Dallas, Texas 07/22/2014 (FINANCIALSTRENDS) – Tallgrass Energy Partners LP (NYSE:TEP) the natural gas transporter has in its press release noted that, the stake of 33.3% will cost $600 million. Tall grass interest in Pony Express is a pipeline project the former is working on. The project is across two phases which include connecting Guernsey, Wyoming to Cushing and Oklahoma and the other which connects from Northeast Colardo with the mainline.
The main pipeline is expected to be completed by latter half of 2014. The second phase of the project is to be completed by 2015 at Colorado Lateral.
According to CEO David G.Dehaemers Jr. of Tallgrass, “TEP is excited to have the opportunity to acquire an interest in Pony Express and to further diversify our operations and footprint. If the acquisition is completed we expect it to be accretive to TEP in 2014.”
Tallgrass Energy Partners LP (NYSE:TEP) is a limited partnership which offers limited growth opportunities for North American region in acquiring, operating, developing midstream energy assets. It also operates a proprietary Trailblazer Pipeline system, providing processing services for Wyoming region. It operates in this region with the Casper and Douglas natural gas processing as well as the West Frechie Draw natural gas treating systems.
The company is currently aiming at capturing natural gas volumes which are developed in the region called as Denver- Julesburg Basin as well as regions called as Niobrara as well as Mississippi Lime Shale sections.
Tallgrass Energy Partners LP (NYSE:TEP) has announced that it will give sections of the cash flow under a ‘preference rights’ with the ‘first dollar preference’ for cash distributions as well as Pony Express by September 30, 2015.
TEP hopes to gain funds for the deal by offering a public offering 7 Million common units as well as 30-day options which the underwriters will purchase for additional 1.05 million units.