Investment Biker
Long only, long/short equity

Tallgrass Energy Partners: A Dropdown Driven Story

In this essay, I will be discussing Tallgrass Energy Partners (NYSE:TEP), a growth-oriented Delaware based MLP.

The Story So Far

This midstream partnership was formed by Tallgrass Development to own, operate, acquire and develop midstream energy assets in North America. TEP provides i) natural gas transportation and storage services in the Rocky Mountain and Midwest regions through its TIGT System and ii) processing services in Wyoming through Midstream Facilities. For the year ended December 31, 2012, TEP generated Adjusted EBITDA of ~$76.4 mn and net income of ~ $50.1 mn. The company acquired its portfolio of current midstream energy assets from Kinder Morgan (NYSE:KMI) at an enterprise value of ~$3.3 bn in November 2012.

What are

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details