Investor Presentation Presentation...

Presentation TitlePresentation Subtitle

Crestwood Midstream Partners LP Crestwood Equity Partners LP

Connections for America’s Energy™

™




™




™

3/15/2018




™




™Connections for America’s Energy™

™

Investor Presentation

March 2018

Connections for America’s Energy™ ™™ ™™ ™

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, assumptionsand expectations of Crestwood’s management, the matters addressed herein are subject to numerous risks anduncertainties which could cause actual activities, performance, outcomes and results to differ materially from thoseindicated. Such forward-looking statements include, but are not limited to, statements about the benefits that may resultfrom the merger and statements about the future financial and operating results, objectives, expectations and intentionsand other statements that are not historical facts. Factors that could result in such differences or otherwise materially affectCrestwood’s financial condition, results of operations and cash flows include, without limitation, the possibility thatexpected cost reductions will not be realized, or will not be realized within the expected timeframe; fluctuations in crude oil,natural gas and NGL prices (including, without limitation, lower commodity prices for sustained periods of time); the extentand success of drilling efforts, as well as the extent and quality of natural gas and crude oil volumes produced withinproximity of Crestwood assets; failure or delays by customers in achieving expected production in their oil and gasprojects; competitive conditions in the industry and their impact on our ability to connect supplies to Crestwood gathering,processing and transportation assets or systems; actions or inactions taken or non-performance by third parties, includingsuppliers, contractors, operators, processors, transporters and customers; the ability of Crestwood to consummateacquisitions, successfully integrate the acquired businesses, realize any cost savings and other synergies from anyacquisition; changes in the availability and cost of capital; operating hazards, natural disasters, weather-related delays,casualty losses and other matters beyond Crestwood’s control; timely receipt of necessary government approvals andpermits, the ability of Crestwood to control the costs of construction, including costs of materials, labor and right-of-wayand other factors that may impact Crestwood’s ability to complete projects within budget and on schedule; the effects ofexisting and future laws and governmental regulations, including environmental and climate change requirements; theeffects of existing and future litigation; and risks related to the substantial indebtedness, of either company, as well asother factors disclosed in Crestwood’s filings with the U.S. Securities and Exchange Commission. You should read filingsmade by Crestwood with the U.S. Securities and Exchange Commission, including Annual Reports on Form 10-K and themost recent Quarterly Reports and Current Reports for a more extensive list of factors that could affect results. Readersare cautioned not to place undue reliance on forward-looking statements, which reflect management’s view only as of thedate made. Crestwood does not assume any obligation to update these forward-looking statements.

Company Information

2

Forward-Looking Statements

Contact Information

Corporate Headquarters811 Main Street

Suite 3400

Houston, TX 77002

(1) Market data as of 3/9/2018. (2) Unit count and balance sheet data as of 12/31/2017.

Crestwood Equity Partners LP

NYSE Ticker CEQP

Market Capitalization ($MM)(1,2) $2,009

Enterprise Value ($MM)(2) $4,184

Annualized Distribution $2.40

Investor [email protected]

(713) 380-3081

No IDRs

Corporate Structure

Connections for America’s Energy™ ™™ ™™ ™ 3

Well-Positioned for DCF per Unit Growth


Key Investor Highlights: Solid Execution in 2017 Sets Up Crestwood for Stronger 2018

4

EXECUTION

UNITHOLDER ALIGNMENT

FINANCIAL DISCIPLINE

SELF-FUNDED

GROWTH

Focused on generating increased DCF per unit to enhance unitholder value on a Price/DCF basis

• 2017 Adj. EBITDA of $395MM achieves upper end of increased 2017 guidance

• 29%, 23% and 24% y-o-y growth on oil, gas and water gathering volumes, respectively

• Recognized by EnergyPoint, NDPC and the EPA as a best-in-class midstream operator for safety, customer service, community and environmental responsibility

• No incentive distribution rights (“IDRs”)

• Management and insiders own >30% of common LP units

• First Reserve continues to commit over $500MM of new capital to support CEQP growth; Highlights First Reserve’s long-term committee to Crestwood

• Attractive balance sheet; committed to long-term leverage ratio of 4.0x or below

• Strong distribution coverage of 1.2x or above

• Opportunistically managing capital structure to reduce cost of capital

• No equity required to fund $250MM-$300MM capital program in 2018

• Asset divestitures used to reduce debt; US Salt divested in Q4 2017 for ~$225MM

• Highly strategic joint-ventures with Shell Midstream, Williams, Con Edison and First Reserve reduce capital requirements

• High quality growth in the Bakken, Delaware Basin, Powder River Basin and NE Marcellus

• Committed to accretive organic growth projects offering 5x – 7x build projects

• ~$120MM+ expected EBITDA contribution from current projects by 2021


($US Millions) Q4 2017Actuals Consensus

Adjusted EBITDA $110.9 $104

(-) Cash Interest Expense (23.5)

(-) Maintenance Capital (5.9)

(-) Other (5.9)

(-) Distribution to Preferred Holders (18.8)

Distributable Cash Flow $56.8 $55

($US Millions) FY 2017Actuals 2017 Guidance

Adjusted EBITDA $395 $380 – $400

Distributable Cash Flow $228 $220 – $230

Growth Capital $214 $225 – $250

Maintenance Capital $22 $20 – $25

Coverage Ratio 1.4x 1.2 – 1.3x

Leverage Ratio 4.1x 4.0x – 4.5x

5

Q4 and FY 2017 Financial Results OutperformCrestwood exceeded the mid-point of its increased guidance targets and outperformed consensus estimates in 2017

Fourth Quarter 2017 Results

FY 2017 Actuals vs. Guidance


Diversified Assets in Active Basins

6

Crestwood assets offer operating scale, fixed-fee services & DCF growth

• 5-Yr Growth Strategy Driven by 4 Core Growth Areas− Bakken – 2018+− Delaware Basin – 2019+− Powder River Basin – 2019+− NE Marcellus Shale – 2020+

• Remaining portfolio of assets provide stable cash flows, optimization alternatives and upside optionality

Bakken

Northeast MarcellusPowder

River Basin

DelawareBasin


Balanced Portfolio; High Quality Customers

CEQP Contract Portfolio

77

Variable Rate Contracts

14%

Take-or-Pay and Fixed-Fee Contracts

86%

~86% of Crestwood 2018 EBITDA from take-or-pay and fixed-fee contracts; Key assets protected from commodity volatility and volume declines

Long-Term Contract Profile With High Quality Customers(1)

2018 Forecasted EBITDA

(1) Not inclusive of all Crestwood customers.

Stable cash flows supported by fixed-fee contracts, top-tier customer base and balanced commodity exposure by volume and EBITDA

G&P assets backed by 1.1 million acreage; High quality producer mix

Top-tier NE Gas Storage & Transportation franchise; Largely investment grade

Diversified NGL Marketing, Supply & Logistics business

Gas Oil NGLs

Volumes by Commodity

EBITDA by Commodity

60% 25%

15%

50% 30%

20%


20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Q12016

Q22016

Q32016

Q42016

Q12017

Q22017

Q32017

Q42017

Q12018E

Q22018E

Q32018E

Q42018E

Q12019E

Q22019E

Q32019E

Q42019E

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Q12016

Q22016

Q32016

Q42016

Q12017

Q22017

Q32017

Q42017

Q12018E

Q22018E

Q32018E

Q42018E

Q12019E

Q22019E

Q32019E

Q42019E

0

100,000

200,000

300,000

400,000

500,000

600,000

Q12016

Q22016

Q32016

Q42016

Q12017

Q22017

Q32017

Q42017

Q12018E

Q22018E

Q32018E

Q42018E

Q12019E

Q22019E

Q32019E

Q42019E

0

50,000

100,000

150,000

200,000

250,000

Q12016

Q22016

Q32016

Q42016

Q12017

Q22017

Q32017

Q42017

Q12018E

Q22018E

Q32018E

Q42018E

Q12019E

Q22019E

Q32019E

Q42019E

8

SW Marcellus• 23% 2017 volume growth• 21 DUCs completed in 2017• 10%/yr PDP decline rate in 2018(1)

Strong 2018-2019 Growth Outlook by Basin

System DriversProducer Activity Driving Volume Growth

Barnett• 8% 2017 volume decline• Active workover program in 1H:17• 5-10%/yr PDP decline rate in 2018

Bakken• 29%/4%/24% 2017 oil/gas/water

volume growth• System expansions in 2018

Delaware Basin• 217% 2017 volume growth• 3 active rigs in 2018• Halcon adding rig on So. Nautilus

FY 2017 oil, gas and water volumes up 29%, 23% & 24%; continued volume growth expected from 2018 drilling plans

Powder River Basin • 88% 2017 volume growth• 3 active rigs in 2017• 4 rigs forecasted in 2018

Powder River BasinSW Marcellus and Barnett

Delaware BasinBakken - Water

Bakken – Natural GasBakken – Oil

2017-2019E +65% Growth

(1) MVCs through 2018 term; however, all current and future cash flow reflective of actual throughput and rate (no cash flow cliff).

2017-2019E +60% Growth

2017-2019E +110% Growth

2017-2019E +240% Growth

SW Marcellus

Barnett

10%/yr decline

5-10%/yr decline 2017-2019E +70% Growth

40,000

50,000

60,000

70,000

80,000

90,000

100,000

Q12016

Q22016

Q32016

Q42016

Q12017

Q22017

Q32017

Q42017

Q12018E

Q22018E

Q32018E

Q42018E

Q12019E

Q22019E

Q32019E

Q42019E

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Q12016

Q22016

Q32016

Q42016

Q12017

Q22017

Q32017

Q42017

Q12018E

Q22018E

Q32018E

Q42018E

Q12019E

Q22019E

Q32019E

Q42019E


2018E Financial Outlook

Marketing, Supply & Logistics• Adjusted EBITDA(1): $50MM - $55MM

• US Salt divested for $225MM in 2017 at ~11x cash flow

• NGL marketing business driven by seasonal propane and butane demand in the Northeast

• West Coast stable and primarily based on butane demand from local refiners

Segment OutlookSegment OutlookStorage & Transportation• Adjusted EBITDA(1): $70MM - $75MM• Stagecoach distribution to increase 5%

in June 2018 and 10% in June 2019• COLT Hub $10MM-$15MM cash flow

contribution in 2018 and 2019• Tres Palacios rate improvement driven

by gulf coast LNG and Mexican gas demand

Gathering & Processing• Adjusted EBITDA(1): $335MM - $355MM

• Bakken growth driven by system de-bottlenecking and new processing capacity

• Powder River growth driven by improved contract and rig activity; 4 expected in 1H 2018

• Delaware Basin growth driven by increased gathering volumes and Orla processing plant in-service in mid-2018

• SW Marcellus / Barnett modest declines

Crestwood expects to resume cash flow growth in 2018 as volumes in the Bakken, Delaware Basin, and Powder River Basin benefit from increased activity

Adjusted EBITDA

Distributable Cash Flow

Distribution Coverage Ratio

2018E Leverage Ratio

Growth Capital

Maintenance Capital

>1.2x

4.0x – 4.5x

$250 million – $300 million




Note: Please see accompanying tables of non-GAAP reconciliations for Adjusted EBITDA and DCF. (1) Segment Adjusted EBITDA excludes corporate G&A of $65MM.


Attractive Set of Near-term Organic Growth Projects


2018E Growth Capital

11

2018E Growth Capital By Region(1)

2018E Growth Capital by Quarter

Growth Capital Summary by Region

Bakken81%

Delaware Basin13%

Powder River4%

Other2%

‐

$25

$50

$75

$100

Q1:18 Q2:18 Q3:18 Q4:18

• Bakken– Gathering and compression de-bottlenecking projects for

oil, gas and water systems– Bear Den processing Phase 1 and 2 plant expansions;

target Phase 2 in-service date Q3 2019– Salt water disposal wells and water upgrades– Growth projects drive 15% - 20% EBITDA 5-yr CAGR

• Delaware Basin– Orla processing plant (200 MMcf/d); target in-service date

July 2018 – High pressure pipelines connecting Willow Lake to Orla and

Nautilus to Orla– Gathering system expansions for Shell, Concho, Marathon

and Mewbourne

• Powder River Basin– Well connects and gathering system expansions– Monitoring processing capacity at Bucking Horse plant;

Current capacity of 120 MMcf/d– CHK plans to run 4 rigs on PRB acreage in 2018

Crestwood plans to invest $250MM-$300MM in 2018 to expand gathering and processing capacity in the Bakken, Delaware Basin and Powder River Basin

Highly accretive growth projects expected to generate 5x – 7x build multiples

(1) 2018E range of $250 million to $300 million represents growth capital net to CEQP.


Bakken Growth Strategy

12

Crestwood continues to expand the Bakken Arrow System to offer producers full value-chain services and meet growing volume forecasts

Arrow Overview

Oil

Natural Gas

Water

• Arrow Gathering system generated ~$120MM of Adj. EBITDA in 2017

• >1,500 drilling locations identified on dedicated acreage

• Diversified and balanced group of producers: WPX, QEP, XTO, EnerPlus, Bruin, Rimrock

• 8-year weighted average contract length and Crestwood purchases 100% of oil and gas volumes at the wellhead

• The Arrow system will be Crestwood’s largest driver of cash flow growth in ’18/’19

3-Product Growth Strategy• Oil gathering volumes expected to increase ~15% in 2018

• Current projects: Increasing oil gathering capacity to 120 MBbls/d

• Gas gathering volumes expected to increase ~50% in 2018

• Current Projects: (1) Increasing gas gathering capacity to 120 MMcf/d and (2) Bear Den Plant: 2-phase 150 MMcf/d plant; Evaluating downstream NGL solutions to optimize producer netbacks and project returns

• Water gathering volumes expected to increase ~60% in 2018

• Current projects: Increasing water gathering capacity to 90 MBbls/d and new SWD wells

1

2

3

Forecasted Volume Growth

80 well connects per year through 2021 drives

15-20% EBITDA CAGR

–

25

50

75

100

125

2013 2014 2015 2016 2017 2018 2019 2020 2021

Oil (MBbl/d) Water (MBbl/d) Gas (MMcf/d)


0

30

60

90

120

150

YE 2017 YE 2019

Capa

city (M

Mcf/d)

0

30

60

90

120

150

YE 2017 YE 2019

Capa

city (M

Bbls/d)

0

30

60

90

120

YE 2017 YE 2019

Capa

city (M

Mcf/d)

0

20

40

60

80

100

YE 2017 YE 2019

Capa

city (M

Bbls/d)

Arrow System Expansion Projects

13

Arrow expansions nearly double capacity to support long-term development plans and increasing Bakken well performance

Gathering Projects

New Oil & Water Pumps

New Compressor

Station

Bear Den Plant

Phase 1: 30 MMcf/d

Phase 2: 120 MMcf/d

SWD Expansions

Crude Gathering Water Gathering Gas Gathering Gas Processing

+50% +70% +120% +400%


Bakken Processing Expansion Projects

14

Overview Processing Capacity Growth Timeline

Bear Den plant phase-1

Crestwood is investing growth capital to expand Arrow’s processing capacity to meet producer drilling forecasts; Bear Den Phase 2 scheduled in-service for Q3 2019

• Bear Den Processing Plant is a two phase processing solution that will provide 150 MMcf/d of combined processing capacity

• Phase 1: “Immediate solution” - 30 MMcf/d RJT unit sized to process excess gas volumes previously flared or above third-party contracts

– Phase 1 project cost ~$100MM (includes Bear Den pipeline)

– Commissioned late November 2017

• Phase 2: “Long-term solution” - 120 MMcf/d cryogenic plant sized to process 100% of Arrow gas by 2019

– Phase 2 project cost ~$195MM

– Targeted in-service Q3 2019

• Attractive total project returns of sub-6x; Phase 1 project accretive to DCF in 2018

0

20

40

60

80

100

120

140

160

2017 2018 2019 2020 2021Processing

Volum

e (M

Mcf/d)

CEQP Bear Den ‐ Phase 2

CEQP Bear Den ‐ Phase 1

Third‐Party Processing


Delaware Basin Strategy and Overview

15

Asset MapAsset Overview & Strategy

Crestwood is building competitive scale and fully integrated systems in the heart of the Delaware Basin through 50/50 JV with First Reserve

• Current assets includes Willow Lake gathering & processing and Nautilus gathering & compression

– Total gathering capacity of 335 MMcf/d

– Total processing capacity of 85 MMcf/d

• Current growth projects: In-Service

– 200 MMcf/d Orla Processing Plant Q3 2018

– Nautilus to Orla Pipeline Q3 2018

– Willow Lake to Orla Pipeline Q3 2018

• Future expansion opportunities:

– Crude oil gathering, terminalling and condensate stabilization/blending

– Produced water gathering and disposal

• Halcon Resources acquired southern Ward Co. acreage from SWEPI – Q1 2018

– Potentially accelerates development and build-out of southern Nautilus system

Willow Lake and Nautilus systems expected to be fully connected to the Orla Processing plant by July 2018; Crestwood pursuing incremental undedicated third-

party volumes around existing systems


Delaware Basin Current G&P Assets

16

Willow Lake and Nautilus gathering systems, combined gather over 140 MMcf/d, are at the center of significant development activity in the Delaware Basin

Delaware System MapsWillow Lake System• Willow Lake Gathering and Processing System is at the epicenter of

Northern Delaware Basin development in Eddy and Lea counties, NM

– ~82 miles low pressure gathering system

– Current processing capacity of 85 MMcf/d (includes 30 MMcf/d expansion to handle volume growth through 2Q18)

• Existing acreage/well dedications with Concho and Mewbourne supported by 100,000 acre AMI around plant/system

• The Orla Express pipeline will connect the Willow Lake system to the Orla Processing Plant in 1H 2018

Nautilus System

Asset Ownership:Willow Lake

Orla Plant Nautilus

Crestwood 50% 50% 25%

First Reserve 50% 50% 25%

Shell Midstream - - 50%

• Nautilus Natural Gas Gathering System supports Shell’s Delaware Basin development program; Joint venture with Shell Midstream LP

– 20-year tiered fixed-fee gathering and compression contract

– 100,000 acreage dedication in Loving and Ward counties, TX

• ~$90MM of capital invested in 2017 at a ~5.0x build-multiple

• The Nautilus-to-Orla pipeline will connect the Nautilus system to the Orla Processing Plant in 1H 2018

Over 200K dedicated acres

The Permian basin is the most important asset within Shell’s unconventional portfolio, Shell has around 270k acres in the Permian, and intends to invest $1 billion per year to grow production to 155 MBbls/d by 2020.” – Shell Midstream


Delaware Basin Water Solutions Next Leg of Growth

17

Scalable infrastructure solutions for Delaware Basin water requirements; potential next phase of Delaware Basin growth strategy

Delaware Water Production

• Based on Crestwood’s current capture area, 2.4 MMBbls/d of produced water is forecasted by 2021

• Crestwood’s existing assets well-positioned to offer water gathering and disposal services to producers

• Crestwood has extensive experience gathering and disposing produced water in the BakkenCapture Area.

1.0 1.2

1.6

2.0

2.4

–

0.5

1.0

1.5

2.0

2.5

3.0

2017 2018 2019 2020 2021

Source: DrillingInfo and Wood Mackenzie.(1) Water forecast based on capture area gas forecast and converted to

water based on GORs and WORs for the Wolfcamp and Bone Spring type curves per Wood Mackenzie.

EddyLea

Culberson

JeffDavis

Loving

Pecos

Reeves

Ward

Winkler

Daily Production (BBL)

5-YR Delaware Basin Water Forecast(1)

MMBbls/d


Powder River Basin Strategy and Overview

18

Overview

Recent volume growth and future development activity may provide meaningful gathering and processing expansion opportunities in 2H 2018 or early 2019

Powder River Basin is gaining traction as a very economic stacked play; Chesapeake development and off-set producer activity provide growth potential for Crestwood

Stacked Pay and Large Inventory Offer High Growth Potential

$25/Bbl - $35/Bbl Breakeven2,780 undrilled inventory388,000 dedicated acres

CHK projects PRB production of ~200 Mboe/d by 2022

2016/2017 delineation program proved concept across acreage position

Source: Chesapeake Energy investor presentation dated 2/13/2018.

• Powder River Basin system experiencing meaningful volume growth due to multiple bench production

• Crestwood and Williams’s (50/50 JV) assets may reach capacity in 2H 2018 or early 2019

− Jackalope gathering system capacity of 180 MMcf/d

− Buckinghorse plant processing capacity of 120 MMcf/d

• Chesapeake Energy currently operating three rigs with the expectation of adding a fourth in 1H’18

− Turner drilling program offers over 100% RORs

− Recent Turner tests: 2,886 Boe/d with 51% oil cut 2,560 Boe/d with 80% oil cut 1,700 Boe/d with 80% oil cut


• Strategic 50/50 JV with Consolidated Edison

• FERC regulated storage and pipeline assets located at center of prolific NE Marcellus

• SGS rates/returns expected to be unaffected by recent FERC ruling as they are market based rates which have historically been below cost of service based rates

• Near-term growth: JV Cash Flow

− Stagecoach generated ~$135MM Adjusted EBITDA in 2017

− June 2018/2019: Cash flow distribution steps to 40% and 50%, respectively

• Long-term growth potential:

− Evaluating incremental takeaway projects out of the basin

− Pipeline constraints will continue in NE for the next 10 years

− NE production needs an additional 3-5 Bcf/d of take-away capacity to catch up with the available production

NE Marcellus is the most prolific US gas basin and best potential for demand growth; Stagecoach is strategically positioned to capture growth opportunities

NE Marcellus Provides Long-Term Growth Potential

19

Strategic Position in NE Natural Gas MarketStagecoach Overview

Stagecoach Assets

15

14

13

12

11

10

9

8

7

Bcf

/d

NE Marcellus Gas Production Constrained in 2020+

Production – More PipeProduction – Base CaseProduction – Less Pipe

Pipeline Capacity (Base)Pipeline Capacity (Less)Pipeline Capacity (More)

Source: Northeast production data per BTU Analytics.

Stagecoach Assets

− 41 Bcf storage capacity

− 3.1 Bcf/d of deliverability and 5 Bcf/d of supply access


Balance Sheet Strength, Disciplined Capital Allocation, Accretive DCF Growth


Self-Funded 2018 Capital Program

US Salt Divestiture

Crestwood is committed to maintaining a strong balance sheet and excess distribution coverage as it pursues organic growth projects

• Divested US Salt LLC, a non-core business in the MS&L segment, for approximately $225 million

• Valuation is ~11x 2017E distributable cash flow

• Transaction closed December 1, 2017

Crestwood is self-funding its 2018 capital program to maximize project returns and DCF/unit value creation

Retained DCF

Joint-Venture Strategy

• Forecasted cash flow growth allows Crestwood to maintain distribution coverage >1.2x and leverage <4.0x

• Crestwood will reinvest cash flow into accretive organic projects in FY 2018

• Strategic joint-ventures minimize project risk and capital commitments, while enhancing commercial opportunities:– Delaware Basin: First Reserve and Shell Midstream (NYSE: SHLX)– NE Marcellus: Consolidated Edison (NYSE:ED)– Powder River Basin: Williams Partners (NYSE:WPZ)

1

2

3


$0

$200

$400

$600

$800

2017 2018 2019 2020 2021 2022 2023 2024 2025

22

Strong Balance Sheet and Liquidity

• Top-tier leverage position

– YE 2017 leverage of 4.1x

– Current borrowing capacity ~$500 MM

– Substantial debt reduction over past 2-years

• Committed to long-term leverage <4.0x once growth projects come online

• No near-term maturities; attractive long-term capital

• Committed to funding 2018 capital program without accessing the public equity markets

– Excess cash re-invested into accretive growth projects

– Substantial revolver capacity

– Additional potential non-core divestitures

Balance Sheet Positioned for Strength Current Capitalization

No Near-Term Debt Maturities($MM)

RCF

6.25% Notes

5.75% Notes

Issue Price Yield

2023 102.5 5.4%

2025 100.5 5.6%

Crestwood is committed to maintaining a very strong balance sheet and financial flexibility; Crestwood targets YE 2018 leverage of 4.0x-4.5x

Actuals Actuals Actuals($ millions) 2015 2016 2017

Cash $1 $2 $1

Revolver $735 $77 $318

Senior Notes 1,800 1,475 1,200

Other Debt 9 6 8

Total Debt $2,544 $1,558 $1,526

Total Leverage Ratio 4.8x 3.7x 4.1x

Note: Senior note price and yield data per Bloomberg as of 3/9/2018.


8.8x 8.9x9.5x 9.6x

10.6x 10.9x

12.4x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

CEQP Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6

23

CEQP Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6

2018E Leverage Ratio <4.25x

2018E Coverage Ratio >1.25x

No IDRS

Self-Funded 2018E CAPEX

Significant Insider Ownership

Execution in 2018 to Drive Value Creation

2018E Price/DCF

2018E P/DCF peer average = 10.3x;Implies >20% CEQP unit price upside to ~$34/unit

Source: DCF data provided by industry research dated 2/9/2018.G&P Peers Include: AMID, DCP, ENBL, ENLK, MPLX and WES. Note: Significant insider ownership defined as management and Board of Directors common unit ownership over 5% of outstanding units.


The Crestwood Investment Opportunity

24

Focused on aggressively executing growth opportunities while maintaining financial strength

• SELF-FUNDED near-term gathering and processing growth opportunities in the Bakken and Delaware Basin

• Long-term PRB and northeast Marcellus pipeline projects

In the meantime…

• Crestwood is well-positioned to deliver attractive yield to investors(1)

– Current Yield = 8.5%; Coverage Ratio = 1.4x; Leverage Ratio = 4.1x

• Diversified business mix and strong contract portfolio

• No incentive distribution rights

• Reversion to Peer Group / Alerian yield provides significant upside for units

Execution Drives Significant Upside Return Opportunity;CASH FLOW PER UNIT GROWTH TO RESUME IN 2018

(1) Current yield data as of 3/9/2018. Coverage ratio and leverage ratio as of 12/31/2017.


Appendix

2525

Appendix:


Crestwood’s Commitment to Excellence was Recognized in 2017

Customer Service

Community Engagement

Ranked #1 in the EnergyPoint Research Customer Satisfaction Survey for 2015-2017

In 2017, Crestwood was recognized for its unwavering commitment to best in class customer service, community engagement, environmental stewardship and unitholder alignment

Unitholder Alignment

Crestwood was awarded the NDPC Excellence in Community Engagement Award for our commitment to the communities where we operate

~1/3rd common units owned by insiders; Crestwood scored #1 in Wells Fargo’s December 2017 midstream investor alignment report(1)

Environmental Stewardship Recognized by the EPA as a SmartWay

Partner, as a Company that demonstrates a standard of operations that minimizes their environmental footprint

Crestwood’s culture of excellence positions the partnership to be a responsible steward of capital and an attractive midstream investment

(1) Wells Fargo research report titled “The Midstream Alignment Scorecard.” Published on 12/5/2017. Ranking based on unit ownership, governance , safety metrics, structure and incentive compensation.

Customer Service

Unitholder Alignment Environmental Stewardship

Community Engagement

Customer Service

Customer Service

Community Engagement Community Engagement

Environmental Stewardship

Environmental Stewardship

Unitholder AlignmentUnitholder Alignment


050100150200250300350400

Q3:15 Q4:15 Q1:16 Q2:16 Q3:16 Q4:16 Q1:17 Q2:17 Q3:17 Q4:17

Gathe

ring Vo

lumes (M

Mcf/d)

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

• Crestwood & BlueStone have 10-year agreement

– Fixed-fee and percent of index fee structure for both Natural Gas and NGLs

– Contract structure provides significant upside as commodity prices rebound

• BlueStone brought 7 DUCs online in the first quarter 2017

• Active workover program designed to eliminate system declines and modestly grow volumes

• BlueStone evaluating new development and refrac opportunities

Barnett Overview

27

BlueStone’s workover activities and recent DUC completions offset natural volume declines in 2017

Asset Overview Barnett Gathering Volume Growth

Increased volumes combined with fixed-fee/percent of index contract structure drive cash flow outperformance

Natural Gas Prices Since 2016(1)

BlueStone Begins System Reactivation

April 15th: BlueStone Agreement

(1) Source: EIA Henry Hub Natural Gas Spot Price.

2017 Workovers Offset Natural Field Decline


• 20-year, fixed-fee gathering and compression services w/ Antero Resources

• 140,000 acreage dedication; System capacity of 875 MMcf/d

• 100 MMcf/d compression services on AM gathering in Western Area (90% utilized)

• MVCs through 2018 term; however, all current and future cash flow reflective of actual throughput and rate (no cash flow cliff)

• 21 DUCs brought online in 2017

SW Marcellus Overview

28

Gathering volumes up 36% in 2017 as Antero completes DUC Inventory

Overview

Highlights• ~275 wells have been connected to Crestwood’s system – No

dry holes

• Avg. 30D IP rate ~8.0 MMcf/d; Avg. EURs between 8–12 Bcf(1)

• 800+ liquid-rich (>1,100 BTU) drilling locations and 1,000+ dry gas drilling locations remain

• Growing NGL processing at the Sherwood plant with increased market takeaway capacity out of the basin

• Multiple large SW Marcellus operators hold acreage positions contiguous to Crestwood’s eastern AOD

East AODWestern Area

Arsenal Resources

EQT

Noble Energy

EQTSWN

(1) Source: Wood Mackenzie.

200,000

250,000

300,000

350,000

400,000

450,000

500,000

550,000

600,000

J‐16 F‐16 M‐16 A‐16 M‐16 J‐16 J‐16 A‐16 S‐16 O‐16 N‐16 D‐16 J‐17 F‐17 M‐17 A‐17 M‐17 J‐17 J‐17 A‐17 S‐17 O‐17 N‐17

Asset Map

Gathering Volumes Since FY 2016

21 DUCs in 2017 increased daily volumes >150 MMcf/d

Well connections in 2017 highlight exceptional reservoir quality and significant upside growth potential with incremental activity

Mcf/d


CEQP Non-GAAP Reconciliations

29

Expected 2018 Range Low - High

Net incomeInterest and debt expense, net

Depreciation, amortization and accretionUnit-based compensation chargesEarnings from unconsolidated affiliatesAdjusted EBITDA from unconsolidated affiliates

Adjusted EBITDA

Cash interest expense(a)

Maintenance capital expenditures(b)

Adjusted EBITDA from unconsolidated affiliatesDistributable cash flow from unconsolidated affiliatesCash distribution to preferred unitholders(c)

Distributable cash flow attributable to CEQP(d)

(110) - (115)105 - 110

(d) Distributable cash flow is defined as Adjusted EBITDA, adjusted for cash interest expense, maintenance capital expenditures, income taxes, and our proportionate share o f our unconso lidated affiliates' distributable cash flow. Distributable cash flow should not be considered an alternative to cash flows from operating activities or any other measure of financial performance calculated in accordance with GAAP as those items are used to measure operating performance, liquidity, or the ability to service debt obligations. We believe that distributable cash flow provides additional information for evaluating our ability to declare and pay distributions to unitholders. Distributable cash flow, as we define it, may not be comparable to distributable cash flow or similarly titled measures used by other companies.

$35 - $65

CRESTWOOD EQUITY PARTNERS LP Full-Year 2018 Adjusted EBITDA and Distributable Cash Flow Guidance

Reconciliation to Net Income(in millions, unaudited)

(a) Cash interest expense less amortization o f deferred financing costs.

(b) M aintenance capital expenditures are defined as those capital expenditures which do not increase operating capacity or revenues from existing levels.

(c) Includes cash distributions to preferred unitholders and Crestwood Niobrara preferred unit ho lders.

25188

102-107

(75) - (80)110 - 115

$390 - $420

$195 - $225(75)

(95) - (100)(15) - (20)

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