Crestwood strategic update april 2016

Presentation Title
Presentation Subtitle
Crestwood Midstream Partners LP Crestwood Equity Partners LP
Connections for America’s Energy
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4/20/2016
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Strategic Update
April 21, 2016

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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’s 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 benefits that may result from the merger and 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’s financial condition, results of operations and cash flows include, without limitation, the possibility that
expected 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 extent and success of drilling efforts, as well as the extent and quality of
natural gas and crude oil volumes produced within proximity of Crestwood assets; failure or delays by customers in achieving expected production in their oil
and gas projects; 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, including suppliers, contractors, operators, processors,
transporters and customers; the ability of Crestwood 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’s control; timely receipt of necessary government approvals and permits, the ability of Crestwood to control the
costs of construction, including costs of materials, labor and right-of-way and other factors that may impact Crestwood’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’s
filings with the U.S. Securities and Exchange Commission. You should read filings made by Crestwood with the U.S. Securities and Exchange Commission,
including Annual Reports on Form 10-K and the most recent Quarterly Reports and Current Reports for a more extensive list of factors that could affect results.
Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management’s view only as of the date made. Crestwood does
not assume any obligation to update these forward-looking statements.
Company Information
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Forward-Looking Statements
Contact Information
Corporate Headquarters
700 Louisiana Street
Suite 2550
Houston, TX 77002
(1) Market price as of 4/19/2016.
(2) Unit count and balance sheet data as of 12/31/2015.
Crestwood Equity Partners LP
NYSE Ticker CEQP
Market Capitalization ($MM)(1,2) $879
Enterprise Value ($MM)(2) $3,986
Annualized Distribution $2.40/unit
Investor Relations
investorrelations@crestwoodlp.com
(713) 380-3081

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Crestwood Strategic Update
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In a challenging market, Crestwood continues to take actionable steps to improve its
positioning and broaden its investment appeal
• In 2015, reduced O&M and G&A expenses by $26 MM year-over-year through Project Adapt
initiatives
• Limiting growth capital expenditures to previously committed contractual projects
Simplification
Merger
Cost Cutting /
Reduced Capex
• In 1Q 2015, completed Project Adapt to cut costs and improve processes and efficiencies
• In 2Q 2015, restructured operations to Pipeline Services and Marketing, Supply & Logistics
divisions
• On September 30, 2015, closed merger between Crestwood Equity and Crestwood
Midstream
• Improved cost of capital by eliminating IDRs
Debt
Reduction
• Strategic joint venture with Consolidated Edison (“Con Edison”)
• Declared first quarter 2016 distribution of $0.60 per unit
• >$1.0 billion debt reduction in 2016; 3.5x pro forma leverage ratio
Streamlined
Business
Solidify Base
Business
• Executed 10-year agreement with BlueStone Natural Resources in Barnett, removing
uncertainty from Quicksilver bankruptcy
• Continue to aggressively mitigate re-contracting risk and seek additional revenue
generating opportunities

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Crestwood Equity Partners LP (“Crestwood” or the “Partnership”) continues to advance its stated
objectives designed to build financial strength in a challenging macro environment for the energy
sector
• Strategic joint venture with Con Edison
– Crestwood and Con Edison have executed a definitive agreement to form a 50:50 strategic joint venture (the
“Joint Venture” or the “JV”) to further optimize and develop natural gas infrastructure to serve key Northeast
demand markets (the “Transaction”)
– Crestwood to contribute its Northeast Gas Storage and Transportation assets (“NE S&T”) to the JV
– Con Edison to purchase a 50% equity interest in the JV for $975 million
– Con Edison to receive 65%, 65%, and 60% of cash distributions in the first three years following closing, with
reversion to 50:50 split thereafter; future capital contributions and governance remain 50:50 from Transaction
closing
– The Joint Venture will be managed by Crestwood and operated by a newly formed services company
– Transaction is expected to be substantially completed in Q2 2016, subject to customary closing conditions
• Declared First Quarter 2016 distribution of $0.60 per unit ($2.40 annualized)
– The distribution reduction allows Crestwood to reallocate operating cash flow to superior return opportunities
and deleveraging, and provides for estimated full-year 2016 coverage of 1.7x
– Substantial distribution coverage provides investors distribution clarity and security
• Capital Allocation Priorities
– Crestwood to use net proceeds from the Transaction and retained distributable cash flow to reduce outstanding
indebtedness and opportunistically pursue highest return investment opportunities
– Eliminates need to access public or private capital markets
– Pro forma leverage of ~3.5x ; maintaining a target ratio of less than 4.25x on a forward basis
Crestwood Deleveraging Strategy
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1.7x
1.0x
0.4x
0.6x
0.8x
1.0x
1.2x
1.4x
1.6x
1.8x
2.0x
CEQPPF
2016
MLPA
MLPB
MLPC
MLPD
MLPE
MLPF
MLPG
CEQPFY
2015
MLPH
MLPI
Actuals Pro Forma Pro Forma
($ millions) Q4 15 Adjustments Q4 15
Cash – – –
Revolver $735
Senior Notes 1,800
Other Debt (2)
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Total Debt $2,543 ($975) $1,568
Total Leverage Ratio 4.8x 3.5x
Selected MLP Peers (3)
Top-Tier Balance Sheet and Coverage Ratio
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(1) Coverage of 1.7x assumes preferred distribution paid-in-kind. Coverage of 1.4x if paid in cash.
(2) Includes capital leases.
(3) Select MLP peers include DPM, ENBL, ENLK, ETP, OKS, SMLP, TRGP, WES, WPZ.
(4) Year-end 2015 Debt / EBITDA.
(5) Peer coverage based on broker 2016 estimates for LP distribution coverage.
• >$1.0 billion of debt repayment provides
substantial balance sheet strength and liquidity
– $975 million from Con Edison joint venture
– Significant retained excess DCF
• Top-tier leverage and distribution coverage
– Pro forma leverage of ~3.5x
– FY 2016E coverage of 1.7x(1)
Pro Forma CapitalizationPositioning Crestwood for Strength
3.5x
4.8x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
8.0x
CEQPPF
2015
MLP1
MLP2
MLP3
MLP4
CEQPFY
2015
MLP5
MLP6
MLP7
MLP8
MLP9
Leverage Ratios (4) 2016E Distribution Coverage (5)
Cash pay coverage ratio(1)

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Joint Venture With Con Edison
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• Crestwood to form new Unrestricted
Subsidiaries: Crestwood Pipeline and Storage
Northeast LLC and Stagecoach Gas Services LLC
− Contribute its NE S&T business to
Stagecoach Gas Services LLC
− Crestwood Pipeline and Storage Northeast
LLC to sell a 50% interest in Stagecoach Gas
Services LLC to Con Edison
• Con Edison to contribute $975 million in cash
consideration for 50% interest
− ~13x current EBITDA(1)
• A newly formed services company will operate
the assets
• 50:50 future capital contributions and
governance
• Con Edison to receive 65% / 65% / 60% of cash
distributions for first 3 years following closing;
50:50 cash distributions thereafter
Pro Forma StructureKey Structural Terms
Joint Venture Overview
(1) On a 50% basis.

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Joint Venture Transaction Merits
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• Aligns Crestwood’s Northeast interests with one of the largest
energy companies in the Northeast
• Strong investment grade partner
Blue-Chip Joint
Venture Partner
• Con Edison’s participation in the Stagecoach JV strengthens the
business’s strategic abilities in a highly attractive market
• Enhances commercial capabilities and ability to execute/finance
growth projects
Solidifies
Franchise
Position
• ~$975 million valuation implies >13x EBITDA(1) multiple
• Opportunity to capture substantial value during a distressed
commodity environment while maintaining future upside
opportunities
Strong Asset
Valuation
• Transaction proceeds drive substantial deleveraging: ~3.5x pro
forma leverage ratio
• Coupled with distribution reset, eliminates any need to access
the capital markets in order to execute our 5-year growth
objectives
Catalyst for
Substantial
Deleveraging &
Liquidity
(1) On a 50% basis.

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Con Edison Overview
A premier strategic partner strengthens competitive position in a highly attractive
market
Strategic Partner That Solidifies Franchise Position
• Large-cap investment grade, publicly-traded utility
(NYSE:ED) focused on regulated transmission and
distribution
• Con Edison’s utility subsidiaries deliver gas to ~1.2
million customers in New York and Pennsylvania
and serve ~3.7 million electric customers in New
York, New Jersey and Pennsylvania
• Collaborative and influential relationships with all
key industry players
• Partnership creates opportunity to capture
substantial value today and retain upside
from growth opportunities
Joint Venture Asset Footprint
TIOGA
TENNESSEE
PIPELINE
SENECA
LAKE
POTTER
CLINTON
PA
NY
TIOGA
STEUBEN
STORAGE
PENNSYLVANIA
THOMAS
CORNERS
MILLENNIUM PIPELINE
BRADFORD
SUSQUEHANNA
SULLIVAN
LYCOMING
TRANSCO PIPELINE
NEW YORK
EAST PIPELINE
CHENANGO
BROOME
CONSTITUTION
PIPELINE
WAYNE
Stagecoach
Junction
Angelina
Gathering
NORTH/SOUTH
PIPELINE
Cherry Road
ATLANTIC SUNRISE
PIPELINE
LUZERNE
WYOMING
CHEMUNG
MARC I PIPELINE
STAGECOACH
STORAGE
JV ASSET FOOTPRINT
CON EDISON
SERVICE
AREA

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Crestwood Financial Strategy
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Gathering &
Processing
47%
Storage &
Transportation
34%
Marketing
Supply &
Logistics
19%
$-
$100
$200
$300
$400
$500
$600
Low High
Updated 2016 Guidance
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Updated 2016 guidance reflects adjusted cash flows from Con Edison joint venture;
other assets inline with previous guidance
Distributable Cash Flow
$275 MM - $305 MM
Growth Capital
$50 MM - $75 MM
2016E Distribution
$2.40/unit
Marketing, Supply & Logistics
• Adjusted EBITDA:
$95 MM - $100 MM
• Cash flows level with 2015
• Marketing business supported
by hard assets and long-term
relationships
Updated 2016E Outlook
2016E Adj. EBITDA Guidance
$435 MM - $465 MM
Segment Outlook
Storage & Transportation
$170 MM - $180 MM
• Volumes trending flat to up 5%
from 2015
• NE S&T and COLT Hub take-or-
pay contracts drive stable cash
flow
Gathering & Processing
$235 MM - $250 MM
• Volumes trending 15%-20%
lower than 2015
• 2016E cash flow forecasts
include conservative forecasts
for Barnett and PRB Niobrara
assets
(1) Net of corporate G&A expenses of $65 million.
Segment Contribution
(1) (1)
($MM)

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Conservative Distribution Policy
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Preferred stock going cash
pay in Q3 2017
COLT re-contracting risk;
Continued softness in CBR
market
Reduced activity in G&P
and trucking assets
Potential producer
counterparty risk in lower-
for-longer environment
Distribution policy appropriately
addresses potential risks to cash flows
$0.60Quarterly Distribution
per unit
$2.40Annual Distribution
per unit
Revised
Distribution
Key
Attributes
2016
Distribution per Unit $2.40
Coverage Ratio ~1.7x
Coverage Ratio (100% cash pay, net preferred cash payment) ~1.4x
• Conservative and sustainable in
lower-for-longer commodity
price environment
• Provides strong visibility to
growth as commodity prices
improve
• Provides best-in-class financial
position to drive reversion to
more normalized equity yield
New distribution policy allows Crestwood to reallocate internally generated cash flow
for further deleveraging, future expansion opportunities

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Attractive Entry Point For Investors
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• Recent CEQP valuation levels provide an attractive entry point for investors – distribution safety and
long-term upside potential
• Distributions underpinned by stable, fixed-fee contracts
• Revised distribution results in industry leading coverage levels – stress tested for prolonged industry
downturn
• Improved balance sheet will allow for eventual resumption of distribution growth over the long term
• Creates prospect of yield compression from improved competitive positioning among peer group
Stress-Tested Distribution Level
2016 Distribution Security
1.7x
1.4x
0.5
1.0
1.5
2.0
Old
CEQP
New
CEQP
PIK
New
CEQP
Cash Pay
G&P T&S Alerian
Leverage Benchmarking
Coverage(x)
TEV /
EBITDA
8.3x 11.2x 13.2x 11.8x
3.5x
3.0
4.0
5.0
6.0
Old
CEQP
New
CEQP
G&P T&S Alerian(3)
Leverage(x)
(1)
(1) Peer coverage based on broker estimates.
(2) Coverage as if PIK interest were cash pay.
(3) G&P peers includes DPM, ENBL, ENLK, SMLP, TRGP and WES; T&S peers include SEP, TCP and WPZ.
(4) Year-end 2015 Debt / EBITDA.
(5) 2016 EBITDA based on consensus estimates.
(6) As of April 19, 2016.
(4)
(3) (3) (3)
(5)
Current
Yield
12% 7% 9%
DPU
($/Unit)
$5.50 $2.40
Creates Prospect for Yield Compression
(2)
(6) 43% 19%
$2.40
19%

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The Crestwood Investment Opportunity
No Incentive Distribution
Rights
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1
Substantial Expense /
Fixed Charge Reduction
2
Diversified / Balanced
Portfolio
3
Fixed Fee / Firm Contract
Profile
4
Current Valuation Not Indicative
of Business Fundamentals
Substantial Retained Cash Flow /
No Capital Markets Requirements
1
Strong Distribution
Coverage of 1.7x
2
Existing Assets Levered to
Volume Growth with
Commodity Price Recovery
3
Strong Debt Reduction /
3.5x Pro Forma Leverage Ratio
4
Attractive Valuation Entry Point
5
Execution Drives Significant
Upside Return Opportunity
Strong Liquidity /
No near-term maturities
5

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Non-GAAP Reconciliations
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CEQP Non-GAAP Reconciliations
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CRESTWOOD EQUITY PARTNERS LP
Full Year 2016 Adjusted EBITDA and Distributable Cash Flow Guidance
Reconciliation to Net Income
(in millions)
(unaudited)
Expected 2016 Range
Low – High
Net income $15 – $45
Interest and debt expense, net 126 – 128
Depreciation, amortization and accretion 260
Unit-based compensation charges 15
Earnings from unconsolidated affiliates (40) – (45)
Adjusted EBITDA from unconsolidated affiliates 57 – 62
Adjusted EBITDA $435 - $465
Cash interest expense (a)
(119) – (121)
Maintenance capital expenditures (b)
(16) – (18)
Other (10) – (11)
Distributable cash flow (c)
$290 – $320
Distributions to Crestwood Niobrara preferred (15)
Distributable cash flow attributable to CEQP common unitholders $275 – $305
(a) Cash interest expense less amortization of deferred financing costs plus bond premium amortization.
(b) Maintenance capital expenditures are defined as those capital expenditures which do not increase operating capacity or revenues from
existing levels.
(c) Distributable cash flow is defined as Adjusted EBITDA, less cash interest expense, maintenance capital expenditures, income taxes and
deficiency payments (primarily related to deferred revenue). 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 generally accepted
accounting principles 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 corporations and partnerships.

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