A Strategic Combination Crestwood and Inergy to merge forming a 7 billion midstream partnership Crestwood Midstream Partners (NYSE: CMLP), Crestwood Holdings LLC, Inergy, L.P. (NYSE:NRGY) and Inergy Midstream, L.P. (NYSE:NRGM) have…
A Premier Shale Player Pro Forma Asset Summary Operations in virtually every premier shale play in North 1,300+ mmcf/d natural gas transportation America capacity 2,000+ mmcf/d gathering capacity 400+ mmcf/d processing capacity…
Transaction Overview Transaction Structure Cash and Unit Exchange 1.070 units of NRGM for each unit of CMLP Consideration 35 million one-time cash payment to CMLP unaffiliated public unitholders CMLP public unitholders will own…
Sequence of Transactions NRGY Distributes NRGM 56.4 million NRGM units distributed on a pro rata basis to NRGY unitholders in Units a tax-free distribution Crestwood Holdings Acquires Non-Economic Crestwood Holdings acquires the…
Strategic Highlights Materially Increased Size, Strong Scale and Complementary Sponsorship and Diversity Growth Alignment of Strategies Interest with LPs Significant Expanded Management Participation in Experience & Midstream…
Increasing Scale & Diversification In a market where size matters, the pro forma enterprise possesses the critical scale and diversified platform to be a formidable competitor across the full midstream value chain CMLP NRGM + NRGY…
Expanding the Value Chain The combined partnership represents a fully integrated midstream service provider with complementary business platforms positioned to compete across the midstream value chain Offering customers a more…
Linking Supply to Demand Expect significant commercial and operating synergy by linking Crestwood producer relationships and access to supply at the wellhead with Inergy demand-side services and relationships Natural Gas NGLs Crude…
Low Cost Capital Drives Organic Growth Significant Backlog of Organic Growth Projects and the Currency to Execute 2.0 Bn of identified potential greenfield development and bolt-on acquisition opportunities 3 Both Crestwood and…
Cash Flow Stability and Visibility 2013E EBITDA Mix Significant diversification provides greater cash flow stability Within the core operating segments; US Salt Other Cowtown 10+ different assets with diversified Inergy…
Enhanced Credit Profile Strong Balance Sheet, enhanced credit profile and increasing float maximizes access to capital and minimizes cost of capital 2.0 billion of equity issued to facilitate transaction; no new debt issuance…
Strong Sponsorship After this transaction, First Reserve, Crestwood management and Inergy management will have in excess of 1.5 billion invested in the combined partnership First Reserve, the largest and most experienced private…
Pro Forma Capital Structure Fully committed financing in place to close transactions with no financing contingencies Crestwood Holdings Commitment for 365 million Term Loan B 20.5mm 53.8mm NRGM NRGY Units Units Seeking change…
Transaction Structure Transaction Steps: First Public Management 2 Management Reserve 1. NRGY distributes all NRGM units currently held to NRGY unitholders in a tax-free distribution 1 2. Crestwood Holdings acquires the GP 3…
Illustrative Transaction Timeline 4 to 5 Month From Announcement to Merger Closing June July / August August / September NRGY Distributes SEC Completes CMLP Unitholder NRGM Units to Review of CMLP Vote NRGY Unitholders Proxy…
Pro Forma Governance First Reserve is a leading global energy investment firm with over Supportive GP 30 years of investing experience in the energy industry Robert G. Phillips Chairman, President and CEO Management Team Remainder…
Unified Strategic Vision Unified and complementary strategic vision to delivering unitholder value Develop and Acquire Assets Where the Infrastructure Requirements are Greatest: Become the Premier Shale Player Leverage the…
Strategic Highlights Materially Increased Size, Strong Scale and Complementary Sponsorship and Diversity Growth Alignment of Strategies Interest with LPs Significant Expanded Management Participation in Experience & Midstream…
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