After its second attempt at oil hedging strategy, the Tulsa-based energy trader SemGroup has filed for bankruptcy.
Facing a $2.6 billion-dollar debt, SemGroup sold short crude oil futures as a hedge against 500,000 barrels it recently purchased.
A sharp rise in oil prices caused the company to lose money the higher they rose, as SemGroup basically anticipated oil prices lower for the year.
The midstream energy partnership, founded in 2000, provided
transportation, processing, and
marketing services for crude oil and refined products in the United States and Canada.
SemGroup boasted the title of 14th-largest privately-held company, and went public just over a year ago.
Last week SemGroup’s stock dropped 50% and caused the company’s liquidity crisis.
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