Revenue during the quarter grew 6.83 percent to $160.66 million from $150.38 million in the previous year period. Gross margin for the quarter contracted 130 basis points over the previous year period to 85.18 percent. Total expenses were 55.88 percent of quarterly revenues, down from 58.16 percent for the same period last year. This has led to an improvement of 228 basis points in operating margin to 44.12 percent.

Operating income for the quarter was $70.89 million, compared with $62.92 million in the previous year period.

"Tallgrass Energy again outperformed our expectations and guidance for 2016, largely driven by strong asset performance and the acquisitions of interests in the Pony Express and Rockies Express pipelines," said Tallgrass Energy president and chief executive officer David G. Dehaemers Jr. "We steadily managed TEP through a volatile energy market in 2016, and delivered outstanding distribution growth of approximately 27 percent for TEP and 60 percent for TEGP while maintaining low leverage and healthy excess distribution coverage." "We believe Tallgrass is well positioned for another strong year in 2017 due to our stable cash flows, the recent acquisition of Tallgrass Terminals and the operator of REX as well as a potential dropdown of an interest in REX from Tallgrass Development."

The company has spent $581.70 million cash to meet investing activities during the year as against cash outgo of $845.27 million in the last year.

Cash flow from financing activities was $172.48 million for the year, down 69.02 percent or $384.24 million, when compared with the last year.

Cash and cash equivalents stood at $1.87 million as on Dec. 31, 2016, up 16.26 percent or $0.26 million from $1.61 million on Dec. 31, 2015.

Working capital remains negative
Working capital of Tallgrass Energy Partners, LP was negative $38.28 million on Dec. 31, 2016 compared with negative $11.71 million on Dec. 31, 2015. Current ratio was at 0.71 as on Dec. 31, 2016, down from 0.87 on Dec. 31, 2015.