Tallgrass Energy Partners Announces Acquisition Expanding Water Infrastructure Footprint into the Bakken

LEAWOOD, Kan.–(BUSINESS WIRE)–Tallgrass Energy Partners, LP (NYSE: TEP), through its subsidiary BNN
Water Solutions, LLC (“BNN”), today announced the acquisition of water
infrastructure assets that establishes Tallgrass’s footprint in the
Bakken, delivers new business for BNN and provides Tallgrass a platform
from which to build additional midstream business in the Bakken.

BNN acquired Buckhorn SWD Solutions, LLC and Buckhorn Energy Services,
LLC (“Buckhorn”), which collectively own 10 salt water disposal wells
and approximately 39 miles of produced water gathering infrastructure
for a cash purchase price of approximately $95 million. The system
currently services approximately 133,000 dedicated acres for multiple
Bakken producers, including XTO Energy, Inc. Tallgrass anticipates that
BNN will spend an additional approximately $45 million in 2018 to
further expand the system to accommodate increased dedicated water
volumes resulting from expected new drilling and completions. Once the
additional infrastructure is completed, Tallgrass expects the total
investment will approximate a five times cash flow multiple.

With this acquisition, BNN now owns and operates over 230 miles of water
supply and gathering pipelines in addition to other water supply,
storage, recycle, and disposal assets; making them one of the largest
independent operators of water infrastructure in the industry.

“The acquisition of this Bakken water infrastructure expands BNN’s
footprint into another premier oil and gas producing region of the
country, while establishing and expanding important customer
relationships for BNN and Tallgrass,” said BNN Vice President and
General Manager Jeff Nelson. “In addition, this acquisition provides
Tallgrass with an opportunity to grow its midstream service offerings in
the Bakken.”

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 11 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 whether the additional capital expenditures
to further expand BNN's operations in the Bakken will be made on time,
on budget, or at all, and if such expenditures are made, whether
increased water volumes will result from new drilling and completions
(and whether those completions themselves will occur), and whether the
transaction and follow-on capital expenditures will result in an
approximately five times acquisition multiple. 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
Investor and Financial Inquiries
Nate
Lien, 913-928-6012
[email protected]
or
Media
and Trade Inquiries
Phyllis Hammond, 303-763-3568
[email protected]