Kansas Ag Connection - Tallgrass Energy Increases Quarterly Distributions

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Tallgrass Energy Increases Quarterly Distributions
Kansas Ag Connection - 04/20/2017

Tallgrass Energy Partners, LP, Leawood, Kan., and Tallgrass Energy GP, LP announced their quarterly distributions for the first quarter of 2017. The distributions will be paid on Monday, May 15, 2017, to unitholders and shareholders of record as of the close of business on April 28, 2017.

The board of directors of TEP's general partner declared a quarterly cash distribution of $0.835 per common unit for the first quarter of 2017, or $3.34 on an annualized basis. This represents a sequential increase of 2.5 percent from the fourth quarter 2016 distribution of $0.815 per common unit and an increase of 18.4 percent from the first quarter 2016 distribution of $0.705 per common unit. It is TEP's 15th consecutive increase since its May 2013 IPO.

In addition, as previously announced in conjunction with the recent acquisition of an approximate 25 percent interest in Rockies Express Pipeline LLC, management intends to recommend to the board of directors of TEP's general partner that TEP increase its quarterly distributions for the second and third quarters of 2017 by an aggregate of at least $0.10 per unit or $0.40 per unit on an annualized basis. These distributions would be paid in mid-August and mid-November of 2017, respectively.

The board of directors of TEGP's general partner declared a quarterly cash distribution of $0.2875 per Class A share for the first quarter of 2017, or $1.15 on an annualized basis. This represents a 3.6 percent sequential increase from the fourth quarter 2016 distribution of $0.2775 per Class A share and an increase of 36.9 percent from the first quarter 2016 distribution of $0.21 per Class A share. It is TEGP's seventh consecutive increase since its May 2015 IPO.

Tallgrass Energy is a family of companies that includes publicly traded partnerships Tallgrass Energy Partners, LP and Tallgrass Energy GP, LP, 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.

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