Crestwood Announces Completion of US Salt, LLC Divestiture, Commissioning of Bear Den Gas Processing Plant Phase 1 in the Bakken, and Bear Den Gas Processing Plant Phase 2 Expansion

HOUSTON–(BUSINESS WIRE)–Crestwood Equity Partners LP (NYSE: CEQP) (“Crestwood” or “CEQP”)
announced today that Crestwood closed on the previously announced
transaction to sell 100% of the equity interests of US Salt, LLC (“US
Salt”) to an affiliate of Kissner Group Holdings LP for $225 million,
subject to working capital and minor maintenance capital adjustments.

Crestwood also announced today the commissioning of Phase 1 of the Bear
Den gas processing plant in Watford City, ND, adding 30 million cubic
feet per day (“MMcf/d”) of processing capacity to support increasing gas
volumes on Crestwood’s Arrow gathering system located on the Fort
Berthold Indian Reservation. Additionally, Crestwood announced it has
reached final investment decision to proceed with Phase 2 expansion of
the Bear Den gas processing plant with the addition of a new 120 MMcf/d
cryogenic gas processing plant.

The Bear Den gas processing plants are supported by a 150,000 acreage
dedication under long-term contracts with Crestwood’s multiple Arrow
producers. Under these contracts, Crestwood purchases 100% of oil and
gas volumes at the wellhead allowing Crestwood full control of
processing volumes. With Bear Den Phase 1’s 30 MMcf/d capacity
in-service, Crestwood will substantially alleviate current curtailments
from its third-party processor as well as current flared gas volumes and
expects the plant to operate at full utilization by year-end 2017. Phase
2 is a long-term processing solution that will be scaled to handle 100%
of the processing requirements for producers on the Arrow system upon
expiration of third-party processing contracts in the third quarter
2019. Crestwood expects to invest approximately $185 million on the
Phase 2 expansion with a targeted in-service date in the second quarter
2019. Upon completion of the Phase 2 expansion Crestwood will have a
combined 150 MMcf/d of gas processing capacity in the Bakken.

Robert G. Phillips, Chairman, President and Chief Executive Officer of
Crestwood’s general partner, commented, “The Arrow system will be
Crestwood’s largest growth driver in 2018 as our producers continue to
invest in the Bakken due to very strong well-economics, increasing EURs,
and a large inventory of well locations. We are pleased to commission
the first phase of the Bear Den plant to give our producers enhanced
flow assurance, more reliable service and improved net backs. We are
investing in the Phase 2 expansion as our producer customers continue to
aggressively develop their acreage on the Arrow system.”

Mr. Phillips, continued, “Additionally, we are pleased to announce the
closing of the divestiture of US Salt, a non-core business in
Crestwood’s portfolio, for $225 million. This transaction is materially
accretive to Crestwood’s current business plan as we expect to reinvest
the proceeds into our high-growth Bakken and Delaware Basin footprints
over the remainder of 2017 and full-year 2018. Crestwood is committed to
maintaining a strong balance sheet while self-funding our capital
programs to maximize project returns and enhance DCF per unit value
creation.”

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 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.

Forward Looking Statements

This press release may include certain statements concerning
expectations for the future that are forward-looking statements as
defined by federal securities law. Such forward-looking statements are
subject to a variety of known and unknown risks, uncertainties, and
other factors that are difficult to predict and many of which are beyond
management’s control. These risks and assumptions are described in
Crestwood’s annual reports on Form 10-K and other reports that are
available from the United States Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on forward-looking
statements, which reflect management’s view only as of the date made. We
undertake no obligation to update any forward-looking statement, except
as otherwise required by law.

Contacts

Crestwood Equity Partners LP
Investor Contacts
Josh
Wannarka, 713-380-3081
[email protected]
Vice
President, Investor Relations
or
Elizabeth Suman, 832-519-2276
[email protected]
Manager,
Investor Relations & Corporate Communications