment of long-lived assets, net (951) 1,376 1,372 1,479 20,633Total expenses 376,022 577,312 353,921 1,032,207 1,546,696

Earnings from equity method investments 16,237 14,223 23,903 60,699 48,372Gain on issuance of common units by equity method investee 136 18,772 5,897 6,033 26,899Operating income 37,416 49,918 53,105 107,126 103,917Other expenses (income), net 17,829 (6,368) 9,809 33,725 30,618Income from continuing operations before income taxes 19,587 56,286 43,296 73,401 73,299Income tax expense 10,006 24,090 14,861 29,609 33,944Income from continuing operations 9,581 32,196 28,435 43,792 39,355Loss from discontinued operations, net of income taxes (1) — (2) (3) (5)Net income 9,580 32,196 28,433 43,789 39,350

Less: net income attributable to noncontrolling interests 4,707 6,934 5,136 14,153 18,184Net income attributable to SemGroup Corporation $ 4,873 $ 25,262 $ 23,297 $ 29,636 $ 21,166Net income attributable to SemGroup Corporation $ 4,873 $ 25,262 $ 23,297 $ 29,636 $ 21,166Other comprehensive income (loss), net of income taxes (20,210) (10,331) 5,520 (23,750) (6,618)Comprehensive income (loss) attributable to SemGroup Corporation $ (15,337) $ 14,931 $ 28,817 $ 5,886 $ 14,548

Net income per common shareBasic $ 0.11 $ 0.59 $ 0.53 $ 0.68 $ 0.50Diluted $ 0.11 $ 0.59 $ 0.53 $ 0.67 $ 0.49

Weighted average shares (thousands):Basic 43,808 42,708 43,798 43,775 42,674Diluted 43,971 43,013 44,013 43,969 42,976

SemGroup Non-GAAP Adjusted EBITDA Calculation

19

(in thousands, unaudited) Three Months Ended Nine Months EndedSeptember 30, June 30, September 30,

Reconciliation of net income to Adjusted EBITDA: 2015 2014 2015 2015 2014Net income $ 9,580 $ 32,196 $ 28,433 $ 43,789 $ 39,350

Add: Interest expense 19,170 14,807 16,822 50,583 34,394Add: Income tax expense 10,006 24,090 14,861 29,609 33,944Add: Depreciation and amortization expense 26,022 25,200 24,674 74,430 70,899

EBITDA 64,778 96,293 84,790 198,411 178,587Selected Non-Cash Items and

Other Items Impacting Comparability 11,171 (16,868) (4,764) 27,546 25,647Adjusted EBITDA $ 75,949 $ 79,425 $ 80,026 $ 225,957 $ 204,234

Selected Non-Cash Items andOther Items Impacting ComparabilityLoss (gain) on disposal or impairment of long-lived assets, net $ (951) $ 1,376 $ 1,372 $ 1,479 $ 20,633Loss from discontinued operations, net of income taxes 1 — 2 3 5Foreign currency transaction (gain) loss (385) 128 (295) (1,199) (388)Remove NGL equity earnings including gain on issuance of common units 742 (14,290) (12,117) (11,070) (30,976)Remove gain on sale of NGL units — (26,748) (6,623) (14,517) (26,748)NGL cash distribution 4,752 6,450 4,468 14,235 17,462M&A transaction related costs — — — 10,000 —Inventory valuation adjustments including equity method investees 142 — 48 1,377 —Employee severance expense 21 90 21 42 119Unrealized gain on derivative activities (4,546) (411) (1,415) (3,316) (656)Change in fair value of warrants — 5,550 — — 23,499Depreciation and amortization included within equity earnings 6,412 4,887 6,346 19,134 12,588Bankruptcy related expenses 33 116 2 224 993Charitable contributions — 3,298 — — 3,298Legal settlement expense 3,394 — — 3,394 —Recovery of receivables written off at emergence — — — — (664)Non-cash equity compensation 1,556 2,686 3,427 7,760 6,482Selected Non-Cash items and

Other Items Impacting Comparability $ 11,171 $ (16,868) $ (4,764) $ 27,546 $ 25,647

SemGroup 2015 Adjusted EBITDA Guidance

20

(1) Guidance is on a cash basis for equity investments in NGL, includes fully consolidated Rose Rock Midstream

(in millions, unaudited) 2015 Guidance(1)

Mid-point

Net income $ 62.0

Add: Interest expense 69.0

Add: Income tax expense 38.0

Add: Depreciation and amortization 104.0

EBITDA $ 273.0

Selected Non-Cash and Other Items Impacting Comparability 37.0Adjusted EBITDA $ 310.0

Selected Non-Cash and Other Items Impacting Comparability

Depreciation and amortization included within equity earnings 25.5

Loss on disposal 1.5

Foreign currency transaction gain (1.2)

Inventory valuation adjustments including equity method investees 1.4

Remove gain on sale of NGL units (14.5)

Non-cash equity compensation 10.9

M&A related transaction costs 10.0

Legal settlement expense 3.4

Selected Non-Cash and Other Items Impacting Comparability $ 37.0

Crude Segment Adjusted EBITDA Calculation

21

(1) Crude segment includes fully consolidated Rose Rock Midstream


2015 2014 2015 2015 2014Net income(1) $ 9,834 $ 15,950 $ 13,954 $ 33,450 $ 44,182

Add: Interest expense 16,202 10,525 13,088 39,936 20,388Add: Depreciation and amortization expense 10,634 8,395 10,608 31,385 27,153


Other Items Impacting Comparability 5,497 5,698 6,134 22,781 14,240Adjusted EBITDA $ 42,167 $ 40,568 $ 43,784 $ 127,552 $ 105,963

Selected Non-Cash Items and Other Items Impacting Comparability

Loss (gain) on disposal of long-lived assets, net $ (603) $ 291 $ (79) $ (530) $ 230Employee severance expense 18 — 21 39 9Unrealized gain on derivative activities (4,546) (411) (1,415) (3,316) (656)Depreciation and amortization included within

equity earnings 6,412 4,887 6,346 19,134 12,588Inventory valuation adjustments including equity method investees 142 — 48 1,377 —Legal settlement expense 3,394 — — 3,394 —Non-cash equity compensation 680 931 1,213 2,683 2,069Selected Non-Cash items and

Other Items Impacting Comparability $ 5,497 $ 5,698 $ 6,134 $ 22,781 $ 14,240

SemGas Adjusted EBITDA Calculation

22


2015 2014 2015 2015 2014Net income (loss) $ 4,754 $ 7,448 $ 7,043 $ 16,688 $ (1,555)

Add: Interest expense 3,504 2,330 3,269 9,624 6,032Add: Depreciation and amortization expense 8,601 7,064 7,359 23,098 19,312


Other Items Impacting Comparability 561 260 1,778 2,539 20,748Adjusted EBITDA $ 17,420 $ 17,102 $ 19,449 $ 51,949 $ 44,537


Loss (gain) on disposal of long-lived assets, net $ 445 $ (12) $ 1,450 $ 1,894 $ 20,092Bankruptcy related expenses — 30 — — 90Non-cash equity compensation 116 242 328 645 566Selected Non-Cash items and

Other Items Impacting Comparability $ 561 $ 260 $ 1,778 $ 2,539 $ 20,748

SemCAMS Adjusted EBITDA Calculation

23


2015 2014 2015 2015 2014Net income $ 2,119 $ 5,310 $ 915 $ 4,233 $ 12,604

Add: Interest expense 2,270 3,918 3,117 8,499 11,869Add: Income tax expense 2,361 2,022 616 3,528 873Add: Depreciation and amortization expense 3,198 5,113 3,187 9,451 11,021


Other Items Impacting Comparability (745) 473 697 376 113Adjusted EBITDA $ 9,203 $ 16,836 $ 8,532 $ 26,087 $ 36,480


Foreign currency transaction (gain) loss $ 3 $ 1 $ 145 $ 104 $ (21)Gain on disposal of long-lived assets, net (917) (35) — (917) (950)Recovery of receivables written off at emergence — — — — (664)Employee severance — 90 — — 90Non-cash equity compensation 169 417 552 1,189 1,658Selected Non-Cash items and

Other Items Impacting Comparability $ (745) $ 473 $ 697 $ 376 $ 113

SemLogistics Adjusted EBITDA Calculation

24


2015 2014 2015 2015 2014Net income (loss) $ (1,077) $ (6,057) $ 103 $ (2,900) $ (6,099)

Add: Interest expense 433 396 443 1,341 1,107Add: Income tax expense (benefit) (170) (1,038) 167 (372) (1,565)Add: Depreciation and amortization expense 2,173 2,543 2,154 6,367 7,593

EBITDA 1,359 (4,156) 2,867 4,436 1,036Selected Non-Cash Items and

Other Items Impacting Comparability 670 1,898 (674) 801 (1,845)Adjusted EBITDA $ 2,029 $ (2,258) $ 2,193 $ 5,237 $ (809)


Loss from discontinued operations, net of income taxes $ — $ — $ — $ — $ 4Gain on disposal of long-lived assets, net — 1,139 — — (2,495)Foreign currency transaction (gain) loss 596 593 (873) 374 220Non-cash equity compensation 74 166 199 427 426Selected Non-Cash items and

Other Items Impacting Comparability $ 670 $ 1,898 $ (674) $ 801 $ (1,845)

SemMaterials México Adjusted EBITDA Calculation

25


2015 2014 2015 2015 2014Net income $ 2,473 $ 1,484 $ 3,199 $ 8,683 $ 4,534

Add: Interest expense 44 100 2 46 166Add: Income tax expense 642 1,092 764 2,396 3,134Add: Depreciation and amortization expense 993 1,655 1,037 3,083 4,538


Other Items Impacting Comparability 480 120 260 959 199Adjusted EBITDA $ 4,632 $ 4,451 $ 5,262 $ 15,167 $ 12,571


Gain (loss) on disposal of long-lived assets, net $ 124 $ (7) $ — $ 105 $ (35)Foreign currency transaction loss (gain) 269 9 94 494 (51)Non-cash equity compensation 87 118 166 360 285Selected Non-Cash items and

Other Items Impacting Comparability $ 480 $ 120 $ 260 $ 959 $ 199

SemStream Adjusted EBITDA Calculation

26


2015 2014 2015 2015 2014Net income $ 603 $ 42,301 $ 20,064 $ 29,575 $ 61,467

Add: Interest expense (1,352) (1,292) (1,336) (4,010) (3,833)EBITDA (749) 41,009 18,728 25,565 57,634

Selected Non-Cash Items and Other Items Impacting Comparability 5,494 (34,585) (14,271) (11,351) (40,257)

Adjusted EBITDA $ 4,745 $ 6,424 $ 4,457 $ 14,214 $ 17,377


Remove NGL equity losses (earnings) including gain onissuance of common units $ 742 $ (14,290) $ (12,117) $ (11,070) $ (30,976)Remove gain on sale of NGL units — (26,748) (6,623) (14,517) (26,748)NGL cash distribution 4,752 6,450 4,468 14,235 17,462Non-cash equity compensation — 3 1 1 5Selected Non-Cash items and

Other Items Impacting Comparability $ 5,494 $ (34,585) $ (14,271) $ (11,351) $ (40,257)

SemGroup Corporate & Other Adjusted EBITDA Calculation

27


2015 2014 2015 2015 2014

Net loss $ (9,126) $ (34,240) $ (16,845) $ (45,940) $ (75,783)Add: Interest expense (1,931) (1,170) (1,761) (4,853) (1,335)Add: Income tax expense 7,173 22,014 13,314 24,057 31,502Add: Depreciation and amortization expense 423 430 329 1,046 1,282

EBITDA (3,461) (12,966) (4,963) (25,690) (44,334)

Selected Non-Cash Items and Other Items Impacting Comparability (786) 9,268 1,312 11,441 32,449

Adjusted EBITDA $ (4,247) $ (3,698) $ (3,651) $ (14,249) $ (11,885)


Loss from discontinued operations, net of income taxes $ 1 $ — $ 2 $ 3 $ 1Loss on disposal or impairment of long-lived assets, net — — 1 927 3,791Foreign currency transaction loss (gain) (1,253) (475) 339 (2,171) (536)Employee severance expense 3 — — 3 20M&A transaction related costs — — — 10,000 —Change in fair value of warrants — 5,550 — — 23,499Bankruptcy related expenses 33 86 2 224 903Charitable contributions — 3,298 — — 3,298Non-cash equity compensation 430 809 968 2,455 1,473

Selected Non-Cash items andOther Items Impacting Comparability $ (786) $ 9,268 $ 1,312 $ 11,441 $ 32,449

Rose Rock Midstream Consolidated Balance Sheet

28

(in thousands, unaudited, condensed) September 30, 2015

December 31,2014(1)

ASSETS

Current assets $ 348,645 $ 274,769

Property, plant and equipment, net 425,820 396,066

Equity method investment 430,168 269,635

Other noncurrent assets, net 68,862 65,793Total assets $ 1,273,495 $ 1,006,263

LIABILITIES AND PARTNERS' CAPITAL

Current liabilities $ 270,452 $ 265,682

Long-term debt 744,468 432,092

Total liabilities 1,014,920 697,774

Partners’ capital 258,575 308,489Total liabilities and partners' capital $ 1,273,495 $ 1,006,263

(1) Prior period financial information has been recast to reflect the effects of the dropdown of the Wattenberg Oil Trunkline

1) Prior period financial information has been recast to reflect the effects of the dropdown of the Wattenberg Oil Trunkline

Rose Rock Midstream Consolidated Statements of Income

29

(in thousands, except per unit data, unaudited) Three Months Ended Nine Months Ended

September 30, June 30, September 30,

2015 2014(1) 2015 2015 2014(1)

Revenues, including revenues from affiliates

Product $ 211,881 $ 346,496 $ 193,525 $ 511,973 $ 879,873

Service 29,205 30,360 29,778 87,109 81,653Total revenues 241,086 376,856 223,303 599,082 961,526

Expenses, including expenses from affiliatesCosts of products sold, exclusive of depreciation

and amortization 195,244 333,646 173,133 464,614 843,928Operating 19,081 22,130 23,656 63,688 54,783

General and administrative 4,339 4,444 6,329 16,288 14,382Depreciation and amortization 10,634 8,395 10,608 31,385 27,153Total expenses 229,298 368,615 213,726 575,975 940,246

Earnings from equity method investments 17,115 16,289 17,683 55,662 39,660

Operating income 28,903 24,530 27,260 78,769 60,940

Other expenses:Interest expense 12,491 8,010 10,197 30,694 13,127Other income (9) — (5) (14) (21)Total other expenses, net 12,482 8,010 10,192 30,680 13,106

Net income 16,421 16,520 17,068 48,089 47,834Less: net income attributable to noncontrolling interests — — — — 7,758Net income attributable to Rose Rock Midstream, L.P. $ 16,421 $ 16,520 $ 17,068 $ 48,089 $ 40,076

(in thousands, except per unit data, unaudited) Three Months Ended Nine Months Ended

September 30, June 30, September 30,2015 2014(1) 2015 2015 2014(1)

Net income allocated to general partner $ 5,658 $ 2,193 $ 5,323 $ 15,723 $ 4,065Net income allocated to common unitholders $ 10,763 $ 10,370 $ 11,745 $ 32,366 $ 25,989Net income allocated to subordinated unitholders $ — $ 4,226 $ — $ — $ 11,086Net income (loss) allocated to Class A unitholders $ — $ (269) $ — $ — $ (1,064)

Net income (loss) per limited partner unit:Common unit (basic) $ 0.29 $ 0.50 $ 0.32 $ 0.90 $ 1.37Common unit (diluted) $ 0.29 $ 0.50 $ 0.32 $ 0.89 $ 1.36Subordinated unit (basic and diluted) $ — $ 0.50 $ — $ — $ 1.32Class A unit (basic and diluted) $ — $ (0.07) $ — $ — $ (0.36)

Basic weighted average number of limited partnerunits outstanding:Common units 36,792 20,574 36,790 36,136 19,029Subordinated units — 8,390 — — 8,390Class A units — 3,750 — — 2,953

Diluted weighted average number of limited partnerunits outstanding:Common units 36,831 20,646 36,839 36,179 19,088Subordinated units(2) — 8,390 — — 8,390Class A units(3) — 3,750 — — 2,953

Rose Rock Midstream Consolidated Statements of Income (Continued)

30

(1) Prior period financial information has been recast to reflect the effects of the dropdown of the Wattenberg Oil Trunkline(2) The Subordinated Units converted to Common Units on February 17, 2015(3) The Class A units converted to Common Units on January 1, 2015

Rose Rock Midstream Non-GAAP Financial Data Reconciliations

31


2015 2014(1) 2015 2015 2014(1)

Reconciliation of operating income to Adjusted gross margin:Operating income $ 28,903 $ 24,530 $ 27,260 $ 78,769 $ 60,940Add:

Operating expense 19,081 22,130 23,656 63,688 54,783General and administrative expense 4,339 4,444 6,329 16,288 14,382Depreciation and amortization expense 10,634 8,395 10,608 31,385 27,153

Less:Earnings from equity method investments 17,115 16,289 17,683 55,662 39,660Non-cash unrealized gain on derivatives, net 4,546 411 1,415 3,430 656

Adjusted gross margin $ 41,296 $ 42,799 $ 48,755 $ 131,038 $ 116,942Reconciliation of net income to Adjusted EBITDA:

Net income $ 16,421 $ 16,520 $ 17,068 $ 48,089 $ 47,834Add:

Interest expense 12,491 8,010 10,197 30,694 13,127Depreciation and amortization expense 10,634 8,395 10,608 31,385 27,153Cash distributions from equity method investments 23,602 17,029 25,560 75,227 45,081Inventory valuation adjustment — — 48 1,235Non-cash equity compensation 358 315 357 1,013 705Loss (gain) on disposal of long-lived assets, net 27 291 (22) 157 230

Less:Earnings from equity method investments 17,115 16,289 17,683 55,662 39,660White Cliffs cash distributions attributable to noncontrolling interests — 1,658 — — 11,008Impact from derivative instruments:

Total gain (loss) on derivatives, net 6,036 4,047 (2,202) 3,190 1,298Total realized loss (gain) (cash flow) on derivatives, net (1,490) (3,636) 3,617 240 (642)

Non-cash unrealized gain on derivatives, net 4,546 411 1,415 3,430 656Adjusted EBITDA $ 41,872 $ 32,202 $ 44,718 $ 128,708 $ 82,806

Reconciliation of net cash provided by operating activities to AdjustedEBITDA:

Net cash provided by operating activities $ 32,431 $ 21,152 $ 26,941 $ 52,302 $ 46,270Less:

Changes in operating assets and liabilities, net 8,710 (4,441) (386) (28,184) (29,999)White Cliffs cash distributions attributable to noncontrolling interests — 1,658 — — 11,008

Add:Interest expense, excluding amortization of debt issuance costs 11,664 7,527 9,515 28,658 12,124Distributions from equity method investments in excess of equity inearnings 6,487 740 7,876 19,564 5,421

Adjusted EBITDA $ 41,872 $ 32,202 $ 44,718 $ 128,708 $ 82,806


Rose Rock Midstream 2015 Adjusted EBITDA Guidance

32

(in millions, unaudited) 2015 Guidance

Mid-point

Net income $ 70.3

Add: Interest expense 43.0

Add: Depreciation and amortization 42.0

EBITDA $ 155.3

Non-Cash and Other Adjustments 24.7

Adjusted EBITDA $ 180.0

Less:

Cash interest expense 40.0

Maintenance capital expenditures 10.0

Distributable cash flow $ 130.0

Non-Cash and Other Adjustments

Earnings from equity method investments $ (77.0)

Distributions from equity method investments (1) 99.0

Inventory valuation adjustment 1.2

Non-cash equity compensation 1.5

Non-Cash and Other Adjustments $ 24.7

(1) Distributions from equity method investment includes the cash distributions from White Cliffs and Glass Mountainattributable to Rose Rock

Rose Rock Midstream Distributable Cash Flow

33


2015 2014(1) 2015 2015 2014(1)

Reconciliation of net income to distributable cash flow:Net income $ 16,421 $ 16,520 $ 17,068 $ 48,089 $ 47,834

Add:Interest expense 12,491 8,010 10,197 30,694 13,127Depreciation and amortization expense 10,634 8,395 10,608 31,385 27,153

EBITDA 39,546 32,925 37,873 110,168 88,114Add:

Loss (gain) on disposal of long-lived assets, net 27 291 (22) 157 230Cash distributions from equity method investments 23,602 17,029 25,560 75,227 45,081Inventory valuation adjustment — — 48 1,235 —Non-cash equity compensation 358 315 357 1,013 705

Less:Earnings from equity method investments 17,115 16,289 17,683 55,662 39,660White Cliffs cash distributions attributable to noncontrollinginterests — 1,658 — — 11,008Non-cash unrealized gain (loss) on derivatives, net 4,546 411 1,415 3,430 656

Adjusted EBITDA $ 41,872 $ 32,202 $ 44,718 $ 128,708 $ 82,806Less:

Cash interest expense 11,364 7,502 9,764 28,582 12,049Maintenance capital expenditures 2,892 1,850 4,855 8,674 4,236

Distributable cash flow $ 27,616 $ 22,850 $ 30,099 $ 91,452 $ 66,521

Distribution declared $ 30,221 $ 18,866 $ 29,483 $ 88,083 $ 49,487

Distribution coverage ratio 0.91 x 1.21 x 1.02 x 1.04 x 1.34 x


(in thousands, unaudited) Three Months EndedMarch 31, 2015

Crude SemStream SemCAMS SemLogistics SemMexico SemGasCorporateand other Consolidated

Net income (loss) $ 9,662 $ 8,908 $ 1,199 $ (1,926) $ 3,011 $ 4,891 $ (19,969) $ 5,776Add: Interest expense 10,646 (1,322) 3,112 465 — 2,851 (1,161) 14,591Add: Income tax expense (benefit) — — 551 (369) 990 — 3,570 4,742Add: Depreciation and amortization expense 10,143 — 3,066 2,040 1,053 7,138 294 23,734EBITDA 30,451 7,586 7,928 210 5,054 14,880 (17,266) 48,843Selected Non-Cash Items and Other Items Impacting Comparability 11,150 (2,574) 424 805 219 200 10,915 21,139Adjusted EBITDA $ 41,601 $ 5,012 $ 8,352 $ 1,015 $ 5,273 $ 15,080 $ (6,351) $ 69,982


Loss (gain) on disposal of long-lived assets, net $ 152 $ — $ — $ — $ (19) $ (1) $ 926 $ 1,058Foreign currency transaction (gain) loss — — (44) 651 131 — (1,257) (519)Remove NGL equity losses including gain on issuance of common units — 305 — — — — — 305Remove gain on sale of NGL units — (7,894) — — — — — (7,894)NGL cash distribution — 5,015 — — — — — 5,015M&A transaction related costs — — — — — — 10,000 10,000Unrealized loss on derivative activities 2,645 — — — — — — 2,645Depreciation and amortization included within equity earnings 6,376 — — — — — — 6,376Inventory valuation adjustment including equity method investees 1,187 — — — — — — 1,187Bankruptcy related expenses — — — — — — 189 189Non-cash equity compensation 790 — 468 154 107 201 1,057 2,777Selected Non-Cash Items and Other Items Impacting Comparability $ 11,150 $ (2,574) $ 424 $ 805 $ 219 $ 200 $ 10,915 $ 21,139

SemGroup Reconciliation of Net Income to Adjusted EBITDA

34

(in thousands, unaudited) Year EndedDecember 31, 2014

Crude SemStream SemCAMS SemLogistics SemMexico SemGas Corporateand other Consolidated

Net income (loss) $ 57,495 $ 70,632 $ 14,318 $ (10,072) $ 5,900 $ 6,792 $ (93,008) $ 52,057Add: Interest expense 31,072 (5,140) 13,558 1,528 166 8,570 (710) 49,044Add: Income tax expense (benefit) — — 3,135 (2,231) 4,053 — 41,556 46,513Add: Depreciation and amortization expense 40,035 — 14,295 10,005 6,031 26,353 1,678 98,397EBITDA 128,602 65,492 45,306 (770) 16,150 41,715 (50,484) 246,011Selected Non-Cash Items and Other Items Impacting Comparability 28,159 (42,165) 590 (1,083) 621 21,053 34,255 41,430Adjusted EBITDA $ 156,761 $ 23,327 $ 45,896 $ (1,853) $ 16,771 $ 62,768 $ (16,229) $ 287,441


Loss (gain) on disposal of long-lived assets, net $ 319 $ — $ (950) $ (2,490) $ (53) $ 20,092 $ 15,674 $ 32,592Loss (income) from discontinued operations, net of income taxes — — — (1) — — 2 1Foreign currency transaction (gain) loss — — 42 821 279 — (1,228) (86)Remove NGL equity earnings including gain on issuance of commonunits — (31,363) — — — — — (31,363)Remove gain on sale of NGL units (34,211) (34,211)NGL cash distribution — 23,404 — — — — — 23,404Employee severance expense 9 — 150 — — 41 20 220Unrealized gain on derivative activities (1,734) — — — — — — (1,734)Change in fair value of warrants — — — — — — 13,423 13,423Depreciation and amortization included within equity earnings 18,992 — — — — — — 18,992Inventory valuation adjustment including equity method investees 7,781 — — — — — — 7,781Recovery of receivables written off at emergence — — (664) — — — — (664)Bankruptcy related expenses — 1 — — — 150 1,159 1,310Charitable contributions — — — — — — 3,379 3,379Non-cash equity compensation 2,792 4 2,012 587 395 770 1,826 8,386Selected Non-Cash Items and Other Items Impacting Comparability $ 28,159 $ (42,165) $ 590 $ (1,083) $ 621 $ 21,053 $ 34,255 $ 41,430


35



Net income (loss) $ 57,228 $ 38,071 $ (3,136) $ (6,769) $ 5,377 $ 14,701 $ (39,660) $ 65,812Add: Interest expense 14,923 (4,810) 18,928 1,435 188 3,268 (8,790) 25,142Add: Income tax expense (benefit) — — 6,348 (5,699) 2,589 — (20,492) (17,254)Add: Depreciation and amortization expense 23,708 — 10,766 9,426 5,991 14,517 2,001 66,409EBITDA 95,859 33,261 32,906 (1,607) 14,145 32,486 (66,941) 140,109Selected Non-Cash Items and Other Items Impacting Comparability 10,764 (15,624) 1,180 111 (722) 1,221 51,979 48,909Adjusted EBITDA $ 106,623 $ 17,637 $ 34,086 $ (1,496) $ 13,423 $ 33,707 $ (14,962) $ 189,018


Loss (gain) on disposal of long-lived assets, net $ (56) $ 6 $ — $ — $ (854) $ 665 $ — $ (239)Income from discontinued operations, net of income taxes — — — — — — (59) (59)Foreign currency transaction (gain) loss — — (23) (391) (177) — (1,042) (1,633)Remove NGL equity earnings — (33,996) — — — — — (33,996)NGL cash distribution — 18,321 — — — — — 18,321Mid-America Midstream Gas Services acquisition cost — — — — — — 3,600 3,600Employee severance expense 5 — — — — — 33 38Unrealized gain on derivative activities (974) — — — — — — (974)Change in fair value of warrants — — — — — — 46,434 46,434Depreciation and amortization included within equity in earnings of White Cliffs 9,520 — — — — — — 9,520Bankruptcy related expenses — — — — — — 567 567Non-cash equity compensation 2,269 45 1,203 502 309 556 2,446 7,330Selected Non-Cash Items and Other Items Impacting Comparability $ 10,764 $ (15,624) $ 1,180 $ 111 $ (722) $ 1,221 $ 51,979 $ 48,909


36



Net income (loss) $ 64,554 $ 4,919 $ 4,097 $ (3,552) $ 1,467 $ (264) $ (39,324) $ 31,897Add: Interest expense (409) (3,449) 18,727 2,486 314 1,461 (10,228) 8,902Add: Income tax expense (benefit) — — 720 (7,736) 2,285 — 2,653 (2,078)Add: Depreciation and amortization expense 12,131 — 10,589 9,780 6,171 7,043 2,496 48,210EBITDA 76,276 1,470 34,133 978 10,237 8,240 (44,403) 86,931Selected Non-Cash Items and Other Items Impacting Comparability 9,532 6,952 50 514 121 629 30,236 48,034Adjusted EBITDA $ 85,808 $ 8,422 $ 34,183 $ 1,492 $ 10,358 $ 8,869 $ (14,167) $ 134,965


Loss (gain) on disposal of long-lived assets, net $ (3,501) $ 214 $ — $ — $ (290) $ 46 $ — $ (3,531)Loss (income) from discontinued operations, net of income taxes — (2,985) — 14 — — 32 (2,939)Foreign currency transaction (gain) loss — — 26 (370) 190 — 452 298Remove NGL equity earnings — 403 — — — — — 403NGL cash distribution — 9,218 — — — — — 9,218Employee severance expense — — — 159 — — 195 354Unrealized loss on derivative activities 1,196 — — — — — — 1,196Change in fair value of warrants — — — — — — 21,310 21,310Depreciation and amortization included within equity in earnings of White Cliffs 10,181 — — — — — — 10,181Defense costs — — — — — — 5,899 5,899Recovery of receivables written off at emergence — — (858) — — — — (858)Non-cash equity compensation 1,656 102 882 711 221 583 2,348 6,503Selected Non-Cash Items and Other Items Impacting Comparability $ 9,532 $ 6,952 $ 50 $ 514 $ 121 $ 629 $ 30,236 $ 48,034


37


Crude SemStream SemCAMS SemLogistics SemMexico SemGasCorporate and

other ConsolidatedNet income (loss) $ 39,241 $ 16,752 $ 2,868 $ (41,440) $ 2,430 $ 6,308 $ (23,347) $ 2,812Add: Interest expense 3,749 17,152 24,685 1,005 365 2,346 10,836 60,138Add: Income tax expense (benefit) — — 552 (3,331) 629 — (160) (2,310)Add: Depreciation and amortization expense 11,379 3,501 10,233 9,271 6,502 5,986 2,951 49,823EBITDA 54,369 37,405 38,338 (34,495) 9,926 14,640 (9,720) 110,463Selected Non-Cash Items and Other Items Impacting Comparability 8,293 (48,513) (2,296) 45,283 57 452 1,806 5,082Adjusted EBITDA $ 62,662 $ (11,108) $ 36,042 $ 10,788 $ 9,983 $ 15,092 $ (7,914) $ 115,545


Loss (gain) on disposal of long-lived assets, net $ 64 $ (45,821) $ (8) $ 44,663 $ (200) $ 4 $ 1,599 $ 301Loss (income) from discontinued operations, net of income taxes (1) — 9,644 — 30 — — (126) 9,548Foreign currency transaction (gain) loss — 39 (2,674) 88 18 — (921) (3,450)Employee severance expense — — 3,855 131 — — 388 4,374Unrealized gain on derivative activities (787) (13,247) — — — — (80) (14,114)Change in fair value of warrants — — — — — — (5,012) (5,012)Reversal of allowance on goods and services tax receivable — — (4,144) — — — — (4,144)Depreciation and amortization included within equity in earnings of White Cliffs 10,630 — — — — — — 10,630Defense costs — — — — — — 1,000 1,000Recovery of receivables written off at emergence (2,692) — — — — — — (2,692)Non-cash equity compensation 1,078 872 675 371 239 448 4,958 8,641Selected Non-Cash Items and Other Items Impacting Comparability $ 8,293 $ (48,513) $ (2,296) $ 45,283 $ 57 $ 452 $ 1,806 $ 5,082


38

(1) SemStream Arizona has been reported as a discontinued operation at December 31, 2012.Prior periods have been recast to conform with the presentation.

(in thousands, unaudited) Three Months Ended Year EndedMarch 31, December 31,

2015 2014(1) 2013 2012 2011Net income $ 14,600 $ 62,925 $ 37,515 $ 23,954 $ 23,235

Add:Interest expense 8,006 21,279 8,181 1,912 1,823Depreciation and amortization expense 10,143 40,035 23,708 12,131 11,379Distributions from equity method investment 26,065 66,768 16,999 — —Inventory valuation adjustment 1,187 5,667 — — —Non-cash equity compensation 298 943 806 308 —Loss (gain) on disposal of long-lived assets, net 152 319 (31) (1) 64Provision for (recovery of) uncollectible accounts receivable — — — — (916)

Less:Earnings from equity method investment 20,864 57,378 17,571 — —White Cliffs cash distributions attributable to noncontrollinginterests — 11,008 — — —Impact from derivative instruments:Total gain (loss) on derivatives, net (644) 17,351 (1,593) 149 (386)Total realized (gain) loss (cash outflow) on derivatives, net (1,887) (15,730) 2,567 (1,345) 1,173Non-cash unrealized gain (loss) on derivatives, net (2,531) 1,621 974 (1,196) 787Adjusted EBITDA $ 42,118 $ 127,929 $ 68,633 $ 39,500 $ 34,798

Rose Rock Reconciliation of Net Income to Adjusted EBITDA

39


Rose Rock Reconciliation of Net Cash Provided by Operating Activities toAdjusted EBITDA

(in thousands, unaudited) Year EndedDecember 31,

2014(1) 2013 2012 2011Net cash provided by operating activities $ 111,093 $ 72,528 $ 35,097 $ 51,085Less:Changes in operating assets and liabilities, net 1,296 11,265 (2,850) 18,082White Cliffs cash distributions attributable to noncontrolling interests 11,008 — — —Add:Interest expense, excluding amortization of debt issuance costs 19,750 7,370 1,553 1,795Distributions in excess of equity earnings of affiliates 9,390 — — —Adjusted EBITDA $ 127,929 $ 68,633 $ 39,500 $ 34,798

40
