Exhibit 99.1
Tallgrass Energy Partners, LP Reports Second Quarter 2014 Results and Updates Potential Pony Express Acquisition
LEAWOOD, Kan.--(BUSINESS WIRE)--August 6, 2014--Tallgrass Energy Partners, LP (NYSE: TEP) ("TEP" or the "Partnership") today reported financial and operating results for the second quarter of 2014. The financial results for the three and six months ended June 30, 2013 and for the six months ended June 30, 2014 have been recast to reflect the results of operations of Trailblazer Pipeline Company LLC ("Trailblazer"), which TEP acquired on April 1, 2014. The financial results for the prior periods presented in the table below with the column heading "As Reported in 2013" do not include Trailblazer's results of operations.
| Summary Financial Information | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||
| (in thousands, except coverage and per unit data) | 2014 | 2013 | As Reported in 2013 | 2014 | 2013 | As Reported in 2013 | |||||||||||||||||||
| Net income (loss) | $ | 16,867 | $ | (13,227 | ) | $ | (11,727 | ) | $ | 35,499 | $ | (8,759 | ) | $ | (6,656 | ) | |||||||||
| Add: | |||||||||||||||||||||||||
| Interest expense, net | 2,140 | 3,495 | 3,500 | 3,433 | 9,059 | 9,064 | |||||||||||||||||||
| Depreciation and amortization expense | 8,622 | 9,332 | 7,436 | 16,174 | 18,722 | 14,982 | |||||||||||||||||||
| Loss on extinguishment of debt | — | 17,526 | 17,526 | — | 17,526 | 17,526 | |||||||||||||||||||
| Non-cash (gain) loss related to derivative instruments | (96 | ) | (848 | ) | (848 | ) | 255 | 71 | 71 | ||||||||||||||||
| Non-cash compensation expense | 1,308 | 85 | 85 | 2,249 | 85 | 85 | |||||||||||||||||||
| Distributions from unconsolidated investment | 772 | — | — | 1,280 | — | — | |||||||||||||||||||
| Gain on remeasurement of unconsolidated investment | (9,388 | ) | — | — | (9,388 | ) | — | — | |||||||||||||||||
| Less: | |||||||||||||||||||||||||
| Equity in earnings of unconsolidated investment | (273 | ) | — | — | (717 | ) | — | — | |||||||||||||||||
| Adjusted EBITDA | $ | 19,952 | $ | 16,363 | $ | 15,972 | $ | 48,785 | $ | 36,704 | $ | 35,072 | |||||||||||||
| Less: | |||||||||||||||||||||||||
| Maintenance capital expenditures | $ | (2,531 | ) | $ | (1,681 | ) | $ | (3,472 | ) | $ | (1,945 | ) | |||||||||||||
| Cash interest cost | (1,909 | ) | (1,549 | ) | (a) | (3,082 | ) | (3,081 | ) | (a) | |||||||||||||||
| Distributable Cash Flow attributable to predecessor operations | — | — | (6,637 | ) | — | ||||||||||||||||||||
| Distributable cash flow (DCF) | $ | 15,512 | $ | 12,742 | $ | 35,594 | $ | 30,046 | |||||||||||||||||
| Less: | |||||||||||||||||||||||||
| Distributions excluding follow-on equity offering units | $ | (16,503 | ) | (b) | $ | (11,881 | ) | (a) | $ | (30,190 | ) | (b) | $ | (23,763 | ) | (a) | |||||||||
| DCF (less than) in excess of distributions excluding follow-on equity offering units | $ | (991 | ) | $ | 861 | $ | 5,404 | $ | 6,283 | ||||||||||||||||
| Distribution coverage excluding follow-on equity offering units | 0.94 | 1.07 | 1.18 | 1.26 | |||||||||||||||||||||
| Limited partner units outstanding as of 6/30/14 | 40,885 | 40,500 | 40,885 | 40,500 | |||||||||||||||||||||
| Distribution per unit | 0.38 | 0.2875 | (a) | 0.705 | 0.575 | (a) | |||||||||||||||||||
| The following table contains the calculation of distribution coverage including the impact of the distributions to be paid on the 8,050,000 common units issued through the follow-on equity offering that closed on July 25, 2014. | |||||||||||||||||||||||||
| Distributable cash flow (DCF) | $ | 15,512 | $ | 35,594 | |||||||||||||||||||||
| Less: | |||||||||||||||||||||||||
| Distributions including follow-on equity offering units | $ | (19,684 | ) | (b) | $ | (33,372 | ) | (b) | |||||||||||||||||
| DCF (less than) in excess of distributions including follow-on equity offering units | $ | (4,172 | ) | $ | 2,222 | ||||||||||||||||||||
| Distribution coverage including follow-on equity offering units | 0.79 | 1.07 | |||||||||||||||||||||||
| Limited partner units outstanding as of 7/25/14 | 48,935 | 48,935 | |||||||||||||||||||||||
| Distribution per unit | $ | 0.3800 | $ | 0.7050 | |||||||||||||||||||||
| (a) | Indicated amounts presented for the "As Reported" three and six months ended June 30, 2013 are on a pro forma basis, which assumes that our initial public offering and related formation transactions, including borrowings under our revolving credit facility, had closed on January 1, 2013. No cash distributions were paid with respect to the first quarter of 2013. Pro forma distributions for the "As Reported" three and six months ended June 30, 2013 were calculated using the minimum quarterly distribution under our partnership agreement. Pro forma interest expense (inclusive of commitment fees) for the "As Reported" three and six months ended June 30, 2013 was calculated by using the average outstanding borrowings for the period from May 17, 2013 to June 30, 2013 and applying it to the full periods. Actual cash interest cost for the three and six month periods ended June 30, 2013 was $763,000. |
Management believes the pro forma presentation of distributable cash flow and distribution coverage provides investors with useful information to compare our historical financial results. These pro forma financial measures are presented for illustrative purposes only and are not necessarily indicative of the operating results or the financial position that would have been achieved had the initial public offering and related formation transactions been consummated on January 1, 2013 or of the results that may be obtained in the future.
| (b) | Distributions to be paid on August 14, 2014 for the second quarter of 2014 will be based on the total number of common units and subordinated units outstanding as of July 30, 2014, which was 48,935,140 and includes the 8,050,000 units issued through the follow-on equity offering that closed on July 25, 2014. The incremental distribution on the new units is $3,181,000. The actual number of common units and subordinated units outstanding on June 30, 2014 was 40,885,140. |
Tallgrass President and CEO David G. Dehaemers, Jr. said, "As we expected and previously communicated on our first quarter earnings call, our second quarter coverage was lower than the first quarter of 2014, and we continue to expect the second quarter results to be the lowest quarter during 2014. While quarterly distribution coverage is rarely linear, our coverage for the last four quarters, excluding the impact of the units issued in July 2014, was 1.18x which represents approximately $10 million of excess distributable cash generated. TEP remains committed to safe operations and delivering outstanding returns to our unitholders. Our recent offering in the equity capital markets positions us to deliver those returns through opportunities like the potential Pony Express acquisition."
Segment Overview
The financial results for the Gas Transportation and Storage Segment for the three and six months ended June 30, 2013 and for the six months ended June 30, 2014 have been recast to reflect the results of operations of Trailblazer Pipeline Company LLC ("Trailblazer"), which TEP acquired on April 1, 2014. The financial results for the Gas Transportation and Storage Segment for the three and six months ended June 30, 2013 with the column heading "As Reported in 2013" do not include Trailblazer's results of operations.
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
| 2014 | 2013 | As Reported in 2013 | 2014 | 2013 | As Reported in 2013 | |||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||
| Gas Transportation and Storage Segment | ||||||||||||||||||||||||
| Operating income | $ | 8,318 | $ | 4,159 | $ | 5,680 | $ | 21,284 | $ | 8,621 | $ | 10,762 | ||||||||||||
| Add: | ||||||||||||||||||||||||
| Depreciation and amortization expense | 6,115 | 7,676 | 5,780 | 11,720 | 15,446 | 11,706 | ||||||||||||||||||
| Non-cash (gain) loss related to derivative instruments | (96 | ) | (848 | ) | (848 | ) | 255 | 71 | 71 | |||||||||||||||
| Other income | 729 | 447 | 431 | 1,669 | 803 | 770 | ||||||||||||||||||
| Segment Adjusted EBITDA | $ | 15,066 | $ | 11,434 | $ | 11,043 | $ | 34,928 | $ | 24,941 | $ | 23,309 | ||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
| Processing Segment | ||||||||||||||||||||||||
| Operating income | $ | 2,177 | $ | 3,580 | $ | 9,318 | $ | 8,794 | ||||||||||||||||
| Add: | ||||||||||||||||||||||||
| Depreciation and amortization expense | 2,507 | 1,656 | 4,454 | 3,276 | ||||||||||||||||||||
| Distributions from unconsolidated investment | 772 | — | 1,280 | — | ||||||||||||||||||||
| Net loss attributable to noncontrolling interests | 55 | — | 55 | — | ||||||||||||||||||||
| Segment Adjusted EBITDA | $ | 5,511 | $ | 5,236 | $ | 15,107 | $ | 12,070 | ||||||||||||||||
Adjusted EBITDA in the Gas Transportation and Storage segment for the second quarter of 2014 was $15.1 million, representing an increase of $3.6 million as compared to the recast second quarter of 2013, primarily due to lower operating costs and expenses. The most significant decrease in costs was a reduction in costs of sales and transportation services at Trailblazer resulting from the new tariff established in the rate case that provides for recovery of compression costs. Average firm contracted transportation capacity of 1,494 MMcf/d for the second quarter of 2014 was comparable to 1,441 MMcf/d for the recast second quarter of 2013. When comparing the Gas Transportation and Storage segment's Adjusted EBITDA for the second quarter of 2014 to its $19.9 million of Adjusted EBITDA for the recast first quarter of 2014, the decrease is primarily attributable to higher natural gas sales revenues and higher transportation services revenues in the first quarter of 2014 resulting from the extreme winter climate experienced throughout the Midwest and Rocky Mountain regions.
The Processing segment generated Adjusted EBITDA of $5.5 million for the second quarter of 2014, representing an increase of $0.3 million as compared to the second quarter of 2013. The increase was primarily due to distributions received from the fresh water transportation pipeline. However, the Processing segment’s Adjusted EBITDA of $5.5 million for the second quarter of 2014 was negatively impacted by the effects of plant downtime at Douglas associated with planned maintenance and off-spec deliveries and related costs. Approximate average inlet volumes were 136 MMcf/day for the second quarter of 2014 as compared to 137 MMcf/day for the second quarter of 2013, reflecting the impact of plant downtime, and to a lesser extent, lower than expected volumes delivered by our customers.
When comparing the Processing segment's $5.5 million Adjusted EBITDA for the second quarter of 2014 to its Adjusted EBITDA of $9.6 million for the first quarter of 2014, the decrease is primarily attributable to lower commodity prices, lower processing volumes and costs associated with plant downtime.
Revolving Credit Facility
On June 25, 2014, TEP entered into an amendment to its Revolving Credit Facility Agreement dated as of May 17, 2013. The amendment modifies certain provisions of the Credit Agreement to, among other things, (i) increase the amount of the revolving facility from $500 million to $850 million, (ii) reduce the applicable margin by 0.25%, and (iii) allow the Partnership to buy a portion of Tallgrass Development's interest in REX.
Potential Pony Express Acquisition
As previously announced, Tallgrass Development has offered us the right to purchase a 33.3% interest in Tallgrass Pony Express Pipeline, LLC, which owns the Pony Express Project, for total consideration of $600 million. The terms of Tallgrass Development’s offer provide that the 33.3% equity interest we would acquire would be structured as preferred units in Tallgrass Pony Express Pipeline, LLC bearing certain cumulative cash flow preference rights that will afford us first dollar preference on specified cash distributions supported by cash flow occurring on or before September 30, 2015. In addition, the terms of Tallgrass Development's offer would not require TEP to incur additional capital costs in excess of those included in the total consideration of $600 million for the remaining build out of the Pony Express Project. If the transaction is consummated on the terms set forth in Tallgrass Development’s offer, we expect the purchase to be accretive to us during 2014.
The Pony Express Project primarily consists of the following two components:
| • | The conversion of an approximately 430-mile natural gas pipeline and the construction of an approximately 260-mile southward pipeline extension that, when complete, will result in a 690-mile oil pipeline from Guernsey, Wyoming to Cushing, Oklahoma. We collectively refer to this portion of the Pony Express Project as the Pony Mainline. |
| • | The construction of an approximately 66-mile lateral in Northeast Colorado that will interconnect with the Pony Mainline just east of Sterling, Colorado. We refer to this portion of the Pony Express Project as the Northeast Colorado Lateral. |
The Pony Mainline has approximately 206,000 bbls/d of committed capacity with five year contract terms and is expected to be in service during the third quarter of 2014. The Northeast Colorado Lateral has approximately 81,000 bbls/d of committed capacity with five year contract terms and is expected to be in service sometime during the first half of 2015. The firm contracts commence on the date the Pony Mainline or Northeast Colorado Lateral, as applicable, are placed in commercial service.
A conflicts committee of the board of directors of our general partner, consisting solely of independent directors, has been formed and will be evaluating the offer with assistance from external advisors to be engaged by the conflicts committee. The Pony Acquisition has not been executed at this time and is subject to final review, negotiations and approval by the conflicts committee and by the board of directors of our general partner.
Follow-On Public Offering of Common Units
On July 25, 2014, TEP issued 8,050,000 common units at an offering price of $41.07 and a net price of $39.74 after the underwriters' discount. Total net proceeds to TEP, after deducting the underwriting discount and offering expenses, equaled $319.5 million. TEP intends to use the net proceeds from the offering to fund a portion of the consideration for the above mentioned potential acquisition of an interest in Tallgrass Pony Express Pipeline, LLC. Pending the use of proceeds for such purpose, TEP used the net proceeds of the offering to repay borrowings under TEP’s revolving credit facility with the excess being used for general partnership purposes.
Second Quarter Distribution
As previously announced, the board of directors of TEP's general partner declared a quarterly cash distribution to partners of $0.38 per common unit for the second quarter of 2014. This quarterly distribution represents $1.52 on an annualized basis. The quarterly distribution will be paid on Thursday, August 14, 2014, to unitholders of record as of the close of business on Wednesday, July 30, 2014.
Conference Call
Please join Tallgrass for a conference call and webcast related to its second quarter 2014 results at 4:00 pm Central Time on Wednesday, August 6, 2014. A link posted in the Investor Relations section of our website will allow interested parties to listen and the replay will be available on our website for a limited time following the end of the live call.
About Tallgrass Energy Partners, LP
Tallgrass Energy Partners, LP (NYSE: TEP) is a publicly traded, growth-oriented limited partnership formed to own, operate, acquire and develop midstream energy assets in North America. We currently provide natural gas transportation and storage services for customers in the Rocky Mountain and Midwest regions of the United States through our Tallgrass Interstate Gas Transmission and Trailblazer Pipeline systems and provide processing services for customers in Wyoming through our Casper and Douglas natural gas processing and West Frenchie Draw natural gas treating facilities. We believe we are well-positioned to capture growing natural gas volumes produced in the Denver-Julesburg Basin and the Niobrara and Mississippi Lime shale formations.
To learn more, please visit our website at www.tallgrassenergy.com.
Non-GAAP Measures
Adjusted EBITDA and distributable cash flow are non-GAAP supplemental financial measures that management and external users of our combined financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
| • | our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of Adjusted EBITDA, financing methods; |
| • | the ability of our assets to generate sufficient cash flow to make distributions to our unitholders; |
| • | 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 Adjusted EBITDA and distributable cash flow provides useful information to investors in assessing our financial condition and results of operations. Adjusted EBITDA and distributable cash flow should not be considered alternatives to net income, operating income, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP, nor should Adjusted EBITDA and distributable cash flow be considered alternatives to available cash, operating surplus, distributions of available cash from operating surplus or other definitions in our partnership agreement. Adjusted EBITDA and distributable cash flow 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 Adjusted EBITDA and distributable cash flow may be defined differently by other companies in our industry, our definition of Adjusted EBITDA and distributable cash flow may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
We define Adjusted 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. We define distributable cash flow as Adjusted EBITDA less cash interest cost and maintenance capital expenditures. Neither Adjusted EBITDA nor distributable cash flow will be impacted by changes in working capital balances that are reflected in operating cash flow. For a reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, please see "Summary Financial Information" above.
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 possibility of Tallgrass Energy Partners acquiring an interest in Tallgrass Pony Express Pipeline, LLC, including the price and percentage interest that may be acquired, the dates on which the pipeline mainline and Northeast Colorado Lateral are expected to be placed in service, and the earnings and distribution accretion that may be realized by Tallgrass Energy Partners as a result of such acquisition, if completed. Forward looking statements may also include the expectations of plans, strategies, objectives and growth and anticipated financial and operational performance of Tallgrass Energy Partners and its subsidiaries, including: the ability to pursue expansions and other opportunities for incremental volumes; natural gas production growth in Tallgrass Energy Partners' operating areas; expected future benefits of acquisitions or expansion projects; timing of anticipated spending on planned expenses and maintenance capital projects; and distribution rate and growth, including variability of quarterly distribution coverage. These statements are based on certain assumptions made by Tallgrass Energy Partners based on management’s experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Tallgrass Energy Partners, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include risks relating to Tallgrass Energy Partners’ financial performance and results, availability of sufficient cash flow to pay distributions and execute its business plan, the demand for natural gas storage and transportation services, operating hazards, the effects of government regulation, tax position and other risks incidental to transporting, storing and processing natural gas and other important factors that could cause actual results to differ materially from those projected, including those set forth in reports filed by Tallgrass Energy Partners with the Securities and Exchange Commission. Any forward-looking statement applies only as of the date on which such statement is made and Tallgrass Energy Partners does 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.
Financial Statements
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
| June 30, 2014 | December 31, 2013 | ||||||
| (in thousands) | |||||||
| ASSETS | |||||||
| Current Assets: | |||||||
| Cash and cash equivalents | $ | 16 | $ | — | |||
| Accounts receivable, net | 27,698 | 30,033 | |||||
| Gas imbalances | 1,336 | 3,128 | |||||
| Inventories | 8,122 | 5,549 | |||||
| Prepayments and other current assets | 1,788 | 16,986 | |||||
| Total Current Assets | 38,960 | 55,696 | |||||
| Property, plant and equipment, net | 660,251 | 657,780 | |||||
| Goodwill | 343,288 | 334,715 | |||||
| Intangible asset, net | 7,495 | — | |||||
| Unconsolidated investment | — | 1,255 | |||||
| Deferred financing costs | 6,273 | 4,512 | |||||
| Deferred charges and other assets | 11,048 | 11,299 | |||||
| Total Assets | $ | 1,067,315 | $ | 1,065,257 | |||
| LIABILITIES AND PARTNERS’ EQUITY | |||||||
| Current Liabilities: | |||||||
| Accounts payable | $ | 27,940 | $ | 60,240 | |||
| Accounts payable to related parties | 3,963 | 7,137 | |||||
| Gas imbalances | 4,407 | 3,664 | |||||
| Derivative liabilities at fair value | 439 | 184 | |||||
| Accrued taxes | 3,871 | 5,520 | |||||
| Accrued other current liabilities | 16,988 | 16,748 | |||||
| Total Current Liabilities | 57,608 | 93,493 | |||||
| Long-term debt | 281,000 | 135,000 | |||||
| Other long-term liabilities and deferred credits | 6,933 | 4,572 | |||||
| Total Long-term Liabilities | 287,933 | 139,572 | |||||
| Equity: | |||||||
| Predecessor Equity | — | 88,251 | |||||
| Common unitholders (24,685,140 and 24,300,000 units issued and outstanding at June 30, 2014 and December 31, 2013) | 475,227 | 455,197 | |||||
| Subordinated unitholder (16,200,000 units issued and outstanding at June 30, 2014 and December 31, 2013) | 275,554 | 274,666 | |||||
| General partner (834,391 and 826,531 units issued and outstanding at June 30, 2014 and December 31, 2013) | (30,352 | ) | 14,078 | ||||
| Total Partners’ Equity | 720,429 | 832,192 | |||||
| Noncontrolling interests | 1,345 | — | |||||
| Total Equity | 721,774 | 832,192 | |||||
| Total Liabilities and Equity | $ | 1,067,315 | $ | 1,065,257 | |||
| TALLGRASS ENERGY PARTNERS, LP CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| (in thousands, except per unit amounts) | ||||||||||||||||
| Revenues: | ||||||||||||||||
| Natural gas liquids sales | $ | 36,329 | $ | 31,690 | $ | 85,236 | $ | 65,091 | ||||||||
| Natural gas sales | 2,713 | 4,248 | 7,521 | 4,698 | ||||||||||||
| Transportation services | 30,569 | 30,909 | 64,673 | 60,527 | ||||||||||||
| Processing and other revenues | 7,709 | 2,500 | 14,669 | 4,719 | ||||||||||||
| Total Revenues | 77,320 | 69,347 | 172,099 | 135,035 | ||||||||||||
| Operating Costs and Expenses: | ||||||||||||||||
| Cost of sales and transportation services | 41,172 | 35,257 | 93,240 | 66,443 | ||||||||||||
| Operations and maintenance | 10,055 | 9,229 | 18,068 | 16,592 | ||||||||||||
| Depreciation and amortization | 8,768 | 9,332 | 16,320 | 18,722 | ||||||||||||
| General and administrative | 7,124 | 6,517 | 13,773 | 12,544 | ||||||||||||
| Taxes, other than income taxes | 1,639 | 1,663 | 3,595 | 3,709 | ||||||||||||
| Total Operating Costs and Expenses | 68,758 | 61,998 | 144,996 | 118,010 | ||||||||||||
| Operating Income | 8,562 | 7,349 | 27,103 | 17,025 | ||||||||||||
| Other (Expense) Income: | ||||||||||||||||
| Interest (expense) income, net | (2,140 | ) | (3,495 | ) | (3,433 | ) | (9,059 | ) | ||||||||
| Gain on remeasurement of unconsolidated investment | 9,388 | — | 9,388 | — | ||||||||||||
| Loss on extinguishment of debt | — | (17,526 | ) | — | (17,526 | ) | ||||||||||
| Equity in earnings of unconsolidated investment | 273 | — | 717 | — | ||||||||||||
| Other income, net | 729 | 445 | 1,669 | 801 | ||||||||||||
| Total Other Expense | 8,250 | (20,576 | ) | 8,341 | (25,784 | ) | ||||||||||
| Net Income (Loss) | 16,812 | (13,227 | ) | 35,444 | (8,759 | ) | ||||||||||
| Net loss attributable to noncontrolling interests | 55 | — | 55 | — | ||||||||||||
| Net Income (loss) attributable to partners | $ | 16,867 | $ | (13,227 | ) | $ | 35,499 | $ | (8,759 | ) | ||||||
| Total comprehensive income attributable to partners | $ | 16,867 | $ | (13,227 | ) | $ | 35,499 | $ | (8,759 | ) | ||||||
| Allocation of income (loss) to the limited partners: | ||||||||||||||||
| Net income (loss) attributable to partners | $ | 16,867 | $ | (13,227 | ) | $ | 35,499 | $ | (8,759 | ) | ||||||
| Predecessor operations interest in net loss (income) | — | 1,500 | (5,732 | ) | 2,103 | |||||||||||
| Net income (loss) attributable to partners | 16,867 | (11,727 | ) | 29,767 | (6,656 | ) | ||||||||||
| Net income attributable to partners prior to May 17, 2013 | — | (1,911 | ) | — | (6,982 | ) | ||||||||||
| Net income (loss) attributable to partners subsequent to May 17, 2013 | 16,867 | (13,638 | ) | 29,767 | (13,638 | ) | ||||||||||
| General partner interest in net (income) loss subsequent to May 17, 2013 | (1,096 | ) | 273 | (1,477 | ) | 273 | ||||||||||
| Common and subordinated unitholders' interest in net income (loss) subsequent to May 17, 2013 | $ | 15,771 | $ | (13,365 | ) | $ | 28,290 | $ | (13,365 | ) | ||||||
| Basic net income (loss) per common and subordinated unit | $ | 0.39 | $ | (0.33 | ) | $ | 0.70 | $ | (0.33 | ) | ||||||
| Diluted net income (loss) per common and subordinated unit | $ | 0.38 | $ | (0.33 | ) | $ | 0.68 | $ | (0.33 | ) | ||||||
| Basic average number of common and subordinated units outstanding | 40,885 | 40,246 | 40,694 | 40,246 | ||||||||||||
| Diluted average number of common and subordinated units outstanding | 41,905 | 40,246 | 41,624 | 40,246 | ||||||||||||
| TALLGRASS ENERGY PARTNERS, LP CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) | ||||||||
| Six Months Ended June 30, 2014 | Six Months Ended June 30, 2013 | |||||||
| (in thousands) | ||||||||
| Cash Flows from Operating Activities: | ||||||||
| Net income (loss) | $ | 35,444 | $ | (8,759 | ) | |||
| Adjustments to reconcile net income (loss) to net cash flows from operating activities: | ||||||||
| Depreciation and amortization | 16,956 | 19,940 | ||||||
| Gain on remeasurement of unconsolidated investment | (9,388 | ) | — | |||||
| Loss on extinguishment of debt | — | 17,526 | ||||||
| Noncash compensation expense | 2,249 | 85 | ||||||
| Changes in components of working capital: | ||||||||
| Accounts receivable and other | 4,144 | 18,683 | ||||||
| Gas imbalances | 831 | 2,517 | ||||||
| Inventories | (867 | ) | (2,592 | ) | ||||
| Accounts payable and accrued liabilities | (17,249 | ) | (9,484 | ) | ||||
| Other operating, net | 2,833 | (5,233 | ) | |||||
| Net Cash Provided by Operating Activities | 34,953 | 32,683 | ||||||
| Cash Flows from Investing Activities: | ||||||||
| Acquisition of Trailblazer | (150,000 | ) | — | |||||
| Capital expenditures | (19,851 | ) | (20,724 | ) | ||||
| Acquisition of additional equity interests in Water Solutions | (7,600 | ) | — | |||||
| Unconsolidated investment | (1,999 | ) | — | |||||
| Other investing, net | 358 | (341 | ) | |||||
| Net Cash Used in Investing Activities | (179,092 | ) | (21,065 | ) | ||||
| Cash Flows from Financing Activities: | ||||||||
| Borrowings under revolving credit facility | 146,000 | 224,000 | ||||||
| Contribution from TD | 27,488 | — | ||||||
| Distributions to unitholders | (26,770 | ) | — | |||||
| Reimbursement of stock compensation expense from TD | 2,392 | — | ||||||
| Distributions to Predecessor Member, net | (2,893 | ) | (1,215 | ) | ||||
| Payments for deferred financing costs | (2,325 | ) | (4,988 | ) | ||||
| Repayment of debt assumed from TD | — | (400,000 | ) | |||||
| Proceeds from initial public offering, net of offering costs | — | 290,706 | ||||||
| Distributions to Member, net | — | (118,538 | ) | |||||
| Other financing, net | 263 | (308 | ) | |||||
| Net Cash Provided by (Used in) Financing Activities | 144,155 | (10,343 | ) | |||||
| Net Change in Cash and Cash Equivalents | 16 | 1,275 | ||||||
| Cash and Cash Equivalents, beginning of period | — | — | ||||||
| Cash and Cash Equivalents, end of period | $ | 16 | $ | 1,275 | ||||
CONTACT:
Tallgrass Energy Partners, LP
Investor Relations
Nate Lien
(913) 928-6012
investor.relations@tallgrassenergylp.com