Connections for America s Energy. Wells Fargo 2013 Annual Energy Symposium. Presentation Title. Presentation Subtitle 12/10/2013. December 10-11, 2013

Transcription

1 Wells Fargo 2013 Annual Energy Symposium Presentation Title Presentation Subtitle 12/10/2013 December 10-11, 2013 Crestwood Midstream Partners LP Crestwood Equity Partners LP

2 Forward Looking Statements The statements in this communication regarding future events, occurrences, circumstances, activities, performance, outcomes and results are forward-looking statements. Although these statements reflect the current views, assumptions and expectations of Crestwood Midstream and Crestwood Equity management, the matters addressed herein are subject to numerous risks and uncertainties which could cause actual activities, performance, outcomes and results to differ materially from those indicated. Such forward-looking statements include, but are not limited to, statements about the future financial and operating results, objectives, expectations and intentions and other statements that are not historical facts. Factors that could result in such differences or otherwise materially affect Crestwood Midstream s or Crestwood Equity s financial condition, results of operations and cash flows include, without limitation, the risks that the Crestwood Midstream and Crestwood Equity businesses will not be integrated successfully or may take longer than anticipated; the possibility that expected synergies will not be realized, or will not be realized within the expected timeframe; fluctuations in oil, natural gas and NGL prices; the extent and success of drilling efforts, as well as the extent and quality of natural gas volumes produced within proximity of Crestwood Midstream or Crestwood Equity assets; failure or delays by customers in achieving expected production in their natural gas projects; competitive conditions in the industry and their impact on the ability of Crestwood Midstream or Crestwood Equity to connect natural gas supplies to Crestwood Midstream or Crestwood Equity gathering and processing assets or systems; actions or inactions taken or non-performance by third parties, including suppliers, contractors, operators, processors, transporters and customers; the ability of Crestwood Midstream or Crestwood Equity to consummate acquisitions, successfully integrate the acquired businesses, realize any cost savings and other synergies from any acquisition; changes in the availability and cost of capital; operating hazards, natural disasters, weather-related delays, casualty losses and other matters beyond Crestwood Midstream or Crestwood Equity s control; timely receipt of necessary government approvals and permits, the ability of Crestwood Midstream or Crestwood Equity to control the costs of construction, including costs of materials, labor and right-of-way and other factors that may impact either company s ability to complete projects within budget and on schedule; the effects of existing and future laws and governmental regulations, including environmental and climate change requirements; the effects of existing and future litigation; and risks related to the substantial indebtedness of either company, as well as other factors disclosed in Crestwood Midstream and Crestwood Equity s filings with the U.S. Securities and Exchange Commission. You should read filings made by Crestwood Midstream and Crestwood Equity with the U.S. Securities and Exchange Commission, including Annual Reports on Form 10-K for the year ended December 31, 2012 and September 30, 2012, respectively, and the most recent Quarterly Reports and Current Reports, for a more extensive list of factors that could affect results. Crestwood Midstream and Crestwood Equity do not assume any obligation to update these forward-looking statements. 2 2

3 Transformational 2013 for Crestwood Significant transformation in 2013 creates exciting new beginning Crestwood / Inergy Merger Bolt-On & Strategic M&A Organic / Commercial Development Well Positioned Balance Sheet Merger creates premier mid-cap MLP Combined enterprise value of ~$8.5 BB; ~$550 MM 2014E EBITDA Currently servicing over 2 Bcf/d of natural gas and ~ 500,000 Bbls/d of NGLs and crude oil Dual public equities (CMLP and CEQP) providing investors multiple investment opportunities across Crestwood structure Substantially completed merger integration process ~$880 MM in recent acquisitions creates meaningful backlog of future growth from two of the most prolific crude oil plays in North America Acquired Arrow Midstream Bakken Shale assets for $750 MM Acquired 50% interest in Jackalope Gas Gathering System in PRB Niobrara Shale for $108 MM; 50% interest in Douglas Crude Rail Facility for $22.5 MM ~$445 MM organic capital expenditures in 2013 drives meaningful 2014 growth Secured and identified $1.2 BB in organic capital backlog through 2018 predominantly around high-growth liquids-rich and crude oil plays Antero Marcellus Gathering system accelerating development due to recent IPO Integration of Bakken assets to provide additional growth potential Renewed firm contracts for substantially all NE Storage and Transportation 2014 available capacity; expansion opportunities under development Raised $1.7 BB in total long-term equity and debt capital in 2013 to fund 2013 organic capital program, optimally finance acquisitions, and build material liquidity for future growth Limited capital markets activity expected to fund 2014 capital program Improving credit metrics in 2014 driven by substantial EBITDA growth 3

4 Diversified US Midstream Portfolio Existing platform in every premier shale play in North America creates significant opportunity for optimization, organic expansion, and strategic M&A ASSET SUMMARY (1) Natural Gas 1.3 Bcf/d natural gas transportation capacity 2.1+ Bcf/d gathering capacity 1,260+ miles of pipeline ~80 Bcf natural gas storage capacity (2) NGL and Crude Oil Eight natural gas processing plants 600+ MMcf/d processing capacity 180,000 BPD crude oil rail terminal facilities 125,000 BPD crude oil gathering NGL and crude logistics business including trucks, rail cars, terminals, fractionation, storage and marketing 4.6 MMBbls NGL storage 12,000 Bbl/d fractionation 8,000 Bbl/d isomerization 520 NGL truck/trailer units 1,071 rail car units 2 crude unit trains on order in 2015 (1) Includes announced expansion projects (2) Total storage capacity is expected to be reduced to 58 Bcf following Tres Palacios application filed with the FERC on December 6, Gathering and Processing Gas Storage and Transportation NGL and Crude Services Basin Areas Shale Regions Headquarters --- High Growth --- Core Optimize --- Core Stable 4 4

5 Attractive Business Mix and Cash Flow Profile Segment and asset diversification provides greater cash flow stability 10+ different key assets with diverse fundamentals generating ~$20 MM of EBITDA No single customer, asset or business unit constituting more than ~15% of total cash flows Significant gross margin supported by long-term (take-or-pay and equivalent) contracts ~51% of 2013E gross margin guaranteed under firm take-orpay type contract ~84% margin fixed-fee (no direct commodity price exposure) ~69% of total 2014E gross margin from operating assets providing rich gas, NGL or crude oil services NGL & Crude Services 32% Dry Gas Margin 31% Crude Oil & NGL Gross Margin 69% 2013E EBITDA Mix Gathering & Processing 40% Storage & Transportation 28% US Salt Fayetteville Arrow Margin Profile Other Stagecoach Barnett Rich MARC I Marcellus Barnett Dry Inergy COLT Services Hub 2014E Gross Margin 2013E Gross Margin (1) Firm Contracts 51% Un- Contracted 16% Fixed-Fee 33% (1) 2013E gross margin percentages represent the combination of the estimated full year 2013 contributions from legacy Crestwood Midstream, legacy Inergy Midstream, and Arrow Midstream without pro forma adjustments required by GAAP. 5 5

6 Identified and Contracted Expansion Projects Support EBITDA and DCF growth Attractive backlog of contracted and identified organic projects drive growth at 5.0x to 7.0x all-in build multiples Project Timeline (1) Capex ($MM) Commentary Marcellus Gathering & Compression ~$375 Pipeline and compression expansion for Antero Resources in rich gas window of SW Marcellus Shale core Arrow Midstream ~$100 COLT Hub Expansion ~$80 Jackalope ~$240 Watkins Glen 2015 ~$20 Continued build-out of Bakken crude oil, water, and natural gas gathering system for WPX, QEP, Halcon, XTO and Kodiak Ongoing 40,000 Bbl/d expansion completed in Q Additional future expansion of COLT Hub facility Construction of expanding rich gas gathering system and 120 Mmcf/d processing plant for RKI and Chesapeake in PRB Niobrara Completion of Watkins Glen NGL storage facility build-out in western NY NE Marcellus Transportation Expansion ~$250 Additional takeaway capacity in NE Pennsylvania with direct connectivity to North-South and MARC I pipelines to bring growing Marcellus dry gas supplies to market Other (2) ~$150 Ongoing growth capital opportunities around existing asset platform (1) Represents estimated timing of capital spend. (2) Primarily includes growth capital related to bringing on new wells around Crestwood s base G&P platform over the next five years excluding the Marcellus and PRB Niobrara 6

7 2014 CMLP & CEQP Guidance Announced CMLP Statistic FY2013E FY2014E $ MM Adjusted EBITDA ~$365 $465 - $510 Adjusted Distributable Cash Flow ~$270 $330 - $360 Growth Capital ~$445 $400 - $ % 2014E EBITDA Mix 80% 60% 40% NGL & Crude Services Storage & Transportation 2014E Distribution Growth 6 10% 3-Yr Distribution Growth 6 10% 20% 0% Gathering & Processing Statistic FY2013E FY2014E 2014E EBITDA Mix CEQP $ MM Adj. EBITDA ~$415 $520 - $570 Adjusted Distributable Cash Flow (1) ~$70 $85 - $ E Distribution Growth 5 10% 100% 80% 60% 40% C&N S&T NGL & Crude Services Storage & Transportation 3-Yr Distribution Growth >20% 20% 0% G&P Gathering & Processing Note: FY2013E represents the midpoint of the ranges. (1) Represents Adjusted DCF attributable to the operating assets of CEQP plus cash received by CEQP for the 7.1MM LP units and GP / IDR interest that CEQP owns in CMLP. 7

8 CMLP Offers Strong Total Return Potential to Investors CMLP represents superior risk-adjusted returns proposition for investors Current valuation (~70 to 160 Bps yield discount relative to selected peers) not reflective of the new Crestwood operating and financial platform with long-term visibility to 6 to 10% distribution growth Expected 3-Yr EBITDA CAGR of ~26% (1) $1.2 BB organic expansion opportunities from 2014 to 2018 at 5.0x to 7.0x all-in build multiples Continued disciplined M&A strategy to complement organic growth ~$60 to ~$70MM of additional EBITDA available for drop-down from CEQP (not included in ~26% expected EBITDA CAGR through 2016) Long-term coverage ratio targets of 1.05x to 1.10x Long-term leverage targets of 3.5x to 4.0x EBITDA Current Yield (2) 3-Yr Total Return Sensitivity (3) 8.0% 6.0% 4.0% 2.0% 7.3% 6.6% 6.3% 5.9% 5.5% Target 3-Yr Annual Distribution Growth Yield 6.0% 7.0% 8.0% 9.0% 10.0% 7.25% 13% 14% 15% 17% 18% 7.00% 14% 16% 17% 18% 19% 6.50% 17% 18% 19% 20% 21% 6.00% 20% 21% 22% 23% 24% 5.50% 23% 24% 25% 26% 27% CMLP Diversified T&S Alerian G&P (1) Represents expected compound annual growth rate from the midpoint of 2013E EBITDA through year end 2016 estimated EBITDA. (2) Current yields based off of the closing prices as of 12/3/2013. Diversified peers include KMP, EPD, ETP, PAA, WPZ, OKS and EEP. T&S peers include SEP, EPB, BWP, TCP, EQM, TEP and MEP. G&P peers include ACMP, WES, MWE, NGLS, RGP, DPM, APL, XTEX, SMLP and SXE. (3) Represents estimated 3-yr unlevered internal rate of return by sensitizing targeted distributions per LP unit and long-term target yield on a CMLP unit purchased as of 12/3/

9 CEQP Total Return Potential Leveraged to CMLP Long-term CEQP growth levered to underlying execution and distribution growth at CMLP Expected 3-Yr CEQP DCF CAGR of ~35% (1) Challenging fundamentals at Tres Palacios limit 1H 2014 growth; over longer term GP / IDR economics work 6% to 10% annual growth in CMLP distributions per LP unit through 2016 drives ~45% to ~65% growth in cash distributions received by CEQP (LP distributions + GP / IDR distributions) Expected 3-Yr CAGR in CEQP distributions per LP unit of >20% (1) ~6 to 10% CMLP Distribution / LP Unit Growth Drives ~50+% growth in CEQP Cash Received $600 $450 $300 $150 CMLP Total Cash Distribution ($MM) (2) CEQP Cash Received ($MM) (3) $125 $100 $75 $50 $25 $ (4) (4) $0 LP Distributions GP / IDRs LP Distributions GP / IDRs (1) Represents compound annual growth rate from year end 2013 through year end Does not include the impact of any potential drop-down of the operational assets from CEQP to CMLP. (2) Estimated total cash distributions paid by CMLP in accordance with long-term guidance of 6% to 10% annual growth in distributions per LP unit. (3) Represents cash received by CEQP for the 7.1MM LP units and GP / IDR interest that CEQP owns in CMLP. Does not include expected cash flows from the operational assets currently owned by CEQP. (4) 2013 total CMLP cash distributions and CEQP cash received include pro forma adjustments as though the Crestwood / Inergy merger was completed as of January 1,

10 Industry Leading Portfolio of Gathering and Processing Assets Feed the Value Chain Current system-wide gathering throughput of ~1.2 Bcf/d Permian / Delaware Basin 55,000 acres to be redeveloped as rich gas play 5 year contracts PRB Niobrara Shale 311,000 acres AMI 20-year 15% COS contracts <5% Developed Granite Wash 22,000+ acres year contracts ~30-40% Developed Barnett Shale 140,000+ acres year contracts ~60% Developed Bakken Shale 150,000 acres Avg. Contract Tenor 6-7 yrs 20% Developed Fayetteville Shale 100,000+ acres 15 year contracts 10-20% Developed Haynesville Shale 20,000+ acres 5-10 year contracts <20% Developed Marcellus Shale 136,000+ acres 20 year contract 5-10% Developed + ROFO on Antero s Western rich gas AOD (1) Key Operating Statistics as of 9/30/13. Includes storage and transportation 10 10

11 Favorable Basin Economics $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 Strategy centered on developing infrastructure where producer wellhead economics are strongest $2.05 $2.11 $2.33 $2.60 $3.65 $3.75 $3.76 $3.80 $3.84 $3.89 $3.94 $4.15 $ Calendar Strip Price: $3.99/MMBtu (1) $4.54 $4.76 $4.77 $5.10 $5.12 $5.24 $5.35 $5.37 $5.67 $5.70 $5.72 $5.93 $6.00 $7.16 $ Calendar Strip Price: $95/Bbl (1) $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 $34 $42 $43 $44 $47 $48 $50 $50 $52 $52 $53 $53 $56 $56 $59 $60 $60 $61 $61 $61 $63 $64 $68 $69 $72 $72 $81 $91 Source: Tudor Pickering Research. Breakeven Prices to earn 10% Single Well IRR. (1) Calendar 2014 NYMEX prices as of 12/3/2013 Basins where Crestwood has existing assets or targeted development projects

12 Marcellus Shale Drives G&P Segment Contribution Growing rich gas gathering and compression assets in the core Southwest portion of the Marcellus Antero Resources/Crestwood Agreements 20-year, 100% fixed-fee contract with annual escalators for low pressure natural gas gathering and compression services Victoria ~136,000 net acres area of dedication West Union Western Area East AOD 7 year East AOD minimum volume commitments underpins Crestwood s capital outlay; 7 year ROFO on Antero s Western Area Antero Resources 2013 Update 15 drilling rigs operating in WV; >$1.2 BB of D&C capex in WV Marcellus Greenbrier Area Signed contracts for 1.0 Bcf/d processing and 1.3 Bcf/d pipeline takeaway capacity to support WV drilling program Completed Largest E&P IPO ever in the US markets raising ~$1.6 BB in gross proceeds Existing pipeline 2013 Pipelines Planned build out rd Party takeaway Area of Dedication (AOD) CMM compressor stations 3 rd Party comp stations MWE Sherwood Plant Accelerating Antero development plans drive significant Crestwood 2013/14 system growth Exit 2013 at ~ 500 MMcf/d (+25% YTD) Exit 2014 at ~ 750 MMcf/d (+50% YTD) 12 12

13 Marcellus Expansion Projects Update Recently completed the Zinnia 20 Trunkline integrating the Greenbrier Area with the Eastern AOD system 14 laterals under construction or recently completed connecting multiple Antero well pads 2H 2013 to early 1Q 2014 in-service dates 11 new laterals in early planning stages 2H 2014 to early 1Q 2015 in-service dates Recently completed the West Union Phases 1 & 2 (Western Area) and Morgan Phase 1 (East AOD) Stations adding 184 MMcf/d of compression capacity 5 additional compression projects totaling 263 MMcf/d under construction and expected to come on line over next 6 months New 120 MMcf/d Banner station plus 2 additional compressor stations on the planning horizon over remaining 18 month Antero development period 13 13

14 PRB Niobrara Shale 3Q 2013 Acquisitions Add to Rich Gas Growth Potential Integrated gathering, processing NGL pipeline and rail potential in the Powder River Basin (PRB) Acquired 50% interest in Jackalope Gas Gathering System ( JGGS ) on 7/19/2013 for ~$108 MM Rich gas gathering and processing for Chesapeake ( CHK ), RKI Exploration and Production ( RKI, a First Reserve portfolio company) and China National Offshore Oil Corporation ( CNOOC ) on 300,000+ acres ~111 miles of pipeline / 15,600 HP of compression; 80 wells currently connected to JGGS system Initial 120 MMcf/d processing plant in-service 3Q 2014 Acquisition financed by $150 MM preferred equity with GE Energy Financial Services ( GE EFS ) Acquired 50% interest in Enserco Crude Oil Rail Terminal (Powder River Basin Industrial Complex) on 9/4/2013 for $22.5 MM Early stage crude oil rail terminal (similar start up to COLT HUB) Anchored by long term contract with CHK from JGGS area Expanding for crude by rail unit-train service to 20,000 BPD in 1Q 2014 CHK/RKI Leasehold CHK Operated Rigs Industry Rigs Non-Operated Rigs Jackalope AMI (311,000 acres) 14 14

15 Gathering & Processing Segment 2014 Forecast Segment Profit (1) 2014E Profit Contribution $ MM $250 $200 Niobrara 5% Fayetteville 9% $150 $100 $50 Barnett Dry 18% Granite Wash 2% Marcellus 42% $ E 2014E Barnett Rich 24% (1) Represents segment level revenues less product purchases, operating and maintenance expenses. 15

16 Well Positioned NE Storage & Transport Assets Storage & Pipeline network provides critical infrastructure for Marcellus growth Crestwood owns premier NE US high deliverability, multi-cycle storage facilities in NY 41 Bcf fully contracted capacity under long term take or pay contracts; Firm storage services and interruptible/hub services Crestwood s NE pipeline network connects CMLP storage & Marcellus supplies to Dominion, Millennium, Transco and TGP pipelines serving NE US markets Over 1.4 Bcf/d bi-directional capacity directly connected to Marcellus PA supply points; Diverse customer base: electric & gas utilities, Marcellus producers, and marketers Key customers include ConEd, PSEG, Anadarko, Cabot, Southwestern 16 16

17 NE Storage & Transportation Contract Update NE Assets are fully subscribed through March 31, 2014 Significant re-contracting progress made during 3Q 2013: NE 2014 storage renewal capacity largely re-contracted at existing 18 /MSQ rates; latest Stagecoach capacity renewed at 25 /MSQ showing strong NE market demand for multi-turn storage 100 MMcf/d of available MARC I capacity marketed through end of 1Q 2015; MARC I fully subscribed and evaluating an expansion project Storage Contract Profile Commodity Working Storage Percentage Contractually Weighted Avg. Facility Stored Capacity Committed Maturity (Year) Stagecoach (1) Natural Gas 26.3 Bcf 100% 2016 Thomas Corners (1) Natural Gas 7.0 Bcf 100% 2015 Seneca Lake Natural Gas 1.5 Bcf 100% 2016 Steuben (2) Natural Gas 6.2 Bcf 100% 2017 Tres Palacios (3) Natural Gas 38.4 Bcf 64% 2014 Transportation Contract Profile Commodity Transportation Percentage Contractually Weighted Avg. Transporation Asset Transported Capacity Committed Maturity (Year) North-South Facilities Natural Gas MMcf/d 100% 2016 MARC I Pipeline Natural Gas MMcf/d 100% 2021 East Pipeline Natural Gas 30.0 MMcf/d 100% 2021 (1) Stagecoach and Thomas Corners are 100% contracted based on operational capacity. (2) Steuben facility granted market-based rate structure beginning April 1,

18 Tres Palacios Gas Storage Weather the Storm Current Gulf Coast gas storage market is challenged due to: Overbuilt storage market Weak summer/winter gas price spreads Low gas price volatility 2.1+ Bcf/d gathering capacity Excess gas supplies from Eagle Ford play Long term demand for storage expected to improve when Gulf Coast LNG projects commence exports, Mexico gas demand increases and storage operators re-purpose or shut down excess capacity Aggressively driving down cost structure Filed with FERC on 12/6/13 to reduce certificated working capacity by 60% to match current firm subscriptions (15.5 Bcf) reducing operating expense by ~$7 MM Seeking reduction of property taxes by ~$3 MM Aggressive near term marketing strategy New executives leading commercial function Remarketing capacity but will avoid multi-year re-contracting at the bottom of the market prices Increasing optimization/hub services 18 18

19 Storage & Transport Segment 2014 forecast Segment Profit (1) 2014E Profit Contribution $ MM $150 $125 $100 $75 $50 $25 Transportation Transportation 43% Storage Storage 57% $ E 2014E (1) Represents segment level revenues less product purchases, operating and maintenance expenses for both CEQP and CMLP operating assets (formerly NRGM and NRGY in historical periods)

20 Expanding NGL & Crude Services Business Nationwide, Crestwood is handling over 500,000 BPD of NGLs and Crude Oil through our facilities and transportation assets ~180,000 BPD of NGLs through NGL facilities and transport assets ~186,000 BPD of NGLs controlled by Crestwood s supply and logistics business ~160,000 BPD crude through COLT Hub and Arrow Midstream Key NGL Facilities and Assets Truck & Rail Car Fleet 500 trailers (450 NGL) and 1,100 rail cars largely servicing the Marcellus and Utica Shale regions West Coast Assets 25,000 BPD fractionation, isomerization, storage and terminalling facility Bath/NE Storage 1.7 MMBbl propane and butane storage cavern South Jersey Terminal rail to truck serving refiners and blenders in Eastern US markets Seymour, Indiana proprietary NGL marketing terminal on Enterprise s Teppco Pipeline with 500,000 Bbl storage cavern Refiner Services includes keep dry agreements, butane blending services, emerging crude marketing business Producer Services Exclusive NGL marketer for Williams and Total in Marcellus/Utica region US Salt produces ~400,000 tons per year; provides access to growing NE storage cavern space 20 20

21 Bakken Shale Drives 2014 Crude Services Growth Positioning Crestwood to be a full value chain midstream services provider for the Bakken Shale COLT Hub Crude Rail Facility - connects premier East Coast and West Coast refiners with growing Bakken Shale crude supplies Arrow Crude Gathering System - adds >150,000 acres dedicated with >1,000 total potential drilling locations in the core of the core of the Bakken Shale Original Oil in Place Expanding footprint in the core of the Bakken Attractive Producer Economics Drive (1) Continued Production Growth (Bbls/d )(2) Crestwood s Bakken platform to service ~18% of current Bakken production (1) Source: Cawley, Gillespie & Associates. (2) Source: North Dakota Department of Mineral Resources 21

22 COLT Hub Crude Rail Facility COLT Terminal Overview Leading Bakken crude rail facility anchored by multi-year take or pay contracts with refiners on West Coast and East Coast 160,000 BPD rail loading capacity (1) Double rail loop Connected to the Burlington Northern Santa Fe rail system Truck unloading facility with capacity of 96,000 BPD (1) 1.08 million Bbl of customer storage capacity (1) 21-mile, 10 bi-directional pipeline (COLT Connector) connects COLT Terminal to Dry Fork Terminal Interconnectivity with Arrow crude gathering system through Tesoro and Hiland Dry Fork Terminal Overview Located at the intersection of four major pipelines at the Beaver Lodge/Ramberg pipeline hub Crude oil metering and pipeline interconnection facilities allow transfer to: Tesoro pipeline Enbridge pipeline 120,000 Bbl of working storage capacity Potential interconnections with Hess, Hiland Crude and TransCanada (1) Capacities shown are after planned expansion is complete

23 Arrow Midstream Acquisition $750 MM accretive Arrow Midstream acquisition closed November 8, 2013 Asset Description Located on the Fort Berthold Reservation Long term gathering contracts with committed Bakken Shale producers: WPX, QEP, XTO, Halcon and Kodiak 460 miles of gathering pipeline systems 150 miles of crude oil gathering lines (125,000 Bbl/d of throughput capacity by 2015) 160 miles of natural gas gathering lines (100 MMcf/d of throughput capacity by 2015) 150 miles of water gathering lines (40,000 Bbl/d of throughput capacity by 2015) Multiple crude pipeline interconnects (Tesoro, Hiland and Bakken Link) and natural gas pipeline and processing connect with OneOk Fully-automated truck loading facilities and crude oil storage capacity at CDP Substantial gathering system expansion underway Commissioning 5 new compressor stations to capture flared associated gas in 4Q rigs operating in area to drive 2014 volumes Operations: Asset Map Dunn and McKenzie Counties, ND Volumes: ~ 50,000 MBbls/d crude oil; ~15 MMcf/d of gas; ~ 8,500 MBbls/d of water Wells Connected: ~235 wells 23 23

24 Integrating the Bakken Footprint Arrow s CDP is a strategic liquidity hub south of the Missouri river, which complements COLT Hub Synergy Potential Arrow system is ~ 60 miles southeast of CMLP s COLT Hub crude rail and pipeline terminal COLT Hub is North Dakota s most active crude by rail facility; expansion to be completed in 1Q ,000 BPD unit train capacity; 1.2 MMBls crude oil storage; 105,000 BPD pipeline capacity; 95,000 BPD truck rack unloading capacity 150,000 BPD rail loading take or pay contracts with refiners (70% of flow to Pacific NW) Direct connectivity between Arrow and COLT Hub through Hiland and Tesoro Pipelines Improves pricing and sales optionality for Arrow producers Improves access to new wellhead supplies for COLT customers Enbridge Pipeline COLT Terminal Crude Pipelines Tesoro Corporation Belle Fourche Pipeline Co. Enbridge Pipelines North Dakota Inc. BNSF Mainline COLT Connector Tesoro Pipeline BNSF Railroad Dry Fork Terminal Beaver Lodge Arrow System 24 24

25 NGL & Crude Services Segment 2014 Forecast Segment Profit (1) 2014E Profit Contribution $ MM NGL Supply Logistics NGL $250 12% Transportation $200 $150 Arrow 33% 7% West Coast 9% $100 NGL Storage 4% $50 $ E 2014E Crude Logistics 28% US Salt 7% (1) Represents segment level revenues less product purchases, operating and maintenance expenses for both CEQP and CMLP operating assets (formerly NRGM and NRGY in historical periods)

26 Key Investor Highlights Positioning Crestwood for long-term visibility to growth through organic projects and M&A Post-merger mid-cap MLP positioned to service premier US liquids-rich and crude oil shale plays Liquids-focused growth strategy benefits from robust long-term macro fundamentals Diversified assets servicing world-class customers across the midstream value chain Gathering & Processing Storage and Transportation NGL and Crude Services Stable cash flow platform with ~84% margin from fixed-fee and take-or-pay type contracts NE Storage & Transportation assets fully subscribed with firm demand contracts COLT Hub fully contracted with take or pay contracts Marcellus gathering and compression minimum volume commitments Strong balance sheet with liquidity to fund growth projects and bolt-on acquisitions 2014 capital program fully funded with minimal capital markets activity expected 26 26

27 Non GAAP Reconciliations 27 27

28 Crestwood Midstream Partners, L.P. Non-GAAP Reconciliations CRESTWOOD MIDSTREAM PARTNERS LP Full Year 2014 Adjusted EBITDA and Distributable Cash Flow Guidance Reconciliation to Net Income ($ In millions) Net income $105 - $138 Interest expense, net $130 - $142 Depreciation, amortization and accretion $230 Adjusted EBITDA $465 - $510 Cash interest expense 1 ($115) - ($127) Maintenance capital expenditures 1 ($20) - ($23) Adjusted distributable cash flow $330 - $360 1 We define cash interest expense as interest expense, net, adjusted for the amortization of debt issue costs, premiums, discounts and other non-cash debt-related items. We define maintenance capital expenditures as capital expenditures related to maintaining our assets and operations

29 Crestwood Equity Partners, L.P. Non-GAAP Reconciliations CRESTWOOD EQUITY PARTNERS LP Full Year 2014 Adjusted EBITDA and Distributable Cash Flow Guidance Reconciliation to Net Income ($ In millions) Net income $135 - $173 Interest expense, net $145 - $157 Depreciation, amortization and accretion $240 Adjusted EBITDA $520 - $570 Cash interest expense 1 ($130) - ($142) Maintenance capital expenditures 1 ($25) - ($28) Proportionate Adjusted DCF Attributable to Public CMLP Unitholders 2 ($280) - ($305) Adjusted distributable cash flow $85 - $95 1 We define cash interest expense as interest expense, net, adjusted for the amortization of debt issue costs, premiums, discounts and other non-cash debt-related items. We define maintenance capital expenditures as capital expenditures related to maintaining our assets and operations. 2 Represents proportionate amount of DCF attributable to public unitholders after taking into account CEQP's ownership interest in CMLP's incentive distribution rights and common units