10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2017

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 001-37365

Tallgrass Energy GP, LP

(Exact name of registrant as specified in its charter)

Delaware	46-3159268
(State or other Jurisdiction of Incorporation or Organization)	(IRS Employer Identification Number)
4200 W. 115th Street, Suite 350
Leawood, Kansas	66211
(Address of Principal Executive Offices)	(Zip Code)

(913) 928-6060

(Registrant's Telephone Number, Including Area Code)

 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨ (Do not check if a smaller reporting company)	Smaller reporting company	¨
		Emerging growth company	¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

On May 3, 2017, the Registrant had 58,075,000 Class A shares and 99,154,440 Class B shares outstanding.

TALLGRASS ENERGY GP, LP

TABLE OF CONTENTS

PART 1—FINANCIAL INFORMATION	1
Item 1. Financial Statements	1
CONDENSED CONSOLIDATED BALANCE SHEETS	1
CONDENSED CONSOLIDATED STATEMENTS OF INCOME	2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS	3
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY	4
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	5
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	28
Item 3. Quantitative and Qualitative Disclosures About Market Risk	39
Item 4. Controls and Procedures	41
PART II - OTHER INFORMATION	42
Item 1. Legal Proceedings	42
Item 1A. Risk Factors	42
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	42
Item 3. Defaults Upon Senior Securities	42
Item 4. Mine Safety Disclosures	42
Item 5. Other Information	42
Item 6. Exhibits	42
SIGNATURES	43

Glossary of Common Industry and Measurement Terms

Bakken oil production area: Montana and North Dakota in the United States and Saskatchewan and Manitoba in Canada.

Barrel (or bbl): forty-two U.S. gallons.

Base Gas (or Cushion Gas): the volume of gas that is intended as permanent inventory in a storage reservoir to maintain adequate pressure and deliverability rates.

BBtu: one billion British Thermal Units.

Bcf: one billion cubic feet.

British Thermal Units or Btus: the amount of heat energy needed to raise the temperature of one pound of water by one degree Fahrenheit.

Commodity sensitive contracts or arrangements: contracts or other arrangements, including tariff provisions, that are directly tied to increases and decreases in the price of commodities such as crude oil, natural gas and NGLs. Examples are Keep Whole Processing Contracts and Percent of Proceeds Processing Contracts, as well as pipeline loss allowances on our pipelines.

Condensate: an NGL with a low vapor pressure, mainly composed of propane, butane, pentane and heavier hydrocarbon fractions.

Contract barrels: barrels of crude oil that our customers have contractually agreed to ship in exchange for firm service assurance of capacity and deliverability to delivery points.

Delivery point: any point at which product in a pipeline is delivered to or for the account of a customer.

Dry gas: a gas primarily composed of methane and ethane where heavy hydrocarbons and water either do not exist or have been removed through processing.

Dth: a dekatherm, which is a unit of energy equal to 10 therms or one million British thermal units.

End-user markets: the ultimate users and consumers of transported energy products.

EPA: the United States Environmental Protection Agency.

FERC: Federal Energy Regulatory Commission.

Firm fee contracts: contracts or other arrangements, including tariff provisions, that generally obligate our customers to pay a fixed recurring charge to reserve an agreed upon amount of capacity and/or deliverability on our assets, regardless if the contracted capacity is actually used by the customer. Such contracts are also commonly known as "take-or-pay" contracts.

Firm services: services pursuant to which customers receive firm assurances regarding the availability of capacity and/or deliverability of natural gas, crude oil or other hydrocarbons or water on our assets up to a contracted amount.

Fractionation: the process by which NGLs are further separated into individual, typically more valuable components including ethane, propane, butane, isobutane and natural gasoline.

GAAP: generally accepted accounting principles in the United States of America.

GHGs: greenhouse gases.

Header system: networks of medium-to-large-diameter high pressure pipelines that connect local gathering systems to large diameter high pressure long-haul transportation pipelines.

Interruptible services: services pursuant to which customers receive limited, or no, assurances regarding the availability of capacity and deliverability in our assets.

Keep Whole Processing Contracts: natural gas processing contracts in which we are required to replace the Btu content of the NGLs extracted from inlet wet gas processed with purchased dry natural gas.

Line fill: the volume of oil, in barrels, in the pipeline from the origin to the destination.

Liquefied natural gas or LNG: natural gas that has been cooled to minus 161 degrees Celsius for transportation, typically by ship. The cooling process reduces the volume of natural gas by 600 times.

Local distribution company or LDC: LDCs are involved in the delivery of natural gas to end users within a specific geographic area.

Long-term: with respect to any contract, a contract with an initial duration greater than one year.

MMBtu: one million British Thermal Units.

Mcf: one thousand cubic feet.

MDth: one thousand dekatherms.

MMcf: one million cubic feet.

Natural gas liquids or NGLs: those hydrocarbons in natural gas that are separated from the natural gas as liquids through the process of absorption, condensation, adsorption or other methods in natural gas processing or cycling plants. Generally, such liquids consist of propane and heavier hydrocarbons and are commonly referred to as lease condensate, natural gasoline and liquefied petroleum gases. Natural gas liquids include natural gas plant liquids (primarily ethane, propane, butane and isobutane) and lease condensate (primarily pentanes produced from natural gas at lease separators and field facilities).

Natural Gas Processing: the separation of natural gas into pipeline-quality natural gas and a mixed NGL stream.

Non-contract barrels (or walk-up barrels): barrels of crude oil that our customers ship based solely on availability of capacity and deliverability with no assurance of future capacity.

No-notice service: those services pursuant to which customers receive the right to transport or store natural gas on assets outside of the daily nomination cycle without incurring penalties.

NYMEX: New York Mercantile Exchange.

Park and loan services: those services pursuant to which customers receive the right to store natural gas in (park), or borrow gas from (loan), our facilities.

Percent of Proceeds Processing Contracts: natural gas processing contracts in which we process our customer's natural gas, sell the resulting NGLs and residue gas and divide the proceeds of those sales between us and the customer. Some percent of proceeds contracts may also require our customers to pay a monthly reservation fee for processing capacity.

PHMSA: the United States Department of Transportation's Pipeline and Hazardous Materials Safety Administration.

Play: a proven geological formation that contains commercial amounts of hydrocarbons.

Produced water: all water removed from a well as a byproduct of the production of hydrocarbons and water removed from a well in connection with operations being conducted on the well, including naturally occurring water in the recovery formation, flow back water recovered during completion and fracturing operations and water entering the recovery formation through water flooding techniques.

Receipt point: the point where a product is received by or into a gathering system, processing facility, or transportation pipeline.

Reservoir: a porous and permeable underground formation containing an individual and separate natural accumulation of producible hydrocarbons (such as crude oil and/or natural gas) which is confined by impermeable rock or water barriers and is characterized by a single natural pressure system.

Residue gas: the natural gas remaining after being processed or treated.

Shale gas: natural gas produced from organic (black) shale formations.

Tailgate: the point at which processed natural gas and NGLs leave a processing facility for transportation to end-user markets.

TBtu: one trillion British Thermal Units.

Tcf: one trillion cubic feet.

Throughput: the volume of products, such as crude oil, natural gas or water, transported or passing through a pipeline, plant, terminal or other facility during a particular period.

Uncommitted shippers (or walk-up shippers): customers that have not signed long-term shipper contracts and have rights under the FERC tariff as to rates and capacity allocation that are different than long-term committed shippers.

Volumetric fee contracts: contracts or other arrangements, including tariff provisions, that generally obligate a customer to pay fees based upon the extent to which such customer utilizes our assets for midstream energy services. Unlike firm fee contracts, under volumetric fee contracts our customers are not generally required to pay a charge to reserve an agreed upon amount of capacity and/or deliverability.

Wellhead: the equipment at the surface of a well that is used to control the well's pressure; also, the point at which the hydrocarbons and water exit the ground.

Working gas: the volume of gas in the storage reservoir that is in addition to the cushion or base gas. It may or may not be completely withdrawn during any particular withdrawal season. Conditions permitting, the total working capacity could be used more than once during any season.

Working gas storage capacity: the maximum volume of natural gas that can be cost-effectively injected into a storage facility and extracted during the normal operation of the storage facility. Effective working gas storage capacity excludes base gas and non-cycling working gas.

X/d: the applicable measurement metric per day. For example, MMcf/d means one million cubic feet per day.

PART 1—FINANCIAL INFORMATION

Item 1. Financial Statements

TALLGRASS ENERGY GP, LP

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	March 31, 2017		December 31, 2016
	(in thousands)
ASSETS
Current Assets:
Cash and cash equivalents	$	2,053	$	2,459
Accounts receivable, net	57,274		59,536
Gas imbalances	636		1,597
Inventories	15,647		13,093
Derivative assets at fair value	304		10,967
Prepayments and other current assets	6,785		7,628
Total Current Assets	82,699		95,280
Property, plant and equipment, net	2,085,670		2,079,232
Goodwill	343,288		343,288
Intangible asset, net	92,764		93,522
Unconsolidated investments	935,918		475,625
Deferred tax asset	518,790		521,454
Deferred financing costs, net	5,039		6,042
Deferred charges and other assets	9,242		11,037
Total Assets	$	4,073,410	$	3,625,480
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable	$	22,050	$	24,449
Accounts payable to related parties	6,067		5,824
Gas imbalances	1,473		1,239
Derivative liabilities at fair value	—		556
Accrued taxes	21,857		16,996
Accrued liabilities	6,796		16,755
Deferred revenue	77,067		60,757
Other current liabilities	6,001		6,446
Total Current Liabilities	141,311		133,022
Long-term debt, net	2,108,232		1,555,981
Other long-term liabilities and deferred credits	7,125		7,063
Total Long-term Liabilities	2,115,357		1,563,044
Commitments and Contingencies
Equity:
Class A Shareholders (58,075,000 shares outstanding at March 31, 2017 and December 31, 2016)	244,610		250,967
Class B Shareholders (99,154,440 shares outstanding at March 31, 2017 and December 31, 2016)	—		—
Predecessor Equity	—		82,295
Total Partners' Equity	244,610		333,262
Noncontrolling interests	1,572,132		1,596,152
Total Equity	1,816,742		1,929,414
Total Liabilities and Equity	$	4,073,410	$	3,625,480

The accompanying notes are an integral part of these condensed consolidated financial statements.

1

TALLGRASS ENERGY GP, LP

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

	Three Months Ended March 31,
	2017			2016
	(in thousands, except per share amounts)
Revenues:
Crude oil transportation services	$	84,331		$	94,572
Natural gas transportation services	31,685			29,280
Sales of natural gas, NGLs, and crude oil	15,381			13,926
Processing and other revenues	13,003			9,390
Total Revenues	144,400			147,168
Operating Costs and Expenses:
Cost of sales (exclusive of depreciation and amortization shown below)	12,370			13,568
Cost of transportation services (exclusive of depreciation and amortization shown below)	13,503			13,529
Operations and maintenance	12,903			12,958
Depreciation and amortization	21,403			22,007
General and administrative	14,217			14,011
Taxes, other than income taxes	8,226			7,650
Gain on disposal of assets	(1,448		)	—
Total Operating Costs and Expenses	81,174			83,723
Operating Income	63,226			63,445
Other Income (Expense):
Interest expense, net	(16,017		)	(8,677		)
Unrealized gain (loss) on derivative instrument	1,885			(8,946		)
Equity in earnings of unconsolidated investments	20,738			709
Other income, net	70			566
Total Other Income (Expense)	6,676			(16,348		)
Net income before tax	69,902			47,097
Deferred income tax expense	(2,664		)	(2,791		)
Net income	67,238			44,306
Net income attributable to noncontrolling interests	(55,209		)	(33,032		)
Net income attributable to TEGP	$	12,029		$	11,274
Allocation of income:
Net income attributable to TEGP	$	12,029		$	11,274
Predecessor operations interest in net income	—			(3,685		)
Net income attributable to TEGP, excluding predecessor operations interest	12,029			7,589
Basic net income per Class A share	$	0.21		$	0.16
Diluted net income per Class A share	$	0.21		$	0.16
Basic average number of Class A shares outstanding	58,075			47,725
Diluted average number of Class A shares outstanding	58,165			47,725

The accompanying notes are an integral part of these condensed consolidated financial statements.

2

TALLGRASS ENERGY GP, LP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Three Months Ended March 31,
	2017		2016
	(in thousands)
Cash Flows from Operating Activities:
Net income	67,238		44,306
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization	23,694		23,473
Equity in earnings of unconsolidated investments	(20,738	)	(709	)
Distributions from unconsolidated investments	20,740		634
Deferred income tax expense	2,664		2,791
Noncash change in the fair value of derivative financial instruments	(2,454	)	8,990
Changes in components of working capital:
Accounts receivable and other	2,449		6,077
Accounts payable and accrued liabilities	(6,055	)	(2,225	)
Deferred revenue	16,202		7,204
Other current assets and liabilities	(819	)	10
Other operating, net	(755	)	1,144
Net Cash Provided by Operating Activities	102,166		91,695
Cash Flows from Investing Activities:
Acquisition of Rockies Express membership interest	(400,000	)	—
Acquisition of Terminals and NatGas	(140,000	)	—
Capital expenditures	(26,769	)	(21,207	)
Distributions from unconsolidated investments in excess of cumulative earnings	10,079		—
Contributions to unconsolidated investments	(6,693	)	(63	)
Acquisition of Pony Express membership interest	—		(49,118	)
Other investing, net	1,341		25
Net Cash Used in Investing Activities	(562,042	)	(70,363	)
Cash Flows from Financing Activities:
Borrowings under revolving credit facilities, net	552,000		447,000
Proceeds from public offering of TEP common units, net of offering costs	99,373		12,636
Partial exercise of call option	(72,381	)	—
Distributions to noncontrolling interests	(71,426	)	(50,919	)
Repurchase of TEP common units from TD	(35,335	)	—
TEGP distributions to Class A shareholders	(16,116	)	(8,256	)
Acquisition of Pony Express membership interest	—		(425,882	)
Other financing, net	3,355		5,654
Net Cash Provided by (Used in) Financing Activities	459,470		(19,767	)
Net Change in Cash and Cash Equivalents	(406	)	1,565
Cash and Cash Equivalents, beginning of period	2,459		2,234
Cash and Cash Equivalents, end of period	2,053		3,799

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

TALLGRASS ENERGY GP, LP

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(UNAUDITED)

	Predecessor Equity			Partners' Capital					Noncontrolling Interests			Total Equity
				Class A Shares			Class B Shares
	(in thousands)
Balance at January 1, 2017	$	82,295		$	250,967		$	—	$	1,596,152		$	1,929,414
Net income	—			12,029			—		55,209			67,238
Issuance of TEP units to public, net of offering costs	—			10,020			—		89,353			99,373
TEGP distributions to Class A shareholders	—			(16,116		)	—		—			(16,116		)
Noncash compensation expense	—			362			—		1,882			2,244
Issuance of common units under TEP LTIP plan	—			(40		)	—		(360		)	(400		)
Partial exercise of call option	—			(12,052		)	—		(72,890		)	(84,942		)
Repurchase of TEP common units from TD	—			(3,618		)	—		(31,717		)	(35,335		)
Acquisition of Terminals and NatGas	(82,295		)	(21,314		)	—		(36,391		)	(140,000		)
Acquisition of additional 24.99% membership interest in Rockies Express	—			23,522			—		40,159			63,681
Contributions from TD	—			850			—		1,451			2,301
Contributions from noncontrolling interest	—			—			—		710			710
Distributions to noncontrolling interest	—			—			—		(71,426		)	(71,426		)
Balance at March 31, 2017	$	—		$	244,610		$	—	$	1,572,132		$	1,816,742
	Predecessor Equity			Partners' Capital					Noncontrolling Interests			Total Equity
				Class A Shares			Class B Shares
	(in thousands)
Balance at January 1, 2016	$	71,564		$	422,310		$	—	$	1,599,188		$	2,093,062
Net income	3,685			7,589			—		33,032			44,306
Issuance of TEP units to the public, net of offering costs	—			1,146			—		11,490			12,636
TEGP distributions to Class A Shareholders	—			(8,256		)	—		—			(8,256		)
Noncash compensation expense	—			295			—		1,869			2,164
Acquisition of additional 31.3% Pony Express membership interest	—			(255,617		)	—		(173,422		)	(429,039		)
Contributions from noncontrolling interest	—			—			—		7,152			7,152
Distributions to noncontrolling interest	—			—			—		(50,919		)	(50,919		)
Distributions to Predecessor Entities, net	(693		)	—			—		—			(693		)
Balance at March 31, 2016	$	74,556		$	167,467		$	—	$	1,428,390		$	1,670,413

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

TALLGRASS ENERGY GP, LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

1. Description of Business

Tallgrass Energy GP, LP ("TEGP" or the "Partnership") is a limited partnership that has elected to be treated as a corporation for U.S. federal income tax purposes. "We," "us," "our" and similar terms refer to TEGP together with its consolidated subsidiaries. TEGP's sole cash-generating asset as of March 31, 2017 is an approximate 36.94% controlling membership interest in Tallgrass Equity. Tallgrass Equity's sole cash-generating assets consist of direct and indirect partnership interests in Tallgrass Energy Partners, LP ("TEP"), as described below, that were historically owned by entities controlled by Tallgrass Equity, including Tallgrass Development, LP ("TD"):

• 100% of the outstanding membership interests in Tallgrass MLP GP, LLC ("TEP GP"), which owns the general partner interest in TEP as well as all of the TEP incentive distribution rights ("IDRs"). The general partner interest in TEP is represented by 834,391 general partner units, representing an approximate 1.14% general partner interest in TEP at March 31, 2017.

• 20,000,000 TEP common units, representing an approximate 27.39% limited partner interest in TEP at March 31, 2017.

TEP is a publicly traded, growth-oriented limited partnership formed to own, operate, acquire and develop midstream energy assets in North America. TEP's operations are located in and provide services to certain key United States hydrocarbon basins, including the Denver-Julesburg, Powder River, Wind River, Permian and Hugoton-Anadarko Basins and the Niobrara, Mississippi Lime, Eagle Ford, Bakken, Marcellus, and Utica shale formations.

Our reportable business segments are:

• Crude Oil Transportation & Logistics—the ownership and operation of a FERC-regulated crude oil pipeline system and crude oil storage and terminalling facilities;

• Natural Gas Transportation & Logistics—the ownership and operation of FERC-regulated interstate natural gas pipelines and integrated natural gas storage facilities; and

• Processing & Logistics—the ownership and operation of natural gas processing, treating and fractionation facilities, the provision of water business services primarily to the oil and gas exploration and production industry and the transportation of NGLs.

Crude Oil Transportation & Logistics. TEP currently provides crude oil transportation to customers in Wyoming, Colorado, and the surrounding regions through Tallgrass Pony Express Pipeline, LLC ("Pony Express"), which owns a FERC-regulated crude oil pipeline commencing in Guernsey, Wyoming and terminating in Cushing, Oklahoma, which includes a lateral in Northeast Colorado commencing in Weld County, Colorado, and interconnecting with the pipeline just east of Sterling, Colorado (the "Pony Express System"). TEP also provides crude oil storage and terminalling services through TEP's 100% membership interest in Tallgrass Terminals, LLC ("Terminals") acquired effective January 1, 2017, which owns and operates crude oil terminals near Sterling, Colorado (the "Sterling Terminal") and in Weld County, Colorado (the "Buckingham Terminal"). Terminals also owns a 20% membership interest in Deeprock Development, LLC ("Deeprock Development"), which owns a crude oil terminal in Cushing, Oklahoma (the "Cushing Terminal").

Natural Gas Transportation & Logistics. TEP provides natural gas transportation and storage services for customers in the Rocky Mountain, Midwest and Appalachian regions of the United States through: (1) its 49.99% membership interest in Rockies Express Pipeline LLC ("Rockies Express"), which owns the Rockies Express Pipeline, a FERC-regulated natural gas pipeline system extending from Opal, Wyoming and Meeker, Colorado to Clarington, Ohio (the "Rockies Express Pipeline"), which includes the additional 24.99% membership interest acquired from TD effective March 31, 2017 as discussed in  Note 4 – Acquisitions, and TEP's 100% membership interest in Tallgrass NatGas Operator, LLC ("NatGas") acquired effective January 1, 2017, which operates the Rockies Express Pipeline, (2) the Tallgrass Interstate Gas Transmission system, a FERC-regulated natural gas transportation and storage system located in Colorado, Kansas, Missouri, Nebraska and Wyoming (the "TIGT System"), and (3) the Trailblazer Pipeline system, a FERC-regulated natural gas pipeline system extending from the Colorado and Wyoming border to Beatrice, Nebraska (the "Trailblazer Pipeline").

Processing & Logistics. TEP also provides services for customers in Wyoming at the Casper and Douglas natural gas processing facilities and the West Frenchie Draw natural gas treating facility (collectively, the "Midstream Facilities"), and NGL transportation services in Northeast Colorado and Wyoming. TEP performs water business services, including freshwater transportation and produced water gathering and disposal, in Colorado and Texas through BNN Water Solutions, LLC ("Water Solutions").

5

The term "Terminals Predecessor" refers to Terminals and the term "NatGas Predecessor" refers to NatGas prior to their acquisition by TEP on January 1, 2017. Terminals Predecessor and NatGas Predecessor are collectively referred to as the Predecessor Entities, as further discussed in Note 2 – Summary of Significant Accounting Policies. Financial results for all prior periods have been recast to reflect the operations of the Predecessor Entities. Predecessor Equity as presented in the condensed consolidated financial statements represents the capital account activity of Terminals Predecessor and NatGas Predecessor prior to January 1, 2017. For additional information regarding these acquisitions, see Note 4 – Acquisitions.

2. Summary of Significant Accounting Policies

Basis of Presentation

These condensed consolidated financial statements and related notes for the three months ended March 31, 2017 and 2016 were prepared in accordance with the accounting principles contained in the Financial Accounting Standards Board's Accounting Standards Codification, the single source of generally accepted accounting principles in the United States of America ("GAAP") for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The year-end balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP for annual periods. The condensed consolidated financial statements for the three months ended March 31, 2017 and 2016 include all normal, recurring adjustments and disclosures that we believe are necessary for a fair statement of the results for the interim periods. In this report, the Financial Accounting Standards Board is referred to as the FASB and the FASB Accounting Standards Codification is referred to as the Codification or ASC. Certain prior period amounts have been reclassified to conform to the current presentation.

Our financial results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2017. The accompanying condensed consolidated interim financial statements should be read in conjunction with our audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016 ("2016 Form 10-K") filed with the United States Securities and Exchange Commission (the "SEC") on February 15, 2017.

The condensed consolidated financial statements include the accounts of TEGP and its subsidiaries and controlled affiliates. Significant intra-entity items have been eliminated in the presentation. Net income or loss from consolidated subsidiaries that are not wholly-owned by TEGP is attributed to TEGP and noncontrolling interests in accordance with the respective ownership interests.

As further discussed in Note 4 – Acquisitions, TEP closed the acquisition of Terminals and NatGas on January 1, 2017. As the acquisitions of Terminals and NatGas are considered transactions between entities under common control, and a change in reporting entity, the financial information presented has been recast to include Terminals and NatGas for all periods presented. Net equity distributions of the Predecessor Entities included in the condensed consolidated financial statements represent transfers of cash as a result of TD's centralized cash management system prior to January 1, 2017 for Terminals and NatGas, under which cash balances were swept daily and recorded as loans from the subsidiaries of TD. These loans were then periodically recorded as equity distributions.

The accompanying condensed consolidated financial statements of TEGP include historical cost-basis accounts of the assets and liabilities of the Predecessor Entities for the periods prior to January 1, 2017, the date TEP acquired Terminals and NatGas from TD, and include charges from TD for direct costs and allocations of indirect corporate overhead. Management believes that the allocation methods are reasonable, and that the allocations are representative of costs that would have been incurred on a stand-alone basis. TEGP, TEP, and the Predecessor Entities are all considered "entities under common control" as defined under GAAP and, as such, the transfers between the entities of the assets and liabilities have been recorded by TEGP at historical cost.

6

A variable interest entity ("VIE") is a legal entity that possesses any of the following characteristics: an insufficient amount of equity at risk to finance its activities, equity owners who do not have the power to direct the significant activities of the entity (or have voting rights that are disproportionate to their ownership interest), or equity owners who do not have the obligation to absorb expected losses or the right to receive the expected residual returns of the entity. Companies are required to consolidate a VIE if they are its primary beneficiary, which is the enterprise that has a variable interest that could be significant to the VIE and the power to direct the activities that most significantly impact the entity's economic performance. We have presented separately in our condensed consolidated balance sheets, to the extent material, the liabilities of our consolidated VIEs for which creditors do not have recourse to our general credit. Our consolidated VIEs do not have material assets that can only be used to settle specific obligations of the consolidated VIEs. Tallgrass Equity is considered to be a VIE under the applicable authoritative guidance. Based on a qualitative analysis in accordance with the applicable authoritative guidance, we have determined that we are the primary beneficiary as we have the right to receive benefits of Tallgrass Equity that could potentially be significant to Tallgrass Equity. TEP is also considered to be a VIE under the applicable authoritative guidance. Based on a qualitative analysis, we have determined that TEP GP is the primary beneficiary of TEP and we continue to consolidate TEP accordingly.

Use of Estimates

Certain amounts included in or affecting these condensed consolidated financial statements and related disclosures must be estimated, requiring management to make certain assumptions with respect to values or conditions which cannot be known with certainty at the time the financial statements are prepared. These estimates and assumptions affect the amounts reported for assets, liabilities, revenues, and expenses during the reporting period, and the disclosure of contingent assets and liabilities at the date of the financial statements. Management evaluates these estimates on an ongoing basis, utilizing historical experience, consultation with experts and other methods it considers reasonable in the particular circumstances. Nevertheless, actual results may differ significantly from these estimates. Any effects on our business, financial position or results of operations resulting from revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known.

Accounting Pronouncement Recently Adopted

ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting"

In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Among other changes, ASU 2016-09 allows an entity to make an entity-wide accounting policy election to either estimate the number of awards expected to vest (consistent with current GAAP) or account for forfeitures when they occur.

The amendments in ASU 2016-09 are effective for public entities for annual periods and interim periods within those annual periods beginning after December 15, 2016. Early adoption is permitted. We adopted the guidance in ASU 2016-09 effective January 1, 2017 and made a policy election to account for forfeitures when they occur. The adoption of ASU 2016-09 did not have a material impact on our consolidated financial statements.

Accounting Pronouncements Not Yet Adopted

Revenue Recognition

In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 provides a comprehensive and converged set of principles-based revenue recognition guidelines which supersede the existing industry and transaction-specific standards. The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, entities must apply a five-step process to (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 also mandates disclosure of sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The disclosure requirements include qualitative and quantitative information about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract.

7

Throughout 2015 and 2016, the FASB has issued a series of subsequent updates to the revenue recognition guidance in Topic 606, including ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers.

The amendments in ASU 2014-09, ASU 2016-08, ASU 2016-10, ASU 2016-12, and ASU 2016-20 are effective for public entities for annual reporting periods beginning after December 15, 2017, and for interim periods within that reporting period. Early application is permitted for annual reporting periods beginning after December 15, 2016.

We are currently evaluating the impact of our pending adoption of the revised guidance. The status of our implementation is as follows:

• We have formed an implementation team that meets to discuss implementation challenges, technical interpretations, industry-specific treatment of certain revenue contract types, and project status.

• We are currently reviewing contracts for each revenue stream identified within each of our business segments. Through this process, we are determining and documenting expected changes in revenue recognition upon adoption of the revised guidance.

• We plan to evaluate the potential information technology and internal control changes that will be required for adoption based on the findings from our contract review process.

• We plan to provide internal training and awareness related to the revised guidance to the key stakeholders throughout our organization.

Through the contract review process currently underway, management has identified several areas of potential impact, including the accounting for non-cash consideration, particularly in our Crude Oil Transportation & Logistics and Processing & Logistics segments, and the timing of revenue recognition with respect to deficiency payments received in our Crude Oil Transportation & Logistics segment. We will continue to conduct our contract review process throughout 2017 and, as a result, additional areas of impact may be identified. We are in the process of quantifying the impact of adoption but cannot reasonably estimate such amount at this time. We expect to adopt the new standard on January 1, 2018 using the modified retrospective approach. This approach allows us to apply the new standard to (i) all new contracts entered into after January 1, 2018 and (ii) all existing contracts for which all (or substantially all) of the revenue has not been recognized under legacy revenue guidance as of January 1, 2018 through a cumulative adjustment to equity. Consolidated revenues presented in our comparative financial statements for periods prior to January 1, 2018 would not be revised.

ASU No. 2016-02, "Leases (Topic 842)"

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). ASU 2016-02 provides a comprehensive update to the lease accounting topic in the Codification intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in ASU 2016-02 include a revised definition of a lease as well as certain scope exceptions. The changes primarily impact lessee accounting, while lessor accounting is largely unchanged from previous GAAP.

The amendments in ASU 2016-02 are effective for public entities for annual reporting periods beginning after December 15, 2018, and for interim periods within that reporting period. Early application is permitted. We are currently evaluating the impact of ASU 2016-02.

ASU No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business"

In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses by providing a screen to determine when an integrated set of assets and activities is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. The ASU also narrows the definition of the term "output" so that the term is consistent with how outputs are described under the revenue recognition guidance in Topic 606.

The amendments in ASU 2017-01 are effective for public entities for annual periods and interim periods within those annual periods beginning after December 15, 2017. Early adoption is permitted in certain circumstances. We are currently evaluating the impact of ASU 2017-01, but do not anticipate a material impact on our consolidated financial statements.

8

ASU No. 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment"

In January 2017, the FASB issued ASU No. 2017-04, which simplifies the subsequent measurement of goodwill by eliminating "Step 2" from the goodwill impairment test, which involved calculating the implied fair value of goodwill by determining the fair value at the impairment testing date of a reporting unit's assets and liabilities. Instead, under the simplified test approach, an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit.

The amendments in ASU 2017-04 are effective for public entities for annual periods and interim periods within those annual periods beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We are currently evaluating the impact of ASU 2017-04.

3. Variable Interest Entities

TEP is a VIE of which TEP GP, our consolidated subsidiary, is the primary beneficiary. We continue to consolidate TEP accordingly. We have not provided any additional financial support and have no contractual commitments or obligations to provide additional financial support to TEP.

TEGP, as the managing member of Tallgrass Equity, has voting rights disproportionate to its ownership interest. As a result, we have determined that Tallgrass Equity is a VIE of which we are the primary beneficiary and we consolidate Tallgrass Equity accordingly. We have not provided any additional financial support to Tallgrass Equity other than our initial capital contribution to acquire a portion of our controlling interest in Tallgrass Equity and have no contractual commitments or obligations to provide additional financial support to Tallgrass Equity.

Other than TEGP's deferred tax asset of approximately $518.8 million and $521.5 million at March 31, 2017 and December 31, 2016, respectively, the assets and liabilities included in our condensed consolidated balance sheets at March 31, 2017 and December 31, 2016 represent the consolidated assets and liabilities of Tallgrass Equity, including the assets and liabilities of TEP.

4. Acquisitions

TEP Acquisition of an Additional 24.99% Membership Interest in Rockies Express

On March 31, 2017, TEP, TD, and Rockies Express Holdings, LLC, entered into a definitive Purchase and Sale Agreement, pursuant to which TEP acquired an additional 24.99% membership interest in Rockies Express from TD in exchange for cash consideration of $400 million. Together with the 25% membership interest in Rockies Express that TEP acquired from a unit of Sempra U.S. Gas and Power on May 6, 2016, this transaction increases TEP’s aggregate membership interest in Rockies Express to 49.99%.

The transfer of the Rockies Express membership interest between TD and TEP is considered a transaction between entities under common control, but does not represent a change in reporting entity. TEP's investment in Rockies Express is recorded under the equity method of accounting and is reported as "Unconsolidated investments" on our condensed consolidated balance sheets. As a result of the common control nature of the transaction, the 24.99% membership interest in Rockies Express was transferred to TEP at TD's historical carrying amount, including the remaining unamortized basis difference driven by the difference between the fair value of the investment and the book value of the underlying assets and liabilities on November 13, 2012, the date of acquisition by TD. For additional information, see Note 8 – Investments in Unconsolidated Affiliates.

As of March 31, 2017, the negative basis difference carried over from TD was approximately $386.8 million. The amount of the basis difference allocated to property, plant and equipment is accreted over 35 years, which equates to the 2.86% composite depreciation rate utilized by Rockies Express to depreciate the underlying property, plant and equipment. The amount allocated to long-term debt is amortized over the remaining life of the various debt facilities. The basis difference associated with the recently acquired 24.99% membership interest in Rockies Express at March 31, 2017 was allocated as follows:

	Basis Difference			Amortization Period
	(in thousands)
Long-term debt	$	19,504		2 - 25 years
Property, plant and equipment	(406,301		)	35 years
Total basis difference	$	(386,797	)

9

TEP Acquisition of Tallgrass Terminals, LLC and Tallgrass NatGas Operator, LLC

Effective January 1, 2017, TEP acquired 100% of the issued and outstanding membership interests in Terminals and 100% of the issued and outstanding membership interests in NatGas from TD for total cash consideration of $140 million. These acquisitions are considered transactions between entities under common control, and a change in reporting entity.

Terminals owns several fully operational assets providing storage capacity and additional injection points for the Pony Express System, including the Sterling Terminal near Sterling, Colorado, the Buckingham Terminal in northeast Colorado, and a 20% interest in the Deeprock Development Terminal in Cushing, Oklahoma. The 20% interest in Deeprock Development is recorded under the equity method of accounting and reported as "Unconsolidated investments" on our condensed consolidated balance sheets. Terminals also owns acreage in Cushing, Oklahoma and Guernsey, Wyoming, which is under development to provide additional storage capacity, and other potential opportunities.

NatGas is the operator of the Rockies Express Pipeline and receives a fee from Rockies Express as compensation for its services.

10

Historical Financial Information

The results of our acquisitions of Terminals and NatGas are included in the condensed consolidated balance sheets as of March 31, 2017 and December 31, 2016. The following table presents our previously reported December 31, 2016 condensed consolidated balance sheet, adjusted for the acquisitions of Terminals and NatGas:

	December 31, 2016
	TEGP (As previously reported)		Consolidate Terminals		Consolidate NatGas		TEGP (As currently reported)
	(in thousands)
ASSETS
Current Assets:
Cash and cash equivalents	$	2,459	$	—	$	—	$	2,459
Accounts receivable, net	59,469		38		29		59,536
Gas imbalances	1,597		—		—		1,597
Inventories	12,805		288		—		13,093
Derivative assets at fair value	10,967		—		—		10,967
Prepayments and other current assets	6,820		808		—		7,628
Total Current Assets	94,117		1,134		29		95,280
Property, plant and equipment, net	2,012,263		66,969		—		2,079,232
Goodwill	343,288		—		—		343,288
Intangible asset, net	93,522		—		—		93,522
Unconsolidated investments	461,915		13,710		—		475,625
Deferred tax asset	521,454		—		—		521,454
Deferred financing costs, net	6,042		—		—		6,042
Deferred charges and other assets	9,637		1,400		—		11,037
Total Assets	$	3,542,238	$	83,213	$	29	$	3,625,480
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable	$	24,403	$	46	$	—	$	24,449
Accounts payable to related parties	5,768		56		—		5,824
Gas imbalances	1,239		—		—		1,239
Derivative liabilities at fair value	556		—		—		556
Accrued taxes	16,328		668		—		16,996
Accrued liabilities	16,578		177		—		16,755
Deferred revenue	60,757		—		—		60,757
Other current liabilities	6,446		—		—		6,446
Total Current Liabilities	132,075		947		—		133,022
Long-term debt, net	1,555,981		—		—		1,555,981
Other long-term liabilities and deferred credits	7,063		—		—		7,063
Total Long-term Liabilities	1,563,044		—		—		1,563,044
Equity:
Net Equity	1,847,119		82,266		29		1,929,414
Total Equity	1,847,119		82,266		29		1,929,414
Total Liabilities and Equity	$	3,542,238	$	83,213	$	29	$	3,625,480

11

The results of our acquisitions of Terminals and NatGas are included in the condensed consolidated statements of income for the three months ended March 31, 2017 and 2016. The following tables present the previously reported condensed consolidated statements of income for the three months ended March 31, 2016, adjusted for the acquisitions of Terminals and NatGas:

	Three Months Ended March 31, 2016
	TEGP (As previously reported)			Consolidate Terminals		Consolidate NatGas		Elimination (1)			TEGP (As currently reported)
	(in thousands)
Revenues:
Crude oil transportation services	$	94,572		$	—	$	—	$	—		$	94,572
Natural gas transportation services	29,280			—		—		—			29,280
Sales of natural gas, NGLs, and crude oil	13,926			—		—		—			13,926
Processing and other revenues	7,627			2,909		1,681		(2,827		)	9,390
Total Revenues	145,405			2,909		1,681		(2,827		)	147,168
Operating Costs and Expenses:
Cost of sales (exclusive of depreciation and amortization shown below)	13,568			—		—		—			13,568
Cost of transportation services (exclusive of depreciation and amortization shown below)	16,156			200		—		(2,827		)	13,529
Operations and maintenance	12,477			481		—		—			12,958
Depreciation and amortization	21,692			315		—		—			22,007
General and administrative	13,537			474		—		—			14,011
Taxes, other than income taxes	7,506			144		—		—			7,650
Total Operating Costs and Expenses	84,936			1,614		—		(2,827		)	83,723
Operating Income	60,469			1,295		1,681		—			63,445
Other Income (Expense):
Interest expense, net	(8,677		)	—		—		—			(8,677		)
Unrealized loss on derivative instrument	(8,946		)	—		—		—			(8,946		)
Equity in earnings of unconsolidated investments	—			709		—		—			709
Other income, net	566			—		—		—			566
Total Other (Expense) Income	(17,057		)	709		—		—			(16,348		)
Net income before tax	43,412			2,004		1,681		—			47,097
Deferred income tax expense	(2,791		)	—		—		—			(2,791		)
Net income	40,621			2,004		1,681		—			44,306
Net income attributable to noncontrolling interests	(33,032		)	—		—		—			(33,032		)
Net income attributable to TEGP	$	7,589		$	2,004	$	1,681	$	—		$	11,274

⁽¹⁾  Represents the elimination of revenue and cost of transportation services associated with the lease of the Sterling Terminal facilities by Pony Express.

5. Related Party Transactions

As a result of our relationship with TD and its affiliates, we have entered into a number of related party transactions. The following disclosure includes those related party disclosures which are not otherwise disclosed in these notes to our condensed consolidated financial statements.

12

We have no employees. In connection with the closing of the TEP initial public offering on May 17, 2013, TEP and its general partner entered into an Omnibus Agreement with TD and certain of its affiliates, including Tallgrass Operations, LLC (the "TEP Omnibus Agreement"). The TEP Omnibus Agreement provides that, among other things, TEP will reimburse TD and its affiliates for all expenses they incur and payments they make on TEP's behalf, including the costs of employee and director compensation and benefits as well as the cost of the provision of certain centralized corporate functions performed by TD, including legal, accounting, cash management, insurance administration and claims processing, risk management, health, safety and environmental, information technology and human resources in each case to the extent reasonably allocable to TEP. In addition, in connection with the closing of our initial public offering on May 12, 2015 (the "TEGP IPO"), TEGP entered into an Omnibus Agreement (the "TEGP Omnibus Agreement") with TEGP Management, LLC, Tallgrass Equity and Tallgrass Energy Holdings, LLC (which is the general partner of TD).

Pursuant to the TEGP Omnibus Agreement, Tallgrass Equity pays a reimbursement to TD for costs associated with TEGP being a public company beginning in the second quarter of 2015, which was $500,000 for the first quarter of 2017. This amount will be periodically reviewed and adjusted as necessary to continue to reflect reasonable allocation of costs to TEGP.

Totals of transactions with affiliated companies, excluding transactions disclosed elsewhere in these notes, are as follows:

	Three Months Ended March 31,
	2017		2016
	(in thousands)
Cost of transportation services (1)	$	4,507	$	4,429
Charges to TEGP: (2)
Property, plant and equipment, net	$	293	$	918
Operations and maintenance	$	6,277	$	6,184
General and administrative	$	9,573	$	9,437

⁽¹⁾  Reflects rent expense for the crude oil storage at the Deeprock Terminal.

⁽²⁾  Charges to TEGP, inclusive of Tallgrass Equity and TEP, include directly charged wages and salaries, other compensation and benefits, and shared services.

Details of balances with affiliates included in "Accounts receivable, net" and "Accounts payable to related parties" in the condensed consolidated balance sheets are as follows:

	March 31, 2017		December 31, 2016
	(in thousands)
Receivable from related parties:
Rockies Express Pipeline LLC	$	1,266	$	590
Total receivable from related parties	$	1,266	$	590
Accounts payable to related parties:
Tallgrass Operations, LLC	$	6,047	$	5,811
Tallgrass Management, LLC	20		—
Deeprock Development, LLC	—		13
Total accounts payable to related parties	$	6,067	$	5,824

Gas imbalances with affiliated shippers are as follows:

	March 31, 2017		December 31, 2016
	(in thousands)
Affiliate gas imbalance receivables	$	—	$	177
Affiliate gas imbalance payables	$	73	$	—

13

6. Inventory

The components of inventory at March 31, 2017 and December 31, 2016 consisted of the following:

	March 31, 2017		December 31, 2016
	(in thousands)
Crude oil	$	6,903	$	5,462
Materials and supplies	6,455		6,383
Natural gas liquids	573		265
Gas in underground storage	1,716		983
Total inventory	$	15,647	$	13,093

7. Property, Plant and Equipment

A summary of net property, plant and equipment by classification is as follows:

	March 31, 2017			December 31, 2016
	(in thousands)
Crude oil pipelines	$	1,207,727		$	1,202,125
Natural gas pipelines	575,536			572,150
Processing and treating assets	262,447			256,901
General and other	225,243			223,310
Construction work in progress	29,770			20,606
Accumulated depreciation and amortization	(215,053		)	(195,860		)
Total property, plant and equipment, net	$	2,085,670		$	2,079,232

8. Investments in Unconsolidated Affiliates

Rockies Express

Our investment in Rockies Express is recorded under the equity method of accounting and is reported as "Unconsolidated investments" on our condensed consolidated balance sheets. During the three months ended March 31, 2017, we recognized equity in earnings associated with our previously acquired 25% membership interest in Rockies Express of $20.0 million, inclusive of the amortization of the negative basis difference, and received distributions from and made contributions to Rockies Express of $30.1 million and $6.7 million, respectively. As discussed in Note 4 – Acquisitions, we acquired an additional 24.99% membership interest in Rockies Express from TD on March 31, 2017.

Summarized financial information for Rockies Express is as follows:

	Three Months Ended March 31, 2017
Revenue	$	201,338
Operating income	$	107,369
Net income to Members	$	66,250

Deeprock Development

See Note 4 – Acquisitions for additional information regarding our recently acquired 20% membership interest in Deeprock Development.

14

9. Risk Management

We occasionally enter into derivative contracts with third parties for the purpose of hedging exposures that accompany our normal business activities. Our normal business activities directly and indirectly expose us to risks associated with changes in the market price of crude oil and natural gas, among other commodities. For example, the risks associated with changes in the market price of crude oil and natural gas include, among others (i) pre-existing or anticipated physical crude oil and natural gas sales, (ii) natural gas purchases and (iii) natural gas system use and storage. We have elected not to apply hedge accounting and changes in the fair value of all derivative contracts are recorded in earnings in the period in which the change occurs.

Fair Value of Derivative Contracts

The following table summarizes the fair values of our derivative contracts included in the condensed consolidated balance sheets:

	Balance Sheet Location	March 31, 2017		December 31, 2016
		(in thousands)
Call option derivative (1)	Current assets	$	—	$	10,676
Crude oil derivative contracts (2)	Current assets	$	223	$	—
Natural gas derivative contracts (3)	Current assets	$	81	$	291
Crude oil derivative contracts (2)	Current liabilities	$	—	$	440
Natural gas derivative contracts (3)	Current liabilities	$	—	$	116

⁽¹⁾  As discussed below, in conjunction with TEP's acquisition of an additional 31.3% membership interest in Pony Express effective January 1, 2016, TD granted TEP an 18 month call option covering the 6,518,000 common units issued to TD. As of February 1, 2017, no common units remained subject to the call option.

⁽²⁾  As of March 31, 2017 and December 31, 2016, the fair value shown for crude oil derivative contracts represents the sale of 125,000 barrels of crude oil which will settle throughout 2017.

⁽³⁾  As of March 31, 2017, the fair value shown for natural gas derivative contracts was comprised of derivative volumes for long natural gas fixed-price swaps totaling 0.3 Bcf. As of December 31, 2016, the fair value shown for natural gas derivative contracts was comprised of derivative volumes for short and long natural gas fixed-price swaps totaling 0.3 Bcf and 0.4 Bcf, respectively.

Effect of Derivative Contracts in the Statements of Income

The following table summarizes the impact of derivative contracts for the three months ended March 31,2017 and 2016:

	Location of gain (loss) recognized in income on derivatives	Amount of gain (loss) recognized in income on derivatives
			Three Months Ended March 31,
			2017		2016
		(in thousands)
Derivatives not designated as hedging contracts:
Call option derivative	Unrealized gain (loss) on derivative instrument		$	1,885	$	(8,946	)
Natural gas derivative contracts	Sales of natural gas, NGLs, and crude oil		$	173	$	(44	)
Crude oil derivative contracts	Sales of natural gas, NGLs, and crude oil		$	663	$	—

15

Call Option Derivative

As part of TEP's acquisition of an additional 31.3% membership interest in Pony Express effective January 1, 2016, TD granted TEP an 18 month call option at an exercise price of $42.50 per TEP common unit covering the 6,518,000 TEP common units issued to TD as a portion of the consideration. In July 2016 and October 2016, TEP partially exercised the call option covering 3,563,146 and 1,251,760 common units, respectively, for cash payments of $151.4 million and $53.2 million, respectively. On February 1, 2017, TEP exercised the remainder of the call option covering an additional 1,703,094 common units for a cash payment of $72.4 million. These common units were deemed canceled upon the exercise of the call option and as of the applicable exercise date were no longer issued and outstanding.

Credit Risk

We have counterparty credit risk as a result of our use of derivative contracts. Counterparties to our crude oil and natural gas derivatives consist of major financial institutions. This concentration of counterparties may impact our overall exposure to credit risk, either positively or negatively, in that the counterparties may be similarly affected by changes in economic, regulatory or other conditions. The counterparty to our call option derivative was TD.

Our over-the-counter swaps are entered into with counterparties outside central trading organizations such as futures, options or stock exchanges. These contracts are with financial institutions with investment grade credit ratings. While we enter into derivative transactions principally with investment grade counterparties and actively monitor their credit ratings, it is nevertheless possible that from time to time losses will result from counterparty credit risk in the future. The maximum potential exposure to credit losses on our crude oil and natural gas derivative contracts at March 31, 2017 was:

	Asset Position
	(in thousands)
Gross	$	304
Netting agreement impact	—
Cash collateral held	—
Net exposure	$	304

As of March 31, 2017 and December 31, 2016, we did not have any outstanding letters of credit or cash in margin accounts in support of our hedging of commodity price risks associated with our commodity derivative contracts nor did we have any margin deposits with counterparties associated with our commodity derivative contracts.

Fair Value

Derivative assets and liabilities are measured and reported at fair value. Derivative contracts can be exchange-traded or over-the-counter ("OTC"). Exchange-traded derivative contracts typically fall within Level 1 of the fair value hierarchy if they are traded in an active market. We value exchange-traded derivative contracts using quoted market prices for identical securities.

OTC commodity derivatives are valued using models utilizing a variety of inputs including contractual terms and commodity and interest rate curves. The selection of a particular model and particular inputs to value an OTC derivative contract depends upon the contractual terms of the instrument as well as the availability of pricing information in the market. We use similar models to value similar instruments. For OTC derivative contracts that trade in liquid markets, such as generic forwards and swaps, model inputs can generally be verified and model selection does not involve significant management judgment. Such contracts are typically classified within Level 2 of the fair value hierarchy. The call option granted by TD was valued using a Black-Scholes option pricing model. Key inputs to the valuation model include the term of the option, risk free rate, the exercise price and current market price, expected volatility and expected distribution yield of the underlying units. The call option valuation was classified within Level 2 of the fair value hierarchy as the value was based on significant observable inputs.

Certain OTC derivative contracts trade in less liquid markets with limited pricing information; as such, the determination of fair value for these derivative contracts is inherently more difficult. Such contracts are classified within Level 3 of the fair value hierarchy. The valuations of these less liquid OTC derivatives are typically impacted by Level 1 and/or Level 2 inputs that can be observed in the market, as well as unobservable Level 3 inputs. Use of a different valuation model or different valuation input values could produce a significantly different estimate of fair value. However, derivative contracts valued using inputs unobservable in active markets are generally not material to our financial statements. When appropriate, valuations are adjusted for various factors including credit considerations. Such adjustments are generally based on available market evidence. In the absence of such evidence, management's best estimate is used.

16

The following table summarizes the fair value measurements of our derivative contracts as of March 31, 2017 and December 31, 2016 based on the fair value hierarchy established by the Codification:

			Asset Fair Value Measurements Using
	Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
	(in thousands)
As of March 31, 2017:
Crude oil derivative contracts	$	223	$	—	$	223	$	—
Natural gas derivative contracts	$	81	$	—	$	81	$	—
As of December 31, 2016:
Call option derivative	$	10,676	$	—	$	10,676	$	—
Natural gas derivative contracts	$	291	$	—	$	291	$	—
			Liability Fair Value Measurements Using
	Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
	(in thousands)
As of December 31, 2016:
Crude oil derivative contracts	$	440	$	—	$	440	$	—
Natural gas derivative contracts	$	116	$	—	$	116	$	—

10. Long-term Debt

Long-term debt consisted of the following at March 31, 2017 and December 31, 2016:

	March 31, 2017			December 31, 2016
	(in thousands)
Tallgrass Equity revolving credit facility	$	148,000		$	148,000
TEP revolving credit facility	1,567,000			1,015,000
TEP 5.50% senior notes due September 15, 2024	400,000			400,000
Less: Deferred financing costs, net (1)	(6,768		)	(7,019		)
Total long-term debt, net	$	2,108,232		$	1,555,981

⁽¹⁾  Deferred financing costs, net as presented above relate solely to the 2024 Notes. Deferred financing costs associated with our revolving credit facility are presented in noncurrent assets on our condensed consolidated balance sheets.

TEP Senior Unsecured Notes

On September 1, 2016, TEP and Tallgrass Energy Finance Corp. (the "Co-Issuer" and together with TEP, the "Issuers"), the Guarantors named therein and U.S. Bank, National Association, as trustee, entered into an Indenture dated September 1, 2016 (the "Indenture"), pursuant to which the Issuers issued $400 million in aggregate principal amount of 5.50% senior notes due 2024 (the "2024 Notes"). 

The Indenture contains covenants that, among other things, limit TEP's ability and the ability of its restricted subsidiaries to: (i) incur, assume or guarantee additional indebtedness or issue preferred units; (ii) create liens to secure indebtedness; (iii) pay distributions on equity interests, repurchase equity securities or redeem subordinated securities; (iv) make investments; (v) restrict distributions, loans or other asset transfers from TEP's restricted subsidiaries; (vi) consolidate with or merge with or into, or sell substantially all of TEP's properties to, another person; (vii) sell or otherwise dispose of assets, including equity interests in subsidiaries; and (viii) enter into transactions with affiliates. As of March 31, 2017, TEP was in compliance with the covenants required under the 2024 Notes.

17

Tallgrass Equity Revolving Credit Facility

The following table sets forth the available borrowing capacity under the Tallgrass Equity revolving credit facility as of March 31, 2017 and December 31, 2016:

	March 31, 2017			December 31, 2016
	(in thousands)
Total capacity under the Tallgrass Equity revolving credit facility	$	150,000		$	150,000
Less: Outstanding borrowings under the Tallgrass Equity revolving credit facility	(148,000		)	(148,000		)
Available capacity under the Tallgrass Equity revolving credit facility	$	2,000		$	2,000

In connection with the TEGP IPO, Tallgrass Equity entered into a $150 million senior secured revolving credit facility with Barclays Bank PLC, as administrative agent, and a syndicate of lenders, which will mature on May 12, 2020. Among various other covenants and restrictive provisions, Tallgrass Equity is required to maintain a total leverage ratio of not more than 3.00 to 1.00. As of March 31, 2017, Tallgrass Equity was in compliance with the covenants required under the revolving credit facility.

The unused portion of the revolving credit facility is subject to a commitment fee of 0.50%. As of March 31, 2017, the weighted average interest rate on outstanding borrowings under the Tallgrass Equity revolving credit facility was 3.48%. During the three months ended March 31, 2017, Tallgrass Equity's weighted average effective interest rate, including the interest on outstanding borrowings, commitment fees, and amortization of deferred financing costs, was 3.61%.

TEP Revolving Credit Facility

The following table sets forth the available borrowing capacity under the TEP revolving credit facility as of March 31, 2017 and December 31, 2016:

	March 31, 2017			December 31, 2016
	(in thousands)
Total capacity under the TEP revolving credit facility	$	1,750,000		$	1,750,000
Less: Outstanding borrowings under the TEP revolving credit facility (1)	(1,567,000		)	(1,015,000		)
Available capacity under the TEP revolving credit facility	$	183,000		$	735,000

TEP's revolving credit facility contains various covenants and restrictive provisions that, among other things, limit or restrict TEP's ability (as well as the ability of its restricted subsidiaries) to incur or guarantee additional debt, incur certain liens on assets, dispose of assets, make certain distributions (including distributions from available cash, if a default or event of default under the credit agreement then exists or would result from making such a distribution), change the nature of its business, engage in certain mergers or make certain investments and acquisitions, enter into non-arms-length transactions with affiliates and designate certain subsidiaries as "Unrestricted Subsidiaries." In addition, TEP is required to maintain a consolidated leverage ratio of not more than 4.75 to 1.00 (which will be increased to 5.25 to 1.00 for certain measurement periods following the consummation of certain acquisitions) and a consolidated interest coverage ratio of not less than 2.50 to 1.00. As of March 31, 2017, TEP was in compliance with the covenants required under its revolving credit facility.

The unused portion of TEP's revolving credit facility is subject to a commitment fee, which ranges from 0.300% to 0.500%, based on TEP's total leverage ratio. As of March 31, 2017, the weighted average interest rate on outstanding borrowings under the TEP revolving credit facility was 2.95%. During the three months ended March 31, 2017, the weighted average effective interest rate under the TEP revolving credit facility, including the interest on outstanding borrowings, commitment fees, and amortization of deferred financing costs, was 3.12%.

18

Fair Value

The following table sets forth the carrying amount and fair value of our long-term debt, which is not measured at fair value in the condensed consolidated balance sheets as of March 31, 2017 and December 31, 2016, but for which fair value is disclosed:

	Fair Value
	Quoted prices in active markets for identical  assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total		Carrying Amount
	(in thousands)
As of March 31, 2017:
Revolving credit facilities	$	—	$	1,715,000	$	—	$	1,715,000	$	1,715,000
2024 Notes	$	—	$	403,252	$	—	$	403,252	$	393,232
As of December 31, 2016:
Revolving credit facilities	$	—	$	1,163,000	$	—	$	1,163,000	$	1,163,000
2024 Notes	$	—	$	398,000	$	—	$	398,000	$	392,981

The long-term debt borrowed under the revolving credit facilities is carried at amortized cost. As of March 31, 2017 and December 31, 2016, the fair value of borrowings under the revolving credit facilities approximates the carrying amount of the borrowings using a discounted cash flow analysis. The 2024 Notes are carried at amortized cost, net of deferred financing costs. The estimated fair value of the 2024 Notes is based upon quoted market prices adjusted for illiquid markets. We are not aware of any factors that would significantly affect the estimated fair value subsequent to March 31, 2017.

11. Partnership Equity and Distributions

TEGP Partnership Agreement and Distributions to Holders of Class A Shares

The following table details the distributions for the periods indicated:

Three Months Ended	Date Paid	Distributions to Class A Shareholders		Distributions per Class A Share
		(in thousands)
March 31, 2017	May 15, 2017 (1)	$	16,697	$	0.2875
December 31, 2016	February 14, 2017	16,116		0.2775
September 30, 2016	November 14, 2016	12,528		0.2625
June 30, 2016	August 12, 2016	11,693		0.2450
March 31, 2016	May 13, 2016	10,022		0.2100

⁽¹⁾  The distribution announced on April 17, 2017 for the first quarter of 2017 will be paid on May 15, 2017 to Class A shareholders of record at the close of business on April 28, 2017.

19

Subsidiary Distributions    

TEP Distributions. The following table shows the distributions for the periods indicated:

		Distributions
		Limited Partner Common Units		General Partner						Distributions per Limited Partner Unit
Three Months Ended	Date Paid			Incentive Distribution Rights		General Partner Units		Total
		(in thousands, except per unit amounts)
March 31, 2017	May 15, 2017 (1)	$	60,486	$	29,840	$	1,040	$	91,366	$	0.8350
December 31, 2016	February 14, 2017	58,793		28,358		1,008		88,159		0.8150
September 30, 2016	November 14, 2016	57,332		26,987		976		85,295		0.7950
June 30, 2016	August 12, 2016	54,442		24,262		911		79,615		0.7550
March 31, 2016	May 13, 2016	48,238		19,816		830		68,884		0.7050

⁽¹⁾  The distribution announced on April 17, 2017 for the first quarter of 2017 will be paid on May 15, 2017 to unitholders of record at the close of business on April 28, 2017.

Repurchase of TEP Common Units Owned by TD

Following an offer received from TD with respect to TEP common units owned by TD not subject to the call option, TEP repurchased 736,262 TEP common units from TD at an aggregate price of approximately $35.3 million, or $47.99 per common unit, on February 1, 2017, which was approved by the conflicts committee of the board of directors of TEP's general partner. These common units were deemed canceled upon our purchase and as of such transaction date were no longer issued and outstanding.

TEP Equity Distribution Agreements

As of March 31, 2017, TEP had active equity distribution agreements pursuant to which it may sell from time to time through a group of managers, as its sales agents, TEP common units representing limited partner interests having an aggregate offering price of up to $100.2 million and $657.5 million. Net cash proceeds from any sale of the TEP common units may be used for general partnership purposes, which includes, among other things, TEP's exercise of the call option with respect to the 6,518,000 common units issued to TD in connection with TEP's acquisition of an additional 31.3% of Pony Express in January 2016, repayment or refinancing of debt, funding for acquisitions, capital expenditures and additions to working capital.

During the three months ended March 31, 2017, TEP issued and sold 2,087,647 common units with a weighted average sales price of $48.23 per unit under its equity distribution agreements for net cash proceeds of approximately $99.4 million (net of approximately $1.3 million in commissions and professional service expenses). During the period from April 1, 2017 to May 3, 2017, TEP issued and sold an additional 253,414 common units with a weighted average sales price of $53.65 per unit under its equity distribution agreements for net cash proceeds of approximately $13.5 million (net of approximately $0.1 million in commissions and professional service expenses). TEP used the net cash proceeds for general partnership purposes as described above.

Noncontrolling Interests

As of March 31, 2017, noncontrolling interests in our subsidiaries consisted of a 63.06% interest in Tallgrass Equity held by the Exchange Right Holders, as defined in Note 12 – Net Income per Class A Share, the 72.29% limited partner interest in TEP held by TD and the public TEP unitholders and the 2.0% membership interest in Pony Express held by TD. During the three months ended March 31, 2017, we recognized contributions from and distributions to noncontrolling interests of $0.7 million and $71.4 million, respectively. Contributions from noncontrolling interests consisted primarily of contributions from TD to Pony Express. Distributions to noncontrolling interests consisted of distributions to TEP unitholders of $42.5 million, Tallgrass Equity distributions to the Exchange Right Holders of $27.5 million, and distributions to Pony Express noncontrolling interests of $1.4 million.

During the three months ended March 31, 2016, we received contributions from and made distributions to noncontrolling interests of $7.2 million and $50.9 million, respectively. Contributions from noncontrolling interest primarily consisted of contributions from TD to Pony Express. Distributions to noncontrolling interests consisted of distributions to TEP unitholders of $30.2 million, Tallgrass Equity distributions to Exchange Right Holders of $18.9 million and distributions to Pony Express noncontrolling interests in the aggregate of $1.8 million.

20

Other Contributions and Distributions

During the three months ended March 31, 2017, TEP received contributions from TD of $2.3 million, primarily to indemnify TEP for costs associated with Trailblazer's Pipeline Integrity Management Program, as discussed in Note 14 – Legal and Environmental Matters.

12. Net Income per Class A Share

Basic net income per Class A share is determined by dividing net income attributable to TEGP by the weighted average number of outstanding Class A shares during the period. Class B shares do not share in the earnings of the Partnership. Accordingly, basic and diluted net income per Class B share has not been presented.

Diluted net income per Class A share is determined by dividing net income attributable to TEGP by the weighted average number of outstanding diluted Class A shares during the period. For purposes of calculating diluted net income per Class A share, we considered the impact of possible future exercises of the Exchange Right by the Exchange Right Holders on both net income attributable to TEGP and the diluted weighted average number of Class A shares outstanding. The Exchange Right Holders refers to the group of persons who collectively own all of TEGP's outstanding Class B shares and an equivalent number of Tallgrass Equity units. The Exchange Right Holders are entitled to exercise the right to exchange their Tallgrass Equity units (together with an equivalent number of TEGP Class B shares) for TEGP Class A shares at an exchange ratio of one TEGP Class A share for each Tallgrass Equity unit exchanged, which we refer to as the Exchange Right. The Exchange Right Holders primarily consist of Kelso & Company and its affiliated investment funds, The Energy & Minerals Group and its affiliated investment funds, and Tallgrass KC, LLC, which is an entity owned by certain members of TEGP's and TEP's management.

Pursuant to the TEGP partnership agreement and the Tallgrass Equity limited liability company agreement, our capital structure and the capital structure of Tallgrass Equity will generally replicate one another in order to maintain the one-for-one exchange ratio between the Tallgrass Equity units and Class B shares, on the one hand, and our Class A shares, on the other hand. As a result, the exchange of any Class B shares for Class A shares does not have a dilutive effect on basic net income per Class A share. However, for the three months ended March 31, 2017 and 2016, the potential issuance of TEGP Equity Participation Shares would have had a dilutive effect on basic net income per Class A share.

All net income or loss from Terminals and NatGas prior to TEP's acquisition on January 1, 2017 is allocated to predecessor operations in the condensed consolidated statements of income. Historical earnings of transferred businesses for periods prior to the date of those common control transactions are solely those of the general partner, and therefore we have appropriately excluded any allocation to the TEP limited partner units when determining net income available to TEP common unitholders. Accordingly, no net income or loss from Terminals and NatGas is allocated to our Class A shareholders. We present the financial results of any transferred business prior to the transaction date in the line item "Predecessor operations interest in net income" in the table below.

21

The following table illustrates the calculation of basic and diluted net income per Class A share for the three months ended March 31, 2017 and 2016:

	Three Months Ended March 31,
	2017		2016
	(in thousands, except per share data)
Basic Net Income per Class A Share
Net income attributable to TEGP, excluding predecessor operations interest	$	12,029	$	7,589
Basic weighted average Class A Shares outstanding	58,075		47,725
Basic net income per Class A share	$	0.21	$	0.16
Diluted Net Income per Class A Share
Net income attributable to TEGP, excluding predecessor operations interest	$	12,029	$	7,589
Incremental net income attributable to TEGP including the effect of the assumed issuance of Equity Participation Shares	8		—
Net income attributable to TEGP including incremental net income from assumed issuance of Equity Participation Shares	$	12,037	$	7,589
Basic weighted average Class A Shares outstanding	58,075		47,725
Equity Participation Shares equivalent shares	90		—
Diluted weighted average Class A Shares outstanding	58,165		47,725
Diluted net income per Class A Share	$	0.21	$	0.16

13. Regulatory Matters

There are no regulatory proceedings challenging the transportation rates of Pony Express, Rockies Express, Tallgrass Interstate Gas Transmission, LLC ("TIGT") or Trailblazer Pipeline Company LLC ("Trailblazer"). We have certain regulatory filings currently pending with the FERC, including the following:

Rockies Express

Rockies Express Zone 3 Capacity Enhancement Project – FERC Docket No. CP15-137-000

On March 31, 2015 in Docket No. CP15-137-000, Rockies Express filed with the FERC an application for authorization to construct and operate (1) three new mainline compressor stations located in Pickaway and Fayette Counties, Ohio and Decatur County, Indiana; (2) additional compressors at an existing compressor station in Muskingum County, Ohio; and (3) certain ancillary facilities. The facilities increased the Rockies Express Zone 3 east-to-west mainline capacity by 0.8 Bcf/d. Pursuant to the FERC's obligations under the National Environmental Policy Act, FERC staff issued an Environmental Assessment for the project on August 31, 2015. On February 25, 2016, the FERC issued a Certificate of Public Convenience and Necessity authorizing Rockies Express to proceed with the project. On March 14, 2016, Rockies Express commenced construction of the project facilities. The project was placed in-service for the 0.8 Bcf/d on January 6, 2017.

2016 Annual and Interim FERC Fuel Tracking Filings - FERC Docket Nos. RP16-702 and RP17-240

On March 1, 2016, Rockies Express made its annual fuel tracker filing with a proposed effective date of April 1, 2016 in Docket No. RP16-702. The FERC issued an order accepting the filing on March 25, 2016. On December 1, 2016, Rockies Express made an interim fuel tracker filing with a proposed effective date of January 1, 2017 in Docket No. RP17-240. The FERC issued an order accepting the filing on December 29, 2016.

Electric Power Charge Clarification - FERC Docket No. RP17-285

On December 21, 2016, in Docket No. RP17-285, Rockies Express proposed certain revisions to the General Terms and Conditions of its tariff to clarify that the electric power costs associated with the operation of gas coolers installed in association with the Zone 3 Capacity Enhancement Project, at both electric and gas powered stations, will be included in the Power Cost Tracker. Several shippers submitted comments on the proposal. The FERC issued an order on January 19, 2017 accepting the proposed revisions permitting the recovery of electric power costs from the operation of both gas and electric powered compressor stations, subject to certain clarifications.

22

2017 Annual FERC Fuel Tracking Filing - FERC Docket No. RP17-401-000

On February 13, 2017, in Docket No. RP17-401-000, Rockies Express made its annual fuel and power cost tracker filing with a proposed effective date of April 1, 2017. The FERC issued an order accepting the filing, including certain requested waivers, on March 21, 2017.

TIGT

General Rate Case Filing - FERC Docket No. RP16-137-000, et seq.

On October 30, 2015, TIGT filed a general rate case with the FERC pursuant to Section 4 of the National Gas Act ("NGA"). The rate case proposed, among other things, a general system-wide increase in the maximum tariff rates for all firm and interruptible services offered by TIGT, certain changes to the transportation rate design of its system, a fixed fuel and lost and unaccounted for ("FL&U") and power cost tracker, and certain pro forma tariff records reflecting revisions to TIGT's Tariff.

On June 8, 2016, TIGT filed an Offer of Settlement (the "TIGT Rate Case Settlement") with the FERC, which resolved all issues the FERC had set for hearing. Following certification by the Administrative Law Judge and approval by the FERC, TIGT filed revised tariff records to implement the TIGT Rate Case Settlement, which the FERC subsequently approved on December 23, 2016. Per the terms of the TIGT Rate Case Settlement, TIGT is required to file a new general rate case on May 1, 2019 (provided that such rate case is not pre-empted by a pre-filing settlement).

On February 3, 2017, the FERC accepted TIGT’s pro forma tariff records, subject to conditions, and directed TIGT to file the actual tariff records within 30 days. TIGT subsequently submitted a compliance filing to implement the actual tariff records and restate its tariff to be effective April 1, 2017 and also filed to cancel its existing tariff (which was ultimately superseded by the new tariff). On March 16, 2017, the FERC accepted both filings.

2017 Annual Fuel Tracker Filing - FERC Docket No. RP17-428-000

On February 27, 2017, TIGT made its annual fuel tracker filing with a proposed effective date of April 1, 2017 in Docket No. RP17-428-000. The filing incorporated the FL&U tracker and power cost tracker mechanisms agreed to in the TIGT Rate Case Settlement. The FERC accepted the filing on March 21, 2017.

Trailblazer

2017 Annual Fuel Tracker Filing - FERC Docket No. RP17-549-000

On March 22, 2017, Trailblazer made its annual fuel tracker filing with a proposed effective date of May 1, 2017 in Docket No. RP15-549. This filing incorporates the revised fuel tracker and power cost tracker mechanisms agreed to in the Stipulation and Agreement, which resolved all outstanding issues related to Trailblazer fuel recoveries. The FERC accepted the filing on April 19, 2017.

14. Legal and Environmental Matters

Legal

In addition to the matters discussed below, we are a defendant in various lawsuits arising from the day-to-day operations of our business. Although no assurance can be given, we believe, based on our experiences to date, that the ultimate resolution of such routine items will not have a material adverse impact on our business, financial position, results of operations, or cash flows.

We have evaluated claims in accordance with the accounting guidance for contingencies that we deem both probable and reasonably estimable and, accordingly, have recorded no reserve for legal claims as of March 31, 2017 or December 31, 2016.

Rockies Express

Ultra Resources

In early 2016, Ultra Resources, Inc. ("Ultra") defaulted on its firm transportation service agreement for approximately 0.2 Bcf/d through November 11, 2019. In late March 2016, Rockies Express terminated Ultra's service agreement. On April 14, 2016, Rockies Express filed a lawsuit against Ultra for breach of contract and damages in Harris County, Texas, seeking approximately $303 million in damages and other relief. On April 29, 2016, Ultra and certain of its debtor affiliates filed for protection under Chapter 11 of the United States Bankruptcy Code in United States Bankruptcy Court for the Southern District of Texas, which operated as a stay of the Harris County state court proceeding.

23

On January 12, 2017, Rockies Express and Ultra entered into an agreement to settle Rockies Express' approximately $303 million claim against Ultra's bankruptcy estate. In accordance with the settlement agreement, Ultra has agreed to make a cash payment to Rockies Express of $150 million no later than July 12, 2017, and Ultra has entered into a new, seven-year firm transportation agreement with Rockies Express commencing December 1, 2019, for west-to-east service of 0.2 Bcf/d at a rate of approximately $0.37, or approximately $26.8 million annually. The settlement was part of Ultra's Chapter 11 reorganization plan, which was confirmed by the U.S. Bankruptcy Court on March 14, 2017. On April 12, 2017, Ultra announced that it successfully completed its restructuring in the U.S. Bankruptcy Court and emerged from Chapter 11 bankruptcy.

Michels Corporation

On June 17, 2014, Michels Corporation ("Michels") filed a complaint and request for relief against Rockies Express in the Court of Common Pleas, Monroe County, Ohio, as a result of work performed by Michels to construct the Seneca Lateral Pipeline in Ohio. Michels sought unspecified damages from Rockies Express and asserted claims of breach of contract, negligent misrepresentation, unjust enrichment and quantum meruit. Michels also filed notices of Mechanic's Liens in Monroe and Noble Counties, asserting $24.2 million as the amount due.

On February 2, 2017, Rockies Express and Michels agreed to resolve Michels' claims for a $10 million cash payment by Rockies Express. The cash payment was inclusive of approximately $5.9 million that Rockies Express had been withholding from Michels. Subsequently, Rockies Express and Michels entered into a definitive agreement with respect to the settlement and Rockies Express made the $10 million cash payment to Michels on February 16, 2017.

Environmental, Health and Safety

We are subject to a variety of federal, state and local laws that regulate permitted activities relating to air and water quality, waste disposal, and other environmental matters. We believe that compliance with these laws will not have a material adverse impact on our business, cash flows, financial position or results of operations. However, there can be no assurances that future events, such as changes in existing laws, the promulgation of new laws, or the development of new facts or conditions will not cause us to incur significant costs. We had environmental reserves of $3.8 million and $4.0 million at March 31, 2017 and December 31, 2016, respectively.

TMID

Casper Plant, EPA Notice of Violation

In August 2011, the EPA and the Wyoming Department of Environmental Quality ("WDEQ") conducted an inspection of the Leak Detection and Repair ("LDAR") Program at the Casper Gas Plant in Wyoming. In September 2011, Tallgrass Midstream, LLC ("TMID") received a letter from the EPA alleging violations of the Standards of Performance of Equipment Leaks for Onshore Natural Gas Processing Plant requirements under the Clean Air Act. TMID received a letter from the EPA concerning settlement of this matter in April 2013 and received additional settlement communications from the EPA and Department of Justice beginning in July 2014. Settlement negotiations are continuing, including the expected inclusion of TIGT as a party to any possible settlement as a result of TIGT owning a compressor that is located adjacent to the Casper Gas Plant site.

Casper Mystery Bridge Superfund Site

The Casper Gas Plant is part of the Mystery Bridge Road/U.S. Highway 20 Superfund Site also known as Casper Mystery Bridge Superfund Site. Remediation work at the Casper Gas Plant has been completed and we have requested that the portion of the site attributable to us be delisted from the National Priorities List.

Casper Gas Plant

On November 25, 2014, WDEQ issued a Notice of Violation for violations of Part 60 Subpart OOOO related to the Depropanizer project (wv-14388, issued 7/9/13) in Docket No. 5506-14. TMID had discussed the issues in a meeting with WDEQ in Cheyenne on November 17, 2014, and submitted a disclosure on November 20, 2014 detailing the regulatory issues and potential violations. The project triggered a modification of Subpart OOOO for the entire plant. The project equipment as well as plant equipment subjected to Subpart OOOO was not monitored timely, and initial notification was not made timely. Settlement negotiations with WDEQ are currently ongoing.

24

Trailblazer

Pipeline Integrity Management Program

Trailblazer is currently operating at less than its current maximum allowable operating pressure ("MAOP"), public notice of which was first provided in June 2014. As a result of smart tool surveys in 2014, Trailblazer has identified approximately 25 - 35 miles of pipe that will likely need to be repaired or replaced in order for the pipeline to operate at its MAOP of 1,000 pounds per square inch across all segments of the Trailblazer Pipeline. Such repair or replacement will likely occur over a period of years, depending upon the remediation and repair plan implemented by Trailblazer. Segments of the Trailblazer Pipeline that require full replacement could cost as much as $2.7 million per mile and repair costs on sections of the pipeline that do not require full replacement are expected to be less on a per mile basis. The current pressure reduction is not expected to prevent Trailblazer from fulfilling its firm service obligations at existing subscription levels and to date it has not had a material adverse financial impact on us.

With respect to the approximately 25 - 35 miles of pipe that has been identified, Trailblazer completed 32 excavation digs in 2015 at an aggregate cost of approximately $1.3 million. During 2016, Trailblazer completed additional excavation digs and replaced approximately 8 miles of pipe at an aggregate cost of approximately $19.0 million. In 2017, Trailblazer intends to complete final remediation and cleanup of the pipe replacement at an estimated cost of $2.5 million. Trailblazer is currently exploring all possible cost recovery options to recover such out of pocket costs, including recovery through a general rate increase, negotiated rate agreements with its customers, or other FERC-approved recovery mechanisms.

In connection with our acquisition of the Trailblazer Pipeline, TD agreed to contractually indemnify TEP for certain out of pocket costs related to repairing or remediating the Trailblazer Pipeline, to the extent that such actions were necessitated by external corrosion caused by the pipeline's disbonded Hi-Melt CTE coating. The contractual indemnity provided by TD was capped at $20 million and was subject to a $1.5 million deductible. TEP has received $20 million from TD pursuant to the contractual indemnity, as of March 31, 2017.

Pony Express

Pipeline Integrity

In connection with certain crack tool runs on the Pony Express System completed in 2015 and 2016, Pony Express completed approximately $9.8 million of remediation for anomalies identified on the Pony Express System associated with portions of the pipeline converted from natural gas to crude oil service, and expects to complete additional remediation in 2017 on the Pony Express System of approximately $9 million.

Terminals

System Failures

In January 2017, approximately 10,000 bbls of crude oil were released at the Sterling Terminal as the result of a defective roof drain system on a storage tank. The release was restricted to the containment area designed for such purpose and approximately 9,000 bbls were recovered. We currently expect that the total cost to remediate the release will be less than $600,000.

15. Reportable Segments

Our operations are located in the United States. We are organized into three reportable segments: (1) Crude Oil Transportation & Logistics, (2) Natural Gas Transportation & Logistics, and (3) Processing & Logistics.

Crude Oil Transportation & Logistics

The Crude Oil Transportation & Logistics segment is engaged in the ownership and operation of the Pony Express System, which is a FERC-regulated crude oil pipeline serving the Bakken Shale, Denver-Julesburg and Powder River Basins, and other nearby oil producing basins. The mainline portion of the Pony Express System was placed in service in October 2014. The Pony Express System also includes a lateral pipeline in Northeast Colorado, which interconnects with the Pony Express System just east of Sterling, Colorado and was placed in service in the second quarter of 2015. The Crude Oil Transportation & Logistics segment also includes our 100% membership interest in Terminals acquired effective January 1, 2017.

Natural Gas Transportation & Logistics

The Natural Gas Transportation & Logistics segment is engaged in the ownership and operation of FERC-regulated interstate natural gas pipelines and an integrated natural gas storage facility that provide services to on-system customers (such as third-party LDCs), industrial users and other shippers. The Natural Gas Transportation & Logistics segment includes our 100% membership interest in NatGas acquired effective January 1, 2017 and our 49.99% membership interest in Rockies Express, including the additional 24.99% membership interest acquired effective March 31, 2017.

25

Processing & Logistics

The Processing & Logistics segment is engaged in the ownership and operation of natural gas processing, treating and fractionation facilities that produce NGLs and residue gas that is sold in local wholesale markets or delivered into pipelines for transportation to additional end markets, as well as water business services provided primarily to the oil and gas exploration and production industry and the transportation of NGLs.

Corporate and Other

Corporate and Other includes corporate overhead costs that are not directly associated with the operations of our reportable segments, such as interest and fees associated with our revolving credit facilities and the 2024 Notes, public company costs, and equity-based compensation expense.

These segments are monitored separately by management for performance and are consistent with internal financial reporting. These segments have been identified based on the differing products and services, regulatory environment and the expertise required for their respective operations.

The following tables set forth our segment information for the periods indicated:

	Three Months Ended March 31, 2017							Three Months Ended March 31, 2016
Revenue:	Total Revenue		Inter- Segment			External Revenue		Total Revenue		Inter- Segment			External Revenue
	(in thousands)
Crude Oil Transportation & Logistics	$	85,092	$	—		$	85,092	$	94,654	$	—		$	94,654
Natural Gas Transportation & Logistics	36,428		(1,445		)	34,983		32,668		(1,355		)	31,313
Processing & Logistics	24,325		—			24,325		21,201		—			21,201
Corporate and Other	—		—			—		—		—			—
Total revenue	$	145,845	$	(1,445	)	$	144,400	$	148,523	$	(1,355	)	$	147,168

	Three Months Ended March 31, 2017									Three Months Ended March 31, 2016
Operating Income:	Total Operating Income			Inter- Segment			External Operating Income			Total Operating Income			Inter- Segment			External Operating Income
	(in thousands)
Crude Oil Transportation & Logistics	$	44,715		$	1,344		$	46,059		$	53,961		$	1,345		$	55,306
Natural Gas Transportation & Logistics	18,168			(1,445		)	16,723			12,345			(1,355		)	10,990
Processing & Logistics	4,116			101			4,217			178			10			188
Corporate and Other	(3,773		)	—			(3,773		)	(3,039		)	—			(3,039		)
Total Operating Income	$	63,226		$	—		$	63,226		$	63,445		$	—		$	63,445
Reconciliation to Net Income:
Interest expense, net							(16,017		)							(8,677		)
Unrealized gain (loss) on derivative instruments							1,885									(8,946		)
Equity in earnings of unconsolidated investment							20,738									709
Other income, net							70									566
Net income before tax							$	69,902								$	47,097

26

	Three Months Ended March 31,
Capital Expenditures:	2017		2016
	(in thousands)
Crude Oil Transportation & Logistics	$	10,436	$	15,973
Natural Gas Transportation & Logistics	4,655		2,133
Processing & Logistics	11,678		3,101
Corporate and Other	—		—
Total capital expenditures	$	26,769	$	21,207

Assets:	March 31, 2017		December 31, 2016
	(in thousands)
Crude Oil Transportation & Logistics	$	1,492,333	$	1,493,866
Natural Gas Transportation & Logistics	1,633,358		1,176,147
Processing & Logistics	418,479		411,999
Corporate and Other	529,240		543,468
Total assets	$	4,073,410	$	3,625,480

27

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The historical financial statements included in this Quarterly Report reflect the consolidated results of operations of Tallgrass Energy GP, LP's ("TEGP") 36.94% interest in Tallgrass Equity, LLC ("Tallgrass Equity"), Tallgrass Equity's 100% membership interest in Tallgrass MLP GP, LLC ("TEP GP"), which owns all of the Incentive Distribution Rights ("IDRs"), and all of the outstanding general partner units in Tallgrass Energy Partners, LP ("TEP"), and Tallgrass Equity's 20 million TEP common units it acquired at the closing of the TEGP IPO. As used in this Quarterly Report, unless the context otherwise requires, "we," "us," "our," the "Partnership," "TEGP" and similar terms refer to Tallgrass Energy GP, LP, together with its consolidated subsidiaries (including Tallgrass Equity, TEP and their respective subsidiaries). The term our "general partner" refers to TEGP Management, LLC. References to "TD" refer to Tallgrass Development, LP. As discussed further in Note 2 – Summary of Significant Accounting Policies to the accompanying condensed consolidated financial statements, our financial statements for historical periods prior to January 1, 2017 have been recast to reflect the operations of Terminals and NatGas, which were acquired by TEP effective January 1, 2017.

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the condensed consolidated financial statements and related notes thereto included elsewhere in this Quarterly Report. Additionally, the following discussion and analysis should be read in conjunction with our audited financial statements and notes thereto, the related "Management's Discussion and Analysis of Financial Condition and Results of Operations," the discussion of "Risk Factors" and the discussion of TEGP's "Business" in our Annual Report on Form 10-K for the year ended December 31, 2016 (our "2016 Form 10-K") filed with the United States Securities and Exchange Commission (the "SEC") on February 15, 2017.

A reference to a "Note" herein refers to the accompanying Notes to Condensed Consolidated Financial Statements contained in Item 1.—Financial Statements. In addition, please read "Cautionary Statement Regarding Forward-Looking Statements" and "Risk Factors" for information regarding certain risks inherent in our business.

Cautionary Statement Regarding Forward-Looking Statements

This Quarterly Report and the documents incorporated by reference herein contain forward-looking statements concerning our operations, economic performance and financial condition. Forward-looking statements give our current expectations, contain projections of results of operations or of financial condition, or forecasts of future events. Words such as "could," "will," "may," "assume," "forecast," "position," "predict," "strategy," "expect," "intend," "plan," "estimate," "anticipate," "believe," "project," "budget," "potential," or "continue," and similar expressions are used to identify forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this Quarterly Report include our expectations of plans, strategies, objectives, growth and anticipated financial and operational performance, including guidance regarding our and TD's infrastructure programs, revenue projections, capital expenditures and tax position. Forward-looking statements can be affected by assumptions used or by known or unknown risks or uncertainties. Consequently, no forward-looking statements can be guaranteed.

A forward-looking statement may include a statement of the assumptions or bases underlying the forward-looking statement. We believe that we have chosen these assumptions or bases in good faith and that they are reasonable. However, when considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in this Quarterly Report. Actual results may vary materially. You are cautioned not to place undue reliance on any forward-looking statements. You should also understand that it is not possible to predict or identify all such factors and should not consider the following list to be a complete statement of all potential risks and uncertainties. Factors that could cause our actual results to differ materially from the results contemplated by such forward-looking statements include:

• our ability to pay distributions to our Class A shareholders;

• our expected receipt of, and amounts of, distributions from Tallgrass Equity;

• TEP's ability to complete and integrate acquisitions from TD or from third parties, including its acquisition of an additional 24.99% membership interest in Rockies Express from TD that was completed on March 31, 2017 and its acquisition of a 100% membership interest in NatGas and Terminals from TD that was completed in January 2017;

• the demand for TEP's services, including crude oil transportation, storage and terminalling services, natural gas transportation, storage and processing services and water business services;

• large or multiple customer defaults, including defaults resulting from actual or potential insolvencies;

• our ability to successfully implement our business plan;

• changes in general economic conditions;

• competitive conditions in our industry;

28

• the effects of existing and future laws and governmental regulations;

• actions taken by third-party operators, processors and transporters;

• our ability to complete internal growth projects on time and on budget;

• the price and availability of debt and equity financing;

• the level of production of crude oil, natural gas and other hydrocarbons and the resultant market prices of crude oil, natural gas, natural gas liquids, and other hydrocarbons;

• the availability and price of natural gas and crude oil, and fuels derived from both, to the consumer compared to the price of alternative and competing fuels;

• competition from the same and alternative energy sources;

• energy efficiency and technology trends;

• operating hazards and other risks incidental to transporting, storing and terminalling crude oil, transporting, storing and processing natural gas, and transporting, gathering and disposing of water produced in connection with hydrocarbon exploration and production activities;

• environmental liabilities or events that are not covered by an indemnity, insurance or existing reserves;

• natural disasters, weather-related delays, casualty losses and other matters beyond our control;

• interest rates;

• labor relations;

• changes in tax status;

• the effects of future litigation; and

• certain factors discussed elsewhere in this Quarterly Report.

Forward-looking statements speak only as of the date on which they are made. While we may update these statements from time to time, we are not required to do so other than pursuant to the securities laws.

Overview

TEGP is a limited partnership that has elected to be treated as a corporation for U.S. federal income tax purposes. We were formed as part of a reorganization involving entities that were previously controlled by Tallgrass Equity to effect the TEGP IPO, which was completed on May 12, 2015.

Our sole cash-generating asset is an approximate 36.94% controlling membership interest in Tallgrass Equity. Tallgrass Equity's sole cash-generating assets consist of the direct and indirect partnership interests in TEP as described below:

• 100% of the outstanding membership interests in TEP GP, which owns all of the general partner interest in TEP as well as all of the TEP IDRs. The general partner interest in TEP is represented by 834,391 general partner units, representing an approximate 1.14% general partner interest in TEP at May 3, 2017.

• 20,000,000 TEP common units, representing an approximate 27.30% limited partner interest in TEP at May 3, 2017.

TEP is a publicly traded, growth-oriented limited partnership formed in 2013 to own, operate, acquire and develop midstream energy assets in North America. TEP's operations are located in and provide services to certain key United States hydrocarbon basins, including the Denver-Julesburg, Powder River, Wind River, Permian and Hugoton-Anadarko Basins and the Niobrara, Mississippi Lime, Eagle Ford, Bakken, Marcellus, and Utica shale formations.

TEP intends to continue to leverage its relationship with TD and utilize the significant experience of its management team to execute its growth strategy of acquiring midstream assets from TD and third parties, increasing utilization of its existing assets and expanding its systems through construction of additional assets.

Our reportable business segments are:

• Crude Oil Transportation & Logistics—the ownership and operation of a FERC-regulated crude oil pipeline system and crude oil storage and terminalling facilities;

• Natural Gas Transportation & Logistics—the ownership and operation of FERC-regulated interstate natural gas pipelines and integrated natural gas storage facilities; and

29

• Processing & Logistics—the ownership and operation of natural gas processing, treating and fractionation facilities, the provision of water business services primarily to the oil and gas exploration and production industry and the transportation of NGLs.

Financial Presentation

TEGP has no operations outside of its indirect ownership interests in TEP. TEGP is the managing member of and therefore controls Tallgrass Equity. Tallgrass Equity, in turn, controls TEP through the direct ownership of 100% of TEP GP, TEP's general partner. As a result, under GAAP, TEGP consolidates Tallgrass Equity, TEP GP, TEP, and TEP's subsidiaries. As such, TEGP's results of operations will not differ materially from the results of operations of TEP. The most noteworthy reconciling items between TEGP's condensed consolidated financial statements and TEP's condensed consolidated financial statements primarily relate to (i) the inclusion of the Tallgrass Equity revolving credit facility, (ii) the impact of TEGP's election to be treated as a corporation for U.S. federal income tax purposes and (iii) the presentation of noncontrolling interests in Tallgrass Equity and TEP. The interests in Tallgrass Equity and TEP that are not directly or indirectly owned by TEGP will be reflected as being attributable to noncontrolling interests in TEGP's condensed consolidated financial statements.

Recent Developments

TEGP Distribution Announced

On April 17, 2017, the Board of Directors of our general partner declared a cash distribution for the quarter ended March 31, 2017 of $0.2875 per Class A share. The distribution will be paid on May 15, 2017, to Class A shareholders of record on April 28, 2017.

TEP Distribution Announced

On April 17, 2017, the Board of Directors of TEP's general partner declared a cash distribution for the quarter ended March 31, 2017 of $0.835 per common unit. The distribution will be paid on May 15, 2017, to unitholders of record on April 28, 2017.

How We Evaluate Our Operations

We evaluate our results using, among other measures, cash distributions received from Tallgrass Equity, TEP's contract profile and volumes, and operating costs and expenses of TEGP and its consolidated subsidiaries.

Cash Distributions Received from Tallgrass Equity

Our cash flow is currently generated solely by distributions received from Tallgrass Equity. Tallgrass Equity currently receives all of its cash flows from distributions on its direct and indirect partnership interests in TEP. Tallgrass Equity is therefore entirely dependent upon the ability of TEP to make cash distributions to its partners.

TEP's Contract Profile and Volumes

TEP's results are driven primarily by the volume of crude oil transportation, storage and terminalling capacity, natural gas transportation and storage capacity, NGL transportation capacity, and water transportation, gathering and disposal capacity under firm fee contracts, as well as the volume of natural gas that it processes and the fees assessed for such services.

Operating Costs and Expenses

The primary components of TEP's operating costs and expenses that we evaluate include cost of sales, cost of transportation services, operations and maintenance and general and administrative costs. TEP's operating expenses are driven primarily by expenses related to the operation, maintenance and growth of its asset base.

30

Results of Operations

The following provides a summary of our operating metrics for the periods indicated:

	Three Months Ended March 31,
	2017	2016
Crude Oil Transportation & Logistics Segment:
Crude oil transportation average contracted capacity (Bbls/d) (1)	298,580	290,580
Crude oil transportation average throughput (Bbls/d)	261,904	291,274
Natural Gas Transportation & Logistics Segment:
Gas transportation average firm contracted volumes (MMcf/d) (2)	1,609	1,646
Processing & Logistics Segment:
Natural gas processing inlet volumes (MMcf/d)	103	98
Freshwater approximate average volumes (Bbls/d)	64,754	2,802
Produced water gathering and disposal approximate average volumes (Bbls/d)	9,760	10,726

⁽¹⁾  We are required to make no less than 10% of the contractible capacity of the Pony Express System available for non-contract, or "walk-up", shippers.

⁽²⁾  Volumes transported under firm fee contracts, excluding Rockies Express.

31

The following provides a summary of our consolidated results of operations for the periods indicated:

	Three Months Ended March 31,
	2017			2016
	(in thousands, except operating data)
Revenues:
Crude oil transportation services	$	84,331		$	94,572
Natural gas transportation services	31,685			29,280
Sales of natural gas, NGLs, and crude oil	15,381			13,926
Processing and other revenues	13,003			9,390
Total Revenues	144,400			147,168
Operating Costs and Expenses:
Cost of sales (exclusive of depreciation and amortization shown below)	12,370			13,568
Cost of transportation services (exclusive of depreciation and amortization shown below)	13,503			13,529
Operations and maintenance	12,903			12,958
Depreciation and amortization	21,403			22,007
General and administrative	14,217			14,011
Taxes, other than income taxes	8,226			7,650
Gain on disposal of assets	(1,448		)	—
Total Operating Costs and Expenses	81,174			83,723
Operating Income	63,226			63,445
Other Income (Expense):
Interest expense, net	(16,017		)	(8,677		)
Unrealized gain (loss) on derivative instrument	1,885			(8,946		)
Equity in earnings of unconsolidated investments	20,738			709
Other income, net	70			566
Total Other Income (Expense)	6,676			(16,348		)
Net income before tax	69,902			47,097
Deferred income tax expense	(2,664		)	(2,791		)
Net income	67,238			44,306
Net income attributable to noncontrolling interests	(55,209		)	(33,032		)
Net income attributable to TEGP	$	12,029		$	11,274

Three Months Ended March 31, 2017 Compared to the Three Months Ended March 31, 2016

Revenues. Total revenues were $144.4 million for the three months ended March 31, 2017, compared to $147.2 million for the three months ended March 31, 2016, which represents a decrease of $2.8 million, or 2%, in total revenues. The overall decrease in revenue was largely driven by decreased revenues of $9.6 million in the Crude Oil Transportation & Logistics segment, partially offset by increased revenues of $3.8 million and $3.1 million in the Natural Gas Transportation & Logistics and Processing & Logistics segments, respectively, as discussed further below.

Operating costs and expenses. Operating costs and expenses were $81.2 million for the three months ended March 31, 2017 compared to $83.7 million for the three months ended March 31, 2016, which represents a decrease of $2.5 million, or 3%. The overall decrease in operating costs and expenses is driven by decreased operating costs and expenses of $2.1 million, $0.8 million, and $0.3 million in the Natural Gas Transportation & Logistics, Processing & Logistics, and Crude Oil Transportation & Logistics segments, respectively, as discussed further below, partially offset by a $0.7 million increase in corporate general and administrative costs primarily due to increased costs associated with equity-based compensation grants under TEP's Long-term Incentive Plan as well as legal costs associated with transactions during the three months ended March 31, 2017.

32

Interest expense, net. Interest expense of $16.0 million for the three months ended March 31, 2017 was primarily composed of interest and fees associated with the TEP and Tallgrass Equity revolving credit facilities and the 2024 Notes issued on September 1, 2016. Interest expense of $8.7 million for the three months ended March 31, 2016 was primarily composed of interest and fees associated with the TEP and Tallgrass Equity revolving credit facilities. The increase in interest and fees during the three months ended March 31, 2017 compared to the three months ended March 31, 2016 was primarily associated with TEP's revolving credit facility, due to increased borrowings to fund a portion of TEP's 2016 acquisition of a 25% membership interest in Rockies Express and our recent acquisitions of Terminals and NatGas effective January 1, 2017, as well as the higher incremental borrowing rate on the 2024 Notes, the proceeds of which were used to repay borrowings under TEP's revolving credit facility.

Unrealized gain (loss) on derivative instrument. Unrealized gain on derivative instrument of $1.9 million for the three months ended March 31, 2017 and unrealized loss on derivative instrument of $8.9 million for the three months ended March 31, 2016 represents the change in fair value of the call option received from TD as part of the acquisition of an additional 31.3% membership interest in Pony Express effective January 1, 2016. As of February 1, 2017, no common units remained subject to the call option.

Equity in earnings of unconsolidated investments. Equity in earnings of unconsolidated investments was $20.7 million and $0.7 million for the three months ended March 31, 2017 and 2016, respectively. Equity in earnings of unconsolidated investments of $20.7 million for three months ended March 31, 2017 primarily reflects our portion of earnings and the amortization of a negative basis difference of $3.5 million associated with TEP's 25% membership interest in Rockies Express acquired in May 2016, as well as $0.7 million related to our investment in Deeprock Development. Equity in earnings of unconsolidated investments of $0.7 million for the three months ended March 31, 2016 reflects our portion of earnings associated with Deeprock Development. For additional information, see Note 8 – Investments in Unconsolidated Affiliates.

Other income, net. Other income, net typically includes rental income and income earned from certain customers related to the capital costs we incurred to connect these customers to our system. Other income for the three months ended March 31, 2017 was $0.1 million compared to $0.6 million for the three months ended March 31, 2016. The decrease in other income was driven by lower income related to reimbursable projects at TIGT due to contract modifications.

Deferred income tax expense. Deferred income tax expense for the three months ended March 31, 2017 was $2.7 million, compared to a deferred income tax expense of $2.8 million for the three months ended March 31, 2016. The projected annual effective tax rate increased to 7.64% for the three months ended March 31, 2017 from 6.43% during the three months ended March 31, 2016. The increase in deferred tax expense driven by the increase in taxable income and the increase in the annual effective tax rate was offset by a deferred tax benefit of $2.7 million related to the impact of changes in state apportionment rates on the total deferred tax asset during the three months ended March 31, 2017.

The following provides a summary of our Crude Oil Transportation & Logistics segment results of operations for the periods indicated:

Segment Financial Data - Crude Oil Transportation & Logistics (1)	Three Months Ended March 31,
	2017		2016
	(in thousands)
Revenues:
Crude oil transportation services	$	84,331	$	94,572
Sales of natural gas, NGLs, and crude oil	663		—
Processing and other revenues	98		82
Total revenues	85,092		94,654
Operating costs and expenses:
Cost of transportation services	11,193		11,868
Operations and maintenance	3,750		4,312
Depreciation and amortization	13,407		12,954
General and administrative	5,529		5,508
Taxes, other than income taxes	6,498		6,051
Total operating costs and expenses	40,377		40,693
Operating income	$	44,715	$	53,961

33

⁽¹⁾  Segment results as presented represent total revenue and operating income, including intersegment activity. For reconciliations to the consolidated financial data, see Note 15 – Reportable Segments to the accompanying condensed consolidated financial statements.

Three Months Ended March 31, 2017 Compared to the Three Months Ended March 31, 2016

Revenues. Crude Oil Transportation & Logistics segment revenues were $85.1 million for the three months ended March 31, 2017, compared to $94.7 million for the three months ended March 31, 2016, which represents a decrease of $9.6 million, or 10%, in segment revenues driven by a $10.2 milliondecrease in crude oil transportation services, primarily due to a $6.6 million increase in shipper deficiency payments and a $5.5 million decrease in the incremental barrels delivered during the three months ended March 31, 2017 compared to the three months ended March 31, 2016, partially offset by noncash mark-to-market adjustments on crude oil commodity derivative contracts of $0.7 million during the three months ended March 31, 2017.

Operating costs and expenses. Operating costs and expenses in the Crude Oil Transportation & Logistics segment were $40.4 million for the three months ended March 31, 2017 compared to $40.7 million for the three months ended March 31, 2016, which represents a decrease of $0.3 million, or 1%. The overall decrease in operating costs and expenses was primarily driven by a decrease in cost of transportation services driven by lower throughput volumes during the three months ended March 31, 2017 compared to the three months ended March 31, 2016 and a decrease in operations and maintenance expense, partially offset by increased depreciation and amortization and taxes, other than income taxes, driven by assets placed in service throughout 2016.

The following provides a summary of our Natural Gas Transportation & Logistics segment results of operations for the periods indicated:

Segment Financial Data - Natural Gas Transportation & Logistics (1)	Three Months Ended March 31,
	2017		2016
	(in thousands)
Revenues:
Natural gas transportation services	$	33,130	$	30,635
Sales of natural gas, NGLs, and crude oil	1,651		348
Processing and other revenues	1,647		1,685
Total revenues	36,428		32,668
Operating costs and expenses:
Cost of sales	1,070		1,146
Cost of transportation services	760		2,455
Operations and maintenance	6,478		5,880
Depreciation and amortization	4,783		5,878
General and administrative	3,794		3,788
Taxes, other than income taxes	1,375		1,176
Total operating costs and expenses	18,260		20,323
Operating income	$	18,168	$	12,345

⁽¹⁾  Segment results as presented represent total revenue and operating income, including intersegment activity. For reconciliations to the consolidated financial data, see Note 15 – Reportable Segments to the accompanying condensed consolidated financial statements.

Three Months Ended March 31, 2017 Compared to the Three Months Ended March 31, 2016

Revenues. Natural Gas Transportation & Logistics segment revenues were $36.4 million for the three months ended March 31, 2017, compared to $32.7 million for the three months ended March 31, 2016, which represents an increase of $3.8 million, or 12%, in segment revenues due to a $2.5 million increase in natural gas transportation services driven by increased tariff rates at TIGT as a result of the rate case settlement during the second quarter of 2016, as well as increased volumes transported at Trailblazer, and a $1.3 million increase in natural gas sales driven by increased volumes sold and a 30% increase in natural gas prices during the three months ended March 31, 2017 compared to the three months ended March 31, 2016.

34

Operating costs and expenses. Operating costs and expenses in the Natural Gas Transportation & Logistics segment were $18.3 million for the three months ended March 31, 2017, compared to $20.3 million for the three months ended March 31, 2016, which represents a decrease of $2.1 million, or 10%. The overall decrease in operating costs and expenses was primarily due to a $1.7 million decrease in the cost of transportation services driven by lower costs associated with fuel reimbursements as a result of changes to TIGT's fuel recovery structure and a $1.1 million decrease in depreciation and amortization driven by changes in depreciation rates at TIGT, both as a result of the rate case settlement discussed above, partially offset by a $0.6 million increase in operations and maintenance expense driven by increased integrity spending during the three months ended March 31, 2017.

The following provides a summary of our Processing & Logistics segment results of operations for the periods indicated:

Segment Financial Data - Processing & Logistics (1)	Three Months Ended March 31,
	2017			2016
	(in thousands)
Revenues:
Sales of natural gas, NGLs, and crude oil	$	13,067		$	13,578
Processing and other revenues	11,258			7,623
Total revenues	24,325			21,201
Operating costs and expenses:
Cost of sales	11,401			12,432
Cost of transportation services	2,894			551
Operations and maintenance	2,675			2,766
Depreciation and amortization	3,213			3,175
General and administrative	1,121			1,676
Taxes, other than income taxes	353			423
Gain on disposal of assets	(1,448		)	—
Total operating costs and expenses	20,209			21,023
Operating income	$	4,116		$	178

⁽¹⁾  Segment results as presented represent total revenue and operating income, including intersegment activity. For reconciliations to the consolidated financial data, see Note 15 – Reportable Segments to the accompanying condensed consolidated financial statements.

Three Months Ended March 31, 2017 Compared to the Three Months Ended March 31, 2016

Revenues. Processing & Logistics segment revenues were $24.3 million for the three months ended March 31, 2017, compared to $21.2 million for the three months ended March 31, 2016, which represents a $3.1 million, or 15%, increase in segment revenues. The increase in segment revenues was primarily due to a $3.6 million increase in processing and other revenues driven by increased revenue from water business services of $4.2 million from increased customer volumes, partially offset by lower processing fees and a $0.5 million decrease in NGL sales in the three months ended March 31, 2017 compared to the three months ended March 31, 2016.

Operating costs and expenses. Operating costs and expenses in the Processing & Logistics segment were $20.2 million for the three months ended March 31, 2017 compared to $21.0 million for the three months ended March 31, 2016, which represents a decrease of $0.8 million, or 4%. The decrease in operating costs and expenses was primarily due to a $1.4 million gain on disposal of assets from insurance proceeds received during the three months ended March 31, 2017 related to assets destroyed by a 2016 fire caused by a lightning strike, as well as a $1.0 million decrease in cost of sales driven by lower producer settlements and NGL sales volumes and a $0.6 million decrease in general and administrative expenses. These decreases were partially offset by a $2.3 million increase in cost of transportation services driven by increased volumes in water business services as discussed above.

35

Liquidity and Capital Resources Overview

Our primary sources of liquidity for the three months ended March 31, 2017 were borrowings under TEP's revolving credit facility, cash generated from operations, and proceeds from the issuance of TEP common units. We expect our sources of liquidity in the future to include:

• cash generated from our operations;

• borrowing capacity available under TEP's revolving credit facility; and

• future issuances of additional partnership units and/or debt securities.

We believe that cash on hand, cash generated from operations, and availability under TEP's revolving credit facility will be adequate to meet our operating needs, our planned short-term maintenance capital and debt service requirements, and our planned cash distributions to shareholders. We believe that future internal growth projects or potential acquisitions will be funded primarily through a combination of borrowings under TEP's revolving credit facility and issuances of debt and/or equity securities at TEP. For additional information regarding our revolving credit facilities and senior unsecured notes, see Note 10 – Long-term Debt. For additional information regarding our equity transactions during the quarter, see Note 11 – Partnership Equity and Distributions.

Our total liquidity as of March 31, 2017 and December 31, 2016 was as follows:

	March 31, 2017			December 31, 2016
	(in thousands)
Cash on hand	$	2,053		$	2,459
Total capacity under the TEP revolving credit facility	1,750,000			1,750,000
Less: Outstanding borrowings under the TEP revolving credit facility	(1,567,000		)	(1,015,000		)
Available capacity under the TEP revolving credit facility	183,000			735,000
Total capacity under the Tallgrass Equity revolving credit facility	$	150,000		$	150,000
Less: Outstanding borrowings under the Tallgrass Equity revolving credit facility	(148,000		)	(148,000		)
Available capacity under the Tallgrass Equity revolving credit facility	$	2,000		$	2,000
Total Liquidity	$	187,053		$	739,459

Working Capital

Working capital is the amount by which current assets exceed current liabilities. While various other factors may impact our working capital requirements from period to period, our working capital requirements have typically been, and we expect will continue to be, driven by changes in accounts receivable, accounts payable and deferred revenue. TEP manages its working capital needs through borrowings and repayments of borrowings under its revolving credit facility. Factors impacting changes in accounts receivable and accounts payable could include the timing of collections from customers, payments to suppliers, and the level of spending for capital expenditures. Changes in the market prices of energy commodities, primarily NGLs, that we buy and sell in the normal course of business can also impact the timing of changes in accounts receivable and accounts payable. Factors impacting deferred revenue include the volume of barrels transported, the amount of deficiency payments received, and the volume of prior deficiencies utilized during the period.

As of March 31, 2017, we had a working capital deficit of $58.6 million compared to a working capital deficit of $37.7 million at December 31, 2016, which represents a decrease in working capital of $20.9 million. The overall decrease in working capital was primarily attributable to changes in the following components:

• an increase in deferred revenue of $16.3 million primarily from deficiency payments collected by Pony Express;

• a decrease in derivative assets at fair value of $10.7 million as TEP exercised the remainder of the call option granted by TD; and

• an increase in accrued taxes of $4.9 million due to higher estimated property taxes for 2017 at Pony Express.

These working capital decreases were partially offset by a decrease in accrued liabilities of $10.0 million primarily due to a decrease in interest accrued at March 31, 2017 compared to December 31, 2016 due to an interest payment on the 2024 Notes in March 2017.

36

A material adverse change in operations, available financing under our revolving credit facility, or available financing from the equity or debt capital markets could impact our ability to fund our requirements for liquidity and capital resources in the future.

Cash Flows

The following table and discussion presents a summary of our cash flow for the periods indicated:

	Three Months Ended March 31,
	2017			2016
	(in thousands)
Net cash provided by (used in):
Operating activities	$	102,166		$	91,695
Investing activities	$	(562,042	)	$	(70,363	)
Financing activities	$	459,470		$	(19,767	)

Three Months Ended March 31, 2017 Compared to the Three Months Ended March 31, 2016

Operating Activities. Cash flows provided by operating activities were $102.2 million and $91.7 million for the three months ended March 31, 2017 and 2016, respectively. The increase in net cash flows provided by operating activities of $10.5 million was primarily driven by the increase in operating results as discussed above, $20.7 million of distributions from unconsolidated investments received primarily from Rockies Express, and a net increase in cash inflows from changes in working capital, primarily driven by a $9.0 million increase in deferred revenue associated with deficiency payments collected by Pony Express during the three months ended March 31, 2017.

Investing Activities. Cash flows used in investing activities were $562.0 million for the three months ended March 31, 2017. Investing cash outflows for the three months ended March 31, 2017 were primarily driven by:

• cash outflows of $400.0 million for the acquisition of an additional 24.99% membership interest in Rockies Express on March 31, 2017;

• cash outflows of $140.0 million for the acquisition of Terminals and NatGas on January 1, 2017; and

• capital expenditures of $26.8 million, primarily due to spending on an additional freshwater connection at Water Solutions and remediation digs on the Pony Express System as discussed in Note 14 – Legal and Environmental Matters.

These cash outflows were partially offset by $10.1 million of distributions from Rockies Express in excess of cumulative earnings recognized.

Cash flows used in investing activities were $70.4 million for the three months ended March 31, 2016. Investing cash outflows for the three months ended March 31, 2016 were primarily driven by:

• cash outflows of $49.1 million for a portion of the acquisition of an additional 31.3% membership interest in Pony Express on January 1, 2016, the remainder of which is classified as a financing activity as discussed below; and

• capital expenditures of $21.2 million, primarily due to post in-service spending on Pony Express System projects.

Financing Activities. Cash flows provided by financing activities were $459.5 million for the three months ended March 31, 2017. Financing cash inflows for the three months ended March 31, 2017 were primarily driven by:

• net borrowings under the TEP revolving credit facility of $552.0 million; and

• TEP's issuance of 2,087,647 common units under its Equity Distribution Agreements for net cash proceeds of $99.4 million.

These financing cash inflows were partially offset by cash outflows of:

• $72.4 million for TEP's exercise of the remainder of the call option granted by TD covering 1,703,094 common units;

• distributions to noncontrolling interests of $71.4 million, consisting of distributions to TEP unitholders of $42.5 million, Tallgrass Equity distributions to the Exchange Right Holders of $27.5 million, and distributions to Pony Express and Water Solutions noncontrolling interests of $1.4 million;

• $35.3 million for TEP's 736,262 common units repurchased from TD; and

• distributions to Class A shareholders of $16.1 million.

37

Cash flows used in financing activities were $19.8 million for the three months ended March 31, 2016. Financing cash outflows for the three months ended March 31, 2016 were primarily driven by:

• cash outflows of $425.9 million for the portion of the acquisition of an additional 31.3% membership interest in Pony Express which exceeds the cumulative capital spending on the underlying assets acquired;

• distributions to noncontrolling interests of $50.9 million, which consisted of distributions to TEP unitholders of $30.2 million, Tallgrass Equity distributions to the Exchange Right Holders of $18.9 million, and distributions to Pony Express and Water Solutions noncontrolling interests of $1.8 million; and

• distributions to TEGP Class A shareholders of $8.3 million.

These financing cash outflows were partially offset by cash inflows from:

• net borrowings under the TEP revolving credit facility of $447.0 million;

• the issuance of 337,311 common units under the Equity Distribution Agreement for net cash proceeds of $12.6 million; and

• contributions from noncontrolling interests of $7.2 million, which primarily consisted of contributions from TD to Pony Express.

Distributions

Distributions to our Class A shareholders. We distribute 100% of our available cash at the end of each quarter to Class A shareholders of record beginning with the quarter ended June 30, 2015. Our sole cash-generating asset is an approximate 36.94% controlling membership interest in Tallgrass Equity. Tallgrass Equity's sole cash-generating assets consist of direct and indirect partnership interests in TEP, as detailed above in "—Overview". Available cash is generally defined as all of our cash and cash equivalents on hand at the end of each quarter (including expected distributions from Tallgrass Equity in respect of such quarter) less reserves established at the discretion of our general partner as permitted by our partnership agreement. For a discussion of factors and trends impacting TEP's business, which in turn impacts our ability to pay cash distributions to our Class A shareholders, please see "—Factors and Trends Impacting Our Business" in our 2016 Form 10-K.

Our distribution for the three months ended March 31, 2017, in the amount of $0.2875 per Class A share, or $16.7 million in the aggregate, was announced on April 17, 2017 and will be paid on May 15, 2017 to Class A shareholders of record on April 28, 2017.

Capital Requirements

The midstream energy business can be capital-intensive, requiring significant investment to maintain and upgrade existing operations. Our capital requirements have consisted primarily of, and we anticipate will continue to consist of, the following:

• maintenance capital expenditures, which are cash expenditures incurred (including expenditures for the construction or development of new capital assets) that we expect to maintain our long-term operating income or operating capacity. These expenditures typically include certain system integrity, compliance and safety improvements; and

• expansion capital expenditures, which are cash expenditures we expect will increase our operating income or operating capacity over the long-term. Expansion capital expenditures include acquisitions or capital improvements (such as additions to or improvements on the capital assets owned, or acquisition or construction of new capital assets).

We expect to incur approximately $91 million for capital expenditures in 2017, of which approximately $75 million is expected for expansion projects and approximately $16 million, net of anticipated reimbursements, is expected for maintenance capital expenditures.

The determination of capital expenditures as maintenance or expansion is made at the individual asset level during our budgeting process and as we approve, execute, and monitor our capital spending. The following table summarizes the maintenance and expansion capital expenditures incurred at our consolidated entities:

	Three Months Ended March 31,
	2017		2016
	(in thousands)
Maintenance capital expenditures	$	63	$	2,168
Expansion capital expenditures	22,420		8,392
Total capital expenditures incurred	$	22,483	$	10,560

38

Capital expenditures incurred represent capital expenditures paid and accrued during the period. Capital expenditures are presented net of noncontrolling interest, and contributions and reimbursements received. The decrease in maintenance capital expenditures to $0.1 million for the three months ended March 31, 2017 from $2.2 million for the three months ended March 31, 2016 is primarily driven by contributions from TD to TEP in order to indemnify TEP for certain out of pocket costs related to repairing or remediating the Trailblazer Pipeline, as discussed further in Note 14 – Legal and Environmental Matters. Maintenance capital expenditures on our assets occur on a regular schedule, but most major maintenance projects are not required every year so the level of maintenance capital expenditures naturally varies from year to year and from quarter to quarter. The increase in expansion capital expenditures to $22.4 million for the three months ended March 31, 2017 is primarily driven by increased expansion capital expenditures in the Processing and Logistics and Crude Oil Transportation & Logistics segments. Expansion capital expenditures for the three months ended March 31, 2017 consisted primarily of spending on an additional freshwater connection at Water Solutions and remediation digs on the Pony Express System, as discussed in Note 14 – Legal and Environmental Matters. Expansion capital expenditures of $8.4 million for the three months ended March 31, 2016 consisted primarily of post in-service spending on Pony Express System projects and costs associated with construction of the Sterling Terminal.

In addition, we invested cash in unconsolidated affiliates of $6.7 million and $0.1 million during the three months ended March 31, 2017 and 2016, respectively, to fund our share of capital projects.

We intend to make cash distributions to our Class A shareholders. Due to our cash distribution policy, we expect that we will distribute available cash to our Class A shareholders on a quarterly basis. We expect TEP to fund future capital expenditures with funds generated from its operations, borrowings under its revolving credit facility, the issuance of additional partnership units and/or the issuance of long-term debt. If these sources are not sufficient, TEP may reduce its discretionary spending.

Contractual Obligations

There have been no material changes in our contractual obligations as reported in our 2016 Form 10-K.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements.

Critical Accounting Policies and Estimates

The critical accounting policies and estimates used in the preparation of our condensed consolidated financial statements are set forth in our 2016 Form 10-K for the year ended December 31, 2016 and have not changed.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Commodity Price Risk

As of March 31, 2017 approximately 99% of our reserved processing capacity was subject to firm or volumetric fee contracts, with the majority of fee revenue based on the volumes actually processed. The remaining 1% was subject to commodity sensitive contracts such as percent of proceeds or keep whole processing contracts. The profitability of our commodity sensitive processing contracts that include keep whole or percent of proceeds components is affected by volatility in prevailing NGL and natural gas prices. Starting in the second half of 2014, the prices of crude oil, natural gas, and NGLs became extremely volatile and declined significantly. Downward pressure and volatility of commodity prices continued in 2015 before recovering somewhat in 2016 and 2017. These declines directly and indirectly resulted in lower realizations and processing volumes on our percent of proceeds and keep whole processing contracts. Our Processing & Logistics segment comprised approximately 7% and less than 1% of our operating income for the three months ended March 31, 2017 and 2016, respectively.

Historically, we have had a limited amount of direct commodity price exposure related to natural gas collected for electrical compression costs and lost and unaccounted for gas on the TIGT System. Accordingly, we have historically entered into derivative contracts with third parties for a substantial majority of the natural gas we expected to collect for the purpose of hedging our commodity price exposures. In 2016, we also entered into long natural gas swaps covering a portion of the natural gas that TMID expects to purchase in 2017. In addition, we have a limited amount of direct commodity price exposure related to crude oil collected as part of our contractual pipeline loss allowance at Pony Express and Terminals. During 2016, we began entering into derivative contracts for the sale of crude oil inventory.

39

We measure the risk of price changes in our crude oil and natural gas swaps utilizing a sensitivity analysis model. The sensitivity analysis measures the potential income or loss (i.e., the change in fair value of the derivative instruments) based upon a hypothetical 10% movement in the underlying quoted market prices. In addition to these variables, the fair value of each portfolio is influenced by fluctuations in the notional amounts of the instruments and the discount rates used to determine the present values. We enter into derivative contracts solely for the purpose of mitigating the risks that accompany certain of our business activities and, therefore, both the sensitivity analysis model and the change in the market value of our outstanding derivative contracts are offset largely by changes in the value of the underlying physical commodity prices.

The following table summarizes our commodity derivatives and the change in fair value that would be expected from a 10% price increase or decrease as of March 31, 2017, assuming a parallel shift in the forward curve through the end of 2017:

	Fair Value		Effect of 10% Price Increase			Effect of 10% Price Decrease
	(in thousands)
Crude oil derivative contracts (1)	$	223	$	(638	)	$	638
Natural gas derivative contracts (2)	$	81	$	93		$	(93	)

⁽¹⁾  Represents the sale of 125,000 barrels of crude oil by our Crude Oil Transportation & Logistics segment which will settle throughout 2017.

⁽²⁾  Represents long natural gas swaps outstanding with a notional volume of approximately 0.3 Bcf covering a portion of the natural gas that is expected to be purchased by our Processing & Logistics segment throughout 2017.

The Commodity Futures Trading Commission ("CFTC") has promulgated regulations to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act's changes to the Commodity Exchange Act, including the definition of commodity-based swaps subject to those regulations. The CFTC regulations implemented new reporting and record keeping requirements related to those swap transactions and a mandatory clearing and exchange-execution regime for various types, categories or classes of swaps, subject to certain exemptions, including the trade-option and end-user exemptions. Although we anticipate that most, if not all, of our swap transactions should continue to qualify for an exemption to the clearing and exchange-execution requirements, we will still be subject to record keeping and reporting requirements.

Interest Rate Risk

As described in Note 10 – Long-term Debt, Tallgrass Equity currently has $148 million in outstanding borrowings under its revolving credit facility. Borrowings under the credit facility bear interest, at Tallgrass Equity's option, at either (a) a base rate, which will be a rate equal to the greatest of (i) the prime rate, (ii) the U.S. federal funds rate plus 0.5% and (iii) a one-month reserve adjusted Eurodollar rate plus 1.00% or (b) a reserve adjusted Eurodollar rate, plus, in each case, an applicable margin. For loans bearing interest based on the base rate, the applicable margin is 1.50%, and for loans bearing interest based on the reserve adjusted Eurodollar rate, the applicable margin is 2.50%.

On September 1, 2016 TEP issued $400 million in 5.50% senior notes due 2024. In addition, TEP currently has a $1.75 billion revolving credit facility with borrowings of approximately $1.57 billion as of March 31, 2017. Borrowings under the revolving credit facility will bear interest, at TEP's option, at either (a) a base rate, which will be a rate equal to the greatest of (i) the prime rate, (ii) the U.S. federal funds rate plus 0.5% and (iii) a one-month reserve adjusted Eurodollar rate plus 1.00% or (b) a reserve adjusted Eurodollar Rate, plus, in each case, an applicable margin. The applicable margin ranges from 0.75% to 2.75%, based upon TEP's total leverage ratio and whether it has elected the base rate or the reserve adjusted Eurodollar rate.

We do not currently hedge the interest rate risk on our borrowings under the revolving credit facilities. However, in the future we may consider hedging the interest rate risk or may consider choosing longer Eurodollar borrowing terms in order to fix all or a portion of our borrowings for a period of time. We estimate that a 1% increase in interest rates would decrease the fair value of the debt by $0.9 million based on our debt obligations as of March 31, 2017.

Credit Risk

We are exposed to credit risk. Credit risk represents the loss that we would incur if a counterparty fails to perform under its contractual obligations. We manage our exposure to credit risk associated with customers to whom we extend credit through a credit approval process which includes credit analysis, the establishment of credit limits and ongoing monitoring procedures. We may request letters of credit, cash collateral, prepayments or guarantees as forms of credit support.

A substantial majority of our revenue is produced under long-term firm fee contracts with high-quality customers. The customer base we currently serve under these contracts generally has a strong credit profile, with a majority of our revenues derived from customers who have BB+ or Ba1 and better credit ratings or are part of corporate families with such credit ratings as of March 31, 2017.

40

We also have indirect credit risk exposure with respect to our investment in Rockies Express. See Item 1A.—Risk Factors in our 2016 Form 10-K for additional information.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our principal executive officer and principal financial officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a- 15(e) or Rule 15d- 15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this report, and has concluded that our disclosure controls and procedures are effective to provide reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission's rules and forms including, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosures.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended March 31, 2017 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

41

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

See Note 14 – Legal and Environmental Matters to the condensed consolidated financial statements included in Part I—Item 1.—Financial Statements of this Quarterly Report, which is incorporated herein by reference.

Item 1A. Risk Factors

Item 1A of our 2016 Form 10-K for the year ended December 31, 2016 sets forth information relating to important risks and uncertainties that could materially adversely affect our business, financial condition or operating results. Those risk factors continue to be relevant to an understanding of our business, financial condition and operating results for the quarter ended March 31, 2017. There have been no material changes to the risk factors contained in our 2016 Form 10-K for the year ended December 31, 2016.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits

Exhibit No.	Description
10.1	Purchase and Sale Agreement, dated as of January 1, 2017, by and among Tallgrass Energy Partners, LP, Tallgrass Development, LP and Tallgrass Operations, LLC (incorporated by reference to Exhibit 10.1 to Tallgrass Energy Partner, LP’s Current Report on Form 8-K filed on January 3, 2017).
10.2	Purchase and Sale Agreement, dated March 31, 2017, by and among Tallgrass Energy Partners, LP, Rockies Express Holdings, LLC and Tallgrass Development, LP (incorporated by reference to Exhibit 10.1 to Tallgrass Energy Partners, LP’s Current Report on Form 8-K filed on April 3, 2017).
31.1*	Rule 13a-14(a)/15d-14(a) Certification of David G. Dehaemers, Jr.
31.2*	Rule 13a-14(a)/15d-14(a) Certification of Gary J. Brauchle.
32.1*	Section 1350 Certification of David G. Dehaemers, Jr.
32.2*	Section 1350 Certification of Gary J. Brauchle.
101.INS*	XBRL Instance Document.
101.SCH*	XBRL Taxonomy Extension Schema Document.
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document.

* - filed herewith

42

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		Tallgrass Energy GP, LP
		(registrant)
		By:	TEGP Management, LLC, its general partner
Date:	May 3, 2017	By:	/s/ Gary J. Brauchle
			Name:	Gary J. Brauchle
			Title:	Executive Vice President and Chief Financial Officer
				(Duly Authorized Officer and Principal Financial Officer)

43

EX-31.1

Exhibit 31.1

Certification by Chief Executive Officer pursuant to

Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934,

as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, David G. Dehaemers, Jr., certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Tallgrass Energy GP, LP;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

By:	/s/ David G. Dehaemers, Jr.
	David G. Dehaemers, Jr.
	President and Chief Executive Officer of TEGP Management, LLC (the general partner of Tallgrass Energy GP, LP)

Date: May 3, 2017

EX-31.2

Exhibit 31.2

Certification by Chief Financial Officer pursuant to

Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934,

as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Gary J. Brauchle, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Tallgrass Energy GP, LP;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

By:	/s/ Gary J. Brauchle
	Gary J. Brauchle
	Executive Vice President and Chief Financial Officer of TEGP Management, LLC (the general partner of Tallgrass Energy GP, LP)

Date: May 3, 2017

EX-32.1

Exhibit 32.1

Certification Pursuant to

18 U.S.C. Section 1350,

as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the quarterly report of Tallgrass Energy GP, LP (the “Partnership”) on Form 10-Q for the quarter ended March 31, 2017, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, David G. Dehaemers, Jr., President and Chief Executive Officer of TEGP Management, LLC, the general partner of the Partnership, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (“Section 906”), that, to my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.

By:	/s/ David G. Dehaemers, Jr.
	David G. Dehaemers, Jr.
	President and Chief Executive Officer of TEGP Management, LLC (the general partner of Tallgrass Energy GP, LP)

Date: May 3, 2017

A signed original of this written statement required by Section 906 has been provided to the Partnership and will be retained and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

Certification Pursuant to

18 U.S.C. Section 1350,

as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the quarterly report of Tallgrass Energy GP, LP (the “Partnership”) on Form 10-Q for the quarter ended March 31, 2017, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Gary J. Brauchle, Executive Vice President and Chief Financial Officer of TEGP Management, LLC, the general partner of the Partnership, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (“Section 906”), that, to my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.

By:	/s/Gary J. Brauchle
	Gary J. Brauchle
	Executive Vice President and Chief Financial Officer of TEGP Management, LLC (the general partner of Tallgrass Energy GP, LP)

Date: May 3, 2017

A signed original of this written statement required by Section 906 has been provided to the Partnership and will be retained and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 03, 2017
Document Information [Line Items]
Entity Registrant Name	TALLGRASS ENERGY GP, LP
Entity Central Index Key	0001633651
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus (Q1,Q2,Q3,FY)	Q1
Trading Symbol	TEGP
Amendment Flag	false
Capital Unit, Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		58,075,000
Capital Unit, Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		99,154,440

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 2,053	$ 2,459
Accounts receivable, net	57,274	59,536
Gas imbalances	636	1,597
Inventories	15,647	13,093
Derivative assets at fair value	304	10,967
Prepayments and other current assets	6,785	7,628
Total Current Assets	82,699	95,280
Property, plant and equipment, net	2,085,670	2,079,232
Goodwill	343,288	343,288
Intangible asset, net	92,764	93,522
Unconsolidated investments	935,918	475,625
Deferred tax asset	518,790	521,454
Deferred financing costs, net	5,039	6,042
Deferred charges and other assets	9,242	11,037
Total Assets	4,073,410	3,625,480
Current Liabilities:
Accounts payable	22,050	24,449
Accounts payable to related parties	6,067	5,824
Gas imbalances	1,473	1,239
Derivative liabilities at fair value	0	556
Accrued taxes	21,857	16,996
Accrued liabilities	6,796	16,755
Deferred revenue	77,067	60,757
Other current liabilities	6,001	6,446
Total Current Liabilities	141,311	133,022
Long-term debt, net	2,108,232	1,555,981
Other long-term liabilities and deferred credits	7,125	7,063
Total Long-term Liabilities	2,115,357	1,563,044
Commitments and Contingencies
Equity [Abstract]
Total Partners' Equity	244,610	333,262
Noncontrolling interests	1,572,132	1,596,152
Total Equity	1,816,742	1,929,414
Total Liabilities and Equity	4,073,410	3,625,480
Common Class A
Equity [Abstract]
Total Partners' Equity	244,610	250,967
Common Class B
Equity [Abstract]
Total Partners' Equity	0	0
Predecessor
Equity [Abstract]
Total Partners' Equity	$ 0	$ 82,295

XML

CONDENSED CONSOLIDATED BALANCE SHEETS CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - shares	Mar. 31, 2017	Dec. 31, 2016
Common Class A
Limited Partners' Capital Account, Units Issued	58,075,000	58,075,000
Shares Outstanding	58,075,000	58,075,000
Common Class B
Limited Partners' Capital Account, Units Issued	99,154,440	99,154,440
Shares Outstanding	99,154,440	99,154,440

XML

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenues:
Crude oil transportation services	$ 84,331	$ 94,572
Natural gas transportation services	31,685	29,280
Sales of natural gas, NGLs, and crude oil	15,381	13,926
Processing and other revenues	13,003	9,390
Total Revenues	144,400	147,168
Operating Costs and Expenses:
Cost of sales (exclusive of depreciation and amortization shown below)	12,370	13,568
Cost of transportation services (exclusive of depreciation and amortization shown below)	13,503	13,529
Operations and maintenance	12,903	12,958
Depreciation and amortization	21,403	22,007
General and administrative	14,217	14,011
Taxes, other than income taxes	8,226	7,650
Gain on disposal of assets	1,448	0
Total Operating Costs and Expenses	81,174	83,723
Operating Income	63,226	63,445
Other Income (Expense):
Interest expense, net	(16,017)	(8,677)
Unrealized loss on derivative instrument	1,885	(8,946)
Equity in earnings of unconsolidated investments	20,738	709
Other income, net	70	566
Total Other Income (Expense)	6,676	(16,348)
Net income before tax	69,902	47,097
Deferred income tax expense	(2,664)	(2,791)
Net income	67,238	44,306
Net income attributable to noncontrolling interests	(55,209)	(33,032)
Net income attributable to TEGP	12,029	11,274
Predecessor operations interest in net income	0	(3,685)
Net income attributable to TEGP, excluding predecessor operations interest	$ 12,029	$ 7,589
Earnings Per Share, Basic and Diluted [Abstract]
Basic net income per Class A share	$ (0.21)	$ (0.16)
Diluted net income per Class A share	$ 0.21	$ 0.16
Basic average number of Class A shares outstanding	58,075	47,725
Diluted average number of Class A shares outstanding	58,165	47,725

XML

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) - USD ($) $ in Thousands	Total	Pony Express Pipeline	Noncontrolling Interest	Noncontrolling Interest Tallgrass Energy Partners	Noncontrolling Interest Terminals and NatGas	Noncontrolling Interest Rockies Express Pipeline LLC	Noncontrolling Interest Pony Express Pipeline	Total Partner Equity Including Portion Attributable to Noncontrolling Interest	Total Partner Equity Including Portion Attributable to Noncontrolling Interest Tallgrass Energy Partners	Total Partner Equity Including Portion Attributable to Noncontrolling Interest Terminals and NatGas	Total Partner Equity Including Portion Attributable to Noncontrolling Interest Rockies Express Pipeline LLC	Total Partner Equity Including Portion Attributable to Noncontrolling Interest Pony Express Pipeline	Common Class A	Common Class A Tallgrass Energy Partners	Common Class A Terminals and NatGas	Common Class A Rockies Express Pipeline LLC	Common Class A Pony Express Pipeline	Common Class B	Common Class B Tallgrass Energy Partners	Common Class B Terminals and NatGas	Common Class B Rockies Express Pipeline LLC	Common Class B Pony Express Pipeline	Predecessor Equity	Predecessor Equity Tallgrass Energy Partners	Predecessor Equity Terminals and NatGas	Predecessor Equity Rockies Express Pipeline LLC	Predecessor Equity Pony Express Pipeline
Partners' Capital, Including Portion Attributable to Noncontrolling Interest			$ 1,599,188					$ 2,093,062					$ 422,310					$ 0					$ 71,564
Increase (Decrease) in Partners' Capital [Roll Forward]
Net income	$ 44,306		33,032					44,306					7,589					0					3,685
Issuance of TEP units to public, net of offering costs				$ 11,490					$ 12,636					$ 1,146					$ 0					$ 0
TEGP distributions to Class A shareholders	8,256		0					8,256					(8,256)					0					0
Noncash compensation expense			1,869					2,164					295					0					0
Payments for Repurchase of Common Stock	0
Acquisitions							$ (173,422)					$ (429,039)					$ (255,617)					$ 0					$ 0
Contributions from noncontrolling interest			7,152					7,152					0					0					0
Distributions to noncontrolling interest	50,919	$ 425,882	50,919					50,919					0					0					0
Distributions to Predecessor Entities, net			0					(693)					0					0					(693)
Partners' Capital, Including Portion Attributable to Noncontrolling Interest			1,428,390					1,670,413					167,467					0					74,556
Partners' Capital, Including Portion Attributable to Noncontrolling Interest	1,929,414		1,596,152					1,929,414					250,967					0					82,295
Net income	67,238		55,209					67,238					12,029					0					0
Issuance of TEP units to public, net of offering costs	99,400			89,353					99,373					10,020					0					0
TEGP distributions to Class A shareholders	16,116		0					16,116					(16,116)					0					0
Noncash compensation expense			1,882					2,244					362					0					0
Issuance of common units under TEP LTIP plan				$ 360					$ (400)					$ (40)					$ 0					$ 0
Partial exercise of call option			(72,890)					(84,942)					(12,052)					0					0
Payments for Repurchase of Common Stock	(35,335)		31,717					35,335					3,618					0					0
Acquisitions					$ (36,391)	$ 40,159				$ (140,000)	$ 63,681				$ (21,314)	$ 23,522				$ 0	$ 0				$ (82,295)	$ 0
Contributions from TD			1,451					2,301					850					0					0
Contributions from noncontrolling interest			700					710					0					0					0
Distributions to noncontrolling interest	71,426	$ 0	(71,400)					71,426					0					0					0
Partners' Capital, Including Portion Attributable to Noncontrolling Interest	$ 1,816,742		$ 1,572,132					$ 1,816,742					$ 244,610					$ 0					$ 0

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash Flows from Operating Activities:
Net income	$ 67,238	$ 44,306
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization	23,694	23,473
Equity in earnings of unconsolidated investments	(20,738)	(709)
Distributions from unconsolidated investments	20,740	634
Deferred income tax expense	2,664	2,791
Noncash change in the fair value of derivative financial instruments	2,454	(8,990)
Changes in components of working capital:
Accounts receivable and other	(2,449)	(6,077)
Accounts payable and accrued liabilities	(6,055)	(2,225)
Deferred revenue	16,202	7,204
Other current assets and liabilities	(819)	10
Other operating, net	(755)	1,144
Net Cash Provided by Operating Activities	102,166	91,695
Cash Flows from Investing Activities:
Acquisition of Rockies Express membership interest	400,000	0
Acquisition of Terminals and NatGas	(140,000)	0
Capital expenditures	(26,769)	(21,207)
Distributions from unconsolidated investments in excess of cumulative earnings	10,079	0
Contributions to unconsolidated investments	(6,693)	(63)
Acquisition of Pony Express membership interest	0	(49,118)
Other investing, net	(1,341)	(25)
Net Cash Used in Investing Activities	(562,042)	(70,363)
Net Cash Provided by (Used in) Financing Activities
Borrowings under revolving credit facilities, net	552,000	447,000
Proceeds from public offering of TEP common units, net of offering costs	99,373	12,636
Payments for Repurchase of Common Stock	(35,335)	0
Distributions to noncontrolling interests	(71,426)	(50,919)
TEGP distributions to Class A shareholders	16,116	8,256
Other financing, net	3,355	5,654
Net Cash Provided by (Used in) Financing Activities	459,470	(19,767)
Net Change in Cash and Cash Equivalents
Net Change in Cash and Cash Equivalents	(406)	1,565
Cash and Cash Equivalents, beginning of period	2,459	2,234
Cash and Cash Equivalents, end of period	2,053	3,799
Pony Express Pipeline
Net Cash Provided by (Used in) Financing Activities
Distributions to noncontrolling interests	0	(425,882)
Equity Option
Net Cash Provided by (Used in) Financing Activities
Payments for Repurchase of Common Stock	$ (72,381)	$ 0

XML

Description of Business

3 Months Ended

Mar. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of Business

Tallgrass Energy GP, LP ("TEGP" or the "Partnership") is a limited partnership that has elected to be treated as a corporation for U.S. federal income tax purposes. "We," "us," "our" and similar terms refer to TEGP together with its consolidated subsidiaries. TEGP's sole cash-generating asset as of March 31, 2017 is an approximate 36.94% controlling membership interest in Tallgrass Equity. Tallgrass Equity's sole cash-generating assets consist of direct and indirect partnership interests in Tallgrass Energy Partners, LP ("TEP"), as described below, that were historically owned by entities controlled by Tallgrass Equity, including Tallgrass Development, LP ("TD"):

• 100% of the outstanding membership interests in Tallgrass MLP GP, LLC ("TEP GP"), which owns the general partner interest in TEP as well as all of the TEP incentive distribution rights ("IDRs"). The general partner interest in TEP is represented by 834,391 general partner units, representing an approximate 1.14% general partner interest in TEP at March 31, 2017.

• 20,000,000 TEP common units, representing an approximate 27.39% limited partner interest in TEP at March 31, 2017.

TEP is a publicly traded, growth-oriented limited partnership formed to own, operate, acquire and develop midstream energy assets in North America. TEP's operations are located in and provide services to certain key United States hydrocarbon basins, including the Denver-Julesburg, Powder River, Wind River, Permian and Hugoton-Anadarko Basins and the Niobrara, Mississippi Lime, Eagle Ford, Bakken, Marcellus, and Utica shale formations.

Our reportable business segments are:

• Crude Oil Transportation & Logistics—the ownership and operation of a FERC-regulated crude oil pipeline system and crude oil storage and terminalling facilities;

• Natural Gas Transportation & Logistics—the ownership and operation of FERC-regulated interstate natural gas pipelines and integrated natural gas storage facilities; and

• Processing & Logistics—the ownership and operation of natural gas processing, treating and fractionation facilities, the provision of water business services primarily to the oil and gas exploration and production industry and the transportation of NGLs.

Crude Oil Transportation & Logistics. TEP currently provides crude oil transportation to customers in Wyoming, Colorado, and the surrounding regions through Tallgrass Pony Express Pipeline, LLC ("Pony Express"), which owns a FERC-regulated crude oil pipeline commencing in Guernsey, Wyoming and terminating in Cushing, Oklahoma, which includes a lateral in Northeast Colorado commencing in Weld County, Colorado, and interconnecting with the pipeline just east of Sterling, Colorado (the "Pony Express System"). TEP also provides crude oil storage and terminalling services through TEP's 100% membership interest in Tallgrass Terminals, LLC ("Terminals") acquired effective January 1, 2017, which owns and operates crude oil terminals near Sterling, Colorado (the "Sterling Terminal") and in Weld County, Colorado (the "Buckingham Terminal"). Terminals also owns a 20% membership interest in Deeprock Development, LLC ("Deeprock Development"), which owns a crude oil terminal in Cushing, Oklahoma (the "Cushing Terminal").

Natural Gas Transportation & Logistics. TEP provides natural gas transportation and storage services for customers in the Rocky Mountain, Midwest and Appalachian regions of the United States through: (1) its 49.99% membership interest in Rockies Express Pipeline LLC ("Rockies Express"), which owns the Rockies Express Pipeline, a FERC-regulated natural gas pipeline system extending from Opal, Wyoming and Meeker, Colorado to Clarington, Ohio (the "Rockies Express Pipeline"), which includes the additional 24.99% membership interest acquired from TD effective March 31, 2017 as discussed in  Note 4 – Acquisitions, and TEP's 100% membership interest in Tallgrass NatGas Operator, LLC ("NatGas") acquired effective January 1, 2017, which operates the Rockies Express Pipeline, (2) the Tallgrass Interstate Gas Transmission system, a FERC-regulated natural gas transportation and storage system located in Colorado, Kansas, Missouri, Nebraska and Wyoming (the "TIGT System"), and (3) the Trailblazer Pipeline system, a FERC-regulated natural gas pipeline system extending from the Colorado and Wyoming border to Beatrice, Nebraska (the "Trailblazer Pipeline").

Processing & Logistics. TEP also provides services for customers in Wyoming at the Casper and Douglas natural gas processing facilities and the West Frenchie Draw natural gas treating facility (collectively, the "Midstream Facilities"), and NGL transportation services in Northeast Colorado and Wyoming. TEP performs water business services, including freshwater transportation and produced water gathering and disposal, in Colorado and Texas through BNN Water Solutions, LLC ("Water Solutions").

The term "Terminals Predecessor" refers to Terminals and the term "NatGas Predecessor" refers to NatGas prior to their acquisition by TEP on January 1, 2017. Terminals Predecessor and NatGas Predecessor are collectively referred to as the Predecessor Entities, as further discussed in Note 2 – Summary of Significant Accounting Policies. Financial results for all prior periods have been recast to reflect the operations of the Predecessor Entities. Predecessor Equity as presented in the condensed consolidated financial statements represents the capital account activity of Terminals Predecessor and NatGas Predecessor prior to January 1, 2017. For additional information regarding these acquisitions, see Note 4 – Acquisitions.

XML

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2017

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Basis of Presentation

These condensed consolidated financial statements and related notes for the three months ended March 31, 2017 and 2016 were prepared in accordance with the accounting principles contained in the Financial Accounting Standards Board's Accounting Standards Codification, the single source of generally accepted accounting principles in the United States of America ("GAAP") for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The year-end balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP for annual periods. The condensed consolidated financial statements for the three months ended March 31, 2017 and 2016 include all normal, recurring adjustments and disclosures that we believe are necessary for a fair statement of the results for the interim periods. In this report, the Financial Accounting Standards Board is referred to as the FASB and the FASB Accounting Standards Codification is referred to as the Codification or ASC. Certain prior period amounts have been reclassified to conform to the current presentation.

Our financial results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2017. The accompanying condensed consolidated interim financial statements should be read in conjunction with our audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016 ("2016 Form 10-K") filed with the United States Securities and Exchange Commission (the "SEC") on February 15, 2017.

The condensed consolidated financial statements include the accounts of TEGP and its subsidiaries and controlled affiliates. Significant intra-entity items have been eliminated in the presentation. Net income or loss from consolidated subsidiaries that are not wholly-owned by TEGP is attributed to TEGP and noncontrolling interests in accordance with the respective ownership interests.

As further discussed in Note 4 – Acquisitions, TEP closed the acquisition of Terminals and NatGas on January 1, 2017. As the acquisitions of Terminals and NatGas are considered transactions between entities under common control, and a change in reporting entity, the financial information presented has been recast to include Terminals and NatGas for all periods presented. Net equity distributions of the Predecessor Entities included in the condensed consolidated financial statements represent transfers of cash as a result of TD's centralized cash management system prior to January 1, 2017 for Terminals and NatGas, under which cash balances were swept daily and recorded as loans from the subsidiaries of TD. These loans were then periodically recorded as equity distributions.

The accompanying condensed consolidated financial statements of TEGP include historical cost-basis accounts of the assets and liabilities of the Predecessor Entities for the periods prior to January 1, 2017, the date TEP acquired Terminals and NatGas from TD, and include charges from TD for direct costs and allocations of indirect corporate overhead. Management believes that the allocation methods are reasonable, and that the allocations are representative of costs that would have been incurred on a stand-alone basis. TEGP, TEP, and the Predecessor Entities are all considered "entities under common control" as defined under GAAP and, as such, the transfers between the entities of the assets and liabilities have been recorded by TEGP at historical cost.

A variable interest entity ("VIE") is a legal entity that possesses any of the following characteristics: an insufficient amount of equity at risk to finance its activities, equity owners who do not have the power to direct the significant activities of the entity (or have voting rights that are disproportionate to their ownership interest), or equity owners who do not have the obligation to absorb expected losses or the right to receive the expected residual returns of the entity. Companies are required to consolidate a VIE if they are its primary beneficiary, which is the enterprise that has a variable interest that could be significant to the VIE and the power to direct the activities that most significantly impact the entity's economic performance. We have presented separately in our condensed consolidated balance sheets, to the extent material, the liabilities of our consolidated VIEs for which creditors do not have recourse to our general credit. Our consolidated VIEs do not have material assets that can only be used to settle specific obligations of the consolidated VIEs. Tallgrass Equity is considered to be a VIE under the applicable authoritative guidance. Based on a qualitative analysis in accordance with the applicable authoritative guidance, we have determined that we are the primary beneficiary as we have the right to receive benefits of Tallgrass Equity that could potentially be significant to Tallgrass Equity. TEP is also considered to be a VIE under the applicable authoritative guidance. Based on a qualitative analysis, we have determined that TEP GP is the primary beneficiary of TEP and we continue to consolidate TEP accordingly.

Use of Estimates

Certain amounts included in or affecting these condensed consolidated financial statements and related disclosures must be estimated, requiring management to make certain assumptions with respect to values or conditions which cannot be known with certainty at the time the financial statements are prepared. These estimates and assumptions affect the amounts reported for assets, liabilities, revenues, and expenses during the reporting period, and the disclosure of contingent assets and liabilities at the date of the financial statements. Management evaluates these estimates on an ongoing basis, utilizing historical experience, consultation with experts and other methods it considers reasonable in the particular circumstances. Nevertheless, actual results may differ significantly from these estimates. Any effects on our business, financial position or results of operations resulting from revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known.

Accounting Pronouncement Recently Adopted

ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting"

In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Among other changes, ASU 2016-09 allows an entity to make an entity-wide accounting policy election to either estimate the number of awards expected to vest (consistent with current GAAP) or account for forfeitures when they occur.

The amendments in ASU 2016-09 are effective for public entities for annual periods and interim periods within those annual periods beginning after December 15, 2016. Early adoption is permitted. We adopted the guidance in ASU 2016-09 effective January 1, 2017 and made a policy election to account for forfeitures when they occur. The adoption of ASU 2016-09 did not have a material impact on our consolidated financial statements.

Accounting Pronouncements Not Yet Adopted

Revenue Recognition

In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 provides a comprehensive and converged set of principles-based revenue recognition guidelines which supersede the existing industry and transaction-specific standards. The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, entities must apply a five-step process to (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 also mandates disclosure of sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The disclosure requirements include qualitative and quantitative information about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract.

Throughout 2015 and 2016, the FASB has issued a series of subsequent updates to the revenue recognition guidance in Topic 606, including ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers.

The amendments in ASU 2014-09, ASU 2016-08, ASU 2016-10, ASU 2016-12, and ASU 2016-20 are effective for public entities for annual reporting periods beginning after December 15, 2017, and for interim periods within that reporting period. Early application is permitted for annual reporting periods beginning after December 15, 2016.

We are currently evaluating the impact of our pending adoption of the revised guidance. The status of our implementation is as follows:

• We have formed an implementation team that meets to discuss implementation challenges, technical interpretations, industry-specific treatment of certain revenue contract types, and project status.

• We are currently reviewing contracts for each revenue stream identified within each of our business segments. Through this process, we are determining and documenting expected changes in revenue recognition upon adoption of the revised guidance.

• We plan to evaluate the potential information technology and internal control changes that will be required for adoption based on the findings from our contract review process.

• We plan to provide internal training and awareness related to the revised guidance to the key stakeholders throughout our organization.

Through the contract review process currently underway, management has identified several areas of potential impact, including the accounting for non-cash consideration, particularly in our Crude Oil Transportation & Logistics and Processing & Logistics segments, and the timing of revenue recognition with respect to deficiency payments received in our Crude Oil Transportation & Logistics segment. We will continue to conduct our contract review process throughout 2017 and, as a result, additional areas of impact may be identified. We are in the process of quantifying the impact of adoption but cannot reasonably estimate such amount at this time. We expect to adopt the new standard on January 1, 2018 using the modified retrospective approach. This approach allows us to apply the new standard to (i) all new contracts entered into after January 1, 2018 and (ii) all existing contracts for which all (or substantially all) of the revenue has not been recognized under legacy revenue guidance as of January 1, 2018 through a cumulative adjustment to equity. Consolidated revenues presented in our comparative financial statements for periods prior to January 1, 2018 would not be revised.

ASU No. 2016-02, "Leases (Topic 842)"

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). ASU 2016-02 provides a comprehensive update to the lease accounting topic in the Codification intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in ASU 2016-02 include a revised definition of a lease as well as certain scope exceptions. The changes primarily impact lessee accounting, while lessor accounting is largely unchanged from previous GAAP.

The amendments in ASU 2016-02 are effective for public entities for annual reporting periods beginning after December 15, 2018, and for interim periods within that reporting period. Early application is permitted. We are currently evaluating the impact of ASU 2016-02.

ASU No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business"

In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses by providing a screen to determine when an integrated set of assets and activities is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. The ASU also narrows the definition of the term "output" so that the term is consistent with how outputs are described under the revenue recognition guidance in Topic 606.

The amendments in ASU 2017-01 are effective for public entities for annual periods and interim periods within those annual periods beginning after December 15, 2017. Early adoption is permitted in certain circumstances. We are currently evaluating the impact of ASU 2017-01, but do not anticipate a material impact on our consolidated financial statements.

ASU No. 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment"

In January 2017, the FASB issued ASU No. 2017-04, which simplifies the subsequent measurement of goodwill by eliminating "Step 2" from the goodwill impairment test, which involved calculating the implied fair value of goodwill by determining the fair value at the impairment testing date of a reporting unit's assets and liabilities. Instead, under the simplified test approach, an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit.

The amendments in ASU 2017-04 are effective for public entities for annual periods and interim periods within those annual periods beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We are currently evaluating the impact of ASU 2017-04.

XML

Variable Interest Entity Variable Interest Entity

3 Months Ended

Mar. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entity

TEP is a VIE of which TEP GP, our consolidated subsidiary, is the primary beneficiary. We continue to consolidate TEP accordingly. We have not provided any additional financial support and have no contractual commitments or obligations to provide additional financial support to TEP.

TEGP, as the managing member of Tallgrass Equity, has voting rights disproportionate to its ownership interest. As a result, we have determined that Tallgrass Equity is a VIE of which we are the primary beneficiary and we consolidate Tallgrass Equity accordingly. We have not provided any additional financial support to Tallgrass Equity other than our initial capital contribution to acquire a portion of our controlling interest in Tallgrass Equity and have no contractual commitments or obligations to provide additional financial support to Tallgrass Equity.

Other than TEGP's deferred tax asset of approximately $518.8 million and $521.5 million at March 31, 2017 and December 31, 2016, respectively, the assets and liabilities included in our condensed consolidated balance sheets at March 31, 2017 and December 31, 2016 represent the consolidated assets and liabilities of Tallgrass Equity, including the assets and liabilities of TEP.

XML

Acquisitions

3 Months Ended

Mar. 31, 2017

Business Combinations [Abstract]

Acquisitions

TEP Acquisition of an Additional 24.99% Membership Interest in Rockies Express

On March 31, 2017, TEP, TD, and Rockies Express Holdings, LLC, entered into a definitive Purchase and Sale Agreement, pursuant to which TEP acquired an additional 24.99% membership interest in Rockies Express from TD in exchange for cash consideration of $400 million. Together with the 25% membership interest in Rockies Express that TEP acquired from a unit of Sempra U.S. Gas and Power on May 6, 2016, this transaction increases TEP’s aggregate membership interest in Rockies Express to 49.99%.

The transfer of the Rockies Express membership interest between TD and TEP is considered a transaction between entities under common control, but does not represent a change in reporting entity. TEP's investment in Rockies Express is recorded under the equity method of accounting and is reported as "Unconsolidated investments" on our condensed consolidated balance sheets. As a result of the common control nature of the transaction, the 24.99% membership interest in Rockies Express was transferred to TEP at TD's historical carrying amount, including the remaining unamortized basis difference driven by the difference between the fair value of the investment and the book value of the underlying assets and liabilities on November 13, 2012, the date of acquisition by TD. For additional information, see Note 8 – Investments in Unconsolidated Affiliates.

As of March 31, 2017, the negative basis difference carried over from TD was approximately $386.8 million. The amount of the basis difference allocated to property, plant and equipment is accreted over 35 years, which equates to the 2.86% composite depreciation rate utilized by Rockies Express to depreciate the underlying property, plant and equipment. The amount allocated to long-term debt is amortized over the remaining life of the various debt facilities. The basis difference associated with the recently acquired 24.99% membership interest in Rockies Express at March 31, 2017 was allocated as follows:

	Basis Difference			Amortization Period
	(in thousands)
Long-term debt	$	19,504		2 - 25 years
Property, plant and equipment	(406,301		)	35 years
Total basis difference	$	(386,797	)

TEP Acquisition of Tallgrass Terminals, LLC and Tallgrass NatGas Operator, LLC

Effective January 1, 2017, TEP acquired 100% of the issued and outstanding membership interests in Terminals and 100% of the issued and outstanding membership interests in NatGas from TD for total cash consideration of $140 million. These acquisitions are considered transactions between entities under common control, and a change in reporting entity.

Terminals owns several fully operational assets providing storage capacity and additional injection points for the Pony Express System, including the Sterling Terminal near Sterling, Colorado, the Buckingham Terminal in northeast Colorado, and a 20% interest in the Deeprock Development Terminal in Cushing, Oklahoma. The 20% interest in Deeprock Development is recorded under the equity method of accounting and reported as "Unconsolidated investments" on our condensed consolidated balance sheets. Terminals also owns acreage in Cushing, Oklahoma and Guernsey, Wyoming, which is under development to provide additional storage capacity, and other potential opportunities.

NatGas is the operator of the Rockies Express Pipeline and receives a fee from Rockies Express as compensation for its services.

Historical Financial Information

The results of our acquisitions of Terminals and NatGas are included in the condensed consolidated balance sheets as of March 31, 2017 and December 31, 2016. The following table presents our previously reported December 31, 2016 condensed consolidated balance sheet, adjusted for the acquisitions of Terminals and NatGas:

	December 31, 2016
	TEGP (As previously reported)		Consolidate Terminals		Consolidate NatGas		TEGP (As currently reported)
	(in thousands)
ASSETS
Current Assets:
Cash and cash equivalents	$	2,459	$	—	$	—	$	2,459
Accounts receivable, net	59,469		38		29		59,536
Gas imbalances	1,597		—		—		1,597
Inventories	12,805		288		—		13,093
Derivative assets at fair value	10,967		—		—		10,967
Prepayments and other current assets	6,820		808		—		7,628
Total Current Assets	94,117		1,134		29		95,280
Property, plant and equipment, net	2,012,263		66,969		—		2,079,232
Goodwill	343,288		—		—		343,288
Intangible asset, net	93,522		—		—		93,522
Unconsolidated investments	461,915		13,710		—		475,625
Deferred tax asset	521,454		—		—		521,454
Deferred financing costs, net	6,042		—		—		6,042
Deferred charges and other assets	9,637		1,400		—		11,037
Total Assets	$	3,542,238	$	83,213	$	29	$	3,625,480
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable	$	24,403	$	46	$	—	$	24,449
Accounts payable to related parties	5,768		56		—		5,824
Gas imbalances	1,239		—		—		1,239
Derivative liabilities at fair value	556		—		—		556
Accrued taxes	16,328		668		—		16,996
Accrued liabilities	16,578		177		—		16,755
Deferred revenue	60,757		—		—		60,757
Other current liabilities	6,446		—		—		6,446
Total Current Liabilities	132,075		947		—		133,022
Long-term debt, net	1,555,981		—		—		1,555,981
Other long-term liabilities and deferred credits	7,063		—		—		7,063
Total Long-term Liabilities	1,563,044		—		—		1,563,044
Equity:
Net Equity	1,847,119		82,266		29		1,929,414
Total Equity	1,847,119		82,266		29		1,929,414
Total Liabilities and Equity	$	3,542,238	$	83,213	$	29	$	3,625,480

The results of our acquisitions of Terminals and NatGas are included in the condensed consolidated statements of income for the three months ended March 31, 2017 and 2016. The following tables present the previously reported condensed consolidated statements of income for the three months ended March 31, 2016, adjusted for the acquisitions of Terminals and NatGas:

	Three Months Ended March 31, 2016
	TEGP (As previously reported)			Consolidate Terminals		Consolidate NatGas		Elimination (1)			TEGP (As currently reported)
	(in thousands)
Revenues:
Crude oil transportation services	$	94,572		$	—	$	—	$	—		$	94,572
Natural gas transportation services	29,280			—		—		—			29,280
Sales of natural gas, NGLs, and crude oil	13,926			—		—		—			13,926
Processing and other revenues	7,627			2,909		1,681		(2,827		)	9,390
Total Revenues	145,405			2,909		1,681		(2,827		)	147,168
Operating Costs and Expenses:
Cost of sales (exclusive of depreciation and amortization shown below)	13,568			—		—		—			13,568
Cost of transportation services (exclusive of depreciation and amortization shown below)	16,156			200		—		(2,827		)	13,529
Operations and maintenance	12,477			481		—		—			12,958
Depreciation and amortization	21,692			315		—		—			22,007
General and administrative	13,537			474		—		—			14,011
Taxes, other than income taxes	7,506			144		—		—			7,650
Total Operating Costs and Expenses	84,936			1,614		—		(2,827		)	83,723
Operating Income	60,469			1,295		1,681		—			63,445
Other Income (Expense):
Interest expense, net	(8,677		)	—		—		—			(8,677		)
Unrealized loss on derivative instrument	(8,946		)	—		—		—			(8,946		)
Equity in earnings of unconsolidated investments	—			709		—		—			709
Other income, net	566			—		—		—			566
Total Other (Expense) Income	(17,057		)	709		—		—			(16,348		)
Net income before tax	43,412			2,004		1,681		—			47,097
Deferred income tax expense	(2,791		)	—		—		—			(2,791		)
Net income	40,621			2,004		1,681		—			44,306
Net income attributable to noncontrolling interests	(33,032		)	—		—		—			(33,032		)
Net income attributable to TEGP	$	7,589		$	2,004	$	1,681	$	—		$	11,274

⁽¹⁾  Represents the elimination of revenue and cost of transportation services associated with the lease of the Sterling Terminal facilities by Pony Express.

XML

Related Party Transactions

3 Months Ended

Mar. 31, 2017

Related Party Transactions [Abstract]

Related Party Transactions

As a result of our relationship with TD and its affiliates, we have entered into a number of related party transactions. The following disclosure includes those related party disclosures which are not otherwise disclosed in these notes to our condensed consolidated financial statements.

We have no employees. In connection with the closing of the TEP initial public offering on May 17, 2013, TEP and its general partner entered into an Omnibus Agreement with TD and certain of its affiliates, including Tallgrass Operations, LLC (the "TEP Omnibus Agreement"). The TEP Omnibus Agreement provides that, among other things, TEP will reimburse TD and its affiliates for all expenses they incur and payments they make on TEP's behalf, including the costs of employee and director compensation and benefits as well as the cost of the provision of certain centralized corporate functions performed by TD, including legal, accounting, cash management, insurance administration and claims processing, risk management, health, safety and environmental, information technology and human resources in each case to the extent reasonably allocable to TEP. In addition, in connection with the closing of our initial public offering on May 12, 2015 (the "TEGP IPO"), TEGP entered into an Omnibus Agreement (the "TEGP Omnibus Agreement") with TEGP Management, LLC, Tallgrass Equity and Tallgrass Energy Holdings, LLC (which is the general partner of TD).

Pursuant to the TEGP Omnibus Agreement, Tallgrass Equity pays a reimbursement to TD for costs associated with TEGP being a public company beginning in the second quarter of 2015, which was $500,000 for the first quarter of 2017. This amount will be periodically reviewed and adjusted as necessary to continue to reflect reasonable allocation of costs to TEGP.

Totals of transactions with affiliated companies, excluding transactions disclosed elsewhere in these notes, are as follows:

	Three Months Ended March 31,
	2017		2016
	(in thousands)
Cost of transportation services (1)	$	4,507	$	4,429
Charges to TEGP: (2)
Property, plant and equipment, net	$	293	$	918
Operations and maintenance	$	6,277	$	6,184
General and administrative	$	9,573	$	9,437

⁽¹⁾  Reflects rent expense for the crude oil storage at the Deeprock Terminal.

⁽²⁾  Charges to TEGP, inclusive of Tallgrass Equity and TEP, include directly charged wages and salaries, other compensation and benefits, and shared services.

Details of balances with affiliates included in "Accounts receivable, net" and "Accounts payable to related parties" in the condensed consolidated balance sheets are as follows:

	March 31, 2017		December 31, 2016
	(in thousands)
Receivable from related parties:
Rockies Express Pipeline LLC	$	1,266	$	590
Total receivable from related parties	$	1,266	$	590
Accounts payable to related parties:
Tallgrass Operations, LLC	$	6,047	$	5,811
Tallgrass Management, LLC	20		—
Deeprock Development, LLC	—		13
Total accounts payable to related parties	$	6,067	$	5,824

Gas imbalances with affiliated shippers are as follows:

	March 31, 2017		December 31, 2016
	(in thousands)
Affiliate gas imbalance receivables	$	—	$	177
Affiliate gas imbalance payables	$	73	$	—

XML

Inventory

3 Months Ended

Mar. 31, 2017

Inventory Disclosure [Abstract]

Inventory

The components of inventory at March 31, 2017 and December 31, 2016 consisted of the following:

	March 31, 2017		December 31, 2016
	(in thousands)
Crude oil	$	6,903	$	5,462
Materials and supplies	6,455		6,383
Natural gas liquids	573		265
Gas in underground storage	1,716		983
Total inventory	$	15,647	$	13,093

XML

Property, Plant and Equipment

3 Months Ended

Mar. 31, 2017

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

A summary of net property, plant and equipment by classification is as follows:

	March 31, 2017			December 31, 2016
	(in thousands)
Crude oil pipelines	$	1,207,727		$	1,202,125
Natural gas pipelines	575,536			572,150
Processing and treating assets	262,447			256,901
General and other	225,243			223,310
Construction work in progress	29,770			20,606
Accumulated depreciation and amortization	(215,053		)	(195,860		)
Total property, plant and equipment, net	$	2,085,670		$	2,079,232

XML

Investments in Unconsolidated Affiliates (Notes)

3 Months Ended

Mar. 31, 2017

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments and Joint Ventures Disclosure

Rockies Express

Our investment in Rockies Express is recorded under the equity method of accounting and is reported as "Unconsolidated investments" on our condensed consolidated balance sheets. During the three months ended March 31, 2017, we recognized equity in earnings associated with our previously acquired 25% membership interest in Rockies Express of $20.0 million, inclusive of the amortization of the negative basis difference, and received distributions from and made contributions to Rockies Express of $30.1 million and $6.7 million, respectively. As discussed in Note 4 – Acquisitions, we acquired an additional 24.99% membership interest in Rockies Express from TD on March 31, 2017.

Summarized financial information for Rockies Express is as follows:

	Three Months Ended March 31, 2017
Revenue	$	201,338
Operating income	$	107,369
Net income to Members	$	66,250

Deeprock Development

See Note 4 – Acquisitions for additional information regarding our recently acquired 20% membership interest in Deeprock Development.

XML

Risk Management

3 Months Ended

Mar. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Risk Management

We occasionally enter into derivative contracts with third parties for the purpose of hedging exposures that accompany our normal business activities. Our normal business activities directly and indirectly expose us to risks associated with changes in the market price of crude oil and natural gas, among other commodities. For example, the risks associated with changes in the market price of crude oil and natural gas include, among others (i) pre-existing or anticipated physical crude oil and natural gas sales, (ii) natural gas purchases and (iii) natural gas system use and storage. We have elected not to apply hedge accounting and changes in the fair value of all derivative contracts are recorded in earnings in the period in which the change occurs.

Fair Value of Derivative Contracts

The following table summarizes the fair values of our derivative contracts included in the condensed consolidated balance sheets:

	Balance Sheet Location	March 31, 2017		December 31, 2016
		(in thousands)
Call option derivative (1)	Current assets	$	—	$	10,676
Crude oil derivative contracts (2)	Current assets	$	223	$	—
Natural gas derivative contracts (3)	Current assets	$	81	$	291
Crude oil derivative contracts (2)	Current liabilities	$	—	$	440
Natural gas derivative contracts (3)	Current liabilities	$	—	$	116

⁽¹⁾  As discussed below, in conjunction with TEP's acquisition of an additional 31.3% membership interest in Pony Express effective January 1, 2016, TD granted TEP an 18 month call option covering the 6,518,000 common units issued to TD. As of February 1, 2017, no common units remained subject to the call option.

⁽²⁾  As of March 31, 2017 and December 31, 2016, the fair value shown for crude oil derivative contracts represents the sale of 125,000 barrels of crude oil which will settle throughout 2017.

⁽³⁾  As of March 31, 2017, the fair value shown for natural gas derivative contracts was comprised of derivative volumes for long natural gas fixed-price swaps totaling 0.3 Bcf. As of December 31, 2016, the fair value shown for natural gas derivative contracts was comprised of derivative volumes for short and long natural gas fixed-price swaps totaling 0.3 Bcf and 0.4 Bcf, respectively.

Effect of Derivative Contracts in the Statements of Income

The following table summarizes the impact of derivative contracts for the three months ended March 31,2017 and 2016:

	Location of gain (loss) recognized in income on derivatives	Amount of gain (loss) recognized in income on derivatives
			Three Months Ended March 31,
			2017		2016
		(in thousands)
Derivatives not designated as hedging contracts:
Call option derivative	Unrealized gain (loss) on derivative instrument		$	1,885	$	(8,946	)
Natural gas derivative contracts	Sales of natural gas, NGLs, and crude oil		$	173	$	(44	)
Crude oil derivative contracts	Sales of natural gas, NGLs, and crude oil		$	663	$	—

Call Option Derivative

As part of TEP's acquisition of an additional 31.3% membership interest in Pony Express effective January 1, 2016, TD granted TEP an 18 month call option at an exercise price of $42.50 per TEP common unit covering the 6,518,000 TEP common units issued to TD as a portion of the consideration. In July 2016 and October 2016, TEP partially exercised the call option covering 3,563,146 and 1,251,760 common units, respectively, for cash payments of $151.4 million and $53.2 million, respectively. On February 1, 2017, TEP exercised the remainder of the call option covering an additional 1,703,094 common units for a cash payment of $72.4 million. These common units were deemed canceled upon the exercise of the call option and as of the applicable exercise date were no longer issued and outstanding.

Credit Risk

We have counterparty credit risk as a result of our use of derivative contracts. Counterparties to our crude oil and natural gas derivatives consist of major financial institutions. This concentration of counterparties may impact our overall exposure to credit risk, either positively or negatively, in that the counterparties may be similarly affected by changes in economic, regulatory or other conditions. The counterparty to our call option derivative was TD.

Our over-the-counter swaps are entered into with counterparties outside central trading organizations such as futures, options or stock exchanges. These contracts are with financial institutions with investment grade credit ratings. While we enter into derivative transactions principally with investment grade counterparties and actively monitor their credit ratings, it is nevertheless possible that from time to time losses will result from counterparty credit risk in the future. The maximum potential exposure to credit losses on our crude oil and natural gas derivative contracts at March 31, 2017 was:

	Asset Position
	(in thousands)
Gross	$	304
Netting agreement impact	—
Cash collateral held	—
Net exposure	$	304

As of March 31, 2017 and December 31, 2016, we did not have any outstanding letters of credit or cash in margin accounts in support of our hedging of commodity price risks associated with our commodity derivative contracts nor did we have any margin deposits with counterparties associated with our commodity derivative contracts.

Fair Value

Derivative assets and liabilities are measured and reported at fair value. Derivative contracts can be exchange-traded or over-the-counter ("OTC"). Exchange-traded derivative contracts typically fall within Level 1 of the fair value hierarchy if they are traded in an active market. We value exchange-traded derivative contracts using quoted market prices for identical securities.

OTC commodity derivatives are valued using models utilizing a variety of inputs including contractual terms and commodity and interest rate curves. The selection of a particular model and particular inputs to value an OTC derivative contract depends upon the contractual terms of the instrument as well as the availability of pricing information in the market. We use similar models to value similar instruments. For OTC derivative contracts that trade in liquid markets, such as generic forwards and swaps, model inputs can generally be verified and model selection does not involve significant management judgment. Such contracts are typically classified within Level 2 of the fair value hierarchy. The call option granted by TD was valued using a Black-Scholes option pricing model. Key inputs to the valuation model include the term of the option, risk free rate, the exercise price and current market price, expected volatility and expected distribution yield of the underlying units. The call option valuation was classified within Level 2 of the fair value hierarchy as the value was based on significant observable inputs.

Certain OTC derivative contracts trade in less liquid markets with limited pricing information; as such, the determination of fair value for these derivative contracts is inherently more difficult. Such contracts are classified within Level 3 of the fair value hierarchy. The valuations of these less liquid OTC derivatives are typically impacted by Level 1 and/or Level 2 inputs that can be observed in the market, as well as unobservable Level 3 inputs. Use of a different valuation model or different valuation input values could produce a significantly different estimate of fair value. However, derivative contracts valued using inputs unobservable in active markets are generally not material to our financial statements. When appropriate, valuations are adjusted for various factors including credit considerations. Such adjustments are generally based on available market evidence. In the absence of such evidence, management's best estimate is used.

The following table summarizes the fair value measurements of our derivative contracts as of March 31, 2017 and December 31, 2016 based on the fair value hierarchy established by the Codification:

			Asset Fair Value Measurements Using
	Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
	(in thousands)
As of March 31, 2017:
Crude oil derivative contracts	$	223	$	—	$	223	$	—
Natural gas derivative contracts	$	81	$	—	$	81	$	—
As of December 31, 2016:
Call option derivative	$	10,676	$	—	$	10,676	$	—
Natural gas derivative contracts	$	291	$	—	$	291	$	—
			Liability Fair Value Measurements Using
	Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
	(in thousands)
As of December 31, 2016:
Crude oil derivative contracts	$	440	$	—	$	440	$	—
Natural gas derivative contracts	$	116	$	—	$	116	$	—

XML

Long-term Debt

3 Months Ended

Mar. 31, 2017

Debt Disclosure [Abstract]

Long-term Debt

Long-term debt consisted of the following at March 31, 2017 and December 31, 2016:

	March 31, 2017			December 31, 2016
	(in thousands)
Tallgrass Equity revolving credit facility	$	148,000		$	148,000
TEP revolving credit facility	1,567,000			1,015,000
TEP 5.50% senior notes due September 15, 2024	400,000			400,000
Less: Deferred financing costs, net (1)	(6,768		)	(7,019		)
Total long-term debt, net	$	2,108,232		$	1,555,981

⁽¹⁾  Deferred financing costs, net as presented above relate solely to the 2024 Notes. Deferred financing costs associated with our revolving credit facility are presented in noncurrent assets on our condensed consolidated balance sheets.

TEP Senior Unsecured Notes

On September 1, 2016, TEP and Tallgrass Energy Finance Corp. (the "Co-Issuer" and together with TEP, the "Issuers"), the Guarantors named therein and U.S. Bank, National Association, as trustee, entered into an Indenture dated September 1, 2016 (the "Indenture"), pursuant to which the Issuers issued $400 million in aggregate principal amount of 5.50% senior notes due 2024 (the "2024 Notes"). 

The Indenture contains covenants that, among other things, limit TEP's ability and the ability of its restricted subsidiaries to: (i) incur, assume or guarantee additional indebtedness or issue preferred units; (ii) create liens to secure indebtedness; (iii) pay distributions on equity interests, repurchase equity securities or redeem subordinated securities; (iv) make investments; (v) restrict distributions, loans or other asset transfers from TEP's restricted subsidiaries; (vi) consolidate with or merge with or into, or sell substantially all of TEP's properties to, another person; (vii) sell or otherwise dispose of assets, including equity interests in subsidiaries; and (viii) enter into transactions with affiliates. As of March 31, 2017, TEP was in compliance with the covenants required under the 2024 Notes.

Tallgrass Equity Revolving Credit Facility

The following table sets forth the available borrowing capacity under the Tallgrass Equity revolving credit facility as of March 31, 2017 and December 31, 2016:

	March 31, 2017			December 31, 2016
	(in thousands)
Total capacity under the Tallgrass Equity revolving credit facility	$	150,000		$	150,000
Less: Outstanding borrowings under the Tallgrass Equity revolving credit facility	(148,000		)	(148,000		)
Available capacity under the Tallgrass Equity revolving credit facility	$	2,000		$	2,000

In connection with the TEGP IPO, Tallgrass Equity entered into a $150 million senior secured revolving credit facility with Barclays Bank PLC, as administrative agent, and a syndicate of lenders, which will mature on May 12, 2020. Among various other covenants and restrictive provisions, Tallgrass Equity is required to maintain a total leverage ratio of not more than 3.00 to 1.00. As of March 31, 2017, Tallgrass Equity was in compliance with the covenants required under the revolving credit facility.

The unused portion of the revolving credit facility is subject to a commitment fee of 0.50%. As of March 31, 2017, the weighted average interest rate on outstanding borrowings under the Tallgrass Equity revolving credit facility was 3.48%. During the three months ended March 31, 2017, Tallgrass Equity's weighted average effective interest rate, including the interest on outstanding borrowings, commitment fees, and amortization of deferred financing costs, was 3.61%.

TEP Revolving Credit Facility

The following table sets forth the available borrowing capacity under the TEP revolving credit facility as of March 31, 2017 and December 31, 2016:

	March 31, 2017			December 31, 2016
	(in thousands)
Total capacity under the TEP revolving credit facility	$	1,750,000		$	1,750,000
Less: Outstanding borrowings under the TEP revolving credit facility (1)	(1,567,000		)	(1,015,000		)
Available capacity under the TEP revolving credit facility	$	183,000		$	735,000

TEP's revolving credit facility contains various covenants and restrictive provisions that, among other things, limit or restrict TEP's ability (as well as the ability of its restricted subsidiaries) to incur or guarantee additional debt, incur certain liens on assets, dispose of assets, make certain distributions (including distributions from available cash, if a default or event of default under the credit agreement then exists or would result from making such a distribution), change the nature of its business, engage in certain mergers or make certain investments and acquisitions, enter into non-arms-length transactions with affiliates and designate certain subsidiaries as "Unrestricted Subsidiaries." In addition, TEP is required to maintain a consolidated leverage ratio of not more than 4.75 to 1.00 (which will be increased to 5.25 to 1.00 for certain measurement periods following the consummation of certain acquisitions) and a consolidated interest coverage ratio of not less than 2.50 to 1.00. As of March 31, 2017, TEP was in compliance with the covenants required under its revolving credit facility.

The unused portion of TEP's revolving credit facility is subject to a commitment fee, which ranges from 0.300% to 0.500%, based on TEP's total leverage ratio. As of March 31, 2017, the weighted average interest rate on outstanding borrowings under the TEP revolving credit facility was 2.95%. During the three months ended March 31, 2017, the weighted average effective interest rate under the TEP revolving credit facility, including the interest on outstanding borrowings, commitment fees, and amortization of deferred financing costs, was 3.12%.

Fair Value

The following table sets forth the carrying amount and fair value of our long-term debt, which is not measured at fair value in the condensed consolidated balance sheets as of March 31, 2017 and December 31, 2016, but for which fair value is disclosed:

	Fair Value
	Quoted prices in active markets for identical  assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total		Carrying Amount
	(in thousands)
As of March 31, 2017:
Revolving credit facilities	$	—	$	1,715,000	$	—	$	1,715,000	$	1,715,000
2024 Notes	$	—	$	403,252	$	—	$	403,252	$	393,232
As of December 31, 2016:
Revolving credit facilities	$	—	$	1,163,000	$	—	$	1,163,000	$	1,163,000
2024 Notes	$	—	$	398,000	$	—	$	398,000	$	392,981

The long-term debt borrowed under the revolving credit facilities is carried at amortized cost. As of March 31, 2017 and December 31, 2016, the fair value of borrowings under the revolving credit facilities approximates the carrying amount of the borrowings using a discounted cash flow analysis. The 2024 Notes are carried at amortized cost, net of deferred financing costs. The estimated fair value of the 2024 Notes is based upon quoted market prices adjusted for illiquid markets. We are not aware of any factors that would significantly affect the estimated fair value subsequent to March 31, 2017.

XML

Partnership Equity and Distributions

3 Months Ended

Mar. 31, 2017

Equity [Abstract]

Partnership Equity and Distributions

TEGP Partnership Agreement and Distributions to Holders of Class A Shares

The following table details the distributions for the periods indicated:

Three Months Ended	Date Paid	Distributions to Class A Shareholders		Distributions per Class A Share
		(in thousands)
March 31, 2017	May 15, 2017 (1)	$	16,697	$	0.2875
December 31, 2016	February 14, 2017	16,116		0.2775
September 30, 2016	November 14, 2016	12,528		0.2625
June 30, 2016	August 12, 2016	11,693		0.2450
March 31, 2016	May 13, 2016	10,022		0.2100

⁽¹⁾  The distribution announced on April 17, 2017 for the first quarter of 2017 will be paid on May 15, 2017 to Class A shareholders of record at the close of business on April 28, 2017.

Subsidiary Distributions    

TEP Distributions. The following table shows the distributions for the periods indicated:

		Distributions
		Limited Partner Common Units		General Partner						Distributions per Limited Partner Unit
Three Months Ended	Date Paid			Incentive Distribution Rights		General Partner Units		Total
		(in thousands, except per unit amounts)
March 31, 2017	May 15, 2017 (1)	$	60,486	$	29,840	$	1,040	$	91,366	$	0.8350
December 31, 2016	February 14, 2017	58,793		28,358		1,008		88,159		0.8150
September 30, 2016	November 14, 2016	57,332		26,987		976		85,295		0.7950
June 30, 2016	August 12, 2016	54,442		24,262		911		79,615		0.7550
March 31, 2016	May 13, 2016	48,238		19,816		830		68,884		0.7050

⁽¹⁾  The distribution announced on April 17, 2017 for the first quarter of 2017 will be paid on May 15, 2017 to unitholders of record at the close of business on April 28, 2017.

Repurchase of TEP Common Units Owned by TD

Following an offer received from TD with respect to TEP common units owned by TD not subject to the call option, TEP repurchased 736,262 TEP common units from TD at an aggregate price of approximately $35.3 million, or $47.99 per common unit, on February 1, 2017, which was approved by the conflicts committee of the board of directors of TEP's general partner. These common units were deemed canceled upon our purchase and as of such transaction date were no longer issued and outstanding.

TEP Equity Distribution Agreements

As of March 31, 2017, TEP had active equity distribution agreements pursuant to which it may sell from time to time through a group of managers, as its sales agents, TEP common units representing limited partner interests having an aggregate offering price of up to $100.2 million and $657.5 million. Net cash proceeds from any sale of the TEP common units may be used for general partnership purposes, which includes, among other things, TEP's exercise of the call option with respect to the 6,518,000 common units issued to TD in connection with TEP's acquisition of an additional 31.3% of Pony Express in January 2016, repayment or refinancing of debt, funding for acquisitions, capital expenditures and additions to working capital.

During the three months ended March 31, 2017, TEP issued and sold 2,087,647 common units with a weighted average sales price of $48.23 per unit under its equity distribution agreements for net cash proceeds of approximately $99.4 million (net of approximately $1.3 million in commissions and professional service expenses). During the period from April 1, 2017 to May 3, 2017, TEP issued and sold an additional 253,414 common units with a weighted average sales price of $53.65 per unit under its equity distribution agreements for net cash proceeds of approximately $13.5 million (net of approximately $0.1 million in commissions and professional service expenses). TEP used the net cash proceeds for general partnership purposes as described above.

Noncontrolling Interests

As of March 31, 2017, noncontrolling interests in our subsidiaries consisted of a 63.06% interest in Tallgrass Equity held by the Exchange Right Holders, as defined in Note 12 – Net Income per Class A Share, the 72.29% limited partner interest in TEP held by TD and the public TEP unitholders and the 2.0% membership interest in Pony Express held by TD. During the three months ended March 31, 2017, we recognized contributions from and distributions to noncontrolling interests of $0.7 million and $71.4 million, respectively. Contributions from noncontrolling interests consisted primarily of contributions from TD to Pony Express. Distributions to noncontrolling interests consisted of distributions to TEP unitholders of $42.5 million, Tallgrass Equity distributions to the Exchange Right Holders of $27.5 million, and distributions to Pony Express noncontrolling interests of $1.4 million.

During the three months ended March 31, 2016, we received contributions from and made distributions to noncontrolling interests of $7.2 million and $50.9 million, respectively. Contributions from noncontrolling interest primarily consisted of contributions from TD to Pony Express. Distributions to noncontrolling interests consisted of distributions to TEP unitholders of $30.2 million, Tallgrass Equity distributions to Exchange Right Holders of $18.9 million and distributions to Pony Express noncontrolling interests in the aggregate of $1.8 million.

Other Contributions and Distributions

During the three months ended March 31, 2017, TEP received contributions from TD of $2.3 million, primarily to indemnify TEP for costs associated with Trailblazer's Pipeline Integrity Management Program, as discussed in Note 14 – Legal and Environmental Matters.

XML

Net Income per Class A Share Net Income per Class A Share

3 Months Ended

Mar. 31, 2017

Earnings Per Share [Abstract]

Net Income per Class A Share

Basic net income per Class A share is determined by dividing net income attributable to TEGP by the weighted average number of outstanding Class A shares during the period. Class B shares do not share in the earnings of the Partnership. Accordingly, basic and diluted net income per Class B share has not been presented.

Diluted net income per Class A share is determined by dividing net income attributable to TEGP by the weighted average number of outstanding diluted Class A shares during the period. For purposes of calculating diluted net income per Class A share, we considered the impact of possible future exercises of the Exchange Right by the Exchange Right Holders on both net income attributable to TEGP and the diluted weighted average number of Class A shares outstanding. The Exchange Right Holders refers to the group of persons who collectively own all of TEGP's outstanding Class B shares and an equivalent number of Tallgrass Equity units. The Exchange Right Holders are entitled to exercise the right to exchange their Tallgrass Equity units (together with an equivalent number of TEGP Class B shares) for TEGP Class A shares at an exchange ratio of one TEGP Class A share for each Tallgrass Equity unit exchanged, which we refer to as the Exchange Right. The Exchange Right Holders primarily consist of Kelso & Company and its affiliated investment funds, The Energy & Minerals Group and its affiliated investment funds, and Tallgrass KC, LLC, which is an entity owned by certain members of TEGP's and TEP's management.

Pursuant to the TEGP partnership agreement and the Tallgrass Equity limited liability company agreement, our capital structure and the capital structure of Tallgrass Equity will generally replicate one another in order to maintain the one-for-one exchange ratio between the Tallgrass Equity units and Class B shares, on the one hand, and our Class A shares, on the other hand. As a result, the exchange of any Class B shares for Class A shares does not have a dilutive effect on basic net income per Class A share. However, for the three months ended March 31, 2017 and 2016, the potential issuance of TEGP Equity Participation Shares would have had a dilutive effect on basic net income per Class A share.

All net income or loss from Terminals and NatGas prior to TEP's acquisition on January 1, 2017 is allocated to predecessor operations in the condensed consolidated statements of income. Historical earnings of transferred businesses for periods prior to the date of those common control transactions are solely those of the general partner, and therefore we have appropriately excluded any allocation to the TEP limited partner units when determining net income available to TEP common unitholders. Accordingly, no net income or loss from Terminals and NatGas is allocated to our Class A shareholders. We present the financial results of any transferred business prior to the transaction date in the line item "Predecessor operations interest in net income" in the table below.

The following table illustrates the calculation of basic and diluted net income per Class A share for the three months ended March 31, 2017 and 2016:

	Three Months Ended March 31,
	2017		2016
	(in thousands, except per share data)
Basic Net Income per Class A Share
Net income attributable to TEGP, excluding predecessor operations interest	$	12,029	$	7,589
Basic weighted average Class A Shares outstanding	58,075		47,725
Basic net income per Class A share	$	0.21	$	0.16
Diluted Net Income per Class A Share
Net income attributable to TEGP, excluding predecessor operations interest	$	12,029	$	7,589
Incremental net income attributable to TEGP including the effect of the assumed issuance of Equity Participation Shares	8		—
Net income attributable to TEGP including incremental net income from assumed issuance of Equity Participation Shares	$	12,037	$	7,589
Basic weighted average Class A Shares outstanding	58,075		47,725
Equity Participation Shares equivalent shares	90		—
Diluted weighted average Class A Shares outstanding	58,165		47,725
Diluted net income per Class A Share	$	0.21	$	0.16

XML

Regulatory Matters

3 Months Ended

Mar. 31, 2017

Regulatory Matters [Abstract]

Regulatory Matters

There are no regulatory proceedings challenging the transportation rates of Pony Express, Rockies Express, Tallgrass Interstate Gas Transmission, LLC ("TIGT") or Trailblazer Pipeline Company LLC ("Trailblazer"). We have certain regulatory filings currently pending with the FERC, including the following:

Rockies Express

Rockies Express Zone 3 Capacity Enhancement Project – FERC Docket No. CP15-137-000

On March 31, 2015 in Docket No. CP15-137-000, Rockies Express filed with the FERC an application for authorization to construct and operate (1) three new mainline compressor stations located in Pickaway and Fayette Counties, Ohio and Decatur County, Indiana; (2) additional compressors at an existing compressor station in Muskingum County, Ohio; and (3) certain ancillary facilities. The facilities increased the Rockies Express Zone 3 east-to-west mainline capacity by 0.8 Bcf/d. Pursuant to the FERC's obligations under the National Environmental Policy Act, FERC staff issued an Environmental Assessment for the project on August 31, 2015. On February 25, 2016, the FERC issued a Certificate of Public Convenience and Necessity authorizing Rockies Express to proceed with the project. On March 14, 2016, Rockies Express commenced construction of the project facilities. The project was placed in-service for the 0.8 Bcf/d on January 6, 2017.

2016 Annual and Interim FERC Fuel Tracking Filings - FERC Docket Nos. RP16-702 and RP17-240

On March 1, 2016, Rockies Express made its annual fuel tracker filing with a proposed effective date of April 1, 2016 in Docket No. RP16-702. The FERC issued an order accepting the filing on March 25, 2016. On December 1, 2016, Rockies Express made an interim fuel tracker filing with a proposed effective date of January 1, 2017 in Docket No. RP17-240. The FERC issued an order accepting the filing on December 29, 2016.

Electric Power Charge Clarification - FERC Docket No. RP17-285

On December 21, 2016, in Docket No. RP17-285, Rockies Express proposed certain revisions to the General Terms and Conditions of its tariff to clarify that the electric power costs associated with the operation of gas coolers installed in association with the Zone 3 Capacity Enhancement Project, at both electric and gas powered stations, will be included in the Power Cost Tracker. Several shippers submitted comments on the proposal. The FERC issued an order on January 19, 2017 accepting the proposed revisions permitting the recovery of electric power costs from the operation of both gas and electric powered compressor stations, subject to certain clarifications.

2017 Annual FERC Fuel Tracking Filing - FERC Docket No. RP17-401-000

On February 13, 2017, in Docket No. RP17-401-000, Rockies Express made its annual fuel and power cost tracker filing with a proposed effective date of April 1, 2017. The FERC issued an order accepting the filing, including certain requested waivers, on March 21, 2017.

TIGT

General Rate Case Filing - FERC Docket No. RP16-137-000, et seq.

On October 30, 2015, TIGT filed a general rate case with the FERC pursuant to Section 4 of the National Gas Act ("NGA"). The rate case proposed, among other things, a general system-wide increase in the maximum tariff rates for all firm and interruptible services offered by TIGT, certain changes to the transportation rate design of its system, a fixed fuel and lost and unaccounted for ("FL&U") and power cost tracker, and certain pro forma tariff records reflecting revisions to TIGT's Tariff.

On June 8, 2016, TIGT filed an Offer of Settlement (the "TIGT Rate Case Settlement") with the FERC, which resolved all issues the FERC had set for hearing. Following certification by the Administrative Law Judge and approval by the FERC, TIGT filed revised tariff records to implement the TIGT Rate Case Settlement, which the FERC subsequently approved on December 23, 2016. Per the terms of the TIGT Rate Case Settlement, TIGT is required to file a new general rate case on May 1, 2019 (provided that such rate case is not pre-empted by a pre-filing settlement).

On February 3, 2017, the FERC accepted TIGT’s pro forma tariff records, subject to conditions, and directed TIGT to file the actual tariff records within 30 days. TIGT subsequently submitted a compliance filing to implement the actual tariff records and restate its tariff to be effective April 1, 2017 and also filed to cancel its existing tariff (which was ultimately superseded by the new tariff). On March 16, 2017, the FERC accepted both filings.

2017 Annual Fuel Tracker Filing - FERC Docket No. RP17-428-000

On February 27, 2017, TIGT made its annual fuel tracker filing with a proposed effective date of April 1, 2017 in Docket No. RP17-428-000. The filing incorporated the FL&U tracker and power cost tracker mechanisms agreed to in the TIGT Rate Case Settlement. The FERC accepted the filing on March 21, 2017.

Trailblazer

2017 Annual Fuel Tracker Filing - FERC Docket No. RP17-549-000

On March 22, 2017, Trailblazer made its annual fuel tracker filing with a proposed effective date of May 1, 2017 in Docket No. RP15-549. This filing incorporates the revised fuel tracker and power cost tracker mechanisms agreed to in the Stipulation and Agreement, which resolved all outstanding issues related to Trailblazer fuel recoveries. The FERC accepted the filing on April 19, 2017.

XML

Legal and Environmental Matters

3 Months Ended

Mar. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Legal and Environmental Matters

Legal

In addition to the matters discussed below, we are a defendant in various lawsuits arising from the day-to-day operations of our business. Although no assurance can be given, we believe, based on our experiences to date, that the ultimate resolution of such routine items will not have a material adverse impact on our business, financial position, results of operations, or cash flows.

We have evaluated claims in accordance with the accounting guidance for contingencies that we deem both probable and reasonably estimable and, accordingly, have recorded no reserve for legal claims as of March 31, 2017 or December 31, 2016.

Rockies Express

Ultra Resources

In early 2016, Ultra Resources, Inc. ("Ultra") defaulted on its firm transportation service agreement for approximately 0.2 Bcf/d through November 11, 2019. In late March 2016, Rockies Express terminated Ultra's service agreement. On April 14, 2016, Rockies Express filed a lawsuit against Ultra for breach of contract and damages in Harris County, Texas, seeking approximately $303 million in damages and other relief. On April 29, 2016, Ultra and certain of its debtor affiliates filed for protection under Chapter 11 of the United States Bankruptcy Code in United States Bankruptcy Court for the Southern District of Texas, which operated as a stay of the Harris County state court proceeding.

On January 12, 2017, Rockies Express and Ultra entered into an agreement to settle Rockies Express' approximately $303 million claim against Ultra's bankruptcy estate. In accordance with the settlement agreement, Ultra has agreed to make a cash payment to Rockies Express of $150 million no later than July 12, 2017, and Ultra has entered into a new, seven-year firm transportation agreement with Rockies Express commencing December 1, 2019, for west-to-east service of 0.2 Bcf/d at a rate of approximately $0.37, or approximately $26.8 million annually. The settlement was part of Ultra's Chapter 11 reorganization plan, which was confirmed by the U.S. Bankruptcy Court on March 14, 2017. On April 12, 2017, Ultra announced that it successfully completed its restructuring in the U.S. Bankruptcy Court and emerged from Chapter 11 bankruptcy.

Michels Corporation

On June 17, 2014, Michels Corporation ("Michels") filed a complaint and request for relief against Rockies Express in the Court of Common Pleas, Monroe County, Ohio, as a result of work performed by Michels to construct the Seneca Lateral Pipeline in Ohio. Michels sought unspecified damages from Rockies Express and asserted claims of breach of contract, negligent misrepresentation, unjust enrichment and quantum meruit. Michels also filed notices of Mechanic's Liens in Monroe and Noble Counties, asserting $24.2 million as the amount due.

On February 2, 2017, Rockies Express and Michels agreed to resolve Michels' claims for a $10 million cash payment by Rockies Express. The cash payment was inclusive of approximately $5.9 million that Rockies Express had been withholding from Michels. Subsequently, Rockies Express and Michels entered into a definitive agreement with respect to the settlement and Rockies Express made the $10 million cash payment to Michels on February 16, 2017.

Environmental, Health and Safety

We are subject to a variety of federal, state and local laws that regulate permitted activities relating to air and water quality, waste disposal, and other environmental matters. We believe that compliance with these laws will not have a material adverse impact on our business, cash flows, financial position or results of operations. However, there can be no assurances that future events, such as changes in existing laws, the promulgation of new laws, or the development of new facts or conditions will not cause us to incur significant costs. We had environmental reserves of $3.8 million and $4.0 million at March 31, 2017 and December 31, 2016, respectively.

TMID

Casper Plant, EPA Notice of Violation

In August 2011, the EPA and the Wyoming Department of Environmental Quality ("WDEQ") conducted an inspection of the Leak Detection and Repair ("LDAR") Program at the Casper Gas Plant in Wyoming. In September 2011, Tallgrass Midstream, LLC ("TMID") received a letter from the EPA alleging violations of the Standards of Performance of Equipment Leaks for Onshore Natural Gas Processing Plant requirements under the Clean Air Act. TMID received a letter from the EPA concerning settlement of this matter in April 2013 and received additional settlement communications from the EPA and Department of Justice beginning in July 2014. Settlement negotiations are continuing, including the expected inclusion of TIGT as a party to any possible settlement as a result of TIGT owning a compressor that is located adjacent to the Casper Gas Plant site.

Casper Mystery Bridge Superfund Site

The Casper Gas Plant is part of the Mystery Bridge Road/U.S. Highway 20 Superfund Site also known as Casper Mystery Bridge Superfund Site. Remediation work at the Casper Gas Plant has been completed and we have requested that the portion of the site attributable to us be delisted from the National Priorities List.

Casper Gas Plant

On November 25, 2014, WDEQ issued a Notice of Violation for violations of Part 60 Subpart OOOO related to the Depropanizer project (wv-14388, issued 7/9/13) in Docket No. 5506-14. TMID had discussed the issues in a meeting with WDEQ in Cheyenne on November 17, 2014, and submitted a disclosure on November 20, 2014 detailing the regulatory issues and potential violations. The project triggered a modification of Subpart OOOO for the entire plant. The project equipment as well as plant equipment subjected to Subpart OOOO was not monitored timely, and initial notification was not made timely. Settlement negotiations with WDEQ are currently ongoing.

Trailblazer

Pipeline Integrity Management Program

Trailblazer is currently operating at less than its current maximum allowable operating pressure ("MAOP"), public notice of which was first provided in June 2014. As a result of smart tool surveys in 2014, Trailblazer has identified approximately 25 - 35 miles of pipe that will likely need to be repaired or replaced in order for the pipeline to operate at its MAOP of 1,000 pounds per square inch across all segments of the Trailblazer Pipeline. Such repair or replacement will likely occur over a period of years, depending upon the remediation and repair plan implemented by Trailblazer. Segments of the Trailblazer Pipeline that require full replacement could cost as much as $2.7 million per mile and repair costs on sections of the pipeline that do not require full replacement are expected to be less on a per mile basis. The current pressure reduction is not expected to prevent Trailblazer from fulfilling its firm service obligations at existing subscription levels and to date it has not had a material adverse financial impact on us.

With respect to the approximately 25 - 35 miles of pipe that has been identified, Trailblazer completed 32 excavation digs in 2015 at an aggregate cost of approximately $1.3 million. During 2016, Trailblazer completed additional excavation digs and replaced approximately 8 miles of pipe at an aggregate cost of approximately $19.0 million. In 2017, Trailblazer intends to complete final remediation and cleanup of the pipe replacement at an estimated cost of $2.5 million. Trailblazer is currently exploring all possible cost recovery options to recover such out of pocket costs, including recovery through a general rate increase, negotiated rate agreements with its customers, or other FERC-approved recovery mechanisms.

In connection with our acquisition of the Trailblazer Pipeline, TD agreed to contractually indemnify TEP for certain out of pocket costs related to repairing or remediating the Trailblazer Pipeline, to the extent that such actions were necessitated by external corrosion caused by the pipeline's disbonded Hi-Melt CTE coating. The contractual indemnity provided by TD was capped at $20 million and was subject to a $1.5 million deductible. TEP has received $20 million from TD pursuant to the contractual indemnity, as of March 31, 2017.

Pony Express

Pipeline Integrity

In connection with certain crack tool runs on the Pony Express System completed in 2015 and 2016, Pony Express completed approximately $9.8 million of remediation for anomalies identified on the Pony Express System associated with portions of the pipeline converted from natural gas to crude oil service, and expects to complete additional remediation in 2017 on the Pony Express System of approximately $9 million.

Terminals

System Failures

In January 2017, approximately 10,000 bbls of crude oil were released at the Sterling Terminal as the result of a defective roof drain system on a storage tank. The release was restricted to the containment area designed for such purpose and approximately 9,000 bbls were recovered. We currently expect that the total cost to remediate the release will be less than $600,000.

XML

Reporting Segments

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Reporting Segments

Our operations are located in the United States. We are organized into three reportable segments: (1) Crude Oil Transportation & Logistics, (2) Natural Gas Transportation & Logistics, and (3) Processing & Logistics.

Crude Oil Transportation & Logistics

The Crude Oil Transportation & Logistics segment is engaged in the ownership and operation of the Pony Express System, which is a FERC-regulated crude oil pipeline serving the Bakken Shale, Denver-Julesburg and Powder River Basins, and other nearby oil producing basins. The mainline portion of the Pony Express System was placed in service in October 2014. The Pony Express System also includes a lateral pipeline in Northeast Colorado, which interconnects with the Pony Express System just east of Sterling, Colorado and was placed in service in the second quarter of 2015. The Crude Oil Transportation & Logistics segment also includes our 100% membership interest in Terminals acquired effective January 1, 2017.

Natural Gas Transportation & Logistics

The Natural Gas Transportation & Logistics segment is engaged in the ownership and operation of FERC-regulated interstate natural gas pipelines and an integrated natural gas storage facility that provide services to on-system customers (such as third-party LDCs), industrial users and other shippers. The Natural Gas Transportation & Logistics segment includes our 100% membership interest in NatGas acquired effective January 1, 2017 and our 49.99% membership interest in Rockies Express, including the additional 24.99% membership interest acquired effective March 31, 2017.

Processing & Logistics

The Processing & Logistics segment is engaged in the ownership and operation of natural gas processing, treating and fractionation facilities that produce NGLs and residue gas that is sold in local wholesale markets or delivered into pipelines for transportation to additional end markets, as well as water business services provided primarily to the oil and gas exploration and production industry and the transportation of NGLs.

Corporate and Other

Corporate and Other includes corporate overhead costs that are not directly associated with the operations of our reportable segments, such as interest and fees associated with our revolving credit facilities and the 2024 Notes, public company costs, and equity-based compensation expense.

These segments are monitored separately by management for performance and are consistent with internal financial reporting. These segments have been identified based on the differing products and services, regulatory environment and the expertise required for their respective operations.

The following tables set forth our segment information for the periods indicated:

	Three Months Ended March 31, 2017							Three Months Ended March 31, 2016
Revenue:	Total Revenue		Inter- Segment			External Revenue		Total Revenue		Inter- Segment			External Revenue
	(in thousands)
Crude Oil Transportation & Logistics	$	85,092	$	—		$	85,092	$	94,654	$	—		$	94,654
Natural Gas Transportation & Logistics	36,428		(1,445		)	34,983		32,668		(1,355		)	31,313
Processing & Logistics	24,325		—			24,325		21,201		—			21,201
Corporate and Other	—		—			—		—		—			—
Total revenue	$	145,845	$	(1,445	)	$	144,400	$	148,523	$	(1,355	)	$	147,168

	Three Months Ended March 31, 2017									Three Months Ended March 31, 2016
Operating Income:	Total Operating Income			Inter- Segment			External Operating Income			Total Operating Income			Inter- Segment			External Operating Income
	(in thousands)
Crude Oil Transportation & Logistics	$	44,715		$	1,344		$	46,059		$	53,961		$	1,345		$	55,306
Natural Gas Transportation & Logistics	18,168			(1,445		)	16,723			12,345			(1,355		)	10,990
Processing & Logistics	4,116			101			4,217			178			10			188
Corporate and Other	(3,773		)	—			(3,773		)	(3,039		)	—			(3,039		)
Total Operating Income	$	63,226		$	—		$	63,226		$	63,445		$	—		$	63,445
Reconciliation to Net Income:
Interest expense, net							(16,017		)							(8,677		)
Unrealized gain (loss) on derivative instruments							1,885									(8,946		)
Equity in earnings of unconsolidated investment							20,738									709
Other income, net							70									566
Net income before tax							$	69,902								$	47,097

	Three Months Ended March 31,
Capital Expenditures:	2017		2016
	(in thousands)
Crude Oil Transportation & Logistics	$	10,436	$	15,973
Natural Gas Transportation & Logistics	4,655		2,133
Processing & Logistics	11,678		3,101
Corporate and Other	—		—
Total capital expenditures	$	26,769	$	21,207

Assets:	March 31, 2017		December 31, 2016
	(in thousands)
Crude Oil Transportation & Logistics	$	1,492,333	$	1,493,866
Natural Gas Transportation & Logistics	1,633,358		1,176,147
Processing & Logistics	418,479		411,999
Corporate and Other	529,240		543,468
Total assets	$	4,073,410	$	3,625,480

XML

Subsequent Events Subsequent Events

3 Months Ended

Mar. 31, 2017

Subsequent Events [Abstract]

Subsequent Events

[PLACEHOLDER]

XML

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2017

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

These condensed consolidated financial statements and related notes for the three months ended March 31, 2017 and 2016 were prepared in accordance with the accounting principles contained in the Financial Accounting Standards Board's Accounting Standards Codification, the single source of generally accepted accounting principles in the United States of America ("GAAP") for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The year-end balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP for annual periods. The condensed consolidated financial statements for the three months ended March 31, 2017 and 2016 include all normal, recurring adjustments and disclosures that we believe are necessary for a fair statement of the results for the interim periods. In this report, the Financial Accounting Standards Board is referred to as the FASB and the FASB Accounting Standards Codification is referred to as the Codification or ASC. Certain prior period amounts have been reclassified to conform to the current presentation.

Our financial results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2017. The accompanying condensed consolidated interim financial statements should be read in conjunction with our audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016 ("2016 Form 10-K") filed with the United States Securities and Exchange Commission (the "SEC") on February 15, 2017.

Consolidation

The condensed consolidated financial statements include the accounts of TEGP and its subsidiaries and controlled affiliates. Significant intra-entity items have been eliminated in the presentation. Net income or loss from consolidated subsidiaries that are not wholly-owned by TEGP is attributed to TEGP and noncontrolling interests in accordance with the respective ownership interests.

As further discussed in Note 4 – Acquisitions, TEP closed the acquisition of Terminals and NatGas on January 1, 2017. As the acquisitions of Terminals and NatGas are considered transactions between entities under common control, and a change in reporting entity, the financial information presented has been recast to include Terminals and NatGas for all periods presented. Net equity distributions of the Predecessor Entities included in the condensed consolidated financial statements represent transfers of cash as a result of TD's centralized cash management system prior to January 1, 2017 for Terminals and NatGas, under which cash balances were swept daily and recorded as loans from the subsidiaries of TD. These loans were then periodically recorded as equity distributions.

The accompanying condensed consolidated financial statements of TEGP include historical cost-basis accounts of the assets and liabilities of the Predecessor Entities for the periods prior to January 1, 2017, the date TEP acquired Terminals and NatGas from TD, and include charges from TD for direct costs and allocations of indirect corporate overhead. Management believes that the allocation methods are reasonable, and that the allocations are representative of costs that would have been incurred on a stand-alone basis. TEGP, TEP, and the Predecessor Entities are all considered "entities under common control" as defined under GAAP and, as such, the transfers between the entities of the assets and liabilities have been recorded by TEGP at historical cost.

A variable interest entity ("VIE") is a legal entity that possesses any of the following characteristics: an insufficient amount of equity at risk to finance its activities, equity owners who do not have the power to direct the significant activities of the entity (or have voting rights that are disproportionate to their ownership interest), or equity owners who do not have the obligation to absorb expected losses or the right to receive the expected residual returns of the entity. Companies are required to consolidate a VIE if they are its primary beneficiary, which is the enterprise that has a variable interest that could be significant to the VIE and the power to direct the activities that most significantly impact the entity's economic performance. We have presented separately in our condensed consolidated balance sheets, to the extent material, the liabilities of our consolidated VIEs for which creditors do not have recourse to our general credit. Our consolidated VIEs do not have material assets that can only be used to settle specific obligations of the consolidated VIEs. Tallgrass Equity is considered to be a VIE under the applicable authoritative guidance. Based on a qualitative analysis in accordance with the applicable authoritative guidance, we have determined that we are the primary beneficiary as we have the right to receive benefits of Tallgrass Equity that could potentially be significant to Tallgrass Equity. TEP is also considered to be a VIE under the applicable authoritative guidance. Based on a qualitative analysis, we have determined that TEP GP is the primary beneficiary of TEP and we continue to consolidate TEP accordingly.

Use of Estimates

Use of Estimates

Certain amounts included in or affecting these condensed consolidated financial statements and related disclosures must be estimated, requiring management to make certain assumptions with respect to values or conditions which cannot be known with certainty at the time the financial statements are prepared. These estimates and assumptions affect the amounts reported for assets, liabilities, revenues, and expenses during the reporting period, and the disclosure of contingent assets and liabilities at the date of the financial statements. Management evaluates these estimates on an ongoing basis, utilizing historical experience, consultation with experts and other methods it considers reasonable in the particular circumstances. Nevertheless, actual results may differ significantly from these estimates. Any effects on our business, financial position or results of operations resulting from revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known.

Accounting Pronouncements

Accounting Pronouncement Recently Adopted

ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting"

In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Among other changes, ASU 2016-09 allows an entity to make an entity-wide accounting policy election to either estimate the number of awards expected to vest (consistent with current GAAP) or account for forfeitures when they occur.

The amendments in ASU 2016-09 are effective for public entities for annual periods and interim periods within those annual periods beginning after December 15, 2016. Early adoption is permitted. We adopted the guidance in ASU 2016-09 effective January 1, 2017 and made a policy election to account for forfeitures when they occur. The adoption of ASU 2016-09 did not have a material impact on our consolidated financial statements.

Accounting Pronouncements Not Yet Adopted

Revenue Recognition

In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 provides a comprehensive and converged set of principles-based revenue recognition guidelines which supersede the existing industry and transaction-specific standards. The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, entities must apply a five-step process to (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 also mandates disclosure of sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The disclosure requirements include qualitative and quantitative information about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract.

Throughout 2015 and 2016, the FASB has issued a series of subsequent updates to the revenue recognition guidance in Topic 606, including ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers.

The amendments in ASU 2014-09, ASU 2016-08, ASU 2016-10, ASU 2016-12, and ASU 2016-20 are effective for public entities for annual reporting periods beginning after December 15, 2017, and for interim periods within that reporting period. Early application is permitted for annual reporting periods beginning after December 15, 2016.

We are currently evaluating the impact of our pending adoption of the revised guidance. The status of our implementation is as follows:

• We have formed an implementation team that meets to discuss implementation challenges, technical interpretations, industry-specific treatment of certain revenue contract types, and project status.

• We are currently reviewing contracts for each revenue stream identified within each of our business segments. Through this process, we are determining and documenting expected changes in revenue recognition upon adoption of the revised guidance.

• We plan to evaluate the potential information technology and internal control changes that will be required for adoption based on the findings from our contract review process.

• We plan to provide internal training and awareness related to the revised guidance to the key stakeholders throughout our organization.

Through the contract review process currently underway, management has identified several areas of potential impact, including the accounting for non-cash consideration, particularly in our Crude Oil Transportation & Logistics and Processing & Logistics segments, and the timing of revenue recognition with respect to deficiency payments received in our Crude Oil Transportation & Logistics segment. We will continue to conduct our contract review process throughout 2017 and, as a result, additional areas of impact may be identified. We are in the process of quantifying the impact of adoption but cannot reasonably estimate such amount at this time. We expect to adopt the new standard on January 1, 2018 using the modified retrospective approach. This approach allows us to apply the new standard to (i) all new contracts entered into after January 1, 2018 and (ii) all existing contracts for which all (or substantially all) of the revenue has not been recognized under legacy revenue guidance as of January 1, 2018 through a cumulative adjustment to equity. Consolidated revenues presented in our comparative financial statements for periods prior to January 1, 2018 would not be revised.

ASU No. 2016-02, "Leases (Topic 842)"

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). ASU 2016-02 provides a comprehensive update to the lease accounting topic in the Codification intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in ASU 2016-02 include a revised definition of a lease as well as certain scope exceptions. The changes primarily impact lessee accounting, while lessor accounting is largely unchanged from previous GAAP.

The amendments in ASU 2016-02 are effective for public entities for annual reporting periods beginning after December 15, 2018, and for interim periods within that reporting period. Early application is permitted. We are currently evaluating the impact of ASU 2016-02.

ASU No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business"

In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses by providing a screen to determine when an integrated set of assets and activities is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. The ASU also narrows the definition of the term "output" so that the term is consistent with how outputs are described under the revenue recognition guidance in Topic 606.

The amendments in ASU 2017-01 are effective for public entities for annual periods and interim periods within those annual periods beginning after December 15, 2017. Early adoption is permitted in certain circumstances. We are currently evaluating the impact of ASU 2017-01, but do not anticipate a material impact on our consolidated financial statements.

ASU No. 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment"

In January 2017, the FASB issued ASU No. 2017-04, which simplifies the subsequent measurement of goodwill by eliminating "Step 2" from the goodwill impairment test, which involved calculating the implied fair value of goodwill by determining the fair value at the impairment testing date of a reporting unit's assets and liabilities. Instead, under the simplified test approach, an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit.

The amendments in ASU 2017-04 are effective for public entities for annual periods and interim periods within those annual periods beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We are currently evaluating the impact of ASU 2017-04.

XML

Acquisitions Equity Method Investments (Policies)

3 Months Ended

Mar. 31, 2017

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments, Policy

TEP's investment in Rockies Express is recorded under the equity method of accounting and is reported as "Unconsolidated investments" on our condensed consolidated balance sheets. As a result of the common control nature of the transaction, the 24.99% membership interest in Rockies Express was transferred to TEP at TD's historical carrying amount, including the remaining unamortized basis difference driven by the difference between the fair value of the investment and the book value of the underlying assets and liabilities on November 13, 2012, the date of acquisition by TD. For additional information, see Note 8 – Investments in Unconsolidated Affiliates.

As of March 31, 2017, the negative basis difference carried over from TD was approximately $386.8 million. The amount of the basis difference allocated to property, plant and equipment is accreted over 35 years, which equates to the 2.86% composite depreciation rate utilized by Rockies Express to depreciate the underlying property, plant and equipment. The amount allocated to long-term debt is amortized over the remaining life of the various debt facilities.

XML

Acquisitions Equity Method Investments (Tables)

3 Months Ended

Mar. 31, 2017

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

The basis difference associated with the recently acquired 24.99% membership interest in Rockies Express at March 31, 2017 was allocated as follows:

	Basis Difference			Amortization Period
	(in thousands)
Long-term debt	$	19,504		2 - 25 years
Property, plant and equipment	(406,301		)	35 years
Total basis difference	$	(386,797	)

Summarized financial information for Rockies Express is as follows:

	Three Months Ended March 31, 2017
Revenue	$	201,338
Operating income	$	107,369
Net income to Members	$	66,250

Impact of Adjustments Related to Transaction Among Entities Under Common Control, Balance Sheet [Table Text Block]

The results of our acquisitions of Terminals and NatGas are included in the condensed consolidated balance sheets as of March 31, 2017 and December 31, 2016. The following table presents our previously reported December 31, 2016 condensed consolidated balance sheet, adjusted for the acquisitions of Terminals and NatGas:

	December 31, 2016
	TEGP (As previously reported)		Consolidate Terminals		Consolidate NatGas		TEGP (As currently reported)
	(in thousands)
ASSETS
Current Assets:
Cash and cash equivalents	$	2,459	$	—	$	—	$	2,459
Accounts receivable, net	59,469		38		29		59,536
Gas imbalances	1,597		—		—		1,597
Inventories	12,805		288		—		13,093
Derivative assets at fair value	10,967		—		—		10,967
Prepayments and other current assets	6,820		808		—		7,628
Total Current Assets	94,117		1,134		29		95,280
Property, plant and equipment, net	2,012,263		66,969		—		2,079,232
Goodwill	343,288		—		—		343,288
Intangible asset, net	93,522		—		—		93,522
Unconsolidated investments	461,915		13,710		—		475,625
Deferred tax asset	521,454		—		—		521,454
Deferred financing costs, net	6,042		—		—		6,042
Deferred charges and other assets	9,637		1,400		—		11,037
Total Assets	$	3,542,238	$	83,213	$	29	$	3,625,480
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable	$	24,403	$	46	$	—	$	24,449
Accounts payable to related parties	5,768		56		—		5,824
Gas imbalances	1,239		—		—		1,239
Derivative liabilities at fair value	556		—		—		556
Accrued taxes	16,328		668		—		16,996
Accrued liabilities	16,578		177		—		16,755
Deferred revenue	60,757		—		—		60,757
Other current liabilities	6,446		—		—		6,446
Total Current Liabilities	132,075		947		—		133,022
Long-term debt, net	1,555,981		—		—		1,555,981
Other long-term liabilities and deferred credits	7,063		—		—		7,063
Total Long-term Liabilities	1,563,044		—		—		1,563,044
Equity:
Net Equity	1,847,119		82,266		29		1,929,414
Total Equity	1,847,119		82,266		29		1,929,414
Total Liabilities and Equity	$	3,542,238	$	83,213	$	29	$	3,625,480

Impact of Adjustments Related to Transaction Among Entities Under Common Control, Income Statement [Table Text Block]

The results of our acquisitions of Terminals and NatGas are included in the condensed consolidated statements of income for the three months ended March 31, 2017 and 2016. The following tables present the previously reported condensed consolidated statements of income for the three months ended March 31, 2016, adjusted for the acquisitions of Terminals and NatGas:

	Three Months Ended March 31, 2016
	TEGP (As previously reported)			Consolidate Terminals		Consolidate NatGas		Elimination (1)			TEGP (As currently reported)
	(in thousands)
Revenues:
Crude oil transportation services	$	94,572		$	—	$	—	$	—		$	94,572
Natural gas transportation services	29,280			—		—		—			29,280
Sales of natural gas, NGLs, and crude oil	13,926			—		—		—			13,926
Processing and other revenues	7,627			2,909		1,681		(2,827		)	9,390
Total Revenues	145,405			2,909		1,681		(2,827		)	147,168
Operating Costs and Expenses:
Cost of sales (exclusive of depreciation and amortization shown below)	13,568			—		—		—			13,568
Cost of transportation services (exclusive of depreciation and amortization shown below)	16,156			200		—		(2,827		)	13,529
Operations and maintenance	12,477			481		—		—			12,958
Depreciation and amortization	21,692			315		—		—			22,007
General and administrative	13,537			474		—		—			14,011
Taxes, other than income taxes	7,506			144		—		—			7,650
Total Operating Costs and Expenses	84,936			1,614		—		(2,827		)	83,723
Operating Income	60,469			1,295		1,681		—			63,445
Other Income (Expense):
Interest expense, net	(8,677		)	—		—		—			(8,677		)
Unrealized loss on derivative instrument	(8,946		)	—		—		—			(8,946		)
Equity in earnings of unconsolidated investments	—			709		—		—			709
Other income, net	566			—		—		—			566
Total Other (Expense) Income	(17,057		)	709		—		—			(16,348		)
Net income before tax	43,412			2,004		1,681		—			47,097
Deferred income tax expense	(2,791		)	—		—		—			(2,791		)
Net income	40,621			2,004		1,681		—			44,306
Net income attributable to noncontrolling interests	(33,032		)	—		—		—			(33,032		)
Net income attributable to TEGP	$	7,589		$	2,004	$	1,681	$	—		$	11,274

⁽¹⁾  Represents the elimination of revenue and cost of transportation services associated with the lease of the Sterling Terminal facilities by Pony Express.

XML

Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2017

Related Party Transactions [Abstract]

Schedule of Transactions with Affiliated Companies

Totals of transactions with affiliated companies, excluding transactions disclosed elsewhere in these notes, are as follows:

	Three Months Ended March 31,
	2017		2016
	(in thousands)
Cost of transportation services (1)	$	4,507	$	4,429
Charges to TEGP: (2)
Property, plant and equipment, net	$	293	$	918
Operations and maintenance	$	6,277	$	6,184
General and administrative	$	9,573	$	9,437

⁽¹⁾  Reflects rent expense for the crude oil storage at the Deeprock Terminal.

⁽²⁾  Charges to TEGP, inclusive of Tallgrass Equity and TEP, include directly charged wages and salaries, other compensation and benefits, and shared services.

Schedule of Balances with Affiliates Included in Accounts Receivables and Accounts Payable in Consolidated Balance Sheets

Details of balances with affiliates included in "Accounts receivable, net" and "Accounts payable to related parties" in the condensed consolidated balance sheets are as follows:

	March 31, 2017		December 31, 2016
	(in thousands)
Receivable from related parties:
Rockies Express Pipeline LLC	$	1,266	$	590
Total receivable from related parties	$	1,266	$	590
Accounts payable to related parties:
Tallgrass Operations, LLC	$	6,047	$	5,811
Tallgrass Management, LLC	20		—
Deeprock Development, LLC	—		13
Total accounts payable to related parties	$	6,067	$	5,824

Schedule of Balances of Gas Imbalance with Affiliated Shippers

Gas imbalances with affiliated shippers are as follows:

	March 31, 2017		December 31, 2016
	(in thousands)
Affiliate gas imbalance receivables	$	—	$	177
Affiliate gas imbalance payables	$	73	$	—

XML

Inventory (Tables)

3 Months Ended

Mar. 31, 2017

Inventory Disclosure [Abstract]

Schedule of Components of Inventory

The components of inventory at March 31, 2017 and December 31, 2016 consisted of the following:

	March 31, 2017		December 31, 2016
	(in thousands)
Crude oil	$	6,903	$	5,462
Materials and supplies	6,455		6,383
Natural gas liquids	573		265
Gas in underground storage	1,716		983
Total inventory	$	15,647	$	13,093

XML

Property, Plant and Equipment (Tables)

3 Months Ended

Mar. 31, 2017

Property, Plant and Equipment [Abstract]

Components of Property Plant and Equipment

A summary of net property, plant and equipment by classification is as follows:

	March 31, 2017			December 31, 2016
	(in thousands)
Crude oil pipelines	$	1,207,727		$	1,202,125
Natural gas pipelines	575,536			572,150
Processing and treating assets	262,447			256,901
General and other	225,243			223,310
Construction work in progress	29,770			20,606
Accumulated depreciation and amortization	(215,053		)	(195,860		)
Total property, plant and equipment, net	$	2,085,670		$	2,079,232

XML

Investments in Unconsolidated Affiliates (Tables)

3 Months Ended

Mar. 31, 2017

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

The basis difference associated with the recently acquired 24.99% membership interest in Rockies Express at March 31, 2017 was allocated as follows:

	Basis Difference			Amortization Period
	(in thousands)
Long-term debt	$	19,504		2 - 25 years
Property, plant and equipment	(406,301		)	35 years
Total basis difference	$	(386,797	)

Summarized financial information for Rockies Express is as follows:

	Three Months Ended March 31, 2017
Revenue	$	201,338
Operating income	$	107,369
Net income to Members	$	66,250

XML

Risk Management (Tables)

3 Months Ended

Mar. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Fair Value of Derivative Contracts

The following table summarizes the fair values of our derivative contracts included in the condensed consolidated balance sheets:

	Balance Sheet Location	March 31, 2017		December 31, 2016
		(in thousands)
Call option derivative (1)	Current assets	$	—	$	10,676
Crude oil derivative contracts (2)	Current assets	$	223	$	—
Natural gas derivative contracts (3)	Current assets	$	81	$	291
Crude oil derivative contracts (2)	Current liabilities	$	—	$	440
Natural gas derivative contracts (3)	Current liabilities	$	—	$	116

⁽¹⁾  As discussed below, in conjunction with TEP's acquisition of an additional 31.3% membership interest in Pony Express effective January 1, 2016, TD granted TEP an 18 month call option covering the 6,518,000 common units issued to TD. As of February 1, 2017, no common units remained subject to the call option.

⁽²⁾  As of March 31, 2017 and December 31, 2016, the fair value shown for crude oil derivative contracts represents the sale of 125,000 barrels of crude oil which will settle throughout 2017.

⁽³⁾  As of March 31, 2017, the fair value shown for natural gas derivative contracts was comprised of derivative volumes for long natural gas fixed-price swaps totaling 0.3 Bcf. As of December 31, 2016, the fair value shown for natural gas derivative contracts was comprised of derivative volumes for short and long natural gas fixed-price swaps totaling 0.3 Bcf and 0.4 Bcf, respectively.

Derivative Contracts Included in Consolidated Statements of Income

The following table summarizes the impact of derivative contracts for the three months ended March 31,2017 and 2016:

	Location of gain (loss) recognized in income on derivatives	Amount of gain (loss) recognized in income on derivatives
			Three Months Ended March 31,
			2017		2016
		(in thousands)
Derivatives not designated as hedging contracts:
Call option derivative	Unrealized gain (loss) on derivative instrument		$	1,885	$	(8,946	)
Natural gas derivative contracts	Sales of natural gas, NGLs, and crude oil		$	173	$	(44	)
Crude oil derivative contracts	Sales of natural gas, NGLs, and crude oil		$	663	$	—

Derivative Instruments Maximum Potential Exposure to Credit Loss [Table Text Block]

The maximum potential exposure to credit losses on our crude oil and natural gas derivative contracts at March 31, 2017 was:

	Asset Position
	(in thousands)
Gross	$	304
Netting agreement impact	—
Cash collateral held	—
Net exposure	$	304

Schedule of Energy Commodity Derivative Contracts Based on Fair Value Hierarchy Established by Codification

The following table summarizes the fair value measurements of our derivative contracts as of March 31, 2017 and December 31, 2016 based on the fair value hierarchy established by the Codification:

			Asset Fair Value Measurements Using
	Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
	(in thousands)
As of March 31, 2017:
Crude oil derivative contracts	$	223	$	—	$	223	$	—
Natural gas derivative contracts	$	81	$	—	$	81	$	—
As of December 31, 2016:
Call option derivative	$	10,676	$	—	$	10,676	$	—
Natural gas derivative contracts	$	291	$	—	$	291	$	—
			Liability Fair Value Measurements Using
	Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
	(in thousands)
As of December 31, 2016:
Crude oil derivative contracts	$	440	$	—	$	440	$	—
Natural gas derivative contracts	$	116	$	—	$	116	$	—

XML

Long-term Debt (Tables)

3 Months Ended

Mar. 31, 2017

Line of Credit Facility [Line Items]

Schedule of Debt

Long-term debt consisted of the following at March 31, 2017 and December 31, 2016:

	March 31, 2017			December 31, 2016
	(in thousands)
Tallgrass Equity revolving credit facility	$	148,000		$	148,000
TEP revolving credit facility	1,567,000			1,015,000
TEP 5.50% senior notes due September 15, 2024	400,000			400,000
Less: Deferred financing costs, net (1)	(6,768		)	(7,019		)
Total long-term debt, net	$	2,108,232		$	1,555,981

⁽¹⁾  Deferred financing costs, net as presented above relate solely to the 2024 Notes. Deferred financing costs associated with our revolving credit facility are presented in noncurrent assets on our condensed consolidated balance sheets.

Carrying Amount and Fair value of Long-term Debt

The following table sets forth the carrying amount and fair value of our long-term debt, which is not measured at fair value in the condensed consolidated balance sheets as of March 31, 2017 and December 31, 2016, but for which fair value is disclosed:

	Fair Value
	Quoted prices in active markets for identical  assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total		Carrying Amount
	(in thousands)
As of March 31, 2017:
Revolving credit facilities	$	—	$	1,715,000	$	—	$	1,715,000	$	1,715,000
2024 Notes	$	—	$	403,252	$	—	$	403,252	$	393,232
As of December 31, 2016:
Revolving credit facilities	$	—	$	1,163,000	$	—	$	1,163,000	$	1,163,000
2024 Notes	$	—	$	398,000	$	—	$	398,000	$	392,981

Tallgrass Equity, LLC

Line of Credit Facility [Line Items]

Schedule of Line of Credit Facilities

The following table sets forth the available borrowing capacity under the Tallgrass Equity revolving credit facility as of March 31, 2017 and December 31, 2016:

	March 31, 2017			December 31, 2016
	(in thousands)
Total capacity under the Tallgrass Equity revolving credit facility	$	150,000		$	150,000
Less: Outstanding borrowings under the Tallgrass Equity revolving credit facility	(148,000		)	(148,000		)
Available capacity under the Tallgrass Equity revolving credit facility	$	2,000		$	2,000

Tallgrass Energy Partners

Line of Credit Facility [Line Items]

Schedule of Line of Credit Facilities

The following table sets forth the available borrowing capacity under the TEP revolving credit facility as of March 31, 2017 and December 31, 2016:

	March 31, 2017			December 31, 2016
	(in thousands)
Total capacity under the TEP revolving credit facility	$	1,750,000		$	1,750,000
Less: Outstanding borrowings under the TEP revolving credit facility (1)	(1,567,000		)	(1,015,000		)
Available capacity under the TEP revolving credit facility	$	183,000		$	735,000

XML

Partnership Equity and Distributions Partnership and Equity and Distributions (Tables)

3 Months Ended

Mar. 31, 2017

Tallgrass Energy GP, LP

Summary of Distributions

The following table details the distributions for the periods indicated:

Three Months Ended	Date Paid	Distributions to Class A Shareholders		Distributions per Class A Share
		(in thousands)
March 31, 2017	May 15, 2017 (1)	$	16,697	$	0.2875
December 31, 2016	February 14, 2017	16,116		0.2775
September 30, 2016	November 14, 2016	12,528		0.2625
June 30, 2016	August 12, 2016	11,693		0.2450
March 31, 2016	May 13, 2016	10,022		0.2100

⁽¹⁾  The distribution announced on April 17, 2017 for the first quarter of 2017 will be paid on May 15, 2017 to Class A shareholders of record at the close of business on April 28, 2017.

Tallgrass Energy Partners

Summary of Distributions

TEP Distributions. The following table shows the distributions for the periods indicated:

		Distributions
		Limited Partner Common Units		General Partner						Distributions per Limited Partner Unit
Three Months Ended	Date Paid			Incentive Distribution Rights		General Partner Units		Total
		(in thousands, except per unit amounts)
March 31, 2017	May 15, 2017 (1)	$	60,486	$	29,840	$	1,040	$	91,366	$	0.8350
December 31, 2016	February 14, 2017	58,793		28,358		1,008		88,159		0.8150
September 30, 2016	November 14, 2016	57,332		26,987		976		85,295		0.7950
June 30, 2016	August 12, 2016	54,442		24,262		911		79,615		0.7550
March 31, 2016	May 13, 2016	48,238		19,816		830		68,884		0.7050

⁽¹⁾  The distribution announced on April 17, 2017 for the first quarter of 2017 will be paid on May 15, 2017 to unitholders of record at the close of business on April 28, 2017.

XML

Net Income per Class A Share Net Income per Class A Share (Tables)

3 Months Ended

Mar. 31, 2017

Earnings Per Share [Abstract]

Summary of Net Income per Class A Share

The following table illustrates the calculation of basic and diluted net income per Class A share for the three months ended March 31, 2017 and 2016:

	Three Months Ended March 31,
	2017		2016
	(in thousands, except per share data)
Basic Net Income per Class A Share
Net income attributable to TEGP, excluding predecessor operations interest	$	12,029	$	7,589
Basic weighted average Class A Shares outstanding	58,075		47,725
Basic net income per Class A share	$	0.21	$	0.16
Diluted Net Income per Class A Share
Net income attributable to TEGP, excluding predecessor operations interest	$	12,029	$	7,589
Incremental net income attributable to TEGP including the effect of the assumed issuance of Equity Participation Shares	8		—
Net income attributable to TEGP including incremental net income from assumed issuance of Equity Participation Shares	$	12,037	$	7,589
Basic weighted average Class A Shares outstanding	58,075		47,725
Equity Participation Shares equivalent shares	90		—
Diluted weighted average Class A Shares outstanding	58,165		47,725
Diluted net income per Class A Share	$	0.21	$	0.16

XML

Reporting Segments (Tables)

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Summary of TEGP's Segment Information of Revenue

The following tables set forth our segment information for the periods indicated:

	Three Months Ended March 31, 2017							Three Months Ended March 31, 2016
Revenue:	Total Revenue		Inter- Segment			External Revenue		Total Revenue		Inter- Segment			External Revenue
	(in thousands)
Crude Oil Transportation & Logistics	$	85,092	$	—		$	85,092	$	94,654	$	—		$	94,654
Natural Gas Transportation & Logistics	36,428		(1,445		)	34,983		32,668		(1,355		)	31,313
Processing & Logistics	24,325		—			24,325		21,201		—			21,201
Corporate and Other	—		—			—		—		—			—
Total revenue	$	145,845	$	(1,445	)	$	144,400	$	148,523	$	(1,355	)	$	147,168

Summary of TEGP's Segment Information of Earnings

	Three Months Ended March 31, 2017									Three Months Ended March 31, 2016
Operating Income:	Total Operating Income			Inter- Segment			External Operating Income			Total Operating Income			Inter- Segment			External Operating Income
	(in thousands)
Crude Oil Transportation & Logistics	$	44,715		$	1,344		$	46,059		$	53,961		$	1,345		$	55,306
Natural Gas Transportation & Logistics	18,168			(1,445		)	16,723			12,345			(1,355		)	10,990
Processing & Logistics	4,116			101			4,217			178			10			188
Corporate and Other	(3,773		)	—			(3,773		)	(3,039		)	—			(3,039		)
Total Operating Income	$	63,226		$	—		$	63,226		$	63,445		$	—		$	63,445
Reconciliation to Net Income:
Interest expense, net							(16,017		)							(8,677		)
Unrealized gain (loss) on derivative instruments							1,885									(8,946		)
Equity in earnings of unconsolidated investment							20,738									709
Other income, net							70									566
Net income before tax							$	69,902								$	47,097

Summary of TEGP's Segment Capital Expenditures

	Three Months Ended March 31,
Capital Expenditures:	2017		2016
	(in thousands)
Crude Oil Transportation & Logistics	$	10,436	$	15,973
Natural Gas Transportation & Logistics	4,655		2,133
Processing & Logistics	11,678		3,101
Corporate and Other	—		—
Total capital expenditures	$	26,769	$	21,207

Summary of TEGP's Segment Information of Assets

Assets:	March 31, 2017		December 31, 2016
	(in thousands)
Crude Oil Transportation & Logistics	$	1,492,333	$	1,493,866
Natural Gas Transportation & Logistics	1,633,358		1,176,147
Processing & Logistics	418,479		411,999
Corporate and Other	529,240		543,468
Total assets	$	4,073,410	$	3,625,480

XML

Description of Business - Additional Information (Detail) - shares	3 Months Ended
	Mar. 31, 2017	Jan. 01, 2017
Organization [Line Items]
Limited Liability Company (LLC) or General Partner, Ownership Interest	1.14%
Deeprock Development, LLC
Organization [Line Items]
Equity Method Investment, Ownership Percentage		20.00%
Rockies Express Pipeline LLC
Organization [Line Items]
Equity Method Investment, Ownership Percentage	50.00%
Tallgrass Terminals, LLC
Organization [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired		100.00%
Rockies Express Pipeline LLC | Tallgrass Development LP
Organization [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired	24.99%
Tallgrass NatGas Operator, LLC
Organization [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired		100.00%
Tallgrass Equity, LLC
Organization [Line Items]
Variable Interest Entity, Ownership Percentage	36.94%
Tallgrass MLP GP, LLC
Organization [Line Items]
Limited Liability Company (LLC) or General Partner, Ownership Interest	100.00%
Tallgrass Energy Partners
Organization [Line Items]
General partner units issued	834,391
Subsidiary Of Limited Liability Company Or Limited Partnership Ownership Interest Units	20,000,000
Ownership Percentage Of Aggregate Partnership Equity, Including General Partner Units	27.39%

XML

Variable Interest Entity VIE Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred tax asset	$ 518,790	$ 521,454

XML

Acquisitions Equity Method Investments (Details) - Rockies Express Pipeline LLC $ in Thousands	3 Months Ended
	Mar. 31, 2017 USD ($)
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity	$ (386,797)
Basis Difference, Amortization Period	35 years
Long-term Debt
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity	$ 19,504
Property, Plant and Equipment
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity	$ (406,301)
Basis Difference, Amortization Period	35 years
Minimum | Long-term Debt
Schedule of Equity Method Investments [Line Items]
Basis Difference, Amortization Period	2 years
Maximum | Long-term Debt
Schedule of Equity Method Investments [Line Items]
Basis Difference, Amortization Period	25 years

XML

Acquisitions Impact of Acquisition, Balance Sheet (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Business Acquisition [Line Items]
Cash and cash equivalents	$ 2,053	$ 2,459	$ 3,799	$ 2,234
Accounts receivable, net	57,274	59,536
Gas imbalances	636	1,597
Inventories	15,647	13,093
Derivative assets at fair value	304	10,967
Prepayments and other current assets	6,785	7,628
Total Current Assets	82,699	95,280
Property, plant and equipment, net	2,085,670	2,079,232
Goodwill	343,288	343,288
Intangible asset, net	92,764	93,522
Unconsolidated investments	935,918	475,625
Deferred tax asset	518,790	521,454
Deferred financing costs, net	5,039	6,042
Deferred charges and other assets	9,242	11,037
Total Assets	4,073,410	3,625,480
Accounts payable	22,050	24,449
Accounts payable to related parties	6,067	5,824
Gas imbalances	1,473	1,239
Derivative liabilities at fair value	0	556
Accrued taxes	21,857	16,996
Accrued liabilities	6,796	16,755
Deferred revenue	77,067	60,757
Other current liabilities	6,001	6,446
Total Current Liabilities	141,311	133,022
Long-term debt, net	2,108,232	1,555,981
Other long-term liabilities and deferred credits	7,125	7,063
Total Long-term Liabilities	2,115,357	1,563,044
Partners' Capital, Including Portion Attributable to Noncontrolling Interest	1,816,742	1,929,414
Total Liabilities and Equity	$ 4,073,410	3,625,480
Tallgrass Energy GP, LP
Business Acquisition [Line Items]
Cash and cash equivalents		2,459
Accounts receivable, net		59,469
Gas imbalances		1,597
Inventories		12,805
Derivative assets at fair value		10,967
Prepayments and other current assets		6,820
Total Current Assets		94,117
Property, plant and equipment, net		2,012,263
Goodwill		343,288
Intangible asset, net		93,522
Unconsolidated investments		461,915
Deferred tax asset		521,454
Deferred financing costs, net		6,042
Deferred charges and other assets		9,637
Total Assets		3,542,238
Accounts payable		24,403
Accounts payable to related parties		5,768
Gas imbalances		1,239
Derivative liabilities at fair value		556
Accrued taxes		16,328
Accrued liabilities		16,578
Deferred revenue		60,757
Other current liabilities		6,446
Total Current Liabilities		132,075
Long-term debt, net		1,555,981
Other long-term liabilities and deferred credits		7,063
Total Long-term Liabilities		1,563,044
Partners' Capital, Including Portion Attributable to Noncontrolling Interest		1,847,119
Total Liabilities and Equity		3,542,238
Tallgrass Terminals, LLC
Business Acquisition [Line Items]
Cash and cash equivalents		0
Accounts receivable, net		38
Gas imbalances		0
Inventories		288
Derivative assets at fair value		0
Prepayments and other current assets		808
Total Current Assets		1,134
Property, plant and equipment, net		66,969
Goodwill		0
Intangible asset, net		0
Unconsolidated investments		13,710
Deferred tax asset		0
Deferred financing costs, net		0
Deferred charges and other assets		1,400
Total Assets		83,213
Accounts payable		46
Accounts payable to related parties		56
Gas imbalances		0
Derivative liabilities at fair value		0
Accrued taxes		668
Accrued liabilities		177
Deferred revenue		0
Other current liabilities		0
Total Current Liabilities		947
Long-term debt, net		0
Other long-term liabilities and deferred credits		0
Total Long-term Liabilities		0
Partners' Capital, Including Portion Attributable to Noncontrolling Interest		82,266
Total Liabilities and Equity		83,213
Tallgrass NatGas Operator, LLC
Business Acquisition [Line Items]
Cash and cash equivalents		0
Accounts receivable, net		29
Gas imbalances		0
Inventories		0
Derivative assets at fair value		0
Prepayments and other current assets		0
Total Current Assets		29
Property, plant and equipment, net		0
Goodwill		0
Intangible asset, net		0
Unconsolidated investments		0
Deferred tax asset		0
Deferred financing costs, net		0
Deferred charges and other assets		0
Total Assets		29
Accounts payable		0
Accounts payable to related parties		0
Gas imbalances		0
Derivative liabilities at fair value		0
Accrued taxes		0
Accrued liabilities		0
Deferred revenue		0
Other current liabilities		0
Total Current Liabilities		0
Long-term debt, net		0
Other long-term liabilities and deferred credits		0
Total Long-term Liabilities		0
Partners' Capital, Including Portion Attributable to Noncontrolling Interest		29
Total Liabilities and Equity		$ 29

XML

Acquisitions Impact of Acquisition, Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Business Acquisition [Line Items]
Crude oil transportation services	$ 84,331	$ 94,572
Natural gas transportation services	31,685	29,280
Sales of natural gas, NGLs, and crude oil	15,381	13,926
Processing and other revenues	13,003	9,390
Total Revenues	144,400	147,168
Cost of sales (exclusive of depreciation and amortization shown below)	12,370	13,568
Cost of transportation services (exclusive of depreciation and amortization shown below)	13,503	13,529
Operations and maintenance	12,903	12,958
Depreciation and amortization	21,403	22,007
General and administrative	14,217	14,011
Taxes, other than income taxes	8,226	7,650
Total Operating Costs and Expenses	81,174	83,723
Operating Income	63,226	63,445
Interest expense, net	(16,017)	(8,677)
Unrealized loss on derivative instrument	1,885	(8,946)
Equity in earnings of unconsolidated investments	20,738	709
Other income, net	70	566
Total Other Income (Expense)	6,676	(16,348)
Net income before income tax	69,902	47,097
Deferred income tax expense		(2,791)
Net income	67,238	44,306
Net income attributable to noncontrolling interests	(55,209)	(33,032)
Net income attributable to TEGP	$ 12,029	11,274
Consolidation, Eliminations
Business Acquisition [Line Items]
Crude oil transportation services		0
Natural gas transportation services		0
Sales of natural gas, NGLs, and crude oil		0
Processing and other revenues		(2,827)
Total Revenues		(2,827)
Cost of sales (exclusive of depreciation and amortization shown below)		0
Cost of transportation services (exclusive of depreciation and amortization shown below)		(2,827)
Operations and maintenance		0
Depreciation and amortization		0
General and administrative		0
Taxes, other than income taxes		0
Total Operating Costs and Expenses		(2,827)
Operating Income		0
Interest expense, net		0
Unrealized loss on derivative instrument		0
Equity in earnings of unconsolidated investments		0
Other income, net		0
Total Other Income (Expense)		0
Net income before income tax		0
Deferred income tax expense		0
Net income		0
Net income attributable to noncontrolling interests		0
Net income attributable to TEGP		0
Tallgrass Energy GP, LP
Business Acquisition [Line Items]
Crude oil transportation services		94,572
Natural gas transportation services		29,280
Sales of natural gas, NGLs, and crude oil		13,926
Processing and other revenues		7,627
Total Revenues		145,405
Cost of sales (exclusive of depreciation and amortization shown below)		13,568
Cost of transportation services (exclusive of depreciation and amortization shown below)		16,156
Operations and maintenance		12,477
Depreciation and amortization		21,692
General and administrative		13,537
Taxes, other than income taxes		7,506
Total Operating Costs and Expenses		84,936
Operating Income		60,469
Interest expense, net		(8,677)
Unrealized loss on derivative instrument		(8,946)
Equity in earnings of unconsolidated investments		0
Other income, net		566
Total Other Income (Expense)		(17,057)
Net income before income tax		43,412
Deferred income tax expense		(2,791)
Net income		40,621
Net income attributable to noncontrolling interests		(33,032)
Net income attributable to TEGP		7,589
Tallgrass Terminals, LLC
Business Acquisition [Line Items]
Crude oil transportation services		0
Natural gas transportation services		0
Sales of natural gas, NGLs, and crude oil		0
Processing and other revenues		2,909
Total Revenues		2,909
Cost of sales (exclusive of depreciation and amortization shown below)		0
Cost of transportation services (exclusive of depreciation and amortization shown below)		200
Operations and maintenance		481
Depreciation and amortization		315
General and administrative		474
Taxes, other than income taxes		144
Total Operating Costs and Expenses		1,614
Operating Income		1,295
Interest expense, net		0
Unrealized loss on derivative instrument		0
Equity in earnings of unconsolidated investments		709
Other income, net		0
Total Other Income (Expense)		709
Net income before income tax		2,004
Deferred income tax expense		0
Net income		2,004
Net income attributable to noncontrolling interests		0
Net income attributable to TEGP		2,004
Tallgrass NatGas Operator, LLC
Business Acquisition [Line Items]
Crude oil transportation services		0
Natural gas transportation services		0
Sales of natural gas, NGLs, and crude oil		0
Processing and other revenues		1,681
Total Revenues		1,681
Cost of sales (exclusive of depreciation and amortization shown below)		0
Cost of transportation services (exclusive of depreciation and amortization shown below)		0
Operations and maintenance		0
Depreciation and amortization		0
General and administrative		0
Taxes, other than income taxes		0
Total Operating Costs and Expenses		0
Operating Income		1,681
Interest expense, net		0
Unrealized loss on derivative instrument		0
Equity in earnings of unconsolidated investments		0
Other income, net		0
Total Other Income (Expense)		0
Net income before income tax		1,681
Deferred income tax expense		0
Net income		1,681
Net income attributable to noncontrolling interests		0
Net income attributable to TEGP		$ 1,681

XML

Acquisitions (Details) - USD ($) $ in Thousands			3 Months Ended
	Mar. 31, 2017	Jan. 01, 2017	Mar. 31, 2017	Mar. 31, 2016	May 06, 2016
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross			$ 140,000	$ 0
Rockies Express Pipeline LLC | Tallgrass Energy Partners
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross	$ 400,000
Terminals and NatGas | Tallgrass Energy Partners
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross		$ 140,000
Tallgrass Development LP | Rockies Express Pipeline LLC
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired	24.99%		24.99%
Sempra U.S. Gas and Power | Rockies Express Pipeline LLC
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired					25.00%
Rockies Express Pipeline LLC
Business Acquisition [Line Items]
Equity Method Investment, Ownership Percentage	50.00%		50.00%
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity	$ (386,797)		$ (386,797)
Basis Difference, Amortization Period			35 years
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service			2.86%
Rockies Express Pipeline LLC | Tallgrass Energy Partners
Business Acquisition [Line Items]
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity	$ 386,800		$ 386,800

XML

Related Party Transactions - Schedule of Transactions with Affiliated Companies (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Related Party Transaction [Line Items]
Cost of transportation services (1)	$ 4,507	$ 4,429
Operation and maintenance
Related Party Transaction [Line Items]
Expenses related to transactions with affiliated companies	6,277	6,184
General and administrative expense
Related Party Transaction [Line Items]
Expenses related to transactions with affiliated companies	9,573	9,437
Property, Plant and Equipment
Related Party Transaction [Line Items]
Property, plant and equipment, net	$ 293	$ 918

XML

Related Party Transactions - Schedule of Balances with Affiliates Included in Accounts Receivables and Accounts Payable in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Related Party Transaction [Line Items]
Accounts Receivable, Related Parties, Current	$ 1,266	$ 590
Accounts payable to related parties	6,067	5,824
Rockies Express Pipeline LLC
Related Party Transaction [Line Items]
Accounts Receivable, Related Parties, Current	1,266	590
Tallgrass Operations, LLC
Related Party Transaction [Line Items]
Accounts payable to related parties	6,047	5,811
Tallgrass Management, LLC
Related Party Transaction [Line Items]
Accounts payable to related parties	20	0
Deeprock Development, LLC
Related Party Transaction [Line Items]
Accounts payable to related parties	$ 0	$ 13

XML

Related Party Transactions - Schedule of Balances of Gas Imbalance with Affiliated Shippers (Detail) - Affiliated Shippers - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Related Party Transaction [Line Items]
Affiliate gas imbalance receivables	$ 0	$ 177
Affiliate gas imbalance payables	$ 73	$ 0

XML

Related Party Transactions - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2017 USD ($)
Public Company Expense | Tallgrass Development LP
Related Party Transaction [Line Items]
Public company cost reimbursement	$ 500,000

XML

Inventory Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Crude oil	$ 6,903	$ 5,462
Materials and supplies	6,455	6,383
Natural gas liquids	573	265
Gas in underground storage	1,716	983
Inventory, Net	$ 15,647	$ 13,093

XML

Property Plant and Equipment - Components of Property Plant and Equipment (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Accumulated depreciation and amortization	$ (215,053)	$ (195,860)
Property, plant and equipment	2,085,670	2,079,232
Crude oil pipelines
Property, Plant and Equipment [Line Items]
Property , plant and equipment	1,207,727	1,202,125
Natural gas pipelines
Property, Plant and Equipment [Line Items]
Property , plant and equipment	575,536	572,150
Processing and treating assets
Property, Plant and Equipment [Line Items]
Property , plant and equipment	262,447	256,901
General and other
Property, Plant and Equipment [Line Items]
Property , plant and equipment	225,243	223,310
Construction work in progress
Property, Plant and Equipment [Line Items]
Property , plant and equipment	$ 29,770	$ 20,606

XML

Investments in Unconsolidated Affiliates Equity Method Investments (Details) - Rockies Express Pipeline LLC $ in Thousands	3 Months Ended
	Mar. 31, 2017 USD ($)
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Summarized Financial Information, Revenue	$ 201,338
Equity Method Investment Summarized Financial Information Operating Income	107,369
Equity Method Investment, Summarized Financial Information, Net Income (Loss)	$ 66,250

XML

Investments in Unconsolidated Affiliates Investments in Unconsolidated Affiliates (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Jan. 01, 2017	May 06, 2016
Schedule of Equity Method Investments [Line Items]
Equity in earnings of unconsolidated investments	$ 20,738	$ 709
Payments to Acquire Equity Method Investments	6,693	$ 63
Deeprock Development, LLC
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage			20.00%
Rockies Express Pipeline LLC
Schedule of Equity Method Investments [Line Items]
Equity in earnings of unconsolidated investments	20,046
Cash Dividends Paid to Parent Company by Unconsolidated Subsidiaries	30,100
Payments to Acquire Equity Method Investments	$ 6,693
Equity Method Investment, Ownership Percentage	50.00%
Rockies Express Pipeline LLC | Sempra U.S. Gas and Power
Schedule of Equity Method Investments [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired				25.00%
Rockies Express Pipeline LLC | Tallgrass Development LP
Schedule of Equity Method Investments [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired	24.99%

XML

Risk Management - Schedule of Fair Value of Derivative Contracts (Detail) $ in Thousands	Jan. 01, 2016 shares	Mar. 31, 2017 USD ($) Bcf bbl	Dec. 31, 2016 USD ($) Bcf bbl
Equity Option
Derivatives, Fair Value [Line Items]
Derivative asset at fair value			$ 10,676
Energy Related Derivative
Derivatives, Fair Value [Line Items]
Derivative asset at fair value		$ 223
Derivative liability at fair value			440
Energy commodity derivative contracts
Derivatives, Fair Value [Line Items]
Derivative asset at fair value		81	291
Derivative liability at fair value			116
Other Current Assets | Equity Option
Derivatives, Fair Value [Line Items]
Derivative asset at fair value		0	10,676
Other Current Assets | Energy Related Derivative
Derivatives, Fair Value [Line Items]
Derivative asset at fair value		223	0
Other Current Assets | Energy commodity derivative contracts
Derivatives, Fair Value [Line Items]
Derivative asset at fair value		81	291
Other Current Liabilities | Energy Related Derivative
Derivatives, Fair Value [Line Items]
Derivative liability at fair value		0	440
Other Current Liabilities | Energy commodity derivative contracts
Derivatives, Fair Value [Line Items]
Derivative liability at fair value		$ 0	$ 116
Commodity | Energy Related Derivative
Derivatives, Fair Value [Line Items]
Derivative, Nonmonetary Notional Amount | bbl		125,000	125,000
Pony Express Pipeline
Derivatives, Fair Value [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired	31.30%
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares	6,518,000
Pony Express Pipeline | Equity Option
Derivatives, Fair Value [Line Items]
Derivative, Term of Contract	18 months
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares	6,518,000
Long | Commodity | Energy commodity derivative contracts
Derivatives, Fair Value [Line Items]
Derivative, Nonmonetary Notional Amount | Bcf		0.3	0.4
Short | Commodity | Energy commodity derivative contracts
Derivatives, Fair Value [Line Items]
Derivative, Nonmonetary Notional Amount | Bcf			0.3

XML

Risk Management - Derivative Contracts Included in Consolidated Statement of Income (Detail) - Derivatives not designated as hedging contracts [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Equity Option
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	$ 1,885	$ (8,946)
Energy commodity derivative contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	173	(44)
Energy Related Derivative
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	$ 663	$ 0

XML

Risk Management Risk Management - Derivative Instruments Maximum Potential Exposure to Credit Loss (Details) - Energy commodity derivative contracts $ in Thousands	Mar. 31, 2017 USD ($)
Concentration Risk [Line Items]
Gross	$ 304
Netting agreement impact	0
Cash collateral held	0
Net exposure	$ 304

XML

Risk Management - Schedule of Energy Commodity Derivative Contracts Based on Fair Value Hierarchy Established by Codification (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Energy Related Derivative
Derivatives, Fair Value [Line Items]
Derivative asset at fair value	$ 223
Derivative liability at fair value		$ 440
Energy Related Derivative | Quoted prices in active markets for identical assets (Level 1)
Derivatives, Fair Value [Line Items]
Derivative asset at fair value	0
Derivative liability at fair value		0
Energy Related Derivative | Significant other observable inputs (Level 2)
Derivatives, Fair Value [Line Items]
Derivative asset at fair value	223
Derivative liability at fair value		440
Energy Related Derivative | Significant unobservable inputs (Level 3)
Derivatives, Fair Value [Line Items]
Derivative asset at fair value	0
Derivative liability at fair value		0
Energy commodity derivative contracts
Derivatives, Fair Value [Line Items]
Derivative asset at fair value	81	291
Derivative liability at fair value		116
Energy commodity derivative contracts | Quoted prices in active markets for identical assets (Level 1)
Derivatives, Fair Value [Line Items]
Derivative asset at fair value	0	0
Derivative liability at fair value		0
Energy commodity derivative contracts | Significant other observable inputs (Level 2)
Derivatives, Fair Value [Line Items]
Derivative asset at fair value	81	291
Derivative liability at fair value		116
Energy commodity derivative contracts | Significant unobservable inputs (Level 3)
Derivatives, Fair Value [Line Items]
Derivative asset at fair value	$ 0	0
Derivative liability at fair value		0
Equity Option
Derivatives, Fair Value [Line Items]
Derivative asset at fair value		10,676
Equity Option | Quoted prices in active markets for identical assets (Level 1)
Derivatives, Fair Value [Line Items]
Derivative asset at fair value		0
Equity Option | Significant other observable inputs (Level 2)
Derivatives, Fair Value [Line Items]
Derivative asset at fair value		10,676
Equity Option | Significant unobservable inputs (Level 3)
Derivatives, Fair Value [Line Items]
Derivative asset at fair value		$ 0

XML

Risk Management Risk Management - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands					3 Months Ended
	Feb. 01, 2017	Oct. 31, 2016	Jul. 21, 2016	Jan. 01, 2016	Mar. 31, 2017	Mar. 31, 2016
Derivative [Line Items]
Partners' Capital Account, Units, Treasury Units Purchased	736,262
Partial exercise of call option	$ 35,300				$ 35,335	$ 0
Pony Express Pipeline
Derivative [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired				31.30%
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares				6,518,000
Equity Option
Derivative [Line Items]
Partners' Capital Account, Units, Treasury Units Purchased	1,703,094	1,251,760	3,563,146
Partial exercise of call option	$ 72,400	$ 53,200	$ 151,400		$ 72,381	$ 0
Equity Option | Pony Express Pipeline
Derivative [Line Items]
Derivative, Term of Contract				18 months
Option Indexed to Issuer's Equity, Strike Price				$ 42.50
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares				6,518,000

XML

Long-term Debt Schedule of Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Total long-term debt, net	$ 2,108,232	$ 1,555,981
Revolving Credit Facility
Debt Instrument [Line Items]
Total long-term debt, net	1,715,000	1,163,000
Tallgrass Equity, LLC | Revolving Credit Facility
Debt Instrument [Line Items]
Long-term Debt, Gross	148,000	148,000
Total long-term debt, net	148,000	148,000
Tallgrass Energy Partners
Debt Instrument [Line Items]
Less: Deferred financing costs, net (1)	(6,768)	(7,019)
Tallgrass Energy Partners | Senior Notes
Debt Instrument [Line Items]
Long-term Debt, Gross	400,000	400,000
Tallgrass Energy Partners | Revolving Credit Facility
Debt Instrument [Line Items]
Long-term Debt, Gross	1,567,000	1,015,000
Total long-term debt, net	$ 1,567,000	$ 1,015,000

XML

Long-term Debt Capacity under Revolving Credit Facility - Tallgrass Equity (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016	May 12, 2015
Line of Credit Facility [Line Items]
Long-term Debt	$ 2,108,232,000	$ 1,555,981,000
Revolving Credit Facility
Line of Credit Facility [Line Items]
Long-term Debt	1,715,000,000	1,163,000,000
Tallgrass Equity, LLC | Revolving Credit Facility
Line of Credit Facility [Line Items]
Long-term Debt	148,000,000	148,000,000
Line of Credit Facility, Remaining Borrowing Capacity	2,000,000	2,000,000
Tallgrass Equity, LLC | Barclays Bank
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	150,000,000	150,000,000	$ 150,000,000
Tallgrass Energy Partners | Revolving Credit Facility
Line of Credit Facility [Line Items]
Long-term Debt	1,567,000,000	1,015,000,000
Line of Credit Facility, Remaining Borrowing Capacity	183,000,000	735,000,000
Tallgrass Energy Partners | Barclays Bank
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,750,000,000	$ 1,750,000,000

XML

Long-term Debt - Carrying Amount and Fair Value of Long-term Debt (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Long-term Debt	$ 2,108,232	$ 1,555,981
Senior Notes
Debt Instrument [Line Items]
Long-term Debt, Fair Value	403,252	398,000
Long-term Debt	393,232	392,981
Senior Notes | Quoted prices in active markets for identical assets (Level 1)
Debt Instrument [Line Items]
Long-term Debt, Fair Value	0	0
Senior Notes | Significant other observable inputs (Level 2)
Debt Instrument [Line Items]
Long-term Debt, Fair Value	403,252	398,000
Senior Notes | Significant unobservable inputs (Level 3)
Debt Instrument [Line Items]
Long-term Debt, Fair Value	0	0
Revolving Credit Facility
Debt Instrument [Line Items]
Long-term Debt, Fair Value	1,715,000	1,163,000
Long-term Debt	1,715,000	1,163,000
Revolving Credit Facility | Quoted prices in active markets for identical assets (Level 1)
Debt Instrument [Line Items]
Long-term Debt, Fair Value	0	0
Revolving Credit Facility | Significant other observable inputs (Level 2)
Debt Instrument [Line Items]
Long-term Debt, Fair Value	1,715,000	1,163,000
Revolving Credit Facility | Significant unobservable inputs (Level 3)
Debt Instrument [Line Items]
Long-term Debt, Fair Value	$ 0	$ 0

XML

Long-term Debt - Additional Information (Detail)		3 Months Ended
	Sep. 01, 2016 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	May 12, 2015 USD ($)
Tallgrass Energy Partners
Debt Instrument [Line Items]
Debt, Weighted Average Interest Rate		2.95%
Debt Instrument, Interest Rate, Effective Percentage		3.12%
Tallgrass Energy Partners | Barclays Bank
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		$ 1,750,000,000	$ 1,750,000,000
Tallgrass Energy Partners | Maximum | Revolving Credit Facility | Barclays Bank
Debt Instrument [Line Items]
Consolidated leverage ratio		4.75
Credit facility commitment fee		0.50%
Contingent Consolidated Leverage Ratio		5.25
Tallgrass Energy Partners | Minimum | Revolving Credit Facility | Barclays Bank
Debt Instrument [Line Items]
Credit facility commitment fee		0.30%
Consolidated Interest Coverage Ratio One		2.50
Tallgrass Equity, LLC
Debt Instrument [Line Items]
Debt, Weighted Average Interest Rate		3.48%
Debt Instrument, Interest Rate, Effective Percentage		3.61%
Tallgrass Equity, LLC | Barclays Bank
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		$ 150,000,000	$ 150,000,000	$ 150,000,000
Tallgrass Equity, LLC | Revolving Credit Facility | Barclays Bank
Debt Instrument [Line Items]
Credit facility commitment fee		0.50%
Tallgrass Equity, LLC | Maximum | Revolving Credit Facility | Barclays Bank
Debt Instrument [Line Items]
Consolidated leverage ratio		3.00
Senior Notes | Tallgrass Energy Partners
Debt Instrument [Line Items]
Proceeds from Issuance of Senior Long-term Debt	$ 400,000,000
Debt Instrument, Interest Rate, Stated Percentage	5.50%

XML

Partnership Equity and Distributions Partnership and Equity Distributions - TEGP Summary of Distributions (Details) - Tallgrass Energy GP, LP - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016
Distribution Made to Limited Partner [Line Items]
Partners' Capital Account, Distributions	$ 16,697	$ 16,116	$ 12,528	$ 11,693	$ 10,022
Distribution Made to Limited Partner, Distributions Paid, Per Unit	$ 0	$ 0	$ 0	$ 0	$ 0.210

XML

Partnership Equity and Distributions Partnership Equity and Distributions - TEP Summary of Distributions (Details) - Tallgrass Energy Partners - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016
Distribution Made to Limited Partner [Line Items]
Limited Partner Common Units	$ 60,486	$ 58,793	$ 57,332	$ 54,442	$ 48,238
Incentive Distribution Rights	29,840	28,358	26,987	24,262	19,816
General Partner Units	$ 1,040	$ 1,008	$ 976	$ 911	$ 830
Distribution Made to Limited Partner, Distributions Paid, Per Unit	$ 0.8350	$ 0.8150	$ 0.7950	$ 0.7550	$ 0.7050

XML

Partnership Equity and Distributions - Additional Information (Detail) - USD ($)			1 Months Ended	3 Months Ended
	Feb. 01, 2017	Jan. 01, 2016	May 03, 2017	Mar. 31, 2017	Mar. 31, 2016	May 17, 2016	May 13, 2015
Limited Partners' Capital Account [Line Items]
Partners' Capital Account, Units, Treasury Units Purchased	736,262
Payments for Repurchase of Common Stock	$ (35,300,000)			$ (35,335,000)	$ 0
Treasury Stock Acquired, Average Cost Per Share	$ 47.99
Partners' Capital Account, Authorized Amount						$ 657,500,000	$ 100,200,000
Partners' Capital Account, Units, Sold in Public Offering				2,087,647
SharesIssuedPricePerShareQTD				$ 48.23
Issuance of TEP units to public, net of offering costs				$ 99,400,000
LimitedPartnerOfferingCosts				1,300,000
Distributions to noncontrolling interests				$ 71,426,000	50,919,000
Pony Express Pipeline
Limited Partners' Capital Account [Line Items]
Equity interest held by noncontrolling interests				2.00%
Distributions to noncontrolling interests				$ 0	425,882,000
Tallgrass Energy Partners
Limited Partners' Capital Account [Line Items]
Equity interest held by noncontrolling interests				72.29%
Tallgrass Equity, LLC
Limited Partners' Capital Account [Line Items]
Equity interest held by noncontrolling interests				63.06%
Noncontrolling Interest
Limited Partners' Capital Account [Line Items]
Payments for Repurchase of Common Stock				$ 31,717,000
Contributions from noncontrolling interest				700,000	7,152,000
Distributions to noncontrolling interests				(71,400,000)	50,919,000
Tallgrass Equity distributions to noncontrolling interests				27,500,000	18,900,000
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders				1,400,000.0	1,800,000.0
Contributions from TD				1,451,000
Noncontrolling Interest | Tallgrass Energy Partners
Limited Partners' Capital Account [Line Items]
Issuance of TEP units to public, net of offering costs				89,353,000	11,490,000
Partners' Capital Account, Distributions				42,500,000	30,200,000
Total Partner Equity Including Portion Attributable to Noncontrolling Interest
Limited Partners' Capital Account [Line Items]
Payments for Repurchase of Common Stock				35,335,000
Contributions from noncontrolling interest				710,000	7,152,000
Distributions to noncontrolling interests				71,426,000	50,919,000
Contributions from TD				2,301,000
Total Partner Equity Including Portion Attributable to Noncontrolling Interest | Tallgrass Energy Partners
Limited Partners' Capital Account [Line Items]
Issuance of TEP units to public, net of offering costs				$ 99,373,000	$ 12,636,000
Subsequent Event
Limited Partners' Capital Account [Line Items]
Partners' Capital Account, Units, Sold in Public Offering			253,414
SharesIssuedPricePerShareQTD			$ 53.65
Issuance of TEP units to public, net of offering costs			$ 13,500,000
LimitedPartnerOfferingCosts			$ 100,000
Pony Express Pipeline
Limited Partners' Capital Account [Line Items]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares		6,518,000
Business Acquisition, Percentage of Voting Interests Acquired		31.30%

XML

Net Income per Class A Share Net Income per Class A Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share [Abstract]
Net income attributable to TEGP, excluding predecessor operations interest	$ 12,029	$ 7,589
Basic average number of Class A shares outstanding	58,075	47,725
Basic net income per Class A share	$ 0.21	$ 0.16
Incremental net income attributable to TEGP including the effect of the assumed issuance of Equity Participation Shares	$ 8	$ 0
Net income attributable to TEGP including incremental net income from assumed issuance of Equity Participation Shares	$ 12,037	$ 7,589
Equity Participation Shares equivalent shares	90	0
Diluted weighted average Class A Shares outstanding	58,165	47,725
Diluted net income per Class A Share	$ 0.21	$ 0.16

XML

Regulatory Matters Regulatory Matters (Details) MMBTU / d in Thousands	Jan. 06, 2017 MMBTU / d
Regulated Operations [Abstract]
Capacity Enhancement	0

XML

Legal and Environmental Matters - Additional Information (Detail)				1 Months Ended	3 Months Ended	12 Months Ended			15 Months Ended	24 Months Ended
	Feb. 16, 2017 USD ($)	Feb. 02, 2017 USD ($)	Jan. 12, 2017 USD ($) Bcf / d	Jan. 31, 2017 bbl	Mar. 31, 2017 USD ($) ft-lb	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($) Bcf / d mi	Dec. 31, 2015 USD ($) mi	Mar. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Apr. 14, 2016 USD ($)
Loss Contingencies [Line Items]
Environmental accruals					$ 3,800,000		$ 4,000,000		$ 3,800,000	$ 4,000,000
Aggregate cost of crack tool runs										$ 9,800,000
Crude Oil Spilled or Leaked | bbl				10,000
Crude oil recovered | bbl				9,000
General Partner
Loss Contingencies [Line Items]
Contributions from TD									$ 20,000,000
Subsequent Event
Loss Contingencies [Line Items]
Aggregate cost of crack tool runs						$ 9,000,000
Remediation costs, Anticipated costs						600,000
Trailblazer
Loss Contingencies [Line Items]
Miles of Natural Gas Pipeline Needing Repair or Replacement | mi							8
Maximum Allowable Operating Pressure | ft-lb					144,000
Excavation Digs								32
Aggregate Cost of Excavation Digs								$ 1,300,000
Estimated pipeline replacement costs							$ 19,000,000
Trailblazer | Subsequent Event
Loss Contingencies [Line Items]
Estimated remediation and cleanup costs						$ 2,500,000
Trailblazer | Minimum
Loss Contingencies [Line Items]
Miles of Natural Gas Pipeline Needing Repair or Replacement | mi								25
Trailblazer | Maximum
Loss Contingencies [Line Items]
Miles of Natural Gas Pipeline Needing Repair or Replacement | mi								35
Pipeline replacement costs					$ 2,700,000
Tallgrass Development LP
Loss Contingencies [Line Items]
Contractual indemnity provided to TEP by TD					20,000,000
Annual deductible					1,500,000
Ultra Resources Complaint
Loss Contingencies [Line Items]
Firm transportation service agreement | Bcf / d			0.2				0.2
Gain Contingency, Unrecorded Amount											$ 303,000,000
Litigation Settlement, Amount			$ 150,000,000
Firm Transportation Rate			0.37
Anticipated Annual Revenue			$ 26,800,000
Michels Corporation Complaint
Loss Contingencies [Line Items]
Litigation Settlement, Amount	$ 10,000,000	$ 10,000,000
Withholding for Liquidated Delay Damages and Excess Completion Costs	$ 5,900,000
Loss Contingency, Damages Sought, Value					$ 24,200,000

XML

Reporting Segments - Summary of TEGP's Segment Information of Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Segment Reporting Information [Line Items]
Total Revenues	$ 144,400	$ 147,168
TEGP
Segment Reporting Information [Line Items]
Total Revenues	144,400	147,168
TEGP | Crude Oil Transportation & Logistics
Segment Reporting Information [Line Items]
Total Revenues	85,092	94,654
TEGP | Natural Gas Transportation & Logistics
Segment Reporting Information [Line Items]
Total Revenues	34,983	31,313
TEGP | Processing & Logistics
Segment Reporting Information [Line Items]
Total Revenues	24,325	21,201
TEGP | Corporate and Other
Segment Reporting Information [Line Items]
Total Revenues	0	0
TEGP | Operating Segments
Segment Reporting Information [Line Items]
Total Revenues	145,845	148,523
TEGP | Operating Segments | Crude Oil Transportation & Logistics
Segment Reporting Information [Line Items]
Total Revenues	85,092	94,654
TEGP | Operating Segments | Natural Gas Transportation & Logistics
Segment Reporting Information [Line Items]
Total Revenues	36,428	32,668
TEGP | Operating Segments | Processing & Logistics
Segment Reporting Information [Line Items]
Total Revenues	24,325	21,201
TEGP | Operating Segments | Corporate and Other
Segment Reporting Information [Line Items]
Total Revenues	0	0
TEGP | Inter-Segment
Segment Reporting Information [Line Items]
Total Revenues	(1,445)	(1,355)
TEGP | Inter-Segment | Crude Oil Transportation & Logistics
Segment Reporting Information [Line Items]
Total Revenues	0	0
TEGP | Inter-Segment | Natural Gas Transportation & Logistics
Segment Reporting Information [Line Items]
Total Revenues	(1,445)	(1,355)
TEGP | Inter-Segment | Processing & Logistics
Segment Reporting Information [Line Items]
Total Revenues	0	0
TEGP | Inter-Segment | Corporate and Other
Segment Reporting Information [Line Items]
Total Revenues	$ 0	$ 0

XML

Reporting Segments - Summary of TEGP's Segment Information of Earnings (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Segment Reporting Information [Line Items]
Operating Income	$ 63,226	$ 63,445
Reconciliation to Net Income:
Interest expense, net	16,017	8,677
Unrealized loss on derivative instrument	1,885	(8,946)
Equity in earnings of unconsolidated investments	20,738	709
Other income, net	70	566
Net income before income tax	69,902	47,097
TEGP
Segment Reporting Information [Line Items]
Operating Income	63,226	63,445
Reconciliation to Net Income:
Net income before income tax	69,902	47,097
TEGP | Crude Oil Transportation & Logistics
Segment Reporting Information [Line Items]
Operating Income	46,059	55,306
TEGP | Natural Gas Transportation & Logistics
Segment Reporting Information [Line Items]
Operating Income	16,723	10,990
TEGP | Processing & Logistics
Segment Reporting Information [Line Items]
Operating Income	4,217	188
TEGP | Corporate and Other
Segment Reporting Information [Line Items]
Operating Income	(3,773)	(3,039)
TEGP | Operating Segments
Segment Reporting Information [Line Items]
Operating Income	63,226	63,445
TEGP | Operating Segments | Crude Oil Transportation & Logistics
Segment Reporting Information [Line Items]
Operating Income	44,715	53,961
TEGP | Operating Segments | Natural Gas Transportation & Logistics
Segment Reporting Information [Line Items]
Operating Income	18,168	12,345
TEGP | Operating Segments | Processing & Logistics
Segment Reporting Information [Line Items]
Operating Income	4,116	178
TEGP | Operating Segments | Corporate and Other
Segment Reporting Information [Line Items]
Operating Income	(3,773)	(3,039)
TEGP | Inter-Segment
Segment Reporting Information [Line Items]
Operating Income	0	0
TEGP | Inter-Segment | Crude Oil Transportation & Logistics
Segment Reporting Information [Line Items]
Operating Income	1,344	1,345
TEGP | Inter-Segment | Natural Gas Transportation & Logistics
Segment Reporting Information [Line Items]
Operating Income	(1,445)	(1,355)
TEGP | Inter-Segment | Processing & Logistics
Segment Reporting Information [Line Items]
Operating Income	101	10
TEGP | Inter-Segment | Corporate and Other
Segment Reporting Information [Line Items]
Operating Income	0	0
TEGP | Segment Reconciling Items
Reconciliation to Net Income:
Interest expense, net	16,017	8,677
Unrealized loss on derivative instrument	1,885	(8,946)
Equity in earnings of unconsolidated investments	20,738	709
Other income, net	$ 70	$ 566

XML

Reporting Segments Reporting Segments - Summary of TEP's Segment Information for Payments to Acquire Plant, Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Segment Reporting Information [Line Items]
Capital expenditures	$ 26,769	$ 21,207
TEGP
Segment Reporting Information [Line Items]
Capital expenditures	26,769	21,207
TEGP | Crude Oil Transportation & Logistics
Segment Reporting Information [Line Items]
Capital expenditures	10,436	15,973
TEGP | Natural Gas Transportation & Logistics
Segment Reporting Information [Line Items]
Capital expenditures	4,655	2,133
TEGP | Processing & Logistics
Segment Reporting Information [Line Items]
Capital expenditures	11,678	3,101
TEGP | Corporate and Other
Segment Reporting Information [Line Items]
Capital expenditures	$ 0	$ 0

XML

Reporting Segments - Summary of TEGP's Segment Information of Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Segment assets	$ 4,073,410	$ 3,625,480
TEGP
Segment Reporting Information [Line Items]
Segment assets	4,073,410	3,625,480
TEGP | Crude Oil Transportation & Logistics
Segment Reporting Information [Line Items]
Segment assets	1,492,333	1,493,866
TEGP | Natural Gas Transportation & Logistics
Segment Reporting Information [Line Items]
Segment assets	1,633,358	1,176,147
TEGP | Processing & Logistics
Segment Reporting Information [Line Items]
Segment assets	418,479	411,999
TEGP | Corporate and Other
Segment Reporting Information [Line Items]
Segment assets	$ 529,240	$ 543,468

XML

Reporting Segments - Additional Information (Detail) - Segment	3 Months Ended
	Mar. 31, 2017	Jan. 01, 2017
Segment Reporting Information [Line Items]
Number of reportable segments	3
Tallgrass Terminals, LLC
Segment Reporting Information [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired		100.00%
Tallgrass NatGas Operator, LLC
Segment Reporting Information [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired		100.00%
Rockies Express Pipeline LLC | Tallgrass Development LP
Segment Reporting Information [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired	24.99%
Rockies Express Pipeline LLC
Segment Reporting Information [Line Items]
Equity Method Investment, Ownership Percentage	50.00%