Connections for Americas Energy 2015 NAPTP Investor Presentation Presentation Title Presentation May 21, 2015 Subtitle 5/20/2015 Crestwood Midstream Partners LP Crestwood Equity Partners LP
Crestwood Mid-Year Update Strategically located assets Successful cost reduction initiative Six consecutive quarters of improving results Simplification improves distribution and cost of capital Substantial growth…
The New Crestwood Investment Opportunity Distribution Stability Capital Appreciation Leveraged to Volume Growth 1 Simplified Corporate Structure 1 with Commodity Price Upside Substantial Expense / Fixed 2 2 Cost of Capital…
Simplified Structure Creates One Crestwood Current Structure Pro Forma Structure First Reserve/ First Reserve/ Crestwood Crestwood Holdings CEQP Public Holdings CEQP Public and Preferred Unitholders Unitholders 71% LP 29% LP…
Simplification Highlights Elimination of 30 million of IDRs drives immediate cost of capital improvement Improved Cost of Competitive cost of capital improves positioning for 3.0 billion of identified Capital expansion…
Expense / Fixed Charge Reduction drives DCF Bold action to materially reduce expense and fixed charges to improve margins and distribution coverage Execution of our current strategy to materially reduce operating cost across the…
Achieving Leverage and Coverage Goals Improving credit metrics due to internal growth; long-term goal to…
Balanced and Diverse Business Mix Estimated 2015 EBITDA Contribution Operating Segments Regional Footprint Operating Assets Other West West 4%6% US Salt Marcellus Jackalope NGL & Gathering & Central Northeast Barnett Crude…
Leading Fixed-Fee Contract Portfolio 90% of Consolidated 2015E EBITDA from take-or-pay and fixed-fee contracts Significant cash flow contribution protected from commodity change and volume reduction Consolidated Contract Portfolio…
Breakeven WTI Price (/bbl) 20 30 40 50 60 70 80 90 plays Eag le Ford Oil Tier 1 Bakken Tier 1 TFS Tier 1 Niobrar a Tier 1 WTI 5yr Strip Eag le Ford Oil Tier 2 Source: HPDI and TPH. Bakken Tier 2…
Cost of Capital Analysis Impact of IDR Elimination Elimination of IDRs drives immediate cost of capital improvement Status Quo CMLP Pro Forma CEQP Pre-Announcement (3) Current Prices (4) 8% Yield ( millions except per unit data) 500…
Expansion Opportunities Positioning Crestwood for Growth Improving cost of capital to capture 3.0 billion of identified potential expansion opportunities around asset footprint Expansion Opportunities A. Marcellus Shale: A E 500 to…
Current Valuation Creates Attractive Entry Point for Investors CEQP currently trading at 10.5% yield, 350 bps higher than the G&P peer group and 470 bps above the Alerian MLP index Current valuation provides attractive entry point…
Core Operations Update Connections for Americas Energy 16
Bakken Arrow Gathering System Tier 1 acreage dedication with substantial long-term growth through system build out Summary Bakken Asset footprint in concentrated acreage blocks with highly competitive drilling economics(1) 150,000…
Bakken COLT Hub and Connector COLT Hub is the leading Bakken CBR facility linking Bakken crude supply to prime refinery markets Summary CBR to Gulf Coast squeezed out by 2018 with new pipeline; No pipeline capacity to service West…
PRB Niobrara Gathering, Processing & CBR Actively developing a leading position in the PRB to handle both crude and gas Summary 120 MMcf/d processing plant completed in January 2015 Chesapeake drilling activity leading to…
NE Marcellus Storage and Transportation Strategically located NE assets provide significant level of contracted cash flows and growth opportunities Summary and Major Updates 41 Bcf of natural gas storage and pipeline capacity of 1.8…
SW Marcellus (Antero) Gathering & Compression Long-term fee-based contracts in southwest Marcellus core production window Summary and Major Updates Antero Midstream Crestwood Dedication Area Dedication Area 20-year, fixed-fee…
Crestwood NGL Assets and Services Premier NGL supply and logistics platform servicing the value chain to connect NGL supplies to NGL demand markets Summary 2015E EBITDA Contribution Leading marketer of Marcellus/Utica NGL's NGL 625…
Key Investment Highlights Diversified US midstream platform established since 2010 Substantial operations across the entire midstream value chain Critical mass in natural gas, natural gas liquids and crude oil operations…
Non-GAAP Reconciliations Connections for Americas Energy 24
CMLP Non-GAAP Reconciliations Three Months Three Months Ended Ended (in millions, unaudited) March 31, December 31, 2015 2014 2014 EBITDA Net income (loss) 21.7 5.5 (60.4) Interest and debt expense, net 29.9 28.1 26.6 Provision…
CEQP Segment Data (in millions, unaudited) 2015 2014 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr Gathering and Processing Revenues 78.5 84.3 85.3 83.4 79.5 C osts of product/services sold 12.7 16.4 18.6 17.6 18.7 Operations and…
CEQP Non-GAAP Reconciliations (in millions, unaudited) 2015 2014 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr EBITDA Net income (loss) 18.1 (30.7) 11.9 (4.8) 13.2 Interest and debt expense, net 33.6 31.3 31.5 32.6 31.7 Provision (benefit)…
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