Kansas City Area Company Makes $400 million Pipeline Acquisition

A $400 million deal means increased ownership in the Rockies Express Pipeline LLC by Leawood, Kansas-based Tallgrass Energy Partners, LP.

The purchase of 24.99 percent was made from Tallgrass Development AP and gives Tallgrass Energy a nearly 50 percent interest in the line.

The deal will also result in Tallgrass Energy getting part of a $150 million settlement of a legal fight between Rockies Express Pipeline and Houston-based Ultra Resources Inc.

Ultra filed for Chapter 11 reorganization last year and REX leveled a $303 million breach of contract claim against Ultra. The settlement was approved by a bankruptcy judge.

 

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