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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™
™
1/13/2014
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™
™
UBS Global EnergyMLP One-on-One Conference
January 13-15, 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 risks that the Crestwood Midstream and Crestwood Equity businesses will not be integrated successfully or may take longer than anticipated; 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 Midstream or Crestwood Equity gathering and processing assets or systems; actions or inactions taken ornon-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; operatinghazards, 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 the substantial indebtedness of either company, as well as other factors disclosed in CrestwoodMidstream 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, 2012 and September 30, 2012, respectively, and the most recent Quarterly Reports and Current Reports, for a more extensive list of factors that could affect results. Crestwood Midstream and Crestwood Equity donot assume any obligation to update these forward-looking statements.
Forward Looking Statements
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Crestwood Corporate Structure
3
Crestwood Equity Partners LP(NYSE: CEQP)
185.4 million units outstanding
Gathering and Processing− Marcellus− Niobrara− Barnett− Fayetteville− Others
First Reserve/Crestwood Holdings
~29% LP Interest100% Non-economic GP Interest
(Control)
~11% LP Interest
Crestwood Midstream Partners LP
(NYSE: CMLP)187.3 million units outstanding
Legacy Inergy Assets- NGL Supply & Logistics
- GC Gas Storage
NE Storage and Transportation− Stagecoach− Marc I− North / South− Thomas Corners− Others
NGL and Crude Oil Services− Bakken Arrow Midstream− Bakken COLT Hub Facility− Niobrara Douglas Facility − NE NGL Storage − US Salt
~4% LP InterestGP / IDR Ownership
EBITDA Contribution: 43%1 EBITDA Contribution: 23%1 EBITDA Contribution: 34%1
1 Represents relative EBITDA contribution of 2014E projected CMLP EBITDA. See guidance materials issued on December 5, 2013 on www.crestwoodlp.com.
CEQP Public Unitholders~71% Interest
CMLP Public Unitholders~85% Interest
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• Merger creates premier mid-cap MLP– Combined enterprise value of ~$9.0 BB; ~$550 MM 2014E EBITDA – Currently servicing over 2 Bcf/d of natural gas and ~ 500,000 Bbls/d of NGLs and crude
oil – Dual public equities (CMLP and CEQP) provide investors multiple investment
opportunities across Crestwood structure and allow strategic flexibility for partnership– Substantially completed merger integration process
• ~$880 MM in recent acquisitions creates meaningful backlog of future growth from two of the most prolific crude oil plays in North America– Acquired Arrow Midstream Bakken Shale assets for $750 MM– Acquired 50% interest in Jackalope Gas Gathering System in PRB Niobrara Shale for
$108 MM; 50% interest in Douglas Crude Rail Facility for $22.5 MM
• ~$445 MM organic capital expenditures in 2013 drives meaningful 2014 growth
• Secured and identified $1.2 BB in organic capital backlog through 2018 predominantly around high-growth liquids-rich and crude oil plays– Antero Marcellus Gathering system accelerating development due to recent IPO– Integration of Bakken assets to provide additional growth potential– Renewed firm contracts for substantially all NE Storage and Transportation 2014
available capacity; expansion opportunities under development
• Raised $1.7 BB in total long-term equity and debt capital in 2013 to fund 2013 organic capital program, optimally finance acquisitions, and build material liquidity for future growth– Limited capital markets activity expected to fund 2014 capital program– Improving credit metrics in 2014 driven by substantial EBITDA growth
Transformational 2013 for Crestwood
4
Bolt-On & Strategic
M&A
Organic / Commercial Development
Crestwood / Inergy Merger
Significant transformation in 2013 creates exciting new beginning
Well Positioned
BalanceSheet
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Diversified US Midstream Portfolio
Existing platform in every premier shale play in North America creates significant opportunity for optimization, organic expansion, and strategic M&A
ASSET SUMMARY (1)
• Natural Gas– 1.3 Bcf/d natural gas transportation
capacity– 2.1+ Bcf/d gathering capacity– 1,260+ miles of pipeline– ~80 Bcf natural gas storage capacity (2)
• NGL and Crude Oil– Eight natural gas processing plants – 600+ MMcf/d processing capacity– 180,000 BPD crude oil rail terminal
facilities– 125,000 BPD crude oil gathering capacity– NGL and crude logistics business including
trucks, rail cars, terminals, fractionation, storage and marketing 4.6 MMBbls NGL storage 12,000 Bbl/d fractionation 8,000 Bbl/d isomerization 520 NGL truck/trailer units 1,071 rail car units 2 crude unit trains on order in 2015
(1) Includes announced expansion projects
(2) Total storage capacity is expected to be reduced to 58 Bcf following Tres Palacios application filed with the FERC on December 6, 2013.
• Gathering and Processing
Gas Storage and Transportation
• NGL and Crude Services
--- High Growth
--- Core Optimize
--- Core Stable
• Basin Areas
• Shale Regions
Headquarters
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• Segment and asset diversification provides greater cash flow stability
– 10+ different key assets with diverse fundamentals generating ~$20 MM of EBITDA
– No single customer, asset or business unit constituting more than ~15% of total cash flows
• Significant gross margin supported by long-term (take-or-pay and equivalent) contracts
– ~51% of 2013E gross margin guaranteed under firm take-or-pay type contract
– ~84% margin fixed-fee (no direct commodity price exposure)
– ~69% of total 2014E gross margin from operating assets providing rich gas, NGL or crude oil services
Attractive Business Mix and Cash Flow Profile
Margin Profile
6
2013E EBITDA Mix
Crude Oil & NGL Gross Margin
69%
Dry GasMargin31%
Gathering & Processing
40%
Storage & Transportation
28%
NGL & Crude
Services32%
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Stagecoach
BarnettRich
Marcellus
Inergy ServicesCOLT
Hub
BarnettDry
MARC I
Arrow
Fayetteville
OtherUS Salt
Un-Contracted
16%
Fixed-Fee33%
Firm Contracts
51%
2014E Gross Margin 2013E Gross Margin(1)
(1) 2013E gross margin percentages represent the combination of the estimated full year 2013 contributions from legacy Crestwood Midstream, legacy Inergy Midstream, and Arrow Midstream without pro forma adjustments required by GAAP.
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Identified and Contracted Expansion Projects Support 2014+ EBITDA and DCF growth
7
Project Timeline (1) Capex ($MM)
Commentary
Marcellus Gathering & Compression
2014 - 2018 ~$375• Pipeline and compression expansion for Antero Resources
in rich gas window of SW Marcellus Shale core
Arrow Midstream 2014 – 2018 ~$100• Continued build-out of Bakken crude oil, water, and
natural gas gathering system for WPX, QEP, Halcon, XTO and Kodiak
COLT Hub Expansion 2014 – 2016 ~$80• Ongoing 40,000 Bbl/d expansion completed in Q1 2014• Additional future expansion of COLT Hub facility
Jackalope 2014 – 2016 ~$240• Construction of expanding rich gas gathering system and
120 Mmcf/d processing plant for RKI and Chesapeake in PRB Niobrara
Watkins Glen 2015 ~$20• Completion of Watkins Glen NGL storage facility build-out
in western NY
NE Marcellus Transportation Expansion
2015 – 2016 ~$250• Additional takeaway capacity in NE Pennsylvania with
direct connectivity to North-South and MARC I pipelines to bring growing Marcellus dry gas supplies to market
Other (2) 2014 – 2018 ~$150• Ongoing growth capital opportunities around existing
asset platform
Attractive backlog of contracted and identified organic projects drive growth at 5.0x to 7.0x all-in build multiples
(1) Represents estimated timing of capital spend.(2) Primarily includes growth capital related to bringing on new wells around Crestwood’s base G&P platform over the next five years excluding the Marcellus and
PRB Niobrara
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2014 CMLP & CEQP Guidance Announced
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Statistic FY2013E FY2014E
Adjusted EBITDA ~$365 $465 - $510
Adjusted Distributable Cash Flow ~$270 $330 - $360
Growth Capital ~$445 $400 - $425
2014E Distribution Growth 6 – 10%
3-Yr Distribution Growth 6 – 10%
CMLP
CEQP
0%
20%
40%
60%
80%
100%
2014E EBITDA Mix
2014E EBITDA Mix
C&N
S&T
G&P0%
20%
40%
60%
80%
100%
Statistic FY2013E FY2014E
Adj. EBITDA ~$415 $520 - $570
Adjusted Distributable Cash Flow(1) ~$70 $85 - $95
2014E Distribution Growth 5 – 10%
3-Yr Distribution Growth >20%
Note: FY2013E represents the midpoint of the ranges.(1) Represents Adjusted DCF attributable to the operating assets of CEQP plus cash received by CEQP for the 7.1MM LP units and GP / IDR interest that CEQP
owns in CMLP.
$ MM
$ MM
Gathering & Processing
Storage & Transportation
NGL & Crude Services
Gathering & Processing
Storage & Transportation
NGL & Crude Services
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(1) Represents expected compound annual growth rate from the midpoint of 2013E EBITDA through year end 2016 estimated EBITDA. (2) Yield for CMLP based on 1/8/2014 closing price. Peer group data sourced from Citigroup research as of 1/3/2014. Diversified peers include KMP, EPD, ETP, PAA,
WPZ, OKS and EEP. T&S peers include SEP, EPB, BWP, TCP, EQM, TEP and MEP. G&P peers include ACMP, WES, MWE, NGLS, RGP, DPM, APL, XTEX, SMLP and SXE.(3) Represents estimated 3-yr unlevered internal rate of return by sensitizing targeted distributions per LP unit and long-term target yield on a CMLP unit purchased as
of 1/8/2014.
CMLP Offers Strong Total Return Potential to Investors
9
• CMLP represents superior risk-adjusted returns proposition for investors
• Current valuation (~50 to 150 Bps yield discount relative to selected peers) not reflective of the new Crestwood operating and financial platform with long-term visibility to 6 to 10% distribution growth
– Expected 3-Yr EBITDA CAGR of ~26% (1)
$1.2 BB organic expansion opportunities from 2014 to 2018 at 5.0x to 7.0x all-in build multiples
Continued disciplined M&A strategy to complement organic growth
~$60 to ~$70MM of additional EBITDA available for drop-down from CEQP (not included in ~26% expected EBITDA CAGR through 2016)
– Long-term coverage ratio targets of 1.05x to 1.10x
– Long-term leverage targets of 3.5x to 4.0x EBITDA
3-Yr Total Return Sensitivity (3)Current Yield (2)
7.0% 6.5% 6.3% 6.1%
5.1%
–
2.0%
4.0%
6.0%
8.0%
CMLP Diversified T&S Alerian G&P
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Target 3-Yr Annual Distribution GrowthYield 6.0% 7.0% 8.0% 9.0% 10.0%
7.00% 13% 14% 15% 16% 17%6.50% 15% 16% 17% 18% 19%
6.00% 18% 19% 20% 21% 22%
5.50% 21% 22% 23% 24% 25%5.00% 24% 25% 26% 28% 29%
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2013 2014 2015 2016$0
$25
$50
$75
$100
$125
LP Distributions GP / IDRs
$0
$150
$300
$450
$600
2013 2014 2015 2016LP Distributions GP / IDRs
CEQP Total Return Potential Leveraged to CMLP
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• Long-term CEQP growth levered to underlying execution and distribution growth at CMLP
• Expected 3-Yr CEQP DCF CAGR of ~35% (1)
– Challenging fundamentals at Tres Palacios limit 1H 2014 growth; over longer term GP / IDR economics work
6% to 10% annual growth in CMLP distributions per LP unit through 2016 drives ~45% to ~65% growth in cash distributions received by CEQP (LP distributions + GP / IDR distributions)
– Expected 3-Yr CAGR in CEQP distributions per LP unit of >20% (1)
…Drives ~50+% growth in CEQP Cash Received~6 to 10% CMLP Distribution / LP Unit Growth…
CMLP Total Cash Distribution ($MM) (2) CEQP Cash Received ($MM) (3)
(1) Represents compound annual growth rate from year end 2013 through year end 2016. Does not include the impact of any potential drop-down of the operational assets from CEQP to CMLP.
(2) Estimated total cash distributions paid by CMLP in accordance with long-term guidance of 6% to 10% annual growth in distributions per LP unit.(3) Represents cash received by CEQP for the 7.1MM LP units and GP / IDR interest that CEQP owns in CMLP. Does not include expected cash flows from the
operational assets currently owned by CEQP.(4) 2013 total CMLP cash distributions and CEQP cash received include pro forma adjustments as though the Crestwood / Inergy merger was completed as of January
1, 2013.
(4)(4)
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Industry Leading Portfolio of Gathering and Processing Assets Feed the Value Chain
Note: Key Operating Statistics as of 9/30/13. Includes storage and transportation.
Fayetteville Shale100,000+ acres
15 year contracts10-20% Developed
Haynesville Shale20,000+ acres
5-10 year contracts<20% Developed
Barnett Shale140,000+ acres
10-20 year contracts~60% Developed
Marcellus Shale136,000+ acres20 year contract
5-10% Developed+ ROFO on Antero’s
Western rich gas AODGranite Wash22,000+ acres
10-13 year contracts
~30-40% Developed
Permian / Delaware Basin55,000 acres to be redeveloped as rich
gas play
5 year contracts
Current system-wide gathering throughput of ~1.2 Bcf/d
PRB Niobrara Shale311,000 acres AMI20-year 15% COS
contracts<5% Developed
1111
Bakken Shale150,000 acres
Avg. Contract Tenor 6-7 yrs20% Developed
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$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
Strategy centered on developing infrastructure where producer wellhead economics are strongest
2014 Calendar Strip Price: $4.12/MMBtu(1)
2014 Calendar Strip Price: $91/Bbl(1)
Source: Tudor Pickering Research. Breakeven Prices to earn 10% Single Well IRR.(1) Calendar 2014 NYMEX prices as of 1/8/2014
Basins where Crestwood has existing assets or targeted development projects.
12
Favorable Basin Economics
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• Antero Resources/Crestwood Agreements
– 20-year, 100% fixed-fee contract with annual escalators for low pressure natural gas gathering and compression services
– ~136,000 net acres area of dedication
– 7 year East AOD minimum volume commitments underpins Crestwood’s capital outlay; 7 year ROFO on Antero’s Western Area
• Antero Resources 2013 Update
– 15 drilling rigs operating in WV; >$1.2 BB of D&C capex in WV Marcellus
– Signed contracts for 1.0 Bcf/d processing and 1.3 Bcf/d pipeline takeaway capacity to support WV drilling program
– Completed Largest E&P IPO ever in the US markets raising ~$1.6 BB in gross proceeds
• Accelerating Antero development plans drive significant Crestwood 2013/14 system growth
– Exit 2013 at ~ 500 MMcf/d (+25% YTD)
– Exit 2014 at ~ 750 MMcf/d (+50% YTD)
13
Growing rich gas gathering and compression assets in the core Southwest portion of the Marcellus
East AOD
Western Area
Existing pipeline2013 PipelinesPlanned build out 2014-20163rd Party takeaway
Area of Dedication (AOD)CMM compressor stations3rd Party comp stationsMWE Sherwood Plant
West Union
Greenbrier Area
Victoria
Marcellus Shale Drives G&P Segment Contribution
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• Recently completed the Zinnia 20” Trunkline integrating the Greenbrier Area with the Eastern AOD system
• 14 laterals under construction or recently completed connecting multiple Antero well pads– 2H 2013 to early 1Q 2014 in-service dates
• 11 new laterals in early planning stages – 2H 2014 to early 1Q 2015 in-service dates
• Recently completed the West Union Phases 1 & 2 (Western Area) and Morgan Phase 1 (East AOD) Stations adding 184 MMcf/d of compression capacity
• 5 additional compression projects totaling 263 MMcf/d under construction and expected to come on line over next 6 months
• New 120 MMcf/d Banner station plus 2 additional compressor stations on the planning horizon over remaining 18 month Antero development period
14
Marcellus 2013-14 Expansion Projects Update
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• Acquired 50% interest in Jackalope Gas Gathering System (“JGGS”) on 7/19/2013 for ~$108 MM
– Rich gas gathering and processing for Chesapeake (“CHK”), RKI Exploration and Production (“RKI”, a First Reserve portfolio company) and China National Offshore Oil Corporation (“CNOOC”) on 300,000+ acres
– ~145 miles of pipeline / 15,600 HP of compression; 115 wells currently connected to JGGS system
– Initial 120 MMcf/d processing plant in-service 3Q 2014
– Acquisition financed by $150 MM preferred equity with GE Energy Financial Services (“GE EFS”)
• Acquired 50% interest in Enserco Crude Oil Rail Terminal (Powder River Basin Industrial Complex) on 9/4/2013 for $22.5 MM
– Early stage crude oil rail terminal (similar start up to COLT HUB)
– Anchored by long term contract with CHK from JGGS area
– Expanding for crude by rail unit-train service to 20,000 BPD in 1Q 2014
PRB Niobrara Shale 3Q 2013 Acquisitions Add to Rich Gas Growth Potential
CHK/RKI Leasehold
CHK Operated Rigs
Industry Rigs
Non-Operated Rigs
Jackalope AMI (311,000 acres)
15
Integrated gathering, processing NGL pipeline and rail potential in the Powder River Basin (PRB)
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Segment Profit (1) 2014E Profit Contribution
16
Gathering & Processing Segment 2014 Forecast
42%
24%
2%
18%
9%
5%
Marcellus
Barnett Rich
Barnett Dry
Fayetteville
Niobrara
Granite Wash
(1) Represents segment level revenues less product purchases, operating and maintenance expenses.
$0
$50
$100
$150
$200
$250
2010 2011 2012 2013E 2014E
$ MM
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Well Positioned NE Storage & Transport Assets
• Crestwood owns premier NE US high deliverability, multi-cycle storage facilities in NY
– 41 Bcf fully contracted capacity under long term take or pay contracts; Firm storage services and interruptible/hub services
• Crestwood’s NE pipeline network connects CMLP storage & Marcellus supplies to Dominion, Millennium, Transco and TGP pipelines serving NE US markets
– Over 1.4 Bcf/d bi-directional capacity directly connected to Marcellus PA supply points;
• Diverse customer base: electric & gas utilities, Marcellus producers, and marketers
– Key customers include ConEd, PSEG, Anadarko, Cabot, Southwestern
17
Storage & Pipeline network provides critical infrastructure for Marcellus growth
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NE Storage & Transportation Contract Update
18
(1) Stagecoach and Thomas Corners are 100% contracted based on operational capacity.
Storage Contract Profile
Transportation Contract Profile
• Weighted average maturity of contract portfolio through June 2018• Significant re-contracting progress made during 3Q 2013:
– NE 2014 storage renewal capacity largely re-contracted at existing 18¢/MSQ rates; latest Stagecoach capacity renewed at 25¢/MSQ showing strong NE market demand for multi-turn storage
– 100 MMcf/d of available MARC I capacity marketed through end of 1Q 2015; MARC I fully subscribed and evaluating an expansion project
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FacilityCommodity
Stored
Percentage Contractually
Committed
Weighted Avg.
Maturity (Year)
Stagecoach (1) Natural Gas 26.3 Bcf 100% 2016Thomas Corners (1) Natural Gas 7.0 Bcf 100% 2015Seneca Lake Natural Gas 1.5 Bcf 100% 2017Steuben Natural Gas 6.2 Bcf 100% 2017
Working Storage Capacity
Transporation AssetCommodity Transported
Percentage Contractually
Committed
Weighted Avg.
Maturity (Year)
North-South Facilities Natural Gas 325.0 MMcf/d 100% 2016MARC I Pipeline Natural Gas 550.0 MMcf/d 100% 2021East Pipeline Natural Gas 30.0 MMcf/d 100% 2021
Transportation Capacity
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Tres Palacios Gas Storage – “Weather the Storm”
1919
• Current Gulf Coast gas storage market is challenged due to:– Overbuilt storage market– Weak summer/winter gas price spreads– Low gas price volatility– 2.1+ Bcf/d gathering capacity– Excess gas supplies from Eagle Ford play
• Long term demand for storage expected to improve when Gulf Coast LNG projects commence exports, Mexico gas demand increases and storage operators re-purpose or shut down excess capacity
• Aggressively driving down cost structure – Filed with FERC on 12/6/13 to reduce
certificated working capacity by 60% to match current firm subscriptions (15.5 Bcf) reducing operating expense by ~$7 MM
– Seeking reduction of property taxes by ~$3 MM
• Aggressive near term marketing strategy – New executives leading commercial function– Remarketing capacity but will avoid multi-year
re-contracting at the bottom of the market– Increasing optimization/hub services
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Storage & Transport Segment 2014 forecast
20
Transportation
Storage
20
Segment Profit (1) 2014E Profit Contribution
57%
43%
$0
$25
$50
$75
$100
$125
$150
2010 2011 2012 2013E 2014E
$ MM
Transportation
Storage
(1) Represents segment level revenues less product purchases, operating and maintenance expenses for both CEQP and CMLP operating assets (formerly NRGM and NRGY in historical periods).
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Expanding NGL & Crude Services Business
21
Key NGL Facilities and Assets
• Nationwide, Crestwood is handling over 500,000 BPD of NGLs and Crude Oil through our facilities and transportation assets– ~180,000 BPD of NGLs through NGL facilities and transport assets– ~186,000 BPD of NGLs controlled by Crestwood’s supply and logistics business– ~160,000 BPD crude through COLT Hub and Arrow Midstream
• Truck & Rail Car Fleet – 500 trailers (450 NGL) and 1,100 rail cars largely servicing the Marcellus and Utica Shale regions
• West Coast Assets – 25,000 BPD fractionation, isomerization, storage and terminalling facility
• Bath/NE Storage – 1.7 MMBbl propane and butane storage cavern
• South Jersey Terminal – rail to truck serving refiners and blenders in Eastern US markets
• Seymour, Indiana – proprietary NGL marketing terminal on Enterprise’s Teppco Pipeline with 500,000 Bbl storage cavern
• Refiner Services – includes keep dry agreements, butane blending services, emerging crude marketing business
• Producer Services – Exclusive NGL marketer for Williams and Total in Marcellus/Utica region
• US Salt – produces ~400,000 tons per year; provides access to growing NE storage cavern space
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0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
Jan-10 Oct-10 Jul-11 Apr-12 Jan-13 Oct-13
Expanding footprint in the
core of the Bakken
Crestwood’s Bakken platform to service ~18% of current
Bakken production
(1) Source: Cawley, Gillespie & Associates.(2) Source: North Dakota Department of Mineral Resources
Bakken Shale Drives 2014 Crude Services Growth
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• Attractive Producer Economics Drive…(1)
• Positioning Crestwood to be a full value chain midstream services provider for the Bakken Shale – COLT Hub Crude Rail Facility - connects
premier East Coast and West Coast refiners with growing Bakken Shale crude supplies
– Arrow Crude Gathering System - adds >150,000 acres dedicated with >1,000 total potential drilling locations in the core of the core of the Bakken Shale
… Continued Production Growth (Bbls/d)(2)
Original Oil in Place
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• Leading Bakken crude rail facility located in Williams County, ND anchored by multi-year take or pay contracts with refiners on West Coast and East Coast
• 160,000 BPD rail loading capacity(1)
– Double rail loop– Connected to the Burlington Northern
Santa Fe rail system• Truck unloading facility with capacity of
96,000 BPD(1)
• 1.08 million Bbl of customer storage capacity(1)
• 21-mile, 10” bi-directional pipeline (COLT Connector) connects COLT Terminal to Dry Fork Terminal
• Interconnectivity with Arrow crude gathering system through Tesoro and Hiland
Dry Fork Terminal Overview
• Located at the intersection of four major pipelines at the Beaver Lodge/Ramberg pipeline hub
• Crude oil metering and pipeline interconnection facilities allow transfer to:– Tesoro pipeline– Enbridge pipeline
• 120,000 Bbl of working storage capacity• Potential interconnections with Hess, Hiland
Crude and TransCanada
COLT Terminal Overview
(1) Capacities shown are after planned expansion is complete.
COLT Hub Crude Rail Facility
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Operations: Dunn and McKenzie Counties, ND
Volumes: ~ 50,000 MBbls/d crude oil; ~15 MMcf/d of gas; ~ 10,500 MBbls/d of water
Wells Connected: ~255 wells
• Located on the Fort Berthold Reservation• Long term gathering contracts with committed
Bakken Shale producers: WPX, QEP, XTO, Halcon and Kodiak
• 460 miles of gathering pipeline systems– 150 miles of crude oil gathering lines (125,000
Bbl/d of throughput capacity by 2015)– 160 miles of natural gas gathering lines (100
MMcf/d of throughput capacity by 2015)– 150 miles of water gathering lines (40,000 Bbl/d
of throughput capacity by 2015) – Multiple crude pipeline interconnects (Tesoro,
Hiland and Bakken Link) and natural gas pipeline and processing connect with OneOk
– Fully-automated truck loading facilities and crude oil storage capacity at CDP
• Substantial gathering system expansion underway– Commissioning 5 new compressor stations to
capture flared associated gas in 1Q 2014– 9-10 rigs operating in area to drive 2014
volumes
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$750 MM accretive Arrow Midstream acquisition closed November 8, 2013
Asset Description Asset Map
Arrow Midstream Acquisition
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COLTConnector
Dry Fork Terminal
COLTTerminal
Tesoro CorporationBelle Fourche Pipeline Co.Enbridge Pipelines North Dakota Inc.
Crude PipelinesBNSF Railroad
Enbridge Pipeline
BNSF Mainline Beaver
Lodge
Synergy Potential
• Arrow system is ~ 60 miles southeast of CMLP’s COLT Hub crude rail and pipeline terminal
– COLT Hub is North Dakota’s most active crude by rail facility; expansion to be completed in 1Q 2014
160,000 BPD unit train capacity; 1.2 MMBls crude oil storage; 105,000 BPD pipeline capacity; 95,000 BPD truck rack unloading capacity
150,000 BPD rail loading take or pay contracts with refiners (70% of flow to Pacific NW)
• Direct connectivity between Arrow and COLT Hub through Hiland and Tesoro Pipelines
– Improves pricing and sales optionality for Arrow producers
– Improves access to new wellhead supplies for COLT customers
Integrating the Bakken Footprint
2525
Arrow’s CDP is a strategic liquidity hub south of the Missouri river, which complements COLT Hub
ArrowSystemTesoro
Pipeline
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NGL & Crude Services Segment 2014 Forecast
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Segment Profit (1) 2014E Profit Contribution
12%
7%
9%
4%
7%
28%
33%
$0
$50
$100
$150
$200
$250
2010 2011 2012 2013E 2014E
$ MM NGL Supply Logistics
Crude Logistics
NGL Transportation
West Coast
NGL Storage
US Salt
(1) Represents segment level revenues less product purchases, operating and maintenance expenses for both CEQP and CMLP operating assets (formerly NRGM and NRGY in historical periods).
Arrow
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• Post-merger mid-cap MLP positioned to service premier US liquids-rich and crude oil shale plays – Liquids-focused growth strategy benefits from
robust long-term macro fundamentals• Diversified assets servicing world-class customers
across the midstream value chain– Gathering & Processing– Storage and Transportation– NGL and Crude Services
• Stable cash flow platform with ~84% margin from fixed-fee and take-or-pay type contracts– NE Storage & Transportation assets fully
subscribed with firm demand contracts– COLT Hub fully contracted with take or pay
contracts– Marcellus gathering and compression minimum
volume commitments• Strong balance sheet with liquidity to fund growth
projects and bolt-on acquisitions– 2014 capital program fully funded with minimal
capital markets activity expected
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Key Investor Highlights
Positioning Crestwood for long-term visibility to growth through organic projects and M&A
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Non GAAP Reconciliations
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Crestwood Midstream Partners, L.P. Non-GAAP Reconciliations
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Net income $105 - $138
Interest expense, net $130 - $142
Depreciation, amortization and accretion $230
Adjusted EBITDA $465 - $510
Cash interest expense1 ($115) - ($127)
Maintenance capital expenditures1 ($20) - ($23)
Adjusted distributable cash flow $330 - $360
1 We define cash interest expense as interest expense, net, adjusted for the amortization of debtissue costs , premiums, discounts and other non‐cash debt‐related i tems. We define maintenance capita l expenditures as capita l expenditures related to maintaining our assets and operations .
CRESTWOOD MIDSTREAM PARTNERS LPFull Year 2014 Adjusted EBITDA and Distributable Cash Flow Guidance
Reconciliation to Net Income ($ In millions)
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Crestwood Equity Partners, L.P. Non-GAAP Reconciliations
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Net income $135 - $173
Interest expense, net $145 - $157
Depreciation, amortization and accretion $240
Adjusted EBITDA $520 - $570
Cash interest expense1 ($130) - ($142)
Maintenance capital expenditures1 ($25) - ($28)
Proportionate Adjusted DCF Attributable to Public CMLP Unitholders2 ($280) - ($305)
Adjusted distributable cash flow $85 - $95
1 We define cash interest expense as interest expense, net, adjusted for the amortization of debtissue costs , premiums, discounts and other non‐cash debt‐related i tems. We define maintenance capita l expenditures as capita l expenditures related to mainta ining our assets and operations .
2 Represents proportionate amount of DCF attributable to publ ic unitholders after taking into account CEQP's ownership interest in CMLP's incentive dis tribution rights and common units .
Reconciliation to Net Income($ In millions)
CRESTWOOD EQUITY PARTNERS LPFull Year 2014 Adjusted EBITDA and Distributable Cash Flow Guidance
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