Strong execution drives FY 2018 net income of $67.0 million and
adjusted EBITDA
1
of $420.1 million; Exceeding
FY 2018 guidance targets
2019E adjusted EBITDA
1
guidance range of
$460 million to $490 million; mid-point implies 13% year-over-year
growth from FY 2018
Growth capital of $275 million to $325 million expected to drive 15%
DCF per unit growth through FY 2020
Arrow achieves record daily crude oil gathering volumes of 102,800
barrels per day, record natural gas gathering volumes of 77.7 MMcf per
day and record water gathering volumes of 61,600 barrels of water per
day in January 2019
HOUSTON--(BUSINESS WIRE)--
Crestwood Equity Partners LP (NYSE: CEQP) (“Crestwood”) reported today
its financial and operating results for the three months ended December
31, 2018.
Fourth Quarter and Full-Year 2018 Highlights
1
-
Fourth quarter 2018 net income of $59.6 million, compared to a net
loss of $119.6 million in fourth quarter 2017; Full-year net income of
$67.0 million, compared to a net loss of $166.6 million in 2017
-
Fourth quarter 2018 Adjusted EBITDA of $114.1 million, compared to
$110.9 million in the fourth quarter 2017; Full-year Adjusted EBITDA
of $420.1 million, compared to $395.4 million in 2017
-
Fourth quarter 2018 distributable cash flow to common unitholders of
$64.3 million; The fourth quarter 2018 coverage ratio was
approximately 1.51x
-
Ended 2018 with approximately $1.8 billion in total debt and a 4.25x
leverage ratio. Crestwood has substantial liquidity available under
its $1.25 billion revolver with $578 million drawn as of December 31,
2018
-
Paid fourth quarter 2018 cash distribution of $0.60 per common unit,
or $2.40 per common unit on an annualized basis, on February 14, 2019,
to unitholders of record as of February 7, 2019
Management Commentary
“Throughout 2018, Crestwood stayed committed to our strategy of
investing in accretive projects across our core growth assets while
focusing on capital efficiency and maintaining strict financial
discipline to drive value for unitholders. As a result, our assets
generated full-year 2018 Adjusted EBITDA of over $420 million, exceeding
the high end of our guidance range and consensus estimates, and resulted
in strong fourth quarter coverage and leverage ratios of 1.51x and
4.25x, respectively,” said Robert G. Phillips, Chairman, President and
Chief Executive Officer of Crestwood’s general partner. “We remain
confident in our ability to generate a 15% annual growth rate in EBITDA
and DCF per unit through 2020 by executing on the expansion
opportunities currently in our portfolio which can be funded with excess
cash flow, revolver borrowings and joint venture contributions while we
continue to focus on further building our balance sheet strength.”
Mr. Phillips continued, “Beginning in 2017, Crestwood committed to
invest approximately $850 million in a 3-year capital program to
organically grow our franchise gathering and processing positions in the
Bakken, Powder River Basin and Delaware Basin systems. These much-needed
infrastructure expansions were supported by strong producer activity,
increased well performance and improved breakeven economics for our
customers despite significant commodity volatility during this period.
By year-end 2019, Crestwood expects our capital investments to result in
incremental EBITDA of approximately $160 million from 2017, implying the
realization of an approximately 5.5x investment multiple. Looking beyond
2019, we see continued growth potential across our core oil-weighted
basins through the continued development of full midstream value chain
facilities and services in our footprint and the opportunity to
consolidate our joint venture partners and third party facilities in the
regions that we operate as production volumes from stacked shale plays
grow and change over time.”
“Finally, Crestwood’s capital allocation will continue to be dedicated
toward prudent investments in accretive, high return capital projects
that meet our strict investment hurdles. As we execute our current set
of investment opportunities we will stay dedicated to maintaining solid
financial metrics. While there is significant debate in the industry
today about the allocation of capital and excess cash flow, our strategy
is clear. Crestwood plans to maintain our current distribution
throughout the 2019 investment cycle using excess cash flow for
reinvestment and increasing coverage ratio. Once we achieve our targeted
leverage ratio between 3.5x and 4.0x in 2020, we will reevaluate
distribution growth. Our goal is to generate long-term value for our
investors and we believe maintaining balance sheet strength, financial
flexibility, and funding expansions with cash flow from operations and
joint venture partners, is the appropriate capital allocation strategy
in the current market environment.”
Fourth Quarter 2018 Segment Results and Outlook
Gathering and Processing segment EBITDA totaled $80.9 million in the
fourth quarter 2018, compared to $74.3 million in the fourth quarter
2017. During the fourth quarter 2018, segment EBITDA increased as a
result of a 16% increase in processing volumes, a 45% increase in
produced water volumes and a 19% reduction in Marcellus and Fayetteville
O&M expenses from the fourth quarter 2017. During the full-year 2018,
natural gas gathering volumes increased 5%, crude oil gathering volumes
were relatively flat, and produced water gathering volumes increased by
31%. In 2019, Crestwood expects volume growth across all three products
as gathering system debottlenecking completed in 2018 and processing
expansion projects alleviate system constraints and will provide
producers with full midstream support to achieve 2019 development plans.
Storage and Transportation segment EBITDA totaled $13.7 million in the
fourth quarter 2018, compared to $21.1 million in the fourth quarter
2017, which included a one-time deficiency payment of $6.7 million
Crestwood received related to the COLT Hub in 2017. Segment EBITDA in
2017 excludes a $57 million non-cash loss on contingent consideration
recorded in 2017 related to Crestwood’s Stagecoach equity investment.
Fourth quarter 2018 natural gas storage and transportation volumes
averaged 1.95 Bcf/d, compared to 1.99 Bcf/d in the fourth quarter 2017.
During 2018, the Storage and Transportation segment benefited from the
step-up in cash distribution at the Stagecoach joint venture and
improved basin fundamentals at the COLT Hub rail facility. Effective
July 1, 2018, Crestwood began receiving a 40% cash distribution from the
Stagecoach joint venture and will begin receiving the final distribution
step-up of 50% in July 2019, which will result in an estimated $10
million in incremental EBITDA, or an increase of 20% over 2018. At the
COLT Hub, daily rail loading volumes increased 142% from the fourth
quarter 2017 driven by wider WTI to Brent spreads, increased production
volumes across the Bakken and favorable economics for Bakken crude with
refinery customers in the East and West Coast markets. In 2019,
Crestwood anticipates similar market conditions at the COLT Hub as a
result of a combination of (i) strong production growth across the
Bakken; (ii) tightening pipeline capacity; and (iii) COLT Hub’s access
to multiple supply sources that position the facility to capture market
share.
Marketing, Supply and Logistics segment EBITDA totaled $20.3 million in
the fourth quarter 2018, compared to $14.4 million in the fourth quarter
2017. Both periods exclude the non-cash change in fair value of
commodity inventory-related derivative contracts and goodwill and other
impairments recorded in 2017. During the fourth quarter 2018,
Crestwood’s northeast NGL team benefitted from the seasonal spreads
captured from low-cost storage inventories built throughout 2018 as a
result of increased NGL supplies from various high-growth regions and
regional pipeline project delays. Additionally, Crestwood’s crude
marketing team utilized excess storage capacity and transportation
assets to capture low-risk, high-margin opportunities created by
widening of the WTI to Bakken basis differentials and contango oil
market in the fourth quarter. As Crestwood continues to expand its
processing assets in the Bakken, Powder River Basin and Delaware Basin,
Crestwood expects its MS&L segment to continue to support the G&P
segment through its extensive network of trucking, rail and terminal
assets that will provide its producer customers flow assurance and
premium market access.
Combined O&M and G&A expenses, net of non-cash unit based compensation,
in the fourth quarter 2018 were $44.5 million compared to $50.9 million
in the fourth quarter 2017. Crestwood reduced combined O&M and G&A
expenses by approximately $6.4 million, or 13%, primarily driven by
Crestwood’s efforts to streamline its MS&L segment operations (including
the sale of Crestwood’s West Coast and US Salt businesses) and lower
personnel expenses.
Fourth Quarter 2018 Business Update and FY 2019 Outlook
Bakken Update
During the fourth quarter 2018, the Arrow system averaged crude oil
volumes of 82.6 MBbls/d, 1% higher than fourth quarter 2017, while
natural gas volumes of 68.6 MMcf/d and produced water volumes of 53.8
MBbls/d, both increased 45%, respectively, over fourth quarter 2017. As
of January 2019, the Arrow system achieved daily record gathering
volumes of 102.8 MBbls/d of crude oil, 77.7 MMcf/d of natural gas and
61.6 MBbls/d of produced water. During the fourth quarter 2018,
producers on the Arrow system connected 21 wells resulting in 54 total
well connections in 2018. Following, the completion of a majority of the
system debottlenecking projects in 2018, Crestwood expects to connect
approximately 30 new wells in the first quarter 2019 and approximately
100 new wells by the end of 2019. FY 2019 completion activity is
expected to be driven by WPX Energy and XTO Energy, both of which
primarily utilize Arrow’s DAPL interconnect to deliver barrels to the
LLS market.
In 2019, Crestwood expects to invest capital in the Bakken to complete
the Bear Den II processing plant, current Arrow debottlenecking projects
and expand the Arrow water gathering system as a result of the new
Enerplus Corporation (“Enerplus”) produced water agreement. The
processing expansion will increase Crestwood’s total processing capacity
to 150 MMcf/d and is scheduled to be completed in the third quarter
2019. Once the expansion is placed into service, Crestwood will
immediately begin processing 100% of the natural gas gathered on the
Arrow system. As a result, Crestwood expects cash flow from Arrow to
step-up meaningfully in the second half of the year. Additionally, in
fourth quarter 2018, Crestwood entered into a new commercial agreement
with an existing Arrow customer, Enerplus, to expand the Arrow produced
water gathering system by approximately 30 MBbls/d. Crestwood expects to
invest approximately $60 million across 2019 and 2020 on the water
system expansion. On the basis of Enerplus’ forecasted water volumes and
pace of development, this implies a 4x project build multiple.
During 2018, the COLT Hub rail facility outperformed internal
expectations as favorable market conditions drove fourth quarter 2018
average rail loading volumes of 55.8 MBbls/d, a 142% increase, compared
to 23.1 MBbls/d in the fourth quarter 2017. As a result of increased
rail loading demand in the basin, Crestwood has begun to enter into 6 to
12 month loading contracts with East and West coast customers sourcing
Bakken crude oil. Additionally, Crestwood has seen an increase in NGL
loading demand and expects the COLT Hub will serve as a valuable
facility to transport NGLs out of the basin as incremental processing
plants are placed into service throughout 2019.
Powder River Basin Update
During the fourth quarter 2018, the Jackalope system averaged gathering
volumes of 125.5 MMcf/d, an increase of 77%, compared to 70.8 MMcf/d in
the fourth quarter 2017. Crestwood expects continued volume growth on
the system as Chesapeake Energy (“Chesapeake”) has recently committed to
maintaining a five rig program targeting the prolific Turner formation
throughout 2019 and continues to evaluate adding a sixth rig in 2019 to
further delineate and test other production benches, such as the
Niobrara and Parkman. As a result, exit rate system volumes are expected
to double by year-end 2019. In fourth quarter 2018, the previously
announced Bucking Horse plant expansion from 120 MMcf/d to 145 MMcf/d
was successfully placed into service. In conjunction with these capital
expansions, Crestwood and Williams previously announced an extension of
its gathering and processing acreage dedication agreement with
Chesapeake by ten years, through 2037, under existing terms.
In 2019, Crestwood expects to invest capital in the Powder River Basin
to expand the Bucking Horse processing plant and Jackalope gas gathering
system to total capacities of 345 MMcf/d during 2019 and 2020 to
accommodate Chesapeake’s development plans. Crestwood has recently
assumed project management responsibilities for the Bucking Horse Phase
2 expansion. The Powder River Basin is expected to be Crestwood’s second
largest growth driver in 2019 and 2020 due to strong producer economics,
reservoir quality and strong forecasted volume growth in the basin by
Chesapeake and notable offset producers.
Delaware Basin Update
During fourth quarter 2018, Crestwood’s Delaware Basin gathering assets
averaged natural gas volumes of 182 MMcf/d, a 63% increase compared to
111 MMcf/d in fourth quarter 2017. Gathering volumes in the Delaware
Basin increased as a result of continued Nautilus system volume growth
in the fourth quarter 2018. Currently, there are five active rigs
operating on Crestwood’s Delaware Basin gathering systems and Crestwood
expects increased volumes in the second half of 2019 as the Orla plant
NGL residue outlet volumes benefit from more favorable transportation
and fractionation pricing to the Gulf Coast markets through Crestwood’s
contract with Chevron Phillips.
In 2019, Crestwood expects to invest capital in the Delaware Basin on
Nautilus system expansions and well connections. Crestwood continues to
advance commercial discussions with on-system and off-set producers to
provide midstream services that would include produced water gathering
and disposal and new natural gas gathering and processing.
2019 Financial Guidance
Based upon the business update and outlook noted above, Crestwood’s 2019
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 $105 to $135 million
-
Adjusted EBITDA of $460 million to $490 million
-
Contribution by operating segment is set forth below:
|
|
|
|
|
|
$US millions
|
|
|
|
|
Adj. EBITDA Range
|
Operating Segment
|
|
|
|
|
Low
|
|
|
|
High
|
Gathering & Processing
|
|
|
|
|
$385
|
|
-
|
|
$405
|
Storage & Transportation
|
|
|
|
|
85
|
|
-
|
|
90
|
Marketing, Supply & Logistics
|
|
|
|
|
55
|
|
-
|
|
60
|
Less: Corporate G&A
|
|
|
|
|
(65)
|
|
|
|
(65)
|
FY 2019 Totals
|
|
|
|
|
$460
|
|
-
|
|
$490
|
|
|
|
|
|
|
|
|
|
|
-
Distributable cash flow available to common unitholders of $245
million to $275 million
-
Full-year 2019 coverage ratio of 1.4x to 1.6x
-
Full-year 2019 leverage ratio between 4.0x and 4.5x
-
Growth project capital spending and joint venture contributions in the
range of $275 million to $325 million
-
Maintenance capital spending in the range of $20 million to $25 million
Capitalization and Liquidity Update
Crestwood invested approximately $125 million in consolidated growth
capital projects and joint venture contributions during the fourth
quarter 2018 and approximately $332 million during 2018. As of December
31, 2018, Crestwood had approximately $1.8 billion of debt outstanding,
comprised of $1.2 billion of fixed-rate senior notes and $578 million
outstanding under its $1.25 billion revolving credit facility.
Crestwood’s leverage ratio was 4.25x as of December 31, 2018. Based on
the current outlook for 2019, Crestwood expects to continue to utilize
excess retained DCF, significant availability under its revolving credit
facility, and evaluate non-core asset divestitures to fund its 2019
capital program. Crestwood currently has 71.3 million preferred units
outstanding (par value of $9.13 per unit) which pay a fixed-rate annual
cash distribution of 9.25%, payable quarterly.
Sustainability Program Update
During the fourth quarter, Crestwood made significant progress in the
implementation of an MLP industry leading sustainability program.
Crestwood’s commitment to sustainability is demonstrated by the
formation of a Board of Directors level Sustainability committee in the
fourth quarter 2018 which provides governance oversight and will ensure
that environmental, social and governance risks are incorporated into
its long-term business strategy. Recently, Crestwood completed a
Materiality Assessment that identified key content to address in its
2018 report and remains on track to publish its inaugural sustainability
report, in accordance with the Global Reporting Initiative, in June
2019. For up to date information on Crestwood’s on-going commitment to
sustainability please visit www.crestwoodlp.com/sustainability.
Upcoming Conference Participation
Crestwood’s management will participate in the following upcoming
investor conferences. Prior to the start of each conference, new
presentation materials may be posted to the Investors section of
Crestwood’s website at www.crestwoodlp.com.
-
JPMorgan Global High Yield & Leveraged Finance Conference on February
25–27, 2019 in Miami, FL
-
Barclays Midstream Corporate Access Day on March 6, 2019 in New York,
NY
-
Scotia Howard Weil 47th Annual Energy Conference on March
27, 2019in New Orleans, LA
2018 K-1 Tax Packages
Crestwood’s K-1 tax packages are expected to be made available online
and mailed the week of Monday, March 11, 2019.
2018 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, 2018
on February 22, 2019. 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.
Non-GAAP Financial Measures
Adjusted EBITDA and 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 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; gathering, storage, terminalling
and marketing of crude oil; and gathering and disposal of produced water.
1 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,
|
|
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
Gathering and processing
|
|
|
$
|
108.6
|
|
|
$
|
479.7
|
|
|
|
$
|
946.6
|
|
|
$
|
1,686.4
|
|
Storage and transportation
|
|
|
4.3
|
|
|
12.5
|
|
|
|
17.1
|
|
|
37.2
|
|
Marketing, supply and logistics
|
|
|
655.4
|
|
|
754.3
|
|
|
|
2,689.4
|
|
|
2,155.5
|
|
Related party
|
|
|
0.1
|
|
|
0.4
|
|
|
|
1.0
|
|
|
1.8
|
|
Total revenues
|
|
|
768.4
|
|
|
1,246.9
|
|
|
|
3,654.1
|
|
|
3,880.9
|
|
Costs of products/services sold
|
|
|
610.7
|
|
|
1,103.1
|
|
|
|
3,129.4
|
|
|
3,374.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
Operations and maintenance
|
|
|
29.8
|
|
|
32.6
|
|
|
|
125.8
|
|
|
136.0
|
|
General and administrative
|
|
|
15.3
|
|
|
24.9
|
|
|
|
88.1
|
|
|
96.5
|
|
Depreciation, amortization and accretion
|
|
|
39.9
|
|
|
46.5
|
|
|
|
168.7
|
|
|
191.7
|
|
Loss on long-lived assets, net
|
|
|
0.9
|
|
|
59.3
|
|
|
|
28.6
|
|
|
65.6
|
|
Goodwill impairment
|
|
|
—
|
|
|
38.8
|
|
|
|
—
|
|
|
38.8
|
|
Loss on contingent consideration
|
|
|
—
|
|
|
57.0
|
|
|
|
—
|
|
|
57.0
|
|
|
|
|
85.9
|
|
|
259.1
|
|
|
|
411.2
|
|
|
585.6
|
|
Operating income (loss)
|
|
|
71.8
|
|
|
(115.3
|
)
|
|
|
113.5
|
|
|
(79.4
|
)
|
Earnings from unconsolidated affiliates, net
|
|
|
13.8
|
|
|
18.6
|
|
|
|
53.3
|
|
|
47.8
|
|
Interest and debt expense, net
|
|
|
(25.4
|
)
|
|
(24.6
|
)
|
|
|
(99.2
|
)
|
|
(99.4
|
)
|
Loss on modification/extinguishment of debt
|
|
|
(0.9
|
)
|
|
—
|
|
|
|
(0.9
|
)
|
|
(37.7
|
)
|
Other income, net
|
|
|
0.2
|
|
|
0.9
|
|
|
|
0.4
|
|
|
1.3
|
|
Income (loss) before income taxes
|
|
|
59.5
|
|
|
(120.4
|
)
|
|
|
67.1
|
|
|
(167.4
|
)
|
(Provision) benefit for income taxes
|
|
|
0.1
|
|
|
0.8
|
|
|
|
(0.1
|
)
|
|
0.8
|
|
Net income (loss)
|
|
|
59.6
|
|
|
(119.6
|
)
|
|
|
67.0
|
|
|
(166.6
|
)
|
Net income attributable to non-controlling partners
|
|
|
4.1
|
|
|
6.5
|
|
|
|
16.2
|
|
|
25.3
|
|
Net income (loss) attributable to Crestwood Equity Partners LP
|
|
|
$
|
55.5
|
|
|
$
|
(126.1
|
)
|
|
|
$
|
50.8
|
|
|
$
|
(191.9
|
)
|
Net income attributable to preferred units
|
|
|
15.0
|
|
|
15.0
|
|
|
|
60.1
|
|
|
62.5
|
|
Net income (loss) attributable to partners
|
|
|
$
|
40.5
|
|
|
$
|
(141.1
|
)
|
|
|
$
|
(9.3
|
)
|
|
$
|
(254.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Common unitholders' interest in net income (loss)
|
|
|
$
|
40.5
|
|
|
$
|
(141.1
|
)
|
|
|
$
|
(9.3
|
)
|
|
$
|
(254.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per limited partner unit:
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
|
|
|
$
|
0.57
|
|
|
$
|
(2.01
|
)
|
|
|
$
|
(0.13
|
)
|
|
$
|
(3.64
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average limited partners’ units outstanding (in thousands):
|
Basic and Diluted
|
|
|
71,217
|
|
|
70,274
|
|
|
|
71,205
|
|
|
69,839
|
|
|
CRESTWOOD EQUITY PARTNERS LP
Selected Balance Sheet Data
(in millions)
(unaudited)
|
|
|
|
December 31,
|
|
|
|
2018
|
|
|
2017
|
Cash
|
|
|
$
|
0.9
|
|
|
|
$
|
1.3
|
|
|
|
|
|
|
|
Outstanding debt:
|
|
|
|
|
|
|
Revolving Credit Facility
|
|
|
$
|
578.2
|
|
|
|
$
|
318.2
|
Senior Notes
|
|
|
1,200.0
|
|
|
|
1,200.0
|
Other
|
|
|
1.5
|
|
|
|
2.4
|
Subtotal
|
|
|
1,779.7
|
|
|
|
1,520.6
|
Less: deferred financing costs, net
|
|
|
26.4
|
|
|
|
28.4
|
Total debt
|
|
|
$
|
1,753.3
|
|
|
|
$
|
1,492.2
|
|
|
|
|
|
|
|
Crestwood Equity Partners LP partners'
capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total partners' capital
|
|
|
$
|
2,033.8
|
|
|
|
$
|
2,180.5
|
Common units outstanding
|
|
|
71.7
|
|
|
|
70.7
|
|
CRESTWOOD EQUITY PARTNERS LP
Reconciliation of Non-GAAP Financial Measures
(in millions)
(unaudited)
|
|
|
|
Three Months Ended
December 31,
|
|
|
Year Ended December 31,
|
|
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
EBITDA
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
59.6
|
|
|
$
|
(119.6
|
)
|
|
|
$
|
67.0
|
|
|
$
|
(166.6
|
)
|
Interest and debt expense, net
|
|
|
25.4
|
|
|
24.6
|
|
|
|
99.2
|
|
|
99.4
|
|
Loss on modification/extinguishment of debt
|
|
|
0.9
|
|
|
—
|
|
|
|
0.9
|
|
|
37.7
|
|
Provision (benefit) for income taxes
|
|
|
(0.1
|
)
|
|
(0.8
|
)
|
|
|
0.1
|
|
|
(0.8
|
)
|
Depreciation, amortization and accretion
|
|
|
39.9
|
|
|
46.5
|
|
|
|
168.7
|
|
|
191.7
|
|
EBITDA
(a)
|
|
|
$
|
125.7
|
|
|
$
|
(49.3
|
)
|
|
|
$
|
335.9
|
|
|
$
|
161.4
|
|
Significant items impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
Unit-based compensation charges
|
|
|
0.6
|
|
|
6.6
|
|
|
|
28.5
|
|
|
25.5
|
|
Loss on long-lived assets, net
|
|
|
0.9
|
|
|
59.3
|
|
|
|
28.6
|
|
|
65.6
|
|
Goodwill impairment
|
|
|
—
|
|
|
38.8
|
|
|
|
—
|
|
|
38.8
|
|
Loss on contingent consideration
|
|
|
—
|
|
|
57.0
|
|
|
|
—
|
|
|
57.0
|
|
Earnings from unconsolidated affiliates, net
|
|
|
(13.8
|
)
|
|
(18.6
|
)
|
|
|
(53.3
|
)
|
|
(47.8
|
)
|
Adjusted EBITDA from unconsolidated affiliates, net
|
|
|
25.7
|
|
|
25.4
|
|
|
|
95.6
|
|
|
80.3
|
|
Change in fair value of commodity inventory-related derivative
contracts
|
|
|
(25.3
|
)
|
|
(10.3
|
)
|
|
|
(18.3
|
)
|
|
2.2
|
|
Significant transaction and environmental related costs and other
items
|
|
|
0.3
|
|
|
2.0
|
|
|
|
3.1
|
|
|
12.4
|
|
Adjusted EBITDA
(a)
|
|
|
$
|
114.1
|
|
|
$
|
110.9
|
|
|
|
$
|
420.1
|
|
|
$
|
395.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributable Cash Flow
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (a)
|
|
|
$
|
114.1
|
|
|
$
|
110.9
|
|
|
|
$
|
420.1
|
|
|
$
|
395.4
|
|
Cash interest expense (b) |
|
|
(26.0
|
)
|
|
(23.5
|
)
|
|
|
(97.4
|
)
|
|
(95.1
|
)
|
Maintenance capital expenditures (c) |
|
|
(3.9
|
)
|
|
(5.9
|
)
|
|
|
(20.6
|
)
|
|
(22.0
|
)
|
Adjusted EBITDA from unconsolidated affiliates, net
|
|
|
(25.7
|
)
|
|
—
|
|
|
|
(95.6
|
)
|
|
—
|
|
Distributable cash flow from unconsolidated affiliates
|
|
|
24.1
|
|
|
—
|
|
|
|
90.5
|
|
|
—
|
|
(Provision) benefit for income taxes
|
|
|
0.1
|
|
|
0.8
|
|
|
|
(0.1
|
)
|
|
0.8
|
|
Deficiency payments
|
|
|
—
|
|
|
(6.7
|
)
|
|
|
—
|
|
|
(6.1
|
)
|
Distributable cash flow attributable to CEQP
|
|
|
82.7
|
|
|
75.6
|
|
|
|
296.9
|
|
|
273.0
|
|
Distributions to preferred
|
|
|
(15.1
|
)
|
|
(15.0
|
)
|
|
|
(60.1
|
)
|
|
(30.0
|
)
|
Distributions to Niobrara Preferred
|
|
|
(3.3
|
)
|
|
(3.8
|
)
|
|
|
(13.2
|
)
|
|
(15.2
|
)
|
Distributable cash flow attributable to CEQP common
(d)
|
|
|
$
|
64.3
|
|
|
$
|
56.8
|
|
|
|
$
|
223.6
|
|
|
$
|
227.8
|
|
|
|
|
(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, the change in fair value of
commodity inventory-related derivative contracts, costs associated
with the realignment of our operations (including our Marketing,
Supply and Logistics operational realignment and other cost savings
initiatives), 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 alternatives 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)
|
|
Beginning in 2018, distributable cash flow is defined as Adjusted
EBITDA, adjusted for cash interest expense, maintenance capital
expenditures, income taxes, and our proportionate share (based on
the distribution percentage) of our unconsolidated affiliates'
distributable cash flow. In 2017, distributable cash flow was
defined as Adjusted EBITDA, less cash interest expense, maintenance
capital expenditures, income taxes, and changes in deferred revenue
(primarily related to deficiency payments). 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,
|
|
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
EBITDA
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
$
|
52.7
|
|
|
$
|
27.7
|
|
|
|
$
|
253.6
|
|
|
$
|
255.9
|
|
Net changes in operating assets and liabilities
|
|
|
50.9
|
|
|
64.9
|
|
|
|
46.9
|
|
|
(0.3
|
)
|
Amortization of deferred financing costs
|
|
|
(1.4
|
)
|
|
(1.8
|
)
|
|
|
(6.8
|
)
|
|
(7.2
|
)
|
Interest and debt expense, net
|
|
|
25.4
|
|
|
24.6
|
|
|
|
99.2
|
|
|
99.4
|
|
Unit-based compensation charges
|
|
|
(0.6
|
)
|
|
(6.6
|
)
|
|
|
(28.5
|
)
|
|
(25.5
|
)
|
Loss on long-lived assets, net
|
|
|
(0.9
|
)
|
|
(59.3
|
)
|
|
|
(28.6
|
)
|
|
(65.6
|
)
|
Goodwill impairment
|
|
|
—
|
|
|
(38.8
|
)
|
|
|
—
|
|
|
(38.8
|
)
|
Loss on contingent consideration
|
|
|
—
|
|
|
(57.0
|
)
|
|
|
—
|
|
|
(57.0
|
)
|
Earnings from unconsolidated affiliates, net, adjusted for cash
distributions received
|
|
|
(0.8
|
)
|
|
(2.4
|
)
|
|
|
(0.5
|
)
|
|
0.1
|
|
Deferred income taxes
|
|
|
0.5
|
|
|
1.4
|
|
|
|
0.7
|
|
|
2.1
|
|
Provision (benefit) for income taxes
|
|
|
(0.1
|
)
|
|
(0.8
|
)
|
|
|
0.1
|
|
|
(0.8
|
)
|
Other non-cash expense
|
|
|
—
|
|
|
(1.2
|
)
|
|
|
(0.2
|
)
|
|
(0.9
|
)
|
EBITDA
(a)
|
|
|
$
|
125.7
|
|
|
$
|
(49.3
|
)
|
|
|
$
|
335.9
|
|
|
$
|
161.4
|
|
Unit-based compensation charges
|
|
|
0.6
|
|
|
6.6
|
|
|
|
28.5
|
|
|
25.5
|
|
Loss on long-lived assets, net
|
|
|
0.9
|
|
|
59.3
|
|
|
|
28.6
|
|
|
65.6
|
|
Goodwill impairment
|
|
|
—
|
|
|
38.8
|
|
|
|
—
|
|
|
38.8
|
|
Loss on contingent consideration
|
|
|
—
|
|
|
57.0
|
|
|
|
—
|
|
|
57.0
|
|
Earnings from unconsolidated affiliates, net
|
|
|
(13.8
|
)
|
|
(18.6
|
)
|
|
|
(53.3
|
)
|
|
(47.8
|
)
|
Adjusted EBITDA from unconsolidated affiliates, net
|
|
|
25.7
|
|
|
25.4
|
|
|
|
95.6
|
|
|
80.3
|
|
Change in fair value of commodity inventory-related derivative
contracts
|
|
|
(25.3
|
)
|
|
(10.3
|
)
|
|
|
(18.3
|
)
|
|
2.2
|
|
Significant transaction and environmental related costs and other
items
|
|
|
0.3
|
|
|
2.0
|
|
|
|
3.1
|
|
|
12.4
|
|
Adjusted EBITDA
(a)
|
|
|
$
|
114.1
|
|
|
$
|
110.9
|
|
|
|
$
|
420.1
|
|
|
$
|
395.4
|
|
|
|
|
(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, the change in fair value of
commodity inventory-related derivative contracts, costs associated
with the realignment of our operations (including our Marketing,
Supply and Logistics operational realignment and other cost savings
initiatives), 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 alternatives 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,
|
|
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
Gathering and Processing
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$
|
159.5
|
|
|
$
|
520.3
|
|
|
|
$
|
1,139.1
|
|
|
$
|
1,822.7
|
|
Costs of product/services sold
|
|
|
65.4
|
|
|
430.9
|
|
|
|
767.0
|
|
|
1,480.8
|
|
Operations and maintenance expense
|
|
|
19.0
|
|
|
16.6
|
|
|
|
71.7
|
|
|
68.4
|
|
Loss on long-lived assets, net
|
|
|
(0.9
|
)
|
|
(10.5
|
)
|
|
|
(3.0
|
)
|
|
(14.4
|
)
|
Earnings from unconsolidated affiliates
|
|
|
6.7
|
|
|
11.2
|
|
|
|
22.5
|
|
|
18.9
|
|
Other income, net
|
|
|
—
|
|
|
0.8
|
|
|
|
—
|
|
|
0.8
|
|
EBITDA
|
|
|
$
|
80.9
|
|
|
$
|
74.3
|
|
|
|
$
|
319.9
|
|
|
$
|
278.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Storage and Transportation
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$
|
7.7
|
|
|
$
|
14.5
|
|
|
|
$
|
27.6
|
|
|
$
|
43.9
|
|
Costs of product/services sold
|
|
|
0.1
|
|
|
—
|
|
|
|
0.2
|
|
|
0.3
|
|
Operations and maintenance expense
|
|
|
1.0
|
|
|
0.8
|
|
|
|
3.3
|
|
|
4.2
|
|
Loss on contingent consideration
|
|
|
—
|
|
|
(57.0
|
)
|
|
|
—
|
|
|
(57.0
|
)
|
Earnings from unconsolidated affiliates
|
|
|
7.1
|
|
|
7.4
|
|
|
|
30.8
|
|
|
28.9
|
|
EBITDA
|
|
|
$
|
13.7
|
|
|
$
|
(35.9
|
)
|
|
|
$
|
54.9
|
|
|
$
|
11.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing, Supply and Logistics
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$
|
601.2
|
|
|
$
|
712.1
|
|
|
|
$
|
2,487.4
|
|
|
$
|
2,014.3
|
|
Costs of product/services sold
|
|
|
545.2
|
|
|
672.2
|
|
|
|
2,362.2
|
|
|
1,893.6
|
|
Operations and maintenance expense
|
|
|
9.8
|
|
|
15.2
|
|
|
|
50.8
|
|
|
63.4
|
|
Loss on long-lived assets
|
|
|
(0.6
|
)
|
|
(48.8
|
)
|
|
|
(27.3
|
)
|
|
(48.2
|
)
|
Goodwill impairment
|
|
|
—
|
|
|
(38.8
|
)
|
|
|
—
|
|
|
(38.8
|
)
|
EBITDA
|
|
|
$
|
45.6
|
|
|
$
|
(62.9
|
)
|
|
|
$
|
47.1
|
|
|
$
|
(29.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Total Segment EBITDA
|
|
|
$
|
140.2
|
|
|
$
|
(24.5
|
)
|
|
|
$
|
421.9
|
|
|
$
|
260.4
|
|
Corporate
|
|
|
(14.5
|
)
|
|
(24.8
|
)
|
|
|
(86.0
|
)
|
|
(99.0
|
)
|
EBITDA
|
|
|
$
|
125.7
|
|
|
$
|
(49.3
|
)
|
|
|
$
|
335.9
|
|
|
$
|
161.4
|
|
|
CRESTWOOD EQUITY PARTNERS LP
Operating Statistics
(unaudited)
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December 31,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Gathering and Processing (MMcf/d)
|
|
|
|
|
|
|
|
|
|
Bakken - Arrow
|
|
|
68.6
|
|
|
47.2
|
|
|
66.4
|
|
|
47.7
|
|
Marcellus
|
|
|
331.7
|
|
|
490.8
|
|
|
377.4
|
|
|
423.3
|
|
Barnett
|
|
|
269.9
|
|
|
314.5
|
|
|
277.8
|
|
|
319.2
|
|
Delaware (a) |
|
|
181.6
|
|
|
111.3
|
|
|
155.8
|
|
|
74.3
|
|
PRB Niobrara - Jackalope Gas Gathering(a) |
|
|
125.5
|
|
|
70.8
|
|
|
103.2
|
|
|
59.6
|
|
Other
|
|
|
44.0
|
|
|
50.3
|
|
|
46.5
|
|
|
56.1
|
|
Total gathering volumes
|
|
|
1,021.3
|
|
|
1,084.9
|
|
|
1,027.1
|
|
|
980.2
|
|
Processing volumes
|
|
|
321.7
|
|
|
277.1
|
|
|
294.0
|
|
|
235.5
|
|
Compression volumes
|
|
|
398.0
|
|
|
504.6
|
|
|
446.8
|
|
|
489.4
|
|
Arrow Midstream
|
|
|
|
|
|
|
|
|
|
Bakken Crude oil (MBbls/d)
|
|
|
82.6
|
|
|
82.5
|
|
|
78.3
|
|
|
80.1
|
|
Bakken Water (MBbls/d)
|
|
|
53.8
|
|
|
37.2
|
|
|
46.2
|
|
|
35.4
|
|
|
|
|
|
|
|
|
|
|
|
Storage and Transportation
|
|
|
|
|
|
|
|
|
|
Northeast Storage - firm contracted capacity (Bcf) (a) |
|
|
33.7
|
|
|
32.6
|
|
|
33.2
|
|
|
34.4
|
|
% of operational capacity contracted
|
|
|
97
|
%
|
|
94
|
%
|
|
95
|
%
|
|
99
|
%
|
Firm storage services (MMcf/d) (a) |
|
|
311.3
|
|
|
371.5
|
|
|
361.3
|
|
|
363.8
|
|
Interruptible storage services (MMcf/d) (a) |
|
|
0.7
|
|
|
1.2
|
|
|
1.9
|
|
|
2.3
|
|
Northeast Transportation - firm contracted capacity (MMcf/d) (a) |
|
|
1,565.0
|
|
|
1,488.8
|
|
|
1,544.6
|
|
|
1,465.4
|
|
% of operational capacity contracted
|
|
|
86
|
%
|
|
82
|
%
|
|
84
|
%
|
|
82
|
%
|
Firm services (MMcf/d) (a) |
|
|
1,223.6
|
|
|
1,270.1
|
|
|
1,312.9
|
|
|
1,311.0
|
|
Interruptible services (MMcf/d) (a) |
|
|
36.3
|
|
|
54.6
|
|
|
45.4
|
|
|
75.2
|
|
Gulf Coast Storage - firm contracted capacity (Bcf) (a) |
|
|
29.3
|
|
|
28.2
|
|
|
28.0
|
|
|
28.3
|
|
% of operational capacity contracted
|
|
|
76
|
%
|
|
73
|
%
|
|
73
|
%
|
|
74
|
%
|
Firm storage services (MMcf/d) (a) |
|
|
313.5
|
|
|
204.0
|
|
|
332.4
|
|
|
225.8
|
|
Interruptible services (MMcf/d) (a) |
|
|
62.2
|
|
|
92.1
|
|
|
112.1
|
|
|
83.3
|
|
COLT Hub
|
|
|
|
|
|
|
|
|
|
Rail loading (MBbls/d)
|
|
|
55.8
|
|
|
23.1
|
|
|
47.9
|
|
|
37.4
|
|
Outbound pipeline (MBbls/d) (b) |
|
|
18.7
|
|
|
10.4
|
|
|
14.3
|
|
|
13.2
|
|
|
|
|
|
|
|
|
|
|
|
Marketing, Supply and Logistics
|
|
|
|
|
|
|
|
|
|
NGL Operations
|
|
|
|
|
|
|
|
|
|
NGL volumes sold or processed (MBbls/d)
|
|
|
136.7
|
|
|
145.1
|
|
|
128.1
|
|
|
124.3
|
|
NGL volumes trucked (MBbls/d)
|
|
|
36.8
|
|
|
52.4
|
|
|
40.7
|
|
|
52.6
|
|
Crude Operations
|
|
|
|
|
|
|
|
|
|
Crude barrels trucked (MBbls/d)
|
|
|
8.9
|
|
|
4.6
|
|
|
8.3
|
|
|
5.5
|
|
|
|
|
(a)
|
|
Represents 50% owned joint venture, operational data reported at
100%.
|
(b)
|
|
Represents only throughput leaving the terminal.
|
|
CRESTWOOD EQUITY PARTNERS LP
Full Year 2019 Adjusted EBITDA and Distributable Cash Flow
Guidance
Reconciliation to Net Income
(in millions)
(unaudited)
|
|
|
|
Expected 2019 Range
|
|
|
|
Low - High
|
Net income
|
|
|
$105 - $135
|
Interest and debt expense, net
|
|
|
110 - 115
|
Depreciation, amortization and accretion
|
|
|
165 - 170
|
Unit-based compensation charges
|
|
|
25 - 30
|
Earnings from unconsolidated affiliates
|
|
|
(65) - (70)
|
Adjusted EBITDA from unconsolidated affiliates
|
|
|
110 - 115
|
Adjusted EBITDA
|
|
|
$460 - $490
|
|
|
|
|
Cash interest expense (a) |
|
|
(115) - (120)
|
Maintenance capital expenditures (b) |
|
|
(20) - (25)
|
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)
|
|
|
$245 - $275
|
|
|
|
(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:
https://www.businesswire.com/news/home/20190219005285/en/
Crestwood Equity Partners LP
Investor Contact
Josh
Wannarka, 713-380-3081
josh.wannarka@crestwoodlp.com
Vice
President, Investor Relations
Source: Crestwood Equity Partners LP