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Tallgrass Energy Partners to Acquire Powder River Gathering System for USD 128m
Friday 19 May 2017

19 May 2017 - Kansas, US-based Tallgrass Energy Partners, LP (NYSE: TEP) has agreed to acquire the Wyoming, US-based natural gas gathering system of DCP Midstream's Douglas unit located in the Powder River Basin for approximately USD 128m, the company said.
This transaction is expected to close on or before the end of 2Q17.
The transaction has been approved by appropriate governing bodies of both companies, but remains subject to satisfaction of specified closing conditions, including expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Tallgrass said the acquisition of the Douglas gathering system, encompassing approximately 1,500 miles of pipelines across four Wyoming, US counties, would become the primary gathering system for Tallgrass Midstream's Douglas' (TMID) processing plant.
The company said the Douglas gathering system was originally designed to deliver gas to TMID's Douglas processing facility but was sold 15 years ago. The company said this recombination is important for processing activities in the Powder River Basin.
Tallgrass Energy Partners said the gathering system, when combined with its Casper and Douglas processing facilities, residue lines feeding Tallgrass Interstate Gas Transmission, access to water business services and assets and overall proximity to Pony Express, allows Tallgrass to offer a cost-effective one-stop-midstream-shop for producers in the Powder River Basin.
Tallgrass is a family of companies that includes publicly traded partnerships Tallgrass Energy Partners, LP (NYSE: TEP) and Tallgrass Energy GP, LP (NYSE: TEGP), and privately held Tallgrass Development, LP.
The company operates across ten states serving crude oil and natural gas basins with transportation, storage, terminal and processing assets.
Details
Date Published: 19/05/2017
Target: DCP Midstream/ Powder River Gathering System
Country: USA
Deal Size: 128m (USD)
Sector: Petroleum/Natural Gas/Coal
Type: Corporate acquisition
Financing: Cash
Status: Agreed
Vendor: DCP Midstream
Buyer: Tallgrass Energy Partners
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