citi 2014 mlp/midstream infrastructure conference...

Presentation TitlePresentation Subtitle

Crestwood Midstream Partners LP Crestwood Equity Partners LP

Connections for America’s Energy™

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9/22/2014




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Citi 2014 MLP/Midstream Infrastructure Conference

August 20-21, 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

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Connections for America’s Energy™ ™™ ™™ ™

Crestwood is Well Positioned to Create Value

3

Two publicly traded MLPs provides strategic flexibility to enhance value

• ~$9.0 BB enterprise value

• Handling ~3 Bcf/d of natural gas;~300 MBbls/d of NGLs; 200 MBbls/d crude oil

• Well positioned in the Marcellus, Utica, Bakken, PRB Niobrara and Delaware Permian for long-term growth in key liquids rich/crude oil shale plays

• Sequential QTQ growth in Adjusted EBITDA since Inergy merger

• Visible 2014/15/16 growth through announced expansion projects

• Well capitalized for future growth investments due to $650 MM CMLP preferred equity

• Significant sponsor and management ownership aligned with public ownership

Crestwood Equity Partners LP(NYSE: CEQP)

186.4 MM units outstanding

First Reserve/Crestwood Holdings

~10% LP Interest

Crestwood Midstream Partners LP

(NYSE: CMLP)187.9 MM common units outstanding

12.0 MM Class A preferred units outstanding

Operating Subsidiaries

~4% LP InterestGP / IDR Ownership

CEQP Public Unitholders

~71% Interest

CMLP Public Common and

Class A Unitholders~86% Interest

~29% LP Interest100% Non-economic GP Interest (Control)


Growing Operations in Key US Shale Plays

4

Assets and operations divided into 4 operating regions to gain scale, reduce costs and generate commercial synergies


Attractive Business Profile and Contract Portfolio

…With Stable Contract Profiles

5

Crude Oil & NGL Gross Margin

69%

Dry GasMargin31%

5

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

– Long-term service contracts in the best US resource plays supported by strong producer drilling economics

• Growth levered to Crude and NGL focused services

– Material upside to improving natural gas prices in Barnett and Fayetteville shale plays

• Significant contract stability

– Minimal direct commodity price exposure

– 87% of gross margin from firm and take-or-pay contracts

BarnettRich

Inergy Services

COLTHub

BarnettDry

MARC I Arrow

Gathering & Processing

38%

Storage & Transportation

23%

NGL & Crude

Services39%


Integrated Value Chain Strategy will lead to Asset Optimization and Improved Performance over time

66

Focused on Liquids-Rich and Crude Oil Shale Plays

Targeting investment in liquids-rich gas and crude oil shale plays

Wellhead services for producer customers

Pipeline gathering

Trucking

Compression

Processing

Extending services to provide flow assurance and customer flexibility

Control of product from wellhead to end user

Improves customer optionality

Leveraging asset footprint to realizeoperational synergies

Organic growth projects

Bolt-on acquisitions

Capturing additional margin/fee opportunities

Providing connectivityto premier end markets

Serving diverse network of demand-side customers

Natural gas utilities

Power generators

Petrochemical

Crude oil refining

Supply Aggregation Connectivity & Optionality

Integration & Optimization Market Access


• Marcellus – SW rich gas gathering/compression; NE dry gas storage/transportation

• Bakken – leading CBR loading facility; growing core area oil gathering system

• PRB Niobrara – leading rich gas gathering system; first new processing plant

• Delaware Permian – converted low cost dry gas to rich gas gathering/processing

• Adjusted EBITDA increased 29% since 3Q 2013 (Oct 2013 merger date)

• Natural gas volumes up 13% since 3Q 2013 to ~3 Bcf/d in 2Q 2014

• NGL supply, logistics and storage volumes support 10-15% CAGR target

• Crude oil volumes increased from 83 MBbls/d in 3Q 2013 to 200 MBbls/d in 2Q 2014

• Delay distribution growth until improvement in distribution coverage ratio to >1.0x

• $500 MM PIK preferred equity funds 2014/1H 2015 growth capital, reduces leverage ratio, enhances coverage ratio at attractive long-term cost of capital

• Operations management changes to enhance execution and performance

• Marcellus gathering/compression capacity in excess of Antero FYE volume target

• NE storage & transportation expansions ramp volumes by 10-15%

• Bakken Colt Hub R&D track expansion in service in 3Q 2014

• PRB Niobrara Bucking Horse plant in service in October 2014

2014 Mid-Year Performance Update

7

Strong QTQgrowth in Adjusted

EBITDA andVolumes

2nd half 2014projects drive

improved coverage and resumption of

distributiongrowth

Strategicassets in rich

gas/crude shale plays

While starting out slower than expected, business plan taking shape

Adjusting plansto improve long-term

performance


Improving Results since 3Q 2013 Merger

88

Sequential Consolidated LTM EBITDA growth; record natural gas and crude volumes

(1) Following the Crestwood-Inergy merger completed in October 2013, Crestwood restated its combined financial and operating results to the beginning of the third quarter 2013.

(2) All assets in the Gathering and Processing segment are owned by CMLP. Amounts exclude accruals for the Antero earn-out.

(3) Excludes non-cash fair value changes on derivative contracts.

Segment EBITDA

Operating Stats

3rd Qtr (1) 4th Qtr 1st Qtr 2nd QtrSegment EBITDA ($ MMs)

Gathering and Processing (2) 43.2$ 47.5$ 48.2$ 51.0$

Storage and TransportationCMLP Operations 33.4$ 33.6$ 36.8$ 37.8$ CEQP Operations 1.5$ 3.1$ 1.2$ (2.9)$

Total 34.9$ 36.7$ 38.0$ 34.9$

NGL and Crude Services (3)

CMLP Operations 15.1$ 20.7$ 26.3$ 34.7$ CEQP Operations 16.4$ 18.0$ 18.7$ 12.0$

Total 31.5$ 38.7$ 45.0$ 46.7$

Total 109.6$ 122.9$ 131.2$ 132.6$

Operating Statistics

CMLPNatural gas volumes (MMcf/d) 2,706 2,833 2,982 3,049 Crude oil volumes (MBbls/d) 83 140 152 200

CEQPSupply and logistics 757 964 922 635

(Gallons sold or processed, millions)

20142013


Improving Balance Sheet Creates Flexibility

99

Recent Equity issuance improves credit metrics; no near-term debt maturities

• BB/Ba3 credit rating; stable outlook

• $300 MM Class A preferred equity issued by CMLP in 2Q 2014

• Additional $200 MM Class A equity to be issued by 3Q 2015

• $300 MM ‘at-the-market’ program available to CMLP

• ~$200 MM 2H 2014 capex estimate

• Targeting < 4.5x FYE 2014 and < 4.0x FYE 2015 leverage ratio at CMLP

(1) Total CMLP Revolver capacity is $1.0 BB. Total CEQP Revolver capacity is $550 MM.

Debt Maturities

($ in millions) 4th Qtr 1st Qtr 2nd Qtr2013 2014 2014

CMLP Balance Sheet Profile

Revolver Balance (1) 414.9$ 532.1$ 412.3$

Total Debt 1,870.8$ 1,989.5$ 1,871.2$

Leverage Ratio 4.90x 5.06x 4.56x

CEQP Balance Sheet Profile

Revolver Balance (1) 381.0$ 387.6$ 403.5$

Total Debt 395.2$ 401.8$ 417.8$

Leverage Ratio 4.22x 4.23x 4.13x


• Equity support with built-in flexibility to execute growth opportunities– $500 MM commitment from Magnetar, GSO Capital and GE Capital to finance

ongoing organic growth program ($300 MM funded, 12 MM units)– $150 MM commitment from GE Capital to finance PRB Niobrara development

(~$130 MM funded)

• Fulfills 2H 2014 / 2015 equity needs eliminating future execution / market risk

• Significantly de-levers balance sheet to long-term targets (<4.0x)

• Financial flexibility from PIK feature to optimally execute organic capital program

• Fixed cost of preferred favorable to current cost of common equity

• $500 MM CMLP Class A Preferred units issued at $25.10

− 9.25% fixed yield, PIK through 2Q 2017, convertible 1-for-1 beginning 2H 2017

• $150 MM Crestwood Niobrara Preferred units

− 9% fixed yield, PIK through 4Q 2014, redeemable any time exclusively at CMLP option for cash or units at targeted minimum IRR

• Future capital draws timed with capital expenditures through 3Q 2015• PIK flexibility utilized to bridge between project execution and EBITDA ramp-up

• CMLP distribution growth to resume when coverage ratio >1.0x (targeted in 2H 2014)

− Prudently manage long-term distribution growth and coverage keeping in mind ultimate conversion of preferred units

Strategic Equity Capital Matches Development Profile

10

StrategicRationale

Execution Strategy

SignificantEquity Support

$650 million preferred equity is the right capital at the right time

Key EconomicTerms


2H 2014 Goals and Objectives

1111

Delivering on near-term initiatives to improve visibility of long-term growthCMLP FYE Targeted Result Complete 5 major 2014 capital

projects on-time and on-budget to drive continued volume growth into 2015

Marcellus gathering expansion to 875 MMcf/d; NE Storage and Transportation North-South pipeline

expansion of 200 MMcf/d Bucking Horse 120 MMcf/d processing facility in PRB Niobrara COLT Hub release and departure track completes 160

MBbls/d CBR loading capacity Increase Arrow gathering system throughput to ~70 MBbls/d

crude oil and ~50 MMcf/d gas capacity at FYE 2014

Achieve revised FY 2014 guidance of $440 MM- $460 MM, a 7.7% midpoint reduction from original 2014 guidance of $460-$510 MM

Expect 5%-10% QTQ sequential growth in 2H14 Adjusted EBITDA based upon current producer drilling plans

Improve distribution coverage to 1.0X target to resume CMLP distribution growth

2H 2014 forecast meets coverage ratio target leading to resumption of CMLP distributions

CEQP FYE Targeted Result Improve Tres Palacios to breakeven

performance and more appropriate valuation leading to possible drop-down to CMLP

Expect FERC abandonment ruling and settlement of local tax issues to result in $7-$10 MM annual cost savings

Recent Cardinal and Lodi comparable storage transactions building momentum for valuation at Tres Palacios needed to accomplish drop-down to CMLP or third-party


Operations Update by Region

1212


Northeast Region – Marcellus / Utica

1313

• >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

Strong producer drilling economics due to NGL upgrade

Key customer: Antero Resources

Critical Northeast US storage and transportation facilities

41 Bcf fully contracted capacity

>1.4 Bcf/d bi-directional transportation capacity

Attractive customer mix of gas and electric utilities, producers and marketers

Favorable 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 (Mariner East II project)

Key customers: Williams, Total, Hilcorp, PBF and Marathon

(1) Based on industry forecast data.


• Antero Resources Marcellus Overview(1)

– $18 BB E&P company (NYSE:AR)

– Most active driller in Marcellus – 15 rigs running

– ~140,000 acre Marcellus Eastern Area of Dedication (~40% of total 373,000 net acres)

– Current Antero Marcellus reserves

8.6 Tcfe proved; 26.4 Tcfe 3P reserves

4.7 Tcfe additional Upper Devonian

– Committed to ~2 Bcf/d processing and ~4 Bcf/d pipeline downstream capacity

– Drilling with +20%-30% ROR Rich/Dry Marcellus well economics

14

Crestwood provides exclusive gathering and compression services for Antero Resources’ Eastern Area of Dedication in the rich-gas Southwest core of the Marcellus Shale play

NE Region – Southwest Marcellus Gathering

14

(1) Based on Crestwood internal estimate and Antero Resources June 2014 Update.


NE Region – Southwest Marcellus 2Q 2014 Update

15

• Antero Crestwood 2012 Agreements

– 20-year, 100% fixed-fee contract with annual escalators

– 7 year increasing annual minimum volume commitment in East AOD

• Consistent growth trajectory 2012 - 2014

– 213 HZ wells connected to Crestwood’s system since inception

– July 2014 gathering volumes of ~650 MMcf/d; 570 MMcf/d compression volumes

– Expected 2014 exit rate of 750 MMcf/d; 63% increase from 4Q 2013

• Visibility to continued volume growth

– ~ 1,500 drilling locations in East AOD (1);

23 wells drilled, waiting on completion (1)

– SSL type curve of 1.7 Bcf/1,000’ leads to higher EUR, lower well cost

Marcellus Gathering and Compression Volumes

(1) Based on Crestwood internal estimate and Antero Resources June 2014 Update.


Transporation AssetCommodity Transported

Percentage Contractually

Committed

Weighted Avg.

Maturity

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

NE Region – Marcellus Storage & Transportation

16

(1) Stagecoach and Thomas Corners are 100% contracted based on operational capacity.

Storage Contract Profile

Transportation Contract Profile

• 41 Bcf high performance, multi-cycle natural gas 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 contract services

– Interconnects with TGP, Transco, Millennium and DTI (Atlantic Sunrise – TBD)

– Primary shippers include Anadarko, Chesapeake, Cabot, Southwestern and Statoil

FacilityCommodity

Stored

Percentage Contractually

Committed

Weighted Avg.

Maturity

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

Storage Capacity


NE Region – Storage & Transport 2Q 2014 Update

17

• Volume growth from increased NE Marcellus production

1H 2014 average throughput up 25% vs 2013 annual average

Firm 82%, Interruptible 18%

• Basis spreads remained strong in 2Q even after winter 13-14

• Capturing higher percentage of spread with new interruptible capacity utilization / pricing strategy

NE Marcellus dry gas supply growth driving record throughput, margins and expansion opportunities

• Incremental 40 MMcf/d of firm transportation on North/South and MARC I began service April 2014

• “NorthEast Pennsylvania Connector” project (NS-1 Expansion) progressing on schedule for 1Q 2015 in-service

117 MMcf/d of firm commitments to date; ~$6.5 MM EBITDA contribution

• Exploring additional projects on-system in response to continued supply growth around asset base

Currently connected to Access and SWN gathering systems (~ 1 Bcf/d receipt capacity)

Area producers looking for additional access to market

2Q 2014 Performance

Commercial Highlights

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0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

MM

Dth


Rockies Region: Bakken / PRB Niobrara

1818

• 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 and Enerplus

• PRB Niobrara gas gathering and processing system >180 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: 10-20 Mbbl/d rail Douglas terminal and 100 Mbblstorage in Converse County, WY

• Key customers: Tesoro, Sunoco, Flint Hills, US Oil, Statoil, BP, CHK

COLT Connector pipeline links COLT Hub and Dry Fork Terminal

>40 MBbl/d truck capacity for crude oil and produced water

Commenced crude supply and logistics marketing in 2Q 2014 to optimize Crestwood’s Bakken assets

Key customers: Arrow producers, EOG, Sinclair

2 unit trains (220 rail cars) on order, to be received 1Q 2015

Value chain strategy at work in Bakken and PRB Niobrara

(1) Based on industry forecast data.


• $750 MM November 2013 acquisition

• ~150,000 acreage dedication on Fort Berthold Indian Reservation (FBIR)

• Long-term crude oil, rich natural gas and produced water gathering contracts with WPX, Kodiak, Halcon, XTO, QEP and Enerplus

• Recent Arrow producer developments– WPX:

2Q 2014 oil production results up 21% over 1Q 2014 Down-spacing creating 10-year

drilling inventory at 2014 rate– Kodiak:

Whiting announced acquisition of Kodiak in July 2014; expected to ramp development activities

– Halcon: Down-spacing tests indicate

potential for up to 16 wells per DSU– QEP:

Strong 2Q 2014 well results and lower LOE on FBIR

19

Crestwood’s Bakken crude oil value chain strategy begins with Arrow Gathering

Rockies Region – Arrow Gathering

19


Rockies Region - COLT Hub and Connector

2020

Sourcing Capacity Storage Capacity Takeaway Capacity

COLT Hub links Bakken crude supply to prime markets; currently the leading rail terminal in North Dakota by volume

• >290,000 Bbls/d− COLT Connector− Tesoro pipeline− Banner pipeline− Meadowlark pipeline− Truck deliveries

• 1.2 MM Bbls (working cap)− Largest storage position in the basin − Tradable market − Buyers and sellers− Point of liquidity − Creditworthy counterparties

• >350,000 Bbls/d− Rail loading to West/East Coast− COLT Connector− Tesoro pipeline− Enbridge pipeline− ETP Bakken project


• Increased Q2 2014 volumes following severe winter weather in 1Q 2014

• 36 wells connected 2Q 2014 compared to 9 in Q1 2014; expect 43 additional wells to be connected 2H 2014

• Forecasted Q4 2014 performance of ~$20 MM is on-target with original acquisition expectation

21

CMLP handled 200 MBbls/d in 2Q via gathering, trucking, rail loading and pipe

Arrow Gathering Update

Rockies Region – Arrow/COLT 2Q 2014 Update

21

Arrow Gathering

COLT Hub & ConnectorCOLT Hub & Connector Update

• Completion of additional R&D track in Q4 2014 expected to increase COLT CBR loadings to ~160 MBbls/d

• COLT Connector 3Q QTD at 35 MBbls/d vs 25 MBbls/d in 2Q 2014

• Contracted for 10 MBbls/d capacity on Tesoro Logistics High Plains expansion to directly connect Arrow and COLT


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 Q3 2014 volumes ~ 55 MMcf/d

• 36 wells drilled, waiting on completion due to capacity constraints

• 120 MMcf/d Bucking Horse processing plant to be completed in 4Q 2014; will alleviate capacity constraints

Rockies Region – PRB Niobrara

2222

Jackalope Gas Gathering

Recent Jackalope Developments

• CHK and RKI announced agreement to exchange acreage and interests in Jackalope dedication

• Increases CHK interest by 66,000 acres and net WI to 79%

• >2 Billion BOE potential recoverable gross resource

• Announced increase in operated rigs to 7-9 in 2015

Jackalope Volumes


Central Region – Barnett, Permian, Fayetteville, Granite Wash / Haynesville & Gulf Coast Storage

23

• 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 South 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

Phase II expansion to 30 MMcf/d processing capacity completed early Q3 2014

Potential Phase III expansion to 120 MMcf/d (Delaware Ranch)

36 MMcf/d gathering and processing capacity in the Granite Wash

Haynesville gathering and treating assets provide upside potential as dry gas drilling resumes

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 Delaware basin

(1) Wholly-owned subsidiary of CEQP


Central Region – Barnett Shale 2Q 2014 Update

24

Resumption of Growth in the Barnett Shale

• Recent Quicksilver (KWK) / Tokyo Gas well completions show improved performance in Barnett dry area

– 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

– 2Q 2014 Alliance and Lake Arlington volumes increased 24% from 1Q 2014

• KWK well work-over program reduced Barnett decline rates

• New incentive fee structure to drive further rich-gas development at Cowtown

Barnett Gathering


Central Region – Delaware Permian 2Q 2014 Update

• Completed Willow Lake Gathering & Processing Facility in July 2014– 20 MMcf/d cryogenic plant – 10-year, fixed-fee gathering and

processing agreement with Legend Production Holdings; 107,000 acre AMI

– Legend to kick off development program in 3Q 2014

• Potential 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• Potential Phase IV

– Crude trucking, pipeline gathering & transportation

– Water gathering & disposal

TX

NM

25


Near-Term Initiatives for Tres Palacios

• Potential sale of a minority interest in Tres Palacios to a third-party with a simultaneous drop-down of the remaining interest to CMLP

• Discussions with strategic partners that could improve near-term performance while preserving longer-term upside as storage market conditions improve

• Drop-down to CMLP provides continued CEQP exposure to the upside through IDRs and distributions (versus a 100% third-party sale at low market prices)

• Recent Lodi and Cardinal storage transactions at $3.4 MM to $4.2 MM per Bcf of working capacity indicate Tres Palacios valuation of $120 MM to $160 MM

Central Region – Tres Palacios 2Q 2014 Update

26

Mexico Plans 42 Gas-Fired Power Projects

> 4.0 Bcf/d of Nearby LNG Export Facilities

Note: Tres Palacios is a wholly-owned subsidiary of CEQP

Corpus Christi


NGL Supply, Logistics, Transportation

27

• Leading purchaser of Marcellus / Utica liquids

• Among largest LPG truck fleets in the US• Expanding customer relationships with

NGL volumes marketed of ~350 MBbl/d during 2013/2014 winter period

• Strong Bath storage utilization / positive momentum for Watkins Glen approval

• West Coast business positioned for future growth as Monterrey Shale develops

• Contracted for 10 MBbl/d Mariner East II pipeline capacity starting in 2016

27

CEQP growing business segment instrumental in executing Crestwood’s “wellhead-to-burner tip“ operating model


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+

28

Long-Term Growth Drivers

28

~$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


• 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

29

Key Investor HighlightsFinancial stability with visible growth through execution of value chain strategy

29


Non GAAP Reconciliations

3030


Crestwood Midstream Partners LP Non-GAAP Reconciliations

31

2nd Qtr 1st Qtr 4th Qtr 3rd Qtr

Gathering and ProcessingOperating revenues 83.4$ 79.5$ 76.6$ 71.1$ Costs of product/services sold 17.6 18.7 16.2 12.9Operations and maintenance expense 14.7 13.4 14.4 14.9Goodwill impairment — — — (4.1)Gain on long-lived assets 0.5 0.5 1.0 4.4Loss on contingent consideration (6.5) (2.1) (31.4) —Earnings (loss) from unconsolidated affiliate (0.6) 0.3 0.5 (0.4)

EBITDA 44.5$ 46.1$ 16.1$ 43.2$ Significant items impacting EBITDA:

Loss on contingent consideration 6.5 2.1 31.4 —Adjusted EBITDA 51.0$ 48.2$ 47.5$ 43.2$

Storage and TransportationOperating revenues 45.4$ 44.3$ 42.5$ 42.1$ Costs of product/services sold 3.8 3.2 4.3 4.0Operations and maintenance expense 4.4 4.3 4.6 4.7Gain on long-lived assets 0.6 — — —

EBITDA and Adjusted EBITDA 37.8$ 36.8$ 33.6$ 33.4$

NGL and Crude ServicesOperating revenues 546.9$ 413.2$ 246.9$ 26.9$ Costs of product/services sold 497.7 376.2 219.8 9.7Operations and maintenance expense 13.6 10.3 6.2 2.1Loss from unconsolidated affiliate (0.9) (0.4) (0.2) —

EBITDA and Adjusted EBITDA 34.7$ 26.3$ 20.7$ 15.1$

Total Segment Adjusted EBITDA 123.5$ 111.3$ 101.8$ 91.7$

Significant items impacting EBITDA (1) (6.5) (2.1) (31.4) —Total Segment EBITDA 117.0$ 109.2$ 70.4$ 91.7$

Corporate (21.3) (24.1) (36.7) (25.2)EBITDA 95.7$ 85.1$ 33.7$ 66.5$

CRESTWOOD MIDSTREAM PARTNERS LP (FORMERLY INERGY MIDSTREAM, L.P.)Segment Data(in millions)(unaudited)

2014 2013

(1) Signif icant items impact ing EBITDA represents loss on cont ingent considerat ion



32

2nd Qtr 1st Qtr 4th Qtr 3rd QtrEBITDANet income (loss) 11.7$ 5.5$ (42.3)$ 11.6$ Interest and debt expense, net 29.0 28.1 28.0 19.5Provision (benefit) for income taxes 0.1 0.7 (0.3) 0.3Depreciation, amortization and accretion 54.9 50.8 48.3 35.1

EBITDA (1) 95.7$ 85.1$ 33.7$ 66.5$ Significant items impacting EBITDA:

Non-cash equity compensation expense 5.2 4.6 9.3 4.8Gain on long-lived assets (1.1) (0.5) (1.0) (4.4)Goodwill impairment — — — 4.1Loss on contingent consideration 6.5 2.1 31.4 —(Earnings) loss from unconsolidated affiliates, net 1.5 0.1 (0.3) 0.4Adjusted EBITDA from unconsolidated affiliates 0.4 1.7 1.9 0.6Significant transaction related costs and other items 1.5 5.8 15.9 13.3

Adjusted EBITDA (1) 109.7$ 98.9$ 90.9$ 85.3$

CRESTWOOD MIDSTREAM PARTNERS LP (FORMERLY INERGY MIDSTREAM, L.P.)Reconciliation of Non-GAAP Financial Measures

(in millions)(unaudited)

2014 2013

(1) EBITDA is defined as income before income taxes, plus net interest and debt expense, and depreciat ion, amort izat ion and accret ion expense. In addit ion, Adjusted EBITDA considers the adjusted earnings impact of our unconsolidated aff iliates by adjust ing our equity earnings or losses from our unconsolidated af f iliates for our proport ionate share of their depreciat ion and interest , the impact of certain signif icant 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 acquisit ions, loss on contingent considerat ion, and other t ransactions ident if ied in a specif ic report ing period. EBITDA and Adjusted EBITDA are not measures calculated in accordance with account ing principles generally accepted in the United States of America (GAAP), as they do not include deduct ions for items such as depreciat ion, amort izat ion and accret ion, interest and income taxes, which are necessary to maintain our business. EBITDA and Adjusted EBITDA should not be considered an alternat ive to net income, operat ing cash f low or any other measure of f inancial performance presented in accordance with GAAP. EBITDA and Adjusted EBITDA calculat ions may vary among ent it ies, so our computat ion may not be comparable to measures used by other companies.


Crestwood Equity Partners LP Non-GAAP Reconciliations

33

2nd Qtr 1st Qtr 4th Qtr 3rd QtrGathering and ProcessingOperating revenues 83.4$ 79.5$ 76.6$ 71.1$ Costs of product/services sold 17.6 18.7 16.2 12.9Operations and maintenance expense 14.7 13.4 14.4 14.9Goodwill impairment — — — (4.1)Gain on long-lived assets 0.5 0.5 1.0 4.4Loss on contingent consideration (6.5) (2.1) (31.4) —Earnings (loss) from unconsolidated affiliate (0.6) 0.3 0.5 (0.4)


Loss on contingent consideration 6.5 2.1 31.4 —Adjusted EBITDA 51.0$ 48.2$ 47.5$ 43.2$

Storage and TransportationOperating revenues 47.8$ 51.0$ 49.1$ 48.8$ Costs of product/services sold 7.2 6.8 8.0 7.1Operations and maintenance expense 6.3 6.2 4.4 6.8Gain on long-lived assets 0.6 — — —

EBITDA and Adjusted EBITDA 34.9$ 38.0$ 36.7 34.9$

NGL and Crude ServicesOperating revenues 795.1$ 841.1$ 682.5$ 307.3$ Costs of product/services sold 722.8 760.5 622.6 270.0Operations and maintenance expense 27.7 24.5 20.3 15.5Gain (loss) on long-lived assets 0.1 — (0.1) —Loss from unconsolidated affiliate (0.9) (0.4) (0.2) —


Change in fair value of commodity inventory-related derivative contracts 2.9 (10.7) (0.6) 9.7

Adjusted EBITDA 46.7$ 45.0$ 38.7$ 31.5$

Total Segment Adjusted EBITDA 132.6$ 131.2$ 122.9$ 109.6$

Significant items impacting EBITDA (1) (9.4) 8.6 (30.8) (9.7)Total Segment EBITDA 123.2$ 139.8$ 92.1$ 99.9$

Corporate (24.0) (27.8) (40.6) (29.1)EBITDA 99.2$ 112.0$ 51.5$ 70.8$

CRESTWOOD EQUITY PARTNERS LP (FORMERLY INERGY, L.P.)Segment Data(in millions)(unaudited)

2014 2013

(1) Signif icant items impact ing EBITDA represents loss on cont ingent consideration and change in fair value of commodity inventory-related derivat ive contracts



34

2nd Qtr 1st Qtr 4th Qtr 3rd QtrEBITDANet income (loss) (4.8)$ 13.2$ (42.1)$ (7.9)$ Interest and debt expense, net 32.6 31.7 31.7 22.8Provision (benefit) for income taxes 0.2 0.8 (0.2) 0.5Depreciation, amortization and accretion 71.2 66.3 62.1 55.4

EBITDA (1) 99.2$ 112.0$ 51.5$ 70.8$ Significant items impacting EBITDA:

Non-cash equity compensation expense 6.2 5.4 9.8 5.6Gain on long-lived assets (1.2) (0.5) (0.9) (4.4)Goodwill impairment — — — 4.1Loss on contingent consideration 6.5 2.1 31.4 —(Earnings) loss from unconsolidated affiliates, net 1.5 0.1 (0.3) 0.4Adjusted EBITDA from unconsolidated affiliates 0.4 1.7 1.9 0.6Change in fair value of commodity inventory-related derivative contracts 2.9 (10.7) (0.6) 9.7Significant transaction related costs and other items 2.2 6.5 17.8 13.1

Adjusted EBITDA (1) 117.7$ 116.6$ 110.6$ 99.9$

CRESTWOOD EQUITY PARTNERS LP (FORMERLY INERGY, L.P.)Reconciliation of Non-GAAP Financial Measures

(in millions)(unaudited)

2014 2013

(1) EBITDA is def ined as income before income taxes, plus net interest and debt expense, and depreciat ion, amort izat ion and accret ion expense. In addit ion, Adjusted EBITDA considers the adjusted earnings impact of our unconsolidated aff iliates by adjust ing our equity earnings or losses from our unconsolidated aff iliates for our proport ionate share of their depreciat ion and interest, the impact of certain signif icant items, such as non-cash equity compensat ion expenses, gains and impairments of long-lived assets and goodwill, third party costs incurred related to potential and completed acquisit ions, loss on cont ingent considerat ion, and other t ransact ions identif ied in a specif ic report ing 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 deduct ions for items such as depreciat ion, amort izat ion and accret ion, interest and income taxes, which are necessary to maintain our business. EBITDA and Adjusted EBITDA should not be considered an alternat ive to net income, operat ing cash f low or any other measure of f inancial performance presented in accordance with GAAP. EBITDA and Adjusted EBITDA calculat ions may vary among ent it ies, so our computat ion may not be comparable to measures used by other companies.



3535

CRESTWOOD MIDSTREAM PARTNERS LP (FORMERLY INERGY MIDSTREAM, L.P.) Full Year 2014 Adjusted EBITDA and Distributable Cash Flow Guidance

Reconciliation to Net Income (in millions) (unaudited)

Net income $90 - $110 Interest and debt expense, net $120 Depreciation, amortization and accretion $230

Adjusted EBITDA $440 - $460 Cash interest expense (a) ($100) Maintenance capital expenditures (b) ($20) Distributable cash flow attributable to CMLP $320 - $340

(a) Cash interest expense is book interest expense less amortization of deferred financing costs plus bond premium amortization. (b) Maintenance capital expenditures are defined as those capital expenditures which do not increase operating capacity or revenues from existing levels.



3636

CRESTWOOD EQUITY PARTNERS LP (FORMERLY INERGY, L.P.) Full Year 2014 Adjusted EBITDA and Distributable Cash Flow Guidance

Reconciliation to Net Income (in millions) (unaudited)

Net income $115 - $140 Interest and debt expense, net $135 Depreciation, amortization and accretion $240

Adjusted EBITDA $490 - $515 Cash interest expense (a) ($115) Maintenance capital expenditures (b) ($25) Public Crestwood Midstream LP unitholders interest in CMLP distributable cash flow (c) ($285) - ($305) Distributable cash flow attributable to CEQP (d) $65 - $70

(a) Cash interest expense less amortization of deferred financing costs plus bond premium amortization plus or minus fair value adjustment of interest rate swaps. (b) Maintenance capital expenditures are defined as those capital expenditures which do not increase operating capacity or revenues from existing levels. (c) Crestwood Midstream distributable cash flow less incentive distributions paid to the general partner and the public LP ownership interest in Crestwood

Midstream. (d) Distributable cash flow is defined as Adjusted EBITDA, less cash interest expense, maintenance capital expenditures, income taxes, deficiency payments

(primarily related to deferred revenue), and public Crestwood Midstream LP unitholders interest in CMLP distributable cash flow. Distributable cash flow should not be considered an alternative to cash flows from operating activities or any other measure of financial performance calculated in accordance with generally accepted accounting principles as those items are used to measure operating performance, liquidity, or the ability to service debt obligations. We believe that distributable cash flow provides additional information for evaluating our ability to declare and pay distributions to unitholders. Distributable cash flow, as we define it, may not be comparable to distributable cash flow or similarly titled measures used by other corporations and partnerships.

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