JP Morgan High Yield & Leveraged

Transcription

1 JP Morgan High Yield & Leveraged Finance Presentation Conference Title Presentation Subtitle 2/24/2014 February 24-26, 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, 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 creates exciting new beginning Crestwood / Inergy Merger Merger creates premier mid-cap MLP with a diverse set of stable, fee-based assets Combined enterprise value of ~$9.0 BB; $520 MM - $570 MM 2014E EBITDA Currently servicing >2 Bcf/d of natural gas and ~ 500,000 Bbls/d of NGLs and crude oil Substantially completed merger integration process Organic Development and Bolt-on M&A to Drive Growth Well Positioned CMLP Balance Sheet Strong 2014 Outlook Manageable $1.2 BB in organic capital backlog through 2018 predominantly around highgrowth liquids-rich and crude oil plays ~$880 MM in recent acquisitions further diversifies operations into two of the most prolific crude oil plays in North America Acquired Arrow Midstream Bakken Shale assets Acquired 50% interest in Jackalope Gas Gathering System in PRB Niobrara Shale 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 Limited capital markets activity expected to fund 2014 capital program; expect to implement ATM equity program in 2014 Improving credit metrics in 2014 driven by substantial EBITDA growth 2013 was a time to establish the platform; 2014 will be the time for execution Delivering current projects on-time and on-budget Capital allocation to highest returning projects will drive disciplined, long-term growth Cross-selling services across platform to maximize margin opportunities Centralized shared services platform to drive economies of scale 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 capacity 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 Crestwood Strategic Objectives Pursue liquids-driven strategy around existing asset platform and geographic footprint to deliver growth objectives; success will be driven by execution Execution Integration & Optimization Future Growth & Accretion Financial Flexibility Execute organic growth in hand (Marcellus, Bakken, Niobrara) Delivering current projects on-time and on-budget drives greatest near-term opportunity Leverage operational critical mass in Marcellus and Bakken/PRB Niobrara regions Capture $15 MM of post-merger annual cost savings Centralized shared services platform to drive economies of scale and standardization Capitalize on customer relationships Cross-selling services between gas, NGL and crude services to maximize fee / margin opportunities Growth driven by accretive 2013 investments, 2014 organic projects Leverage existing platform for bolt-on acquisitions and expansions with upstream and downstream synergies Capital allocation to opportunities with highest risk adjusted returns Proactively manage the balance sheet to stay ahead of capital requirements Successfully raised capital to fund postmerger growth opportunities (raised $1.7 BB in 2013) Focused on achieving investment grade credit ratings to lower cost of capital 5 5

6 Wellhead to Burner Tip Operating Model Dry Gas Gathering Pipelines CO 2 Treating Intrastate & Interstate Pipelines Gas Storage Intrastate & Interstate Pipelines Ethane Rich Gas Gathering Pipelines Gas Processing Mixed NGL Pipeline & Trucks NGL Fractionation Propane Iso-Butane Butane Nat Gasoline NGL Storage & NGL Pipelines Crude Gathering, Trucks, Rail & Pipelines Crude Storage & Terminals Crude Oil Refining Refined Products Storage Barges & Refined Products Pipelines Serving Blue-Chip Customers Across the Value Chain to Link Fundamental Supply & Demand Denotes current services offerings and/or operational capacity 6 6

7 Meaningful Scale and Diversification Crestwood generates ~$545 million of 2014E EBITDA from diversified asset platform covering three reporting segments CMLP CEQP Consolidated Market Cap (1) $4.4 BB $2.2 BB (2) $6.6 BB Enterprise Value (1) $6.3 BB $2.6 BB $8.9 BB 2014E EBITDA ~$488 MM (3) $110 MM (4) ~$545 MM (3) Approximate Segment EBITDA (2014E) NGL and Crude Services 34% Natural Gas Storage & Transportation 23% Gathering & Processing 43% GP/IDRs 27% LP Distributions 15% Operating Asset EBITDA 58% NGL& Crude Services 41% Gathering & Processing 39% Natural Gas Storage & Transportation 20% (1) Reflects market values as of February 19, (2) CEQP market cap reduced by CMLP LP units held by CEQP. (3) Represents midpoint of 2014 guidance range. (4) Includes EBITDA from operating assets as well as LP and GP/IDR distributions received from CMLP. 7 7

8 Attractive Business Mix and Cash Flow Profile Segment and asset diversification provides greater cash flow stability 10+ different key assets with diverse fundamentals generating at least ~$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. 8 8

9 Manageable Organic Projects Drive Growth $1.2 billion backlog of contracted, high-return organic projects drive growth over the next 5 years Project Timeline (1) Capex ($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 9

10 2014 CMLP & CEQP Guidance CMLP Statistic FY2013E (1) 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 (1) FY2014E 2014E EBITDA Mix CEQP $ MM Adj. EBITDA ~$415 $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 pro forma combined Legacy Crestwood and Legacy Inergy FY 2013E Adjusted EBITDA plus pro forma $15 million operating synergies as if merger transaction had occurred on January 1, This number is presented for illustration purposes only and does not reflect actual reported results. (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 10

11 Crestwood Corporate Structure CEQP Public Unitholders ~71% Interest First Reserve/Crestwood Holdings $400 MM Term Loan ~29% LP Interest 100% Non-economic GP Interest (Control) ~11% LP Interest Legacy Inergy Assets - NGL Supply & Logistics - GC Gas Storage Crestwood Equity Partners LP (NYSE: CEQP) million units outstanding $550 MM Revolver $14.2 MM Other CMLP Public Unitholders ~85% Interest ~4% LP Interest GP / IDR Ownership Crestwood Midstream Partners LP (NYSE: CMLP) million units outstanding $1.0 BB Revolver $350 MM 7.75% Notes due 2019 $500 MM 6.00% Notes due 2020 $600 MM 6.125% Notes due 2022 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 (1) EBITDA Contribution: 43% EBITDA Contribution: 23% EBITDA Contribution: 34% (1) (1) (1) Represents relative EBITDA contribution of 2014E projected CMLP EBITDA

12 Disciplined & Balanced Financing Strategy Proven access to long-term capital and a balanced funding approach have kept partnership ahead of capital needs Commitment to disciplined balance sheet management CMLP & CEQP Capital Raised (1) $2,500 $ MM $1.0 BB committed revolving credit facility maturing in 2018 at CMLP provides ample liquidity to meet needs ~$1.5 BB of senior unsecured notes Targeted long-term leverage ratios of 3.5x to 4.0x debt-to-ebitda Targeted long-term coverage ratios of 1.05x to 1.10x debt-to-ebitda Rigorous economic value added capital investment process Conservative approach to risk management $2,000 $1,500 $1,000 $500 $ Equity Sponsor Equity Debt Balanced funding objectives for capital deployment Accessed equity markets 17 times since 2009 raising approximately $3.9 billion Diversified mix of equity issuance including public offerings, private placements, seller equity and sponsor equity (1) Represents combined legacy CMLP, legacy NRGM, and legacy NRGY. Accessed debt markets 7 times raising approximately $3.3 billion 12

13 CMLP Capitalization Recent capital markets activity positions balance sheet out in front of 2014 capital plan Raised ~$800 million of common CMLP units, including $200 million of equity issued to seller in connection with the Arrow acquisition Issued $600 million of senior unsecured notes CMLP corporate credit rating of BB/Ba3; Stable outlook No near term debt maturity Average maturity of >6 years ($ in millions) Pro Forma Capitalization Legacy NRGM As of September 30, 2013 Legacy CMLP CMLP Debt Maturity Profile $350 $256 Pro Forma As Cash $ 1.2 $ 5.7 $ - Legacy NRGM & CMLP revolving credit facilities New CMLP revolving credit facility % senior unsecured notes due % senior unsecured notes due % senior unsecured notes due Other debt Total Debt $ $ $ 1,707.4 Partners Capital $ $ $ 2,379.8 Total Capitalization $ 1,452.3 $ 1,814.7 $ 4,087.2 Debt / Adjusted EBITDA (2) 4.8x $500 $600 (1) As adjusted for the CMLP/NRGM merger, the net proceeds of ~$358 million from issuance of 16.9 million common units, the closing of the Arrow Midstream acquisition, and the issuance of $600 million of senior unsecured notes. (2) Calculated in accordance with the New CMLP revolving credit facility. CMLP revolving credit facility allows for a maximum debt-to-ebitda as defined in the credit facility of 5.5x for a period of 270 days after a material acquisition Senior Notes Credit Facility 13

14 Operations Overview 14 14

15 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 Note: Key Operating Statistics as of 9/30/13. Includes storage and transportation

16 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 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) 16 16

17 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 17 17

18 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 ) in July 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 ~145 miles of pipeline / 15,600 HP of compression; 115 wells currently connected to JGGS system Initial 120 MMcf/d processing plant in-service late 3Q / early Q 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 September 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 2014 CHK/RKI Leasehold CHK Operated Rigs Industry Rigs Non-Operated Rigs Jackalope AMI (311,000 acres) Douglas Facility 18 18

19 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 19 19

20 Northeast 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 largely re-contracted at existing rates MARC I fully subscribed and evaluating a potential expansion project 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% 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. 20

21 Gulf Coast Gas Storage Update 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 in December 2013 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 21 21

22 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 and Producer Services keep dry agreements, butane blending services, exclusive NGL marketer for Williams and Total in Marcellus/Utica region, emerging crude marketing business 22 22

23 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) 1,000, , , , ,000 Crestwood s Bakken platform services ~18% of current Bakken production 500, , , , ,000 (1) Source: Cawley, Gillespie & Associates. (2) Source: North Dakota Department of Mineral Resources 0 Jan-10 Oct-10 Jul-11 Apr-12 Jan-13 Oct-13 23

24 Arrow Midstream Acquisition $750 MM Arrow Midstream acquisition closed in 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 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 1H rigs operating in area to drive 2014 volumes 24 Operations: Dunn and McKenzie Counties, ND Volumes: ~ 50,000 MBbls/d crude oil; ~15 MMcf/d of gas; ~ 10,500 MBbls/d of water Wells Connected: ~255 wells 24

25 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

26 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 26 26

27 Key Investor Highlights Positioning Crestwood for long-term stable growth to create stakeholder value 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 27 27

28 Non GAAP Reconciliations 28 28

29 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

30 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