Tallgrass Energy Partners (TEP) Citi MLP / Midstream Conference August 20 21, 2014 Confidential Presentation
Tallgrass Energy System Overview Tallgrass was formed in 2012 to pursue midstream opportunities Acquired assets from Kinder Morgan in November 2012 as part of Kinder Morgans FTC-mandated divestiture process Tallgrass Development…
Tallgrass Ownership Structure The Tallgrass ownership structure aligns the interests of management, Kelso, and EMG with those of the public unitholders Tallgrass Development continues to own and operate a substantial portfolio of…
Tallgrass Energy Accomplishments Revolver Upsize Water Acquisition TIGT Expansion Increased revolving Acquired controlling Contracted for credit facility to interest in water 2mm annual 850mm business providing TMID Expansion EBITDA…
TEP Financial Performance TEP Stock Price Performance Since IPO(1) Annualized LP Distribution 41.30 21.50 Total Unit Holder Return Since IPO(2) (3) TEP AMZX NYATR 5/13/2013 100.00 100.00 100.00 6/28/2013 97.67 99.26…
Sell-Side Analyst Summary TEP has a strong reputation among the sell side analysts All analysts with reports dated after TEPs July equity offering rate TEP with a buy 3 analysts (Barclays, Citi and Wells Fargo consider TEP as one of…
TEP Segment Overview
Gas Transportation and Storage Segment Overview Long Term Customer Base Consists of 2 FERC-regulated natural gas transportation The top 15 Gas Transportation and Storage customers & storage systems have a weighted average tenure of 18…
Processing Segment Overview Fee Based Cash Flow Processing and treating A majority of the processing and treating contracts are 190 mmcf/d of processing capacity in the Powder strictly fee based, providing a stable cash flow profile…
Tallgrass Development Assets
Potential Pony Express Transaction (Mainline and NECL) The proposed deal structure mitigates TEPs risk associated with two of the largest concerns that arise with any new project: cash-flow ramp up and cost overruns Proposed Deal…
Pony Express Guernsey to Cushing Mainline 430 mile natural gas pipeline conversion to crude oil pipeline from Guernsey, WY to Lincoln County, KS 260 mile extension to Cushing, OK Line fill is in progress On track for late Q3 2014…
(1) Tallgrass Terminals Tallgrass Energy is utilizing the Pony Express system as an entry point into the terminals business Sterling Terminal Located at the intersection of the Guernsey to Sterling and NECL line segments of Pony…
Rockies Express Currently moving both Rocky Mountain and Appalachian Basin gas and pursuing multiple growth projects Growth Projects 600 mmcf/d lateral from Seneca processing complex to REX Seneca Lateral Currently flowing 250 mmcf/d…
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