Tallgrass Energy Increases 2016 Financial Guidance and Extends Long-Term Guidance Through 2018
Tallgrass Energy Partners, LP (NYSE: TEP) ("TEP") and Tallgrass Energy
GP, LP (NYSE: TEGP) ("TEGP"), collectively referred to as Tallgrass
Energy, today announced updated guidance for fiscal year 2016 as a
result of TEP’s recent acquisition of a 25 percent membership interest
in Rockies Express Pipeline LLC (“REX”).
Conference Call and Presentation Materials
Please join Tallgrass Energy for a conference call and webcast to
discuss its updated 2016 guidance and REX acquisition at 10:00 a.m.
Central Time on Tuesday, May 17, 2016. Interested parties may listen via
a link posted to the Investor Relations section of our website and the
replay will be available on our website for at least seven days
following the live call. Presentation materials that will facilitate the
discussion will be posted to the Investor Relations section of our
website on Tuesday, May 17, 2016.
TEP Financial Outlook and Guidance through 2018
TEP expects distributable cash flow of $345 - $375 million and
distribution coverage of 1.15 - 1.20x, for the year ended December 31,
2016. TEP also expects to grow its annualized distribution for 2016 by
approximately 27 – 30 percent. Additionally, TEP expects a minimum
average compounded annualized distribution growth rate of at least 20
percent for 2017 and 2018.
TEP’s management intends to recommend that its board of directors
increase its quarterly distributions for the second and third quarters
of 2016 by a total of approximately $0.09 per unit over its distribution
of $0.705 per unit for the first quarter of 2016.
TEGP Distribution Outlook and Guidance
For 2016, TEGP continues to expect its cash distributions to Class A
shareholders to grow at approximately two times the distribution growth
rate of TEP’s cash distributions. For example, if TEP’s cash
distribution per unit for the fourth quarter of 2016 grows by
approximately 25 – 30 percent as compared to TEP’s cash distribution per
unit for the fourth quarter of 2015, TEGP would expect approximately 50
– 60 percent growth in cash distributions to Class A shareholders when
comparing the same quarters.
About Tallgrass Energy Partners, LP
Tallgrass Energy Partners, LP (NYSE: TEP) is a publicly traded,
growth-oriented limited partnership formed to own, operate, acquire and
develop midstream energy assets in North America. TEP currently provides
crude oil transportation to customers in Wyoming, Colorado, and the
surrounding regions through Pony Express, which owns the Pony Express
System, a crude oil pipeline commencing in Guernsey, Wyoming and
terminating in Cushing, Oklahoma that includes a lateral in northeast
Colorado that commences in Weld County, Colorado, and interconnects with
the pipeline just east of Sterling, Colorado. It provides natural gas
transportation and storage services for customers in the Rocky Mountain,
Midwest and Appalachian regions of the United States through the Rockies
Express Pipeline, a FERC-regulated natural gas pipeline system extending
from Opal, Wyoming and Meeker, Colorado to Clarington, Ohio, the
Tallgrass Interstate Gas Transmission system, a FERC-regulated natural
gas transportation and storage system located in Colorado, Kansas,
Missouri, Nebraska and Wyoming, and the Trailblazer Pipeline system, a
FERC-regulated natural gas pipeline system extending from the Colorado
and Wyoming border to Beatrice, Nebraska. TEP provides services for
customers in Wyoming at the Casper and Douglas natural gas processing
facilities and the West Frenchie Draw natural gas treating facility, and
NGL transportation services in Northeast Colorado. TEP also performs
water business services in Colorado and Texas through BNN Water
Solutions, LLC. TEP’s operations are strategically located in and
provide services to certain key United States hydrocarbon basins,
including the Denver-Julesburg, Powder River, Wind River, Permian and
Hugoton-Anadarko Basins and the Niobrara, Mississippi Lime, Eagle Ford
and Bakken shale formations.
About Tallgrass Energy GP, LP
Tallgrass Energy GP, LP (NYSE: TEGP) is a limited partnership that has
elected to be treated as a corporation for U.S. federal income tax
purposes. TEGP owns a controlling membership interest in Tallgrass
Equity, LLC through its role as the sole managing member. Tallgrass
Equity, LLC owns, both directly and through its ownership of the general
partner of TEP, all of TEP's incentive distribution rights, 100 percent
of the general partner interest in TEP and 20,000,000 TEP Common Units.
To learn more, please visit our website at www.tallgrassenergy.com.
Cautionary Note Concerning Forward-Looking
Statements
Disclosures in this press release contain “forward-looking statements.”
All statements, other than statements of historical facts, included in
this press release that address activities, events or developments that
management expects, believes or anticipates will or may occur in the
future are forward-looking statements. Without limiting the generality
of the foregoing, forward-looking statements contained in this press
release specifically include TEP's and TEGP's 2016 financial and
distribution outlook and guidance, TEP's and TEGP's expected
distribution growth rates in future periods and TEP’s intent to
recommend an increase of its quarterly distributions in the second and
third quarters in 2016. Forward looking statements may also include the
expectations of plans, strategies, objectives and growth and anticipated
financial and operational performance of TEP, TEGP and their
subsidiaries, including: the ability to pursue expansions and other
opportunities for incremental volumes; natural gas and crude oil
production growth in TEP's operating areas; expected future benefits of
acquisitions or expansion projects; timing of anticipated spending on
planned expenses and maintenance capital projects; and distribution rate
and growth, including variability of quarterly distribution coverage.
These statements are based on certain assumptions made by TEP and TEGP
based on management’s experience and perception of historical trends,
current conditions, anticipated future developments and other factors
believed to be appropriate. Such statements are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the
control of TEP and TEGP, which may cause actual results to differ
materially from those implied or expressed by the forward-looking
statements. These include risks relating to TEP and TEGP’s financial
performance and results, availability of sufficient cash flow to pay
distributions and execute their business plans, the demand for natural
gas storage, processing and transportation services and for crude oil
transportation services, operating hazards, the effects of government
regulation, tax position and other risks incidental to transporting,
storing and processing natural gas or transporting crude oil and other
important factors that could cause actual results to differ materially
from those projected, including those set forth in reports filed by TEP
and TEGP with the Securities and Exchange Commission. Any
forward-looking statement applies only as of the date on which such
statement is made and TEP and TEGP do not intend to correct or update
any forward-looking statement, whether as a result of new information,
future events or otherwise, except as required by law.
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