“We are pleased to acquire an additional interest in REX at a very attractive price and we expect the transaction to be immediately accretive to unitholders,” said Tallgrass President and CEO, David G. Dehaemers, Jr. “We intend to recommend to the board of directors of our general partner that TEP increase its quarterly distributions for 2Q17 and 3Q17 by an aggregate of at least US$0.10 per unit or US$0.40 per unit on an annualised basis.”
Ultra update
Ultra Resources, Inc. recently announced that the US Bankruptcy Court confirmed its Chapter 11 reorganisation plan. The plan contemplates payment of REX’s US$150 million claim within three months after Ultra emerges from bankruptcy, and no later than 30 October 2017. Ultra has previously indicated it plans to emerge from bankruptcy during the month of April. TEP will receive its approximate 50% share of an expected approximately US$150 million distribution from REX resulting from Ultra's settlement payment.
