Tallgrass Energy Partners, LP (“TEP”) today announced that Continental
Resources, Inc. (“Continental”) (NYSE: CLR) exercised its contractual
right to extend its Throughput and Deficiency Agreements (“TDAs”) to
ship crude oil with Belle Fourche Pipeline Company (“BFPL”) and with
TEP’s subsidiary, Tallgrass Pony Express Pipeline, LLC (“Pony Express”),
through Oct. 31, 2024. The TDAs were previously scheduled to expire on
Oct. 31, 2019.
“This is a unique, mutually beneficial opportunity in the current
environment to extend Pony Express’s relationship with its largest
customer, secure highly desired Bakken crude oil volumes well past our
existing contract maturities, and help provide cash flow certainty for
Pony Express,” said David G. Dehaemers Jr., President and CEO of
Tallgrass Energy. “Pony Express is capable of transporting approximately
400,000 bbl/d, and has just over 300,000 bbl/d currently contracted.
This extension fills a portion of the pipeline’s available capacity from
the Bakken and for a term of five years beyond the initial contract
term, solidifying Pony Express’s long-term position in the crude oil
transportation market.”
Starting Jan. 1, 2018, new uncommitted rates on the joint tariff of
BFPL, Pony Express and Bridger Pipeline, LLC will be established,
resulting in certain committed rates on the joint tariff being adjusted
on the same date. These joint tariff committed rates will initially be
$3.75 per barrel for Williston basin origin points and $2.86 per barrel
for Guernsey, Wyo. origin points on Pony Express.
“We are pleased to extend our long-standing transportation relationship
with Pony Express and Belle Fourche,” said Harold Hamm, Chairman and CEO
of Continental Resources. “It provides a premier takeaway solution for
our Bakken production when considering operational reliability, access
to significant refining markets and, of course, access to storage and
pipeline connectivity at Cushing. In addition, the extension will
facilitate further improvements in the economics of our operations in
the Bakken, the nation’s premier onshore oil play.”
"Belle Fourche is pleased to extend our long-standing relationship with
one of the premier producers in the Williston Basin," said Hank True,
President of BFPL. "With this extension, we will continue to build out
much needed infrastructure that will provide stability in transportation
and markets for all involved."
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. Operating across 10 states, Tallgrass is a growth-oriented midstream
energy operator with transportation, storage, terminal, water, gathering
and processing assets that serve some of the nation’s most prolific
crude oil and natural gas basins.
To learn more, please visit our website at www.tallgrassenergy.com.
Cautionary Note Concerning Forward-Looking
Statements
Disclosures in this press release contain forward-looking statements.
All statements, other than statements of historical facts included in
this press release that address activities, events or developments that
management expects, believes or anticipates will or may occur in the
future are forward-looking statements. Without limiting the generality
of the foregoing, forward-looking statements contained in this press
release specifically include the cash flow certainty for Pony Express in
connection with the contract extension. Such statements are subject to a
number of assumptions, risks and uncertainties, many of which are beyond
the control of TEP and its affiliates, which may cause actual results to
differ materially from those implied or expressed by the forward-looking
statements, and other important factors that could cause actual results
to differ materially from those projected. Any forward-looking statement
applies only as of the date on which such statement is made and TEP and
its affiliates do not intend to correct or update any forward-looking
statement, whether as a result of new information, future events or
otherwise, except as required by law.
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