PONY's 30-Day Pipeline Deal Rush Kicks Off – Here's Why Investors Should Watch Before April 6

Will the new incentive tariff rates reshape the future of crude oil transport and elevate PONY's market position?

Welcome to this edition of our investor insights newsletter! As we dive into the latest developments surrounding PONY's groundbreaking open season announcement, we're reminded of the dynamic nature of the energy sector and the exciting opportunities it presents. Have you considered how the unfolding events around this new pipeline initiative could impact your investment strategy?

🛢️ Pipeline Power Move

Hey investors! Big news on the horizon.

• PONY's latest announcement: A new binding open season for incentive tariff rates just kicked off with a 30-day countdown (March 7–April 6, 2025)!

• Why this matters for PONY stockholders: The initiative taps into expanded crude oil transportation opportunities from Colorado origins, leveraging existing Pony Express Pipeline capacity. This could drive revenue growth and strengthen market positioning.

• Risk factor alert: Forward-looking statements in the announcement highlight uncertainties that might impact PONY’s market standing, including shifts in demand, regulatory changes, or operational hurdles.

• Dive deeper: Prospective shippers must execute a confidentiality agreement (contact Matt.Hester@Tallgrass.com) to participate—signaling strategic partnerships ahead.

Stay sharp—this could sway short-term volatility and long-term valuation!

📈 Investor Insights

Here’s how savvy investors should play this:

• PROSPECTIVE_SHIPPER_REQUIREMENTS for TARIFF_PROGRAM_ENTRY: Prospective shippers must execute a confidentiality agreement to access details of the incentive tariff program. Increased shipper participation could signal stronger revenue pipelines for PONY.

• MARKET_ANALYSIS_PREDICTION: Anticipate short-term volatility as traders price in potential demand shifts from Colorado crude oil flows. Long-term, successful commitments here may boost PONY’s valuation as capacity utilization rises.

• TIMELINE_LIMITS: The April 6 deadline creates urgency—watch for volume spikes in PONY shares as shippers lock in rates. Post-deadline, evaluate whether new contracts align with forward-looking statements cited in the announcement.

• TRACK_NEWS_UPDATES: Monitor regulatory filings and operational updates for the Pony Express Pipeline. Any delays or expansions could directly impact PONY’s stock trajectory.

Stay nimble—strategic positioning now could pay dividends as this 30-day window unfolds.

🔍 Worth Noting

Why could this open season for Colorado crude capacity be a game-changer?

The Pony Express Pipeline’s focus on Colorado origins taps into a key production hub where crude output is projected to grow 8% annually through 2027 (EIA). By locking in shipper commitments now, PONY could secure long-term revenue streams while competitors scramble to expand infrastructure.

Align your energy sector allocations with this potential pivot:

• Colorado’s crude production hit a record 450k bpd in 2024 – could PONY become the default midstream partner for regional drillers?
• Incentive tariffs may attract volume commitments that exceed current pipeline utilization rates (currently ~85%), directly boosting EBITDA margins.

Engage your network:

• Are other midstream players like KMI or EPD making similar plays? Compare tariff structures and shipper retention rates.
• Poll contacts in Denver-Julesburg Basin operations: Is there unmet demand for pipeline capacity that PONY’s program could resolve?

Decision catalyst:
The April 6 deadline creates a clear timeline to assess whether shipper participation meets/exceeds expectations – a key factor for PONY’s 2025 revenue guidance. Monitor FERC filings post-deadline for contract volume disclosures.

Bottom line: This open season isn’t just about rates—it’s a litmus test for PONY’s ability to monetize strategic geography. Does your portfolio have exposure to Colorado’s energy rise? 🔄

Original announcement reference | Track updates via Tallgrass Regulatory Portal