Rich Gas Operations

Marcellus Shale

The Marcellus assets, located in Harrison and Doddridge Counties, West Virginia, include approximately 40 miles of low pressure natural gas gathering systems and 43,000 horsepower of gas compression equipment which gather and compress natural gas production from Antero Resources Appalachian, Inc. Crestwood’s Marcellus systems redeliver Antero’s production to MarkWest Energy Partners' Sherwood Gas Processing Plant for processing of rich-gas volumes and to various regional pipeline systems including Columbia, Dominion and Equitrans for unprocessed, dry-gas volumes. We have a 20-year gas gathering and compression agreement with Antero which provides for an area of dedication (AOD) of approximately 136,000 net acres. The contract also provides Crestwood with annual minimum volume throughput guarantees through 2018, from the AOD, and a right of first offer on future midstream development by Antero on acreage adjacent to the AOD in Doddridge County. Additionally, Crestwood provides compression services to Antero under a minimum five-year term compression services agreement acquired from Enerven on December 28, 2012. As of December 31, 2012, Crestwood’s Marcellus Shale systems were gathering approximately 400 MMcf/d of natural gas from 112 Antero Marcellus Shale producing wells. Additionally, Crestwood’s Enerven compressor stations had capacity of approximately 300 MMcf/d and were being fully utilized. Crestwood has an active system expansion program for 2013 including additional low pressure gathering systems and compression stations sufficient to increase total field-wide capacity to approximately 500 MMcf/d.

Barnett Shale

The Cowtown system (including the recently acquired Devon West Johnson County system), located in the "rich gas window" of the Barnett Shale play, consists of approximately 444 miles of low pressure gathering system and the Cowtown and Corvette gas processing plants with combined processing capacity of 325 MMcf/d. We gather and process rich natural gas production from Devon Energy, Quicksilver Resources, Empire Pipeline and Chesapeake Energy under various long term contracts. Gas production on the Cowtown system is processed to extract NGLs and deliver the residue gas to third-party intrastate pipelines including Energy Transfer, Enterprise Products and Atmos. We transport the extracted NGL’s for our producers via our 22-mile NGL pipeline that runs from the Cowtown and Corvette Plants to interconnections with the Chevron and Louis Dreyfus NGL pipelines. Additionally, we own the 100 MMcf/d West Johnson County gas processing plant that can be redeployed to new infrastructure opportunities.

Granite Wash

The Granite Wash assets, located in Roberts County, Texas, are in the unconventional Granite Wash play of the historic Anadarko basin. The Granite Wash is considered by many producers and industry analysts as one of North America’s “most economic” unconventional resource plays due to its multiple zones, low finding and development costs and significant liquid-rich gas supplies. The assets include 34 miles of pipelines that gather rich gas volumes from Sabine Production Co (formerly LeNorman Operating), Chesapeake Energy and Linn Energy. The Indian Creek gathering system feeds a 36 MMcf/d cryogenic processing plant for NGL extraction with residue natural gas delivered into ANR Pipeline and Northern Natural Gas and NGLs delivered into Enterprise Products' Mid America Pipeline System. Due to increased drilling and development activity in the area, Crestwood is currently evaluating an expansion of the Indian Creek processing plant in 2013.

Avalon Shale and Bone Spring

Crestwood's Las Animas system, located in Eddy County, New Mexico, consists of 47 miles of low pressure gathering pipelines. The system is well positioned to compete for emerging Avalon Shale, Bone Spring and Delaware Basin rich-gas volumes. Acreage in the area is being developed by Bass Enterprises, Chevron, Devon and Cimarex. Crestwood is evaluating installation of a rich-gas gathering system and processing plant in the area with residue gas to be delivered into El Paso Natural Gas, Enterprise, Southern Union and DCP Midstream.

Dry Gas Operations

Barnett Shale

The Alliance system consists of 39 miles of pipelines that gather natural gas to the Alliance Station, where it is compressed, treated for the removal of carbon dioxide (CO2) and dehydrated. The gas is then delivered to Crosstex Energy Services and Energy Transfer. This system has capacity to compress, treat and dehydrate up to 300 MMcf/d. Production on the Alliance system is primarily from Quicksilver Resources.

The Lake Arlington system consists of 10 miles of pipelines that gather natural gas to a central station where it is compressed, dehydrated and delivered into Energy Transfer. This low-pressure gathering system can gather, compress and dehydrate up to 230 MMcf/d. Production from the Lake Arlington system comes from Quicksilver Resources and Chesapeake Energy.

Fayetteville Shale

The Fayetteville systems are located in the heart of the Fayetteville Shale in Van Buren, Faulkner, Conway and White Counties, Arkansas. The assets are comprised of five separate systems known as Wilson Creek, Prairie Creek, Twin Groves, Woolly Hollow and Rose Bud totaling approximately 161 miles of combined pipelines with total capacity in excess of 500 MMcf/d. Volumes are gathered to central compression and treating facilities on each system for redelivery into the Ozark, Boardwalk and Fayetteville Express pipeline systems. Production on Crestwood’s Fayetteville systems is gathered under long term contracts with BHP Billiton, BP, Chesapeake Energy and XTO Exxon Mobil.

Haynesville and Bossier Shale

The Sabine System, located in Sabine Parish, Louisiana, serves the Toledo Bend South field area which has production from the Haynesville Shale, Bossier Shale, James Lime and Fredericksburg formations. The Sabine gathering system consists of 55 miles of high pressure gathering pipeline and CO2 treating facilities covering approximately 20,000 acres dedicated under long-term, fixed fee gathering and treating contracts with Comstock Resources, Chesapeake Energy and Forest Oil are dedicated under long-term fixed fee gathering and treating contracts. Additionally, the Sabine System has interconnects with other Haynesville gatherers and provides third-party transportation to either Gulf South Pipeline or Tennessee Gas Pipeline.