Tallgrass Energy Partners LP has announced that it will buy an additional 31.3% stake in Tallgrass Pony Express Pipeline LLC for about US$743.6 million from Tallgrass Development LP.
Tallgrass Energy Partners will pay US$475 million in cash and US$6.52 million in common units to Tallgrass Development.
With the deal, Tallgrass Energy Partners' stake in the 760 mile long crude pipeline increases to 98% from 66.7%.
The Pony Express Pipeline, which runs from Guernsey, Wyoming, to Cushing, Oklahoma, can transport 320 000 bpd of oil.
The pipeline links major oil plays such as Bakken, Powder River Basin and Niobrara Shale.
Tallgrass is set to release 4Q15 financial results as well as 2016 financial guidance and also hold a conference call on Wednesday, 17 February 2016.
Edited from various sources by Elizabeth Corner
Read the article online at: https://www.worldpipelines.com/business-news/05012016/tallgrass-to-buy-additional-stake-in-pony-express-pipeline-llc/