2013 Citi One-on-One MLP / Midstream Infrastructure Conference August 21-22, 2013
Transformational Combination Inergy and Crestwood to merge forming an 8 billion midstream partnership Transaction announced May 6th between Crestwood Holdings LLC, Inergy, L.P. (NYSE:NRGY), Crestwood Midstream Partners (NYSE: CMLP)…
Merger Creates Premier Shale Player Operations in every premier shale play Asset Summary (1) in North America Natural Gas 1.3 Bcf/d natural gas transportation capacity 2.0+ Bcf/d gathering capacity 1,100+ miles of pipeline 80+…
Growth Oriented Partnership Structure The combined partnerships operate diverse midstream businesses with two valuable equity currencies to fund growth objectives Financial flexibility to execute First Reserve growth projects and…
Strong Sponsorship and Alignment First Reserve, the Board of Directors and Management have more than 1.5 billion invested in the combined partnerships First Reserve continues to demonstrate its commitment to the ongoing growth of…
Expanding the Value Chain Fully integrated midstream service provider positioned to compete across the midstream value chain Offer customers a more comprehensive and competitive suite of services Capture incremental fee opportunities…
Linking Supply to Demand Significant commercial and operating synergy by linking Crestwoods producer relationships and access to natural gas, NGL and crude oil supplies with Inergys demand-side assets, services and relationships…
Increasing Scale & Diversification The combination of Inergy and Crestwood creates a true mid-cap MLP platform with size, scale and diversity to be a formidable midstream competitor; provides investors with a focused approach to…
Integration Process Underway One Partnership Culture Corporate Development Gathering & NGL & Crude Gas Storage & Drawing from the Processing Services Transportation best of both Leveraging the organizations to combined utilize…
Post-Merger Executive Team Chairman, President Chair & Chief Executive Officer Bob Phillips President, Liquids & Senior Vice President, President, Natural Gas Crude Operations Services Heath Deneke Bill Gautreaux Joel…
Rich Gas and Crude Oil Plays Drive Organic Growth 12
Marcellus Shale Growing Gathering and Compression System Growing rich gas gathering and compression assets in the core Southwest portion of the Marcellus Acquired Antero Resources gathering assets in March 2012 and Enerven…
Marcellus Shale Antero is the Most Active Driller 3,000 well inventory of future Marcellus Shale drilling locations from Antero Triad Spencer Unit Leatherman Unit 4 wells avg. 1H: 14.7 MMcf/d IP 1,550 Boe/d 30 day 2H: 11.8 MMcf/d…
Bakken Shale - Crude Oil Logistics Terminal (COLT) Integrated network of crude rail car loading, pipeline and storage assets in the heart of the Bakken Long-term fee based revenues 98% of capacity contracted or committed under…
Bakken Shale Production Increase Supports Expansion As a result of the continued supply North Dakota Production Forecast development and customer demand for more 1,800 market flexibility, NRGM is expanding COLT to 1,600 operating…
Niobrara Shale - Acquisition Adds 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 CHK/RKI Leasehold Gathering…
Niobrara Shale - Strong Producer Economics Accelerates Supply Growth Jackalope AMI Supply Development Expectations 480 million drilling carry from CNOOC drives CHK activity in Jackalope AMI through 2014 250 total well connects…
Delaware (Permian) Basin Emerging Rich Gas and Crude Play Delaware (Permian) one of the most active oil and NGL basins in US Targeting Bone Spring, Avalon and Wolfcamp formations Converting Las Animas dry gas systems to rich gas…
Management Objectives Optimize existing assets and operations through detailed merger integration process; commitment to leading project management performance and delivering results as promised Maintain investment focus on accretive…
Past Performance Drives Growth Expectations NRGY (MMs) Historical Adjusted EBITDA Positioning NRGY as pure-play GP 350 Distribution of 56.4 million NRGM units to NRGY unitholders completed in June 2013 300 Growth driven by IDRs…
Enhanced Credit Profile Strong balance sheet, enhanced credit profile and increasing float maximizes access to capital and minimizes cost of capital (MMs) Total Debt at June 30, 2013 NRGM/CMLP Merger is balance sheet 1,000 779…
Key Investor Highlights Inergy / Crestwood combination is transformational for future growth objectives Operating and financial platform capable of competing for large scale infrastructure projects and acquisitions Merger…
Appendix 25
Organization Structure Crestwood NRGY Holdings Public Non-economic GP Interest (Control) 23% LP Interest Current 77% LP Interest CMLP Ownership NRGY 43% LP Interest Public Structure NRGM 100% GP / IDR 100% GP / IDR Public…
CMLP Non-GAAP Reconciliations Year Ended December 31, LTM 2010 2011 2012 6/30/2013 (in MMs) (audited) (audited) (audited) (unaudited) Net income 34.9 45.0 38.9 36.1 Depreciation and amortization 22.4 33.8 51.9 62.7 Interest…
NRGM Non-GAAP Reconciliations FYE Sept. 30 LTM (1) (1) 2010 2011 2012 6/30/2013 (in MMs) (audited) (audited) (audited) (unaudited) Net income 43.2 53.5 65.7 22.4 Depreciation and amortization 42.4 43.9 50.5 79.3 Interest expense,…
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