Tallgrass Energy Partners and Rockies Express Pipeline Announce Receipt of Ultra Settlement Payment, Results of Recent Zone 3 Open Seasons and Leadership Transition

LEAWOOD, Kan.–(BUSINESS WIRE)–Rockies Express Pipeline LLC (“REX”) and Tallgrass Energy Partners, LP
(NYSE: TEP), REX’s operator, announced today that REX received the cash
payment of $150 million from Ultra Resources, Inc. (“Ultra”) in
connection with the settlement of REX’s $303 million breach of contract
claim, and that REX has distributed the proceeds to its partners. As
previously disclosed, Ultra has agreed to enter into a new seven-year
firm transportation agreement with REX commencing Dec. 1, 2019, for
service from west-to-east of 200,000 dekatherms per day at a rate of
approximately $0.37, or about $26.8 million annually.

REX recently conducted several open seasons for incremental east-to-west
capacity in Zone 3 totaling 180,000 dekatherms per day from Clarington,
Ohio to delivery points as far west as Moultrie, Ill. As a result of the
open seasons, REX has entered into firm transportation contracts with a
number of parties for varying volumes and terms that began as early as
June 2017. REX currently expects 2017 revenue from those contracts to be
at least $13 million.

Tallgrass Energy plans to report second quarter 2017 financial results
on Wednesday, Aug. 2, 2017, after market close and hold a conference
call at 3:30 p.m. Central Time that same day. Tallgrass Energy expects
to provide additional details on these and other developments during the
conference call on Aug. 2.

REX Leadership Transition

Crystal Heter, who currently serves as the Vice President and General
Manager of REX, has recently been named the President of REX, assuming
those responsibilities from Matt Sheehy as he fully transitions into his
role as Senior Vice President and Chief Commercial Officer for Tallgrass
Energy. Ms. Heter, a chemical engineer, started her career as an
engineering intern with predecessor companies and moved up through both
the technical and commercial sides of the business. She is an
accomplished leader at Tallgrass Energy and possesses a deep knowledge
of REX, its customers and the markets it serves. She has been
instrumental in the execution of Tallgrass’s strategy to transform REX
into the nation’s northernmost natural gas header system and is ideally
positioned to lead REX into its next phase of growth and development.

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 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.

About Rockies Express Pipeline

Rockies Express Pipeline is an approximately 1,700-mile natural gas
transmission pipeline that extends from the Rocky Mountains to
Clarington, Ohio. The system consists of 36-inch and 42-inch diameter
pipe with a west-to-east long-haul design capacity of up to 1.8 billion
cubic feet of natural gas per day and an east-to-west design capacity of
2.6 billion cubic feet of natural gas per day within Zone 3 of the
pipeline. In addition, REX has 0.6 billion cubic feet a day 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 (approximately 25 percent share); a subsidiary
of TEP (approximately 50 percent share); and P66REX LLC, a subsidiary of
Phillips 66 (25 percent share). A wholly-owned subsidiary of TEP
operates the pipeline.

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 expected 2017 revenue from the firm
transportation contracts entered into in connection with the REX open
seasons. Such statements are subject to a number of assumptions, risks
and uncertainties, many of which are beyond the control of TEP, 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, including those set forth in reports filed by TEP with the
Securities and Exchange Commission. Any forward-looking statement
applies only as of the date on which such statement is made and TEP 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.

Contacts

Tallgrass Energy Partners, LP
Investor Relations
Nate
Lien, 913-928-6012
[email protected]
or
Media
and Trade Inquiries
Phyllis Hammond, 913-928-6014
[email protected]