Acquisition will provide immediate cash flows with opportunities for growth
HOUSTON–(BUSINESS WIRE)–Today, Tallgrass has announced an agreement to purchase the Ruby Pipeline. The acquisition of this asset provides access to established markets, an additional ~1.5 bcf/d of natural gas capacity to the company’s portfolio and immediate and strong cash flow to the company.
The investment will provide Tallgrass a platform to enhance natural gas service to West Coast markets. It also provides a unique opportunity for Tallgrass to utilize Ruby’s 683-mile existing infrastructure network to advance Tallgrass’ initiatives to offer decarbonized energy solutions such as responsibly sourced and renewable natural gas to customers across the U.S.
“Ruby’s capabilities maintain our nation’s energy security and provide long-term opportunities in the transportation of the molecules that will be required in the energy transition,” said Matt Sheehy, President and CEO of Tallgrass. “In addition to gaining new teammates, this acquisition further advances our track record of optimizing existing infrastructure to lead energy solutions.”
The transaction is expected to close in the first quarter of 2023 subject to customary regulatory approvals and closing conditions.
Cautionary Note Concerning Forward-Looking Statements
Disclosures in this news release contain forward-looking statements. All statements, other than statements of historical fact, 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 benefits of the acquisition, including statements regarding the immediate and strong cash flows, opportunities for growth, access to established markets and the potential utilization of Ruby as a future vehicle for North America’s decarbonization efforts; whether the transaction will close in the first quarter of 2023 or at all; and statements regarding Ruby’s key pipeline employees remaining in place following closing. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Tallgrass, 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 and financial statements made available by Tallgrass. Any forward-looking statement applies only as of the date on which such statement is made, and Tallgrass 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.
About Tallgrass
Tallgrass is a leading energy infrastructure company focused on safely, reliably and sustainably delivering the energy and services that fuel homes and businesses and enable quality of life. We are committed to being at the forefront of efforts to decarbonize our world. An investor group led by Blackstone Infrastructure Partners, which includes Enagás SA, GIC, NPS and USS, owns the outstanding equity interests in Tallgrass. Learn more at Tallgrass.com.
Contacts
Tallgrass Media Inquiries
Steven Davidson, 817-988-4284
