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Citi Midstream / Energy Infrastructure Conference
August 14-15, 2019
NYSE: TGE │ www.tallgrassenergy.com 2
Cautionary Statements
This presentation contains forward-looking statements. These forward-looking statements are identified as any statement that does not
relate strictly to historical or current facts. In particular, statements, express or implied, concerning future actions, conditions or events,
future operating results or the ability to generate revenues, income or cash flow or to make distributions or pay dividends are forward-
looking statements. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions.
Future actions, conditions or events and future results of operations of Tallgrass Energy, LP or Rockies Express Pipeline LLC and their
respective affiliates may differ materially from those expressed in these forward-looking statements. Many of the factors that will
determine these results are beyond Tallgrass Energy, LP’s and Rockies Express Pipeline LLC’s ability to control or predict and are
necessarily based upon various assumptions involving judgements with respect to the future. Forward-looking statements contained in
this presentation specifically include, without limitation, TGE 2019 Guidance, statements regarding the expected strategy and benefits
resulting from the investment in Tallgrass Energy, LP by affiliates of Blackstone Infrastructure Partners and its co-investors, the feasibility,
cost, execution and in-service timing of capital and other growth and joint venture projects at Rockies Express Pipeline LLC and
Tallgrass Energy, LP, and their respective affiliates, including, without limitation, the Cheyenne Connector pipeline, the Cheyenne Hub
enhancements, the expansion of capacity on the Pony Express System, the Seahorse Pipeline Project, the Plaquemines Liquids
Terminal Project, and the identified growth opportunities of Gathering and Processing and BNN Water Solutions, the recontracting of
contracts at Rockies Express Pipeline LLC, and the 2020 projected EBITDA at Rockies Express Pipeline LLC, including its currently
contracted 2020 EBITDA, its 2020 DCF and its 2020 Leverage. These statements also include, among others, Tallgrass Energy, LP’s
and Rockies Express Pipeline LLC’s respective ability to complete and integrate acquisitions, implement their respective business plans
and complete internal growth projects; changes in general economic conditions; competitive conditions; actions taken by third-party
operators, processors and transporters; demand for natural gas transportation, storage and processing services and crude oil
transportation services; price and availability of debt and equity financing; availability and price of natural gas and crude oil compared to
alternative fuels; energy efficiency and technology trends; operating hazards and other risks incidental to the business; natural disasters,
weather-related delays and casualty losses; interest rates; labor relations; customer defaults; changes in tax status; effects of existing
and future laws and governmental regulations; effects of future litigation; and other uncertainties. There is no assurance that any of the
actions, events or results of the forward-looking statements will occur, or if any of them do, what impact they will have on our results of
operations or financial condition. Because of these uncertainties, you are cautioned not to put undue reliance on any forward-looking
statement.
This presentation does not constitute an offer to sell any securities of Tallgrass Energy, LP or its respective affiliates or a solicitation of an
offer to buy any securities of Tallgrass Energy, LP or its respective affiliates.
NYSE: TGE │ www.tallgrassenergy.com 3
Non-GAAP Measures
Adjusted EBITDA (“EBITDA”), Cash Available for Dividends (“CAD”), and Distributable Cash Flow (“DCF”) are non-GAAP supplemental financial measures that management
and external users of our consolidated financial statements and financial statements of our subsidiaries and unconsolidated investments, such as industry analysts, investors,
lenders and rating agencies, may use to assess:
• Our operating performance as compared to other publicly traded midstream infrastructure companies, without regard to historical cost basis or, in the case of EBITDA,
financing methods;
• The ability of our assets to generate sufficient cash flow to make dividends to our shareholders;
• Our ability to incur and service debt and fund capital expenditures; and
• The viability of acquisitions and other capital expenditure projects and the returns on investment of various expansion and growth opportunities.
We believe that the presentation of EBITDA, CAD, and DCF provides useful information to investors in assessing our financial condition and results of operations. EBITDA,
CAD, and DCF should not be considered alternatives to net income, operating income, net cash provided by operating activities or any other measure of financial
performance or liquidity presented in accordance with GAAP, nor should EBITDA, CAD, and DCF be considered alternatives to available cash or other definitions in our
partnership agreement. EBITDA, CAD, and DCF have important limitations as analytical tools because they exclude some but not all items that affect net income and net
cash provided by operating activities. Additionally, because EBITDA, CAD, and DCF may be defined differently by other companies in our industry, our definition of EBITDA,
CAD, and DCF may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
We generally define EBITDA as net income excluding the impact of interest, income taxes, depreciation and amortization, non-cash income or loss related to derivative
instruments, non-cash long-term compensation expense, impairment losses, gains or losses on asset or business disposals or acquisitions, gains or losses on the
repurchase, redemption or early retirement of debt, and earnings from unconsolidated investments, but including the impact of distributions from unconsolidated investments
and deficiency payments received from or utilized by our customers. In addition, EBITDA at Rockies Express excludes the impact of other non-cash gains or losses and
includes the impact of the change in contract asset, which represents the difference between the revenue recognized and the actual cash collected from the customer. We
also use CAD and DCF, which we generally define as EBITDA, less cash interest costs, maintenance capital expenditures, current income tax, and certain cash reserves
permitted by our governing documents. EBITDA and CAD are both calculated and presented at the Tallgrass Equity, LLC (“Tallgrass Equity”) level, before consideration of
noncontrolling interest associated with the Exchange Right Holders or calculating distributions from Tallgrass Equity to us, on one hand, and to the Exchange Right Holders,
on the other. We believe calculating these measures at Tallgrass Equity provides investors the most complete and comparable picture of our overall financial and operational
results and provides a consistent metric for period over period comparisons that is not impacted by any future exercises by the Exchange Right Holders of the right to
exchange TGE Class B Shares and Tallgrass Equity Units for an equal number of TGE Class A Shares (the "Exchange Right"), which does not have a dilutive effect on TGE's
net income per share. For a reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, please see EBITDA Reconciliations in
the appendix.
We are unable to project net cash provided by operating activities or net income attributable to TGE to provide the related reconciliation of projected EBITDA and CAD to the
most comparable financial measures calculated in accordance with GAAP, because the impact of changes in operating assets and liabilities and the volume and timing of
deficiency payments received and utilized from our customers are out of our control and cannot be reasonably predicted. We provide a range for the forecasts of EBITDA and
CAD to allow for the variability in the timing of cash receipts and disbursements, customer utilization of our assets, and maintenance capital spending and the impact on the
related reconciling items, many of which interplay with each other. The timing of maintenance capital expenditures is volatile as it depends on weather, regulatory approvals,
contractor availability, system performance and various other items. Therefore, the reconciliation of projected EBITDA to projected net cash provided by operating activities
and net income attributable to TGE and the reconciliation of projected CAD to projected net cash provided by operating activities is not available without unreasonable effort.
NYSE: TGE │ www.tallgrassenergy.com
$500
$872
$1,035
2018 2019
(1) Includes 75% REX distributions, 2019 reflects TGE 2019 guidance and 1H 2019 actual results.
4
Tallgrass Energy Overview
Crude Oil
Transportation
G&P and
Terminalling
35%
9%
Natural Gas
Transportation56%
• 3 FERC-regulated natural gas transportation & storage systems totaling >6,800 miles of pipe
• Rockies Express Pipeline (“REX”): ~4.4 Bcf/d long haul capacity
• Tallgrass Interstate Gas Transmission (“TIGT”) and Trailblazer Pipeline Company (“Trailblazer”):
~2.0 Bcf/d of transportation and ~16 Bcf of storage design capacity
• Pony Express: 834-mile FERC-regulated crude oil pipeline system with ~400 kbbls/d of
capacity
• Powder River Gateway (“PRG”): 2 FERC-regulated crude oil pipelines with ~190 kbbls/d of
capacity and 2 associated terminals
• Gathering and Processing: ~1,500 miles of natural gas gathering and ~190 mmcf/d of
processing capacity
• Water services: Fresh water transportation, recycling, and/or salt water gathering and disposal
systems across 6 active basins
• Terminalling: 6 terminals serving the Pony Express Crude Oil System
Represents % of Q2 2019 Consolidated EBITDA by segment
Consolidated Footprint
EBITDA(1)
Guidance
Unique platform with large scale, diversified asset base with long-term contracted cash flows
$965
1H 2019 Actual
NYSE: TGE │ www.tallgrassenergy.com 5
Key Investment Highlights
Tallgrass Energy is a core midstream infrastructure company with a solid platform
providing a unique combination of both stability and growth
Simple organizational structure, taxed as a C-corp
Stable cash flows, backed by long-term, fee-based, firm commitments
1
2
History of investment in high return midstream infrastructure projects3
Conservative financial profile4
1 public company with no IDR burden
1099 instead of K-1
96% of Tallgrass Energy’s 2018 EBITDA was fee based
90% of Tallgrass Energy’s 2018 EBITDA was from firm fee commitments
~$3.6bn invested in core midstream assets from 2013 - 2018 at an average multiple of ~5.6x
(1) As of 6/30/2019. Calculated in accordance with the definitions in Tallgrass Energy’s revolving credit facility.
Debt / EBITDA of 3.6x(1) or proportionally consolidated (REX) financial leverage of ~4.7x
Q2 2019 dividend coverage ratio of 1.35x
NYSE: TGE │ www.tallgrassenergy.com 6
Organizational Structure
Tallgrass’ platform combined with world class infrastructure investors’ experience and access to capital to
drive ongoing stability and growth
Highly reputable and experienced investor Blackstone, as a firm,
has invested in over $40 billion of infrastructure-related projects
globally in the last 15 years
The principals of Blackstone Infrastructure Partners have extensive
experience investing in energy infrastructure assets
Strategic partnership with co-investors GIC and Enagas who
combined have global investment portfolios worth well over $100
billion across over 40 countries worldwide
Operating Subsidiaries
Tallgrass Equity, LLC
Tallgrass Energy
Partners, LP
Organizational Structure Strengths of the Blackstone Platform
Tallgrass Energy, LP
(NYSE: TGE)
TGE Public
and
Management
BIP / GIC / Enagas
~56% economic interest 100% GP Control
~44% economic interest(1)
(1)
(1) As of 6/30/2019.
Blackstone Investment Thesis
Blackstone views Tallgrass as a platform for additional long-term
investment in critical U.S. energy infrastructure
Essential high-capacity, long-haul pipelines connecting prolific
supply basins to key markets
Highly contracted assets backed by take-or-pay commitments
World-class team with outstanding track record to manage
Tallgrass
Robust backlog of high value growth projects
NYSE: TGE │ www.tallgrassenergy.com 7
Tallgrass Energy Key Accomplishments
Drop Down
AcquisitionOtherProject
3rd Party
AcquisitionFinancing
2013 2014 2015 2016 2017 2018 2019
Strong track record of organic project execution, third party M&A and capital markets access
Contract REX’s
Seneca Lateral
20% interest in
Cushing Terminal
Acquisition
Pony Northeast
Colorado Lateral Open
Season
Contract Trailblazer’s
Redtail Lateral
TMID Casper
Expansion
TMID Douglas
Expansion
TIGT West End
Expansion
TMID Keep Whole
Contract Conversion
File REX PDO For
Zone 3 East-to-West
Transportation
TEP IPO
REX Refinances Notes
BNN Water
Business Acquisition
REX Signs E2W PAs
REX Settles with 3
MFN Shippers
REX Signs Capacity
Enhancement PAs
TMID POP
Contract Conversion
Pony placed into
service
Settle Trailblazer Rate
Case
Sterling Terminal
Constructed
33.3% Pony Acquisition
Trailblazer Acquisition
~$330mm TEP follow-
on Equity Offering
Commence ATM
Equity Program
Seneca Lateral
Achieves
Full Capacity
REX Zone 3 E2W
Project placed into
service
REX Settles with final
MFN Shipper
Pony Expansion
Project placed into
service
Whiting Water
Business Acquisition
TMID Redtail NGL
Pipeline
placed into service
33.3% Pony
Acquisition
TEGP IPO
~$570mm TEP follow-
on Equity Offering
REX Repays $450mm
2015 Notes
25.0% REX
Acquisition
from Sempra
REX modifies
Encana contract
Buckingham Terminal
Constructed
REX Capacity
Enhancement Project
Fully Contracted
Settle TIGT Rate Case
31.3% Pony
Acquisition
TEP increases
Revolver to $1.75bn
$400mm TEP Senior
Notes Offering
REX reaches
settlement
with Ultra
REX Capacity
Enhancement placed
into service
Successful Open
Seasons for Cheyenne
Connector &
Cheyenne Hub
PRB Gas Gathering
System Acquisition
PRB & DJ Water
Asset Acquisitions
North Sterling Water
Pipeline placed into
service
PRB Oil Gathering
System Acquisition
Successful Platteville
Extension Open
Seasons
Announced new Pony
Refinery & Supply
Connections
Acquired additional
49% interest in
Deeprock
Development
24.99% REX
Acquisition
Terminals and NatGas
Operator Acquisition
$350mm & $750mm
TEP Senior Notes
Offerings
PXP modifies
CLR contract
Acquired 51% interest
in Pawnee Terminal
Acquired 38% interest
in Deeprock North
Cushing Terminal
Buckhorn Bakken
Water Acquisition
TGE/TEP Merger
NGL Bakken
Water Acquisition
25.01% REX Acquisition
2% Pony Acquisition
REX Repays $550mm
2018 Notes
REX Upgraded to
Investment Grade
Credit by S&P
TEP Revolver upsize
and repricing
TEP and REX Issued
Investment Grade
Credit Ratings by Fitch
$500mm TEP Senior
Notes Offering
Closed Powder River
Gateway JV, including
the Iron Horse and
Powder River Express
Pipelines
BIP Closed Acquisition
of controlling interest
in Tallgrass for $3.2bn
CES Marcellus / Utica
Water Acquisition
$550mm REX Senior
Notes Offering
NYSE: TGE │ www.tallgrassenergy.com
Financial Update and 2019 Guidance
TGE Financial Update
TGE 2019 Guidance
Adjusted EBITDA
CAD
$965 – 1,035 million
$760 – 835 million
Coverage Ratio >1.25x
DPS Growth ~6.0% – 8.0%
Q2 2019 1H 2019
Adjusted EBITDA ~$254 million ~$500 million
CAD ~$205 million ~$405 million
Coverage Ratio 1.35x 1.35x
Leverage Ratio(1) ~3.6x ~3.6x
8
(1) As of 6/30/2019. Calculated in accordance with the definitions in Tallgrass Energy’s revolving credit facility.
NYSE: TGE │ www.tallgrassenergy.com 9
Consistent Infrastructure Investment
$446
$845
$353 $256
$197
$409
$31
$76
$444
$249
$266 $446
$876
$429
$700
$446
$675
$3,572
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$0
$250
$500
$750
$1,000
2013 2014 2015 2016 2017 2018
Tallgrass Energy EBITDA(1)
Tallgrass Energy Invested Capital
Growth Capex 3rd Party Acquisitions
All $ in millions
(1) Adjusted EBITDA amounts include Deficiency Payments.
(2) Excludes $150mm Ultra settlement payment to REX.
$231$292
$580
$709
$797
$872
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
2013 2014 2015 2016 2017 2018(2)
Cumulative Investment
Capital Investment Summary
Invested Capital $3,572
(÷) Growth EBITDA 641
Multiple on Invested Capital 5.6x
Tallgrass has made significant investments over the last 6 years to build a platform of core midstream
infrastructure, and has a full slate of future projects to continue its growth trajectory
NYSE: TGE │ www.tallgrassenergy.com
Asset Summary
NYSE: TGE │ www.tallgrassenergy.com
Summary of Segments
Natural Gas Transportation Segment
• Consists of 3 FERC-regulated natural gas transportation & storage
systems (REX, TIGT and Trailblazer)
▪ >6,800 miles of pipelines
▪ ~6.6 Bcf/d of transportation design capacity
• Access to multiple high-growth basins in the Rockies and
Appalachia, and multiple large demand centers across the
northern US
• REX Pipeline
▪ Placed in service in November 2009
▪ ~1,712 miles of 42” and 36” pipeline
▪ ~1.8 Bcf/d of West-to-East long-haul capacity
▪ ~2.6 Bcf/d of Zone 3 East-to-West capacity
▪ Contracted capacity supports stable cash flow
▪ Access to substantially all major natural gas supply basins in the
Rocky Mountain region, Ohio and Pennsylvania corridors
▪ Favorable proximity to numerous major end-use markets with
significant demand load
1 Crude Oil Transportation Segment2
Gathering, Processing and Terminalling Segment3
• Pony: 834-mile FERC-regulated crude oil pipeline system from
Guernsey, WY / NE Colorado to Cushing, OK
▪ Total transportation capacity of ~400 kbbls/d
▪ Take or pay contracts for a total of ~310 kbbls/d
• PRG: 2 FERC-regulated crude oil pipelines with ~190 kbbls/d of
capacity and 2 associated terminals
• Processing and treating
▪ ~1,500 miles of natural gas gathering pipeline through the core
of the Powder River Basin
▪ ~190 mmcf/d of processing capacity in the PRB and Wind River
Basin in Wyoming
• Water business services
▪ Fresh water transportation and salt water gathering and disposal
systems in the DJ Basin
▪ Water disposal and gathering in the Bakken
▪ Water disposal infrastructure in the Marcellus / Utica, PRB and
Permian
▪ Effluent management operations in the Eagle Ford Shale
and Permian
• Terminals
▪ 6 terminals serving the Pony Express System
Sizable asset footprint which serves some of the largest, most economic domestic basins
11
NYSE: TGE │ www.tallgrassenergy.com
Natural Gas Transportation
(1) Cheyenne Connector expected in-service is Q1 2020.
Current Footprint
Asset Overview
Cheyenne Connector and Cheyenne Hub projects received
Environmental Assessments in December 2018. Expected in-
service for both projects is Q1 2020.
TIGT reached an agreement in principle on a pre-filing rate
case settlement in May 2019.
Recent Updates
Consists of 3 FERC-regulated natural gas transportation &
storage systems (REX, TIGT, and Trailblazer)
▪ >6,800 miles of pipelines
▪ ~6.6 Bcf/d of transportation design capacity
Access to multiple high-growth basins in the Rockies and
Appalachia, and multiple large demand centers across the
northern US
(1)
12
NYSE: TGE │ www.tallgrassenergy.com
REX Pipeline Overview
• Developed REX into the nation’s northernmost natural gas header system
• Attractive access to both supply basins and large end user markets with significant demand load
• Currently moving both Rocky Mountain and Appalachian production
“Shale to Shining Shale”
Highlights
• Long-term West-end Contracts
▪ >700 mmcf/d West-to-East contracted post-2019
▪ Recontracting conversations with current and potential new west-end
shippers underway
• Cheyenne Hub
▪ Contracted 600 mmcf/d for firm hub service
▪ Discussing expansion opportunities with multiple shippers
▪ Provides DJ basin gas access to REX
• East-end Incremental Contracts
▪ Incremental 105 mmcf/d contracted for 3-5 year terms
▪ Brings total contracted capacity on East-end to ~2.7 Bcf/d
• >95% of the 2019 recontracting cash flow risk has been mitigated,
based on FY2013 revenue
• 98% of 2018 revenue was take or pay
• Weighted Average Contract Life(1)
▪ East-to-West Contracts: ~14 years
▪ West-to-East Contracts: ~3 years
• Repaid $550mm of debt in July 2018 through partner
capital contributions
• 4.4 Bcf/d nameplate capacity, but have flowed up to 4.9 Bcf/d
Provides natural gas transportation service for North American energy markets
Wamsutter
Kanda
Meeker
Opal
Cheyenne
Lebanon
Clarington
Zone 1 Zone 2 Zone 3
ROCKIES EXPRESS PIPELINE
SENECA LATERAL
LEASE OF OVERTHRUST CAPACITY
REX COMPRESSOR STATION
>2.6 Bcf/d
13
Note: Overthrust Pipeline is owned by Dominion and consists of ~255 miles of pipeline.
(1) As of 12/31/2018.
NYSE: TGE │ www.tallgrassenergy.com
100% TGE (75%)
REX Currently Contracted EBITDA $500
(–) Interest Expense (122)
(–) Maintenance Capital (15)
REX Currently Contracted DCF $363 $272
Case 1 Case 2
Currently Contracted DCF $363 $363
(+) Recontracting Cash Flow 100 150
Total REX DCF (100%) $463 $513
TGE (75%) $347 $385
REX EBITDA $600 $650
REX Leverage 3.4x 3.1x
Securing Visible REX Cash Flow
REX is currently expected to have ~$500mm of contracted EBITDA in 2020 with
additional capacity available for renewal(1)
East End
▪ ~2.7 Bcf/d of East End volume contracted long-term(2)
▪ Evaluating additional expansion opportunities
West End
▪ >0.7 Bcf/d of West End volume contracted long-term(2)
▪ Discussing post-2019 contracting with multiple parties across multiple basins
REX 2020 Projected EBITDA REX West End Recontracting
Potential incremental revenue from West End
recontracting:(3)
Volume
(MMcf/d)
Encana and Ultra Contracts 706
(+) Assumed Recontracting: 1,094
Total 1,800
$/Mcf
100%
Incremental
REX CF
$0.250 $100
0.300 120
Average 0.375 150
Recontracting 0.400 160
Rate 0.500 200
0.600 240
0.700 280
0.800 319
14
(1)
All $ in millions
(1) Amount estimated based on currently expected Contracted Revenue for 2020 less anticipated cash
operating expenses for such annual period (forecasted to be in line with the Company's historical costs).
(2) As of 12/31/2018.
(3) For illustrative purposes, assumes current interest expense.
NYSE: TGE │ www.tallgrassenergy.com
Crude Oil Transportation
Pony System Overview
• 834-mile FERC regulated crude oil pipeline system from Guernsey,
WY / NE Colorado to Cushing, OK
• Currently expanding system capacity to ~420 kbbls/d by late
summer 2019
• Take or pay contracts for a total of ~310 kbbls/d
Updates and Growth Opportunities
• 2018 throughput averaged ~336 kbbls/d and 1H 2019 throughput
averaged ~342 kbbls/d
• July 2019 throughput averaged ~355 kbbls/d, with August
nominations of ~380 kbbls/d
• Demand interconnects
▪ Holly Frontier El Dorado refinery
▪ CHS McPherson refinery
• Recent supply interconnects
▪ Natoma – Access to Kansas production
▪ Platteville and Hereford Extensions – Access to additional DJ
Basin production
– Expected in-service for the Hereford Extension is August
Current Footprint
15
Powder River Gateway Overview
• Includes Powder River Express and Iron Horse pipelines and 2
associated terminals in Guernsey, WY
• ~190 kbbls/d of total capacity across the systems
NYSE: TGE │ www.tallgrassenergy.com
Seahorse Pipeline Project
Tallgrass Energy is developing a new batch-capable, crude oil pipeline from Cushing, Oklahoma to
the Gulf Coast
Project Design
~700 miles; up to 30” pipeline
Initial capacity of up to 400 kbbls/d
Destinations
St. James, Louisiana
▪ Interconnectivity to more than 2.5 million barrels
per day of refining capacity
Plaquemines Liquids Terminal (see next page for
details)
Potential direct refinery connections
Asset Summary
Project Highlights
Currently conducting binding open season
Gives producers access to premium St. James and
international markets
Provides international refinery markets with access to
field production from five separate basins
Provides Pony shippers with access to WTI, LLS and
Brent-based markets
16
NYSE: TGE │ www.tallgrassenergy.com
Plaquemines Liquids Terminal Project
Tallgrass Energy is developing the Gulf Coast Plaquemines Liquids Terminal (“PLT”)
Project Design
Storage capacity of up to 20 million bbls
Ability to load Suezmax (up to one million barrels) and
VLCC (up to two million barrels) tankers
Asset Summary
Project Highlights
Project is developed specifically for large scale export of
light shale production
Gives producers access to premium international
markets
Provides international refinery markets with access to
field production from five separate basins
Provides Pony and Seahorse shippers with access to
WTI, LLS and Brent-based markets
Strategic location provides significant logistical
efficiencies over competing Gulf Coast ports in Texas
and Louisiana
17
NYSE: TGE │ www.tallgrassenergy.com
Gathering & Processing Overview
Tallgrass PRB Footprint
Current Assets
• ~1,500 miles of natural gas gathering pipeline through the
core of the PRB
• ~190 mmcf/d of processing capacity in the PRB and Wind
River Basin in Wyoming
Identified Growth Opportunities
• Additional processing capacity in the PRB is permitted
• Expansion of Douglas gas gathering system
• On-going discussions with multiple producers to
underwrite expansion projects
Recent Updates
• Recently signed 15-year agreement with a significant
producer to gather and process future volumes
Gathering and Processing
(1)
18
NYSE: TGE │ www.tallgrassenergy.com
BNN Water Solutions Overview
Current Assets
• Freshwater transportation and saltwater gathering and
disposal system in the DJ Basin
• Water disposal and gathering in the Bakken
• Water disposal infrastructure in the Marcellus / Utica
• Water disposal infrastructure in the PRB
• Water disposal infrastructure in the Permian Basin
• Effluent management operations in the Eagle Ford Shale
and Permian Basin
Identified Growth Opportunities
• Clarkelen (PRB) expansion complete
• Additional expansion under construction in PRB
• Additional expansion opportunities in the Permian
• Continued freshwater expansion in DJ
• Additional Bakken acquisitions and/or system expansions
• Acquisitions to enter new basins
Water Business Services
Bakken Assets
NE DJ Basin AssetsSW DJ Basin Assets
19
NYSE: TGE │ www.tallgrassenergy.com
Terminals Overview
Tallgrass currently owns and/or operates 8 crude oil terminals positioned along the Pony Express system
GrasslandsBuckingham Natoma Cushing
SterlingPawnee
• Offload point for Pony Express
• Maintains neat batches of crude
• Facilitates delivery into almost every
other terminal in Cushing
• ~4 million bbls of storage
• Located at the point of intersection between Pony
Express’s Guernsey and Northeast Colorado Lines
• Serves as operational storage for Pony Express
• ~1.3 million bbls of storage
• Serves as injection point for NECL with ~0.3 million
bbls of storage
• ~0.3 million bbl terminal at Platteville
to serve Platteville Extension
• ~0.4 million bbl terminal serving Powder River
Express Pipeline
• ~0.5 million bbl terminal serving Iron Horse Pipeline
• Guernsey Terminals are part of PRG joint venture
and TGE’s crude oil transportation segment
• 4 truck unloading skids
▪ Capable of receiving ~42,000
bbls/d
• Expanding to add ~0.3 million bbls of
storage to serve Platteville Extension
• Serves as receipt point for Pony
Express’s new Kansas supply sources
Guernsey
20
NYSE: TGE │ www.tallgrassenergy.com
Tallgrass Joint Ventures
Existing Joint Venture Overview
21
Tallgrass’s ownership in non-wholly owned investments currently consists of the following:
Natural Gas Transportation
75% of Rockies Express Pipeline LLC
Each of Western Gas Partners and DCP Midstream have a one-time option to acquire a minority interest in
Cheyenne Connector prior to in-service
Crude Oil Transportation
51% of Powder River Gateway, which owns Iron Horse Pipeline, Powder River Express Pipeline, and 2 crude oil
terminal facilities in Guernsey, WY
Gathering, Processing and Terminalling
Water Solutions
▪ ~92% of Central Environmental Services, Inc.
▪ ~75% of BNN West Texas
▪ 63% of BNN Colorado Water
Terminals
▪ ~60% of a crude oil terminal facility in Cushing, OK
▪ 51% of a crude oil terminal facility in Pawnee, CO
▪ 100% preferred and 80% common interest in PLT
NYSE: TGE │ www.tallgrassenergy.com
Tallgrass Energy 2019 EBITDA and CAD Reconciliation
22
Summary Financial Information Three Months Ended Six Months Ended
(in millions) June 30, 2019 June 30, 2019
Net income attributable to TGE $ 71.6 $ 122.2
Add:
Interest expense, net(1) 40.6 80.3
Depreciation and amortization expense(1) 32.6 63.3
Distributions from unconsolidated investments 125.5 240.6
Deficiency payments, net(1) 4.4 16.6
Non-cash compensation expense 3.5 20.6
Income tax expense 22.0 39.0
Net income attributable to Exchange Right Holders 53.4 103.9
Less:
Equity in earnings of unconsolidated investments (99.0) (187.5)
Non-cash (gain) loss related to derivative instruments (0.2) 1.0
Adjusted EBITDA $ 254.3 $ 500.0
Less:
Cash interest cost (39.1) (77.2)
Maintenance capital expenditures, net (1) (10.4) (17.4)
Current income tax expense(1) (0.0) (0.0)
Cash Available for Dividends $ 204.8 $ 405.4
Less:
Dividends to Class A (TGE) (96.8) (191.7)
Dividends to Class B (Exchange Right Holders) (55.2) (109.3)
Amounts in excess of dividends $ 52.9 $ 104.4
Dividend coverage 1.35x 1.35x
(1) Net of noncontrolling interest associated with less than wholly owned subsidiaries of Tallgrass Equity.
NYSE: TGE │ www.tallgrassenergy.com
Tallgrass Energy 2018 EBITDA and CAD Reconciliation
23
Summary Financial Information Year Ended
(in millions, except coverage) December 31, 2018(1)
Net income $ 455.9
Net income attributable to noncontrolling interests (235.2)
Net income attributable to TGE 220.8
Add:
Interest expense, net 133.3
Depreciation and amortization expense(2) 109.7
Distributions from unconsolidated investments 387.1
Deficiency payments, net(2) 21.8
Non-cash compensation expense 10.7
Loss on debt retirement 2.2
Distributions received by Tallgrass Development (3) 11.5
Income tax expense 67.4
Net income attributable to Exchange Right Holders 229.0
Less:
Equity in earnings of unconsolidated investments (306.8)
Gain on disposal of assets(2) (10.7)
Non-cash gain related to derivative instruments (2) (4.3)
Adjusted EBITDA $ 871.9
Less:
Cash interest cost (128.0)
Maintenance capital expenditures, net (2) (21.0)
Cash Available for Dividends $ 723.0
Less:
Dividends to Class A (TGE) (266.4)
Dividends to Class B (Exchange Right Holders) (251.7)
Distribution to TEP public unitholders (46.4)
Amounts in excess of dividends $ 158.5
Dividend coverage 1.28x
(1) Indicated amounts presented for the year ended Dec. 31, 2018, are on a pro forma basis assuming
that the merger transaction with TEP had closed on Jan. 1, 2018.(2) Net of noncontrolling interest associated with less than wholly owned subsidiaries of Tallgrass Equity.(3) Represents distributions received by Tallgrass Development from its (i) 25.01 percent membership
interest in REX from Jan. 1, 2018 to Feb. 6, 2018 and its (ii) 2 percent membership interest in Pony Express
from Jan. 1, 2018 to Jan. 31, 2018
NYSE: TGE │ www.tallgrassenergy.com
Tallgrass Energy EBITDA Reconciliation
24
Summary Financial Information
2017 2016 2015 2014 2013
Tallgrass Energy Partners, LP ("TEP") (1)
Net income attributable to partners 434.0 270.5 172.9 77.1 15.1
Add:
Interest expense, net of noncontrolling interest 83.5 40.7 15.5 7.6 11.0
Depreciation and amortization expense, net of noncontrolling interest 92.5 88.1 77.1 45.7 37.9
Distributions from unconsolidated investments 306.6 78.6 4.6 2.0 -
Non-cash compensation expense 8.7 5.8 5.1 5.1 1.8
(Gain) loss from disposal of assets, net of noncontrolling interest (0.7) 1.8 4.8 - 0.4
Non-cash loss (gain) related to derivative instruments, net of
noncontrolling interest 0.2 1.5 - (0.2) -
Deficiency payments, net of noncontrolling interest 27.2 33.5 16.5 5.4 -
Loss on extinguishment of debt - - 0.2 - 17.5
Less:
Equity in earnings of unconsolidated investments (237.1) (54.5) (2.8) (1.6) -
Gain on remeasurement of unconsolidated investment (9.7) - - (9.4) -
Non-cash loss allocated to noncontrolling interest - - (9.4) (10.2) -
TEP Adjusted EBITDA 705.2 466.0 284.7 121.6 83.7
Tallgrass Development, LP ("TDEV") (2)
Net income 169.1 192.7 178.1 89.8 158.5
Add:
Interest expense, net - - 7.8 38.8 33.3
Depreciation and amortization expense 3.9 3.5 2.6 1.9 0.2
Distributions from unconsolidated investments 222.9 272.8 337.7 223.7 168.3
Non-cash loss (gain) related to derivative instruments 1.9 (1.3) - - -
Loss on extinguishment of debt - - 18.9 - 0.1
Gain on deconsolidation of TEP - - - - (96.6)
Less:
Equity in earnings of unconsolidated investments (173.4) (194.2) (210.3) (146.2) (105.4)
TDEV Adjusted EBITDA 224.4 273.4 334.9 208.1 158.6
Less:
Distributions to TEP & TDEV from REX' Ultra Resources settlement (112.9) - - - -
Distributions to TDEV from TEP (19.8) (30.8) (39.2) (37.5) (11.4)
Tallgrass Energy Adjusted EBITDA (3)796.9 708.7 580.4 292.2 230.9
(1) The financial results for all periods presented in the TEP table have been recast to include the applicable results of operations of Trailblazer Pipeline Company LLC, the initial 33.3
percent membership interest in Tallgrass Pony Express Pipeline, LLC ("Pony Express"), Tallgrass Terminals, LLC, and Tallgrass NatGas Operator, LLC. The acquisitions of an
additional 33.3 percent and 31.3 percent membership interest in Pony Express effective Mar. 1, 2015 and Jan. 1, 2016, respectively, are presented prospectively from the dates
of acquisition, and as a result, financial information for periods prior to Mar. 1, 2015 and Jan. 1, 2016, have not been recast to reflect the additional 33.3 percent and 31.3 percent
membership interests.
(2) The financial results for the periods presented in the TDEV table include the applicable results of operations of (i) a 50 percent membership interest in Rockies Express Pipeline, LLC
("Rockies Express") from Jan. 1, 2013 to Mar. 31, 2017 and a 25.01 membership interest in Rockies Express from Apr. 1, 2017 to Dec. 31, 2017 and (ii) a 66.6 percent membership
interest in Pony Express from Jan. 1, 2013 to Feb. 28, 2015, a 33.3 percent membership interest in Pony Express from Mar. 1, 2015 to Dec. 31, 2015, and a 2 percent membership
interest from Jan. 1, 2016 to Dec. 31, 2017.
(3) Represents EBITDA across the Tallgrass Energy Family of Companies.
Year Ended December 31,
(in millions)
NYSE: TGE │ www.tallgrassenergy.com
Tallgrass Energy Q2 2019 Segment EBITDA Reconciliation
25
Summary Financial Information(1) Three Months Ended
June 30, 2019
Natural Gas Transportation (in millions)
Operating income 17.0$
Add:
Depreciation and amortization expense 5.0
Distributions from unconsolidated investment (2) 121.7
Other income, net 0.6
Segment Adjusted EBITDA 144.3$
Crude Oil Transportation
Operating income 69.0$
Add:
Depreciation and amortization expense 13.7
Distributions from unconsolidated investment (3) 2.1
Deficiency payments, net 5.1
Segment Adjusted EBITDA 90.0$
Gathering, Processing & Terminalling
Operating income 12.0$
Add:
Depreciation and amortization expense(4) 12.8
Distributions from unconsolidated investment (5) 1.7
Less:
Adjusted EBITDA attributable to noncontrolling interests (1.2)
Non-cash gain related to derivative instruments (0.2)
Deficiency payments, net(4) (1.1)
Other expense, net (0.0)
Segment Adjusted EBITDA 23.9$
(1) Segment reporting does not include corporate general and administrative costs
or intersegment eliminations.(2) Includes 75% of REX.(3) Includes 51% of PRG.(4) Net of noncontrolling interest associated with less than wholly owned subsidiaries
of Tallgrass Equity.(5) Includes 51% of Pawnee Terminal.