Tallgrass Energy Partners to Acquire Powder River Gathering System, Offering New Opportunities for Customers in the Region
Tallgrass Energy Partners, LP (NYSE:TEP) today announced that through
its subsidiary Tallgrass Midstream, LLC (“TMID”) it has entered into an
agreement to acquire DCP Midstream’s Douglas natural gas gathering
system in the Powder River Basin for approximately $128 million. The
Douglas gathering system encompasses approximately 1,500 miles of
gathering lines across four counties in Wyoming and is the primary
gathering system for TMID’s Douglas processing plant. The transaction is
expected to close on or before the end of the second quarter.
“This is a strategic acquisition that complements our existing assets in
the region,” said Tallgrass Chief Commercial Officer Matt Sheehy. “The
Douglas gathering system was originally designed to deliver gas to
TMID’s Douglas processing facility but was sold separately 15 years ago.
We view this recombination as strategically important for our processing
activities in the Powder River Basin.”
Tallgrass Energy Partners recently acquired a water disposal facility in
the Powder River Basin, through its BNN Water Solutions subsidiary.
“These two acquisitions are important components in our total basin
strategy in the Powder,” Sheehy added. “The gathering system, when
combined with our Casper and Douglas processing facilities, the residue
lines feeding Tallgrass Interstate Gas Transmission, access to our water
business services and assets and overall proximity to Pony Express,
allows Tallgrass to offer a cost-effective one-stop-midstream-shop for
producers in the Powder River Basin.”
The transaction has been approved by appropriate governing bodies of
both companies, but remains subject to satisfaction of specified closing
conditions, including expiration or termination of the applicable
waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of
1976.
Ron Happach Hired as General Manager of
Tallgrass Midstream
TEP also announced that Ron Happach has joined the company as General
Manager of Tallgrass Midstream to bring a renewed emphasis on its
gathering and processing activities. “Ron is an established industry
leader and will bring a focused approach to our business strategy in the
Powder River Basin,” said Tallgrass Chief Operating Officer Bill Moler.
“Ron and I have worked together for many years throughout our careers,
and I have a high degree of confidence in his ability to meaningfully
grow our TMID business line.”
Before joining Tallgrass, Happach was the Chief Operating Officer of
Millennium Pipeline. He has a distinguished career in the oil and gas
industry, having served in a variety of roles including operations and
business development for Inergy, LP and Kinder Morgan, Inc.
About Tallgrass Energy Partners, LP
Tallgrass Energy is a family of companies that includes publicly traded
partnerships Tallgrass Energy Partners, LP (NYSE: TEP) and Tallgrass
Energy GP, LP (NYSE: TEGP), and privately held Tallgrass Development,
LP. Operating across 10 states, Tallgrass is a growth-oriented midstream
energy operator with transportation, storage, terminal and processing
assets that serve some of the nation’s most prolific crude oil and
natural gas basins.
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 the satisfaction of the conditions to
closing the proposed transaction with DCP Midstream in the anticipated
timeframe or at all, the expiration or termination of the applicable
waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of
1976, and whether TEP will be able to be a “one-stop-midstream-shop” to
fulfill all midstream needs on a cost-effective basis for producers in
the Powder River Basin. Such statements are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the
control of TEP, which may cause actual results to differ materially from
those implied or expressed by the forward-looking statements, and other
important factors that could cause actual results to differ materially
from those projected, including those set forth in reports filed by TEP
with the Securities and Exchange Commission. Any forward-looking
statement applies only as of the date on which such statement is made
and TEP does 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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