Tallgrass reports Q3 2014 results

Tallgrass Energy Partners, LP, has reported financial and operating results for the third quarter of 2014. In addition, TEP's financial results for the three and nine months ended 30 September, 2013, have been recast to reflect the results of operations of Trailblazer Pipeline Company LLC and Tallgrass Pony Express Pipeline LLC, which TEP acquired effective 1 April, 2014, and 1 September, 2014, respectively.

Tallgrass President and Chief Executive Officer David G. Dehaemers, Jr. said, "TEP is proud to have increased its quarterly distribution per unit by another US$ 0.03 to US$ 0.41 for the third quarter of 2014. This represents a 38% increase from the third quarter of 2013. The distribution increases over the past year are the result of the accretive acquisitions of Trailblazer and a 33.3% interest in Pony Express and strong performance at Tallgrass Midstream and Tallgrass Interstate Gas Transmission. As we previously indicated, we expect to increase our quarterly distribution by at least US$ 0.07 per unit for the fourth quarter of 2014 related to the Pony Express acquisition."

Pony Express acquisition

As previously announced, Tallgrass acquired a 33.3% interest in Pony Express effective 1^st September, 2014, with a minimum quarterly preference payment of US$ 16.65 million through September 2015, of which we received a prorated payment of approximately US$ 5.4 million for the third quarter of 2014. 

The mainline, described in more detail below, was placed into commercial service in early October and is transporting barrels on its uncommitted local tariff. Tallgrass expect to activate its committed local tariff and one of its two committed joint tariffs on 1^st November, 2014, and expect to activate the other committed joint tariff when the associated upstream pipeline is placed into service.

Pony Express owns an approximately 690 mile crude oil pipeline commencing in Guernsey, Wyoming, and terminating in Cushing, Oklahoma, with delivery points at Ponca City Refinery and Deeprock in Cushing. Upon completion of ongoing construction, Pony Express will also own an approximate 66 mile lateral in Northeast Colorado that will commence in Weld County, Colorado and interconnect with the Pony Express mainline just east of Sterling, Colorado. The lateral in Northeast Colorado is expected to be in service sometime during the first half of 2015.

Adapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/31102014/tallgrass-reports-q3-2014-results/