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  • Presentation Title Presentation Subtitle

    Crestwood Midstream Partners LP Crestwood Equity Partners LP

    Connections for America’s Energy ™

    Presentation Title Presentation Subtitle

    Crestwood Midstream Partners LP Crestwood Equity Partners LP

    Connections for America’s Energy ™

    Presentation Title Presentation Subtitle

    Crestwood Midstream Partners LP Crestwood Equity Partners LP

    Connections for America’s Energy ™


    Presentation Title Presentation Subtitle

    Crestwood Midstream Partners LP Crestwood Equity Partners LP

    Connections for America’s Energy ™

    Presentation Title Presentation Subtitle

    Crestwood Midstream Partners LP Crestwood Equity Partners LP

    Connections for America’s Energy ™

    ™Connections for America’s Energy ™

    Investor Presentation

    November 2019

  • Connections for America’s Energy ™

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    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’s 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 benefits that may result

    from the merger and 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 such differences or otherwise materially affect

    Crestwood’s financial condition, results of operations and cash flows include, without limitation, the possibility that

    expected cost reductions will not be realized, or will not be realized within the expected timeframe; fluctuations in crude oil,

    natural gas and NGL prices (including, without limitation, lower commodity prices for sustained periods of time); the extent

    and success of drilling efforts, as well as the extent and quality of natural gas and crude oil volumes produced within

    proximity of Crestwood assets; failure or delays by customers in achieving expected production in their oil and gas

    projects; competitive conditions in the industry and their impact on our ability to connect supplies to Crestwood gathering,

    processing and transportation 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 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’s control; timely receipt of necessary government approvals and

    permits, the ability of Crestwood to control the costs of construction, including costs of materials, labor and right-of-way

    and other factors that may impact Crestwood’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 Crestwood’s filings with the U.S. Securities and Exchange Commission. You should read filings

    made by Crestwood with the U.S. Securities and Exchange Commission, including Annual Reports on Form 10-K and the

    most recent Quarterly Reports and Current Reports for a more extensive list of factors that could affect results. Readers

    are cautioned not to place undue reliance on forward-looking statements, which reflect management’s view only as of the

    date made. Crestwood does not assume any obligation to update these forward-looking statements.

    Company Information


    Forward-Looking Statements

    Contact Information

    Corporate Headquarters

    811 Main Street

    Suite 3400

    Houston, TX 77002

    (1) Market data as of 11/18/2019. (2) Unit count and balance sheet data as of 9/30/2019.

    Crestwood Equity Partners LP

    NYSE Ticker CEQP

    Market Capitalization ($MM)(1,2) $2,306

    Enterprise Value ($MM)(2) $5,666

    Annualized Distribution $2.40

    Investor Relations

    [email protected]

    (713) 380-3081

    No IDRs

    Corporate Structure

  • Connections for America’s Energy


    Peer Group Leading DCF

    Growth Through Self-Funded

    3-year Capital Program

    Connections for America’s Energy

  • Connections for America’s Energy ™

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    Key Investor Highlights 2017-2019 Capital Program Drives Free Cash Flow in 2020







    Crestwood’s 5-year plan is focused on delivering increased DCF per unit

    • Well-positioned assets in low-cost basins support volume growth and enhanced margins

    • Strong track record of delivering on capital expansion projects and annual guidance targets

    • Best-in-class midstream operator for safety, employee relations, customer service, community and environmental responsibility

    • No incentive distribution rights; simplified MLP governance structure; stable GP sponsor

    • High quality, long-term management team; insiders own >30% of common LP units

    • Leads the MLP-industry in commitment to ESG Sustainability initiatives

    • Committed to 2020 leverage ratio below 4.0x and coverage above 1.8x

    • Reduced 2020 capital investments by >70% to range of $100 million - $150 million

    • Strong Y-O-Y DCF growth and Free Cash Flow allows for distribution increases and/or unit buybacks in 2020

    • Continue to self-fund 2020 growth capital program through excess cash flow, available liquidity, producer reimbursements and strategic joint-ventures

    • Evaluation of potential non-core asset divestitures additional upside to lower leverage targets

    • Major 2017-2019 expansion projects completed in Bakken, Powder River Basin, and Delaware Basin

    • ~$1 billion net capital invested to increase capacity in high growth areas driving 2020+ volume and margin growth

    • >$225+ million expected incremental EBITDA contribution from ’17-’21


    • Execution of 3-year growth strategy drives free cash flow generation in 2020

    • Bear Den II (Q3 2019) and Bucking Horse II (Q1 2020) processing plants drive a step-change in cash flow

    • Reduced capital spending in 2020 as system capacities are aligned with current customer development programs

  • Connections for America’s Energy ™

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    Third Quarter 2019 Highlights Crestwood Well-Positioned to Achieve 2019 and 2020 Objectives


    Strong Q3’19 Financial Results

    Results Highlight Value of Diversified


    Major Projects Drive 2019- 2020 Growth

    • Q3 Adjusted EBITDA of $141MM, 39% above Q3 2018

    • Robust results drive increased and tightened 2019E Adjusted EBITDA guidance of $520MM - $535MM

    • Leverage and coverage ratios of 4.2x and 1.9x, respectively


    • Bear Den II plant began commercial operations in August 2019

    • Increased FY 2019 well connect estimate to 120, a 20% increase from original guidance

    • Substantially increased produced water and gas gathering capacity

    Powder River Basin

    • Expanding Bucking Horse II plant and Jackalope system

    • Increased 2019 well connects lead to record gathering system volumes

    Delaware Basin

    • Orla I plant more competitive with improved NGL net-backs starting July 2019 which drives higher volumes; strong Q4’19 volumes expected

    Crestwood has reached an inflection point in cash flow growth and is well positioned to generate positive free cash flow in 2020

    • Completed expansion projects in the G&P segment allow for consistent volume growth in core growth basins

    • Solid S&T contribution a result of the final step-up in SGS contract

    • Outperformance in the MS&L segment drives 2019E segment EBITDA to $65MM - $75MM

  • Connections for America’s Energy ™

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    Diversified Portfolio in Multiple High-Growth Basins


    Diversified midstream portfolio with operating scale along the value chain


    Northeast Marcellus

    Powder River Basin

    Delaware Basin

    • 2,230 miles of pipeline

    • 3.5 Bcf/d gas gathering

    • 1.6 Bcf/d gas transportation

    • 1.2 Bcf/d gas processing plants

    • 76 Bcf gas storage facilities

    • 150 Mbp/d crude oil gathering

    • 180 Mbp/d crude oil rail terminalling

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