Tallgrass Energy Partners (TEP) Wells Fargo Energy Symposium December 10, 2013 Confidential Presentation
Tallgrass Energy System Overview Tallgrass System serves numerous natural gas, liquids and oil-producing basins Tallgrass was formed in 2012 to pursue midstream opportunities Acquired assets from Kinder Morgan in November 2012 as part…
Tallgrass Ownership Structure The Tallgrass family ownership structure aligns the interests of management and its private equity partners with those of the public unitholders Management and its equity partners indirectly own 100% of TEPs…
Tallgrass Accomplishments TMID Expansion Public S-1 Filing 35mmcf/d Douglas TIGT Expansion Filed first public S-1 expansion completed Contracted for 2mm with the SEC annual EBITDA on systems West End De-risking TMID Converted…
Tallgrass Energy Partners (TEP) Overview TEP Fundamentals TEP Characteristics Stable Cash Flow Links producing basins to end-user markets in the Midwest and Attractive Footprint Midcontinent Possesses on-system customers Strong…
Stable Cash Flow Profile TEP revenues primarily driven by long-term contracts Gas Transportation & Storage segment 70% of Adjusted EBITDA(1) Demand driven contracts Weighted average remaining contract life of 4 years for both…
Financial Flexibility Management has established a balance sheet and liquidity Key Debt Funding Metrics profile to facilitate a growth strategy ( in millions) 3Q 2013 Pro Forma (1) (2) 500 million credit facility provides substantial…
Incentivized and Experienced Management TEP management is incentivized to grow distributions Executive Management Team Management owns 25% of TEPs general partner Selected Prior Experience General partner owns IDRs and 2.0% general…
TEP Financial Update Anticipate 4th quarter strength due to in-service of TMID expansions that is expected to bring full year coverage in line with guidance of 1.2x or thereabouts(3) 2013 Financial Results and Guidance(4) Three…
Tallgrass Interstate Gas Transmission (TIGT)
TIGT FERC-regulated demand-driven pipeline serving attractive markets Overview(1) Business Breakdown FERC-regulated natural gas transportation & storage Attractive on-system customer profile system Much of off-system revenue is…
TIGT Business Update We continue to focus on our customers and our markets; renew existing volumes and pursue additional opportunities West End Expansion Contract Renewals New FT Revenue Steady Transport Volumes TIGT signed new firm…
Tallgrass Midstream (TMID)
TMID Douglas Plant Segment Footprint Turbo expander refrigeration plant TIGT Pipeline Recently conducted substantial expansion project to upgrade and Niobrara Shale (1) enhance system Outlet volumes flow into TIGT Expansion project…
TMID Business Update TMID expansion project is complete Completed Expansion Project Contract Profile Increased processing capacity to 190 MMcf/d and additional Renegotiated a substantial keep-whole contract to fee-based capacity is…
TMID Expansion Opportunities Powder River Basin Horizontal Permits(1) TMID Opportunities Currently evaluating adding additional processing capacity to meet growing production demand throughout the Powder River Basin Demand increase…
Tallgrass Development Assets
Trailblazer FERC-regulated interstate pipeline 439 miles of pipe Capacity of approximately 850,000 dth/d File rate case in July 2013 to establish new rates for firm transportation beginning in 2014 Received FERC staffs top sheets in…
Pony Express A 432 mi. natural gas pipeline conversion to crude oil pipeline from Guernsey Station in Platte Co., WY to the NGPL Interconnect in Lincoln Co., KS Abandonment order and notice to proceed on construction of…
Rockies Express Prominent pipeline providing natural gas transportation service to North American energy sector Vision: Northernmost header system Attractive access to both supply basins and large end markets Currently moving Rocky…
Q&A
Appendix
TEP EBITDA Reconciliation Q3 2013 EBITDA Reconciliation Three Months Ended Nine Months Ended September 30, September 30, (in thousands, except coverage and per unit data) 2013 2013 Net income 7,006 350 Add: Interest expense…
TEP EBITDA Reconciliation Contd Q3 2013 EBITDA Reconciliation (a) Amounts presented for the nine months ended September 30, 2013 are on a pro forma basis, which assumes that our initial public offering and related formation…
Segment EBITDA Reconciliation Q3 EBITDA Reconciliations Three Months Ended September 30, 2013 Gas Transportation Corporate (in thousands) and Storage Processing and Other Total Operating Income (Loss) 6,988 1,874 (1,488) 7,374…
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