Tallgrass Energy Partners announces acquisition, expanding water infrastructure footprint

Feb. 9, 2018
Purchase adds 10 salt water disposal wells and approximately 39 miles of produced water gathering infrastructure for a cash purchase price of approximately $95 million.

LEAWOOD, KS, FEB 9, 2018 -- Tallgrass Energy Partners, LP (NYSE: TEP), through its subsidiary BNN Water Solutions, LLC ("BNN"), recently announced the acquisition of water infrastructure assets that establishes Tallgrass's footprint in the Bakken, delivers new business for BNN and provides Tallgrass a platform from which to build additional midstream business in the Bakken.

BNN acquired Buckhorn SWD Solutions, LLC and Buckhorn Energy Services, LLC ("Buckhorn"), which collectively own 10 salt water disposal wells and approximately 39 miles of produced water gathering infrastructure for a cash purchase price of approximately $95 million. The system currently services approximately 133,000 dedicated acres for multiple Bakken producers, including XTO Energy, Inc. Tallgrass anticipates that BNN will spend an additional approximately $45 million in 2018 to further expand the system to accommodate increased dedicated water volumes resulting from expected new drilling and completions. Once the additional infrastructure is completed, Tallgrass expects the total investment will approximate a five times cash flow multiple.

With this acquisition, BNN now owns and operates over 230 miles of water supply and gathering pipelines in addition to other water supply, storage, recycle, and disposal assets; making them one of the largest independent operators of water infrastructure in the industry.

"The acquisition of this Bakken water infrastructure expands BNN's footprint into another premier oil and gas producing region of the country, while establishing and expanding important customer relationships for BNN and Tallgrass," said BNN Vice President and General Manager Jeff Nelson. "In addition, this acquisition provides Tallgrass with an opportunity to grow its midstream service offerings in the Bakken."

About Tallgrass Energy
Tallgrass Energy 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. To learn more, visit www.tallgrassenergy.com.

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