investor presentation presentation titleinvestor presentation august 2018 ... crestwood’sfinancial...

Presentation TitlePresentation Subtitle

Crestwood Midstream Partners LP Crestwood Equity Partners LP

Connections for America’s Energy™

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8/8/2018




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™Connections for America’s Energy™

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Investor Presentation

August 2018


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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

2

Forward-Looking Statements

Contact Information

Corporate Headquarters

811 Main Street

Suite 3400

Houston, TX 77002

(1) Market data as of 8/6/2018. (2) Unit count and balance sheet data as of 6/30/2018.

Crestwood Equity Partners LP

NYSE Ticker CEQP

Market Capitalization ($MM)(1,2) $2,649

Enterprise Value ($MM)(2) $5,071

Annualized Distribution $2.40

Investor Relations

[email protected]

(713) 380-3081

No IDRs

Corporate Structure


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Well-Positioned for

DCF per Unit Growth


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Key Investor Highlights We Have the Right Strategies in Place to be a Sector Leader

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EXECUTION

UNITHOLDER ALIGNMENT

FINANCIAL DISCIPLINE

SELF-FUNDED

GROWTH

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

• Well-positioned assets and strong fundamentals support volume growth

• 4%, 14% and 22% y-o-y YTD 2018 growth on oil, gas and water gathering volumes, respectively

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

• No incentive distribution rights

• Management and insiders own >30% of common LP units

• General Partner First Reserve committed ~$500MM to support CEQP growth in Delaware Basin

• Committed to long-term leverage ratio of 4.0x or below

• Strong distribution coverage of 1.2x or above

• Opportunistically managing capital structure to reduce cost of capital

• No equity required to fund $300MM-$350MM capital program in 2018

• Asset divestitures and excess cash flow used to finance growth

• Strategic joint-ventures with Shell Midstream, Williams, Con Edison and First Reserve

• High quality projects in Bakken, Delaware Basin, Powder River Basin and NE Marcellus

• Committed to accretive organic growth projects offering 5x – 7x build multiples

• ~$120MM+ expected EBITDA contribution from current projects by 2021


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First Half 2018 Drives Results and OutlookSignificant Momentum Supports 3-year EBITDA Growth Outlook

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Strong Financial Results

Best-in-class Operations

Fully integrated assets and

strong producer supply

development supports growth

Crestwood’s self-funding and integrated asset strategy drives exceptional results in the first half 2018 and strong confidence in future growth

• Q2 Adj. EBITDA of $103MM, 6% above Q2:17 and 1% above Q1:18

• 2018E Adj. EBITDA guidance tightened to $400MM to $420MM

• Leverage and coverage ratios of 4.0x and 1.3x, respectively

Bakken

• Arrow debottlenecking in-service Q3 2018; cash flow ramp beginning in Q4 2018

• 120 MMcf/d Bear Den 2 plant in service Q3 2019; Secured NGL takeaway capacity in ONEOK Elk Creek NGL pipeline

Delaware Basin

• 200 MMcf/d Orla plant placed in- service Q2 2018; Fully integrated with Willow Lake and Nautilus Systems

• Secured NGL takeaway capacity/ownership in EPIC pipeline and long-term PSA with Chevron Phillips

Powder River Basin

• Expanding Bucking Horse 2 plant and Jackalope system to 345 MMcf/d

• Combined O&M and G&A expenses reduced 13% over Q2:17

• Improved annual safety metrics results in lower insurance

• Crestwood Transportation named a 2018 CCJ Innovator of the Year


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Multiple High-Growth BasinsStrong Fundamentals Drive Midstream Infrastructure Investment

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Diversified midstream portfolio with operating scale along the value chain

• 5-Yr Growth Strategy Driven by 4 Core Growth Areas

− Bakken – 2018+

− Delaware Basin – 2019+

− Powder River Basin – 2019+

− NE Marcellus Shale – 2020+

• Remaining portfolio of assets provide stable cash flows, optimization alternatives and upside optionality

Bakken

Northeast MarcellusPowder

River Basin

DelawareBasin


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Bullish Outlook and Producer Activity Crestwood’s Assets are Located in the Right Place!

Crestwood’s growth capital investments are building scalable franchise positions in the Bakken, Delaware Basin and Powder River Basin

>50% of US onshore rigs are operating in Crestwood’s top-3 core growth areas; Crestwood is investing in all the right places!

Bakken

Permian Basin

Powder River Basin / Niobrara

Core Growth Asset Basin Crude Oil Growth Forecast Rig Count

Sources: Bakken production data per East Daley. Permian and Powder River forecasts per wall street research. Rig count data provided by Baker Hughes and DrillingInfo as of 8/3/2018.

1.3 MMBbls/dQ2:18

2.0 MMBbls/dby 2021

+55% 56+6% Y-O-Y

480+27% Y-O-Y

20+233% Y-O-Y

3.2 MMBbls/dQ2:18

5.7 MMBbls/dBy 2021+80%

0.6 MMBbls/dQ2:18

1.2 MMBbls/dby 2021+100%


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Balanced Portfolio; High Quality CustomersExcellent Diversity of Services, Customers and Markets

CEQP Contract Portfolio

88

Variable Rate Contracts

14%

Take-or-Pay and Fixed-Fee Contracts

86%

~86% of Crestwood 2018 EBITDA from take-or-pay and fixed-fee contracts;

Key assets protected from commodity volatility and volume declines

Long-Term Contract Profile With High Quality Customers(1)

2018 Forecasted EBITDA

(1) Not inclusive of all Crestwood customers.

Stable cash flows supported by fixed-fee contracts, top-tier customer base and balanced commodity exposure

G&P assets backed by 1.1 million acreage dedication; High quality producer mix

Top-tier NE Gas Storage & Transportation franchise; Largely investment grade

Diversified NGL Marketing, Supply & Logistics business

Gas Oil NGLs

Volumes by Commodity

EBITDA by Commodity

60% 25%

15%

50%

30%

20%

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0

50,000

100,000

150,000

200,000

250,000

Q12016

Q22016

Q32016

Q42016

Q12017

Q22017

Q32017

Q42017

Q12018E

Q22018E

Q32018E

Q42018E

Q12019E

Q22019E

Q32019E

Q42019E

0

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200,000

300,000

400,000

500,000

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Q12016

Q22016

Q32016

Q42016

Q12017

Q22017

Q32017

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Q12018E

Q22018E

Q32018E

Q42018E

Q12019E

Q22019E

Q32019E

Q42019E

10,000

20,000

30,000

40,000

50,000

60,000

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Q12016

Q22016

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Q12019E

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Q32019E

Q42019E

40,000

50,000

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70,000

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Q12016

Q22016

Q32016

Q42016

Q12017

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Q32017

Q42017

Q12018E

Q22018E

Q32018E

Q42018E

Q12019E

Q22019E

Q32019E

Q42019E

9

Volume Growth Drives Investments and Returns

Producer Activity Driving Volume Growth

YTD 2018 oil, gas and water gathering volumes up 4%, 14% & 22% YOY

Powder River Basin

Delaware BasinBakken - Water

Bakken – Natural GasBakken – Oil

2017-2019E +65% Growth

(1) MVCs through 2018 term; however, all current and future cash flow reflective of actual throughput and rate (no cash flow cliff).

2017-2019E +240% Growth

SW Marcellus and Barnett

SW Marcellus(1)

Barnett

10%/yr decline

5-10%/yr decline2017-2019E +170% Growth

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Q12016

Q22016

Q32016

Q42016

Q12017

Q22017

Q32017

Q42017

Q12018E

Q22018E

Q32018E

Q42018E

Q12019E

Q22019E

Q32019E

Q42019E

2017-2019E +60% Growth

0

50,000

100,000

150,000

200,000

250,000

Q12016

Q22016

Q32016

Q42016

Q12017

Q22017

Q32017

Q42017

Q12018E

Q22018E

Q32018E

Q42018E

Q12019E

Q22019E

Q32019E

Q42019E

2017-2019E +110% Growth


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$300

$350

$400

$450

$500

$550

$600

2017 2018E 2019E 2020E

Esti

mat

ed

Ad

just

ed

EB

ITD

A (

$M

M)

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High Return Projects Drive EBITDA/DCF Growth

Crestwood’s visible project backlog will drive >15% 3-yr EBITDA and DCF/unit CAGR; Near-term growth focused in the Bakken, Delaware Basin and Powder River Basin

2018 Drivers

• Arrow, Nautilus and Jackalope growth

• Bear Den Processing Plant 2

• Powder River Basin

– Jackalope system expansion

– Bucking Horse Plant 2

• Increased Stagecoach contribution

• Arrow gathering system expansions and debottlenecking


• Nautilus gathering system growth

• Orla Express and Processing Plant 1

• Increased Stagecoach contribution

2020+

• Arrow, Nautilus and Jackalope volume growth

• Orla and Bucking Horse Processing Expansions

• Northeast Marcellus expansion

• Joint-venture consolidations

Organic Projects Drive Accretive Growth

Growth Capital$300 million - $350 million

5x-7x build multiples

Est. Growth Capital(1)

$250 million - $300 million5x-7x build multiples

Guidance $400MM-$420MM

>15% Growth

>15% Growth

TBD

2019 Drivers

(1) Estimates based on projects currently underwritten in 2018.

>15% 3-YR DCF/Unit CAGR


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-20%

-10%

0%

10%

20%

30%

40%

50%

9.3x 10.0x11.1x 11.4x 11.9x 12.0x 12.4x

13.2x 13.2x 13.9x15.4x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

18.0x

Peer1

CEQP Peer2

Peer3

Peer4

Peer5

Peer6

Peer7

Peer8

Peer9

Peer10

20

19

E EV

/EB

ITD

A

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Near-term Growth Catalysts Provide Unrecognized Value

Crestwood Driving Unitholder ValueUnrecognized Value to Further Propel Valuation

Crestwood has been a leader in the sector’s transformation by checking all the right boxes for unitholder value creation

• Strong fundamentals in the areas we operate

Sub-4x Leverage and Coverage above 1.2x

NO Incentive Distribution Rights

Limited regulatory exposure

Visible, accretive growth projects

Committed to MLP structure

Crestwood Has Delivered Strong Performance

Yet Still…Offers Significant Upside With Continued Execution

Peer Group Includes: DCP, ENBL, ENLK, ETP, OKE, PAA, SMLP, TRGP, WES, and WPZ.Market trading data per NYSE Connect as of 8/6/2018.2019 EV/EBITDA data per Wall Street research as of 8/6/2018.

CEQP +44%

Peers +18%

Alerian +5%

YTD Relative Price Performance

Median = 12.2x


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Attractive Set of Near-term

Organic Growth Projects


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Bakken Growth Strategy

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Crestwood actively expanding the Arrow Gathering System and Bear Den Processing Plants as producer volume growth forecasts exceed expectations

Arrow Overview

Oil

Natural Gas

Water

• Arrow Gathering system expected to generate Adj. EBITDA of

$165MM in 2018; ~40% increase from 2017

• >1,500 drilling locations identified on dedicated acreage

• Diversified and balanced group of producers: WPX, QEP,

XTO, EnerPlus, Bruin, Rimrock, PetroShale

• 8-year weighted average contract length and Crestwood

purchases 100% of oil and gas volumes at the wellhead

• The Arrow system will be Crestwood’s largest driver of

cash flow growth in ’18/’19

3-Product Growth Strategy

• Oil gathering volumes expected to increase ~15% in 2018 based on improved well performance

• Connected to DAPL in 2017; led to significant improvement in producer net-backs

• Gas gathering volumes expected to increase ~50% in 2018 with reduced flaring

• Bear Den Plants reduce reliance on 3rd party processing, provide flow assurance and better net-backs

• Water gathering volumes expected to increase ~60% in 2018

• Significant produced water being trucked today; expanded water gathering and new SWD wells

1

2

3

Forecasted Volume Growth

80 well connects per year through 2021 drives

15-20% EBITDA CAGR

–

25

50

75

100

125

2013 2014 2015 2016 2017 2018 2019 2020 2021

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


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Arrow System Expansion Projects

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Arrow gathering and processing projects increase capacity to support long-term development plans based on improving FBIR well performance

Gathering Projects

New Oil & Water Pumps

New Compressor

Station

Bear Den Plant

Phase 1: 30 MMcf/d

Phase 2: 120 MMcf/d

SWD Expansions

Crude Gathering Water Gathering Gas Gathering Gas Processing

+50% +70% +120% +400%

2017-2019 Debottlenecking projects offer sub-4x build multiple economics

Q2 2018 Average Volumes


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Bear Den Processing Plants

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Gas Processing Overview Processing Capacity Growth Timeline

Bear Den plant phase-1

Crestwood is expanding Arrow’s processing capacity to meet producer forecasts and improve flow assurance; Bear Den Phase 2 scheduled in-service for Q3 2019

• Bear Den Processing Strategy is a two

phase solution to provide 150 MMcf/d

processing for Arrow gas volumes; focus on

reduced flaring, flow assurance and improved

net-backs

• Phase 1: 30 MMcf/d RJT unit to process

excess gas volumes previously flared or above

third-party processing contracts

– Commissioned late Q4 2017; 100% full

• Phase 2: 120 MMcf/d cryogenic plant to

process 100% of Arrow gas volumes by 2019

– Targeted in-service Q3 2019

• NGL Marketing: signed anchor shipper

agreement with ONEOK Elk Creek project

with COLT NGL by rail loading as backup

• Attractive total project returns of sub-6x;

Phase 1 project immediately accretive to

2018 DCF

0

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CEQP Bear Den - Phase 2

CEQP Bear Den - Phase 1

Third-Party Processing


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Bakken’s Full-Service Business Model

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Crestwood’s integrated Bakken franchise offers Arrow producers full-service midstream solution to ensure flow assurance and competitive pricing out of the Basin

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1 Wellhead Services - Fully Integrated G&P System

• Expanding gathering and processing capacities to meet growing producer forecasts

• Crestwood’s #1 Arrow goal is to optimize producer netbacks!!

COLT Hub and Trucking Services

• COLT Hub offers storage and crude oil and NGL rail loading to West and East Coast markets

• Crestwood’s MS&L segment optimizes crude and NGL marketing services in the Basin

• Trucking adds value services for crude and water

Premium Downstream Connectivity

• Crestwood secured agreements to move product gathered at Arrow to premium downstream markets via DAPL (Arrow and COLT Hub), Northern Border (Arrow) and Elk Creek (Bear Den) pipelines

• Pipeline agreements scaled to support Bear Den volume growth

Dakota Access (DAPL)

Elk Creek

3

Best-in-class integrated Bakken G&P system with premium downstream connectivity fully supports Arrow producers and FBIR off-set producers; Elk Creek NGL agreement integrates Crestwood’s Bakken and Powder River Basin systems


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Delaware Basin Growth Strategy

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Asset MapDelaware Basin Overview

Crestwood operates a fully integrated G&P system in the heart of the Delaware Basin through 50/50 JV with First Reserve (CPJV) and CPJV JV with Shell Midstream

• Fully integrated G&P system is supported by long-term fixed contracts and spans from Eddy County, NM to Reeves County, TX

• Current assets include the Orla cryo-plant, Willow Lake and Nautilus gathering systems, and EPIC Y-grade pipeline interest

– Total gathering capacity of 650 MMcf/d

– Total processing capacity of 255 MMcf/d

– Total Y-grade long-haul capacity of 80 MBbls/d

• Future expansion opportunities:

– Orla processing expansions; Orla 2 planning underway

– Crude oil gathering, terminalling and condensate stabilization/blending

– Produced water gathering and disposal

• Shell sold dedicated southern Ward Co. acreage to Halcon Resources in Q1 2018; Potential to accelerate build-out

• Joint venture strategy with First Reserve and Shell Midstream supports long-term growth strategy(1)

Fully integrated G&P system in the core of the Delaware Basin with a long-term NGL takeaway solution enhances competitive advantage; Crestwood pursuing incremental

undedicated third-party volumes around existing systems

Over 200K dedicated acres

X 6

X 3

(1) Crestwood and First Reserve each own 50% of Willow Lake and Orla Plant and 25% of Nautilus system; Shell Midstream owns 50% of the Nautilus system.


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Delaware Basin Full-Service NGL Solution

Crestwood’s Delaware Basin competitive advantage enhanced with recent acquisition of EPIC NGL pipeline capacity and favorable PSA with Chevron Phillips; Provides G&P customers guaranteed NGL capacity and pricing to premium Gulf Coast markets

Orla Downstream MarketingLong-term Y-grade sales agreement with Chevron Phillips at Benedum, TX; Provides greater flow assurance and improves net-backs for Orla’s customers

NGL Pipeline Capacity CPJV acquired undivided joint ownership in Orla-to-Benedum segment of EPIC Y-grade pipeline; 80 MBbls/d capacity provides Orla customers NGL takeaway capacity to favorable Gulf Coast markets

Crestwood’s Delaware Basin footprint provides customers full midstream value chain services and flow assurance in a very competitive Basin

2 3

Fully Integrated G&P System200 MMcf/d Orla cryogenic gas processing plant placed into service in July 2018; Willow Lake and Nautilus gathering systems support high quality producers in the core of the Basin

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Powder River Basin Growth Strategy

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Overview

Large-scale G&P system expansions underway driven by recent volume growth and future development activity

Powder River Basin has emerged as Chesapeake's “Oil Growth Engine”; Stacked play economics drive Chesapeake development and off-set producer activity

Chesapeake Forecasting Substantial Volume Growth in 2018+

$25/Bbl - $35/Bbl Breakeven2,780 undrilled inventory388,000 dedicated acres

CHK production volume growth exceeds previous forecasts; total volumes now expected to double by YE 2019

Source: Chesapeake Energy investor presentation.

• Strategic 50/50 JV with Williams

• Chesapeake Energy currently operating five rigs; potential sixth rig in 2019

• PRB assets to reach capacity in 2H 2018 or early 2019

− Jackalope gathering system capacity of 180 MMcf/d

− Bucking Horse plant processing capacity of 120 MMcf/d (upgraded to 145 MMcf/d in 2H 2018)

• Expanding Jackalope and Bucking Horse processing plant to 345 MMcf/d capacity by Q4 2019

• Crude opportunity in 2H18

• CEQP Niobrara JV has long-term financing partners

Recent Turner tests: − 2,886 Boe/d with 51% oil cut− 2,560 Boe/d with 80% oil cut − 1,700 Boe/d with 80% oil cut


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PRB Economics Attracting High-Quality Producers

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Third-party operators provide opportunity for incremental G&P volume growth

PRB Front and Center on Q2 Earnings

“Anadarko has established a core position of more than 300,000 gross acres…developed a play concept focused on the turner formation and drilled wells in this play, with rates >2000 BOE per day, having a greater than 80% oil cut” – Anadarko 8/2018

“We're very pleased with what we're seeing. Every [Turner] well that we bring on is really some of the higher rate of return wells that we have… later this year, we'll not only pick up a 2nd rig, We get to the 3rd rig.” – Devon Energy 8/2018

“While we currently anticipate our production will reach 38 MBbls/d by year-end, we've already increased our net oil production in the PRB by 90% year-to-date with additional growth that will come” – Chesapeake Energy 8/2018

Note: Producer logo locations are approximations of acreage positions.(1) Per Chesapeake Energy investor presentation.

Turner formation drilling

economics offer >100% RORs at

current strip pricing(1)

CHK Acreage Delineated


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• Strategic 50/50 JV with Consolidated Edison

• FERC regulated storage and pipeline assets

located at center of prolific NE Marcellus

− Connected to 5 Bcf/d supplies

• SGS rates/returns expected to be unaffected

by recent FERC ruling; majority of revenues

from market-based and negotiated rates

• Near-term growth: JV Cash Flow

− Stagecoach generated ~$135MM Adjusted

EBITDA in 2017

− June 2018/2019: Cash flow distribution to

CEQP steps to 40% and 50%, respectively

• Long-term growth potential:

− Evaluating incremental takeaway projects

out of the basin

− Current pipeline constraints and

announced projects stymied by regulatory

environment

− NE production needs an additional 3-5

Bcf/d of take-away capacity

NE Marcellus is the most prolific US gas basin; Stagecoach is strategically located to

capture infrastructure expansion opportunities from NE gas demand growth

NE Marcellus Provides Long-Term Growth Potential

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Strategic Position in NE Natural Gas MarketStagecoach Overview

Stagecoach Assets

15

14

13

12

11

10

9

8

7

Bcf/

d

NE Marcellus Gas Production Constrained in 2020+

Production – More Pipe

Production – Base Case

Production – Less Pipe

Pipeline Capacity (Base)

Pipeline Capacity (Less)

Pipeline Capacity (More)

Source: Northeast production data per BTU Analytics.

Stagecoach Assets

− 41 Bcf storage capacity

− 3.1 Bcf/d of deliverability

and 5 Bcf/d of supply access


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Balance Sheet Strength,

Disciplined Capital Allocation,

Accretive DCF Growth


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2018E Financial Outlook

Marketing, Supply & Logistics

• Adjusted EBITDA(2): $50MM - $55MM

• NGL marketing business driven by seasonal propane and butane demand in the Northeast

• US Salt divested for $225MM in 2017 at ~11x cash flow; West Coast NGL assets divested for $58MM

Segment Outlook

Storage & Transportation


• Stagecoach distribution to increase 5% in June 2018 and 10% in June 2019

• COLT Hub $10MM-$15MM cash flow contribution in 2018 and 2019

• Tres Palacios rate improvement driven by Gulf Coast LNG and Mexican gas demand

Gathering & Processing


• Arrow gathering system expansions and debottlenecking


• Nautilus gathering system growth

• Orla Express and Processing Plant 1

• SW Marcellus / Barnett modest declines

Crestwood tightened Adjusted EBITDA guidance range upward to reflect strong performance in the first half 2018 and new growth capital investments

Adjusted EBITDA

Distributable Cash Flow

Distribution Coverage Ratio

2018E Leverage Ratio

Growth Capital

Maintenance Capital(1)

>1.2x

4.0x – 4.5x

$300 million – $350 million




Note: Please see accompanying tables of non-GAAP reconciliations for Adj. EBITDA and DCF. (1) Excludes maintenance capital contribution from joint ventures expected to be $3-$5MM

net to Crestwood. (2) Segment Adjusted EBITDA excludes corporate G&A of $65MM.

REVISED

REVISED


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Self-Funded 2018E Capital Program

24(1) 2018E range of $300 million to $350 million represents growth capital net to CEQP.

• Crestwood is committed to maintaining a strong balance sheet and excess distribution coverage as it pursues organic growth projects

• Crestwood’s current capital program is fully financed with no public equity requirements to maximize project returns and DCF/unit value creation

• Growth capital will be funded by 1) reinvesting retained DCF, 2) available liquidity under revolving credit facility, 3) joint-venture partners and 4) non-core asset divestitures

2018E Growth Capital By Region

2018E Growth Capital by Quarter

Highly accretive growth projects expected to generate 5x – 7x build multiples

2018E Maintenance Capital by Quarter

Crestwood has underwritten $300MM-$350MM(1) in 2018 to expand gathering and processing capacity in the Bakken, Delaware Basin and Powder River Basin

-

$2

$4

$6

$8

$10

Q1:18A Q2:18 Q3:18 Q4:18

Bakken72%

Delaware Basin11%

Powder River16%

Other1%

-

$20

$40

$60

$80

$100

$120

$140

$160

Q1:18A Q2:18A Q3:18 Q4:18


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$0

$200

$400

$600

$800

2017 2018 2019 2020 2021 2022 2023 2024 2025

25

Strong Balance Sheet and Liquidity

Balance Sheet Positioned for Strength Current Capitalization

No Near-Term Debt Maturities

($MM)

RCF

6.25% Notes

5.75% Notes

Issue Price Yield

2023 102.50 5.2%

2025 101.50 5.4%

Crestwood is committed to maintaining a very strong balance sheet and financial flexibility; Crestwood targets YE 2018 leverage of 4.0x-4.5x

Note: Senior note price and yield data per Bloomberg as of 8/6/2018.

• Top-tier leverage position

– Q2 2018 leverage of 4.0x

– Current borrowing capacity over $600 million

– Over $1 billion of debt reduction over past 3-years

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

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

• Committed to funding 2018 and 2019 current capital program without accessing the public equity markets

Actuals Actuals Actuals Actuals($ millions) FY 2015 FY 2016 FY 2017 Q2 2018

Cash $1 $2 $1 $6

Revolver $735 $77 $318 $385

Senior Notes 1,800 1,475 1,200 1,200

Other Debt 9 6 8 6

Total Debt $2,544 $1,558 $1,526 $1,591

Total Leverage Ratio 4.8x 3.7x 4.1x 4.0x


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Key Investment Highlights

Unrecognized Value Generated by Near-term Growth Catalysts to Further Drive Value Creation for Unitholders!!!

• Solid fundamentals across diverse nationwide asset portfolio

• Long-term leverage sub-4x and coverage >1.2x

• NO Incentive Distribution Rights

• Disciplined and prudently financed capital program

• Scalable accretive organic growth projects

• Forecasted >15% 3-yr DCF/Unit CAGR


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Appendix

2727

Appendix:


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Crestwood’s Industry Recognition in 2017

Customer Service

Community Engagement

Ranked #1 in the EnergyPoint Research Customer Satisfaction Survey for 2015-2017

In 2017, Crestwood was recognized for its unwavering commitment to best in class customer service, community engagement, environmental stewardship and unitholder alignment

Unitholder Alignment

Crestwood was awarded the NDPC Excellence in Community Engagement Award for our commitment to the communities where we operate

~1/3rd common units owned by insiders; Crestwood scored #1 in Wells Fargo’s December 2017 midstream investor alignment report(1)

Environmental Stewardship Recognized by the EPA as a SmartWay

Partner, as a Company that demonstrates a standard of operations that minimizes their environmental footprint

Crestwood’s culture of excellence positions the partnership to be a responsible steward of capital and an attractive midstream investment

(1) Wells Fargo research report titled “The Midstream Alignment Scorecard.” Published on 12/5/2017. Ranking based on unit ownership, governance , safety metrics, structure and incentive compensation.

Customer Service

Unitholder Alignment Environmental Stewardship


Customer Service


Environmental Stewardship

Unitholder Alignment

https://www.ndoil.org/


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$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

0

50

100

150

200

250

300

350

400

Q1:16 Q2:16 Q3:16 Q4:16 Q1:17 Q2:17 Q3:17 Q4:17 Q1:18 Q2:18

Gat

he

rin

g V

olu

me

s (M

Mcf

/d)• Crestwood & BlueStone have 10-year

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 Update

29

BlueStone’s workover activities and recent DUC completions offset natural volume declines in 2017

Asset Overview Barnett Gathering Volumes

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

Natural Gas Prices Since 2016(1)

BlueStone Begins System Reactivation

April 15th: BlueStone Agreement

(1) Source: EIA Henry Hub Natural Gas Spot Price.

2017 Workovers Offset Natural Field Decline


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• 20-year, fixed-fee gathering and compression services with Antero Resources

• 140,000 acreage dedication; System capacity of 875 MMcf/d

• 100 MMcf/d compression services on AM gathering in Western Area (90% utilized)

• MVCs through 2018 term; however, all current and future cash flow reflective of actual throughput and rate (no cash flow cliff)

• 21 DUCs brought online in 2017

SW Marcellus Update

30

Gathering volumes up 36% in 2017 as Antero completes DUC Inventory

Overview

Highlights

• ~275 wells have been connected to Crestwood’s system – No

dry holes

• Avg. 30D IP rate ~8.0 MMcf/d; Avg. EURs between 8–12 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

East AOD

Western Area

Arsenal Resources

EQT

Noble Energy

EQTSWN

(1) Source: Wood Mackenzie.

200,000

250,000

300,000

350,000

400,000

450,000

500,000

550,000

600,000

J-16 F-16 M-16 A-16 M-16 J-16 J-16 A-16 S-16 O-16 N-16 D-16 J-17 F-17 M-17 A-17 M-17 J-17 J-17 A-17 S-17 O-17 N-17

Asset Map

Gathering Volumes Since FY 2016

21 DUCs in 2017 increased daily volumes >150 MMcf/d

Well connections in 2017 highlight exceptional reservoir quality and significant upside growth potential with incremental activity

Mcf/d


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CEQP Non-GAAP Reconciliations

31

Expected 2018 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)

Adjusted EBITDA from unconsolidated affiliates

Distributable cash flow from unconsolidated affiliates

Cash distribution to preferred unitholders(c)

Distributable cash flow attributable to CEQP(d)

(110) - (115)

105 - 110

(d) Distributable cash flow is defined as Adjusted EBITDA, adjusted for cash interest expense, maintenance capital expenditures, income taxes, and

our proportionate share of our unconsolidated affiliates' 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 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 companies.

$35 - $65

CRESTWOOD EQUITY PARTNERS LP

Full-Year 2018 Adjusted EBITDA and Distributable Cash Flow Guidance

Reconciliation to Net Income

(in millions, unaudited)

(a) Cash interest expense less amortization of deferred financing costs.

(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 preferred unitho lders and Crestwood Niobrara preferred unit ho lders.

25

188

102-107

(75) - (80)

110 - 115

$390 - $420

$195 - $225

(75)

(95) - (100)

(15) - (20)

investor presentation presentation titleinvestor presentation august 2018 ... crestwood’sfinancial...

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