Our analysis is based on comparing SemGroup Corp. with the following peers – Plains All American Pipeline, L.P., Blueknight Energy Partners, L.P., TransMontaigne Partners L.P., Magellan Midstream Partners, L.P., Plains GP Holdings LP Class A, Holly Energy Partners, L.P., NGL Energy Partners LP, Phillips 66 Partners LP, Enbridge Energy Partners, L.P. Class A and DCP Midstream LP (PAA-US, BKEP-US, TLP-US, MMP-US, PAGP-US, HEP-US, NGL-US, PSXP-US, EEP-US and DCP-US).
SemGroup Corp.’s dividend yield is 5.00 percent and its dividend payout is 4500 percent. This compares to a peer average dividend yield of 6.90 percent and a payout level of 128.04 percent. This combination of a relatively lower dividend yield and a higher payout ratio suggest that the dividend payout might not be sustainable. In addition, the low dividend quality score of 25 out of a possible score of 100, points to unsustainability as well.
Dividend Quality Overview
- Over the last twelve months (prior to December 31, 2016), SEMG-US paid a medium quality dividend, which represents a yield of 5% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during 4 of these years — of these 2 were medium quality and 2 were low quality.
- The ending cash balance is less than the last full year dividend payment and cannot be relied on to cushion any significant reduction of cash flows in the future.
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Over the last twelve months (prior to December 31, 2016), SEMG-US paid a medium quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 2.13x), investing cash flow (coverage of -2.76x), issuance cash flow (coverage of 1.82x) and twelve-month prior cash (coverage of 0.63x), for a total dividend coverage of 1.80x.
SEMG-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -0.24x).
These coverage ratio factors imply that the firm’s net cash inflow from issuance was required (in addition to operating and investment cash) to pay the dividend, which suggests a medium dividend quality.
|Dividend Yield (%)||0||0.92||1.47||5.48||3.37||5|
|Dividend Payout (%)||0||53.1||151.47||230.43||4500||4500|
A complete list of metrics and analysis is available on the company page.
SemGroup Corp. engages in gathering, transporting, and trading of petroleum products. It operates through the following segments: Crude Transportation; Crude Facilities; Crude Supply and Logistics; SemGas; SemCAMS; SemLogistics; SemMexico; and SemStream. The Crude Transportation segment manages oil pipelines and truck transportation services. The Crude Facilities segment stores oil products and operates terminal businesses. The Crude Supply and Logistics segment markets and distributes crude oil products. The SemGas segment includes natural gas gathering and processing. The SemCAMS segment operates processing plants of natural gas. The SemLogistics segment manages storage facilities of petroleum products. The SemMexico segment manufactures and sells liquid asphalt cement and asphalt materials. The SemStream segment holds interest in NGL Energy Partners LP. The company was founded in February 2000 and is headquartered in Tulsa, OK.
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