Morgan Stanley Midstream MLP and

Transcription

1 Morgan Stanley Midstream MLP and Diversified Presentation Natural Title Gas Corporate Presentation Subtitle Access Event 3/2/2014 March 4-5, 2014 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, 2013, and the most recent Quarterly Reports and Current Reports, for a more extensive list of factors that could affect results. 2 2

3 Two Ways to Invest One Premier Midstream Energy Company ~29% LP Interest 100% Non-economic GP Interest (Control) First Reserve/Crestwood Holdings CEQP Public Unitholders ~71% Interest Crestwood Equity Partners LP (NYSE: CEQP) million units outstanding ~11% LP Interest ~4% LP Interest GP / IDR Ownership CMLP Public Unitholders ~85% Interest Legacy Inergy Assets - NGL Supply & Logistics - GC Gas Storage Crestwood Midstream Partners LP (NYSE: CMLP) million units outstanding Gathering and Processing Marcellus Niobrara Barnett Fayetteville Others NE Storage and Transportation Stagecoach Marc I North / South Thomas Corners Others NGL and Crude Oil Services Bakken Arrow Midstream Bakken COLT Hub Facility Niobrara Douglas Facility NE NGL Storage US Salt EBITDA Contribution: 43% 1 EBITDA Contribution: 23% 1 EBITDA Contribution: 34% 1 1 Represents relative EBITDA contribution of 2014E projected CMLP EBITDA. See guidance materials issued on December 5, 2013 on 3 3

4 Key Investment Highlights Crestwood well-positioned to execute on 2014 strategic objectives Compelling Business Model Crestwood/Inergy merger creates premier mid-cap MLP Size and Scale: Combined enterprise value of ~$8.9 BB; ~$550 MM 2014E EBITDA Diversified Midstream Portfolio: Coast to coast asset footprint located in major liquids rich and crude shale plays Compelling well-head to burner tip business model currently servicing over 2 Bcf/d of natural gas and ~ 500,000 Bbls/d of NGLs and crude oil Organic / Commercial Development Bolt-On & Strategic M&A Financial Strength & Flexibility ~$370 MM organic capital expenditures in 2013 drives meaningful 2014 growth $1.2 BB organic capital backlog in high-growth liquids-rich and crude oil plays fuels 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 ~$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 Dual public equities (CMLP and CEQP) provide multiple investment opportunities and allow strategic flexibility for partnership Substantial EBITDA growth to drive distribution coverage >1.0x and improve leverage ratios to ~4.0x Raised $1.7 BB in total long-term equity and debt capital in 2013 to fund organic capital program, optimally finance acquisitions, and build material liquidity for future growth Limited capital markets activity expected to fund 2014 capital program 4

5 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 1.0 Bcf/d firm natural gas transportation capacity 2.5+ Bcf/d gathering capacity 1,350+ miles of pipeline ~80 Bcf natural gas storage capacity (2) NGL and Crude Oil 10 natural gas processing plants 615+ MMcf/d processing capacity 180,000 BPD crude oil rail terminal facilities 125,000 BPD crude oil gathering capacity NGL and crude logistics business including trucks, rail cars, terminals, fractionation, storage and marketing 4.9 MMBbls NGL storage 12,000 Bbl/d fractionation 8,000 Bbl/d isomerization 557 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 5 5

6 Strong Fourth Quarter 2013 Performance Sequential EBITDA growth across operating segments CEQP/CMLP Consolidated 4th Quarter 3rd Quarter Segment EBITDA % Change Gathering and Processing (1) $ 47.5 $ % Key Drivers 175 MMcf/d of new compression placed in service in the Marcellus Shale during Q led to 9% increase in gathering volumes and 30% increase in compression volumes NGL and Crude Services $ 39.3 $ % Storage and Transportation $ 36.7 $ % Total $ $ % Contribution of Arrow assets acquired in November % increase in crude oil loading volumes at the COLT Hub Increased margins from supply and logistics services Continued strong demand for wheeling and hub services Storage assets 100% contracted with average maturity of 2.75 years (1) Excludes $31.4 million non-cash charge related to potential future earn-out payment accrued in fourth quarter

7 Meaningful Scale & Diversification with Attractive Business Mix and Cash Flow Profile Crestwood generates ~$545 million of 2014E EBITDA from diversified asset platform covering three reporting segments 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 ~38% of 2014E margin guaranteed under firm take-or-pay type contract ~87% of margin fixed-fee (no direct commodity price exposure) NGL & Crude Services 41% Dry Gas Margin 31% 2014E EBITDA Mix Gathering & Processing 38% Storage & Transportation 21% 2014E Gross Margin US Salt Fayetteville MARC I Barnett Dry Stagecoach Inergy Barnett Services Rich Margin Profile Other Marcellus Arrow COLT Hub 2014E Gross Margin Firm Contracts 38% Un- Contracted 13% Crude Oil & NGL Gross Margin 69% Fixed-Fee 49% 7 7

8 Organic Expansion Projects Drive 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 8

9 2014 CMLP & CEQP Guidance Announced CMLP Statistic FY2013 (1) FY2014E $ MM Adjusted EBITDA ~$375 $465 - $510 Adjusted Distributable Cash Flow ~$260 $330 - $360 Growth Capital ~$370 $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 FY2013 (1) FY2014E 2014E EBITDA Mix CEQP $ MM Adj. EBITDA ~$430 $520 - $570 Adjusted Distributable Cash Flow (2) ~$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% (1) Represents the combination of the full year 2013 contributions from legacy Crestwood Midstream, legacy Inergy Midstream, and Arrow Midstream without pro forma adjustments required by GAAP. (2) 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. 20% 0% G&P Gathering & Processing 9

10 CMLP Offers Strong Total Return Potential to Investors CMLP represents superior risk-adjusted returns proposition for investors Current valuation (~50 to 150 Bps yield discount relative to selected peers) not reflective of the new Crestwood operating and financial platform with long-term visibility to 6 10% distribution growth Expected 3-Yr EBITDA CAGR of ~25% (1) $1.2 BB organic expansion opportunities from 2014 to 2018 at 5.0x to 7.0x all-in build multiples Continued disciplined bolt-on M&A to complement organic growth Long-term coverage ratio targets of 1.05x to 1.10x Long-term leverage targets of 3.5x to 4.0x EBITDA 8.0% 6.0% 4.0% 2.0% Current Yield (2) 7.2% 6.8% 5.8% 5.4% 4.9% CMLP Diversified Alerian T&S G&P 3-Yr Total Return Sensitivity (3) Target 3-Yr Annual Distribution Growth Yield 6.0% 7.0% 8.0% 9.0% 10.0% 7.00% 13% 14% 16% 17% 18% 6.50% 16% 17% 18% 19% 20% 6.00% 18% 20% 21% 22% 23% 5.50% 21% 23% 24% 25% 26% 5.00% 25% 26% 27% 28% 30% (1) Represents expected compound annual growth rate from 2013 EBITDA through year end 2016 estimated EBITDA. (2) Yield for CMLP based on 2/27/2014 closing price. Peer group data sourced from Citigroup research. Diversified peers include KMP, EPD, ETP, PAA, WPZ, OKS and EEP. T&S peers include SEP, EPB, 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 2/27/

11 CEQP Total Return Potential Leveraged to CMLP Long-term CEQP growth levered to underlying execution and distribution growth at CMLP Expected 3-Yr CEQP distribution growth of >20% GP / IDR economics the most impactful driver of CEQP growth 6% 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) NGL Supply & Logistics operational cash flow growth of 10%-15% in 2014 with minimal capital deployed Recovery in gulf coast storage market not critical to achieving growth objectives at CEQP ~6 to 10% CMLP Distribution / LP Unit Growth Drives ~50+% growth in CEQP Cash Received $600 $450 $300 $150 CMLP Total Cash Distribution ($MM) (1) CEQP Cash Received ($MM) (2) $125 $100 $75 $50 $25 $0 (3) (3) $0 LP Distributions GP / IDRs LP Distributions GP / IDRs (1) Estimated total cash distributions paid by CMLP in accordance with long-term guidance of 6% to 10% annual growth in distributions per LP unit. (2) 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. (3) 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,

12 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 143,000+ acres 15 year contracts 10-20% Developed Haynesville Shale 22,000+ acres 5-10 year contracts <20% Developed Marcellus Shale 140,000+ acres 20 year contract 5-10% Developed + ROFO on Antero s Western rich gas AOD Note: Key Operating Statistics as of 12/31/13. Includes storage and transportation

13 Marcellus Shale Drives G&P Segment Contribution Growing rich gas gathering and compression assets in the core Southwest portion of the Marcellus West Union Western Area Victoria Existing pipeline 2013 Pipelines Planned build out rd Party takeaway (1) Based on Crestwood s internal estimate. Greenbrier Area East AOD Area of Dedication (AOD) CMLP compressor stations 3 rd Party comp stations MWE Sherwood Plant Antero Resources/Crestwood Agreements 20-year, 100% fixed-fee contract with annual escalators for low pressure natural gas gathering and compression services ~140,000 net acres area of dedication 7 year East AOD minimum volume commitment underpins Crestwood s capital outlay; 7 year ROFO on Antero s Western Area Antero Resources Update 15 drilling rigs operating in WV with 35 DUC well backlog; >$1.2 BB of D&C capex in WV Marcellus 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 Build-out of gathering and compression assets provides capacity to meet expected volume growth Exit 2013 at 460 MMcf/d (+25% YTD); current spot volumes at 580 MMcf/d Exit 2014 at ~750 MMcf/d (+50% YTD) (1) 13 13

14 Marcellus Expansion Projects Update In Q added 175 MMcf/d in additional compression capacity Phase 1 of Perkins and Morgan stations were completed adding 110 MMcf/d of capacity increase East AOD system capacity >600 MMcf/d Completed the West Union Phase 2 to add 65 MMcf/d of capacity to the Western Area Completed pipelines to connect Morgan & Perkins stations to MarkWest Sherwood processing plant 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 planning stages 2H 2014 to early 1Q 2015 in-service dates 5 additional compression projects totaling 263 MMcf/d under construction and expected to come on in 1H 2014 New 120 MMcf/d Banner station plus 2 additional compressor stations on the planning horizon over remaining 18 month Antero development period 14 14

15 PRB Niobrara Shale Assets Add to Rich Gas Growth Potential Integrated gathering, processing NGL pipeline and rail potential in the Powder River Basin (PRB) 50/50 JV in Jackalope Gas Gathering System ( JGGS ) with Access Midstream 20-year cost-of-service rich gas gathering and processing agreement with Chesapeake ( CHK ), RKI Exploration and Production ( RKI, a First Reserve portfolio company) and China National Offshore Oil Corporation ( CNOOC ) on 311,000 acres ~145 miles of pipeline / 15,600 HP of compression; 115 wells currently connected to JGGS system Q4 gathering volume of ~47 MMcf/d; Q1 spot volumes at current system capacity of MMcf/day Initial 120 MMcf/d processing plant in-service 4Q 2014 increasing system capacity to 180 MMcf/d Acquisition financed by $150 MM preferred equity with GE Energy Financial Services ( GE EFS ) 50/50 JV interest in Powder River Basin Industrial Complex (Douglas Terminal) anchored by long term contract with CHK; currently expanding for crude by rail unit-train service to 20,000 BPD in 2Q 2014 Jackalope AMI (311,000 acres) Douglas Facility CHK/RKI Leasehold CHK Operated Rigs Industry Rigs Non-Operated Rigs 15 15

16 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 Barnett Rich 24% (1) Represents segment level revenues less product purchases, operating and maintenance expenses. 16

17 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 17 17

18 NE Storage & Transportation Update Capturing substantial interruptible transportation revenue at Marc I and North-South due to wider basis spreads between long haul pipelines into Northeast demand markets Weighted average maturity of contract portfolio through June 2018 Successful contract renewals in Northeast: NE 2014 storage renewal capacity re-contracted at ~10% higher than existing rates Increased firm transportation contracts for additional 80 dth/d in Q4 Announced non-binding open season for additional firm transportation on North-South and Marc I pipeline system Facility Storage Contract Profile Commodity Stored Percentage Contractually Committed Transportation Contract Profile Weighted Avg. 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% 2017 Steuben Natural Gas 6.2 Bcf 100% 2017 Commodity Transported Working Storage Capacity Transportation Capacity Percentage Contractually Committed Weighted Avg. Maturity (Year) Transporation Asset North-South Facilities Natural Gas MMcf/d 100% 2017 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. 18

19 Gulf Coast Gas Storage Update Near-term marketing strategy intact Re-contracted 4 bcf at current market rates Increasing optimization/hub services activity; record withdrawals in Q Remarketing capacity but will avoid multi-year re-contracting at bottom of the market Recent volatility supportive of longterm contracting efforts Aggressively driving down cost structure at Tres to achieve ~$10 million annual savings Filed with FERC to reduce certificated working capacity by 60% reducing operating expense by ~$7 MM Seeking reduction of property taxes by ~$3 MM Tres well positioned over the long term for improvement in Gulf Coast storage fundamentals due to LNG exports and Mexico gas demand 19 19

20 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 (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)

21 Expanding NGL & Crude Services Business Growing NGL & Crude Services business instrumental in executing Crestwood s wellhead-to-burner tip operating model Nationwide, Crestwood is handling over 500,000 BPD of NGLs and Crude Oil through our facilities and transportation assets Supply & Logistics business provides producers and refiners improved netbacks while linking end users with cost-effective supply Producer Services Exclusive NGL marketer for Williams and Total in Marcellus/Utica region Refiner Services includes keep dry agreements, butane blending services, emerging crude marketing business Coast-to-coast reach of logistics operations well-positioned to optimize Crestwood s diversified asset portfolio Operations Across Midstream Value Chain Denotes current services offerings and/or operational capacity Serving Blue Chip Customers 21 21

22 Arrow Midstream Operations $750 MM accretive Arrow Midstream acquisition closed November 2013 Asset Description Asset Map Located on the Fort Berthold Reservation Long term gathering contracts with committed Bakken Shale producers: WPX, QEP, XTO, Halcon and Kodiak 485 miles of gathering pipeline systems 150+ miles of crude oil gathering lines (125,000 Bbl/d of throughput capacity by 2015) 170+ miles of natural gas gathering lines (100 MMcf/d of throughput capacity by 2015) ~165 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 1Q 2014 Operations: Dunn and McKenzie Counties, ND Volumes: ~47,000 MBbls/d crude oil; ~20 MMcf/d of gas; ~ 12,000 MBbls/d of water Wells Connected: ~255 wells 11 rigs operating in area to drive 2014 volumes 22 22

23 COLT Hub Crude Rail Facility COLT Terminal Overview Leading Bakken crude rail facility located in Williams County, ND 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

24 Integrating the Bakken Footprint Arrow s CDP is a strategic liquidity hub, which complements COLT Hub; Crestwood currently ~18% of Bakken crude oil production 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; 96,000 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 $250 $200 $150 Arrow 33% NGL Supply Logistics 12% NGL Transportation 7% West Coast 9% $100 $50 $ E Crude Logistics 28% NGL Storage 4% 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 Size and scale provides critical mass to execute strategy Diversified assets servicing world-class customers across the midstream value chain Stable cash flow platform with ~87% margin from fixed-fee and take-or-pay type contracts Recent M&A activity and ongoing organic development to drive meaningful growth in 2014 and beyond Strong balance sheet with liquidity and financial flexibility to fund growth projects and bolt-on acquisitions 26 26

27 Non GAAP Reconciliations 27 27

28 Crestwood Equity Partners, L.P. Non-GAAP Reconciliations CRESTWOOD EQUITY PARTNERS LP (FORMERLY INERGY, L.P.) Segment Data (in millions) Three Months Ended (unaudited) Gathering and Processing December 31, 2013 September 30, 2013 Operating revenues $ 76.6 $ 71.1 Costs of product/services sold Operating and administrative expense Goodwill impairment (4.1) Gain on long-lived assets Earnings (loss) from unconsolidated affiliate 0.5 (0.4) Gain (loss) on contingent consideration (31.4) EBITDA $ 16.1 $ 43.2 NGL and Crude Services Operating revenues $ $ Costs of product/services sold Operating and administrative expense Loss on long-lived assets (0.1) Loss from unconsolidated affiliate (0.2) EBITDA $ 39.3 $ 21.8 Storage and Transportation Operating revenues $ 49.1 $ 48.8 Costs of product/services sold Operating and administrative expense EBITDA $ 36.7 $ 34.9 Total Segment EBITDA $ 92.1 $ 99.9 Corporate (40.6) (29.1) EBITDA $ 51.5 $

29 Crestwood Equity Partners, L.P. Non-GAAP Reconciliations CRESTWOOD EQUITY PARTNERS LP (FORMERLY INERGY, L.P.) Reconciliation of Non-GAAP Financial Measures (in millions) (unaudited) Three Months Ended December 31, 2013 September 30, 2013 EBITDA Net income (loss) $ (42.1) $ (7.9) Interest and debt expense, net Provision (benefit) for income taxes (0.2) 0.5 Depreciation, amortization and accretion EBITDA $ 51.5 $ 70.8 Significant items impacting EBITDA: Non-cash equity compensation expense (Gain) loss on contingent consideration 31.4 Gain on long-lived assets (0.9) (4.4) Goodwill impairment 4.1 (Earnings) loss from unconsolidated affiliates, net (0.3) 0.4 Adjusted EBITDA from unconsolidated affiliates Significant transaction related costs and other items Adjusted EBITDA 1 $ $ EBITDA is defined as income before income taxes, plus net interest and debt expense, and depreciation, amortization and accretion expense. In addition, Adjusted EBITDA considers the adjusted earnings impact of our unconsolidated affiliates by adjusting our equity earnings or losses from our unconsolidated affiliates for our proportionate share of their depreciation and interest, the impact of certain significant items, such as non-cash equity compensation expenses, gains and impairments of long-lived assets and goodwill, third party costs incurred related to potential and completed acquisitions, gain or loss on contingent consideration, and other transactions identified in a specific reporting period. EBITDA and Adjusted EBITDA are not measures calculated in accordance with accounting principles generally accepted in the United States of America (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. 29

30 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

31 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