This news is classified in: Traditional Energy
Jan 3, 2017
Tallgrass Energy Partners, LP announced today that it acquired Tallgrass Terminals, LLC and Tallgrass NatGas Operator, LLC from Tallgrass Development for cash consideration of $140 million. The acquisition represents TEP’s fifth dropdown acquisition from Tallgrass Development and was funded at closing through borrowings on TEP’s revolving credit facility.
“TEP continues to benefit from its relationship with Tallgrass Development, and we expect the dropdown to be immediately accretive to unitholders based on an initial transaction multiple of approximately 8.0x estimated 2017 cashflow on the fully operational acquired assets,” said President and CEO David G. Dehaemers Jr. “While we expect to provide financial guidance for calendar year 2017 in February, this transaction is supportive of our previously issued distribution growth guidance that includes 2017. However, as we continue to grow Tallgrass Terminals, we expect it to be a more significant contributor to the long-term Tallgrass growth story.”
Tallgrass Terminals owns the following fully operational assets:
Focus on Application, Solution, Process, and Region
Download free sample pagesTallgrass Terminals owns the following projects currently under development:
Tallgrass NatGas Operator is the operator of Rockies Express Pipeline LLC (“REX”) and receives from REX an annual fee equal to 1 percent of REX’s EBITDA as compensation for operating the pipeline. For more information regarding REX’s EBITDA, see “Non-GAAP Financial Measure” below.