REX and Tallgrass receive cash settlement payment from Ultra
Published by Stephanie Roker,
Editor
World Pipelines,
Rockies Express Pipeline LLC (REX) and Tallgrass Energy Partners, LP, REX’s operator, announced that REX received the cash payment of US$150 million from Ultra Resources, Inc. (Ultra) in connection with the settlement of REX’s US$303 million breach of contract claim, and that REX has distributed the proceeds to its partners.
As previously disclosed, Ultra has agreed to enter into a new seven year firm transportation agreement with REX commencing 1 December 2019, for service from west to east of 200 000 dth/d at a rate of approximately US$0.37, or about US$26.8 million annually.
REX recently conducted several open seasons for incremental east to west capacity in Zone 3 totalling 180 000 dth/d from Clarington (Ohio) to delivery points as far west as Moultrie (Illinois). As a result of the open seasons, REX has entered into firm transportation contracts with a number of parties for varying volumes and terms that began as early as June 2017. REX currently expects 2017 revenue from those contracts to be at least US$13 million.
Tallgrass Energy plans to report second quarter 2017 financial results on Wednesday, 2 August 2017, after market close and hold a conference call at 3:30 p.m. Central Time that same day. Tallgrass Energy expects to provide additional details on these and other developments during the conference call on 2 August.
Read the article online at: https://www.worldpipelines.com/business-news/13072017/rex-and-tallgrass-receive-cash-settlement-payment-from-ultra/
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