Crestwood Announces Fourth Quarter 2017 Financial and Operating Results; Provides 2018 Growth Outlook
Solid execution in 2017 delivers full-year results at top-end of
increased guidance ranges
Bakken, Delaware Basin and Powder River Basin G&P expansion
projects and producer activity drive meaningful cash flow growth in 2018
2018 Adjusted EBITDA range of $390 million to $420 million;
implies 10% mid-point year-over-year growth1
Growth capital of $250 million to $300 million fully funded with
excess cash flow, revolver borrowings and joint venture capital
Crestwood Equity Partners LP (NYSE: CEQP) (“Crestwood”) reported today
its financial and operating results for the three months ended December
31, 2017.
Fourth Quarter and Full-Year 2017 Highlights2
-
Fourth quarter 2017 net loss of $119.6 million, compared to net loss
of $64.3 million in fourth quarter 2016
-
Fourth quarter 2017 Adjusted EBITDA of $110.9 million, compared to
$125.6 million in the fourth quarter 2016
-
Fourth quarter 2017 distributable cash flow to common unitholders of
$56.8 million after reflecting the cash distribution payments to the
Class A preferred units; The fourth quarter 2017 coverage ratio was
approximately 1.4x
-
Ended 2017 with approximately $1.5 billion in total debt and a 4.1x
leverage ratio. Crestwood has substantial liquidity available under
its $1.5 billion revolver with $318 million drawn as of December 31,
2017
-
Declared fourth quarter 2017 cash distribution of $0.60 per common
unit, or $2.40 per common unit on an annualized basis, paid on
February 14, 2018 to unitholders of record as of February 7, 2018
Management Commentary
“2017 was a year of execution and accomplishment for Crestwood as we
generated Adjusted EBITDA of $395 million, achieving the upper range of
our increased guidance of $380 million to $400 million. We continue to
benefit from improving fundamentals and the need for more midstream
infrastructure in the regions that we operate. Our project management
teams brought into service both the Delaware Basin Nautilus gathering
system and the Bakken Bear Den processing plant under budget and without
any safety incidents, we maintained our financial discipline with
leverage and coverage ratios of 4.1x and 1.4x, respectively, and we
successfully divested a non-core asset to proactively fund our 2018
capital program. Within Crestwood’s portfolio, we are investing in our
highest return expansion projects and these assets are generating
significant net cash flow growth relative to our more mature assets
which have largely stabilized,” stated Robert G. Phillips, Chairman,
President and Chief Executive Officer of Crestwood’s general partner.
“As we look to 2018, we have many exciting expansion projects underway
that will drive margin growth through additional Crestwood service
offerings and further volume increases from our producer customers’
long-term development programs. The Orla Express pipeline and processing
plant is on target to be in service July 1, 2018 and will support
natural gas volume growth from both the Willow Lake and Nautilus
gathering systems in the core of the Delaware Permian basin. We have
commenced pre-construction activities on the phase two expansion of our
Bakken Bear Den plant that will allow Crestwood to process 100% of the
natural gas on the Arrow system, substantially reduce flaring on the
Fort Berthold Indian Reservation and provide substantial uplift to 2019
and 2020 cash flows. Having deployed proceeds from assets sales
completed in 2016 and 2017 to reduce leverage and reinvest in these high
quality organic growth projects, Crestwood expects year-over-year cash
flow growth to resume in 2018.”
Mr. Phillips continued, “In 2018, we’re expecting another great year as
we continue to focus on maintaining balance sheet strength, strong
coverage metrics and re-invest excess cash flow into growing our
business. We remain committed to our long-term financial targets of 4.0x
leverage and 1.2x distribution coverage. As new projects come online and
cash flows ramp in 2018 and 2019, we will continue to evaluate the best
use of cash flow and we anticipate further evaluating our distribution
payout with the potential of resuming distribution growth in the second
half of 2018.”
Fourth Quarter 2017 Segment Results and Outlook
Gathering and Processing segment EBITDA totaled $74.3 million in the
fourth quarter 2017, compared to $61.9 million in the fourth quarter
2016. Segment EBITDA increased during the quarter due to volume growth
across Crestwood’s Bakken, Delaware Basin, Powder River Basin and SW
Marcellus systems. During the fourth quarter 2017, average natural gas
gathering volumes were 1.1 billion cubic feet per day (“Bcf/d”), or 23%
above fourth quarter 2016, gas processing volumes were 277 million cubic
feet per day (“MMcf/d”), or 28% above fourth quarter 2016, compression
volumes were 505 MMcf/d, or 23% above fourth quarter 2016, crude oil
gathering volumes were 83 thousand barrels per day (“MBbls/d”), or 29%
above fourth quarter 2016, and produced water volumes were 37 MBbls/d,
or 24% above fourth quarter 2016. Crestwood expects continued volume
growth in 2018 as producers maintain robust development activity driven
by stronger well results, improved efficiencies in drilling and
completion techniques and improving commodity prices.
Storage and Transportation segment EBTIDA totaled $21.1 million in the
fourth quarter 2017, excluding a loss on contingent consideration
related to the Stagecoach JV further described below, compared to $33.8
million in the fourth quarter 2016, excluding goodwill impairments
further described below. During the fourth quarter 2017, natural gas
storage and transportation volumes averaged 2.0 Bcf/d, compared to 1.9
Bcf/d in the fourth quarter 2016. Importantly, S&T segment volumes
increased 19% on an annual basis from 1.7 Bcf/d to 2.1 Bcf/d largely as
a result of increased production in the northeast Marcellus and
increased hub services activity at Tres Palacios driven primarily by
increasing LNG deliveries on the Texas gulf coast. Despite benefiting
from stronger natural gas storage fundamentals in the Northeast during
the fourth quarter 2017, S&T segment EBITDA decreased due to the
expiration of two rail loading contracts and overall compressed margins
at the COLT Hub. Beginning in the third quarter 2018, the S&T segment
will benefit from the 5% cash distribution step-up provision in the
Stagecoach Gas Services joint venture agreement with Consolidated Edison.
Marketing, Supply and Logistics segment EBITDA totaled $24.7 million in
the fourth quarter 2017, compared to $22.1 million in the fourth quarter
2016. Both periods exclude non-cash goodwill impairments and net losses
on long-lived assets further described below. During the fourth quarter
2017, Crestwood completed the divestiture of US Salt, LLC for
approximately $225 million. US Salt contributed $23 million of segment
EBITDA in 2017 prior to its sale. In 2018, Crestwood expects the MS&L
segment to benefit from colder than normal winter weather in the first
quarter 2018 which has increased demand for propane and butane marketing
and logistics services in the northeast region. Additionally, Crestwood
expects the MS&L segment to benefit from increased marketing and
transportation volumes from Crestwood’s expanding processing
capabilities in the Bakken and Delaware Basin regions.
Combined O&M and G&A expenses, net of non-cash unit based compensation
in the fourth quarter 2017 were $50.9 million compared to $50.4 million
in the fourth quarter 2016. For the full-year 2017, Crestwood reduced
combined O&M and G&A expenses by $20 million, or 9%, by reducing
personnel expenses, improving maintenance practices and utilizing
strategic purchasing and professional service agreements. In 2018,
Crestwood expects combined O&M and G&A to increase approximately 2%-5%
to reflect new assets being brought into service in the second half of
2017 and 2018.
Fourth Quarter 2017 Business Update and 2018 Outlook
Bakken – Arrow Gathering & Processing
During the fourth quarter 2017, the Arrow system averaged crude oil
volumes of 82.5 MBbls/d, natural gas volumes of 47.2 MMcf/d and produced
water volumes of 37.2 MBbls/d, an increase over fourth quarter 2016 of
29%, 4% and 24% respectively. Arrow system volumes were higher than
anticipated due to accelerated development activities by producers in
2017 driven by strong basin economics and exceptional reservoir quality
on the Fort Berthold Indian Reservation. During the fourth quarter 2017,
Crestwood invested approximately $42 million of capital to continue
expanding natural gas and water handling capabilities on the Arrow
System, which included the purchase of an additional salt water disposal
well. In November 2017, Crestwood commissioned the Bear Den Plant phase
1, a gas processing plant in Watford City, ND adding 30 MMcf/d of
processing to support increasing gas volumes on the Arrow system. The
Bear Den Plant is a two-phase solution that will substantially alleviate
current curtailments from its third-party processor as well as current
flared gas volumes on the Arrow system.
In 2018, Crestwood plans to invest approximately $235 million in the
Bakken to continue expanding gathering system capacity and to begin
phase two construction of the Bear Den plant to meet producers’ drilling
schedules in 2018 and 2019. The system expansion and debottlenecking
projects scheduled in 2018 will expand Arrow’s natural gas gathering
capacity to 150 MMcf/d, or a 50% increase, and produced water gathering
capacity to 75 MBbls/d, or a 90% increase, alleviating system
constraints by the second half 2018. Beginning in the second quarter
2018, Crestwood expects to invest approximately $185 million on the Bear
Den Plant phase two expansion, of which $105 million will be incurred in
2018, that will provide Arrow producers with a combined 150 MMcf/d of
gas processing capacity. Based on producers development schedules and
large inventory of remaining well locations, Crestwood expects to bring
the phase two expansion in-service in the third quarter 2019 at a
sub-6.0x project build multiple. Crestwood continues to actively
evaluate multiple NGL takeaway options out of the basin and expects to
have the optimal solution in place prior to the commissioning of the
phase two expansion. The Arrow system is expected to be Crestwood’s
largest driver of cash flow growth with a forecasted EBITDA CAGR between
15% and 20% over the next five years.
Delaware Basin Update
During the fourth quarter 2017, Crestwood’s Delaware Basin gathering
assets averaged natural gas volumes of 111.3 MMcf/d, a 161% increase
over the fourth quarter 2016, and processing volumes averaged 67.7
MMcf/d, an 80% increase over the fourth quarter 2016. Delaware Basin
gathering and processing volumes increased as a result of increased
producer development activity and the addition of the Nautilus gathering
system in June 2017. Crestwood expects continued gathering volume growth
of approximately 50% in the Delaware Basin in 2018 as producers begin to
accelerate drilling programs as Crestwood brings incremental processing
capacity at Orla into service in the second half 2018. Delaware Basin
gathering volumes are currently averaging over 140 MMcf/d.
In 2018, Crestwood Permian Basin Holdings LLC (“CPJV”), a 50/50 joint
venture between Crestwood and First Reserve, plans to invest
approximately $135 million, of which approximately $35 million is net to
Crestwood, in the Delaware Basin to expand both gathering and processing
capacity. The CPJV is currently constructing the Orla plant, a 200
MMcf/d cryogenic gas processing plant located in Reeves County, TX, the
Orla Express Pipeline, a 33 mile, 20 inch high pressure line connecting
the existing Willow Lake system in Eddy County, NM to the Orla plant,
and the Nautilus-to-Orla Pipeline, a 28 mile, 20 inch high pressure line
connecting the Nautilus system to the Orla plant. The Orla plant and its
pipeline connections are scheduled to be in service early in the second
half of 2018. In 2018, CPJV plans to expand and make incremental
connections to new well pads for existing customers on the Willow Lake
and Nautilus gathering systems, and once the Orla plant is in-service,
Crestwood will be well-positioned to compete for additional undedicated
third-party volumes spanning from Eddy County, NM into Culberson,
Reeves, Loving and Ward counties, TX.
Powder River Basin Update
During the fourth quarter of 2017, the Jackalope system averaged 70.8
MMcf/d of gas gathering and 66.0 MMcf/d of processing, an increase of
44% and 40%, respectively, over fourth quarter 2016. The Jackalope
system benefited from increased drilling activity and prolific well
results that exceeded type curve expectations during delineation tests
in the Turner, Mowry and Sussex formations. Chesapeake Energy is
currently running three rigs and plans to add a fourth in the first half
of 2018 which is expected to drive an 80% year-over-year increase in oil
production within our dedicated acreage. Crestwood is very optimistic
about the Powder River Basin’s growth outlook and is working closely
with Chesapeake and other third party producers to develop system
expansions to meet anticipated production growth in 2019 and beyond.
Potential expansion opportunities include the addition of a new 200
MMcf/d cryogenic gas processing plant, expansion of the gas gathering
system, and the development of a new crude gathering system.
2018 Financial Guidance
Based upon the business update and outlook noted above, Crestwood’s 2018
guidance is provided below. These projections are subject to risks and
uncertainties as described in the “Forward-Looking Statements” section
at the end of this release.
-
Net income of $35 to $65 million
-
Adjusted EBITDA of $390 million to $420 million
-
Contribution by operating segment is set forth below:
|
|
|
|
|
|
|
|
|
|
$US millions
|
|
Adj. EBITDA Range
|
|
|
|
|
|
|
|
|
|
|
Operating Segment
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
|
|
|
Gathering & Processing
|
|
$335
|
-
|
$355
|
|
|
|
|
|
|
|
|
|
|
Storage & Transportation
|
|
70
|
-
|
75
|
|
|
|
|
|
|
|
|
|
|
Marketing, Supply & Logistics
|
|
50
|
-
|
55
|
|
|
|
|
|
|
|
|
|
|
Less: Corporate G&A
|
|
(65)
|
|
(65)
|
|
|
|
|
|
|
|
|
|
|
FY 2018 Totals
|
|
$390
|
-
|
$420
|
-
Distributable cash flow available to common unitholders of $195
million to $225 million
-
Full-year 2018 coverage ratio of 1.2x to 1.3x
-
Full-year 2018 leverage ratio between 4.0x and 4.5x
-
Growth project capital spending and joint venture contributions in the
range of $250 million to $300 million
-
Maintenance capital spending in the range of $15 million to $20 million
Robert T. Halpin, Executive Vice President and Chief Financial Officer,
commented, “2017 marked another year of operational and financial
execution for Crestwood as we delivered results at the upper end of our
increased financial guidance for Adjusted EBITDA and distributable cash
flow and achieved our long-term targets for leverage and coverage.
Looking into 2018, Crestwood remains committed to maintaining our
targeted distribution coverage and leverage goals as we complete our
organic growth projects in the Bakken and Delaware Basin. Our growth
capital is fully funded with excess cash flow, revolver borrowings and
capital from joint venture partners, and as a result, we do not expect
to access the equity markets to fund our current project backlog. As
expected, 2017 was a trough year for cash flow and as we execute our
business plan, we expect 2018 cash flow will be approximately 10% above
2017, adjusted for the divestiture of US Salt. As we bring our highly
accretive organic capital projects online we anticipate significant cash
flow ramps in the latter half of 2018 and 2019 and believe Crestwood
will be in a position to re-evaluate its distribution growth objectives
in the second half 2018.”
Capitalization and Liquidity Update
As of December 31, 2017, Crestwood had approximately $1.5 billion of
debt outstanding, comprised of $1.2 billion of fixed-rate senior notes
and $318 million outstanding under its $1.5 billion revolving credit
facility. Crestwood’s leverage ratio was 4.1x as of December 31, 2017.
Crestwood currently has 71.3 million preferred units outstanding (par
value of $9.13 per unit) which pay an annual distribution of 9.25%,
payable quarterly. Crestwood elected to begin making cash payments on
the preferred units beginning with the distribution attributable to the
third quarter 2017.
Upcoming Conference Participation
Crestwood’s management will participate in the following upcoming
investor conferences. Prior to the start of each conference,
presentation materials will be posted to the Investors section of
Crestwood’s website at www.crestwoodlp.com.
-
Barclays Select Series: MLP Corporate Access Days on February 27th –
February 28th in New York, NY
-
Morgan Stanley MLP/Diversified Natural Gas, Utilities & Clean Tech
Conference on February 27th – February 28th in New York, NY
-
J.P. Morgan 2018 Global High Yield and Leveraged Finance Conference on
February 26th – February 28th in Miami, FL
-
Evercore ISI Energy/Power Summit on March 13th in Houston, TX
-
Scotia Howard Weil Energy Conference on March 26th – March 28th in New
Orleans, LA
2017 K-1 Tax Packages
Crestwood’s K-1 tax packages are expected to be made available online
and mailed the week of Monday, March 5, 2018.
2017 Annual Report Form 10-K
Crestwood plans to file its annual report on Form 10-K with the
Securities and Exchange Commission for the year ended December 31, 2017
on February 23, 2018. The 10-K report will be available to view, print
or download on the Investors page of Crestwood’s website at www.crestwoodlp.com.
Crestwood will also provide a printed copy of the annual report on Form
10-K, free of charge upon request. Such requests should be directed in
writing via email to investorrelations@crestwoodlp.com
or via mail to Investor Relations, 811 Main St., Suite 3400, Houston, TX
77002
Earnings Conference Call Schedule
Management will host a conference call for investors and analysts of
Crestwood today at 9:00 a.m. Eastern Time (8:00 a.m. Central Time) which
will be broadcast live over the Internet. Investors will be able to
connect to the webcast via the “Investors” page of Crestwood’s website
at www.crestwoodlp.com.
Please log in at least 10 minutes in advance to register and download
any necessary software. A replay will be available shortly after the
call for 90 days.
Impairments and Other Losses
Generally Accepted Accounting Principles (“GAAP”) requires Crestwood to
analyze the recoverability of goodwill and long-lived assets on periodic
basis. As a result of this analysis, Crestwood recorded net goodwill and
long-lived asset impairments of $98 million during the fourth quarter of
2017, primarily related to its NGL storage, terminalling and West Coast
operations, and $84 million during the fourth quarter of 2016, primarily
related to its COLT Hub and trucking assets. These impairments primarily
resulted from decreasing forecasted cash flows from these assets when
taking into consideration continued commodity price weakness and its
impact on the midstream industry and Crestwood’s customers in these
areas.
In addition, GAAP requires Crestwood to record a non-cash charge through
net income related to potential future payments on assets previously
acquired or disposed of. As a result during the fourth quarter of 2017
we recorded a $57 million non-cash loss on contingent consideration that
we may be required to pay Consolidated Edison in the future related to
our Stagecoach joint venture.
Non-GAAP Financial Measures
Adjusted EBITDA and adjusted distributable cash flow are non-GAAP
financial measures. The accompanying schedules of this news release
provide reconciliations of these non-GAAP financial measures to their
most directly comparable financial measures calculated and presented in
accordance with GAAP. Our non-GAAP financial measures should not be
considered as alternatives to GAAP measures such as net income or
operating income or any other GAAP measure of liquidity or financial
performance.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning
of the U.S. Private Securities Litigation Reform Act of 1995 and Section
21E of the Securities and Exchange Act of 1934. The words “expects,”
“believes,” anticipates,” “plans,” “will,” “shall,” “estimates,” and
similar expressions identify forward-looking statements, which are
generally not historical in nature. Forward-looking statements are
subject to risks and uncertainties and are based on the beliefs and
assumptions of management, based on information currently available to
them. Although Crestwood believes that these forward-looking statements
are based on reasonable assumptions, it can give no assurance that any
such forward-looking statements will materialize. Important factors that
could cause actual results to differ materially from those expressed in
or implied from these forward-looking statements include the risks and
uncertainties described in Crestwood’s reports filed with the Securities
and Exchange Commission, including its Annual Report on Form 10-K and
its subsequent reports, which are available through the SEC’s EDGAR
system at www.sec.gov
and on our website. Readers are cautioned not to place undue reliance on
forward-looking statements, which reflect management’s view only as of
the date made, and Crestwood assumes no obligation to update these
forward-looking statements.
About Crestwood Equity Partners LP
Houston, Texas, based Crestwood Equity Partners LP (NYSE: CEQP) is a
master limited partnership that owns and operates midstream businesses
in multiple unconventional shale resource plays across the United
States. Crestwood Equity is engaged in the gathering, processing,
treating, compression, storage and transportation of natural gas;
storage, transportation, terminalling, and marketing of NGLs; and
gathering, storage, terminalling and marketing of crude oil.
1 Adjusted for the divestiture of US Salt LLC in the fourth
quarter 2017.
2 Please see non-GAAP reconciliation table included at the
end of the press release.
|
CRESTWOOD EQUITY PARTNERS LP
Consolidated Statements of Operations
(in millions, except unit and per unit data)
(unaudited)
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
Year Ended December 31,
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gathering and processing
|
|
|
|
|
$
|
479.7
|
|
|
|
$
|
330.6
|
|
|
|
$
|
1,686.4
|
|
|
|
$
|
1,116.2
|
|
Storage and transportation
|
|
|
|
|
12.5
|
|
|
|
33.8
|
|
|
|
37.2
|
|
|
|
165.3
|
|
Marketing, supply and logistics
|
|
|
|
|
754.3
|
|
|
|
430.1
|
|
|
|
2,155.5
|
|
|
|
1,236.4
|
|
Related party
|
|
|
|
|
0.4
|
|
|
|
0.5
|
|
|
|
1.8
|
|
|
|
2.6
|
|
Total revenues
|
|
|
|
|
1,246.9
|
|
|
|
795.0
|
|
|
|
3,880.9
|
|
|
|
2,520.5
|
|
Total costs of products/services sold
|
|
|
|
|
1,103.1
|
|
|
|
645.0
|
|
|
|
3,374.7
|
|
|
|
1,925.1
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations and maintenance
|
|
|
|
|
32.6
|
|
|
|
38.2
|
|
|
|
136.0
|
|
|
|
158.1
|
|
General and administrative
|
|
|
|
|
24.9
|
|
|
|
18.0
|
|
|
|
96.5
|
|
|
|
88.2
|
|
Depreciation, amortization and accretion
|
|
|
|
|
46.5
|
|
|
|
52.6
|
|
|
|
191.7
|
|
|
|
229.6
|
|
|
|
|
|
|
104.0
|
|
|
|
108.8
|
|
|
|
424.2
|
|
|
|
475.9
|
|
Other operating expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on long-lived assets, net
|
|
|
|
|
(59.3
|
)
|
|
|
(30.8
|
)
|
|
|
(65.6
|
)
|
|
|
(65.6
|
)
|
Goodwill impairment
|
|
|
|
|
(38.8
|
)
|
|
|
(52.9
|
)
|
|
|
(38.8
|
)
|
|
|
(162.6
|
)
|
Loss on contingent consideration
|
|
|
|
|
(57.0
|
)
|
|
|
—
|
|
|
|
(57.0
|
)
|
|
|
—
|
|
Operating loss
|
|
|
|
|
(115.3
|
)
|
|
|
(42.5
|
)
|
|
|
(79.4
|
)
|
|
|
(108.7
|
)
|
Earnings from unconsolidated affiliates, net
|
|
|
|
|
18.6
|
|
|
|
5.4
|
|
|
|
47.8
|
|
|
|
31.5
|
|
Interest and debt expense, net
|
|
|
|
|
(24.6
|
)
|
|
|
(27.2
|
)
|
|
|
(99.4
|
)
|
|
|
(125.1
|
)
|
Gain (loss) on modification/extinguishment of debt
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(37.7
|
)
|
|
|
10.0
|
|
Other income, net
|
|
|
|
|
0.9
|
|
|
|
0.1
|
|
|
|
1.3
|
|
|
|
0.5
|
|
Loss before income taxes
|
|
|
|
|
(120.4
|
)
|
|
|
(64.2
|
)
|
|
|
(167.4
|
)
|
|
|
(191.8
|
)
|
(Provision) benefit for income taxes
|
|
|
|
|
0.8
|
|
|
|
(0.1
|
)
|
|
|
0.8
|
|
|
|
(0.3
|
)
|
Net loss
|
|
|
|
|
(119.6
|
)
|
|
|
(64.3
|
)
|
|
|
(166.6
|
)
|
|
|
(192.1
|
)
|
Net income attributable to non-controlling partners
|
|
|
|
|
6.5
|
|
|
|
6.2
|
|
|
|
25.3
|
|
|
|
24.2
|
|
Net loss attributable to Crestwood Equity Partners LP
|
|
|
|
|
$
|
(126.1
|
)
|
|
|
$
|
(70.5
|
)
|
|
|
$
|
(191.9
|
)
|
|
|
$
|
(216.3
|
)
|
Net income attributable to preferred units
|
|
|
|
|
15.0
|
|
|
|
12.1
|
|
|
|
62.5
|
|
|
|
28.7
|
|
Net loss attributable to partners
|
|
|
|
|
$
|
(141.1
|
)
|
|
|
$
|
(82.6
|
)
|
|
|
$
|
(254.4
|
)
|
|
|
$
|
(245.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common unitholders' interest in net loss
|
|
|
|
|
$
|
(141.1
|
)
|
|
|
$
|
(82.6
|
)
|
|
|
$
|
(254.4
|
)
|
|
|
$
|
(245.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per limited partner unit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
|
|
|
$
|
(2.01
|
)
|
|
|
$
|
(1.20
|
)
|
|
|
$
|
(3.64
|
)
|
|
|
$
|
(3.55
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average limited partners’ units outstanding (in thousands):
|
Basic and diluted
|
|
|
|
|
70,274
|
|
|
|
69,060
|
|
|
|
69,839
|
|
|
|
69,017
|
|
|
|
CRESTWOOD EQUITY PARTNERS LP
Selected Balance Sheet Data
(in millions)
(unaudited)
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
2017
|
|
|
|
2016
|
Cash
|
|
|
|
|
1.3
|
|
|
|
|
$
|
1.6
|
|
|
|
|
|
|
|
|
|
|
Outstanding debt:
|
|
|
|
|
|
|
|
|
|
Crestwood Midstream Partners LP
|
|
|
|
|
|
|
|
|
|
Revolving Credit Facility
|
|
|
|
|
$
|
318.2
|
|
|
|
|
$
|
77.0
|
Senior Notes
|
|
|
|
|
1,200.0
|
|
|
|
|
1,475.2
|
Other
|
|
|
|
|
2.4
|
|
|
|
|
5.5
|
Subtotal
|
|
|
|
|
1,520.6
|
|
|
|
|
1,557.7
|
Less: deferred financing costs, net
|
|
|
|
|
28.4
|
|
|
|
|
34.0
|
Total debt
|
|
|
|
|
$
|
1,492.2
|
|
|
|
|
$
|
1,523.7
|
|
|
|
|
|
|
|
|
|
|
Total partners' capital
|
|
|
|
|
$
|
2,180.5
|
|
|
|
|
$
|
2,539.0
|
|
|
|
|
|
|
|
|
|
|
Crestwood Equity Partners LP partners'
capital
|
|
|
|
|
|
|
|
|
|
Common units outstanding
|
|
|
|
|
70.7
|
|
|
|
|
69.5
|
|
|
CRESTWOOD EQUITY PARTNERS LP
Reconciliation of Non-GAAP Financial Measures
(in millions)
(unaudited)
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
Year Ended December 31,
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
|
$
|
(119.6
|
)
|
|
|
$
|
(64.3
|
)
|
|
|
$
|
(166.6
|
)
|
|
|
$
|
(192.1
|
)
|
Interest and debt expense, net
|
|
|
|
|
24.6
|
|
|
|
27.2
|
|
|
|
99.4
|
|
|
|
125.1
|
|
(Gain) loss on modification/extinguishment of debt
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
37.7
|
|
|
|
(10.0
|
)
|
Provision (benefit) for income taxes
|
|
|
|
|
(0.8
|
)
|
|
|
0.1
|
|
|
|
(0.8
|
)
|
|
|
0.3
|
|
Depreciation, amortization and accretion
|
|
|
|
|
46.5
|
|
|
|
52.6
|
|
|
|
191.7
|
|
|
|
229.6
|
|
EBITDA (a)
|
|
|
|
|
$
|
(49.3
|
)
|
|
|
$
|
15.6
|
|
|
|
$
|
161.4
|
|
|
|
$
|
152.9
|
|
Significant items impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unit-based compensation charges
|
|
|
|
|
6.6
|
|
|
|
5.8
|
|
|
|
25.5
|
|
|
|
19.2
|
|
Loss on long-lived assets, net
|
|
|
|
|
59.3
|
|
|
|
30.8
|
|
|
|
65.6
|
|
|
|
65.6
|
|
Goodwill impairment
|
|
|
|
|
38.8
|
|
|
|
52.9
|
|
|
|
38.8
|
|
|
|
162.6
|
|
Loss on contingent consideration
|
|
|
|
|
57.0
|
|
|
|
—
|
|
|
|
57.0
|
|
|
|
—
|
|
Earnings from unconsolidated affiliates, net
|
|
|
|
|
(18.6
|
)
|
|
|
(5.4
|
)
|
|
|
(47.8
|
)
|
|
|
(31.5
|
)
|
Adjusted EBITDA from unconsolidated affiliates, net
|
|
|
|
|
25.4
|
|
|
|
19.7
|
|
|
|
80.3
|
|
|
|
61.1
|
|
Change in fair value of commodity inventory-related derivative
contracts
|
|
|
|
|
(10.3
|
)
|
|
|
5.8
|
|
|
|
2.2
|
|
|
|
14.1
|
|
Significant transaction and environmental related costs and other
items
|
|
|
|
|
2.0
|
|
|
|
0.4
|
|
|
|
12.4
|
|
|
|
11.6
|
|
Adjusted EBITDA (a)
|
|
|
|
|
$
|
110.9
|
|
|
|
$
|
125.6
|
|
|
|
$
|
395.4
|
|
|
|
$
|
455.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributable Cash Flow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (a)
|
|
|
|
|
$
|
110.9
|
|
|
|
$
|
125.6
|
|
|
|
$
|
395.4
|
|
|
|
$
|
455.6
|
|
Cash interest expense (b)
|
|
|
|
|
(23.5
|
)
|
|
|
(25.2
|
)
|
|
|
(95.1
|
)
|
|
|
(117.7
|
)
|
Maintenance capital expenditures (c)
|
|
|
|
|
(5.9
|
)
|
|
|
(4.4
|
)
|
|
|
(22.0
|
)
|
|
|
(13.3
|
)
|
(Provision) benefit for income taxes
|
|
|
|
|
0.8
|
|
|
|
(0.1
|
)
|
|
|
0.8
|
|
|
|
(0.3
|
)
|
Deficiency payments
|
|
|
|
|
(6.7
|
)
|
|
|
(14.3
|
)
|
|
|
(6.1
|
)
|
|
|
(7.2
|
)
|
Distributable cash flow attributable to CEQP
|
|
|
|
|
75.6
|
|
|
|
81.6
|
|
|
|
273.0
|
|
|
|
317.1
|
|
Distributions to preferred
|
|
|
|
|
(15.0
|
)
|
|
|
—
|
|
|
|
(30.0
|
)
|
|
|
—
|
|
Distributions to Niobrara Preferred
|
|
|
|
|
(3.8
|
)
|
|
|
(3.8
|
)
|
|
|
(15.2
|
)
|
|
|
(15.2
|
)
|
Distributable cash flow attributable to CEQP common (d)
|
|
|
|
|
$
|
56.8
|
|
|
|
$
|
77.8
|
|
|
|
$
|
227.8
|
|
|
|
$
|
301.9
|
|
|
(a)
|
|
EBITDA is defined as income before income taxes, plus debt-related
costs (interest and debt expense, net, and gain (loss) on
modification/extinguishment of debt) and depreciation,
amortization and accretion expense. Adjusted EBITDA considers the
adjusted earnings impact of our unconsolidated affiliates by
adjusting our equity earnings or losses from our unconsolidated
affiliates to reflect our proportionate share (based on the
distribution percentage) of their EBITDA, excluding impairments.
Adjusted EBITDA also considers the impact of certain significant
items, such as unit-based compensation charges, gains and losses
on long-lived assets, impairments of long-lived assets and
goodwill, gains and losses on acquisition-related contingencies,
third party costs incurred related to potential and completed
acquisitions, certain environmental remediation costs, certain
costs related to our historical cost savings initiatives, the
change in fair value of commodity inventory-related derivative
contracts, costs associated with our 2017 realignment of our
Marketing, Supply and Logistics operations and related
consolidation and relocation of our corporate offices, and other
transactions identified in a specific reporting period. The change
in fair value of commodity inventory-related derivative contracts
is considered in determining Adjusted EBITDA given that the timing
of recognizing gains and losses on these derivative contracts
differs from the recognition of revenue for the related underlying
sale of inventory to which these derivatives relate. Changes in
the fair value of other derivative contracts is not considered in
determining Adjusted EBITDA given the relatively short-term nature
of those derivative contracts. EBITDA and Adjusted EBITDA are not
measures calculated in accordance with GAAP, as they do not
include deductions for items such as depreciation, amortization
and accretion, interest and income taxes, which are necessary to
maintain our business. EBITDA and Adjusted EBITDA should not be
considered an alternative to net income, operating cash flow or
any other measure of financial performance presented in accordance
with GAAP. EBITDA and Adjusted EBITDA calculations may vary among
entities, so our computation may not be comparable to measures
used by other companies.
|
(b)
|
|
Cash interest expense less amortization of deferred financing
costs.
|
(c)
|
|
Maintenance capital expenditures are defined as those capital
expenditures which do not increase operating capacity or revenues
from existing levels.
|
(d)
|
|
Distributable cash flow is defined as Adjusted EBITDA, adjusted
for 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 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.
|
|
|
CRESTWOOD EQUITY PARTNERS LP
Reconciliation of Non-GAAP Financial Measures
(in millions)
(unaudited)
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
Year Ended December 31,
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
|
|
$
|
27.7
|
|
|
|
$
|
101.6
|
|
|
|
$
|
255.9
|
|
|
|
$
|
346.1
|
|
Net changes in operating assets and liabilities
|
|
|
|
|
64.9
|
|
|
|
(11.1
|
)
|
|
|
(0.3
|
)
|
|
|
(57.9
|
)
|
Amortization of debt-related deferred costs, discounts and premiums
|
|
|
|
|
(1.8
|
)
|
|
|
(1.8
|
)
|
|
|
(7.2
|
)
|
|
|
(6.9
|
)
|
Interest and debt expense, net
|
|
|
|
|
24.6
|
|
|
|
27.2
|
|
|
|
99.4
|
|
|
|
125.1
|
|
Unit-based compensation charges
|
|
|
|
|
(6.6
|
)
|
|
|
(5.8
|
)
|
|
|
(25.5
|
)
|
|
|
(19.2
|
)
|
Gain (loss) on long-lived assets, net
|
|
|
|
|
(59.3
|
)
|
|
|
(30.8
|
)
|
|
|
(65.6
|
)
|
|
|
(65.6
|
)
|
Goodwill impairment
|
|
|
|
|
(38.8
|
)
|
|
|
(52.9
|
)
|
|
|
(38.8
|
)
|
|
|
(162.6
|
)
|
Loss on contingent consideration
|
|
|
|
|
(57.0
|
)
|
|
|
—
|
|
|
|
(57.0
|
)
|
|
|
—
|
|
Earnings (loss) from unconsolidated affiliates, net, adjusted for
cash distributions received
|
|
|
|
|
(2.4
|
)
|
|
|
(11.5
|
)
|
|
|
0.1
|
|
|
|
(7.6
|
)
|
Deferred income taxes
|
|
|
|
|
1.4
|
|
|
|
2.2
|
|
|
|
2.1
|
|
|
|
3.1
|
|
Provision (benefit) for income taxes
|
|
|
|
|
(0.8
|
)
|
|
|
0.1
|
|
|
|
(0.8
|
)
|
|
|
0.3
|
|
Other non-cash expense
|
|
|
|
|
(1.2
|
)
|
|
|
(1.6
|
)
|
|
|
(0.9
|
)
|
|
|
(1.9
|
)
|
EBITDA (a)
|
|
|
|
|
$
|
(49.3
|
)
|
|
|
$
|
15.6
|
|
|
|
$
|
161.4
|
|
|
|
$
|
152.9
|
|
Unit-based compensation charges
|
|
|
|
|
6.6
|
|
|
|
5.8
|
|
|
|
25.5
|
|
|
|
19.2
|
|
Loss on long-lived assets, net
|
|
|
|
|
59.3
|
|
|
|
30.8
|
|
|
|
65.6
|
|
|
|
65.6
|
|
Goodwill impairment
|
|
|
|
|
38.8
|
|
|
|
52.9
|
|
|
|
38.8
|
|
|
|
162.6
|
|
Loss on contingent consideration
|
|
|
|
|
57.0
|
|
|
|
—
|
|
|
|
57.0
|
|
|
|
—
|
|
Earnings from unconsolidated affiliates, net
|
|
|
|
|
(18.6
|
)
|
|
|
(5.4
|
)
|
|
|
(47.8
|
)
|
|
|
(31.5
|
)
|
Adjusted EBITDA from unconsolidated affiliates, net
|
|
|
|
|
25.4
|
|
|
|
19.7
|
|
|
|
80.3
|
|
|
|
61.1
|
|
Change in fair value of commodity inventory-related derivative
contracts
|
|
|
|
|
(10.3
|
)
|
|
|
5.8
|
|
|
|
2.2
|
|
|
|
14.1
|
|
Significant transaction and environmental related costs and other
items
|
|
|
|
|
2.0
|
|
|
|
0.4
|
|
|
|
12.4
|
|
|
|
11.6
|
|
Adjusted EBITDA (a)
|
|
|
|
|
$
|
110.9
|
|
|
|
$
|
125.6
|
|
|
|
$
|
395.4
|
|
|
|
$
|
455.6
|
|
|
(a)
|
|
EBITDA is defined as income before income taxes, plus debt-related
costs (interest and debt expense, net, and gain (loss) on
modification/extinguishment of debt) and depreciation,
amortization and accretion expense. Adjusted EBITDA considers the
adjusted earnings impact of our unconsolidated affiliates by
adjusting our equity earnings or losses from our unconsolidated
affiliates to reflect our proportionate share (based on the
distribution percentage) of their EBITDA, excluding impairments.
Adjusted EBITDA also considers the impact of certain significant
items, such as unit-based compensation charges, gains and losses
on long-lived assets, impairments of long-lived assets and
goodwill, gains and losses on acquisition-related contingencies,
third party costs incurred related to potential and completed
acquisitions, certain environmental remediation costs, certain
costs related to our historical cost savings initiatives, the
change in fair value of commodity inventory-related derivative
contracts, costs associated with our 2017 realignment of our
Marketing, Supply and Logistics operations and related
consolidation and relocation of our corporate offices, and other
transactions identified in a specific reporting period. The change
in fair value of commodity inventory-related derivative contracts
is considered in determining Adjusted EBITDA given that the timing
of recognizing gains and losses on these derivative contracts
differs from the recognition of revenue for the related underlying
sale of inventory to which these derivatives relate. Changes in
the fair value of other derivative contracts is not considered in
determining Adjusted EBITDA given the relatively short-term nature
of those derivative contracts. EBITDA and Adjusted EBITDA are not
measures calculated in accordance with GAAP, as they do not
include deductions for items such as depreciation, amortization
and accretion, interest and income taxes, which are necessary to
maintain our business. EBITDA and Adjusted EBITDA should not be
considered an alternative to net income, operating cash flow or
any other measure of financial performance presented in accordance
with GAAP. EBITDA and Adjusted EBITDA calculations may vary among
entities, so our computation may not be comparable to measures
used by other companies.
|
|
|
CRESTWOOD EQUITY PARTNERS LP
Segment Data
(in millions)
(unaudited)
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
Year Ended December 31,
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
Gathering and Processing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
$
|
520.3
|
|
|
|
$
|
363.8
|
|
|
|
$
|
1,822.7
|
|
|
|
$
|
1,227.4
|
|
Costs of product/services sold
|
|
|
|
|
430.9
|
|
|
|
284.8
|
|
|
|
1,480.8
|
|
|
|
917.0
|
|
Operations and maintenance expense
|
|
|
|
|
16.6
|
|
|
|
20.9
|
|
|
|
68.4
|
|
|
|
77.0
|
|
Loss on long-lived assets, net
|
|
|
|
|
(10.5
|
)
|
|
|
—
|
|
|
|
(14.4
|
)
|
|
|
(2.0
|
)
|
Goodwill impairment
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(8.6
|
)
|
Earnings from unconsolidated affiliates
|
|
|
|
|
11.2
|
|
|
|
3.8
|
|
|
|
18.9
|
|
|
|
20.3
|
|
Other income, net
|
|
|
|
|
$
|
0.8
|
|
|
|
$
|
—
|
|
|
|
$
|
0.8
|
|
|
|
$
|
—
|
|
EBITDA
|
|
|
|
|
$
|
74.3
|
|
|
|
$
|
61.9
|
|
|
|
$
|
278.8
|
|
|
|
$
|
243.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Storage and Transportation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
$
|
14.5
|
|
|
|
$
|
35.0
|
|
|
|
$
|
43.9
|
|
|
|
$
|
169.5
|
|
Costs of product/services sold
|
|
|
|
|
—
|
|
|
|
0.2
|
|
|
|
0.3
|
|
|
|
5.1
|
|
Operations and maintenance expense
|
|
|
|
|
0.8
|
|
|
|
3.2
|
|
|
|
4.2
|
|
|
|
21.4
|
|
Gain (loss) on long-lived assets
|
|
|
|
|
—
|
|
|
|
0.6
|
|
|
|
—
|
|
|
|
(32.2
|
)
|
Goodwill impairment
|
|
|
|
|
—
|
|
|
|
(31.2
|
)
|
|
|
—
|
|
|
|
(44.9
|
)
|
Loss on contingent consideration
|
|
|
|
|
(57.0
|
)
|
|
|
—
|
|
|
|
(57.0
|
)
|
|
|
—
|
|
Earnings from unconsolidated affiliates
|
|
|
|
|
7.4
|
|
|
|
1.6
|
|
|
|
28.9
|
|
|
|
11.2
|
|
EBITDA
|
|
|
|
|
$
|
(35.9
|
)
|
|
|
$
|
2.6
|
|
|
|
$
|
11.3
|
|
|
|
$
|
77.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing, Supply and Logistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
$
|
712.1
|
|
|
|
$
|
396.2
|
|
|
|
$
|
2,014.3
|
|
|
|
$
|
1,123.6
|
|
Costs of product/services sold
|
|
|
|
|
672.2
|
|
|
|
360.0
|
|
|
|
1,893.6
|
|
|
|
1,003.0
|
|
Operations and maintenance expense
|
|
|
|
|
15.2
|
|
|
|
14.1
|
|
|
|
63.4
|
|
|
|
59.7
|
|
Loss on long-lived assets
|
|
|
|
|
(48.8
|
)
|
|
|
(31.4
|
)
|
|
|
(48.2
|
)
|
|
|
(31.4
|
)
|
Goodwill impairment
|
|
|
|
|
(38.8
|
)
|
|
|
(21.7
|
)
|
|
|
(38.8
|
)
|
|
|
(109.1
|
)
|
EBITDA
|
|
|
|
|
$
|
(62.9
|
)
|
|
|
$
|
(31.0
|
)
|
|
|
$
|
(29.7
|
)
|
|
|
$
|
(79.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Segment EBITDA
|
|
|
|
|
$
|
(24.5
|
)
|
|
|
$
|
33.5
|
|
|
|
$
|
260.4
|
|
|
|
$
|
240.6
|
|
Corporate
|
|
|
|
|
(24.8
|
)
|
|
|
(17.9
|
)
|
|
|
(99.0
|
)
|
|
|
(87.7
|
)
|
EBITDA
|
|
|
|
|
$
|
(49.3
|
)
|
|
|
$
|
15.6
|
|
|
|
$
|
161.4
|
|
|
|
$
|
152.9
|
|
|
|
CRESTWOOD EQUITY PARTNERS LP
Operating Statistics
(unaudited)
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
|
Year Ended December 31,
|
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
2017
|
|
|
|
2016
|
Gathering and Processing (MMcf/d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bakken - Arrow
|
|
|
|
|
47.2
|
|
|
|
|
45.2
|
|
|
|
|
47.7
|
|
|
|
|
43.3
|
|
Marcellus
|
|
|
|
|
490.8
|
|
|
|
|
362.1
|
|
|
|
|
423.3
|
|
|
|
|
406.7
|
|
Barnett
|
|
|
|
|
314.5
|
|
|
|
|
319.6
|
|
|
|
|
319.2
|
|
|
|
|
310.9
|
|
Permian (a)
|
|
|
|
|
111.3
|
|
|
|
|
42.7
|
|
|
|
|
74.3
|
|
|
|
|
37.8
|
|
Powder River Basin (b)
|
|
|
|
|
70.8
|
|
|
|
|
49.0
|
|
|
|
|
59.6
|
|
|
|
|
60.3
|
|
Other
|
|
|
|
|
50.3
|
|
|
|
|
64.4
|
|
|
|
|
56.1
|
|
|
|
|
77.5
|
|
Total gathering volumes
|
|
|
|
|
1,084.9
|
|
|
|
|
883.0
|
|
|
|
|
980.2
|
|
|
|
|
936.5
|
|
Processing volumes
|
|
|
|
|
277.1
|
|
|
|
|
217.0
|
|
|
|
|
235.5
|
|
|
|
|
218.8
|
|
Compression volumes
|
|
|
|
|
504.6
|
|
|
|
|
410.6
|
|
|
|
|
489.4
|
|
|
|
|
463.0
|
|
Arrow Midstream
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bakken Crude oil (MBbls/d)
|
|
|
|
|
82.5
|
|
|
|
|
64.1
|
|
|
|
|
80.1
|
|
|
|
|
61.6
|
|
Bakken Water (MBbls/d)
|
|
|
|
|
37.2
|
|
|
|
|
30.0
|
|
|
|
|
35.4
|
|
|
|
|
27.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Storage and Transportation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northeast Storage - firm contracted capacity (Bcf) (b)
|
|
|
|
|
32.6
|
|
|
|
|
35.8
|
|
|
|
|
34.4
|
|
|
|
|
35.5
|
|
% of operational capacity contracted
|
|
|
|
|
94
|
%
|
|
|
|
100
|
%
|
|
|
|
99
|
%
|
|
|
|
100
|
%
|
Firm storage services (MMcf/d) (b)
|
|
|
|
|
371.5
|
|
|
|
|
242.3
|
|
|
|
|
363.8
|
|
|
|
|
215.5
|
|
Interruptible storage services (MMcf/d) (b)
|
|
|
|
|
1.2
|
|
|
|
|
1.4
|
|
|
|
|
2.3
|
|
|
|
|
11.5
|
|
Northeast Transportation - firm contracted capacity (MMcf/d) (b)
|
|
|
|
|
1,488.8
|
|
|
|
|
1,438.4
|
|
|
|
|
1,465.4
|
|
|
|
|
1,385.2
|
|
% of operational capacity contracted
|
|
|
|
|
82
|
%
|
|
|
|
81
|
%
|
|
|
|
82
|
%
|
|
|
|
81
|
%
|
Firm services (MMcf/d) (b)
|
|
|
|
|
1,270.1
|
|
|
|
|
1,316.0
|
|
|
|
|
1,311.0
|
|
|
|
|
1,154.4
|
|
Interruptible services (MMcf/d) (b)
|
|
|
|
|
54.6
|
|
|
|
|
69.7
|
|
|
|
|
75.2
|
|
|
|
|
101.3
|
|
Gulf Coast Storage - firm contracted capacity (Bcf) (b)
|
|
|
|
|
28.2
|
|
|
|
|
30.4
|
|
|
|
|
28.3
|
|
|
|
|
30.1
|
|
% of operational capacity contracted
|
|
|
|
|
73
|
%
|
|
|
|
79
|
%
|
|
|
|
74
|
%
|
|
|
|
78
|
%
|
Firm storage services (MMcf/d) (b)
|
|
|
|
|
204.0
|
|
|
|
|
227.8
|
|
|
|
|
225.8
|
|
|
|
|
193.1
|
|
Interruptible services (MMcf/d) (b)
|
|
|
|
|
92.1
|
|
|
|
|
26.8
|
|
|
|
|
83.3
|
|
|
|
|
60.9
|
|
COLT Hub
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rail loading (MBbls/d)
|
|
|
|
|
23.1
|
|
|
|
|
84.8
|
|
|
|
|
37.4
|
|
|
|
|
89.6
|
|
Outbound pipeline (MBbls/d) (c)
|
|
|
|
|
10.4
|
|
|
|
|
9.1
|
|
|
|
|
13.2
|
|
|
|
|
11.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing, Supply and Logistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude barrels trucked (MBbls/d)
|
|
|
|
|
4.6
|
|
|
|
|
4.3
|
|
|
|
|
5.5
|
|
|
|
|
8.4
|
|
NGL Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supply & Logistics volumes sold (MBbls/d)
|
|
|
|
|
109.3
|
|
|
|
|
94.1
|
|
|
|
|
91.8
|
|
|
|
|
87.4
|
|
West Coast volumes sold or processed (MBbls/d)
|
|
|
|
|
35.8
|
|
|
|
|
20.7
|
|
|
|
|
32.5
|
|
|
|
|
22.0
|
|
NGL volumes trucked (MBbls/d)
|
|
|
|
|
52.4
|
|
|
|
|
64.4
|
|
|
|
|
52.6
|
|
|
|
|
52.4
|
|
|
(a)
|
|
Beginning in June 2017, represents 50% owned joint venture,
operational data reported is at 100%.
|
(b)
|
|
Represents 50% owned joint venture, operational data reported at
100%.
|
(c)
|
|
Represents only throughput leaving the terminal.
|
|
|
CRESTWOOD EQUITY PARTNERS LP
Full Year 2018 Adjusted EBITDA and Distributable Cash Flow
Guidance
Reconciliation to Net Income
(in millions)
(unaudited)
|
|
|
|
|
|
Expected 2018 Range
|
|
|
|
|
|
Low - High
|
Net income
|
|
|
|
|
$35 - $65
|
Interest and debt expense, net
|
|
|
|
|
102 - 107
|
Depreciation, amortization and accretion
|
|
|
|
|
188
|
Unit-based compensation charges
|
|
|
|
|
25
|
Earnings from unconsolidated affiliates
|
|
|
|
|
(75) - (80)
|
Adjusted EBITDA from unconsolidated affiliates
|
|
|
|
|
110 - 115
|
Adjusted EBITDA
|
|
|
|
|
$390 - $420
|
|
|
|
|
|
|
Cash interest expense (a)
|
|
|
|
|
(95) - (100)
|
Maintenance capital expenditures (b)
|
|
|
|
|
(15) - (20)
|
Adjusted EBITDA from unconsolidated affiliates
|
|
|
|
|
(110) - (115)
|
Distributable cash flow from unconsolidated affiliates
|
|
|
|
|
105 - 110
|
Cash distributions to preferred unitholders (c)
|
|
|
|
|
(75)
|
Distributable cash flow attributable to CEQP (d)
|
|
|
|
|
$195 - $225
|
|
(a)
|
|
Cash interest expense less amortization of deferred financing
costs.
|
(b)
|
|
Maintenance 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 unit holders and Crestwood
Niobrara preferred unitholders.
|
(d)
|
|
Distributable cash flow is defined as Adjusted EBITDA, adjusted
for cash interest expense, maintenance capital expenditures,
income taxes, and our proportionate share of our unconsolidated
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.
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20180220005611/en/
Copyright Business Wire 2018