™ ™ ™ ™ ™ ™ Connections for America’s Energy Connections for America’s Energy Connections for America’s Energy Connections for America’s Energy Connections for America’s Energy Connections for America’s Energy ™ ™ ™ ™ ™ ™ Jefferies 2 0 1 4 Global Energy Presentation Title Presentation Title Presentation Title Presentation Title Presentation Title Conference Presentation Subtitle Presentation Subtitle Presentation Subtitle Presentation Subtitle Presentation Subtitle 11/10/2014 Novem ber 1 1 , 2 0 1 4 Crestwood Midstream Partners LP Crestwood Midstream Partners LP Crestwood Midstream Partners LP Crestwood Midstream Partners LP Crestwood Midstream Partners LP Crestwood Midstream Partners LP Crestwood Equity Partners LP Crestwood Equity Partners LP Crestwood Equity Partners LP Crestwood Equity Partners LP Crestwood Equity Partners LP Crestwood Equity Partners LP
Forw ard Looking Statem ents 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 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, 2013, and the most recent Quarterly Reports and Current Reports, for a more extensive list of factors that could affect results. ™ ™ ™ Connections for America’s Energy 2 ™ ™ ™ 2
Flexible Ow nership Structure Tw o publicly traded MLPs provides strategic flexibility to enhance value Crestwood / Inergy mergers in • June & October 2013 created a First Reserve/ Crestw ood new platform Holdings CEQP Public Well positioned in the Marcellus, • Unitholders Utica, Bakken, PRB Niobrara and ~ 2 9 % LP I nterest ~ 1 0 % LP 1 0 0 % Non-econom ic Delaware Permian shale plays ~ 71% Interest I nterest GP I nterest ( Control) Fixed fee services across the • Crestw ood Equity Partners LP midstream value chain in Gas, ( NYSE: CEQP) NGL and Crude Oil CMLP Public 186.4 MM units outstanding Com m on and Class A Since the Merger: • Unitholders ~ 4 % LP I nterest ~ 86% Interest GP / I DR Ow nership – Invested ~$1.5 BB acquisition and organic growth capex Crestw ood Midstream Partners LP – Four consecutive quarters of ( NYSE: CMLP) 188.0 MM common units outstanding EBITDA and distributable cash 14.9 MM Class A preferred units outstanding flow growth – Improved CMLP coverage ratio to 1.05X and leverage ratio to Operating Subsidiaries ~4.4X ™ ™ ™ Connections for America’s Energy 3 ™ ™ ™
Operations and Assets in Key Shale Plays Organized in four operating regions to ensure consistency and synergy Natural Gas – 1.4 Bcf/d transportation – 2.5+ Bcf/d gathering – 80 Bcf storage – 615 MMcf/d processing NGL’s and Crude Oil – 350 MBbls/d NGL logistics business – 3 MMBbls NGL Storage – ~625 trucking units – ~1,640 rail units – 125 MBbls/d crude oil gathering – 180 MBbls/d crude oil rail terminals – 1.5 MMBbls crude oil storage ™ ™ ™ Connections for America’s Energy 4 ™ ™ ™ 4
Operations across the Midstream Value Chain Cash flow diversity across operating segm ents and geography increases stability 2 0 1 4 EBI TDA Operating Segm ents Regional Footprint Operating Assets W est 4 % W est Other US Salt 4 % Marcellus Gathering & Central Jackalope Processing 1 6 % NGL & 3 8 % Barnett Crude Dry Arrow Services 4 1 % MARC I / North South Rockies Northeast COLT 3 1 % 4 9 % Stagecoach Hub Storage & Barnett Transportation NGL Supply Rich 2 1 % & Logistics Growth levered to crude and NGL focused services • Material upside to improving natural gas prices in Barnett and Fayetteville shale plays – Northeast and Rockies primary growth regions • Long-term service contracts in the best US resource plays supported by strong producer – drilling economics Crestwood’s three operating segments provide diversified asset platform • 10+ different key assets with diverse fundamentals generating >$15 MM of annual EBITDA – ™ ™ ™ Connections for America’s Energy 5 ™ ™ ™ 5
Fixed Fee Contracts provide Cash Flow Stability Lim ited com m odity exposure and long-term contract duration provide stable cash flow s Cash flow stability with 87% of EBITDA from • 2 0 1 4 EBI TDA fixed-fee and firm contracts COLT Hub rail loading volumes @ 149 MBbl/d – Short-term / via take-or-pay contracts with refiners Variable 1 3 % Firm PRB Niobrara Jackalope JV G&P services – Contracts under 20-year cost of service contract with 4 3 % CHK/RKI Marcellus rich gas gathering and compression – Fixed-Fee services for Antero Resources under 7-year 4 4 % minimum volume commitments (2012-19) NE Storage & Transportation firm capacity – 100% fully contracted; FT expansions well supported Short-term/variable EBITDA primarily back-to- • Dry Gas Margin back, indexed and fee-based NGL and Crude 2 8 % marketing contracts Strategy focused on asset optimization – (truck, rail, storage, terminal) Crude Oil & Risk Management program to ensure – NGL Gross Margin 7 2 % commodity price neutral book ™ ™ ™ Connections for America’s Energy 6 ™ ™ ™ 6
I m proving Consolidated Results Since Merger Sequential Consolidated LTM EBI TDA grow th; record natural gas and crude volum es Segm ent EBI TDA ($ MMs) 2013 2014 Segm ent Adjusted EBI TDA ( 1) 3Q ( 2) 4Q 1Q 2Q 3Q Gathering and Processing $ 43.2 $ 47.5 $ 48.2 $ 51.0 $ 50.3 Storage and Transportation CMLP Operations $ 33.4 $ 33.6 $ 36.8 $ 37.8 $ 35.7 CEQP Operations $ 1.5 $ 3.1 $ 1.2 $ (2.9) $ (2.5) Total $ 34.9 $ 36.7 $ 38.0 $ 34.9 $ 33.2 NGL and Crude Services CMLP Operations $ 15.1 $ 20.7 $ 26.3 $ 34.7 $ 41.6 CEQP Operations $ 16.4 $ 18.0 $ 18.7 $ 12.0 $ 17.2 Total $ 31.5 $ 38.7 $ 45.0 $ 46.7 $ 58.8 Operating Stats Total $ 109.6 $ 122.9 $ 131.2 $ 132.6 $ 142.3 Operating Statistics CMLP Natural gas volumes (MMcf/d) 2,706 2,833 2,982 3,049 3,086 Crude oil volumes (MBbls/d) 83 140 152 203 227 CEQP Supply and logistics 779 964 922 635 702 (Gallons sold or processed, millions) (1) See accompanying tables of non-GAAP reconciliations. (2) Following the Crestwood-Inergy merger completed in October 2013, Crestwood restated its combined financial and operating results to the beginning of the third quarter 2013. ™ ™ ™ Connections for America’s Energy 7 ™ ™ ™ 7
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