Tallgrass Energy Partners, LP has acquired an additional 24.99% membership interest in Rockies Express Pipeline LLC (REX) from Tallgrass Development, LP for cash consideration of US$400 million, effective 31 March 2017. The acquisition increases TEP’s ownership interest in REX to approximately 50%.
“We are pleased to acquire an additional interest in REX at a very attractive price and we expect the transaction to be immediately accretive to unitholders,” said Tallgrass President and CEO, David G. Dehaemers, Jr. “We intend to recommend to the board of directors of our general partner that TEP increase its quarterly distributions for 2Q17 and 3Q17 by an aggregate of at least US$0.10 per unit or US$0.40 per unit on an annualised basis.”
Ultra Resources, Inc. recently announced that the US Bankruptcy Court confirmed its Chapter 11 reorganisation plan. The plan contemplates payment of REX’s US$150 million claim within three months after Ultra emerges from bankruptcy, and no later than 30 October 2017. Ultra has previously indicated it plans to emerge from bankruptcy during the month of April. TEP will receive its approximate 50% share of an expected approximately US$150 million distribution from REX resulting from Ultra's settlement payment.
Read the article online at: https://www.worldpipelines.com/business-news/04042017/tallgrass-energy-extends-its-rockies-express-pipeline-interest/