By RTT News,
August 06, 2014, 09:24:00 PM EDT
(RTTNews.com) - Tallgrass Energy Partners, LP ( TEP ) reported second-quarter net income of $16.87 million or $0.38 per unit, compared to net loss of $13.23 million or $0.33 per unit in the year-ago period.
Total revenues for the quarter grew to $77.32 million from $69.35 million in the same quarter last year.
The company noted that 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, which it acquired on April 1, 2014.
On average, analysts polled by Thomson Reuters expected the company to earn $0.24 per share for the quarter on revenues of $74.68 million. Analysts' estimates typically exclude special items.
TEP had previously announced that Tallgrass Development has offered it the right to purchase a 33.3 percent 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 to be acquired by TEP would be structured as preferred units in Tallgrass Pony Express Pipeline, LLC bearing certain cumulative cash flow preference rights that will afford TEP first dollar preference on specified cash distributions supported by cash flow occurring on or before September 30, 2015.
If the transaction is consummated on the terms set forth in Tallgrass Development's offer, TEP expects the purchase to be accretive to it during 2014.
TEP noted that a conflicts committee of the board of directors of its 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 company added that 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 its general partner.
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