With approximately 6.6 million barrels of liquid asphalt cement storage capacity, SemGroup Energy Partners provides customers the ability to effectively manage their liquid asphalt cement inventories and significant flexibility in their processing and marketing activities. Our 46 terminals are located in 23 states and are well positioned to provide liquid asphalt cement terminalling and storage services in the market areas they serve.

Liquid asphalt cement purchased by our customers from their suppliers is transported via numerous transportation methods including rail tank car, barge, ship and truck to our facilities. Our logistics assets, such as docks and rail spurs and piping and pumping equipment facilitate the unloading of liquid asphalt cement into our terminalling and storage facilities. The liquid asphalt cement can then be directly sold by our customers to end users or used by our customers as a raw material for the processing of asphalt emulsions, asphalt cutbacks, polymer modified asphalt cement and related finished asphalt products.

SemGroup Energy Partners does not take title to, or take marketing responsibility for, the liquid asphalt cement that we terminal and store. We generate revenues by charging a fee for services provided as liquid asphalt cement is terminalled and stored in our facilities.

SemMaterials, L.P. is our primary customer and, pursuant to a Terminalling Agreement, pays SemGroup Energy Partners a fee based on the number of barrels that we terminal or store for SemMaterials. The company also has committed to utilize our services at certain minimum levels.