School of Energy - Online October 20-21, 2020

Making Connections Across Energy Markets!

2020 has been a chaotic year for energy markets. Learn to make sense of it all with a structured approach to market analysis, supported by comprehensive spreadsheet models and market updates, all from the comfort of your home or office. Don't miss our Virtual School of Energy!

Walking Tall - Tallgrass's Winning Strategy for the Rockies Express (REX) Pipeline

When the Rockies Express (REX) Pipeline was being planned and built a few years ago, no one could have predicted that the natural gas-hungry Northeast REX was developed to serve would soon become a gas-production behemoth able to meet its own needs and have plenty of gas left over. But that’s just what happened, and in response, REX’s owners developed a revised strategy that deals with the reality of Marcellus/Utica production growth by making more and more of REX bi-directional. Now, Tallgrass Energy Partners (TEP), a master limited partnership (MLP), has acquired a 25% interest in REX from Sempra, joining existing co-owners Tallgrass Development (an affiliate with a 50% stake in REX) and Phillips 66 (with a 25% stake), and has laid out a long-term vision for maintaining—and even increasing—REX’s relevance in a still-changing energy world. Today, we consider TEP’s $1.08 billion investment in REX, and the steps that the pipeline’s co-owners are taking to bolster REX’s future.

First an important disclaimer.  We are not an investment advisor.  The purpose of this blog is not investment advice or endorsement.  RBN looks at individual company information to see what the data means for the market as a whole, not for the implications for any particular company’s stock.   You should not rely on anything you read here as the basis for any decision or conclusion regarding TEP or any other security.

To access the remainder of Walking Tall - Tallgrass's Winning Strategy for the Rockies Express (REX) Pipeline you must be logged as a RBN Backstage Pass™ subscriber.

Full access to the RBN Energy blog archive which includes any posting more than 5 days old is available only to RBN Backstage Pass™ subscribers. In addition to blog archive access, RBN Backstage Pass™ resources include Drill-Down Reports, Spotlight Reports, Spotcheck Indicators, Market Fundamentals Webcasts, Get-Togethers and more. If you have already purchased a subscription, be sure you are logged in For additional help or information, contact us at or 888-613-8874.