crestwood investor presentation jan 2017

Presentation TitlePresentation Subtitle

Crestwood Midstream Partners LP Crestwood Equity Partners LP

Connections for America’s Energy™

™




™




™

1/6/2017




™




™Connections for America’s Energy™

™

Investor Presentation

January 2017

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

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, assumptionsand expectations of Crestwood’s management, the matters addressed herein are subject to numerous risks anduncertainties which could cause actual activities, performance, outcomes and results to differ materially from thoseindicated. Such forward-looking statements include, but are not limited to, statements about the benefits that may resultfrom the merger and statements about the future financial and operating results, objectives, expectations and intentionsand other statements that are not historical facts. Factors that could result in such differences or otherwise materially affectCrestwood’s financial condition, results of operations and cash flows include, without limitation, the possibility thatexpected 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 extentand success of drilling efforts, as well as the extent and quality of natural gas and crude oil volumes produced withinproximity of Crestwood assets; failure or delays by customers in achieving expected production in their oil and gasprojects; 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, includingsuppliers, contractors, operators, processors, transporters and customers; the ability of Crestwood to consummateacquisitions, successfully integrate the acquired businesses, realize any cost savings and other synergies from anyacquisition; 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 andpermits, the ability of Crestwood to control the costs of construction, including costs of materials, labor and right-of-wayand other factors that may impact Crestwood’s ability to complete projects within budget and on schedule; the effects ofexisting and future laws and governmental regulations, including environmental and climate change requirements; theeffects of existing and future litigation; and risks related to the substantial indebtedness, of either company, as well asother factors disclosed in Crestwood’s filings with the U.S. Securities and Exchange Commission. You should read filingsmade by Crestwood with the U.S. Securities and Exchange Commission, including Annual Reports on Form 10-K and themost recent Quarterly Reports and Current Reports for a more extensive list of factors that could affect results. Readersare cautioned not to place undue reliance on forward-looking statements, which reflect management’s view only as of thedate made. Crestwood does not assume any obligation to update these forward-looking statements.

Company Information

2

Forward-Looking Statements

Contact Information

Corporate Headquarters700 Louisiana Street

Suite 2550

Houston, TX 77002

(1) Market data as of 1/4/2017. (2) Unit count and balance sheet data as of 9/30/2016.

Crestwood Equity Partners LP

NYSE Ticker CEQP

Market Capitalization ($MM)(1,2) $1,796

Enterprise Value ($MM)(2) $4,000

Annualized Distribution $2.40

Investor [email protected]

(713) 380-3081

No IDRs

Corporate Structure


Key Investor Highlights

3


Key Investor Highlights

4

• 2016 guidance on-track

• Focused growth strategy

• Low-cost partnership

• Strong balance sheet

• Strong distribution coverage

• Significant insider ownership

$435MM - $465MM 2016E Adjusted EBITDA(1)

<4.0x 2016ELeverage Ratio

1.8x Q3:16 Coverage Ratio; 1.5x Fully-Diluted

No GP IDRs; OPEX and G&A down 11% 2015/16(2)

~32% LP units; alignment of interest with LP’s

Delaware-Permian, Marcellus/Utica, Bakken

(1) Please see accompanying tables of non-GAAP reconciliations.(2) Year-to-date 2016 O&M and G&A net of unit based compensation

and other significant costs, compared to year-to-date 2015.


Strong Q3 2016 Results Demonstrates Commitment to Strong Balance Sheet and Distribution Coverage

5

Significant O&M and G&A Cost Savings

SubstantialDeleveraging

Sustainable Distribution

4.0xLeverage Ratio

1.8xCoverage Ratio

$600MMAvailable Liquidity(3)

86%Cash Flow Margin(2)

2016 GOALS

(1) Year-to-date 2016 O&M and G&A net of unit based compensation and other significant costs, compared to year-to-date 2015.

(2) Cash flow margin is calculated by dividing Adj. EBITDA into Net Revenue.

(3) Calculated as borrowing capacity pursuant to Crestwood’s financial leverage covenant of 5.5x. Crestwood has $1.5Bn of commitments available under its revolving credit facility.

Streamline & Solidify Base Business

$21MMYTD Cost Reduction(1)

Q3 2016 RESULTS


Focused Growth Strategy

6Source: Baker Hughes and DrillingInfo. Note: Rig map reflects all active rigs (i.e. vertical, directional, and horizontal trajectory).

• Focused on Crestwood’s three core areas– Delaware Permian, Northeast

Marcellus and Bakken – 2017/18 projects leveraging

existing assets • Building backlog of high

quality future growth opportunities− Capital efficiency a top

priority− Strong counterparties; solid

fundamentals & contracts• Current projects expected to

deliver accretive DCF in FY 2018– Emerging 5 year growth

profile positions CEQP well in small/mid-cap space

Crestwood commercial teams building backlog of growth projects in high activity areas; regional JV’s structured to be more competitive and help finance projects

Northeast Marcellus Gas• Future Supply growth required for

growing NE demand

• Stagecoach JV positioned to capture required infrastructure growth

Delaware Permian• Most economic / prolific crude oil basin

in US

• Developing 3-product gathering opportunities for major producers

Bakken Shale• Continued drilling in most economic

acreage in the play (FBIR)

• Optimizing / expanding assets for production growth; potential for new service offerings on Arrow footprint (gas processing / NGL handling)

Future growth in the Delaware Permian, Northeast Marcellus and Bakken will drive meaningful long-term value uplift for investors

Connections for America’s Energy™ ™™ ™™ ™ 7

Long-Term Outlook: Portfolio Positioned for Growth

Stabilized portfolio for 2017; increasing inventory of high quality growth projects drive DCF growth beginning in 2018

• 2016/2017 execution drives de-risked base portfolio; stable cash flow outlook– New contracts at Barnett and PRB Niobrara– Repositioning COLT as long-term crude oil hub

• Focused new investments drive future growth– Delaware Permian, Bakken and Northeast Marcellus – Strong joint venture relationships with First Reserve, Con Edison and Shell(1)

2016 2017 2018

• Deleveraged / de-risked

• Captured new growth projects in DP and Bakken

• Formed strategic joint ventures

• Trough cash flow; Maintain strong distribution coverage

• Execute growth projects under construction / placed-in-service in DP and Bakken

• Cash flow growth from DP and Bakken project accretion

• Northeast expansion (MARC II)

(1) Equity option to purchase up to a 50% interest in the Nautilus system through September 1, 2017.

Repositioning Execution DCF Growth


Commercial Update

8


Long-Term Growth PotentialMarcellus Shale – Northeast Gas Markets

• Abundant, world class supply resource with steady growing Northeast natural gas demand

• Recent termination of NED project and delay in Constitution project positions Crestwood’s Northeast assets at the heart of likely, future regional infrastructure build-out

• Partnership with Con Edison, the Northeast’s single largest demand customer, positions Crestwood to capture incremental opportunities

Marcellus Opportunity

Crestwood’s Existing Assets Located Around Basin’s top EURs

Northeast Natural Gas Demand Fundamentals Remain Steady and Robust

Stagecoach JVService Area

Crestwood SW Marcellus System

Map and Chart Source: Wood MacKenzie.

-

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

NE

Nat

ural

Gas

Dem

and

by S

ecto

r (B

cf/d

)

Residential Commercial Industrial Power Transport Other

+2.7 Bcf/d Increase in NE Demand


Stagecoach Joint Venture with Con Edison

(1) Con Edison to receive 65% / 65% / 60% of JV distributions for first 3 years; 50:50 thereafter.

• On June 3, 2016, Crestwood and Con Edison closed on the formation of Stagecoach Gas Services LLC

− Con Edison contributed $975 million (~13x current EBITDA) for 50% interest(1)

− 50:50 future capital contributions and governance

− Crestwood serves as operator

• Crestwood and Con Edison commercial teams actively marketing and evaluating new investment opportunities

• Con Edison provides insight into Northeast gas demand markets and potential storage and pipeline opportunities

Joint Venture Highlights

John McAvoy , Chairman, President and CEO, of Con Edison and Bob Phillips, Chairman, President and CEO, of Crestwood, along with members of both management teams, rang the NYSE closing bell to celebrate the formation of Stagecoach Gas Services LLC

-- November 9, 2016


Northeast Gas Demand Growth

• Increasing Gas Prices: Producers to start completing significant DUC inventory

• Improving Market Demand:

− Natural gas hit an all-time peak >40 Bcfd in power plant burn in Q2:16

− 10,200 MW of New Gas Fired PowerGen within 60 miles of Stagecoach Assets

• Project Cancellations: Constitution Pipeline delay and cancellation of NED Pipeline project increases customer demand for MARC II project

Proposed MARC II Project

Current Opportunities

Strong Regional Fundamentals

• MARC II: Currently conducting joint discussions with customers

• New interconnects with local distribution companies and area power generation facilities

The Northeast region is the largest US gas supply base and the best potential for long-term demand growth

MARC I

North/South

Steuben

Thomas Corners

Seneca Lake

Crestwood East Pipeline

Stagecoach

Total New Market Demand for

Northeast Gas of 2.2 – 2.4 Bcfd by

2019

= Stagecoach Storage and Interconnects

PA

NY

CON EDISON SERVICE AREA


Long-Term Growth PotentialBakken and Three Forks Shale – Williston Basin

• Crestwood’s Arrow system is located in the heart of the best Bakken and Three Forks acreage

• Development of COLT as hub facility with significant market connectivity provides margin opportunities

− West Coast and East coast refiners will remain committed to CBR for a portion of their feedstock

− Widening of spreads increases demand for COLT services and Crestwood optimization potential

Crestwood Arrow System

Crestwood COLT Hub

Bakken Opportunity

Crestwood’s Existing Assets Located In Premium Acreage

Bakken Oil Production Expected to Rebound Over Next 10 Years


0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Bakken

Oil Prod

uctio

n (Bbls/d)

10-YR Growth = +39%CAGR = +4%


0

25

50

75

100

125

Q4:14 Q1:15 Q2:15 Q3:15 Q4:15 Q1:16 Q2:16 Q3:16 Current

Gathe

ring Vo

lumes

(Mbo

e/d)

Crude Oil Natural Gas Water

$0

$5

$10

$15

$20

$25

Q4:14 Q1:15 Q2:15 Q3:15 Q4:15 Q1:16 Q2:16 Q3:16

Adjusted

EBITD

A ($MM)

Bakken Arrow Gathering System

13

Tier 1 acreage dedication with substantial long-term growth through system build out

Located in the Core of the Bakken Shale

• >1,500 estimated future drilling locations

• <40% of Bakken and <10% of Three Forks locations have been drilled in proximity of the Arrow System

• Halcón restructuring completed in September 2016; ~10 Bbls/d shut-in volume returned to the system

• 25 new wells connects expected in fourth quarter 2016

• New drilling significantly economic on Arrow at current strip

(1) Natural gas converted to barrels at 6:1.

(1)

Arrow Growth 2014-16


MEADOWLARK GATHERING SYSTEM

ENBRIDGE PIPELINE

TESORO PIPELINE

TESORO PIPELINE

BAKKENLINK PIPELINE

HILANDPIPELINE

HILAND PIPELINE

TESORO PIPELINE

ARROW CENTRAL DELIVERY POINT

COLT HUBDRY FORK

Crude Services

• Transitioning from primarily a Crude by Rail (CBR) loading facility into the primary hub for Bakken crude oil

• ~350,000 Bbls/d inbound pipeline connections and truck racks; 1.2 MMBbls of storage capacity

• Significant market connectivity to Enbridge, Tesoro, DAPL and rail

• Buyers and sellers utilize storage for aggregation, operational requirements, market liquidity and optionality and contango markets

• CBR expected to compete for barrels out of the basin as rail transloading operators and railroads lower pricing to compete with pipeline competition

Colt Hub: New Strategy Promotes Connectivity

Colt DAPL Connection

DAPL connection expected to attract new customers with committed DAPL capacity and new barrels for potentially premium net-back markets

High Quality Customer Base

Proposed Dakota Access Pipeline (DAPL) connections

Overview

COLT Hub remains a critical market hub for producers, marketers and refiners; ~25% of 2016 margin earned from non-rail hub services(1)

ARROW GATHERING SYSTEM

(1) Non-rail hub services include storage fees, COLT Connector pipeline fees and inbound / outbound pipeline and trucking fees.


Long-Term Growth PotentialDelaware-Permian Basin

• Permian Basin currently offers leading industry E&P economics; ~40% of current US rig count are operating in the Permian(1)

• Delaware-Permian region requires substantial wellhead infrastructure to support new supply development in current cycle

• Crestwood’s focus area offers producers breakeven economics of $30-$37/barrel

CEQP / FRC Focus Area

Crestwood Willow Lake System

Crestwood’s Expanding Footprint Supported by Best Domestic Economics

Permian Oil Production Expected to Double Through 2025

Delaware-Permian Opportunity


0

500

1,000

1,500

2,000

2,500

3,000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Perm

ian Oil Prod

uctio

n (Bbls/d)

10-YR Growth = +116%CAGR = +9%

(1) Baker Hughes US rotary rig count as of 12/30/2016.


Shell Nautilus Gas Gathering System

16

Crestwood is building a greenfield natural gas gathering system to support SWEPI’s development activity in Loving and Ward counties, TX

Proposed System MapOverview• Long-term gas gathering agreement with SWEPI LP

(“SWEPI”), a subsidiary of Royal Dutch Shell plc

• 100,000 acreage dedication across Loving and Ward counties, TX

– Highly prolific stacked acreage targeting the Wolfcamp A - D, Bone Springs and Avalon formations

– Over 400 potential drilling locations(1)

– $30-$35/bbl WTI breakeven economics(2)

• Initial system designed to gather ~250 MMcf/d

– 194 miles of low pressure gathering lines; 36 miles of high pressure trunklines

– Additional services: compression, dehydration, and liquids handling services

• Tiered fixed-fee contract structure

Nautilus Project Timeline

In-Service Date

Signed Agreement

w/ Shell

Project DevelopmentFinalizing Right-of-Ways, Engineering, Surveys and

Procurement

September 2016 October/ November 2016 December 2016 – June 2017 July 2017

(1) Assuming 250 acre spacing.(2) Source: Tudor, Pickering, and Holt. After tax rate of return

of 10% in the Wolfcamp on a well-level returns basis.

Construction


Delaware-PermianExpansion Projects Continue Development Progress

17

Crestwood is expanding its footprint in the heart of the Delaware-Permian Basin, the most active shale play in the US

Other Opportunities

• In final negotiations on integrated gas, condensate, and water gathering system

• 600 miles of pipelines spanning over 400,000 acres• Full development to include 109,200 of horsepower from 65

compression units at 8 centralized compressor stations• Orla Crude & Condensate Terminal w/ storage, condensate

stabilization, truck loading/unloading, and pipeline connections

“RIGS” 3-Stream Gathering System

Current Opportunity Set

• Multiple bolt-on wellhead gathering opportunities surrounding the RIGS System

• Gas processing expansions for Willow Lake, RIGS, and surrounding systems

• Delta Pipeline: ~180 mile, 200 MBbls/d condensate pipeline header from Orla to multiple outlets providing access to Cushing, Houston, & Corpus Christi

Willow Lake Expansion• Expanded processing capacity to 50 MMcf/d; currently at

capacity• Current annual run-rate EBITDA of $15 million; 4.5x build

multiple• 41 new wells dedicated to be completed in 2016/2017• Projects: Dublin Ranch to Willow Lake connector, RJT skid,

upsized interconnects for increased residue take-away options

“RIGS”: 3-StreamGathering

System

“RIGS” = Reeves Infield Gathering System.

Orla Terminal

Willow Lake

Nautilus System


PRB Niobrara Update: New Chesapeake Contract

18

CHK PRB Net Production Potential

Source: Chesapeake Energy 2016 Analyst Day Presentation.

New Technology and Completion Techniques Reveal Multiple Stacked Potential

• Crestwood and Williams replaced the Buckinghorse plant and Jackalope gathering system cost of service contract with Chesapeake Energy

• New 20-year fixed fee contract includes minimum revenue guarantees for 5 – 7 years

• Baseline future cash flow of ~$25 million; Any new development offers upside

• Chesapeake plans to add 1 to 2 rigs beginning in 2017

• Potential to grow production to more than 100,000 boe/d over the next five to seven years

Overview

New contract will allow Chesapeake to accelerate development plans and achieve full potential of PRB Niobrara acreage

730KEquivalent Stacked

Acres

2,600Remaining Drilling

Locations

$35 - $45Per Barrel Breakevens

1.7BBoeNet Recoverable

Resources


$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

• BlueStone Natural Resources II (NGP affiliate) closed the acquisition of Quicksilver’s Barnett Shale properties in April 2016

• Crestwood & BlueStone enter into new 10-year agreement

– Fixed-fee and percent of index fee structure for both Natural Gas and NGLs

– Providing significant upside as commodity prices rebound

– Accretive to 2016 guidance

• BlueStone has returned all shut-in wells to production and agreed to not shut-in or choke back production for economic purposes through the end of 2018

Barnett Update: BlueStone G&P Agreement

19

Crestwood executed 10-year agreement with BlueStone completely removing Crestwood from Quicksilver bankruptcy process

Overview Barnett Gathering Volume Growth

Increased volumes combined with fixed-fee/percent of index contract structure drive cash flow outperformance

April 15th: BlueStone Agreement

YTD Natural Gas Prices

250

275

300

325

350

375

Q2:15 Q3:15 Q4:15 Q1:16 Q2:16 Q3:16

Gathe

ring Vo

lumes (M

Mcf/d)

BlueStone Begins System Reactivation

System wide shut-ins


Financial Review

20


2016 Financial Update

21

Crestwood 2016 outlook affirmed for YTD 2016 results and the close of the Con Edison joint venture

On-track to Deliver 2016 Guidance

Adjusted EBITDA

Distributable Cash Flow

Distribution Coverage Ratio

2016E Leverage Ratio

Growth Capital

Maintenance Capital

1.6x – 1.8x

<4.0x

$50 million - $75 million

$16 million - $18 million

(1) Please see accompanying tables of non-GAAP reconciliations.

$435 million - $465 million(1)

$275 million - $305 million(1)


Sustainable Distribution Provides Attractive Yield

22

Preferred stock going cash pay in Q3 2017

COLT re-contracting risk; Continued softness in CBR market

Reduced activity in G&P and trucking assets

Potential producer counterparty risk in lower-for-longer environment

Distribution policy appropriately addresses potential risks to cash flows

$0.60Quarterly Distribution

per unit

$2.40Annual Distribution

per unit

Attractive Yield Key Attributes

2016E

Distribution per Unit $2.40

Coverage Ratio ~1.7x

Coverage Ratio (100% cash pay, net preferred cash payment) ~1.4x

• Conservative and sustainable in lower-for-longer commodity price environment

• Provides strong visibility to growth as commodity prices improve

• Provides best-in-class financial position to drive reversion to more normalized equity yield

Strong distribution coverage allows Crestwood to reallocate internally generated cash flow for further deleveraging, future expansion opportunities

9.2%Current Distribution

Yield(1)

(1) Current yield as of 1/4/2017.


Actuals Actuals($ millions) Q4 15 Q3 16

Cash $1 $1

Revolver $735 133Senior Notes 1,800 1,475Other Debt (2) 9 6Total Debt $2,544 $1,614

Total Leverage Ratio 4.82x 4.03x

Top-Tier Balance Sheet and Coverage Ratio

23

1.7x

0.4x

0.6x

0.8x

1.0x

1.2x

1.4x

1.6x

1.8x

CEQ

P2

01

6E

MLP

A

MLP

B

MLP

C

MLP

D

MLP

E

MLP

F

MLP

G

MLP

H

MLP

I

Selected MLP Peers (3)

• >$1.0 billion of debt repayment in 2016 provides substantial balance sheet strength and liquidity

– $975 million from Con Edison joint venture

– Significant retained excess DCF

• Top-tier leverage and distribution coverage

– Leverage of 4.03x as of Q3 2016

– Q3 2016 coverage of 1.8x(1)

LeveragePositioning Crestwood for Strength

3.9x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

MLP

1

MLP

2

CEQ

P2

01

6E

MLP

3

MLP

4

MLP

5

MLP

6

MLP

7

MLP

8

MLP

9

2016E Leverage Ratios (4) 2016E Distribution Coverage (5)

Cash pay coverage ratio(1)

(1) Coverage of 1.8x assumes preferred distribution paid-in-kind. Coverage of 1.5x if paid in cash.(2) Includes capital leases.(3) Select MLP peers include DPM, ENBL, ENLK, ETP, OKS, SMLP, TRGP, WES, WPZ.(4) 2016E Debt / 2016E EBITDA.(5) Peer coverage based on broker 2016 estimates for LP distribution coverage.


–

$200

$400

$600

$800

2016 2017 2018 2019 2020 2021 2022 2023

• Prudent capital spending profile– 2016E growth capital of $50 - $75 MM– Scalable JV project opportunities in 2017/18+

• Utilize joint venture relationships to fund growth– Stagecoach JV (Marcellus) – Con Edison

Transmission– Delaware-Permian JV (West Texas) – First

Reserve XIII and potentially Shell (1)

– Tres Palacios JV (South Texas) – Brookfield Infrastructure

• No near-term maturities; attractive long-term capital – $1.5 BB senior notes; 6.00%-6.25% coupon– Next senior note maturity 2020

Financing Our Long-Term Growth Strategy

24

Debt Maturities

No near-term debt maturities

RCF

6.00%Notes

6.125%Notes

6.25% Notes

($MM)

Maintaining low leverage and strong liquidity allows Crestwood to reallocate internally generated cash flow for future expansion opportunities while maintaining strong balance sheet

Strong strategic relationships eliminate need to access capital markets

Strong Strategic/Financial Partners

(1)

(1) Equity option to purchase up to a 50% interest in the Nautilus system through September 1, 2017.


The Crestwood Investment Opportunity

25

Focused on aggressively executing growth opportunities while maintaining financial strength

• Delaware-Permian gathering expansion projects with First Reserve

• Northeast pipeline projects around existing assets with Con Edison

In the meantime…

• Crestwood is well-positioned to deliver attractive yield to investors(1)

– CEQP Current Yield = 9.2%; Peer Average = 8.1%

– CEQP Coverage Ratio = 1.7x; Peer Average = 1.1x

– CEQP Leverage Ratio = <4.0x; Peer Average = 4.2x

• Diversified business mix and strong contract portfolio

• No incentive distribution rights

• Assets leveraged to volume growth with commodity price improvement

• Reversion to Peer Group / Alerian yield provides significant upside for units

Execution Drives Significant Upside Return Opportunity

(1) Current yield data as of 1/4/2017. Coverage ratio and leverage ratio data are full-year 2016 estimates per industry research reports.


Appendix

26


CEQP Non-GAAP Reconciliations

27

(in millions, unaudited) 2016 2015 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 3rd QtrEBITDANet income (loss) 3.0$ (37.1)$ (93.7)$ (1,402.4)$ (623.4)$ Interest and debt expense, net 27.5 34.3 36.1 35.4 35.7Loss on modification/extinguishment of debt — (10.0) — 0.2 2.7Provision (benefit) for income taxes 0.2 — — (1.2) (0.3)Depreciation, amortization and accretion 50.3 64.4 62.3 75.6 75.5

EBITDA (a) 81.0$ 51.6$ 4.7$ (1,292.4)$ (509.8)$ Significant items impacting EBITDA:

Unit-based compensation charges 4.1 4.8 4.5 4.1 3.9(Gain) loss on long-lived assets, net 2.1 32.7 — 817.3 2.3Goodwill impairment — — 109.7 515.4 609.9(Earnings) loss from unconsolidated affiliates, net (13.4) (6.2) (6.5) 72.0 (2.8)Adjusted EBITDA from unconsolidated affiliates, net 21.7 10.6 9.1 6.9 6.2Change in fair value of commodity inventory-related derivative contracts 7.5 3.5 (2.7) (5.3) 8.1Significant transaction and environmental related costs and other items 0.5 9.5 1.2 0.9 15.7

Adjusted EBITDA (a) 103.5$ 106.5$ 120.0$ 118.9$ 133.5$

Distributable Cash FlowAdjusted EBITDA (a) 103.5 106.5 120.0 118.9 133.5Cash interest expense (b) (25.6) (32.5) (34.4) (33.5) (33.7)Maintenance capital expenditures (c) (1.1) (3.3) (4.5) (10.0) (4.1)(Provision) benefit for income taxes (0.2) — — 1.2 0.3Deficiency payments 1.9 3.7 1.5 (0.9) (0.6)Distributable cash flow attributable to CEQP 78.5$ 74.4$ 82.6$ 75.7$ 95.4$ Distirbutions to Niobrara Preferred (3.8) (3.8) (3.8) (3.8) (3.8) Distributable cash flow attributable to CEQP common (d) 74.7$ 70.6$ 78.8$ 71.9$ 91.6$

CRESTWOOD EQUITY PARTNERS LP Reconciliation of Non-GAAP Financial Measures

(a) EBITDA is defined as income before income taxes, plus debt-related costs (net interest and debt expense and loss on modification/extinguishment of debt) and depreciation, amortization and accretion expense. In addition, Adjusted EBITDA considers the adjusted earnings impact o f our unconsolidated affiliates by adjusting our equity earnings or losses from our unconsolidated affiliates fo r our proportionate share of their depreciation and interest. Adjusted EBITA also considers the impact of certain significant items, such as unit-based compensation charges, gains and impairments o f long-lived assets and goodwill, gains and losses on acquisition-related contingencies, third party costs incurred related to potential and completed acquisitions, certain environmental remediation costs, certain costs related to our 2015 cost savings initiatives, the change in fair value of commodity inventory-related derivative contracts, and o ther transactions identified in a specific reporting period. The change in fair value of commodity inventory-related derivative contracts is considered in determining Adjusted EBITDA given that the timing of recognizing gains and losses on these derivative contracts differs from the recognition of revenue for the related underlying sale of inventory that these derivatives relate to . Changes in the fair value of o ther derivative contracts is not considered in determining Adjusted EBITDA given the relatively short-term nature of those derivative contracts. EBITDA and Adjusted EBITDA are not measures calculated in accordance with 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.

(b) Cash interest expense less amortization o f deferred financing costs plus bond premium amortization plus or minus fair value adjustment of interest rate swaps.

(c) M aintenance capital expenditures are defined as those capital expenditures which do not increase operating capacity or revenues from existing levels.

(d) Distributable cash flow is defined as Adjusted EBITDA, less cash interest expense, maintenance capital expenditures, income taxes, and deficiency payments (primarily related to deferred revenue). Distributable cash flow should not be considered an alternative to cash flows from operating activities or any other measure o f financial perfo rmance 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 fo r evaluating our ability to declare and pay distributions to unitho lders. Distributable cash flow, as we define it, may not be comparable to distributable cash flow or similarly titled measures used by o ther corporations and partnerships.


CEQP Non-GAAP Reconciliations

28

CRESTWOOD EQUITY PARTNERS LP Full Year 2016 Adjusted EBITDA and Distributable Cash Flow Guidance

Reconciliation to Net Income (in millions) (unaudited)

Net income $15 - $45 Interest and debt expense, net 126 - 128 Depreciation, amortization and accretion 260 Unit-based compensation charges

15 Earnings from unconsolidated affiliates

(40) - (45) Adjusted EBITDA from unconsolidated affiliates

57 - 62

Adjusted EBITDA $435 - $465 Cash interest expense (a) (119) - (121) Maintenance capital expenditures (b) (16) - (18) Other (10) - (11)

Distributable cash flow (c) $290 - $320

Distributions to Crestwood Niobrara preferred (15)

Distributable cash flow attributable to CEQP common unitholders $275 - $305

(a) Cash 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. (c) Distributable cash flow is defined as Adjusted EBITDA, less cash interest expense, maintenance capital expenditures, income taxes and deficiency payments

(primarily related to deferred revenue). 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.

crestwood investor presentation jan 2017

Investor Relations