Post on 15-Jan-2022
Presentation TitlePresentation Subtitle
Crestwood Midstream Partners LP Crestwood Equity Partners LP
Connections for America’s Energy™
™
Presentation TitlePresentation Subtitle
Crestwood Midstream Partners LP Crestwood Equity Partners LP
Connections for America’s Energy™
™
Presentation TitlePresentation Subtitle
Crestwood Midstream Partners LP Crestwood Equity Partners LP
Connections for America’s Energy™
™
6/6/2014
Presentation TitlePresentation Subtitle
Crestwood Midstream Partners LP Crestwood Equity Partners LP
Connections for America’s Energy™
™
Presentation TitlePresentation Subtitle
Crestwood Midstream Partners LP Crestwood Equity Partners LP
Connections for America’s Energy™
™
Crestwood Midstream Partners LP Crestwood Equity Partners LP
Connections for America’s Energy™
™
Credit Suisse’s 2nd AnnualMLP & Energy Logistics Conference
June 10-11, 2014
Connections for America’s Energy™ ™™ ™™ ™2
The statements in this communication regarding future events, occurrences, circumstances, activities, performance, outcomes and results are forward-looking statements. Although these statements reflect the current views, assumptions and expectations of Crestwood Midstream and Crestwood Equity management, the matters addressed herein are subject to numerous risks and uncertainties which could cause actual activities, performance, outcomes and results to differ materially from those indicated. Such forward-looking statements include, but are not limited to, statements about the future financial and operating results, objectives, expectations and intentions and other statements that are not historical facts. Factors that could result in suchdifferences or otherwise materially affect Crestwood Midstream’s or Crestwood Equity’s financial condition, results of operations and cash flows include, without limitation; the possibility that expected synergies will not be realized, or will not be realized within the expected timeframe; fluctuations in oil, natural gas and NGL prices; the extent and success of drilling efforts, as well as the extent and quality of natural gas volumes produced within proximity of Crestwood Midstream or Crestwood Equity assets; failure or delays by customers in achieving expected production in their natural gas projects; competitive conditions in the industry and their impact on the ability of Crestwood Midstream or Crestwood Equity to connect natural gas supplies to Crestwood Midstreamor Crestwood Equity gathering and processing assets or systems; actions or inactions taken or non-performance by third parties, including suppliers, contractors, operators, processors, transporters and customers; the ability of Crestwood Midstream or Crestwood Equity to consummate acquisitions, successfully integrate the acquired businesses, realize any cost savings and other synergies from any acquisition; changes in the availability and cost of capital; operating hazards, natural disasters, weather-related delays, casualty losses and other matters beyond Crestwood Midstream or Crestwood Equity’s control; timely receipt of necessary government approvals and permits, the ability of Crestwood Midstream or Crestwood Equity to control the costs of construction, including costs of materials, labor and right-of-way and other factors that may impact either company’s ability to complete projects within budget and on schedule; the effects of existing and future laws and governmental regulations, including environmental and climate change requirements; the effects of existing and future litigation; and risks related to thesubstantial indebtedness of either company, as well as other factors disclosed in Crestwood Midstream and Crestwood Equity’s filings with the U.S. Securities and Exchange Commission. You should read filings made by Crestwood Midstream and Crestwood Equity with the U.S. Securities and Exchange Commission, including Annual Reports on Form 10-K for the year ended December 31, 2013, and the most recent Quarterly Reports and Current Reports, for a more extensive list of factors thatcould affect results.
Forward Looking Statements
2
Connections for America’s Energy™ ™™ ™™ ™
Crestwood Corporate Structure
3
Two publicly traded MLPs provides strategic flexibility to enhance value • Crestwood/Inergy merger creates a
substantial long term growth platform
– ~$9.0 BB enterprise value
– Handling 2+ Bcf/d of natural gas and ~500,000 Bbls/d of NGLs
– >1 million acres of premier shale play acreage under dedication
– Capabilities to compete for large scale infrastructure projects across the entire midstream value chain
– Significant sponsor and management ownership aligned with public ownership
– Strategic optionality
Drop-down current CEQP assets preserving pure-play GP strategy
Form joint ventures for large projects
Utilize CEQP to facilitate strategic combination
Crestwood Equity Partners LP(NYSE: CEQP)
186.5 million units outstanding
First Reserve/Crestwood Holdings
~11% LP Interest
Crestwood Midstream Partners LP
(NYSE: CMLP)188.0 million units outstanding
Operating Subsidiaries
~4% LP InterestGP / IDR Ownership
CEQP Public Unitholders~71% Interest
CMLP Public Unitholders~85% Interest
~29% LP Interest100% Non-economic GP Interest (Control)
Connections for America’s Energy™ ™™ ™™ ™
• Expanding platform in premier shale plays across North America– Focused in crude oil and liquids-rich plays that provide superior producer
economics (Marcellus/Utica, Bakken, Niobrara, Permian)
• Providing multiple services across the value chain – Building virtual pipeline network through integrated gathering, processing,
storage and delivery systems
• Visible, long term growth platform validates merger thesis– $880 MM in 2013 acquisitions adds Bakken and Niobrara exposure– $1.2 BB in organic capital backlog through 2018– $6.0 BB of potential capital projects under evaluation in current operating
regions
• Enhancing customer reliability and optionality– Flow assurance and market connectivity and optionality
• Commitment to best-in-class operations and customer service– Completing projects on time, on budget– Operational safety is our top priority!
• Long-term goal to reach investment grade while delivering superior returns to unitholders– Project execution drives 2014 and 2015 EBITDA and DCF growth– Increase financial flexibility by improving coverage ratio, leverage ratio and
liquidity
Strategic Focus on Long Term Growth
4
Organic Development and Strategic
M&A Drive Growth
ConservativeFinancial
Management
Targeting Premier Shale Plays across Value Chain
Diverse midstream platform with substantial long term growth potential
First-classCustomer
Service and Operational Excellence
Connections for America’s Energy™ ™™ ™™ ™5
US Midstream Portfolio in All the Right Places
5
Assets and operations divided into 4 operating regions to gain scale, reduce costs and generate commercial synergies
Northeast Region
Rockies Region
Western Region
Central Region
Connections for America’s Energy™ ™™ ™™ ™
Diverse Business Mix – Low Commodity Exposure
…With Stable Contract Profiles
6
Crude Oil & NGL Gross Margin
69%
Dry GasMargin31%
6
Short-term Contracts
13%
Fixed-Fee49%
Firm Contracts
38%
2014E Gross Margin 2014E Gross Margin
Attractive Growth Areas…
2014E EBITDA 2014E EBITDA
Rockies25%
Central20%
West4%
Northeast51%
• Northeast and Rockies primary growth regions
• Significant business diversification provides cash flow stability
– 10+ different key assets with ~$20 MM of EBITDA
– No single line of business constituting more than ~15% of total cash flows
• Portfolio growth levered to Crude and NGL focused services
– Material upside leverage to improving dry gas prices
• Significant contract stability
– Minimal direct commodity price exposure
BarnettRich
Inergy Services
COLTHub
BarnettDry
MARC I Arrow
Gathering & Processing
38%
Storage & Transportation
23%
NGL & Crude
Services39%
Connections for America’s Energy™ ™™ ™™ ™
$2.05 $2.11 $2.33 $2.60
$3.65 $3.75 $3.76 $3.80 $3.84 $3.89 $3.94 $4.15 $4.24 $4.54
$4.76 $4.77 $5.10 $5.12 $5.24 $5.35 $5.37
$5.67 $5.70 $5.72 $5.93 $6.00
$7.16 $7.43
–
$1.00
$2.00$3.00
$4.00
$5.00
$6.00$7.00
$8.00
Existing assets and future growth opportunities in shale plays where producer wellhead economics are strongest
2014 Calendar Strip Price: $4.60/MMBtu(1)
2014 Calendar Strip Price: $100/Bbl(1)
Source: Tudor Pickering Research. Breakeven Prices to earn 10% Single Well IRR.(1) Calendar 2014 NYMEX prices as of 6/2/2014
Basins where Crestwood has existing assets or targeted development projects.
7
Supply Driven Growth – Liquids Focused
7
Connections for America’s Energy™ ™™ ™™ ™
Northeast Region – Marcellus / Utica
88
• >20 Bcf/d and >1 MMBbl/d NGLs out of Marcellus / Utica by 2020 timeframe
• Distribution constraints for natural gas and NGLs require new infrastructure and export capability
• Significant SW Marcellus/Utica supply searching for outlets to Midwest and Gulf Coast markets
• 2014 projected capital spending of ~$200 MM
Regional Commentary (1)
Core growth opportunity in the most prolific natural gas play in history
Gathering & Compression Storage & Transportation Supply and Logistics
Substantial system build-out since 2012
875 MMcf/d capacity by year-end 2014
>1.0 Bcf/d over next 5 years
Key customers: Antero Resources and Mountaineer Keystone
Strong producer economics
Critical Northeast US storage and transportation facilities
41 Bcf fully contracted capacity
>1.4 Bcf/d bi-directional transportation capacity connected to critical Marcellus supply points
Attractive customer mix of gas and electric utilities, producers and marketers
Supportive long-term fundamentals
Leading purchaser of Marcellus / Utica NGLs
2.2 MMBbls LPG storage, 462 LPG trucking units, 1,300 LPG rail cars, and >7,000 Bpd terminals
Accessing international markets through East Coast waterborne exports
Key customers: Williams, Total, PBF and Marathon
(1) Based on industry forecast data.
Connections for America’s Energy™ ™™ ™™ ™
• Antero Resources/Crestwood Agreements
– 20-year, 100% fixed-fee contract with annual escalators
– ~140,000 acres area of dedication
– 7 year East AOD minimum volume commitment
– Approximately 1,500 drilling locations in East AOD
• Antero Resources Update
– 15 drilling rigs operating in WV; >$2.1 BB 2014 capital budget in WV Marcellus
– Signed contracts for 1.2 Bcf/d processing and 1.3 Bcf/d pipeline takeaway capacity to support WV drilling program
• Build-out of gathering and compression assets provides capacity to meet expected volume growth
– Exit 2013 at 460 MMcf/d (+25% YTD); current spot volumes at ~625 MMcf/d
– Exit 2014 at ~750 MMcf/d (+50% YTD) (1)
9
Providing extensive gathering and compression services for the most active producer in the rich-gas Southwest Core of the Marcellus
NE Region – Southwest Marcellus Gathering
9
Source: Crestwood internal estimates and Antero Resources June 2014 Update.
(1) Based on Crestwood’s internal estimate.
Connections for America’s Energy™ ™™ ™™ ™
300
400
500
600
700
800
900
1,000
Oct
-13
Nov
-13
Dec
-13
Jan-
14
Feb-
14
Mar
-14
Apr
-14
May
-14
Jun-
14
Jul-
14
Aug
-14
Sep
-14
Oct
-14
Nov
-14
Dec
-14
MMcf/d
CMLP EAOD Compression Actual Volume
Budget
Stark Ph I
Banner Ph IBanner Ph II
NE Region – Southwest Marcellus Q1 2014 Update
10
• EAOD system build-out kept up with Antero production during Q1 2014
• EAOD system capacity now at 700 MMcf/d with addition of Morgan Ph II & Perkins Ph II in Q1 2014– Current MTD May volumes averaging 620
MMcf/d– 28 DUCs still waiting on completions
• Expect 2014 average volumes of 625 to 650+ MMcf/d – 75 well completions/connections projected in
2014 (25 wells on-line thru May 1st)• EAOD system build-out poised to stay ahead of
Antero; 875 MMcf/d by start of Q4 2014– Provides incremental completion opportunities
and further volume growth in 2014/2015
90% 80%
EAOD System UpdateEAOD System Volume & Utilization Forecast
Western Area Update
• CMLP compression growing to 240 MMcf/d in Q2 2014– Victoria Ph I station completed in April; Ph II
on track for June 2014• Antero moving forward with MLP IPO including
assets in Western Area
Connections for America’s Energy™ ™™ ™™ ™
NE Region – Marcellus Storage & Transportation
11
(1) Stagecoach and Thomas Corners are 100% contracted based on operational capacity.
Storage Contract Profile
Transportation Contract Profile
• 41 Bcf high performance, multi-cycle storage
– Critical supply points for premium NE markets
– Fully contracted primarily with NE utilities including ConEd, PSEG and NJ Natural Gas
• >1.4 Bcf/d bi-directional flow across North/South and MARC I
– FERC regulated transportation assets providing firm wheeling services
– Primary shippers include Anadarko, Chesapeake, Cabot, Southwestern and Statoil
– Optimal market pricing points for prolific NE Marcellus dry gas
FacilityCommodity
Stored
Percentage Contractually
Committed
Weighted Avg.
Maturity (Year)
Stagecoach (1) Natural Gas 26.2 Bcf 100% 2016Thomas Corners (1) Natural Gas 7.0 Bcf 100% 2015Seneca Lake Natural Gas 1.5 Bcf 100% 2017Steuben Natural Gas 6.3 Bcf 100% 2017
Working Storage Capacity
Transporation AssetCommodity Transported
Percentage Contractually
Committed
Weighted Avg.
Maturity (Year)
North/South Facilities Natural Gas 365.0 MMcf/d 100% 2017MARC I Pipeline Natural Gas 590.0 MMcf/d 100% 2021East Pipeline Natural Gas 30.0 MMcf/d 100% 2021
Transportation Capacity
Connections for America’s Energy™ ™™ ™™ ™12
NE Region – Storage & Transport Q1 2014 Update
12
• Record demand from severe winter weather during Q4 2013 and Q1 2014
Q1 2014 hub services revenues; $2.5MM over expectation
• Increasing value for firm wheeling services
Average basis differential between TGP and Millennium of ~$1.40/Dth
Crestwood starting to capture more of basis differential
Storage and Transportation portfolio 100% contracted through March 2015
• Contracted additional 40 MMcf/d of firm transportation on North/South and MARC I; $4.4MM incremental 2014 revenue
• ~150 MMcf/d expansion of North/South to Millennium Pipeline through installation of incremental compression; ~$11 MM capital cost; in-service Q1 2015
Held non-binding open season in Q1 2014; bids totaling 287 MMcf/d
Executed long-term precedent agreements totaling 92 MMcf/d thus far; ~$5 MM EBITDA contribution
Total project expected to generate $10 MM EBITDA annually beginning 2015
• Further compression and future looping projects at attractive returns
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
$5.00
$5.50
1/1/2014 1/21/2014 2/10/2014 3/2/2014 3/22/2014
TGP Marcellus/MPL East Pool -- Daily Basis…
Q1 2014 Performance
Growth Projects
Connections for America’s Energy™ ™™ ™™ ™
Rockies Region: Bakken / PRB Niobrara
1313
• Bakken Shale the premier crude oil shale play in North America
– ~1.5 MMBbls/d by 2020
– 194 active rigs running in the Bakken
– 70% all crude Bbls currently exit basin via rail
• PRB Niobrara emerging crude oil play
– Stacked pay zones provides attractive inventory of highly economic development locations
Regional Commentary (1)
Gathering & Processing Storage & Terminalling Crude Logistics Bakken Arrow gathering systems
125 MBbl/d crude oil, 100 MMcf/d natural gas, 40 MBbl/d water
Key customers: WPX, Kodiak, Halcon, XTO, QEP, Enerplus and Marathon
• PRB Niobrara gas gathering and processing system >150 MMcf/d in 2015 Key Customers: Chesapeake
and RKI Exploration
• Bakken: 1.1 MMbbl crude oil storage capacity at COLT Hub; 120 MBbl storage at Dry Fork Terminal; 200 MBbl tank capacity at Arrow CDP
• 160 MBbl/d crude by rail terminal facility at COLT Hub
• Niobrara: early stage 10-15 Mbbl/d rail terminal and 100 Mbblstorage at Douglas Terminal in Converse County, WY
COLT Connector pipeline links COLT Hub and Dry Fork Terminal
Acquired >20 MBbl/d local crude oil trucking business in 1Q 2014
Commenced crude supply and logistics trading in Q2 2014 to optimize Rockies Region assets
2 unit trains (220 rail cars) on order, to be received Q1 2015
Value chain strategy at work in Bakken and PRB Niobrara
(1) Based on industry forecast data.
Connections for America’s Energy™ ™™ ™™ ™14
• 160 MBbl/d rail facility in Williams County, ND; connected to BNSF rail system
• Anchored by multi-year take-or-pay contracts with refiners on West Coast and East Coast– Tesoro, Sunoco, Flint Hills, BP, Statoil
• Connected to Arrow gathering system through Tesoro and Hiland pipelines
• Q1 2014 volumes: – 98 MBbl/d rail loading – 64 Mbbl/d pipeline receipts– 30 MMbl/d truck receipts– 21 Mbbl/d COLT Connector pipeline
Dry Fork Terminal Overview
• Located at the Beaver Lodge/Ramberg pipeline hub with connection to Tesoro and Enbridge pipelines
• 21-mile, 10” bi-directional pipeline (COLT Connector) connects COLT to Dry Fork Terminal
• 120 MBbl crude oil storage capacity
COLT Hub Overview
Rockies Region – COLT Hub
14
Combined w/ Arrow gathering the COLT and Dry Fork terminals provide an integrated Bakken operating footprint
COLTConnector
Dry Fork Terminal
COLTTerminal
Tesoro CorporationBelle Fourche Pipeline Co.Enbridge Pipelines North Dakota Inc.
Crude PipelinesBNSF Railroad
Enbridge Pipeline
BNSF Mainline Beaver
Lodge
ArrowSystem
Tesoro Pipeline
Connections for America’s Energy™ ™™ ™™ ™
• ~150,000 acreage dedication in Dunn and McKenzie Counties, ND on Fort Berthold Reservation
• Crude pipeline interconnects with Tesoro, Hiland and Bakken Link
• Natural gas pipeline and processing connect with OneOk
• Long term gathering contracts with WPX, Kodiak, Halcon, XTO, QEP, Enerplusand Marathon
• 11 rigs operating in area during Q1 2014
• Expansion of gathering system to be complete by 2015– 125 MBbl/d crude oil capacity– 100 MMcf/d natural gas capacity – 40 MBbl/d of produced water
capacity • Increased down-spacing to 12 wells per
DSU; increases potential wells 30% to 1,344
15
Supply aggregation begins with Arrow MidstreamAsset Overview Asset Map
Rockies Region – Arrow Midstream
15
Connections for America’s Energy™ ™™ ™™ ™
–
50
100
150
200MBbl/d
Contracted Capacity Actual Loading Volumes Budget
• Severe winter weather and downstream pipeline disruptions severely impacted Q1 2014 gathering volumes
• Q2 2014 volumes expected to increase 20-25%; 38 wells expected to be connected
• Well performance across the Arrow system above expectations
• COLT rail loading contracted to 149 MBbl/d beginning Q2 2014 – May MTD volumes of 120 MBbl/d– Single day loading 153 MBbl/d in Q2
2014
• Adding release and departure track at COLT Hub to increase customer flexibility; to be completed in Q3 2014
• Started crude oil marketing team in Denver to optimize assets
16
Supply aggregation begins with Arrow Midstream
Arrow Gathering / COLT Hub Update
Rockies Region – Bakken Shale Q1 2014 Update
16
10
20
30
40
50
60
70
10
20
30
40
50
60
70MMcf/dMBbl/d
Crude - Budget Crude - Actuals Water - Budget
Water - Actuals Gas - Budget Gas - Actuals
Arrow Volumes
COLT Rail Loading
Connections for America’s Energy™ ™™ ™™ ™
Expanding gathering and processing system in the Powder River Basin (PRB) to serve increasing production
• 50/50 JV with Access Midstream
• 20-year cost-of-service agreement with Chesapeake, RKI Exploration and Production and China National Offshore Oil Corporation
• 311,000 acre dedication
• Current volumes ~ 55 MMcf/d
• 37 wells drilled, waiting on additional capacity to be completed and connected
• Completion of 120 MMcf/d Bucking Horse processing plant in Q4 2014 will alleviate capacity constraints
Rockies Region – PRB Niobrara Development
1717
Jackalope Gas Gathering
Douglas Rail Terminal• 50/50 JV with Enserco Midstream
• Newly constructed crude oil rail terminal facility in Douglas, WY
• Anchored by 10 MBbl/d 5-yr contract w/ Chesapeake; AMI overlaps with Jackalope dedication area
• 10-15 MBbl/d unit train service in Q2 2014
Connections for America’s Energy™ ™™ ™™ ™
Central Region – Barnett, Permian, Fayetteville, Granite Wash / Haynesville & Gulf Coast Storage
1818
• Current gas price and forward strip support development in core dry gas operating areas
• Emerging Delaware Permian Basin with producer activity focused on Wolfcamp, Bone Spring development in SE New Mexico and West Texas
• Increasing Eagle Ford production, emerging LNG exports, & US exports to Mexico provide potential opportunities for S Tx storage
Regional Commentary
Barnett Fayetteville Permian Delaware
Granite Wash / Haynesville
Tres Palacios (1)
Gathering and processing in Barnett core acreage
Primary customers: Quicksilver Resources and Devon Energy
100% fee-based contracts through 2024
Blue-chip producers including BHP, BP and XTO
30 MMcf/d processing plant in service Q3 2014
Phase III expansion with available 120 MMcf/d plant (Delaware Ranch)
36 MMcf/d gathering and processing capacity in the Granite Wash
Small Haynesville gathering and treating assets
38.4 Bcf of working gas capacity
Southern most high-deliverability gas storage facility in Texas
Connected to 10 pipeline systems serving multiple U.S. demand markets
Emerging growth from Permian
(1) Wholly-owned subsidiary of CEQP
Connections for America’s Energy™ ™™ ™™ ™19
Central Region – Barnett Shale Q1 2014 Update
19
Turning the Corner in the Barnett Shale
• Recent Quicksilver (KWK) / Tokyo Gas well completions show improved performance in Barnett dry area
– 4 recent Texas Motor Speedway wells 30-day IP rate ~ 60% higher than average type curve
– Village Creek well with 25% higher 90-day IP rate
– KWK development plans currently include ~34 new well completions in 2014 vs Crestwood budget of ~25 wells
• Cost effective KWK well work-over program reduced Barnett declines in 2013
– KWK completed ~150 workovers in 2013
• Negotiating incentive fee structure to drive further rich-gas development at Cowtown
250300350400450500
MMcf/d
Budget Actuals
Connections for America’s Energy™ ™™ ™™ ™
Central Region – Delaware Permian Development
• Phase I – Converted existing Las Animas system from dry gas to rich gas
– Installed 10 MMcf/d refrigerated JT skid Q3 2013
• Phase II - Constructing Willow Lake Gathering & Processing
– 20 MMcf/d cryogenic plant in-service Q3 2014
– 10-year, fixed-fee gathering and processing agreement with Legend Production Holdings; 107,000 acre AMI
– Recently connected Wolfcamp well exceeded industry average type curve by 3x
• Phase III - Delaware Ranch Gas Project
– Developing large scale centralized 120 MMcf/d+ processing facility and pipeline system
– Target production from Eddy, Lea, Culberson, Reeves, and Loving counties
– In-service date YE 2015 / early 2016
• Phase IV - Other Projects in the Works
– Crude trucking, pipeline gathering & transportation
– Water gathering & disposal
TX
NM
20
Connections for America’s Energy™ ™™ ™™ ™
Central Region – Tres Palacios Update
21
Mexico Plans 42 Gas-Fired Power Projects
> 4.0 Bcf/d of Nearby LNG Export Facilities
Corpus Christi
• Significant cost-cutting initiatives underway
• Joint venture discussions coupled with long-term storage commitments with multiple interested parties
• LNG exportation and Mexico power demand drives storage value and expansion opportunities
― Pipeline to Freeport & Corpus Christi LNG Export facilities
― Pipeline to S. Texas Agua Dulce Hub & Border crossing
• Pursuing NGL storage conversion opportunities & connectivity w/ liquids pipelines
• Pursuing additional direct supply connections with Eagle Ford processing facilities
Long Term “Re-positioning for the Future”
Note: Tres Palacios is a wholly-owned subsidiary of CEQP
Connections for America’s Energy™ ™™ ™™ ™
NGL Supply, Logistics, Transportation & Salt
22
• Leading purchaser of Marcellus / Utica liquids
• One of the largest LPG truck fleets in the US
• Winter 2013 / 2014 volumes averaged approximately 350,000 Bbl/d
Strong propane and butane margins due to record winter demand
• Strong Bath storage utilization / positive momentum for Watkins Glen approval
• West Coast business positioned for future growth as Monterrey Shale develops
• ~$100MM current EBITDA contribution
22
CEQP growing business segment instrumental in executing Crestwood’s “wellhead-to-burner tip“ operating model
Connections for America’s Energy™ ™™ ™™ ™
Q1 2014 Review – Segment EBITDA
2323
Sequential EBITDA growth across operating segments
• Marcellus volume growth
• Bucking Horse plant in service in PRB Niobrara
• Barnett upside from increasing KWK activity
• Continued record demand for NE Storage & Transportation assets
• Successful open seasons for incremental capacity expansions lock-in 2014 and 2015 upside potential
• Q1 2014 Arrow volume growth impacted by severe weather
• Long-term volume outlook exceeds original expectations
• COLT R&D tracks in-service Q4 2014
Key Drivers for 2014 Outlook
(1) Excludes $2.1MM and $31.4 MM non-cash accrual for the Antero earn-out in Q1 2014 and Q4 2013, respectively.(2) Excludes $10.7MM and $0.6 MM non-cash gains in fair value on derivative contracts in Q1 2014 and Q4 2013, respectively.
($ in millions) 4th Quarter 1st QuarterCEQP Total Segment EBITDA 2013 2014 % Change
Gathering and Processing (1) 47.5$ 48.2$ 1.5%
Storage and Transportation 36.7$ 38.0$ 3.5%
NGL and Crude Services (2) 38.7$ 45.0$ 16.3%
Total 122.9$ 131.2$ 6.8%
Connections for America’s Energy™ ™™ ™™ ™
Q1 2014 Review – Balance Sheet Profile
2424
Improving coverage, leverage and liquidity critical strategic focus in 2014
• Natural deleveraging through project execution driving EBITDA growth in Q2 to Q4 2014
• EBITDA growth augmented with disciplined utilization of at-the-market equity issuance
• Assessing alternative equity sources for sizable expansion projects
• Targeting year end 2014 leverage metrics of <4.5x
• Balanced approach to distribution growth and coverage
• Targeting 2014 coverage of >1.0x
Key Drivers for 2014 Outlook
(1) Total CMLP Revolver capacity is $1.0 BB. Total CEQP Revolver capacity is $550 MM.
($ in millions) 4th Quarter 1st Quarter2013 2014
CMLP Balance Sheet Profile
Revolver Balance (1) 414.9$ 532.1$
Total Debt 1,870.8$ 1,989.5$
Leverage Ratio 4.90x 5.06x
CEQP Balance Sheet Profile
Revolver Balance (1) 381.0$ 387.6$
Total Debt 395.2$ 402.6$
Leverage Ratio 4.22x 4.23x
Connections for America’s Energy™ ™™ ™™ ™
Arrow Midstream crude oil, natural gas and produced water gathering
COLT Hub Expansion I
Marcellus Shale gathering & compression development for Antero
Niobrara Shale gathering and processing development for Chesapeake and RKI Exploration
Permian Basin gathering and processing at Willow Lake
Watkins Glen NGL Storage
COLT Hub Expansion II
NE Marcellus transportation expansion
Third Party M&A
Bakken Shale expansion opportunities
Permian Basin organic development opportunities
Rail Terminal Expansion opportunities (Canada, Douglas expansion, Bakersfield)
Niobrara Shale crude oil expansion opportunities
NGL / crude oil marketing and trucking expansions / bolt-on acquisitions
Tres Palacios expansion oportunities (Agua Dulce Header, Freeport LNG Lateral, Olefin Storage, NGL Pipeline)
Commonwealth pipeline
Marcellus Shale (SW Rich Core) / Utica expansion opportunities
Drop-Down of CEQP operational assets
2014 2015 2016 2017+
25
Long-Term Growth Drivers
25
~$1.2 BB backlog of identified opportunities currently under stages of development
~$6.0 BB of identified incremental expansion opportunities currently under evaluation / negotiation
Premier Shale footprint provides attractive backlog of organic projects; successful execution at 5.0x to 7.0x all-in build multiples drives substantial future growth
Connections for America’s Energy™ ™™ ™™ ™
Attractive 5-Yr Investment Profile
26
• >15% 5-yr EBITDA CAGR
Imbedded organic growth from $1.2 BB projects
• Long-term coverage ratio of >1.1x
• 6 to 10% long-term distribution growth
• Long-term leverage ratio of 3.5x to 4.0x
Balanced mix of debt and equity
Disciplined ATM utilization
Alternative equity sources for large-scale development projects
Drivers for Long-term OutlookTotal Segment EBITDA
Leverage Ratio
Connections for America’s Energy™ ™™ ™™ ™
• Footprint covers premier US natural gas, liquids-rich and crude oil shale plays
– Growth underpinned by Marcellus/Utica, Bakken, PRB Niobrara and Permian Basin
– Material upside leverage to natural gas price improvements
• Merger integration complete, optimization strategy underway
Expanding capital investment opportunity across value chain
Expands margins to drive increased returns on capital
• Stable cash flow from fixed-fee and take-or-pay contracts
• Dual CMLP and CEQP public currency provides optionality for transformational growth
• Improving financial flexibility to execute growth objectives
27
Key Investor Highlights
Financial stability with visible growth through execution of value chain strategy
27
Connections for America’s Energy™ ™™ ™™ ™
Crestwood Equity Partners LP Non-GAAP Reconciliations
29
March 31, December 31,2014 2013
Gathering and ProcessingOperating revenues 79.5$ 76.6$ Costs of product/services sold 18.7 16.2 Operating and administrative expense 13.4 14.4 Gain on long-lived assets 0.5 1.0 Earnings (loss) from unconsolidated affiliate 0.3 0.5 Gain (loss) on contingent consideration (2.1) (31.4) EBITDA 46.1$ 16.1$
NGL and Crude ServicesOperating revenues 841.1$ 682.5$ Costs of product/services sold 760.5 622.6 Operating and administrative expense 24.5 20.3 Loss on long-lived assets - (0.1) Loss from unconsolidated affiliate (0.4) (0.2) EBITDA 55.7$ 39.3$
Storage and TransportationOperating revenues 51.0$ 49.1$ Costs of product/services sold 6.8 8.0 Operating and administrative expense 6.2 4.4 EBITDA 38.0$ 36.7$
Total Segment EBITDA 139.8$ 92.1$ Corporate (27.8) (40.6) EBITDA 112.0$ 51.5$
Segment Data(in millions)
CRESTWOOD EQUITY PARTNERS LP (FORMERLY INERGY, L.P.)
Three Months Ended (unaudited)
Connections for America’s Energy™ ™™ ™™ ™
Crestwood Equity Partners LP Non-GAAP Reconciliations
30
March 31, December 31,2014 2013
EBITDANet income (loss) 13.2$ (42.1)$ Interest and debt expense, net 31.7 31.7 Provision (benefit) for income taxes 0.8 (0.2) Depreciation, amortization and accretion 66.3 62.1
EBITDA 112.0$ 51.5$ Non-cash equity compensation expense 5.4 9.8 (Gain) loss on contingent consideration 2.1 31.4 Gain on long-lived assets (0.5) (0.9) (Earnings) loss from unconsolidated affiliates, net 0.1 (0.3) Adjusted EBITDA from unconsolidated affiliates 1.7 1.9 Change in fair value of derivative instruments (10.7) (0.6) Significant transaction related costs and other items 6.5 17.8 Adjusted EBITDA (1) 116.6$ 110.6$
(1) EBITDA is defined as income before income taxes, plus net interest and debt expense, and depreciation, amortization and accretion expense. In addition, Adjusted EBITDA considers the adjusted earnings impact of our unconsolidated affiliates by adjusting our equity earnings or losses from our unconsolidated affiliates for our proportionate share of their depreciation and interest, the impact of certain significant items, such as non-cash equity compensation expenses, gains and impairments of long-lived assets and goodwill, third party costs incurred related to potential and completed acquisitions, loss on contingent consideration, and other transactions identified in a specific reporting period. EBITDA and Adjusted EBITDA are not measures calculated in accordance with accounting principles generally accepted in the United States of America (GAAP), as they do not include deductions for items such as depreciation, amortization and accretion, interest and income taxes, which are necessary to maintain our business. EBITDA and Adjusted EBITDA should not be considered an alternative to net income, operating cash flow or any other measure of financial performance presented in accordance with GAAP. EBITDA and Adjusted EBITDA calculations may vary among entities, so our computation may not be comparable to measures used by other companies.
CRESTWOOD EQUITY PARTNERS LP (FORMERLY INERGY, L.P.)
Reconciliation of Non-GAAP Financial Measures(in millions)
Three Months Ended (unaudited)