Connections for Americas Energy MLPA Presentation Presentation Title Presentation May 2017 Subtitle 5/30/2017 Crestwood Midstream Partners LP Crestwood Equity Partners LP
Key Investor Highlights 360MM - 390MM Conservative 2017E guidance 2017 Adjusted EBITDA Bakken, Delaware-Permian, Focused growth strategy Marcellus No GP IDRs; OPEX and G&A Low-cost partnership down 15% 2015/16(2) Long-term…
Repositioned for Distribution Growth Execution of 2017-18 strategy positions Crestwood for resumption of distribution growth in 2H 2018 while meeting conservative leverage and coverage targets Accretive capital investments expanding…
Focused Initiatives Lead to Value Creation 1 De-risked base portfolio; stable cash flow outlook Stabilized base portfolio with volume growth in 2017 across every major gathering system Disciplined growth strategy in the Bakken,…
Improving Fundamentals in Key Regions Crestwood commercial teams building backlog of growth projects in high activity areas; regional JVs structured to be more competitive and help finance projects Focused on Crestwoods Marcellus…
Backlog of Announced Projects Drives Growth Current projects are expected to generate over 30 million per year in incremental cash flow in 2018 and 75 million per year by 2020 Incremental Annual Cash Flow Impact from Capital Projects…
Strong Bakken Arrow Fundamentals Improved recoveries, lower wells costs and exceptional returns drive increased permitting and drilling activity for Arrow producers Bakken & Three Forks Breakevens Strong EURs and Well Costs 900M…
Arrow Producers Accelerate Development The Arrow system will be Crestwoods largest driver of cash flow growth in 2017 and 2018 based on more wells drilled and bigger IP rates Overview Arrow Well Connections Arrow Gathering system…
Arrow System Expansion Projects Arrow system expansions nearly double capacity to support producers long-term development plans and increasing well performance; 55 MM 2016-17 capital projects to improve oil, gas and water services on…
Arrow Bear Den Processing Plant Crestwood commenced construction of Phase 1 processing plant to support Arrow volumes; Expected in-service Q4 2017; Phase 2 likely in 2018 as volumes ramp up Project Overview Bear Den Plant Map Bear…
Strong Delaware Permian Economics Delaware Permian breakeven economics lead US onshore opportunity set and are highly economic in todays commodity price environment Delaware Permian Wolfcamp Breakevens Strong EURs and Well Costs…
Building Competitive Scale in Delaware Permian Crestwood is expanding its footprint in the heart of the Delaware Basin, the most active shale play in the US Asset Overview & Strategy Asset Map Current Assets includes Willow Lake…
Willow Lake Gathering and Processing System Willow Lake gathering system and processing plant is at the center of significant development and M&A activity in the Northern Delaware-Permian (50 rigs operating) Willow Lake System Crestwood…
Shell Nautilus Gas Gathering System Greenfield natural gas gathering system to support Shells development activity in Loving and Ward counties, TX Overview Proposed System Map Shell (SWEPI) Nautilus Gas Gathering System 20 year…
Orla Express Pipeline & Orla Processing Plant Crestwood is building a super-header and 200 MMcf/d processing plant connecting Willow Lake and Nautilus gathering systems; positioned to compete across the entire primary Delaware Permian…
Expanding First Reserve Delaware Permian JV FR provides up-front capital on Orla Plant & Orla Express Capital Financing Terms for Orla Expansion Pro Forma Structure Crestwood to contribute the Willow Lake assets to the Crestwood…
NE Marcellus Stagecoach Gas Services JV Stagecoach Overview Assets Map Strategic 50/50 joint venture with Consolidated Edison (Con Edison) Extensive network of FERC regulated storage and pipeline assets located at center of prolific…
Increasing NE Marcellus Gas Supply Picture Current natural gas prices have encouraged northeast Marcellus producers to resume capital programs in the basin that will drive natural gas production growth NE Producers Increasing Capital…
Improving NE Gas Market; Regulatory Environment The Northeast region is the largest US gas supply base and the best potential for long- term demand growth Strong Regional Fundamentals Seneca Lake Steuben Improving Market Demand:…
Barnett Gathering & Processing Update BlueStones workover activities and recent DUC completions drive system volume growth in 2017; 2017E Adj. EBITDA 60 million Asset Overview Barnett Gathering Volume Growth Crestwood & BlueStone have…
SW Marcellus Gathering & Compression Update Gathering volumes expected to average 400 MMcf/d in 2017 as producer begins completing DUC Inventory; 2017E Adj. EBITDA 60 million Asset Overview Asset Map 20-year, fixed-fee gathering and…
Chesapeake Actively Drilling in PRB Niobrara New G&P contract allows Chesapeake to accelerate development plans and achieve full potential of PRB Niobrara acreage; 2017E Adjusted EBITDA 25 MM Overview CHK PRB Net Production…
NGL Marketing benefits from NE NGL growth Crestwoods is a leading marketer for Marcellus/Utica producers, processors and fractionation through truck, rail, storage and terminal assets; ME2 pipeline capacity adds export ability to…
2017 Outlook Crestwood has a bright 2017 outlook as customers increase development activity and new projects come into service in 2H 2017 Adjusted EBITDA 360 million 390 million(1) Distributable Cash Flow 200 million 230 million(1)…
Strong Balance Sheet & Liquidity Crestwood strengthened its balance sheet by repaying approximately 1 billion of debt over the last twelve months; Crestwood will target YE 2017 leverage of 4.0x-4.5x Balance Sheet Positioned for Strength…
Excess Coverage allows Distribution Growth in 2018 Strong distribution coverage in 2017 allows Crestwood to reallocate internally generated cash flow for further deleveraging and future expansion opportunities Current Distribution DCF…
The Crestwood Investment Opportunity Focused on aggressively executing growth opportunities while maintaining financial strength Near-term gathering and processing growth opportunities in the Bakken and Delaware-Permian with FINANCING…
Appendix Connections for Americas Energy 29 29
CEQP Non-GAAP Reconciliations CRESTWOOD EQUITY PARTNERS LP Reconciliation of Non-GAAP Financial Measures (in millions, unaudited) 2016 Full-Year EBITDA Net income (loss) (192.1) Interest and debt expense, net 125.1 Loss on…
CEQP Non-GAAP Reconciliations CRESTWOOD EQUITY PARTNERS LP Full-Year 2017 Adjusted EBITDA and Distributable Cash Flow Guidance Reconciliation to Net Income (in millions, unaudited) Expected 2017 Range Low - High Net income 0 -…
Loading...
