crestwood mlpa 2017 annual investor conference presentation

Presentation Title Presentation Subtitle

Crestwood Midstream Partners LP Crestwood Equity Partners LP

Connections for America’s Energy ™

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5/30/2017




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™ Connections for America’s Energy ™

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MLPA Presentation

May 2017


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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

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Forward-Looking Statements

Contact Information

Corporate Headquarters

700 Louisiana Street

Suite 2550

Houston, TX 77002

(1) Market data as of 5/26/2017. (2) Unit count and balance sheet data as of 3/31/2017.

Crestwood Equity Partners LP

NYSE Ticker CEQP

Market Capitalization ($MM)(1,2) $1,701

Enterprise Value ($MM)(2) $3,937

Annualized Distribution $2.40

Investor Relations

[email protected]

(713) 380-3081

No IDRs

Corporate Structure


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Key Investor Highlights

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• Conservative 2017E guidance

• Focused growth strategy

• Low-cost partnership

• Strong balance sheet

• Strong distribution coverage

• Significant insider ownership

$360MM - $390MM 2017 Adjusted EBITDA

Long-term Leverage Ratio < 4.0x

1.2x-1.3x Long-term Coverage Ratio

No GP IDRs; OPEX and G&A down 15% 2015/16(2)

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

Bakken, Delaware-Permian, Marcellus

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


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Repositioned for Distribution Growth

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

• Execution of 2017-18 strategy positions Crestwood for resumption of distribution growth in 2H 2018 while meeting conservative leverage and coverage targets

• Accretive capital investments expanding Crestwood’s core operating areas in high-quality basins where supply-demand fundamentals are strong

– Bakken, Delaware Permian and Marcellus

– Strong joint venture relationships with First Reserve and Con Edison

2016 2017 2018

• Deleveraged / de-risked portfolio

• Captured new growth projects in DP and Bakken

• Formed strategic joint ventures in LT growth regions

• Trough cash flow from commodity cycle

• Maintain strong distribution coverage

• Build-out Delaware Permian and Bakken growth projects under construction

• Northeast expansion (MARC II)

• Increased Stagecoach contribution

• Bakken Bear Den expansions (Phase 2)

• PRB Niobrara Development

Repositioning

Execution

DCF Growth

2019+

• Nautilus gathering system

• Arrow gathering system expansions

• Bear Den West Pipeline & Processing Plant

• Orla Express Pipeline& Orla Processing Plant

• Increased Stagecoach contribution


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Focused Initiatives Lead to Value Creation

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• De-risked base portfolio; stable cash flow outlook

– Stabilized base portfolio with volume growth in 2017 across every major gathering system

– Disciplined growth strategy in the Bakken, Delaware Permian and NE Marcellus

• Improved balance sheet & access to public/private growth capital

– March 2017 bond refinancing pushes out nearest senior note maturity to 2023

– $250MM ATM fully available for funding capital projects; recently renewed CEQP WKSI shelf

– Strong financial and strategic partners in regional joint ventures

• Building impressive inventory of visible, accretive growth projects in key basins

– Delaware Permian Nautilus initial gathering system build-out in service (early) Q2 2017

– Bakken Arrow expansions underway; Bear Den Phase I processing plant in service Q3 2017

– Delaware Permian Orla processing plant / Orla Express target in service Q3 2018

– Bakken Arrow Bear Den Phase 2 plant expansion target in-service Q3 2019

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Successful execution of key initiatives will lead to substantial value generation for Crestwood unitholders over next 3 years


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Improving Fundamentals in Key Regions

6 Source: 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

– Bakken, Delaware Permian and Marcellus

– 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

Marcellus

• 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 wellhead and processing solutions for major producers

Bakken Shale

• Continued drilling in most economic acreage in the play (FBIR)

• Optimizing / expanding assets for production growth; Bear Den Processing Plant under construction

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

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiGmsGNu4zMAhXmuIMKHc6FCe8QjRwIBw&url=https://commons.wikimedia.org/wiki/File:ConEd_logo.svg&bvm=bv.119408272,d.amc&psig=AFQjCNFVY5YO8LcKrp8HdPVcS9wrz3WoLw&ust=1460665930322436


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Backlog of Announced Projects Drives Growth

Project Region Key Customer(s) 2017-2018 Capital

($MM) In-Service

Date

Nautilus System Delaware Permian

Shell $90MM/ $45MM net

to CEQP 6/30/2017

Bear Den Processing Plant - Phase 1 Bakken Arrow System Producers $115MM Q3 2017

Orla Processing Plant Delaware Permian

Multiple(1) $170MM / $10MM net to CEQP2 Q2 2018

Bear Den Processing Plant - Phase 2 Bakken Arrow System Producers $105MM Q1 2019

Incremental Annual Cash Flow Impact from Capital Projects

Current projects are expected to generate over $30 million per year in incremental

cash flow in 2018 and $75 million per year by 2020

1. Current customers include Concho, Mewbourne, Matador, Cimarex, Marathon and ExxonMobil. Significant third party customers within close proximity of the Orla Plant’s anticipated location.

2. Assumes First Reserves covers $160 million of plant capital in return for a 50% ownership in the Willow Lake gathering and processing assets.

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Bakken Growth Permian Growth


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Strong Bakken Arrow Fundamentals

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Bakken & Three Forks Breakevens

>1,500 estimated future drilling locations on Arrow System

Improved recoveries, lower wells costs and exceptional returns drive increased

permitting and drilling activity for Arrow producers

Arrow System

Sources: Wood MacKenzie used for breakeven, EUR and well

cost data. Baker Hughes rig data as of 5/26/2017.

Strong EURs and Well Costs

Bakken Rig Count Since 2016

$7MM D&C Costs

900M Barrels

Equivalent

5/27/2016: 22 rigs

Current: 45 rigs

+105%


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Arrow Producers’ Accelerate Development

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The Arrow system will be Crestwood’s largest driver of cash flow growth in 2017 and

2018 based on more wells drilled and bigger IP rates

Overview

Arrow Growth Potential

80 well connects per year through 2021 drives 10%-15% EBITDA growth CAGR

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Long-Term Volume Forecast Historical and Projected Well Connects

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Oil (MBbl/d) Water (MBbl/d) Gas (MMcf/d)

Arrow Well Connections

Only 70 new wells in CEQP’s guidance;

Producers are out pacing CEQP’s budget

26 Q1 2017

40-45 Q2 2017

100-120 FY 2017

Producer Estimates Actual • Arrow Gathering system generated ~$90MM in 2016 Adj.

EBITDA; ~$104MM of Adj. EBITDA budgeted in 2017

– Actual Mar/Apr 2017 annualized EBITDA of ~$130 MM

• Increasing system capacity in 2016-17 to accommodate producer

growth expectations over next five years

• Substantial remaining drilling inventory on acreage dedicated to the

Arrow gathering system


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• ~20 miles of new natural gas lines including the Bear Den Loop project which brings increased gas volumes to Arrow CDP for delivery to OneOk processing or Bear Den West lateral for Crestwood processing at new plant

• Loop line increases gathering capacity, minimizes flaring, improves margins and net-back for producers

• Full project in-service Q2 2017

Arrow System Expansion Projects

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Arrow system expansions nearly double capacity to support producer’s long-term

development plans and increasing well performance; ~$55 MM 2016-17 capital

projects to improve oil, gas and water services on Arrow

DAPL and Oasis Connection Natural Gas Line Expansion Water Handling Expansion

• ~35 miles of new water lines

• Install new pipe and pump station to upgrade system and bring additional water volumes into Arrow System

• New salt water disposal well

• Full project in-service Q3/Q4 2017

• DAPL Connection is ~5 miles of 16" crude pipeline from the Arrow CDP into DAPL's Johnson Corner Facility

• DAPL connection lifts producers netback and enhances market liquidity options

• Oasis Petroleum gathering system connection at Johnson Corners

• Projects currently in-service


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Greatly enhances Flow Assurance and “control of our own destiny” to drive volume growth on the Arrow System

Arrow Bear Den Processing Plant

Crestwood commenced construction of Phase 1 processing plant to support Arrow

volumes; Expected in-service Q4 2017; Phase 2 likely in 2018 as volumes ramp up

Arrow Processing Project Rationale

Project Overview

• Bear Den Processing Plant (Phase 1) is a 30 MMcf/d

RJT unit in Watford City, ND; Connects to Arrow gas

gathering system via a new 25 mile pipeline from new

Bear Den Loop system expansion

• Plant will connect to Northern Border’s residue natural

gas pipeline, ONEOK’s NGL systems as well as access

to Aux Sable’s NGL pipeline and COLT Hub’s rail

loading via Crestwood’s trucking fleet

• Phase 1 project expected to cost ~$115 MM and be in-

service by early Q4 2017; Phase 2 project estimated

to cost ~$105MM and be in-service by Q3 2018

• Crestwood purchases all oil and gas at the wellhead

from its producers; full control of processing volumes

• Attractive total project returns; Phase 1 project

accretive to DCF in 2018

Bear Den Plant Map

WBI Residue

New CEQP Bear Den West Line

Better netbacks and more reliable service for Arrow producers than existing processor and competing proposals

Improves competitive position and ability to attract incremental third parties in the area

Enables Crestwood to utilize its integrated midstream value chain with incremental volumes (MSL, Colt, Trucking)


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Strong Delaware Permian Economics

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Delaware Permian Wolfcamp Breakevens

Delaware Permian breakeven economics lead US onshore opportunity set and are highly economic in today’s commodity price environment

Strong EURs and Well Costs

Permian Rig Count Since 2016

<$7MM D&C Costs

900M Barrels

Equivalent

Sources: Wood MacKenzie used for breakeven, EUR and well

cost data. Baker Hughes rig data as of 5/26/2017.

4/29/2016: 134 rigs

Current: 362 rigs

+170%


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Building Competitive Scale in Delaware Permian

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Asset Map Asset Overview & Strategy

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

• Current Assets includes Willow Lake gathering & processing (100% owned) and Nautilus gathering & compression (50% JV owned)

1. Northern Delaware - 85 MMcf/d (1) gathering and processing capacity with existing contracts with Concho, Mewbourne, Matador, Cimarex, Marathon and ExxonMobil

2. Southern Delaware - ~250 MMcf/d natural gas gathering system for Shell (SWEPI); expected in-service June 17

• Growth Strategy includes Orla Express Pipeline (20”) and Orla Processing plant (200 MMcf/d) to connect the systems

– covers >2 million acres and the 5 most active counties in core Delaware Permian Basin

>$100 million of total Delaware Basin EBITDA potential by 2021 from identified expansion opportunities

(1) Expanding Willow Lake plant to 85 MMcf/d in 3Q 2017


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Willow Lake Gathering and Processing System

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Willow Lake gathering system and processing plant is at the center of significant development and M&A activity in the Northern Delaware-Permian (50 rigs operating)

Crestwood Delaware Basin Area Map Willow Lake System

• Willow Lake Gathering and Processing System is at the epicenter of Northern Delaware Permian development in Eddy and Lea counties, NM

– ~82 miles low pressure gathering system: current processing capacity (55 MMcf/d) is full

– Additional 30 MMcf/d RJT skid being installed to handle expected volumes in 2Q17-2Q18

• Existing acreage/well dedications with Concho and Mewbourne supported by 100,000 acre AMI around plant/system

• Recent M&A activity near/on Willow Lake system includes XTO (Exxon) purchase of Bass for ~$6 BB; Marathon purchase of BG Energy for ~$2 BB; existing contracts with both entities; working on development plans and infrastructure needs

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+44% gathering volumes +65% processing volumes

Willow Lake Volume Growth


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Shell Nautilus Gas Gathering System

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Greenfield natural gas gathering system to support Shell’s development activity in Loving and Ward counties, TX

Proposed System Map Overview

• Shell (SWEPI) Nautilus Gas Gathering System

– 20 year gathering and compression contract

– 194 miles of low pressure gathering lines; 36 miles of high pressure trunklines; initially designed to gather 250 MMcf/d

– 4 compressor stations, w/ dehydration, and liquids handling services; 196 Receipt Points

– Processing Plant connections with Bone Springs (direct), Ramsey (via Avalon Express), and Orla (via Orla Express)

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

– Currently ~5 rigs SWEPI running in area

• Tiered fixed-fee contract structure for gathering and compression

• Capex ~$90MM in 2017 ($45MM net to CEQP)

Nautilus Project Timeline

Event Status

Signed Agreement w/ Shell COMPLETED

Project Development COMPLETED

Construction COMPLETED

In-Service Date 6/2/2017


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Orla Express Pipeline & Orla Processing Plant

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Crestwood is building a super-header and 200 MMcf/d processing plant connecting Willow Lake and Nautilus gathering systems; positioned to compete across the entire primary Delaware Permian catchment area (161 Hz rigs operating)

Premier G&P Footprint in Delaware Basin Core

WES/ETP Bone Spring

Project Overview

• Construction underway on 33 miles of 20” pipeline and 200 MMcf/d cryogenic gas plant in Orla, TX

– Plant expandable to 400 MMcf/d

– Multiple takeaway options include residue interconnects with EPNG and ETP, and NGL interconnects with Targa & EPD

• Initial phase connects Willow Lake gathering to Orla Express and Orla plant to handle projected volumes from northern Delaware Permian

– Base scope capital of ~$170 million

– Targeted in-service date Q2-Q3 2018

• Expansion phase will connect the Nautilus system to Orla plant and new laterals connecting additional producers

– Expansion scope capital of $70 million

– Targeted in-service date 2H 2018 and early 2019

Orla Plant: 200 MMcf/d cryogenic gas processing

plant

Orla Express Pipeline connecting existing

Willow Lake system to new Orla gas

processing plant


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Expanding First Reserve Delaware Permian JV FR provides up-front capital on Orla Plant & Orla Express Capital

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Financing Terms for Orla Expansion Pro Forma Structure

• Crestwood to contribute the Willow Lake assets to the FR Permian JV at a value of $151 million (“Contribution Value”)

– Implies a transaction multiple of ~14x based on LTM EBITDA

– Transaction approved by CEQP conflicts committee

• FR will be obligated to fund 100% all capital requirements equal to the Contribution Value

– Initial Orla expansion project scope of ~$170 MM

– Any capital requirements thereafter will be funded 50/50

• Crestwood continues to receive 100% of all Available Cash generated by the contributed entity until earlier of Orla plant in-service date or June 30, 2018

• AMI for FR DBJV expanded to include Eddy and Lea Counties, NM (currently Culberson, Reeves, Loving and Ward Counties, TX)

• Expect to execute definitive agreements and close transaction in 2Q 2017

Crestwood Midstream Partners LP

Crestwood Infrastructure Holdings LLC

100%

50% Crestwood Permian Basin Holdings LLC(2)

Crestwood Permian Basin

LLC(3)

Crestwood New Mexico

Pipeline LLC(1)

PF Permian JV Asset Summary

Willow Lake Assets

Nautilus Assets

FR XIII Crestwood

Permian Basin Holdings LLC 50%

All Permian assets now included in Permian JV with First Reserve; Willow Lake contribution allows Crestwood to organically grow Permian footprint without

accessing the capital markets

300+ MMcf/d

Gathering Capacity on Willow Lake and Nautilus systems

285MMcf/d

Processing Capacity

360 Miles

Gathering and header lines


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23%

49%

28%

79%

13%

9%

NE Marcellus Stagecoach Gas Services JV

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Assets Map Stagecoach Overview

Stagecoach Storage Customers

Producers

Marketers

Marketers

Utility / LDCs

Producers

Stagecoach Transportation Customers

Utility/ LDCs

• Strategic 50/50 joint venture with Consolidated Edison

(“Con Edison”)

• Extensive network of FERC regulated storage and pipeline

assets located at center of prolific Marcellus dry-gas

resource play

− 2.9 Bcf/d delivery capacity; over 180 miles of pipes

− 41 Bcf storage capacity

− Firm 3-6 year contracts on pipeline and storage assets

• Con Edison provides demand market insight and regulatory

expertise

• Stagecoach generated Approximately $145 million Adjusted

EBITDA in 2016


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Increasing NE Marcellus Gas Supply Picture

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• PV-10 positive breakeven pricing approximately $2/Mcf(1)

• Long haul pipeline project cancellations have created bottleneck issues to get natural gas out of the basin

• Producers will send incremental volumes through Stagecoach assets to get to Millennium, Transco and Tennessee pipelines

• Stagecoach is a leading pipeline hub that provides producers optionality to get out of the basin

Current natural gas prices have encouraged northeast Marcellus producers to

resume capital programs in the basin that will drive natural gas production growth

Growing Volumes Benefit Stagecoach NE Producers Increasing Capital Budgets

…Which Leads to Higher Production Forecasts

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Chesapeake SWN Cabot EQT Gulfport Range Rice

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2016 2017Combined 68% Increase in Y-o-Y Capital Expenditures

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(1) Chesapeake Energy investor presentation.

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Transco Millennium Tennessee Stagecoach Storage UGI Sunbury

>35% Increase in Stagecoach Transportation Volumes


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Improving NE Gas Market; Regulatory Environment

• Improving Market Demand:

− 9.2 GW of new gas-fired power gen within 60 miles of Stagecoach assets

− ~1.1 GW of coal plant retirements of in 2017

• Regulatory Environment Progressing: Atlantic Sunrise, Rover, Northern Access, Leach Xpress and Orion Expansion receive conditional approvals

Proposed MARC II Project Current Opportunities

Strong Regional Fundamentals

• MARC II: Currently conducting joint discussions with customers; PennEast received EIS approval

• Incremental services to direct regional demand markets

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


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s (M

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agreement

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

– Contract structure provides significant upside as commodity prices rebound

• BlueStone brought 7 DUCs online in the first quarter 2017

• Active workover program designed to eliminate system declines and modestly grow volumes

• BlueStone evaluating new development and refrac opportunities

Barnett Gathering & Processing Update

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BlueStone’s workover activities and recent DUC completions drive system volume growth in 2017; 2017E Adj. EBITDA ~$60 million

Asset Overview Barnett Gathering Volume Growth

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

YTD Natural Gas Prices

BlueStone Begins System Reactivation

System wide shut-ins

April 15th: BlueStone Agreement


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• 20-year, fixed-fee gathering and

compression services w/ Antero Resources

• 140,000 acreage dedication

• System capacity of 875 MMcf/d; currently

<50% utilized

• 100 MMcf/d compression services on AM

gathering in Western Area (90% utilized)

• Four DUCs were brought online Q1 2017;

Nine additional DUCs expected in Q2 2017

SW Marcellus Gathering & Compression Update

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Gathering volumes expected to average 400 MMcf/d in 2017 as producer begins completing DUC Inventory; 2017E Adj. EBITDA ~$60 million

Asset Overview

Crestwood SW Marcellus System Supports Exceptional Resource Acreage

• Over 250 wells have been connected to Crestwood’s system – No dry holes

• Avg. 30-day IP rate of ~8.0 MMcf/d; Avg. EURs between 8.0 – 12.0 Bcf(1)

• 800+ liquid-rich (>1,100 BTU) drilling locations and 1,000+ dry gas drilling locations remain

• Growing NGL processing at the Sherwood plant with increased market takeaway capacity out of the basin

• Multiple large SW Marcellus operators hold acreage positions contiguous to Crestwood’s eastern AOD

Asset Map

East AOD Western Area

Arsenal Resources

EQT

Noble Energy

EQT SWN

Area Operators

(1) Source: Wood Mackenzie.


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Chesapeake Actively Drilling in PRB Niobrara

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CHK PRB Net Production Potential

Source: Chesapeake Energy Company Presentations.

• PRB Jackalope JV - Crestwood (50%) Williams (50%) owns 180 MMcf/d gas gathering system and 120 MMcf/d processing plant in Converse Co., Wyoming

• PRBJV entered into new 20-year fixed fee contract with Chesapeake in Jan. 2017

− Eliminated old “cost of service” model

− Adjusted G&P fees to incentivize CHK accelerated development

− Includes minimum revenue guarantees for 5 – 7 years ensuring return of capital on prior capex

• Chesapeake is currently drilling in the Turner, Parkman, Mowry and Sussex formations in addition to Niobrara

• Current gas volumes at ~60 MMcf/d up from 46 MMcf/d from FY 2016

• Recent Turner test at 2,560 Boe/d with 78% oil cut

• Recent Niobrara DUC’s brought on at 1,720 Boe/d with ~50% oil cut

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

Overview

New G&P contract allows Chesapeake to accelerate development plans and achieve full potential of PRB Niobrara acreage; 2017E Adjusted EBITDA ~$25 MM

388K Dedicated Acres

2,600 Remaining Drilling

Locations

Chesapeake is currently running 2 rigs on the Jackalope system and one dedicated frac crew; expect to go to 3 rigs in late 2017 or early 2018


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NGL Marketing benefits from NE NGL growth

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Crestwood’s is a leading marketer for Marcellus/Utica producers, processors and

fractionation through truck, rail, storage and terminal assets; ME2 pipeline capacity

adds export ability to local/regional sales; 2017E Adj. EBITDA ~$60 MM(1)

Customers

Crestwood’s Assets

Macro-Drivers That Create Opportunity for Margin

Crestwood sources product two ways: 1) Upstream producers, processors and

fractionators

2) Downstream refiners, retailers, petrochem

Seasonal Spreads/Inventory Cycle Heating Degree Days (“HDDs”)

Domestic NGL Supply Growth

• Significant NGL storage and terminal assets:

- 2.8 MMBbl of storage capacity (primarily Marcellus/Utica)

- 10 trucking and rail terminals

• Significant NGL transportation fleet:

- +500 NGL truck/trailer units

- +2,100 NGL railcars

• Pipeline capacity to domestic and international markets, including waterborne exports (TEPPCO, Dixie, Mariner East 2)

PADD 1 Supply/Demand Outlook

• Propane supplies est +42% to 313 MMb/d by 2019

• NE demand flat at ~170-175 MMb/d through 2019

• Exports est + 373% to 175 MMb/d by 2019

• Crestwood well positioned to maintain traditional NE local market sales while participating in margin upside through exports

(1) Annual Adj. EBITDA excludes US Salt contribution of approximately $25MM/year.


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2017 Outlook

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Marketing, Supply & Logistics

• Adjusted EBITDA: $80MM - $90MM

• EBITDA growth from recent capital investment on new terminals, West Coast expansion and US Salt

Crestwood has a bright 2017 outlook as customers increase development activity and new projects come into service in 2H 2017

Segment Outlook

Storage & Transportation


• Full-year of 35% Con Edison JV cash flow distribution of 35%(2)

• COLT Hub 2017E EBITDA of $30MM

Gathering & Processing


• New development activity across Arrow, PRB Niobrara, SW Marcellus and Permian systems

Adjusted EBITDA

Distributable Cash Flow

Distribution Coverage Ratio

2017E Leverage Ratio

Growth Capital

Maintenance Capital

1.2x – 1.4x

4.0x – 4.5x

$225 million – $250 million

$20 million – $25 million

$360 million – $390 million(1)

$200 million – $230 million(1)

(1) Please see accompanying tables of non-GAAP reconciliations. (2) In June 2018, Crestwood’s Stagecoach JV cash flow distribution increases

from 35% to 40% through June 2019, then increasing to 50%.


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Strong Balance Sheet & Liquidity

26

• Top-tier leverage position

– Q1 2017 leverage of 3.9x

– Current borrowing capacity ~$650 MM

• Committed to long-term leverage <4.0x once growth projects come online

• No near-term maturities; attractive long-term capital

• Evaluating divestitures to ensure leverage targets

Balance Sheet Positioned for Strength Current Capitalization

RCF

Preferred Equity Overview

• Crestwood has ~$636MM preferred equity outstanding–permanent equity capital

• Crestwood has option to PIK through Q3 2017; First mandatory cash payment of ~$15MM in Q4 2017

• Preferred equity holders have option to convert 1-for-10 after Q2 2017 (6.8MM common units)

– Implies in-the-money conversion price of $91.30/unit

– Investor conversion unlikely and no forced conversion

Crestwood strengthened its balance sheet by repaying approximately $1 billion of debt over the last twelve months; Crestwood will target YE 2017 leverage of 4.0x-4.5x

No Near-Term Debt Maturities

($MM)

RCF

6.25% Notes

5.75% Notes

Actuals Actuals Actuals($ millions) 2015 2016 Q1 2017

Cash $1 $2 $1

Revolver $735 $77 $382

Senior Notes 1,800 1,475 1,214

Other Debt 9 6 5

Total Debt $2,544 $1,558 $1,601

Total Leverage Ratio 4.75x 3.74x 3.92x

Issue Price Yield

2023 105.00 4.82%

2025 103.25 5.10%


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$0

$100

$200

$300

2017 DCF 2018 Portfolio CF Incremental Preferred 2018 DCF 2018 Distributions

LP Distributions

@

$2.40 / unit

Excess Coverage

Excess Coverage allows Distribution Growth in 2018

27

$0.60 Quarterly Distribution

per unit

$2.40 Annual Distribution

per unit

Strong distribution coverage in 2017 allows Crestwood to reallocate internally generated cash flow for further deleveraging and future expansion opportunities

9.9% Current Distribution

Yield

(1) Mid-point of DCF guidance. Distribution yield as of 5/26/2017.

Current Distribution

($ MM)

• Arrow expansions

• Nautilus full year in-service

• Willow Lake projects

• PRB Niobrara activity

• Interest expense savings

• Stagecoach growth and cash flow sharing step-up

DCF growth positions Crestwood to build excess coverage after preferred equity cash distributions

2017 DCF (1) 2018 Portfolio CF Growth

Incremental Preferred Cash Distributions

2018 DCF 2018 Distributions

Distribution Strategy: Maintain targeted coverage ratio of

1.2X – 1.3X with possibility of distribution increase in the 2H 2018; Factors to consider: excess coverage, investment opportunities,

leverage ratio, cost of capital


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The Crestwood Investment Opportunity

28

Focused on aggressively executing growth opportunities while maintaining financial strength

• Near-term gathering and processing growth opportunities in the Bakken and Delaware-Permian with FINANCING SOLUTION IN PLACE!

• Long-term northeast pipeline projects around existing assets with Con Edison

In the meantime…

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

– Current Yield = 9.9%; Coverage Ratio = 1.4x; Leverage Ratio = 3.9x

• 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; CASH FLOW PER UNIT GROWTH TO RESUME IN 2018

(1) Current yield data as of 5/26/2017. Coverage ratio and leverage ratio as of 3/31/2017.


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Appendix

29 29


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CEQP Non-GAAP Reconciliations

30

(in millions, unaudited) 2016

Full-Year

EBITDA

Net income (loss) (192.1)$

Interest and debt expense, net 125.1

Loss on modification/extinguishment of debt (10.0)

Provision (benefit) for income taxes 0.3

Depreciation, amortization and accretion 229.6

EBITDA (a)152.9$

Significant items impacting EBITDA:

Unit-based compensation charges 19.2

(Gain) loss on long-lived assets, net 65.6

Goodwill impairment 162.6

(Earnings) loss from unconsolidated affiliates, net (31.5)

Adjusted EBITDA from unconsolidated affiliates, net 61.1

Change in fair value of commodity inventory-related derivative contracts14.1

Significant transaction and environmental related costs and other items11.6

Adjusted EBITDA (a)455.6$

Distributable Cash Flow

Adjusted EBITDA (a)455.6

Cash interest expense (b)(117.7)

Maintenance capital expenditures (c)(13.3)

(Provision) benefit for income taxes (0.3)

Deficiency payments (7.2)

Distributable cash flow attributable to CEQP 317.1$

Distirbutions to Niobrara Preferred (15.2)

Distributable cash flow attributable to CEQP common (d) 301.9$

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 gain or loss on modification/extinguishment o f debt) and depreciation, amortization and

accretion expense. Adjusted EBITDA considers the adjusted earnings impact o f our unconsolidated affiliates by adjusting our equity earnings or losses from our unconsolidated affiliates to reflect our

proportionate share (based on the distribution percentage) of their EBITDA, excluding impairments. Adjusted EBITDA also considers the impact o f certain significant items, such as unit-based

compensation charges, gains and losses on long-lived assets, impairments of 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 historical cost savings initiatives, the change in fair value of commodity inventory-related

derivative contracts, and other 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 of deferred financing costs plus bond premium amortization.

(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 of financial performance calculated in accordance with GAAP 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 unitho lders. 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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CEQP Non-GAAP Reconciliations

31

Expected 2017 Range

Low - High

Net income

Interest and debt expense, net

Depreciation, amortization and accretion

Unit-based compensation charges

Earnings from unconsolidated affiliates

Adjusted EBITDA from unconsolidated affiliates

Adjusted EBITDA

Cash interest expense(a)

Maintenance capital expenditures(b)

Cash distribution to preferred unitholders(c)

Distributable cash flow attributable to CEQP(d)

(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 M idstream LP unitho lders interest in CM LP 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 unitho lders. 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.

$0 - $30

CRESTWOOD EQUITY PARTNERS LP

Full-Year 2017 Adjusted EBITDA and Distributable Cash Flow Guidance

Reconciliation to Net Income

(in millions, unaudited)

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

rate swaps.

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

levels.

(c) Includes cash distributions to Crestwood Niobrara preferred unitho lders and cash distributions to Class A preferred unit ho lders.

25

195

110

(50) - (55)

80 - 85

$360 - $390

$200 - $230

(30)

(105)

(20) - (25)