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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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™ Connections for America’s Energy ™

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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

[email protected]

(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

CEQ

P P

F

20

16

MLP

A

MLP

B

MLP

C

MLP

D

MLP

E

MLP

F

MLP

G

CEQ

P F

Y

20

15

MLP

H

MLP

I

Actuals Pro Forma Pro Forma

($ millions) Q4 15 Adjustments Q4 15

Cash – – –

Revolver $735

Senior Notes 1,800

Other Debt (2) 8

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 Capitalization Positioning Crestwood for Strength

3.5x

4.8x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

8.0x

CEQ

P P

F

20

15

MLP

1

MLP

2

MLP

3

MLP

4

CEQ

P F

Y

20

15

MLP

5

MLP

6

MLP

7

MLP

8

MLP

9

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 Structure Key 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

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiGmsGNu4zMAhXmuIMKHc6FCe8QjRwIBw&url=https://commons.wikimedia.org/wiki/File:ConEd_logo.svg&bvm=bv.119408272,d.amc&psig=AFQjCNFVY5YO8LcKrp8HdPVcS9wrz3WoLw&ust=1460665930322436


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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


• Volumes trending flat to up 5% from 2015

• NE S&T and COLT Hub take-or-pay contracts drive stable cash flow

Gathering & Processing


• 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

$0.60 Quarterly Distribution

per unit

$2.40 Annual 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

OldCEQP

NewCEQPPIK

NewCEQP

Cash Pay

G&P T&S Alerian

Leverage Benchmarking

Co

verag

e (

x)

TEV / EBITDA

8.3x 11.2x 13.2x 11.8x

3.5x

3.0

4.0

5.0

6.0

OldCEQP

NewCEQP

G&P T&S Alerian(3)

Leverag

e (

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

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Execution Drives Significant Upside Return Opportunity

Strong Liquidity / No near-term maturities

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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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