The deal will be primarily funded by the combination of cash and stock in two installments, one when the deal closes and other before the end of 2018. The first payment of $1.5 billion will be made at the closure of the deal. This includes assumption of $785 million of debt of Houston Fuel Oil Terminal along with the issuance of $300–$400 million shares to Alinda. The shares will be issued at SemGroup's election at $32.30 per share. The company's revolving credit facility will finance the remaining of the first installment. The second installment will include $600 which would be paid in cash by the end of 2018. Houston Fuel Oil Terminal Houston Fuel Oil Terminal stores, blends and transports residual and crude oil via pipeline, ship, barge, rail and truck. With the capacity of 16.8 million-barrels, Houston-based terminal along the U.S. Gulf Coast has extensive pipeline connectivity. The terminal is currently on its expansion phase having a number of projects underway.