Crestwood Equity Partners LP — Merger or Acquisition (August 2023)
12 slides from Crestwood Equity Partners LP's merger presentation, Aug 16, 2023
Slide 1: Crestwood to Merge into Energy Transfer
Crestwood to Merge into Energy Transfer August 16, 2023 Filed by Crestwood Equity Partners LP Pursuant to Rule 425 of the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 of the Securities Exchange Act of 1934 Subject Company: Crestwood Equity Partners LP Commission File No.: 001-3466
Slide 2: Company Information and Forward-Looking Statements
Company Information Forward-Looking Statements Contact Information Corporate Headquarters 811 Main Street Suite 3400 Houston, TX 77002 Investor Relations investorrelations@crestwoodlp.com (713) 380-3028 Forward Looking Statements This communication contains “forward-looking statements” within the me
Slide 3: Merger Disclosures
Merger Disclosures Important Information about the Transaction and Where to Find It In connection with the proposed transaction between Energy Transfer LP (“Energy Transfer”) and Crestwood Equity Partners LP (“Crestwood”), Energy Transfer and Crestwood will file relevant materials with the Securitie
Slide 4: Overview of Proposed Transaction
Overview of Proposed Transaction Energy Transfer has executed a definitive agreement to acquire Crestwood at an ~$7.1 Bn enterprise value(1) in a 100% all-equity transaction based on a 2.07x exchange ratio ET issues ~219 million common units to fund ~$2.7 Bn of equity value(1) ET rolls over CEQP’s ~
Slide 5: Key Transaction Highlights
Key Transaction Highlights Credit Neutrality Driven by All-Equity Deal Immediately Accretive to DCF/Unit Upon Closing Diversified and Complementary Assets Drive $40 MM+ of Annual Operational and Cost Synergies with Future Opportunities for Financial Synergies Long-term (9+ Years) Contracted Portfoli
Slide 6: Combination Expected to Benefit All Stakeholders Through Additional Scale & Integration
Combination Expected to Benefit All Stakeholders Through Additional Scale & Integration Strategic Rationale & Transaction Expectations CEQP’s substantial processing capacity in the Williston and Delaware basins complements ET’s significant downstream fractionation capacity at Mont Belvieu and hydroc
Slide 7: Expected Compelling Value Proposition for CEQP Unitholders
Expected Compelling Value Proposition for CEQP Unitholders Ownership in a Significantly Larger & More Diverse MLP Pro forma Enterprise Value ~$108 Bn(1), Adjusted EBITDA ~$14 Bn(2) Fully-integrated, wellhead to water asset base that includes significant NGL fractionation, hydrocarbon export capabili
Slide 8: Diversified MLP with Significant Scale
Diversified MLP with Significant Scale Enterprise Value ($ Bn)(1) Natural Gas Transportation G&P / Midstream Storage/Logistics NGL/Refined Product Other Assets(4) By combining CEQP & ET’s premier midstream operations, CEQP unitholders are expected to benefit from substantially increased scale & cash
Slide 9: Substantial Value Upside Potential with ET Units
Substantial Value Upside Potential with ET Units De-risking CEQP’s status quo business outlook while providing significant value upside potential Illustrative ET Unit Price(1) Implied CEQP Unit Price(1,2) (4) (3) (4) (3) >30% >80% >30% >80% % Uplift: % Uplift: Based on August 15, 2023, closing price
Slide 10: Distribution Accretion & Balance Sheet Strength
Distribution Accretion & Balance Sheet Strength CEQP unitholders to immediately benefit upon closing from ET’s 3-5% target annual distribution growth rate & investment grade balance sheet Enhanced Financial Strength CEQP status quo capital allocation priorities focused exclusively on debt reduction
Slide 11: Combination Expected to Maximize Long-Term Value for CEQP Unitholders
Enhanced scale, asset diversification, and value chain integration provides greater stability through commodity and industry cycles Focused on unitholder returns with a target annual distribution per unit growth rate of 3-5%, with further upside through valuation re-rate Investment grade balance she
Slide 12: Connections for America's Energy
Connections for America’s Energy” energy demand across North America through: etwork. Our diver: Ing.commitment to customers, employees and communities, Connect with us at (852) 519-2200 oF ontine at crestwoodlp.com E crestwood Ke Crestwood” connections for America's Energy® 12
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