Tallgrass Energy Partners (TEP) announced this week that it is acquiring an additional 31.3 percent interest in the 760 - mile Tallgrass Pony Express crude oil pipeline running from Guernsey, Wyoming to Cushing, Oklahoma.

The company will offer a cash consideration of $475 million and 6.518 million TEP common units issued to Tallgrass Development.

Based on TEP’s December 31st closing price of $41.21, the total consideration of approximately $743.6 million represents a multiple of approximately 9.0x incremental cash flow to TEP as a result of the acquisition. The acquisition increases TEP’s membership interest in Pony Express to 98 percent.

“This acquisition demonstrates our continued commitment to execute on our strategic plan to grow TEP and increase the cash distributions to our unitholders, even in challenging capital market conditions,” said Tallgrass President and CEO, David G. Dehaemers, Jr. “The attractive acquisition multiple, the inclusion of equity consideration and other favorable terms of the purchase agreement showcase the supportive nature of TEP’s relationship with Tallgrass Development.”