Tallgrass Investor Presentation October 2018 Cautionary Statements - - PowerPoint PPT Presentation

Tallgrass Investor Presentation

October 2018

NYSE: TGE │ www.tallgrassenergy.com 2

Cautionary Statements

This presentation contains forward-looking statements. These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts. In particular, statements, express or implied, concerning future actions, conditions or events, future operating results or the ability to generate revenues, income or cash flow or to make distributions or pay dividends are forward- looking statements. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future actions, conditions or events and future results of operations of Tallgrass Energy, LP or Rockies Express Pipeline LLC and their respective affiliates may differ materially from those expressed in these forward-looking statements. Many of the factors that will determine these results are beyond Tallgrass Energy, LP’s and Rockies Express Pipeline LLC’s ability to control or predict and are necessarily based upon various assumptions involving judgements with respect to the future. Forward-looking statements contained in this presentation specifically include, without limitation, statements regarding the expected benefits of the simplification transactions, that TGE does not expect to pay cash federal taxes for at least 10 years, the feasibility, cost, execution and in-service timing of capital and

• ther growth projects at Rockies Express Pipeline LLC and Tallgrass Energy, LP, and their respective affiliates, including, without

limitation, the Cheyenne Connector pipeline, the Cheyenne Hub enhancements, the Iron Horse pipeline, the Grasslands and Guernsey Terminals, additional gathering pipeline and compression in the PRB, additional pipeline and water disposal facilities in the Bakken, DJ and PRB, and the Seahorse Pipeline and Plaquemines Liquids Terminal, the components of the Tallgrass Energy EBITDA by Asset in 2020, the 2020 contracted EBITDA at Rockies Express Pipeline LLC, and the expected production growth across the Bakken, DJ, and PRB basins in the next 5 years. These statements also include, among others, Tallgrass Energy, LP’s and Rockies Express Pipeline LLC’s respective ability to complete and integrate acquisitions, implement their respective business plans and complete internal growth projects; changes in general economic conditions; competitive conditions; actions taken by third-party operators, processors and transporters; demand for natural gas transportation, storage and processing services and crude oil transportation services; price and availability of debt and equity financing; availability and price of natural gas and crude oil compared to alternative fuels; energy efficiency and technology trends; operating hazards and other risks incidental to the business; natural disasters, weather-related delays and casualty losses; interest rates; labor relations; customer defaults; changes in tax status; effects of existing and future laws and governmental regulations; effects of future litigation; and other uncertainties. There is no assurance that any of the actions, events or results of the forward-looking statements will occur, or if any of them do, what impact they will have on our results of operations or financial condition. Because of these uncertainties, you are cautioned not to put undue reliance on any forward-looking statement. This presentation does not constitute an offer to sell any securities of Tallgrass Energy, LP or its respective affiliates or a solicitation of an

• ffer to buy any securities of Tallgrass Energy, LP or its respective affiliates.

NYSE: TGE │ www.tallgrassenergy.com 3

Non-GAAP Measures

Adjusted EBITDA (“EBITDA”), Cash Available for Dividends (“CAD”), and Distributable Cash Flow (“DCF”) are non-GAAP supplemental financial measures that TGE management and external users of our consolidated financial statements and financial statements of our subsidiaries and unconsolidated investments, such as industry analysts, investors, lenders and rating agencies, may use to assess:

• Our operating performance as compared to other publicly traded midstream infrastructure companies, without regard to historical cost basis or, in the

case of Adjusted EBITDA, financing methods;

• The ability of our assets to generate sufficient cash flow to make dividends to our shareholders;
• Our ability to incur and service debt and fund capital expenditures; and
• The viability of acquisitions and other capital expenditure projects and the returns on investment of various expansion and growth opportunities.

We believe that the presentation of EBITDA, CAD, and DCF provides useful information to investors in assessing our financial condition and results of operations. EBITDA, CAD, and DCF should not be considered alternatives to net income, operating income, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP, nor should EBITDA, CAD, and DCF be considered alternatives to available cash or other definitions in our partnership agreement. EBITDA, CAD, and DCF have important limitations as analytical tools because they exclude some but not all items that affect net income and net cash provided by operating activities. Additionally, because EBITDA, CAD, and DCF may be defined differently by other companies in our industry, our definition of EBITDA, CAD, and DCF may not be comparable to similarly titled measures of other companies, thereby diminishing their utility. We generally define EBITDA as net income excluding the impact of interest, income taxes, depreciation and amortization, non-cash income or loss related to derivative instruments, non-cash long-term compensation expense, impairment losses, gains or losses on asset or business disposals or acquisitions, gains or losses on the repurchase, redemption or early retirement of debt, and earnings from unconsolidated investments, but including the impact of distributions from unconsolidated investments and deficiency payments received from or utilized by our customers. We also use CAD and DCF, which we generally define as EBITDA, less cash interest costs, maintenance capital expenditures, distributions to noncontrolling interests in excess of earnings allocated to noncontrolling interests, and certain cash reserves permitted by our governing documents. EBITDA and CAD are both calculated and presented at the Tallgrass Equity level, before consideration of noncontrolling interest associated with the Exchange Right Holders or calculating distributions from Tallgrass Equity to us, on one hand, and to the Exchange Right Holders, on the other. We believe calculating these measures at Tallgrass Equity provides investors the most complete picture of our overall financial and operational results and provides a consistent metric for period over period comparisons that is not impacted by any future exercises by the Exchange Right Holders of the right to exchange TGE Class B Shares and Tallgrass Equity Units for an equal number of TGE Class A Shares (the "Exchange Right"), which does not have a dilutive effect on TGE's net income per share. For a reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, please see EBITDA Reconciliations in the appendix. We have also presented Merger Adjusted Segment Adjusted EBITDA for each of our reporting segments. We define Merger Adjusted Segment Adjusted EBITDA as EBITDA for such segment as adjusted for the impact of the TEP Merger Transaction, assuming it had closed on the first day of the period presented. We believe that the presentation of this measure on a merger adjusted basis provides useful information to investors in assessing our financial condition and results of

• perations for each of our reporting segments because the accounting treatment of our ownership interests in TEP prior to the TEP Merger Transaction and the

impact of non-controlling interests for the period was significantly impacted by the TEP Merger Transaction during the period but is not representative of the comparable measures during our historical periods. For a reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, please see EBITDA Reconciliations in the appendix. Tallgrass Energy is unable to project future net cash provided by operating activities or net income to provide the related reconciliation of projected EBITDA to the most comparable financial measures calculated in accordance with GAAP, because the impact of changes in operating assets and liabilities and the volume and timing of deficiency payments received and utilized from our customers are out of our control and cannot be reasonably predicted. Tallgrass Energy provides ranges or approximations for future estimates of EBITDA to allow for the variability in the timing of cash receipts and disbursements, customer utilization of our assets, and the impact on the related reconciling items, many of which interplay with each other. Therefore, the reconciliation of future EBITDA to projected net cash provided by operating activities and net income is not available without unreasonable effort.

NYSE: TGE │ www.tallgrassenergy.com 4

Tallgrass Energy Overview

Natural Gas Transportation 55% Crude Oil Transportation 37% G&P and Terminalling 8% 2017 TEP EBITDA Breakdown

Consolidated Footprint

(1) REX leases capacity on Overthrust Pipeline, which is owned by Dominion and consists of 255 miles of pipeline. (2) Tallgrass Terminals owns a ~60% interest in a joint venture, which owns an oil terminal facility in Cushing, OK. (3) Tallgrass Terminals owns a 51% interest in a joint venture, which owns an oil terminal facility in Pawnee, CO.

Other 1% Commodity Exposed 1% Volumetric Fee 3% Firm Fee 95%

• 3 FERC-regulated natural gas transportation & storage systems totaling

>6,800 miles of pipe

• REX Pipeline: ~4.4 Bcf/d long haul capacity
• TIGT and Trailblazer: ~2.0 Bcf/d of transportation and ~16 Bcf of storage

design capacity

• 824-mile FERC-regulated crude oil pipeline system with ~320 kbbls/d of

design capacity, expanding to ~400 kbbls/d of capacity by year end 2018 with minimal capital investment

• Gathering and Processing: ~1,500 miles of natural gas gathering and ~190

MMcf/d of processing capacity

• Water services: Fresh water transportation, recycling, and/or salt water

gathering and disposal systems across 5 active basins

• Terminalling: 5 terminals serving the Pony Express Crude Oil System

Represents % of PF Q2 2018 Consolidated EBITDA by segment

(2) (3) (1)

(75% Ownership)

NYSE: TGE │ www.tallgrassenergy.com 5

Key Investment Highlights

Tallgrass Energy is a core midstream infrastructure company with a solid platform providing a unique combination of both stability and growth Simple organizational structure, taxed as a C-corp Stable cash flows, backed by long-term, fee-based, firm commitments

1 2

History of investment in high return midstream infrastructure projects

3

Conservative financial profile

4

 1 public company with no IDR burden  1099 instead of K-1  98% of TEP’s 2017 EBITDA was fee based  95% was from firm fee commitments  ~$2.9bn invested in core midstream assets from 2013 - 2017 at an average multiple of ~5.1x  Additional ~$630mm of projects completed or under construction in 2018(1)

(1) Projects under construction expect to have capital spend in 2018 and 2019. See slide 12 for details. (2) Pro forma as of Q2 2018 in accordance with TGE’s credit facilities.

 Debt / EBITDA of 2.7x(2) or proportionally consolidated (REX) financial leverage of ~4.2x  Dividend coverage ratio of 1.18x

NYSE: TGE │ www.tallgrassenergy.com 6

Simplified Tallgrass Structure

Tallgrass Energy has reduced complexity, eliminated IDRs and fully aligned investors’ interests

(1) As of September 20, 2018.

End of Year 2017

Management, EMG and Kelso TEGP Public Investors Tallgrass Energy GP, LP (NYSE: TEGP) Tallgrass Equity, LLC Tallgrass Energy Partners, LP (NYSE: TEP) Operating Subsidiaries TEP Public Investors

~58.1mm Class A Shares (~37% interest) ~99.2mm Class B Shares (~63% non-economic interest) ~99.2mm units (~63% economic interest) ~20mm LP Units (~27% LP interest), ~1.1% GP interest, IDRs ~47.6mm LP Units (~65% LP interest) ~58.1mm units (~37% economic interest)

Pony

~5.6mm LP Units (~8% LP interest)

2%

Current

Management, EMG and Kelso Tallgrass Equity, LLC Operating Subsidiaries

~124.8mm Class B Shares (~45% non-economic interest) ~124.8mm units (~45% economic interest) ~155.4mm units (~55% economic interest)

TGE Public Investors

~155.4mm Class A Shares (~55% interest)

Tallgrass Energy Partners, LP

100% interest

Tallgrass Energy, LP (NYSE: TGE)

Tallgrass Development, LP REX

25.01%

(1)

NYSE: TGE │ www.tallgrassenergy.com 7

Benefits of Simplification

 Tallgrass Energy has moved from 2 public companies to 1  Full alignment among all equity owners  1099 Dividends (expect less than 10% taxable)

Reduced Complexity Increased Alignment Reduced Cost

• f Capital

Increased Equity Market Depth

 Elimination of IDRs provides immediate cost of capital improvement, enhancing the ability to grow through large projects and/or acquisitions  Increased scale and reduced complexity could potentially improve Tallgrass’s credit rating, which would reduce cost of debt (recent positive watch from S&P and Investment Grade rating from Fitch)  No cash federal taxes expected at TGE for at least 10 years  TGE is a partnership taxed as a C-corp (1099 instead of K1)  Larger pro forma market capitalization has increased liquidity and will likely appeal to a broader group of investors  Will make future equity raises (if any) more efficient and cost effective

Simplified structure better positions Tallgrass Energy for long-term success

NYSE: TGE │ www.tallgrassenergy.com 8

Illustration of Cost of Capital Improvement

Reduced Cost of Capital greatly increases the accretion to equity holders

1.8% 7.0%

0.0% 2.0% 4.0% 6.0% 8.0%

11.0x

Previous LP/GP Structure Current Structure

64% 36%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% LP GP

 LP / GP Structure distributed >35% of all cash flow to the GP  With no GP burden, CAD / share grows substantially faster from growth projects and acquisitions

Distributions to LP / GP (1) Accretion from Growth Projects / Acquisitions(2)

(1) Based on TEP’s Q4 2017 distribution per common unit. (2) Assumes a hypothetical $1.0 Bn growth project / acquisition at a 7.0x EBITDA multiple, financed 50% equity, 50% debt. Debt cost of 5.5%. Equity cost based on 6/29/2018 TEP and TGE (formerly TEGP) closing prices.

Eliminating the GP Burden…

Previous Current

…Enhances Equity Value

NYSE: TGE │ www.tallgrassenergy.com 9

Tallgrass Energy’s Next Chapter

First Chapter – High Growth

Tallgrass is beginning the next chapter of its story

Develop a platform of core midstream infrastructure, poised for long-term success

 Corporate Level ▪ Drop down story highlights growth ▪ LP / GP structure ▪ Selective M&A  Operations / Asset Level ▪ Build Pony ▪ Connect Rockies Express to Appalachian supply ▪ Stay within the footprint

Next Chapter – Measured Growth

Build off of that platform to enhance long-term value for all shareholders

 Corporate Level ▪ Simplified organizational structure with no IDRs ▪ Organic growth projects ▪ Additional strategic M&A  Operations / Asset Level ▪ Continue asset enhancement projects ▪ Develop additional core infrastructure ▪ Expand into new basins / markets

NYSE: TGE │ www.tallgrassenergy.com

Tallgrass Energy Key Accomplishments

10

Drop Down Acquisition Other Project Financing

2015 2016 2013 2014

Contract REX’s Seneca Lateral 20% interest in Cushing Terminal Acquisition Pony Northeast Colorado Lateral Open Season Contract Trailblazer’s Redtail Lateral TEP IPO TMID Casper Expansion TMID Douglas Expansion TIGT West End Expansion TMID Keep Whole Contract Conversion REX Refinances Notes File REX PDO For Zone 3 East-to-West Transportation REX Repays $450mm 2015 Notes Seneca Lateral Achieves Full Capacity REX Zone 3 E2W Project placed into service REX Settles with final MFN Shipper 33.3% Pony Acquisition ~$570mm TEP follow-on Equity Offering TEGP IPO Pony Expansion Project placed into service Whiting Water Business Acquisition TMID Redtail NGL Pipeline placed into service 3rd Party Acquisition BNN Water Business Acquisition Trailblazer Acquisition ~$330mm TEP follow-on Equity Offering 33.3% Pony Acquisition Commence ATM Equity Program REX Signs E2W PAs REX Settles with 3 MFN Shippers REX Signs Capacity Enhancement PAs TMID POP Contract Conversion Pony placed into service Settle Trailblazer Rate Case Sterling Terminal Constructed Financing Terminals and NatGas Operator Acquisition REX reaches settlement with Ultra REX Capacity Enhancement placed into service 24.99% REX Acquisition Successful Open Seasons for Cheyenne Connector & Cheyenne Hub PRB Gas Gathering System Acquisition PRB & DJ Water Asset Acquisitions North Sterling Water Pipeline placed into service PRB Oil Gathering System Acquisition Successful Platteville Extension Open Seasons Announced new Pony Refinery & Supply Connections Acquired additional 49% interest in Deeprock Development $350mm & $500mm TEP Senior Notes Offerings 31.3% Pony Acquisition TEP increases Revolver to $1.75bn 25.0% REX Acquisition from Sempra REX modifies Encana contract $400mm TEP Senior Notes Offering Buckingham Terminal Constructed REX Capacity Enhancement Project Fully Contracted Settle TIGT Rate Case

2017

PXP modifies CLR contract Announced Iron Horse Pipeline JV and Sale of PRB Oil Gathering System Acquired 51% interest in Pawnee Terminal Acquired 38% interest in Deeprock North Cushing Terminal Buckhorn Bakken Water Acquisition 25.01% REX Acquisition REX Repays $550mm 2018 Notes TGE/TEP Merger 2% Pony Acquisition REX Upgraded to Investment Grade Credit by S&P TEP Revolver upsize and repricing TEP and REX Issued Investment Grade Credit Ratings by Fitch $500mm TEP Senior Notes Offering

2018

NYSE: TGE │ www.tallgrassenergy.com

2013-2017 Current Subtotal Invested Capital $2,896 $628 $3,524 (÷) Growth EBITDA 566 106 672 Multiple on Invested Capital 5.1x 5.9x 5.2x

11

Consistent Infrastructure Investment

Tallgrass has made significant investments over the last 5 years to build a platform of core midstream infrastructure

$446 $875 $428 $701 $446

$2,896

$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $0 $250 $500 $750 $1,000 $1,250 2013 2014 2015 2016 2017

Tallgrass Energy EBITDA(1) Tallgrass Energy Invested Capital

Growth Capex 3rd Party Acquisitions

All $ in millions (1) Adjusted EBITDA amounts include Deficiency Payments. (2) Excludes $150mm Ultra settlement payment to REX. (3) See slide 12 for additional details.

$231 $292 $580 $709 $797 $0 $100 $200 $300 $400 $500 $600 $700 $800 2013 2014 2015 2016 2017 (2) Cumulative Investment

Capital Investment Summary

(3)

NYSE: TGE │ www.tallgrassenergy.com

Project / Asset Segment Type Description Cheyenne Connector Natural Gas New Build ~70-mile natural gas pipeline in the DJ Basin Cheyenne Hub Natural Gas New Build Compression and associated facilites to enhace the REX Cheyenne Hub Iron Horse Crude Oil New Build ~80-mile crude oil pipeline in the PRB Grasslands Terminal Terminals New Build New terminal in Platteville, CO serving as a Pony receipt point Guernsey Terminal Terminals New Build New terminal in Guernsey, WY serving as a Pony receipt point Gathering and Processing Infrastructure G&P New Build New gathering pipeline and compression in the PRB Water Infrastructure Water New Build Additional pipeline and water disposal facilities in the Bakken, DJ, and PRB Under Construction Platteville Extension Crude Oil New Build ~60-mile crude oil pipeline extension of the Pony system Pawnee Terminal Terminals Acquisition Acquisition of a 51% interest in the Pawnee, CO Terminal Natoma Terminal Terminals New Build New Terminal in Natoma, KS serving as a Pony Receipt point Buckhorn Water Disposal Water Acquistion / New Build Acquisition and buildout of water pipelines and disposal facilities in the Bakken Water Infrastructure Water New Build Additional pipeline and water disposal facilities in the Bakken, DJ, and PRB Placed In-Service 1H 2018 (in Millions)

Total Capital Investment $628 Total EBITDA $106

12

Active Growth Projects

Large inventory of growth projects recently completed or under construction

 Large number of small to mid-size investment opportunities connected to Tallgrass’s existing asset base  Provide solid standalone economics and also serve to enhance the services offered on other Tallgrass assets

(1) (1)

(1) (1) All $ in millions (1) Net to Tallgrass, assuming 3rd parties exercise applicable JV options.

NYSE: TGE │ www.tallgrassenergy.com 13

Stable Dividend with Room for Growth

– $250 $500 $750 $1,000 $1,250

75% REX Distributions Other Assets(1) Pony

Q2 2018 Annualized Illustrative 2020

EBITDA

Additional Growth Projects

Financial Flexibility

Current Dividends, Interest Expense and Maintenance Capital(4)

All $ in millions (1) Other Assets includes TIGT, Trailblazer, Tallgrass Midstream, Tallgrass Terminals, and BNN. 2020 figures assume these assets produce 2020 EBITDA equal to Q2 2018 annualized figures. (2) Growth Projects only includes cash flow for projects currently under construction or recently placed into service. See slide 12 for a detailed list. (3) See slide 14 for hypothetical recontracting assumptions to attain REX’s 100% EBITDA figure. (4) TGE Q2 2018 declared dividend per share and Q2 2018 interest expense annualized, plus annual interest expense associated with the Q3 2018 REX debt repayment, plus 2018 forecasted maintenance capital as disclosed in TGE’s Q2 2018 10-Q. (5) TGE Q2 2018 Cash Available for Dividends ($0.59/share) and declared dividend ($0.4975/share) annualized.

Other Assets(1)

REX @ $500mm EBITDA

(Currently Contracted)

Growth Projects(2)

REX @ $600mm EBITDA(3) Pony @ $150mm EBITDA Pony @ $250mm EBITDA Pony @ $300mm EBITDA

REX @ $650mm EBITDA(3)

Draconian Street recontracting assumption – still achieves dividend coverage

2020 REX amounts represent 75% distributions based on noted EBITDA

~$2.68 $2.36 Cash Available for Dividend per Share $1.99 Current Annualized Dividend

Financial Flexibility:

• Internally funded

growth

• Debt reduction
• Dividend growth
• Share

repurchases

(5) (5) (5) (3)

EBITDA

NYSE: TGE │ www.tallgrassenergy.com 100% TGE (75%) REX Currently Contracted EBITDA $500 (–) Interest Expense (127) (–) Maintenance Capital (15) REX Currently Contracted DCF $358 $268 Case 1 Case 2 Currently Contracted DCF $358 $358 (+) Assumed Recontracting Cash Flow 100 150 Total REX DCF (100%) $458 $508 TGE (75%) $343 $381 REX EBITDA $600 $650 14

Securing Visible REX Cash Flow

REX currently is expected to have ~$500mm of contracted EBITDA in 2020

 East End ▪ ~2.7 Bcf/d of East End volume contracted long-term ▪ Evaluating additional expansion opportunities  West End ▪ ~0.7 Bcf/d of West End volume contracted long-term ▪ Discussing post-2019 contracting with multiple parties across multiple basins

REX 2020 Projected EBITDA REX West End Recontracting

 Incremental revenue from West End recontracting:

(1) All $ in millions (1) For illustrative purposes, assumes no additional debt is reduced at REX.

Volume (MMcf/d) Currently Contracted 706 (+) Assumed Recontracting: 1,094 Total 1,800 $/Mcf 100% Incremental REX CF $0.250 $100 0.300 120 Average 0.375 150 Recontracting 0.400 160 Rate 0.500 200 0.600 240 0.700 280 0.800 319

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Growing Crude Volumes in Pony’s Footprint

15  Pony is connected directly to three of the fastest growing crude oil production basins in the country  600 - 1,500 kbbls/d growth expected across the basins in the next 5 years  Expansion capacity available to meet growing production

Crude Oil Footprint Production Growth(1)

– 500 1,000 1,500 2,000 2,500

Bakken

2017 2022

kbbls/d

• Approx. Pipeline Capacity + Local Refiner Demand

Production

(3) (3) (2) (2) (2)(3)

DJ

kbbls/d

2017 2022 – 250 500 750 1,000 – 100 200 300 400 500

kbbls/d

PRB

2017 2022 – 500 1,000 1,500 2,000 2,500 3,000 3,500

kbbls/d

Combined

2017 2022

(4)

(1) Production data is based on internal Tallgrass estimates. (2) Under construction. (3) Tallgrass owns a 75% interest in Iron Horse, a 51% interest in Pawnee, and a ~60% interest in the Cushing Terminal. (4) Bakken pipeline capacity includes a ~100 kbbls/d Dakota Access Pipeline Expansion project.

NYSE: TGE │ www.tallgrassenergy.com 16

Seahorse Pipeline Project

Tallgrass Energy is developing a new batch-capable, crude oil pipeline from Cushing, Oklahoma to the Gulf Coast

Project Design

 ~700 miles; 30” pipeline  Initial capacity of 400 kbbls/d, expandable to 800 kbbls/d

Destinations



• St. James, Louisiana

▪ Interconnectivity to more than 2.5 million barrels per day of refining capacity  Plaquemines Liquids Terminal (see next page for details)  Potential direct refinery connections Asset Summary Project Highlights  Currently conducting binding open season  Gives producers access to premium St. James and international markets  Provides international refinery markets with access to field production from five separate basins  Provides Pony shippers with access to WTI, LLS and Brent-based markets

NYSE: TGE │ www.tallgrassenergy.com 17

Plaquemines Liquids Terminal Project

Tallgrass Energy is developing the Gulf Coast Plaquemines Liquids Terminal (“PLT”)

Project Design

 Storage capacity of up to 20 million bbls  Ability to load Suezmax (up to one million barrels) and VLCC (up to two million barrels) tankers Asset Summary Project Highlights  Project is developed specifically for large scale export of light shale production  Gives producers access to premium international markets  Provides international refinery markets with access to field production from five separate basins  Provides Pony and Seahorse shippers with access to WTI, LLS and Brent-based markets  Strategic location provides significant logistical efficiencies over competing Gulf Coast ports in Texas and Louisiana

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Appendix

NYSE: TGE │ www.tallgrassenergy.com A-1

Summary of Segments

 824-mile FERC-regulated crude oil pipeline system from Guernsey, WY / NE Colorado to Cushing, OK  Total transportation design capacity of ~320 kbbls/d, expanding to ~400 kbbls/d in 2018, with additional expansion capacity potential  Take or pay contracts for a total of ~300 kbbls/d

Natural Gas Transportation Segment Gathering, Processing and Terminalling Segment Crude Oil Transportation Segment

(1) Tallgrass owns a 75% membership interest in REX.

 Consists of 3 FERC-regulated natural gas transportation & storage systems (REX, TIGT and Trailblazer) ▪ >6,800 miles of pipelines ▪ ~6.6 Bcf/d of transportation design capacity  Access to multiple high-growth basins in the Rockies and Appalachia, and multiple large demand centers across the northern US  REX Pipeline(1) ▪ Placed in service in November 2009 ▪ ~1,712 miles of 42” and 36” pipeline ▪ ~1.8 Bcf/d of West-to-East long-haul capacity ▪ ~2.6 Bcf/d of Zone 3 East-to-West capacity ▪ Contracted capacity supports stable cash flow ▪ Access to substantially all major natural gas supply basins in the Rocky Mountain region, Ohio and Pennsylvania corridors ▪ Favorable proximity to numerous major end-use markets with significant demand load  Processing and treating ▪ ~ 1,500 miles of natural gas gathering pipeline through the core of the Powder River Basin ▪ ~190 MMcf/d of processing capacity in the PRB and Wind River Basin in Wyoming  Water business services ▪ Fresh water transportation and salt water gathering and disposal systems in the DJ Basin ▪ Water disposal and gathering in the Bakken ▪ Water disposal infrastructure in the PRB and Permian ▪ Effluent management operations in the Eagle Ford Shale and Permian  Terminals ▪ 5 terminals serving the Pony Express System ▪ 2 additional terminals under construction

1 3 2

Sizable asset footprint which serves some of the largest, most economic domestic basins

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Natural Gas Transportation

Current Footprint Asset Overview Stable Cash Flow

 ~97% of 2017 segment EBITDA was take-or-pay  REX contracted an additional 105 MMcf/d of East-to-West capacity for 3 - 5 years  REX Cheyenne Hub and Cheyenne Connector filed 7(c) applications with FERC on 3/5/2018. On schedule for late 2019 in-service

Recent Updates

 Consists of 3 FERC-regulated natural gas transportation & storage systems (REX, TIGT, and Trailblazer) ▪ >6,800 miles of pipelines ▪ ~6.6 Bcf/d of transportation design capacity  Access to multiple high-growth basins in the Rockies and Appalachia, and multiple large demand centers across the northern US

Firm Fee 97% Volumetric Fee 1% Other 2%

A-2

(1)

(1) Cheyenne Connector on schedule for late 2019 in-service.

NYSE: TGE │ www.tallgrassenergy.com

Note: Overthrust Pipeline is owned by Dominion and consists of ~255 miles of pipeline. (1) As of 12/31/2017.

Rockies Express Pipeline Overview

 Developed REX into the nation’s northernmost natural gas header system  Attractive access to both supply basins and large end user markets with significant demand load  Currently moving both Rocky Mountain and Appalachian production  Long-term West-end contracts ▪ 706 MMcf/d West-to-East contracted post-2019 at an average rate of $0.673 ▪ Recontracting conversations with current and potential new west-end shippers underway  Cheyenne Hub ▪ Contracted 600 MMcf/d for firm hub service ▪ Discussing expansion opportunities with multiple shippers ▪ Provides DJ basin gas access to REX  East-end Incremental Contracts ▪ Incremental 105 MMcf/d contracted for 3-5 year terms ▪ Brings total contracted capacity on East-end to >2.7 Bcf/d  >95% of the 2019 recontracting cash flow risk has been mitigated, based on FY2013 revenue  97% of 2017 revenue was take or pay  Weighted Average Contract Life(1) ▪ East-to-West Contracts: ~15 years ▪ West-to-East Contracts: ~3 years  Repaid $550mm of debt in July 2018 through partner capital contributions  4.4 Bcf/d nameplate capacity, but have flowed up to 4.9 Bcf/d

Highlights

Provides natural gas transportation service for North American energy markets

Wamsutter Kanda Meeker Opal Cheyenne Lebanon Clarington

Zone 1 Zone 2 Zone 3 “Shale to Shining Shale”

ROCKIES EXPRESS PIPELINE SENECA LATERAL LEASE OF OVERTHRUST CAPACITY REX COMPRESSOR STATION

A-3

>2.6 Bcf/d

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Crude Oil Transportation

Current Footprint Updates and Growth Opportunities Pony System Overview

 824-mile FERC regulated crude oil pipeline system from Guernsey, WY / NE Colorado to Cushing, OK  Total transportation design capacity of ~320 kbbls/d with additional DRA capacity available today  Currently expanding system capacity to ~400 kbbls/d by end of 2018  Take or pay contracts for a total of ~300 kbbls/d

(4) (3) (1) (1)

A-4

(1) (2)

 In May 2018, White Cliffs announced the planned conversion of one of its 12-inch crude oil pipelines to NGL service, removing takeaway capacity from the DJ Basin  Q2 2018 throughput averaged ~348 kbbls/d and Q3 2018 averaged ~340 kbbls/d  Additional expansion capacity available above ~400 kbbls/d for moderate capital expenditures  New demand interconnects in-service ▪ Holly Frontier El Dorado refinery ▪ CHS McPherson refinery  New supply interconnects ▪ Natoma – Access to Kansas production (in-service) ▪ Platteville Extension – Access to additional DJ Basin production (in-service) ▪ Iron Horse Pipeline – Direct access to PRB production (in-service Q1 2019)

(1) Under construction. (2) Tallgrass owns a 75% interest in the Iron Horse Pipeline. (3) Tallgrass Terminals owns a ~60% interest in a joint venture, which owns an oil terminal facility in Cushing, OK. (4) Tallgrass Terminals owns a 51% interest in a joint venture, which owns an oil terminal facility in Pawnee, CO.

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 Current Assets ▪ ~1,500 miles of natural gas gathering pipeline through the core of the PRB ▪ ~190 MMcf/d of processing capacity in the PRB and Wind River Basin in Wyoming  Identified Growth Opportunities ▪ Additional processing capacity in the PRB is permitted ▪ Expansion of Douglas gas gathering system ▪ Ongoing discussions with multiple producers to underwrite expansion projects Gathering and Processing

Gathering & Processing Overview

Tallgrass PRB Footprint

A-5

(1)

(1) Tallgrass owns a 75% interest in the Iron Horse Pipeline.

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BNN Water Solutions Overview

Water Business Services

 Current Assets ▪ Freshwater transportation and saltwater gathering and disposal system in the DJ Basin ▪ Water disposal and gathering in the Bakken ▪ Water disposal infrastructure in the PRB ▪ Water disposal infrastructure in the Permian Basin ▪ Effluent management operations in the Eagle Ford Shale and Permian Basin  Identified Growth Opportunities ▪ Clarkelen (PRB) expansion under construction ▪ Additional PRB disposal facilities ▪ Additional expansion opportunities in the Permian ▪ Continued freshwater expansion in DJ ▪ Additional Bakken acquisitions and/or system expansions

NE DJ Basin Assets SW DJ Basin Assets Bakken Assets

A-6

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Terminals Overview

A-7

 Serves as receipt point for Pony Express’s new Kansas supply sources

Natoma

Terminals currently owns 5 crude oil terminals positioned along the Pony Express system with terminals planned/under construction for the Platteville Extension and at Guernsey for the Iron Horse Pipeline

Buckingham Cushing Sterling Grasslands

Under Construction  ~0.3 million bbl terminal at Platteville to serve Platteville Extension

(1)

Guernsey

Under Construction  ~0.3 million bbl terminal at Guernsey to serve Iron Horse

Pawnee

 Serves as injection point for NECL with ~0.3 million bbls of storage  Consists of a 51% interest in a joint venture, which owns the Pawnee, CO Terminal  Located along Northeast Colorado lateral  4 truck unloading skids ▪ Capable of receiving ~16,000 bbls/d  Expanding to add ~0.3 million bbls of storage to serve Platteville Extension  Located at the point of intersection between Pony Express’s Guernsey and Northeast Colorado Lines  Serves as operational storage for Pony Express  ~1.3 million bbls of storage  Located in Cushing, OK  Consists of ~60% controlling interest in the Deeprock Development Terminal  Offload point for Pony Express  Maintains neat batches of crude  Facilitates delivery into almost every other terminal in Cushing  ~2.3 million bbls of storage

(1)

(3) (2)

(1) Under construction. (2) Tallgrass Terminals owns a ~60% interest in a joint venture, which owns an oil terminal facility in Cushing, OK. (3) Tallgrass Terminals owns a 51% interest in a joint venture, which owns an oil terminal facility in Pawnee, CO.

NYSE: TGE │ www.tallgrassenergy.com A-8

Tallgrass Energy EBITDA Reconciliation

(1) The financial results for all periods presented in the TEP table have been recast to include the applicable results of operations of Trailblazer Pipeline Company LLC, the initial 33.3 percent membership interest in Tallgrass Pony Express Pipeline, LLC (“Pony Express”), Tallgrass Terminals, LLC, and Tallgrass NatGas Operator, LLC. The acquisitions of an additional 33.3 percent and 31.3 percent membership interest in Pony Express effective March 1, 2015, and January 1, 2016, respectively, are presented prospectively from the dates of acquisition, and as a result, financial information for periods prior to March 1, 2015, and January 1, 2016, have not been recast to reflect the additional 33.3 percent and 31.3 percent membership interests. (2) The financial results for the periods presented in the TDEV table include the applicable results of operations of (i) a 50 percent membership interest in Rockies Express Pipeline, LLC (“Rockies Express”) from January 1, 2013 to March 31, 2017 and a 25.01 percent membership interest in Rockies Express from April 1, 2017 to December 31, 2017 and (ii) a 66.6% membership interest in Pony Express from January 1, 2013 to February 28, 2015, a 33.3 percent membership interest in Pony Express from March 1, 2015 to December 31, 2015, and a 2 percent membership interest from January 1, 2016 to December 31, 2017. (3) Represents EBITDA across the Tallgrass Energy Family of Companies.

NYSE: TGE │ www.tallgrassenergy.com A-9

Tallgrass Energy Merger Adjusted Segment EBITDA Reconciliation

Summary Financial Information Three Months Ended June 30, 2018 Natural Gas Transportation (in millions) Operating income 16.9 $ Add: Depreciation and amortization expense 4.9 Distributions from unconsolidated investment 91.8 Other, net 0.7 Merger Adjusted Segment Adjusted EBITDA 114.3 $ Crude Oil Transportation Operating income 65.7 $ Add: Depreciation and amortization expense 13.6 Less: Deficiency payments, net (1.0) Merger Adjusted Segment Adjusted EBITDA 78.3 $ Gathering, Processing & Terminalling Operating income 5.7 $ Add: Depreciation and amortization expense 7.7 Non-cash loss related to derivative instruments 1.5 Loss on disposal of assets 0.3 Distributions from unconsolidated investments 2.4 Deficiency payments, net 0.6 Less: Adjusted EBITDA attributable to noncontrolling interests (1.3) Merger Adjusted Segment Adjusted EBITDA 16.9 $

(1) (2) (1) Includes 75% of REX. (2) Includes 100% of Pony Express. (3) Net of noncontrolling interest in operating assets. (3)