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Tuesday, July 16, 2013

Rockies Express Pipeline LLC Announces Precedent Agreement

“Shale to Shining Shale” Strategy


OVERLAND PARK, Kan.--(BUSINESS WIRE)--The owners and operator of the Rockies Express Pipeline LLC (“REX”) announced today that REX has executed a binding precedent agreement with a large Utica Shale producer who desires to transport up to 200,000 Dth/d of processed Utica production through REX to markets in the Midcontinent. Pending satisfaction of certain conditions in the agreement, the processed gas will enter into REX through a newly constructed 14-mile residue header being installed by REX at the tailgate of MarkWest’s Seneca Processing Complex in Noble County, Ohio. The new facilities, which are expected to be in service in late 2013, will add significant natural gas supply to the east end of REX for transport to points west or east.

“Tallgrass, as the 50 percent owner and operator of REX, believes that we and our shipper have a common understanding of the future for transporting gas out of the Appalachian Basin,” said REX Chairman William R. “Bill” Moler. “REX is a high capacity long-haul transmission pipeline that spans from Colorado/Wyoming to Ohio and can act as the nation’s northern-most east-to-west and west-to-east corridor for natural gas distribution. We believe that making REX truly bi-directional is the next wave of takeaway capacity from the Utica Shale play.”

About Rockies Express Pipeline

Rockies Express Pipeline LLC is a Delaware limited liability company engaged in the ownership and operation of the Rockies Express Pipeline, a modern 1,698-mile natural gas transmission pipeline that extends from Opal, Wyoming and Meeker, Colorado to Clarington, Ohio and is one of the largest natural gas pipelines ever constructed in North America. The system consists of 36-inch and 42-inch diameter pipe with a long-haul design capacity of up to 1.8 billion cubic feet of natural gas per day (Bcf/d), eight receipt-only points, six bi-directional points and 35 delivery interconnections that provide access to markets not directly served by the pipeline. The pipeline also has 14 mainline compressor stations and four booster stations with approximately 427,000 total horsepower. In addition, REX has 625,000 Mcf/d of capacity on the Overthrust Pipeline available to it pursuant to a long-term lease.

Rockies Express Pipeline LLC is a joint venture of: a subsidiary of Tallgrass Development, LP. (50 percent share); Sempra U.S. Gas & Power (25 percent share), a subsidiary of Sempra Energy; and a subsidiary of Phillips 66 (25 percent share). A wholly-owned subsidiary of Tallgrass Development, LP operates the pipeline.

Cautionary Note Concerning Forward-Looking Statements

Some of the information contained in this press release constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company's management believes its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results will not differ materially from expectations.

Factors that could cause actual results to differ materially from expectations include, but are not limited to capital markets conditions, interest rates and inflation. The Company therefore cautions you against relying on these forward-looking statements. All forward-looking statements attributable to the Company or persons acting on the Company's behalf are expressly qualified in their entirety by the foregoing cautionary statements. New risks and uncertainties may arise from time to time, and it is impossible for us to predict these events or how they may affect the Company. All such statements speak only as of the date made, and the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Contacts

Rockies Express Pipeline LLC
Nate Lien, 913-928-6012
investor.relations@tallgrassenergy.com
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