UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, ~~2021~~2022


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the transition period from to .


(Exact name of registrant as specified in its charter)	Commission file number	State or other jurisdiction of incorporation or organization	(I.R.S. Employer Identification No.)
Crestwood Equity Partners LP	001-34664	Delaware	43-1918951
Crestwood Midstream Partners LP	001-35377	Delaware	20-1647837

811 Main Street

Suite 3400

Houston

Texas

77002

(Address of principal executive offices)

(Zip code)

(832) 519-2200

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


	Title of each class	Trading Symbol	Name of each exchange on which registered
Crestwood Equity Partners LP	Common Units representing limited partnership interests	CEQP	New York Stock Exchange
Crestwood Equity Partners LP	Preferred Units representing limited partnership interests	CEQP-P	New York Stock Exchange
Crestwood Midstream Partners LP	None	None	None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Crestwood Equity Partners LP

Yes

☒

☐

Crestwood Midstream Partners LP

Yes

☒

☐

(Explanatory Note: Crestwood Midstream Partners LP is currently a voluntary filer and is not subject to the filing requirements of the Securities Exchange Act of 1934. Although not subject to these filing requirements, Crestwood Midstream Partners LP has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months.)

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Crestwood Equity Partners LP

Yes

☒

☐

Crestwood Midstream Partners LP

Yes

☒

☐

Table of Contents

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Crestwood Equity Partners LP

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

Crestwood Midstream Partners LP

Large accelerated filer

☐

Accelerated filer

☐

Non-accelerated filer

☒

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange act.


Crestwood Equity Partners LP						☐
Crestwood Midstream Partners LP						☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Crestwood Equity Partners LP

Yes

☐

☒

Crestwood Midstream Partners LP

Yes

☐

☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date (April ~~23, 2021)~~22, 2022).



Crestwood Equity Partners LP						~~62,832,258~~97,966,187
Crestwood Midstream Partners LP						~~NaN~~None

Crestwood Midstream Partners LP, as a wholly-owned subsidiary of a reporting company, meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing this report with the reduced disclosure format as permitted by such instruction.

Table of Contents

CRESTWOOD EQUITY PARTNERS LP

CRESTWOOD MIDSTREAM PARTNERS LP

INDEX TO FORM 10-Q


			Page
Part I – Financial Information

Item 1. Financial Statements (Unaudited):

Crestwood Equity Partners LP

Consolidated Balance Sheets			4

Consolidated Statements of Operations			5

Consolidated Statements of ~~Comprehensive Income~~			7

~~Consolidated Statements of~~ Partners’ Capital			86

Consolidated Statements of Cash Flows			97

Crestwood Midstream Partners LP

Consolidated Balance Sheets			109

Consolidated Statements of Operations			1110

Consolidated Statements of Partners’ Capital			1211

Consolidated Statements of Cash Flows			1312

Notes to Consolidated Financial Statements			14

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			34

Item 3. Quantitative and Qualitative Disclosures About Market Risk			44

Item 4. Controls and Procedures			44

Part II – Other Information

Item 1. Legal Proceedings			45

Item 1A. Risk Factors			45

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			45

Item 3. Defaults Upon Senior Securities			45

Item 4. Mine Safety Disclosures			45

Item 5. Other Information			45

Item 6. Exhibits			46

Signature			4849

Table of Contents

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

CRESTWOOD EQUITY PARTNERS LP

CONSOLIDATED BALANCE SHEETS

(in millions, except unit information)


		March 31, 2021		December 31, 2020			March 31, 2022		December 31, 2021
		(unaudited)					(unaudited)
Assets	Assets					Assets
Current assets:	Current assets:					Current assets:
Cash	Cash	$	16.3	$	14.0	Cash	$	11.9	$	13.3

Accounts receivable, less allowance for doubtful accounts of $1.4 million and $0.9 million at March 31, 2021 and December 31, 2020		243.6		262.2
Accounts receivable, less allowance for doubtful accounts of $0.5 million and $0.6 million at March 31, 2022 and December 31, 2021						Accounts receivable, less allowance for doubtful accounts of $0.5 million and $0.6 million at March 31, 2022 and December 31, 2021	485.6		378.0
Inventory	Inventory	52.3		89.1		Inventory	94.0		156.5
Assets from price risk management activities	Assets from price risk management activities	21.0		27.2		Assets from price risk management activities	25.5		42.1

Prepaid expenses and other current assets	Prepaid expenses and other current assets	10.5		13.4		Prepaid expenses and other current assets	42.4		14.8
Total current assets	Total current assets	343.7		405.9		Total current assets	659.4		604.7
Property, plant and equipment	Property, plant and equipment	3,767.6		3,759.6		Property, plant and equipment	5,047.0		3,771.5
Less: accumulated depreciation	Less: accumulated depreciation	885.0		842.5		Less: accumulated depreciation	1,046.6		992.1
Property, plant and equipment, net	Property, plant and equipment, net	2,882.6		2,917.1		Property, plant and equipment, net	4,000.4		2,779.4
Intangible assets	Intangible assets	1,126.1		1,126.1		Intangible assets	1,623.1		1,126.1
Less: accumulated amortization	Less: accumulated amortization	347.0		331.8		Less: accumulated amortization	412.7		393.2
Intangible assets, net	Intangible assets, net	779.1		794.3		Intangible assets, net	1,210.4		732.9
Goodwill	Goodwill	138.6		138.6		Goodwill	177.9		138.6
Operating lease right-of-use assets, net	Operating lease right-of-use assets, net	32.4		36.8		Operating lease right-of-use assets, net	20.3		27.4
Investments in unconsolidated affiliates	Investments in unconsolidated affiliates	832.8		943.7		Investments in unconsolidated affiliates	164.8		155.8
Other non-current assets	Other non-current assets	8.1		7.3		Other non-current assets	6.9		6.9
Total assets	Total assets	$	5,017.3	$	5,243.7	Total assets	$	6,240.1	$	4,445.7

Liabilities and capital	Liabilities and capital					Liabilities and capital
Current liabilities:	Current liabilities:					Current liabilities:
Accounts payable	Accounts payable	$	238.4	$	160.3	Accounts payable	$	446.3	$	336.5
Accrued expenses and other liabilities	Accrued expenses and other liabilities	131.9		122.0		Accrued expenses and other liabilities	190.3		147.1
Liabilities from price risk management activities	Liabilities from price risk management activities	61.6		76.3		Liabilities from price risk management activities	107.6		114.6
Contingent consideration, current portion		19.0		19.0

Current portion of long-term debt	Current portion of long-term debt	0.2		0.2		Current portion of long-term debt	0.2		0.2
Total current liabilities	Total current liabilities	451.1		377.8		Total current liabilities	744.4		598.4
Long-term debt, less current portion	Long-term debt, less current portion	2,588.2		2,483.8		Long-term debt, less current portion	2,809.9		2,052.1
Contingent consideration		19.0		38.0

Other long-term liabilities	Other long-term liabilities	255.2		253.3		Other long-term liabilities	283.1		258.7
Deferred income taxes	Deferred income taxes	2.7		2.7		Deferred income taxes	2.2		2.3
Total liabilities	Total liabilities	3,316.2		3,155.6		Total liabilities	3,839.6		2,911.5
Commitments and contingencies (Note 8)		0		0
Interest of non-controlling partner in subsidiary (Note 10)		433.5		432.7
Crestwood Equity Partners LP partners’ capital (62,825,308 common units issued and outstanding at March 31, 2021 and 73,970,208 common and subordinated units issued and outstanding at December 31, 2020)		655.6		1,043.4
Preferred units (71,257,445 units issued and outstanding at both March 31, 2021 and December 31, 2020)		612.0		612.0
Commitments and contingencies (Note 9)						Commitments and contingencies (Note 9)	0		0
Interest of non-controlling partner in subsidiary						Interest of non-controlling partner in subsidiary	434.5		434.6
Crestwood Equity Partners LP partners’ capital (97,980,192 and 62,991,511 common units issued and outstanding at March 31, 2022 and December 31, 2021)						Crestwood Equity Partners LP partners’ capital (97,980,192 and 62,991,511 common units issued and outstanding at March 31, 2022 and December 31, 2021)	1,354.0		487.6
Preferred units (71,257,445 units issued and outstanding at both March 31, 2022 and December 31, 2021)						Preferred units (71,257,445 units issued and outstanding at both March 31, 2022 and December 31, 2021)	612.0		612.0
Total partners’ capital	Total partners’ capital	1,267.6		1,655.4		Total partners’ capital	1,966.0		1,099.6
Total liabilities and capital	Total liabilities and capital	$	5,017.3	$	5,243.7	Total liabilities and capital	$	6,240.1	$	4,445.7

See accompanying notes.

Table of Contents

CRESTWOOD EQUITY PARTNERS LP
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per unit data)
(unaudited)

Three Months Ended
March 31,
2021 2020
Revenues:
Product revenues:
Gathering and processing $ 67.9 $ 102.7
Marketing, supply and logistics 862.7 496.5
Related party (Note 14)
4.9 7.3
935.5 606.5
Services revenues:
Gathering and processing 86.5 112.2
Storage and transportation 2.0 3.5
Marketing, supply and logistics 8.7 5.5
Related party (Note 14)
0 0.2
97.2 121.4
Total revenues 1,032.7 727.9
Costs of product/services sold (exclusive of items shown separately below):
Product costs 767.6 524.6
Product costs - related party (Note 14)
41.1 3.2
Service costs 5.1 6.6
Total costs of products/services sold 813.8 534.4
Operating expenses and other:
Operations and maintenance 32.8 37.6
General and administrative 18.7 14.9
Depreciation, amortization and accretion 59.2 56.1
Loss on long-lived assets, net 1.4 1.0
Goodwill impairment 0 80.3
112.1 189.9
Operating income 106.8 3.6

~~Table of Contents~~

CRESTWOOD EQUITY PARTNERS LP
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per unit data)
(unaudited)

Three Months Ended
March 31,
2021 2020
Earnings (loss) from unconsolidated affiliates, net (103.7) 5.5
Interest and debt expense, net (36.0) (32.6)
Loss on modification/extinguishment of debt (5.5) 0
Other income, net 0 0.1
Loss before income taxes (38.4) (23.4)
Benefit for income taxes 0.1 0
Net loss (38.3) (23.4)
Net income attributable to non-controlling partner 10.1 9.9
Net loss attributable to Crestwood Equity Partners LP (48.4) (33.3)
Net income attributable to preferred units 15.0 15.0
Net loss attributable to partners $ (63.4) $ (48.3)
Net loss per limited partner unit: (Note 11)
Basic and Diluted $ (0.86) $ (0.66)
Weighted-average limited partners’ units outstanding:
Basic and Diluted 74.1 72.9

~~See accompanying notes.~~

~~Table of Contents~~

~~CRESTWOOD EQUITY PARTNERS LP~~

~~CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME~~

~~(in millions)~~

~~(unaudited)~~

Three Months Ended
March 31,
2021 2020
Net loss $ (38.3) $ (23.4)
Change in fair value of Suburban Propane Partners, L.P. units 0 (1.1)
Comprehensive loss (38.3) (24.5)
Comprehensive income attributable to non-controlling partner 10.1 9.9
Comprehensive loss attributable to Crestwood Equity Partners LP $ (48.4) $ (34.4)


CRESTWOOD EQUITY PARTNERS LP CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per unit data) (unaudited)
	Three Months Ended
	March 31,
		2022		2021
Revenues:
Product revenues		$	1,390.5	$	930.6
Product revenues - related party (Note 15)		60.6		4.9
Service revenues		95.6		97.2
Service revenues - related party (Note 15)		37.1		—
Total revenues		1,583.8		1,032.7

Costs of product/services sold (exclusive of items shown separately below):
Product costs		1,290.8		767.6
Product costs - related party (Note 15)		68.5		41.1
Service costs		5.1		5.1
Total costs of products/services sold		1,364.4		813.8

Operating expenses and other:
Operations and maintenance		42.4		32.8
General and administrative		43.4		18.7
Depreciation, amortization and accretion		74.8		59.2
Loss on long-lived assets, net		3.8		1.4

		164.4		112.1
Operating income		55.0		106.8
Earnings (loss) from unconsolidated affiliates, net		3.0		(103.7)
Interest and debt expense, net		(36.1)		(36.0)
Loss on modification/extinguishment of debt		—		(5.5)
Other income, net		0.3		—
Income (loss) before income taxes		22.2		(38.4)
Benefit for income taxes		—		0.1
Net income (loss)		22.2		(38.3)
Net income attributable to non-controlling partner		10.2		10.1
Net income (loss) attributable to Crestwood Equity Partners LP		12.0		(48.4)
Net income attributable to preferred units		15.0		15.0
Net loss attributable to partners		$	(3.0)	$	(63.4)

Net loss per limited partner unit: (Note 12)
Basic and Diluted		$	(0.04)	$	(0.86)

Weighted-average limited partners’ units outstanding:
Basic and Diluted		86.0		74.1

See accompanying notes.

Table of Contents

CRESTWOOD EQUITY PARTNERS LP

CONSOLIDATED STATEMENTS OF PARTNERS’ CAPITAL

(in millions)

(unaudited)


		Preferred			Partners							Preferred			Common
		Units	Capital		Common Units	Subordinated Units	Capital		Total Partners’ Capital			Units	Capital		Units	Capital		Total Partners’ Capital
Balance at December 31, 2020		71.3	$	612.0	73.6	0.4	$	1,043.4	$	1,655.4
Crestwood Holdings Transactions (Note 10)		—	—		—	—	(273.2)		(273.2)
Retirement of units (Note 10)		—	—		(11.5)	(0.4)	—		—
Balance at December 31, 2021											Balance at December 31, 2021	71.3	$	612.0	63.0	$	487.6	$	1,099.6
Distributions to partners	Distributions to partners	—	(15.0)		—	—	(46.4)		(61.4)		Distributions to partners	—	(15.0)		—	(60.9)		(75.9)
Issuance of common units (Note 3)											Issuance of common units (Note 3)				33.8	930.0		930.0
Unit-based compensation charges	Unit-based compensation charges	—	—		1.1	—	3.7		3.7		Unit-based compensation charges	—	—		1.6	13.0		13.0

Taxes paid for unit-based compensation vesting	Taxes paid for unit-based compensation vesting	—	—		(0.4)	—	(8.1)		(8.1)		Taxes paid for unit-based compensation vesting	—	—		(0.5)	(14.9)		(14.9)

Other	Other	—	—		0	—	(0.4)		(0.4)		Other	—	—		0.1	2.2		2.2
Net income (loss)	Net income (loss)	—	15.0		—	—	(63.4)		(48.4)		Net income (loss)	—	15.0		—	(3.0)		12.0
Balance at March 31, 2021		71.3	$	612.0	62.8	0	$	655.6	$	1,267.6
Balance at March 31, 2022											Balance at March 31, 2022	71.3	$	612.0	98.0	$	1,354.0	$	1,966.0


		Preferred			Partners							Preferred			Partners
		Units	Capital		Common Units	Subordinated Units	Capital		Total Partners’ Capital			Units	Capital		Common Units	Subordinated Units	Capital		Total Partners’ Capital
Balance at December 31, 2019		71.3	$	612.0	71.9	0.4	$	1,320.8	$	1,932.8
Balance at December 31, 2020											Balance at December 31, 2020	71.3	$	612.0	73.6	0.4	$	1,043.4	$	1,655.4
Crestwood Holdings Transactions (Note 11)											Crestwood Holdings Transactions (Note 11)	—	—		—	—	(273.2)		(273.2)
Retirement of units (Note 11)											Retirement of units (Note 11)	—	—		(11.5)	(0.4)	—		—
Distributions to partners	Distributions to partners	—	(15.0)		—	—	(45.3)		(60.3)		Distributions to partners	—	(15.0)		—	—	(46.4)		(61.4)
Unit-based compensation charges	Unit-based compensation charges	—	—		1.7	—	0.2		0.2		Unit-based compensation charges	—	—		1.1	—	3.7		3.7
Taxes paid for unit-based compensation vesting	Taxes paid for unit-based compensation vesting	—	—		(0.5)	—	(15.1)		(15.1)		Taxes paid for unit-based compensation vesting	—	—		(0.4)	—	(8.1)		(8.1)
Change in fair value of Suburban Propane Partners, L.P. units		—	—		—	—	(1.1)		(1.1)
Other	Other	—	—		0.2	—	3.5		3.5		Other	—	—		—	—	(0.4)		(0.4)
Net income (loss)	Net income (loss)	—	15.0		—	—	(48.3)		(33.3)		Net income (loss)	—	15.0		—	—	(63.4)		(48.4)
Balance at March 31, 2020		71.3	$	612.0	73.3	0.4	$	1,214.7	$	1,826.7
Balance at March 31, 2021											Balance at March 31, 2021	71.3	$	612.0	62.8	—	$	655.6	$	1,267.6

See accompanying notes.

Table of Contents


CRESTWOOD EQUITY PARTNERS LP CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (unaudited)
	Three Months Ended
	March 31,
	2022		2021
Operating activities
Net income (loss)	$	22.2	$	(38.3)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, amortization and accretion	74.8		59.2
Amortization of debt-related deferred costs and fair value adjustment	0.8		1.7
Unit-based compensation charges	8.6		2.3
Loss on long-lived assets, net	3.8		1.4

Loss on modification/extinguishment of debt	—		5.5
(Earnings) loss from unconsolidated affiliates, net, adjusted for cash distributions received	(0.4)		103.8
Deferred income taxes	(0.1)		—
Other	(0.1)		0.1
Changes in operating assets and liabilities	112.9		122.8





Net cash provided by operating activities	222.5		258.5
Investing activities
Acquisition, net of cash acquired (Note 3)	(145.1)		—
Purchases of property, plant and equipment	(26.4)		(9.3)
Investments in unconsolidated affiliates	(14.5)		(10.2)
Capital distributions from unconsolidated affiliates	5.9		17.3
Net proceeds from sale of assets	0.4		0.2

Net cash used in investing activities	(179.7)		(2.0)
Financing activities
Proceeds from the issuance of long-term debt	919.1		1,126.3
Payments on long-term debt	(859.1)		(1,018.1)
Payments on finance leases	(0.8)		(0.7)
Payments for deferred financing costs	(1.7)		(11.1)




Payments for Crestwood Holdings Transactions	—		(271.8)
Distributions to partners	(60.9)		(46.4)
Distributions to non-controlling partner	(10.3)		(9.3)
Distributions to preferred unitholders	(15.0)		(15.0)

Taxes paid for unit-based compensation vesting	(14.9)		(8.1)
Other	(0.6)		—
Net cash used in financing activities	(44.2)		(254.2)
Net change in cash	(1.4)		2.3
Cash at beginning of period	13.3		14.0
Cash at end of period	$	11.9	$	16.3

Table of Contents

CRESTWOOD EQUITY PARTNERS LP

CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

(in millions)

(unaudited)

Three Months Ended
March 31,
2021 2020
Operating activities
Net loss $ (38.3) $ (23.4)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation, amortization and accretion 59.2 56.1
Amortization of debt-related deferred costs 1.7 1.6
Unit-based compensation charges 2.3 (4.4)
Loss on long-lived assets, net 1.4 1.0
Goodwill impairment 0 80.3
Loss on modification/extinguishment of debt 5.5 0
Earnings from unconsolidated affiliates, net, adjusted for cash distributions received 103.8 4.5
Deferred income taxes 0 (0.2)
Other 0.1 0
Changes in operating assets and liabilities 122.8 3.7
Net cash provided by operating activities 258.5 119.2
Investing activities
Purchases of property, plant and equipment (9.3) (86.8)
Investments in unconsolidated affiliates (10.2) (6.0)
Capital distributions from unconsolidated affiliates 17.3 9.5
Net proceeds from sale of assets 0.2 0
Net cash used in investing activities (2.0) (83.3)
Financing activities
Proceeds from the issuance of long-term debt 1,126.3 275.9
Payments on long-term debt (1,018.1) (246.9)
Payments on finance leases (0.7) (0.8)
Payments for deferred financing costs (11.1) 0
Payments for Crestwood Holdings Transactions (271.8) 0
Distributions to partners (46.4) (45.3)
Distributions to non-controlling partner (9.3) (9.2)
Distributions to preferred unitholders (15.0) (15.0)
Taxes paid for unit-based compensation vesting (8.1) (15.1)
Net cash used in financing activities (254.2) (56.4)
Net change in cash 2.3 (20.5)
Cash at beginning of period 14.0 25.7
Cash at end of period $ 16.3 $ 5.2
Supplemental schedule of noncash investing activities
Net change to property, plant and equipment through accounts payable and accrued expenses $ (2.2) $ 21.3


	Three Months Ended
	March 31,
	2022		2021
Supplemental schedule of non-cash investing activities
Net change to property, plant and equipment through accounts payable and accrued expenses	$	3.8	$	(2.2)

Acquisition, net of cash acquired:
Current assets	$	63.4	$	—
Property, plant and equipment	1,245.8		—
Intangible assets	497.0		—
Goodwill	39.3		—
Current liabilities	(45.9)		—
Debt	(698.7)		—
Change in invested capital of Crestwood Equity Partners LP, net	(930.0)		—
Other liabilities	(25.8)		—
Total acquisition, net of cash acquired	$	145.1	$	—

See accompanying notes.

Table of Contents

CRESTWOOD MIDSTREAM PARTNERS LP

CONSOLIDATED BALANCE SHEETS

(in millions)


		March 31, 2021		December 31, 2020			March 31, 2022		December 31, 2021
		(unaudited)					(unaudited)
Assets	Assets					Assets
Current assets:	Current assets:					Current assets:
Cash	Cash	$	15.9	$	13.7	Cash	$	11.3	$	12.9

Accounts receivable, less allowance for doubtful accounts of $1.4 million and $0.9 million at March 31, 2021 and December 31, 2020		243.5		262.2
Accounts receivable, less allowance for doubtful accounts of $0.5 million and $0.6 million at March 31, 2022 and December 31, 2021						Accounts receivable, less allowance for doubtful accounts of $0.5 million and $0.6 million at March 31, 2022 and December 31, 2021	485.6		378.0
Inventory	Inventory	52.3		89.1		Inventory	94.0		156.5
Assets from price risk management activities	Assets from price risk management activities	21.0		27.2		Assets from price risk management activities	25.5		42.1

Prepaid expenses and other current assets	Prepaid expenses and other current assets	10.5		13.4		Prepaid expenses and other current assets	42.4		14.4
Total current assets	Total current assets	343.2		405.6		Total current assets	658.8		603.9
Property, plant and equipment	Property, plant and equipment	4,097.7		4,089.6		Property, plant and equipment	5,376.2		4,100.8
Less: accumulated depreciation	Less: accumulated depreciation	1,074.3		1,028.3		Less: accumulated depreciation	1,250.9		1,193.0
Property, plant and equipment, net	Property, plant and equipment, net	3,023.4		3,061.3		Property, plant and equipment, net	4,125.3		2,907.8
Intangible assets	Intangible assets	1,126.1		1,126.1		Intangible assets	1,623.1		1,126.1
Less: accumulated amortization	Less: accumulated amortization	347.0		331.8		Less: accumulated amortization	412.7		393.2
Intangible assets, net	Intangible assets, net	779.1		794.3		Intangible assets, net	1,210.4		732.9
Goodwill	Goodwill	138.6		138.6		Goodwill	177.9		138.6
Operating lease right-of-use assets, net	Operating lease right-of-use assets, net	32.4		36.8		Operating lease right-of-use assets, net	20.3		27.4
Investments in unconsolidated affiliates	Investments in unconsolidated affiliates	832.8		943.7		Investments in unconsolidated affiliates	164.8		155.8
Other non-current assets	Other non-current assets	5.9		5.2		Other non-current assets	4.6		4.8
Total assets	Total assets	$	5,155.4	$	5,385.5	Total assets	$	6,362.1	$	4,571.2
Liabilities and capital	Liabilities and capital					Liabilities and capital
Current liabilities:	Current liabilities:					Current liabilities:
Accounts payable	Accounts payable	$	238.3	$	157.8	Accounts payable	$	446.2	$	336.4
Accrued expenses and other liabilities	Accrued expenses and other liabilities	126.8		120.1		Accrued expenses and other liabilities	188.9		146.1
Liabilities from price risk management activities	Liabilities from price risk management activities	61.6		76.3		Liabilities from price risk management activities	107.6		114.6
Contingent consideration, current portion		19.0		19.0

Current portion of long-term debt	Current portion of long-term debt	0.2		0.2		Current portion of long-term debt	0.2		0.2
Total current liabilities	Total current liabilities	445.9		373.4		Total current liabilities	742.9		597.3
Long-term debt, less current portion	Long-term debt, less current portion	2,588.2		2,483.8		Long-term debt, less current portion	2,809.9		2,052.1
Contingent consideration		19.0		38.0

Other long-term liabilities	Other long-term liabilities	253.4		251.8		Other long-term liabilities	281.6		254.1
Deferred income taxes	Deferred income taxes	0.7		0.7		Deferred income taxes	0.8		0.8
Total liabilities	Total liabilities	3,307.2		3,147.7		Total liabilities	3,835.2		2,904.3
Commitments and contingencies (Note 8)		0		0
Interest of non-controlling partner in subsidiary (Note 10)		433.5		432.7
Commitments and contingencies (Note 9)						Commitments and contingencies (Note 9)	0		0
Interest of non-controlling partner in subsidiary						Interest of non-controlling partner in subsidiary	434.5		434.6
Partners’ capital	Partners’ capital	1,414.7		1,805.1		Partners’ capital	2,092.4		1,232.3

Total liabilities and capital	Total liabilities and capital	$	5,155.4	$	5,385.5	Total liabilities and capital	$	6,362.1	$	4,571.2

See accompanying notes.

109

Table of Contents

CRESTWOOD MIDSTREAM PARTNERS LP

CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions)

(unaudited)


		Three Months Ended						Three Months Ended
		March 31,						March 31,
			2021		2020				2022		2021
Revenues:	Revenues:						Revenues:
Product revenues:
Gathering and processing			$	67.9	$	102.7

Marketing, supply and logistics			862.7		496.5
Related party (Note 14)			4.9		7.3
			935.5		606.5
Service revenues:
Gathering and processing			86.5		112.2
Storage and transportation			2.0		3.5
Marketing, supply and logistics			8.7		5.5
Related party (Note 14)			0		0.2
			97.2		121.4
Product revenues							Product revenues		$	1,390.5	$	930.6
Product revenues - related party (Note 15)							Product revenues - related party (Note 15)		60.6		4.9
Service revenues							Service revenues		95.6		97.2
Service revenues - related party (Note 15)							Service revenues - related party (Note 15)		37.1		—
Total revenues	Total revenues		1,032.7		727.9		Total revenues		1,583.8		1,032.7

Costs of product/services sold (exclusive of items shown separately below):	Costs of product/services sold (exclusive of items shown separately below):						Costs of product/services sold (exclusive of items shown separately below):
Product costs	Product costs		767.6		524.6		Product costs		1,290.8		767.6
Product costs - related party (Note 14)			41.1		3.2
Product costs - related party (Note 15)							Product costs - related party (Note 15)		68.5		41.1
Service costs	Service costs		5.1		6.6		Service costs		5.1		5.1
Total costs of product/services sold	Total costs of product/services sold		813.8		534.4		Total costs of product/services sold		1,364.4		813.8

Operating expenses and other:	Operating expenses and other:						Operating expenses and other:
Operations and maintenance	Operations and maintenance		32.8		37.6		Operations and maintenance		42.4		32.8
General and administrative	General and administrative		17.2		13.5		General and administrative		41.7		17.2
Depreciation, amortization and accretion	Depreciation, amortization and accretion		62.8		59.6		Depreciation, amortization and accretion		78.2		62.8
Loss on long-lived assets, net	Loss on long-lived assets, net		1.4		1.0		Loss on long-lived assets, net		3.8		1.4
Goodwill impairment			0		80.3

			114.2		192.0				166.1		114.2
Operating income	Operating income		104.7		1.5		Operating income		53.3		104.7
Earnings (loss) from unconsolidated affiliates, net	Earnings (loss) from unconsolidated affiliates, net		(103.7)		5.5		Earnings (loss) from unconsolidated affiliates, net		3.0		(103.7)
Interest and debt expense, net	Interest and debt expense, net		(36.0)		(32.6)		Interest and debt expense, net		(36.1)		(36.0)
Loss on modification/extinguishment of debt	Loss on modification/extinguishment of debt		(5.5)		0		Loss on modification/extinguishment of debt		—		(5.5)
Loss before income taxes			(40.5)		(25.6)
Income (loss) before income taxes							Income (loss) before income taxes		20.2		(40.5)
Benefit for income taxes	Benefit for income taxes		0.1		0		Benefit for income taxes		—		0.1
Net loss			(40.4)		(25.6)
Net income (loss)							Net income (loss)		20.2		(40.4)
Net income attributable to non-controlling partner	Net income attributable to non-controlling partner		10.1		9.9		Net income attributable to non-controlling partner		10.2		10.1
Net loss attributable to Crestwood Midstream Partners LP			$	(50.5)	$	(35.5)
Net income (loss) attributable to Crestwood Midstream Partners LP							Net income (loss) attributable to Crestwood Midstream Partners LP		$	10.0	$	(50.5)

See accompanying notes.

1110

Table of Contents

CRESTWOOD MIDSTREAM PARTNERS LP

CONSOLIDATED STATEMENTS OF PARTNERS’ CAPITAL

(in millions)

(unaudited)

Total Partners’
Capital

Balance at December 31, ~~2020~~2021

~~1,805.1~~1,232.3

Non-cash contribution from partner (Note 11)

1,075.1

Cash contribution from partner (Note 11)

14.9

Distributions to partners

~~(334.0)~~(238.1)

Unit-based compensation charges

~~2.3~~13.0

Taxes paid for unit-based compensation vesting

~~(8.1)~~(14.9)

Other

~~(0.1)~~0.1

Net ~~loss~~income

~~(50.5)~~10.0

Balance at March 31, ~~2021~~2022

~~1,414.7~~2,092.4

Total Partners’
Capital

Balance at December 31, ~~2019~~2020

~~2,099.3~~1,805.1

Distributions to partners

~~(57.0)~~(334.0)

Unit-based compensation charges

~~(4.4)~~2.3

Taxes paid for unit-based compensation vesting

~~(15.1)~~(8.1)

Other

~~(1.1)~~(0.1)

Net loss

~~(35.5)~~(50.5)

Balance at March 31, ~~2020~~2021

~~1,986.2~~1,414.7

See accompanying notes.

1211

Table of Contents

CRESTWOOD MIDSTREAM PARTNERS LP

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

(unaudited)


		Three Months Ended					Three Months Ended
		March 31,					March 31,
		2021		2020			2022		2021
Operating activities	Operating activities					Operating activities
Net loss		$	(40.4)	$	(25.6)
Adjustments to reconcile net loss to net cash provided by operating activities:
Net income (loss)						Net income (loss)	$	20.2	$	(40.4)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:						Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, amortization and accretion	Depreciation, amortization and accretion	62.8		59.6		Depreciation, amortization and accretion	78.2		62.8
Amortization of debt-related deferred costs		1.7		1.6
Amortization of debt-related deferred costs and fair value adjustment						Amortization of debt-related deferred costs and fair value adjustment	0.8		1.7
Unit-based compensation charges	Unit-based compensation charges	2.3		(4.4)		Unit-based compensation charges	8.6		2.3
Loss on long-lived assets, net	Loss on long-lived assets, net	1.4		1.0		Loss on long-lived assets, net	3.8		1.4
Goodwill impairment		0		80.3

Loss on modification/extinguishment of debt	Loss on modification/extinguishment of debt	5.5		0		Loss on modification/extinguishment of debt	—		5.5
Earnings from unconsolidated affiliates, net, adjusted for cash distributions received		103.8		4.5
(Earnings) loss from unconsolidated affiliates, net, adjusted for cash distributions received						(Earnings) loss from unconsolidated affiliates, net, adjusted for cash distributions received	(0.4)		103.8

Other	Other	0.1		0		Other	(0.1)		0.1
Changes in operating assets and liabilities	Changes in operating assets and liabilities	122.0		(1.2)		Changes in operating assets and liabilities	112.8		122.0
Net cash provided by operating activities	Net cash provided by operating activities	259.2		115.8		Net cash provided by operating activities	223.9		259.2
Investing activities	Investing activities					Investing activities

Purchases of property, plant and equipment	Purchases of property, plant and equipment	(9.3)		(86.8)		Purchases of property, plant and equipment	(26.4)		(9.3)
Investments in unconsolidated affiliates	Investments in unconsolidated affiliates	(10.2)		(6.0)		Investments in unconsolidated affiliates	(14.5)		(10.2)
Capital distributions from unconsolidated affiliates	Capital distributions from unconsolidated affiliates	17.3		9.5		Capital distributions from unconsolidated affiliates	5.9		17.3
Net proceeds from sale of assets	Net proceeds from sale of assets	0.2		0		Net proceeds from sale of assets	0.4		0.2

Net cash used in investing activities	Net cash used in investing activities	(2.0)		(83.3)		Net cash used in investing activities	(34.6)		(2.0)
Financing activities	Financing activities					Financing activities
Proceeds from the issuance of long-term debt	Proceeds from the issuance of long-term debt	1,126.3		275.9		Proceeds from the issuance of long-term debt	919.1		1,126.3
Payments on long-term debt	Payments on long-term debt	(1,018.1)		(246.9)		Payments on long-term debt	(859.1)		(1,018.1)
Payments on finance leases	Payments on finance leases	(0.7)		(0.8)		Payments on finance leases	(0.8)		(0.7)
Payments for deferred financing costs	Payments for deferred financing costs	(11.1)		0		Payments for deferred financing costs	(1.7)		(11.1)

Contribution from partner						Contribution from partner	14.9		—
Distributions to partners	Distributions to partners	(334.0)		(57.0)		Distributions to partners	(238.1)		(334.0)
Distributions to non-controlling partner	Distributions to non-controlling partner	(9.3)		(9.2)		Distributions to non-controlling partner	(10.3)		(9.3)

Taxes paid for unit-based compensation vesting	Taxes paid for unit-based compensation vesting	(8.1)		(15.1)		Taxes paid for unit-based compensation vesting	(14.9)		(8.1)

Net cash used in financing activities	Net cash used in financing activities	(255.0)		(53.1)		Net cash used in financing activities	(190.9)		(255.0)
Net change in cash	Net change in cash	2.2		(20.6)		Net change in cash	(1.6)		2.2
Cash at beginning of period	Cash at beginning of period	13.7		25.4		Cash at beginning of period	12.9		13.7
Cash at end of period	Cash at end of period	$	15.9	$	4.8	Cash at end of period	$	11.3	$	15.9
Supplemental schedule of noncash investing activities
Supplemental schedule of non-cash investing activities						Supplemental schedule of non-cash investing activities
Net change to property, plant and equipment through accounts payable and accrued expenses	Net change to property, plant and equipment through accounts payable and accrued expenses	$	(2.2)	$	21.3	Net change to property, plant and equipment through accounts payable and accrued expenses	$	3.8	$	(2.2)

Table of Contents

CRESTWOOD MIDSTREAM PARTNERS LP

CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

(in millions)

(unaudited)


	Three Months Ended
	March 31,
	2022		2021
Supplemental schedule of non-cash financing activities
Non-cash contribution:
Current assets	$	63.4	$	—
Property, plant and equipment	1,245.8		—
Intangible assets	497.0		—
Goodwill	39.3		—
Current liabilities	(45.9)		—
Debt	(698.7)		—
Other liabilities	(25.8)		—
Total non-cash contribution	$	1,075.1	$	—

See accompanying notes.

Table of Contents

CRESTWOOD EQUITY PARTNERS LP

CRESTWOOD MIDSTREAM PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Note 1 – Organization and Business Description

The accompanying notes to the consolidated financial statements apply to Crestwood Equity Partners LP (Crestwood Equity or CEQP) and Crestwood Midstream Partners LP (Crestwood Midstream or CMLP), unless otherwise indicated.

The accompanying consolidated financial statements and related notes should be read in conjunction with our ~~2020~~2021 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February ~~26, 2021.~~25, 2022. The financial information as of March 31, ~~2021,~~2022, and for the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, is unaudited. The consolidated balance sheets as of December 31, ~~2020~~2021 were derived from the audited balance sheets filed in our ~~2020~~2021 Annual Report on Form 10-K.

References in this report to “we,” “us,” “our,” “ours,” “our company,” the “partnership,” the “Company,” “Crestwood Equity,” “CEQP,” and similar terms refer to either Crestwood Equity Partners LP itself or Crestwood Equity Partners LP and its consolidated subsidiaries, as the context requires. Unless otherwise indicated, references to “Crestwood Midstream” and “CMLP” refer to either Crestwood Midstream Partners LP itself or Crestwood Midstream Partners LP and its consolidated subsidiaries.

Organization

Crestwood Equity Partners LP. CEQP is a publicly-traded (NYSE: CEQP) Delaware limited partnership formed in March 2001. Crestwood Equity GP LLC (Crestwood Equity GP), ~~which is indirectly owned by Crestwood Holdings LLC (Crestwood Holdings),~~our wholly-owned subsidiary, owns our non-economic general partnership interest. ~~Crestwood Holdings is substantially owned and controlled by First Reserve Management, L.P. (First Reserve).~~

Crestwood Midstream Partners LP. Crestwood Equity owns a 99.9% limited partnership interest in Crestwood Midstream and Crestwood Gas Services GP LLC (CGS GP), a wholly-owned subsidiary of Crestwood Equity, owns a 0.1% limited partnership interest in Crestwood Midstream. Crestwood Midstream GP LLC, a wholly-owned subsidiary of Crestwood Equity, owns the non-economic general partnership interest of Crestwood Midstream.

~~Crestwood Holdings Strategic Transactions~~. In March 2021, CEQP acquired approximately 11.5 million CEQP common units, 0.4 million subordinated units of CEQP and 100% of the equity interests of Crestwood Marcellus Holdings LLC and Crestwood Gas Services Holdings LLC (whose assets consisted solely of CEQP common and subordinated units and 1% of the limited partner interests in Crestwood Holdings LP) from Crestwood Holdings, and signed a definitive agreement to acquire the general partner and the remaining 99% limited partner interests of Crestwood Holdings LP (whose assets consist solely of its ownership interest in Crestwood Equity GP LLC, which owns CEQP’s non-economic general partner interest) (collectively the Crestwood Holdings Transactions) for $268 million in cash. The acquisition of the general partner and limited partner interests of Crestwood Holdings LP will close on or before the 180th day after the date of the initial closing of the Crestwood Holdings Transactions. The purchase price was funded through borrowings under the Crestwood Midstream credit facility. CEQP retired the common and subordinated units acquired in the Crestwood Holdings Transactions.

~~The diagram below reflects a simplified version our ownership structure as of March 31, 2021 following the Crestwood Holdings Transactions.~~

~~Table of Contents~~

Business Description

Crestwood Equity develops, acquires, owns or controls, and operates primarily fee-based assets and operations within the energy midstream sector. We provide broad-ranging infrastructure solutions across the value chain to service premier liquids-rich natural gas and crude oil shale plays across the United States. We own and operate a diversified portfolio of ~~NGL,~~natural gas liquids (NGLs), crude oil, natural gas and produced water gathering, processing, storage, disposal and transportation assets that connect fundamental energy supply with energy demand across the United States. Crestwood Equity is a holding company and all of its consolidated operating assets are owned by or through its wholly-owned subsidiary, Crestwood Midstream.

~~Our financial statements reflect 3~~See Note 13 for information regarding our operating and reporting ~~segments described below.~~

•~~Gathering and Processing~~. Our gathering and processing operations provide natural gas, crude oil and produced water gathering, compression, treating, processing and disposal services to producers in multiple unconventional resource plays in some of the largest shale plays in the United States in which we have established footprints in the “core of the core” areas.

•~~Storage and Transportation. Our storage and transportation operations provide crude oil and natural gas storage and transportation services to producers, utilities and other customers.~~

•~~Marketing, Supply and Logistics. Our marketing, supply and logistics operations provide NGL, crude oil and natural gas marketing, storage, terminal and transportation services to producers, refiners, marketers and other customers.~~segments.

Note 2 – Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

Our consolidated financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP) and include the accounts of all consolidated subsidiaries after the elimination of all intercompany accounts and transactions. In management’s opinion, all necessary adjustments to fairly present our results of operations, financial position and cash flows for the periods presented have been made and all such adjustments are of a normal and recurring nature. Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with GAAP have been omitted pursuant to the rules and regulations of the SEC.

Table of Contents

Significant Accounting Policies

There were no material changes in our significant accounting policies from those described in our 2020 Annual Report on Form 10-K. During the three months ended March 31, 2020, we recorded an $80.3 million full impairment of the goodwill associated with our Powder River Basin reporting unit based on events that occurred during 2020 which resulted in a significant decrease in the forecasted cash flows and fair value of the reporting unit. For a further discussion of this goodwill impairment, see our 20202021 Annual Report on Form 10-K.

Note 3 – Acquisition

On October 25, 2021, we entered into a merger agreement to acquire Oasis Midstream Partners LP (Oasis Midstream) in an equity and cash transaction (the Merger). Oasis Midstream is a master limited partnership which operates a diversified portfolio of midstream assets located in the Williston and Delaware Basins and its operations include natural gas services (gathering, compression, processing and gas lift supply), crude oil services (gathering, terminalling and transportation), and water services (gathering and disposal of produced and flowback water and freshwater distribution).

On February 1, 2022, we completed the merger with Oasis Midstream, which was valued at approximately $1.8 billion. Pursuant to the merger agreement, Oasis Petroleum Inc. (Oasis Petroleum) received $150 million in cash plus approximately 20.9 million newly issued CEQP common units in exchange for its 33.8 million common units held in Oasis Midstream. In addition, Oasis Midstream’s public unitholders received approximately 12.9 million newly issued CEQP common units in exchange for the approximately 14.8 million Oasis Midstream common units held by them. Additionally, under the merger agreement Oasis Petroleum received a $10 million cash payment in exchange for its ownership of the general partner of Oasis Midstream.

We accounted for the Merger as a business combination using the acquisition method of accounting. In addition, the purchase accounting reflects the adoption of Accounting Standards Update 2021-08, Business Combinations (Topic 805) during the three months ended March 31, 2022. The financial results of Oasis Midstream’s Williston Basin operations are included in our gathering and processing north segment and Oasis Midstream’s Delaware Basin operations are included in our gathering and processing south segment from the date of acquisition. During the three months ended March 31, 2022, we recognized approximately $17 million of transaction costs related to the Merger, which are included in general and administrative expenses in our consolidated statements of operations.

The purchase price has been allocated to the assets acquired and liabilities assumed based on preliminary fair values. Certain preliminary fair values are Level 3 fair value measurements and were developed by management with the assistance of a third-party valuation firm. We estimated the fair value of the senior notes assumed based on quoted market prices for similar issuances which are considered Level 2 fair value measurements. The preliminary fair values were estimated primarily utilizing market related information and other projections on the performance of the assets acquired, including an analysis of discounted cash flows at a discount rate of approximately 12%. The preliminary fair values of property, plant and equipment, intangible assets and goodwill and their allocation to our segments are subject to change pending a final determination of the fair values as more information is received about their respective values. We expect to finalize the purchase price allocation for this transaction in 2022.

Table of Contents

The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the acquisition date (in millions):


Cash	$	14.9
Other current assets	63.4
Property, plant and equipment	1,245.8
Intangible assets	497.0
Total assets acquired	1,821.1
Current liabilities	45.9
Long-term debt(1)	698.7
Other long-term liabilities(2)	25.8
Total liabilities assumed	770.4
Net assets acquired excluding goodwill	1,050.7
Goodwill	39.3
Net assets acquired	$	1,090.0

(1) Consists of approximately $218 million outstanding borrowings under the Oasis Midstream revolver, which was immediately repaid upon the closing of the Merger and approximately $450 million of unsecured senior notes and the related fair value adjustment of approximately $30.7 million. For a further discussion of the long-term debt assumed in conjunction with the Merger, see Note 8.

(2) Consists primarily of liabilities for asset retirement obligations of approximately $16.5 million.

The identifiable intangible assets primarily consist of customer accounts with Oasis Petroleum and other customers with a weighted-average remaining life of 20 years. The goodwill recognized relates primarily to the anticipated operating synergies between the assets acquired and our existing operations and is reflected in our gathering and processing north segment.

Our consolidated statement of operations for three months ended March 31, 2022 include the results of Oasis Midstream since February 1, 2022, the closing date of the Merger. During the three months ended March 31, 2022, we recognized approximately $66.8 million of revenues and $23.5 million of net income related to Oasis Midstream’s operations.

The table below presents selected unaudited pro forma information as if the Merger had occurred on January 1, 2021 (in millions). The pro forma information is not necessarily indicative of the financial results that would have occurred if the Merger had been completed as of the date indicated. The amounts were calculated after applying our accounting policies and adjusting the results to reflect the depreciation, amortization and accretion expense that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had been made at the beginning of the reporting period. The pro forma net income (loss) also includes the net effects of interest expense on incremental borrowings, repayments of long-term debt and amortization of the fair value adjustment to long-term debt.

Crestwood Equity


	Three Months Ended March 31,
		2022		2021
Revenues		$	1,618.4	$	1,133.1
Net income (loss)		$	28.4	$	(15.2)
Net income (loss) per limited partner unit:
Basic and Diluted		$	0.03	$	(0.37)

Table of Contents

Crestwood Midstream


	Three Months Ended March 31,
		2022		2021
Revenues		$	1,618.4	$	1,133.1
Net income (loss)		$	26.4	$	(17.3)

Note 34 – Certain Balance Sheet Information

Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities consisted of the following (in millions):


	March 31,		December 31,
	2022		2021
CMLP
Accrued expenses	$	50.0	$	66.3
Accrued property taxes	5.2		4.4
Income tax payable	0.4		0.4
Interest payable	54.7		30.6
Accrued additions to property, plant and equipment	25.6		17.4
Operating leases	10.4		13.2
Finance leases	30.5		1.7
Contract liabilities	11.0		10.7
Asset retirement obligations	1.1		1.4
Total CMLP accrued expenses and other liabilities	$	188.9	$	146.1
CEQP
Accrued expenses	1.2		0.9
Income tax payable	0.2		0.1
Total CEQP accrued expenses and other liabilities	$	190.3	$	147.1

CEQP CMLP
March 31, December 31, March 31, December 31,
2021 2020 2021 2020
Accrued expenses $ 41.7 $ 48.3 $ 36.6 $ 46.4
Accrued property taxes 5.2 8.4 5.2 8.4
Income tax payable 0.3 0.2 0.3 0.2
Interest payable 47.0 24.9 47.0 24.9
Accrued additions to property, plant and equipment 12.2 12.3 12.2 12.3
Operating leases 12.5 14.7 12.5 14.7
Finance leases 2.9 2.9 2.9 2.9
Deferred revenue 10.1 10.3 10.1 10.3
Total accrued expenses and other liabilities $ 131.9 $ 122.0 $ 126.8 $ 120.1

Other Long-Term Liabilities

Other long-term liabilities consisted of the following (in millions):

CEQP CMLP
March 31, December 31, March 31, December 31,
2021 2020 2021 2020
Contract liabilities $ 176.5 $ 172.2 $ 176.5 $ 172.2
Operating leases 25.9 28.5 25.9 28.5
Asset retirement obligations 34.6 34.1 34.6 34.1
Other 18.2 18.5 16.4 17.0
Total other long-term liabilities $ 255.2 $ 253.3 $ 253.4 $ 251.8


	March 31,		December 31,
	2022		2021
CMLP
Contract liabilities	$	202.1	$	187.1
Operating leases	14.5		19.4
Asset retirement obligations	51.7		34.8
Other	13.3		12.8
Total CMLP other long-term liabilities	$	281.6	$	254.1
CEQP
Other	1.5		4.6
Total CEQP other long-term liabilities	$	283.1	$	258.7

Table of Contents

Note 45 - Investments in Unconsolidated Affiliates

~~Variable Interest Entity~~

Crestwood Permian Basin Holdings LLC (Crestwood Permian) is a joint venture owned by Crestwood Infrastructure Holdings LLC (Crestwood Infrastructure), our wholly-owned subsidiary, and an affiliate of First Reserve. We manage and account for our 50% ownership interest in Crestwood Permian, which is a variable interest entity, under the equity method of accounting as we exercise significant influence, but do not control Crestwood Permian and we are not its primary beneficiary due to First Reserve’s rights to exercise control over the entity.

~~Table of Contents~~

Net Investments and Earnings (Loss) of Unconsolidated Affiliates

Our net investments in and earnings (loss) from our unconsolidated affiliates are as follows (in millions):


		Investment				Earnings (Loss) from Unconsolidated Affiliates						Investment					Earnings (Loss) from Unconsolidated Affiliates
							Three Months Ended											Three Months Ended
		March 31,		December 31,		March 31,						March 31,	December 31,				March 31,
		2021		2020			2021		2020				2022		2021				2022		2021
Stagecoach Gas Services LLC(1)		$	666.2	$	792.5		$	(112.3)	$	9.2
Crestwood Permian Basin Holdings LLC(1)											Crestwood Permian Basin Holdings LLC(1)		$	118.7	$	116.1			$	2.6	$	(0.8)
Tres Palacios Holdings LLC(2)	Tres Palacios Holdings LLC(2)	51.7		35.5			9.3		0		Tres Palacios Holdings LLC(2)		42.8		36.2				0.6		9.3
Powder River Basin Industrial Complex, LLC(3)	Powder River Basin Industrial Complex, LLC(3)	3.6		3.6			0.1		(4.5)		Powder River Basin Industrial Complex, LLC(3)		3.3		3.5				(0.2)		0.1
Crestwood Permian Basin Holdings LLC(4)		111.3		112.1			(0.8)		0.8
Stagecoach Gas Services LLC(4)											Stagecoach Gas Services LLC(4)		—		—				—		(112.3)
Total	Total	$	832.8	$	943.7		$	(103.7)	$	5.5	Total		$	164.8	$	155.8			$	3.0	$	(103.7)

(1)As of March 31, ~~2021,~~2022, our equity in the underlying net assets of ~~Stagecoach Gas Services~~Crestwood Permian Basin Holdings LLC (Stagecoach Gas) approximates the carrying value of our investment. During the first quarter of 2021, we recorded our share of a goodwill impairment recorded by our Stagecoach Gas equity investment, based on market-based information received by Stagecoach Gas from Con Edison Gas Pipeline and Storage Northeast, LLC’s (the other 50% owner of Stagecoach Gas) strategic evaluation of its investment during the three months ended March 31, 2021. This eliminated our $51.3 million historical basis difference between(Crestwood Permian) exceeded our investment balance by $4.6 million, and the equity in the underlying net assets of Stagecoach Gas, and also resulted in a $119.9 million reduction in our earnings from unconsolidated affiliates during the three months ended March 31, 2021.this excess amount is not subject to amortization. Our ~~Stagecoach Gas~~Crestwood Permian investment is included in our ~~storage~~gathering and ~~transportation~~processing south segment.

(2)As of March 31, ~~2021,~~2022, our equity in the underlying net assets of Tres Palacios Holdings LLC (Tres Holdings) exceeded the carrying value of our investment balance by approximately ~~$22.4~~$21.2 million. During both the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, we recorded amortization of approximately $0.3 million related to this excess basis, which is reflected as an increase in our earnings from unconsolidated affiliates in our consolidated statements of operations. Our Tres Holdings investment is included in our storage and ~~transportation~~logistics segment.

(3)As of March 31, ~~2021,~~2022, our equity in the underlying net assets of Powder River Basin Industrial Complex, LLC (PRBIC) approximates the carrying value of our investment balance. Our PRBIC investment is included in our storage and logistics segment.

(4)In 2021, we sold our 50% equity interest in our Stagecoach Gas Services LLC (Stagecoach Gas) equity investment to a subsidiary of Kinder Morgan, Inc. During the first quarter of ~~2020,~~2021, we recorded our share of a ~~long-lived asset~~goodwill impairment recorded by ~~our PRBIC~~Stagecoach Gas based on market-based information received by Stagecoach Gas from Con Edison Gas Pipeline and Storage Northeast, LLC’s (the previous owner of the other 50% equity interest in Stagecoach Gas) strategic evaluation of its investment ~~which eliminated our $5.5 million historical basis difference between our investment balance and~~during the ~~equity in the underlying net assets of PRBIC, and also~~three months ended March 31, 2021. This resulted in a ~~$4.5~~$119.9 million reduction in our earnings from unconsolidated affiliates during the three months ended March 31, ~~2020.~~2021. Our ~~PRBIC~~Stagecoach Gas investment iswas previously included in our storage and ~~transportation segment.~~

~~(4)~~As of March 31, 2021, our equity in the underlying net assets of Crestwood Permian exceeded our investment balance by $8.3 million, and this excess amount is not subject to amortization. Our Crestwood Permian investment is included in our gathering and processinglogistics segment.

~~Summarized Financial Information of Unconsolidated Affiliates~~

~~Below is the summarized operating results for our significant unconsolidated affiliates (in millions; amounts represent 100% of unconsolidated affiliate information~~):

Three Months Ended
March 31,
2021 2020
Operating Revenues Operating Expenses Net Income (Loss) Operating Revenues Operating Expenses Net Income (Loss)
Stagecoach Gas $ 35.9 $ 363.3 $ (327.4) $ 37.7 $ 19.4 $ 18.4
Other(1)
76.9 60.4 16.5 28.3 48.5 (19.5)
Total $ 112.8 $ 423.7 $ (310.9) $ 66.0 $ 67.9 $ (1.1)

~~(1)Includes our Tres Holdings, PRBIC and Crestwood Permian equity investments.~~

~~Table of Contents~~

Distributions and Contributions

The following table summarizes our distributions from and contributions to our unconsolidated affiliates (in millions):


		Distributions(1)				Contributions						Distributions(1)				Contributions
		Three Months Ended				Three Months Ended						Three Months Ended				Three Months Ended
		March 31,				March 31,				March 31,				March 31,
		2021		2020		2021		2020				2022		2021		2022		2021
Stagecoach Gas		$	14.0	$	15.6	$	0	$	0
Crestwood Permian											Crestwood Permian	$	8.5	$	3.3	$	8.5	$	3.3
Tres Holdings	Tres Holdings	0		0		6.9		6.0			Tres Holdings	—		—		6.0		6.9
PRBIC	PRBIC	0.1		0.1		0		0			PRBIC	—		0.1		—		—
Crestwood Permian		3.3		3.8		3.3		0
Stagecoach Gas											Stagecoach Gas	—		14.0		—		—
Total	Total	$	17.4	$	19.5	$	10.2	$	6.0		Total	$	8.5	$	17.4	$	14.5	$	10.2

(1) In April ~~2021,~~2022, we received cash distributions from ~~Stagecoach Gas,~~Crestwood Permian and Tres Holdings ~~and Crestwood Permian~~ of approximately ~~$13.0 million, $10.6~~$5.1 million and ~~$2.2~~$1.4 million, respectively.

~~Other~~

~~Contingent Consideration~~. Pursuant to the Stagecoach Gas limited liability company agreement, we are required to make $57 million of payments to Con Edison Gas Pipeline and Storage Northeast, LLC (CEGP) because certain performance targets on growth capital projects were not achieved by December 31, 2020. During the three months ended March 31, 2021, we paid $19 million to CEGP related to this obligation. At March 31, 2021, our consolidated balance sheet reflects a $38 million liability related to this obligation, of which $19 million is classified as current. We accrued interest of approximately $1.0 million related to this obligation which is included in accrued expenses and other liabilities on our consolidated balance sheet at March 31, 2021.

~~Guarantee.~~ CEQP issued a guarantee under which CEQP would be required to pay up to $10 million if Crestwood Permian fails to honor its obligations to Crestwood Permian Basin LLC, a 50% equity investment of Crestwood Permian, in the event Crestwood Permian Basin LLC fails to satisfy its obligations under its gas gathering agreement with a third party. We do not believe that it is probable that this guarantee will result in future losses based on our assessment of the nature of the guarantee, the financial condition of the guaranteed party and the period of time that the guarantee has been outstanding, and as a result, we have not recorded a liability related to this guarantee on our consolidated balance sheets at March 31, 2021 and December 31, 2020.

Note 56 – Risk Management

We are exposed to certain market risks related to our ongoing business operations. These risks include exposure to changing commodity prices. We utilize derivative instruments to manage our exposure to fluctuations in commodity prices, which is discussed below. Additional information related to our derivatives is discussed in Note 6.7.

Table of Contents

Risk Management Activities

We sell NGLs (such as propane, ethane, butane and heating oil), crude oil and natural gas to energy-related businesses and may use a variety of financial and other instruments including forward contracts involving physical delivery of NGLs, crude oil and natural gas. We periodically enter into offsetting positions to economically hedge against the exposure our customer contracts create. Certain of these contracts and positions are derivative instruments. We do not designate any of our commodity-based derivatives as hedging instruments for accounting purposes. Our commodity-based derivatives are reflected at fair value in our consolidated balance sheets, and changes in the fair value of these derivatives that impact the consolidated statements of operations are reflected in costs of product/services sold. Our commodity-based derivatives that are settled with physical commodities are reflected as an increase to product revenues, and the commodity inventory that is utilized to satisfy those physical obligations is reflected as an increase to product costs in our consolidated statements of operations. The following table summarizes the impact to our consolidated statements of operations related to our commodity-based derivatives ~~during the three months ended March 31, 2021 and 2020~~ (in millions):

~~Table of Contents~~


		Three Months Ended						Three Months Ended
		March 31,						March 31,
			2021		2020				2022		2021
Product revenues	Product revenues		$	114.8	$	75.0	Product revenues		$	202.2	$	114.8
Gain (loss) reflected in product costs			$	(8.1)	$	22.0
Loss reflected in product costs							Loss reflected in product costs		$	(47.6)	$	(8.1)

We attempt to balance our contractual portfolio in terms of notional amounts and timing of performance and delivery obligations. This balance in the contractual portfolio significantly reduces the volatility in product costs related to these instruments.

Notional Amounts and Terms

The notional amounts of our derivative financial instruments include the following:


		March 31, 2021		December 31, 2020			March 31, 2022		December 31, 2021
		Fixed Price Payor	Fixed Price Receiver	Fixed Price Payor	Fixed Price Receiver		Fixed Price Payor	Fixed Price Receiver	Fixed Price Payor	Fixed Price Receiver
Propane, ethane, butane, heating oil and crude oil (MMBbls)	Propane, ethane, butane, heating oil and crude oil (MMBbls)	60.8	62.9	72.7	76.5	Propane, ethane, butane, heating oil and crude oil (MMBbls)	57.9	60.1	71.6	75.8
Natural gas (Bcf)	Natural gas (Bcf)	27.3	36.6	22.6	28.6	Natural gas (Bcf)	24.3	36.2	31.9	43.4

Notional amounts reflect the volume of transactions, but do not represent the amounts exchanged by the parties to the financial instruments. Accordingly, notional amounts do not reflect our monetary exposure to market or credit risks. All contracts subject to price risk had a maturity of 3836 months or less; however, ~~86%~~87% of the contracted volumes will be delivered or settled within 12 months.

Credit Risk

Inherent in our contractual portfolio are certain credit risks. Credit risk is the risk of loss from nonperformance by suppliers, customers or financial counterparties to a contract. We take an active role in managing credit risk and have established control procedures, which are reviewed on an ongoing basis. We attempt to minimize credit risk exposure through credit policies and periodic monitoring procedures as well as through customer deposits, letters of credit and entering into netting agreements that allow for offsetting counterparty receivable and payable balances for certain financial transactions, as deemed appropriate. The counterparties associated with our price risk management activities are energy marketers and propane retailers, resellers and dealers.

Certain of our derivative instruments have credit limits that require us to post collateral. The amount of collateral required to be posted is a function of the net liability position of the derivative as well as our established credit limit with the respective counterparty. If our credit rating were to change, the counterparties could require us to post additional collateral. The amount of additional collateral that would be required to be posted would vary depending on the extent of change in our credit rating as well as the requirements of the individual counterparty. In addition, we have margin requirements with a ~~New York Mercantile Exchange (NYMEX)~~derivative clearing broker and a third party broker related to our net asset or liability position with ~~such~~each respective broker. All collateral amounts have been netted against the asset or liability with the respective counterparty and are reflected in our consolidated balance sheets as assets and liabilities from price risk management activities.

Table of Contents

The following table presents the fair value of our commodity derivative instruments with credit-risk related contingent features and their associated collateral (in millions):

March 31, 2021 December 31, 2020
Aggregate fair value liability of derivative instruments with credit-risk-related contingent features(1)
$ 30.7 $ 38.5
NYMEX-related net derivative asset position $ 57.4 $ 35.9
NYMEX-related cash collateral received $ 40.0 $ 18.3
Cash collateral received, net $ 7.3 $ 12.4


	March 31, 2022		December 31, 2021
Aggregate fair value liability of derivative instruments with credit-risk-related contingent features(1)	$	71.6	$	57.9
Broker-related net derivative asset position	$	87.7	$	104.8
Broker-related cash collateral received	$	68.7	$	76.8
Cash collateral (paid) received, net	$	(6.8)	$	11.4

(1)At March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, we posted ~~$1.0~~$11.6 million and ~~less than $0.1~~$1.5 million of collateral associated with these derivatives.

~~Table of Contents~~

Note 67 – Fair Value Measurements

The accounting standard for fair value measurement establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows:

•Level 1—Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for ~~the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.~~ Level 1 primarily consists of financial instruments such as exchange-traded derivatives, listed equities and US government treasury securities.

•Level 2—Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category include non-exchange-traded derivatives such as over the counter (OTC) forwards, options and physical exchanges.

•Level 3—Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value.

Financial Assets and Liabilities

As of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, we held certain assets and liabilities that are required to be measured at fair value on a recurring basis, which include our derivative instruments related to ~~heating oil,~~ crude oil, NGLs and natural gas. Our derivative instruments consist of forwards, swaps, futures, physical exchanges and options.

Our derivative instruments that are traded on the ~~NYMEX~~New York Mercantile Exchange have been categorized as Level 1.

Our derivative instruments also include OTC contracts, which are not traded on a public exchange. The fair values of these derivative instruments are determined based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets. These instruments have been categorized as Level 2.

Our OTC options are valued based on the Black Scholes option pricing model that considers time value and volatility of the underlying commodity. The inputs utilized in the model are based on publicly available information as well as broker quotes. These options have been categorized as Level 2.

Our financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels.

2120

Table of Contents

The following tables set forth by level within the fair value hierarchy, our financial instruments that were accounted for at fair value on a recurring basis at March 31, ~~2021~~2022 and December 31, ~~2020~~2021 (in millions):


		March 31, 2021															March 31, 2022

		Level 1		Level 2		Level 3		Gross Fair Value		Contract Netting(1)		Collateral/Margin Received or Paid		Fair Value			Level 1		Level 2		Level 3		Gross Fair Value		Contract Netting(1)		Collateral/Margin Received or Paid		Fair Value
Assets	Assets															Assets
Assets from price risk management	Assets from price risk management	$	20.9	$	531.6	$	0	$	552.5	$	(492.0)	$	(39.5)	$	21.0	Assets from price risk management	$	53.3	$	856.4	$	—	$	909.7	$	(816.5)	$	(67.7)	$	25.5
Suburban Propane Partners, L.P. units(2)		2.1		0		0		2.1		—		—		2.1
Other investments(2)																Other investments(2)	2.5		—		—		2.5		—		—		2.5
Total assets at fair value	Total assets at fair value	$	23.0	$	531.6	$	0	$	554.6	$	(492.0)	$	(39.5)	$	23.1	Total assets at fair value	$	55.8	$	856.4	$	—	$	912.2	$	(816.5)	$	(67.7)	$	28.0

Liabilities	Liabilities															Liabilities
Liabilities from price risk management	Liabilities from price risk management	$	23.6	$	522.2	$	0	$	545.8	$	(492.0)	$	7.8	$	61.6	Liabilities from price risk management	$	62.3	$	867.6	$	—	$	929.9	$	(816.5)	$	(5.8)	$	107.6
Total liabilities at fair value	Total liabilities at fair value	$	23.6	$	522.2	$	0	$	545.8	$	(492.0)	$	7.8	$	61.6	Total liabilities at fair value	$	62.3	$	867.6	$	—	$	929.9	$	(816.5)	$	(5.8)	$	107.6

		December 31, 2020															December 31, 2021

		Level 1		Level 2		Level 3		Gross Fair Value		Contract Netting(1)		Collateral/Margin Received or Paid		Fair Value			Level 1		Level 2		Level 3		Gross Fair Value		Contract Netting(1)		Collateral/Margin Received or Paid		Fair Value
Assets	Assets															Assets
Assets from price risk management	Assets from price risk management	$	20.2	$	480.5	$	0	$	500.7	$	(455.0)	$	(18.5)	$	27.2	Assets from price risk management	$	33.3	$	695.6	$	—	$	728.9	$	(607.4)	$	(79.4)	$	42.1
Suburban Propane Partners, L.P. units(2)		2.1		0		0		2.1		—		—		2.1
Other investments(2)																Other investments(2)	2.2		—		—		2.2		—		—		2.2
Total assets at fair value	Total assets at fair value	$	22.3	$	480.5	$	0	$	502.8	$	(455.0)	$	(18.5)	$	29.3	Total assets at fair value	$	35.5	$	695.6	$	—	$	731.1	$	(607.4)	$	(79.4)	$	44.3

Liabilities	Liabilities															Liabilities
Liabilities from price risk management	Liabilities from price risk management	$	25.1	$	494.0	$	0	$	519.1	$	(455.0)	$	12.2	$	76.3	Liabilities from price risk management	$	26.9	$	686.3	$	—	$	713.2	$	(607.4)	$	8.8	$	114.6
Total liabilities at fair value	Total liabilities at fair value	$	25.1	$	494.0	$	0	$	519.1	$	(455.0)	$	12.2	$	76.3	Total liabilities at fair value	$	26.9	$	686.3	$	—	$	713.2	$	(607.4)	$	8.8	$	114.6

(1)Amounts represent the impact of legally enforceable master netting agreements that allow us to settle positive and negative positions.

(2)Amount primarily relates to our investment in Suburban Propane Partners, L.P. units which is reflected in other non-current assets on CEQP’s consolidated balance sheets.

Cash, Accounts Receivable and Accounts Payable

As of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, the carrying amounts of cash, accounts receivable and accounts payable approximate fair value based on the short-term nature of these instruments.

Credit Facility

The fair value of the amounts outstanding under our Crestwood Midstream credit facility approximates the carrying amounts as of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, due primarily to the variable nature of the interest rate of the instrument, which is considered a Level 2 fair value measurement.

2221

Table of Contents

Senior Notes

We estimate the fair value of our senior notes primarily based on quoted market prices for the same or similar issuances (representing a Level 2 fair value measurement). The following table represents the carrying amount (reduced for deferred financing costs associated with the respective notes) and fair value of our senior notes (in millions):

March 31, 2021 December 31, 2020
Carrying
Amount Fair
Value Carrying
Amount Fair
Value
2023 Senior Notes $ 286.8 $ 288.1 $ 683.8 $ 691.5
2025 Senior Notes $ 495.8 $ 502.8 $ 495.5 $ 509.9
2027 Senior Notes $ 593.4 $ 589.3 $ 593.2 $ 594.1
2029 Senior Notes $ 689.9 $ 690.4 $ 0 $ 0


	March 31, 2022				December 31, 2021
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
2025 Senior Notes	$	496.8	$	503.8	$	496.5	$	511.9
2027 Senior Notes	$	594.5	$	595.1	$	594.2	$	615.0
February 2029 Senior Notes	$	691.2	$	699.7	$	690.8	$	727.3
April 2029 Senior Notes (1)	$	480.0	$	480.3	$	—	$	—

(1)Represents $450 million of unsecured senior notes assumed in conjunction with the merger with Oasis Midstream discussed in Note 3, and the related net fair value adjustment which are further described in Note 8.

Note 78 – Long-Term Debt

Long-term debt consisted of the following at March 31, ~~2021~~2022 and December 31, ~~2020~~2021 (in millions):


		March 31, 2021		December 31, 2020			March 31, 2022		December 31, 2021
Credit Facility	Credit Facility	$	530.0	$	719.0	Credit Facility	$	560.0	$	282.0
2023 Senior Notes		288.0		687.2
2025 Senior Notes	2025 Senior Notes	500.0		500.0		2025 Senior Notes	500.0		500.0
2027 Senior Notes	2027 Senior Notes	600.0		600.0		2027 Senior Notes	600.0		600.0
2029 Senior Notes		700.0		0
February 2029 Senior Notes						February 2029 Senior Notes	700.0		700.0
April 2029 Senior Notes						April 2029 Senior Notes	450.0		—
April 2029 Senior Notes fair value adjustment, net						April 2029 Senior Notes fair value adjustment, net	30.0		—
Other(1)	Other(1)	0.4		0.4		Other(1)	0.2		0.2
Less: deferred financing costs, net	Less: deferred financing costs, net	30.0		22.6		Less: deferred financing costs, net	30.1		29.9
Total debt	Total debt	2,588.4		2,484.0		Total debt	2,810.1		2,052.3
Less: current portion	Less: current portion	0.2		0.2		Less: current portion	0.2		0.2
Total long-term debt, less current portion	Total long-term debt, less current portion	$	2,588.2	$	2,483.8	Total long-term debt, less current portion	$	2,809.9	$	2,052.1

(1)Represents non-interest bearing obligations related to certain companies acquired in 2014 with payments due through 2022.

Credit Facility

Crestwood Midstream’s five-year ~~$1.25~~$1.5 billion revolving credit facility (the CMLP Credit Facility) is available to fund acquisitions, working capital and internal growth projects and for general partnership purposes. ~~Contemporaneous~~In conjunction with the ~~Crestwood Holdings Transactions described in Note~~merger with Oasis Midstream on February 1, ~~Crestwood Midstream entered into the Third Amendment to its credit agreement in order to, among other things, permit the borrowings~~2022, we borrowed amounts under the CMLP Credit Facility to fund the ~~Crestwood Holdings Transactions~~cash paid of $160 million to Oasis Petroleum and ~~revise the definition~~to repay approximately $218 million of ~~Change in Control in the CMLP Credit Agreement as it relates to the control of CEQP’s general partner). The other covenants and restrictive provisions under the amended~~borrowings on Oasis Midstream’s credit ~~agreement are materially consistent with the covenants that existed at December 31, 2020.~~facility, which was retired on February 1, 2022.

Crestwood Midstream is required under its credit agreement to maintain a net debt to consolidated EBITDA ratio (as defined in its credit agreement) of not more than 5.50 to 1.0, a consolidated EBITDA to consolidated interest expense ratio (as defined in its credit agreement) of not less than 2.50 to 1.0, and a senior secured leverage ratio (as defined in its credit agreement) of not more than ~~3.75~~3.50 to 1.0. At March 31, ~~2021,~~2022, the net debt to consolidated EBITDA ratio was approximately ~~4.21~~3.48 to 1.0, the consolidated EBITDA to consolidated interest expense ratio was approximately ~~4.74~~5.04 to 1.0, and the senior secured leverage ratio was ~~0.85~~0.69 to 1.0.

At March 31, ~~2021,~~2022, Crestwood Midstream had ~~$701.2~~$931.2 million of available capacity under its credit facility considering the most restrictive debt covenants in its credit agreement. At March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, Crestwood Midstream’s outstanding standby letters of credit were $18.8 million and $23.9 million. Borrowings under the credit facility accrue interest at prime or Eurodollar based rates plus applicable spreads, which resulted in interest rates between 2.36% and 4.50% at

2322

Table of Contents

outstanding standby letters of credit were $8.8 million and $6.3 million. Borrowings under the credit facility accrue interest at either prime or the Adjusted Term SOFR (as defined in the credit agreement) plus applicable spreads, which resulted in interest rates between 2.07% and 4.00% at March 31, ~~2021~~2022 and ~~2.40%~~1.90% and ~~4.50%~~4.00% at December 31, ~~2020.~~2021. The weighted-average interest rate on outstanding borrowings as of March 31, ~~2021~~2022 and December 31, ~~2020~~2021 was ~~3.29%~~2.16% and ~~2.45%~~1.91%.

Senior Notes

February 2029 Senior Notes. In January 2021, Crestwood Midstream issued $700 million of 6.00% unsecured senior notes due 2029 (the February 2029 Senior Notes). The February 2029 Senior Notes will mature on February 1, 2029, and interest is payable semi-annually in arrears on February 1 and August 1 of each year, beginning on August 1, 2021. The net proceeds from this offering of approximately $691.0 million were used to repay a portion of ~~the~~our senior notes that were due in 2023 ~~Senior Notes~~ and to repay indebtedness under the CMLP Credit Facility.

April 2029 Senior Notes.In February 2022, in conjunction with the merger with Oasis Midstream, we assumed $450 million of 8.00% unsecured senior notes due 2029 (the April 2029 Senior Notes) and we recorded a fair value adjustment of approximately $30.7 million related to the senior notes. During the three months ended March 31, 2022, we recorded a reduction to our interest and debt expense of approximately $0.7 million related to the amortization of the fair value adjustment. The April 2029 Senior Notes will mature on April 1, 2029, and interest is payable semi-annually on April 1 and October 1 of each year.

2023 Senior Note ~~Repayments.~~Repayments. In January 2021, we utilized a portion of the proceeds from the issuance of the 2029 Senior Notes to repurchase and cancel approximately $399.2 million of principal outstanding under our ~~2023 Senior Notes.~~senior notes that were due in 2023. In conjunction with the repayment of the notes, we recognized a loss on extinguishment of debt of approximately $5.5 ~~million and paid approximately $7.6 million of accrued interest on the 2023 Notes on the date they were repurchased.~~

~~In April~~million. During 2021, we ~~redeemed the remaining $288 million of principal~~repaid all amounts outstanding under ~~the 2023 Senior Notes. In conjunction with the repayment of the~~our senior notes we recognized a loss on extinguishment of debt of approximately $1.2 million and paid approximately $1.0 million of accrued interest on the 2023 Senior Notes on the date they were repurchased. We funded the repayment with borrowings under the CMLP Credit Facility.due 2023.

Note 89 – Commitments and Contingencies

Legal Proceedings

Oasis Unitholder Lawsuit. On December 17, 2021, Kristen Eckert-Smith (Plaintiff), a common unitholder of Oasis Midstream filed a complaint in the United States District Court for the District of Delaware on behalf of all Oasis common unitholders. This complaint alleges that the merger between Oasis Midstream and Crestwood Equity violates the Securities Exchange Act of 1934. In addition, the Plaintiff filed a lawsuit against Oasis Midstream, its board of directors and Crestwood Equity GP, claiming the Registration Statement filed with the SEC omitted material information with respect to Oasis Midstream’s calculated projections and financial analyses. The Plaintiff was seeking to block the parties from closing the merger and in the alternative, to revise the Registration Statement and award the plaintiff attorney’s and expert’s fees. The Plaintiff was unsuccessful as the merger was completed and the lawsuit was dismissed.

Linde Lawsuit. On December 23, 2019, Linde Engineering North America Inc. (Linde) filed a lawsuit in the District Court of Harris County, Texas alleging that Arrow Field Services, LLC, our consolidated subsidiary, and Crestwood Midstream breached a contract entered into in March 2018 under which Linde was to provide engineering, procurement and construction services to us related to the completion of the construction of the Bear Den II cryogenic processing plant. Since the lawsuit was filed, we have paid Linde approximately $22.7 million (including approximately $3.2 million paid during the three months ended March 31, 2022) related to this matter, and Linde claims ~~damages of $55 million in~~remaining unpaid invoices ~~and~~of approximately $33 million, along with other damages. This matter is not an insurable event based on our insurance policies, and we are unable to predict the outcome for this matter.

General. We are periodically involved in litigation proceedings. If we determine that a negative outcome is probable and the amount of loss is reasonably estimable, then we accrue the estimated amount. The results of litigation proceedings cannot be predicted with certainty. We could incur judgments, enter into settlements or revise our expectations regarding the outcome of certain matters, and such developments could have a material adverse effect on our results of operations or cash flows in the period in which the amounts are paid and/or accrued. As of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, we had approximately ~~$10.5~~$16.6 million and ~~$10.4~~$16.8 million accrued for outstanding legal matters. Based on currently available information, we believe it is remote that future costs related to known contingent liability exposures for which we can estimate will exceed current accruals by an amount that would have a material adverse impact on our consolidated financial statements. As we learn new facts concerning contingencies, we reassess our position both with respect to accrued liabilities and other potential exposures.

Table of Contents

Any loss estimates are inherently subjective, based on currently available information, and are subject to management’s judgment and various assumptions. Due to the inherently subjective nature of these estimates and the uncertainty and unpredictability surrounding the outcome of legal proceedings, actual results may differ materially from any amounts that have been accrued.

Regulatory Compliance

In the ordinary course of our business, we are subject to various laws and regulations. In the opinion of our management, compliance with current laws and regulations will not have a material effect on our results of operations, cash flows or financial condition.

Environmental Compliance

Our operations are subject to stringent and complex laws and regulations pertaining to worker health, safety, and the environment. We are subject to laws and regulations at the federal, state, regional and local levels that relate to air and water

~~Table of Contents~~

quality, hazardous and solid waste management and disposal, and other environmental matters. The cost of planning, designing, constructing and operating our facilities must incorporate compliance with environmental laws and regulations and safety standards. Failure to comply with these laws and regulations may trigger a variety of administrative, civil and potentially criminal enforcement measures.

During 2019, we experienced produced water releases on our Arrow water gathering system located on the Fort Berthold Indian Reservation in North Dakota. In January 2021, we received a Notice of Violation and Opportunity to Confer from the Environmental Protection Agency (EPA) related to the water releases. In March 2021, we executed a Consent Agreement with the EPA and agreed to pay $0.1 million for penalties related to the water releases. The EPA provided the public a 30-day opportunity to comment on the Consent Agreement beginning on March 30, 2021. We expect to finalize and settle the Consent Agreement after the public comment period concludes. We are also substantially complete with all remediation efforts related to the water releases and continue to monitor any remaining impacts. We will continue our remediation efforts to ensure that lands impacted by the produced water releases are fully remediated. In response to the water releases, we removed several miles of gathering pipeline from the system that remained in service and replaced those sections with a pipeline composed of higher capacity material that is more suitable to the environment and climate conditions in the Bakken. The replaced pipeline increased water gathering capacity on the Arrow system and furthers our commitment to sustainability and environmental stewardship in the areas where we live and operate. We believe these events are insurable under our policies. We have not recorded an insurance receivable as ofAt March 31, ~~2021.~~

~~At both March 31, 2021~~2022 and December 31, ~~2020,~~2021, our accrual of approximately ~~$1.3~~$0.9 million and $1.0 million was based on our undiscounted estimate of amounts we will spend on compliance with environmental and other regulations, and any associated fines or penalties. We estimate that our potential liability for reasonably possible outcomes related to our environmental exposures could range from approximately ~~$1.3~~$0.9 million to ~~$2.1~~$1.8 million at March 31, ~~2021.~~2022.

Self-Insurance

We utilize third-party insurance subject to varying retention levels of self-insurance, which management considers prudent. Such self-insurance relates to losses and liabilities primarily associated with medical claims, workers’ compensation claims and general, product, vehicle and environmental liability. Losses are accrued based upon management’s estimates of the aggregate liability for claims incurred using certain assumptions followed in the insurance industry and based on past experience. The primary assumption utilized is actuarially determined loss development factors. The loss development factors are based primarily on historical data. Our ~~self insurance~~self-insurance reserves could be affected if future claim developments differ from the historical trends. We believe changes in health care costs, trends in health care claims of our employee base, accident frequency and severity and other factors could materially affect the estimate for these liabilities. We continually monitor changes in employee demographics, incident and claim type and evaluate our insurance accruals and adjust our accruals based on our evaluation of these qualitative data points. We are liable for the development of claims for our previously disposed of retail propane operations, provided they were reported prior to August 1, 2012. The following table summarizes CEQP’s and CMLP’s self-insurance reserves ~~at March 31, 2021 and December 31, 2020~~ (in millions):

CEQP CMLP
March 31, 2021 December 31, 2020 March 31, 2021 December 31, 2020
Self-insurance reserves(1)
$ 7.3 $ 7.7 $ 6.4 $ 6.7


	CEQP				CMLP
	March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021
Self-insurance reserves(1)	$	5.9	$	5.5	$	4.9	$	4.7

(1)At March 31, ~~2021,~~2022, CEQP and CMLP classified approximately ~~$4.8~~$3.5 million and ~~$4.1~~$2.9 million, respectively, of these reserves as other long-term liabilities on their consolidated balance sheets.

Guarantees and Indemnifications

We are involved in various joint ventures that sometimes require financial and performance guarantees. In a financial guarantee, we are obligated to make payments if the guaranteed party fails to make payments under, or violates the terms of, the financial arrangement. In a performance guarantee, we provide assurance that the guaranteed party will execute on the terms of the contract. If they do not, we are required to perform on their behalf. We also periodically provide indemnification arrangements related to assets or businesses we have sold. ~~For a further description of our guarantees associated with our joint ventures, see Note 4.~~

Our potential exposure under ~~guarantee and~~ indemnification arrangements can range from a specified amount to an unlimited ~~dollar~~ amount, depending on the nature of the claim, specificity as to duration, and the particular transaction. As of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, we have no amounts accrued for these ~~guarantees.~~indemnifications.

2524

Table of Contents

Note 910 - Leases

The following table summarizes the balance sheet information related to our operating and finance leases ~~at March 31, 2021 and December 31, 2020~~ ~~(in~~(in millions):


		March 31, 2021		December 31, 2020			March 31, 2022		December 31, 2021
Operating Leases	Operating Leases					Operating Leases
Operating lease right-of-use assets, net	Operating lease right-of-use assets, net	$	32.4	$	36.8	Operating lease right-of-use assets, net	$	20.3	$	27.4

Accrued expenses and other liabilities	Accrued expenses and other liabilities	$	12.5	$	14.7	Accrued expenses and other liabilities	$	10.4	$	13.2
Other long-term liabilities	Other long-term liabilities	25.9		28.5		Other long-term liabilities	14.5		19.4
Total operating lease liabilities	Total operating lease liabilities	$	38.4	$	43.2	Total operating lease liabilities	$	24.9	$	32.6
Finance Leases	Finance Leases					Finance Leases
Property, plant and equipment	Property, plant and equipment	$	13.0	$	13.3	Property, plant and equipment	$	13.4	$	12.3
Less: accumulated depreciation	Less: accumulated depreciation	8.4		7.9		Less: accumulated depreciation	10.0		9.2
Property, plant and equipment, net	Property, plant and equipment, net	$	4.6	$	5.4	Property, plant and equipment, net	$	3.4	$	3.1

Accrued expenses and other liabilities	Accrued expenses and other liabilities	$	2.9	$	2.9	Accrued expenses and other liabilities	$	30.5	$	1.7
Other long-term liabilities	Other long-term liabilities	1.3		1.9		Other long-term liabilities	1.5		1.2
Total finance lease liabilities	Total finance lease liabilities	$	4.2	$	4.8	Total finance lease liabilities	$	32.0	$	2.9

Lease expense. Our operating lease expense, net totaled ~~$4.8~~$3.5 million and ~~$7.5~~$4.8 million for the three months ended March 31, ~~2021~~2022 and ~~2020.~~2021. Our finance lease expense totaled $0.9 million ~~and $1.1 million~~ for both the three months ended March 31, ~~2021~~2022 and ~~2020.~~2021.

Other. During March 2022, we exercised an option to purchase crude oil railcars under certain of our operating leases as a result of our plan to exit our crude oil railcar operations. In April 2022, we entered into an agreement with a third party to sell the crude oil railcars purchased under the operating lease and, as a result, we reclassified approximately $24.7 million of these assets as current assets held for sale, which is included in prepaid expenses and other current assets on our consolidated balance sheet at March 31, 2022. The current assets held for sale were recorded at fair value based on the anticipated sale proceeds, which is a Level 3 fair value measurement. At March 31, 2022, we also reclassified approximately $28.7 million of operating lease right-of-use liabilities associated with these assets to finance lease right-of-use liabilities, which is included in accrued expenses and other liabilities on our consolidated balance sheet. During the three months ended March 31, 2022, we recorded a loss on long-lived assets of approximately $4.0 million for the difference between the assets held for sale and the carrying value of the assets to be sold.

Note 1011 – Partners’ Capital and Non-Controlling Partner

Common and Subordinated Units

On February 1, 2022, we completed the merger with Oasis Midstream. Pursuant to the merger agreement, Oasis Petroleum received cash plus approximately 20.9 million newly issued CEQP units in exchange for its common units held in Oasis Midstream. In ~~conjunction~~addition, Oasis Midstream’s public unitholders received approximately 12.9 million newly issued CEQP common units in exchange for the Oasis Midstream common units held by them. For a further discussion of the merger with ~~the Crestwood Holdings Transactions discussed in~~Oasis Midstream, see Note ~~1, in~~3.

In March 2021, CEQP acquired approximately 11.5 million CEQP common units and 0.4 million subordinated units of CEQP from Crestwood Holdings LLC (Crestwood Holdings) for approximately $268 million. CEQP reflected the purchase price as a reduction to its common unitholders’ partners’ capital in its consolidated statement of partners’ capital during the three months ended March 31, 2021. ~~The Crestwood Holdings Transactions~~This transaction resulted in CEQP retiring the common and subordinated units acquired from Crestwood Holdings. In addition, in conjunction with this transaction, CEQP eliminated approximately $2.6 million of accounts payable to Crestwood Holdings which is reflected as an increase to CEQP’s common unitholders’ partners capital in its consolidated statements of partners capital during the three months ended March 31, 2021. Transaction costs related to ~~the Crestwood Holdings Transactions were~~this transaction of approximately ~~$8.0~~$7.6 million ~~of which $7.8 million is~~are reflected as a reduction of CEQP’s common unitholders’ partners’ capital in its consolidated statement of partners’ capital during the three months ended March 31, ~~2021 and the remaining $0.2 million of costs are included in general and administrative expenses on CEQP’s consolidated statement of operations for the three months ended March 31,~~ 2021.

Table of Contents

Distributions

Crestwood Equity

Limited Partners. A summary of CEQP’s limited partner quarterly cash distributions for the three months ended March 31, ~~2021~~2022 and ~~2020~~2021 is presented below:


Record Date	Record Date	Payment Date	Per Unit Rate		Cash Distributions (in millions)		Record Date	Payment Date	Per Unit Rate		Cash Distributions (in millions)
2022							2022
February 7, 2022							February 7, 2022	February 14, 2022	$	0.625	$	60.9

2021	2021						2021
February 5, 2021	February 5, 2021	February 12, 2021	$	0.625	$	46.4	February 5, 2021	February 12, 2021	$	0.625	$	46.4

2020
February 7, 2020		February 14, 2020	$	0.625	$	45.3

~~Table of Contents~~

On April ~~15, 2021,~~14, 2022, we declared a distribution of ~~$0.625~~$0.655 per limited partner unit to be paid on May ~~14, 2021~~13, 2022 to unitholders of record on May ~~7, 2021~~6, 2022 with respect to the quarter ended March 31, ~~2021.~~2022.

Preferred Unitholders. During the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, we paid cash distributions to our preferred unitholders of approximately ~~$15.0~~$15 million in both periods. On April ~~15, 2021,~~14, 2022, the board of directors of our general partner authorized a cash distribution to our preferred unitholders of approximately ~~$15.0~~$15 million ~~for~~with respect to the quarter ended March 31, ~~2021.~~2022.

Crestwood Midstream

During the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, Crestwood Midstream paid cash distributions of ~~$334.0~~$238.1 million and ~~$57.0~~$334.0 million to its partners.

On February 1, 2022, Crestwood Midstream received a non-cash contribution of approximately $1,075.1 million from Crestwood Equity related to net assets it acquired in conjunction with the merger with Oasis Midstream. In addition, on February 1, 2022, Crestwood Equity contributed cash acquired in conjunction with the merger with Oasis Midstream of approximately $14.9 million to Crestwood Midstream.

Non-Controlling Partner

Crestwood Niobrara issued preferred interests to CN Jackalope Holdings LLC (Jackalope Holdings), which are reflected as non-controlling interest in subsidiary apart from partners’ capital (i.e., temporary equity) on our consolidated balance sheets. We adjust the carrying amount of our non-controlling interest to its redemption value each period through net income attributable to non-controlling partner.

The following table shows the change in our non-controlling interest in subsidiary at March 31, ~~2021~~2022 and ~~2020~~2021 (in millions):


Balance at December 31, ~~2020~~2021	$	~~432.7~~434.6

Distributions to non-controlling partner	(10.3)
Net income attributable to non-controlling partner	10.2
Balance at March 31, 2022	$	434.5


Balance at December 31, 2020	$	432.7

Distributions to non-controlling partner	(9.3)
Net income attributable to non-controlling partner	10.1
Balance at March 31, 2021	$	433.5


~~Balance at December 31, 2019~~	$	~~426.2~~
~~Distributions to non-controlling partner~~	~~(9.2)~~
~~Net income attributable to non-controlling partner~~	~~9.9~~
~~Balance at March 31, 2020~~	$	~~426.9~~

In April ~~2021,~~2022, Crestwood Niobrara paid cash distributions to Jackalope Holdings of approximately $10.3 million for the quarter ended March 31, ~~2021.~~2022.

Table of Contents

Other

In February ~~2021,~~2022, Crestwood Equity issued ~~50,000~~177,025 performance units under the Crestwood Equity Partners LP Long Term Incentive Plan (Crestwood LTIP). The performance units are designed to provide an incentive for continuous employment to certain key employees. The vesting of performance units is subject to the attainment of certain performance and market goals over a three-year period, and entitle a participant to receive common units of Crestwood Equity without payment of an exercise price upon vesting. As of March 31, ~~2021,~~2022, we had total unamortized compensation expense of approximately ~~$1.0~~$4.6 million related to these performance ~~units, which we expect will be amortized during the next three years.~~units. During the three months ended March 31, ~~2021,~~2022, we recognized compensation expense of ~~less then $0.1~~$0.2 million related to these performance units, which is included in general and administrative expenses on our consolidated statements of operations.

During the three months ended March 31, 2022, 206,017 performance units that were previously issued under the Crestwood LTIP vested, and as a result of the attainment of certain performance and market goals and related distributions during the three years that the awards were outstanding, we issued 526,322 common units during the three months ended March 31, 2022 related to those performance units.

Note 1112 - Earnings Per Limited Partner Unit

We calculate ~~basic net income per limited partner unit using~~ the two-class method. Our income (loss) is allocated to our common units and other participating securities (i.e.,subordinated units) based on the amount of dividends paid in the current period plus an allocation of the undistributed earnings or excess distributions over earnings to the extent that each security participates in income (loss) or excess distributions over income (loss). The dilutive effect of the stock-based compensation performance units is calculated using the treasury stock method which considers the impact to net income or loss attributable to Crestwood Equity Partners and limited partner units from the potential issuance of limited partner units. The dilutive effect of the Preferredpreferred units and Crestwood Niobrara preferred units ~~are calculated~~ using the if-converted method which assumes units

~~Table of Contents~~

are converted at the beginning of the period (beginning with their respective issuance date), and the resulting common units are included in the denominator of the diluted net income per common unit calculation for the period being presented. Distributions declared in the period and undeclared distributions that accumulated during the period are added back to the numerator for purposes of the if-converted calculation. The dilutive effect of the stock-based compensation performance units is calculated using the treasury stock method which considers the impact to net income or loss attributable to Crestwood Equity Partners and limited partner units from the potential issuance of limited partner units.

We exclude potentially dilutive securities from the determination of diluted earnings per unit (as well as their related income statement impacts) when their impact is anti-dilutive. The following table summarizes information regarding the weighted-average of common units excluded during the three months ended March 31, ~~2021~~2022 and ~~2020~~2021 (in millions):


		Three Months Ended				Three Months Ended
		March 31,				March 31,
			2021	2020			2022	2021
Preferred units (1)	Preferred units (1)		7.1	7.1	Preferred units (1)		7.1	7.1
Crestwood Niobrara’s preferred units(1)	Crestwood Niobrara’s preferred units(1)		4.2	25.6	Crestwood Niobrara’s preferred units(1)		3.6	4.2
Unit-based compensation performance units(1)	Unit-based compensation performance units(1)		0.1	0.5	Unit-based compensation performance units(1)		0.3	0.1
Subordinated units(1)(2)			0.4	0.4
Subordinated units(2)					Subordinated units(2)		—	0.4

(1)For additional information regarding the potential conversion/redemption of our preferred units and Crestwood Niobrara’s preferred units to CEQP common units, and of our performance units, ~~and subordinated units,~~ see our ~~2020~~2021 Annual Report on Form 10-K.

(2)In ~~conjunction with the Crestwood Holdings Transactions, in~~ March 2021, CEQP retired the subordinated units. For additional information regarding the retirement of the subordinated units, see Note ~~1 and Note 10.~~11.

Note 1213 – Segments

~~We have~~In conjunction with the divestiture of our Stagecoach Gas equity method investment as discussed in Note 5 and the merger with Oasis Midstream as discussed in Note 3, we modified our segments as of December 31, 2021 and, as a result, our financial statements reflect 3 operating and ~~reportable~~reporting segments: (i) gathering and ~~processing;~~processing north operations (includes our Arrow, Jackalope and Oasis Midstream Williston operations); (ii) gathering and processing south operations (includes our Marcellus, Barnett and Oasis Midstream Delaware Basin operations and our Crestwood Permian Basin Holdings LLC equity method investment); and (iii) storage and ~~transportation;~~logistics operations (includes our crude oil, NGL and ~~(iii)~~natural gas storage and logistics operations, and our Tres Holdings and PRBIC equity method investments). Our gathering and processing north and gathering and processing south segments were historically combined into one segment, and our storage and logistics segment was historically separated into a storage and transportation segment and a marketing, supply and ~~logistics.~~logistics segment. The results of our operations described above are now reflected in the new respective segments for all periods presented. Our corporate operations include all general and administrative expenses that are not allocated to our reportable segments. ~~For~~

Table of Contents

Below is a ~~further~~ description of our operating and reporting ~~segments, see Note 1. We assess~~segments.

•Gathering and Processing North. Our gathering and processing north operations provide natural gas, crude oil and produced water gathering, compression, treating, processing and disposal services to producers in the ~~performance of our operating segments based on EBITDA, which is defined as income before income taxes, plus debt-related costs (interest~~Williston Basin and ~~debt expense, net~~Powder River Basin.

•Gathering and ~~loss on modification/extinguishment of debt)~~Processing South. Our gathering and ~~depreciation, amortization~~processing south operations provide natural gas gathering, compression, treating and ~~accretion expense.~~processing and produced water gathering and disposal services to producers in the Marcellus, Barnett and Delaware basins.

•Storage and Logistics. Our storage and logistics operations provide NGLs, crude oil and natural gas storage, terminal, marketing and transportation (including rail, truck and pipeline) services to producers, refiners, marketers, utilities and other customers.

Below is a reconciliation of CEQP’s and CMLP’s net loss to EBITDA (in millions):


			CEQP				CMLP						CEQP				CMLP
		Three Months Ended			Three Months Ended							Three Months Ended			Three Months Ended
		March 31,			March 31,							March 31,			March 31,
			2021		2020		2021		2020				2022		2021		2022		2021
Net loss			$	(38.3)	$	(23.4)	$	(40.4)	$	(25.6)
Net income (loss)											Net income (loss)		$	22.2	$	(38.3)	$	20.2	$	(40.4)
Add:	Add:										Add:
Interest and debt expense, net	Interest and debt expense, net		36.0		32.6		36.0		32.6		Interest and debt expense, net		36.1		36.0		36.1		36.0
Loss on modification/extinguishment of debt	Loss on modification/extinguishment of debt		5.5		0		5.5		0		Loss on modification/extinguishment of debt		—		5.5		—		5.5
Benefit for income taxes	Benefit for income taxes		(0.1)		0		(0.1)		0		Benefit for income taxes		—		(0.1)		—		(0.1)
Depreciation, amortization and accretion	Depreciation, amortization and accretion		59.2		56.1		62.8		59.6		Depreciation, amortization and accretion		74.8		59.2		78.2		62.8
EBITDA	EBITDA		$	62.3	$	65.3	$	63.8	$	66.6	EBITDA		$	133.1	$	62.3	$	134.5	$	63.8

The following tables summarize CEQP’s and CMLP’s reportable segment data for the three months ended March 31, ~~2021~~2022 and ~~2020~~2021 (in millions). Intersegment revenues included in the following tables are accounted for as arms-length transactions that apply our revenue recognition policy described in our ~~2020~~2021 Annual Report on Form 10-K. Included in earnings (loss) from unconsolidated affiliates, net reflected in the tables below was approximately ~~$129.4~~$4.6 million and ~~$13.8~~$129.4 million of our proportionate share of interest expense, depreciation and amortization expense, goodwill impairments and gains (losses) on long-lived assets, net recorded by our equity investments for the three months ended March 31, ~~2021~~2022 and ~~2020.~~2021.

Table of Contents

Segment EBITDA Information


		Three Months Ended March 31, 2021											Three Months Ended March 31, 2022
		Gathering and Processing		Storage and Transportation		Marketing, Supply and Logistics		Corporate		Total			Gathering and Processing North		Gathering and Processing South		Storage and Logistics		Corporate		Total
Crestwood Midstream	Crestwood Midstream											Crestwood Midstream
Revenues	Revenues	$	154.4	$	2.0	$	876.3	$	0	$	1,032.7	Revenues	$	235.2	$	30.7	$	1,317.9	$	—	$	1,583.8
Intersegment revenues	Intersegment revenues	105.3		2.4		(107.7)		0		—		Intersegment revenues	127.4		—		(127.4)		—		—
Costs of product/services sold	Costs of product/services sold	116.5		0.4		696.9		0		813.8		Costs of product/services sold	205.6		(0.6)		1,159.4		—		1,364.4
Operations and maintenance expense	Operations and maintenance expense	21.4		0.6		10.8		0		32.8		Operations and maintenance expense	23.7		6.7		12.0		—		42.4
General and administrative expense	General and administrative expense	0		0		0		17.2		17.2		General and administrative expense	—		—		—		41.7		41.7
Gain (loss) on long-lived assets, net	Gain (loss) on long-lived assets, net	(1.5)		0		0.1		0		(1.4)		Gain (loss) on long-lived assets, net	—		0.2		(4.0)		—		(3.8)

Loss from unconsolidated affiliates, net		(0.8)		(102.9)		0		0		(103.7)
Earnings from unconsolidated affiliates, net												Earnings from unconsolidated affiliates, net	—		2.6		0.4		—		3.0
Crestwood Midstream EBITDA	Crestwood Midstream EBITDA	$	119.5	$	(99.5)	$	61.0	$	(17.2)	$	63.8	Crestwood Midstream EBITDA	$	133.3	$	27.4	$	15.5	$	(41.7)	$	134.5
Crestwood Equity	Crestwood Equity											Crestwood Equity
General and administrative expense	General and administrative expense	0		0		0		1.5		1.5		General and administrative expense	—		—		—		1.7		1.7

Other income, net												Other income, net	—		—		—		0.3		0.3
Crestwood Equity EBITDA	Crestwood Equity EBITDA	$	119.5	$	(99.5)	$	61.0	$	(18.7)	$	62.3	Crestwood Equity EBITDA	$	133.3	$	27.4	$	15.5	$	(43.1)	$	133.1


		Three Months Ended March 31, 2020											Three Months Ended March 31, 2021
		Gathering and Processing		Storage and Transportation		Marketing, Supply and Logistics		Corporate		Total			Gathering and Processing North		Gathering and Processing South		Storage and Logistics		Corporate		Total
Crestwood Midstream	Crestwood Midstream											Crestwood Midstream
Revenues	Revenues	$	214.9	$	3.5	$	509.5	$	0	$	727.9	Revenues	$	129.8	$	24.6	$	878.3	$	—	$	1,032.7
Intersegment revenues	Intersegment revenues	40.0		2.6		(42.6)		0		—		Intersegment revenues	105.3		—		(105.3)		—		—
Costs of product/services sold	Costs of product/services sold	108.3		0.2		425.9		0		534.4		Costs of product/services sold	116.2		0.3		697.3		—		813.8
Operations and maintenance expense	Operations and maintenance expense	27.0		1.4		9.2		0		37.6		Operations and maintenance expense	15.1		6.3		11.4		—		32.8
General and administrative expense	General and administrative expense	0		0		0		13.5		13.5		General and administrative expense	—		—		—		17.2		17.2
Loss on long-lived assets, net		(1.0)		0		0		0		(1.0)
Goodwill impairment		(80.3)		0		0		0		(80.3)

Earnings from unconsolidated affiliates, net		0.8		4.7		0		0		5.5
Gain (loss) on long-lived assets, net												Gain (loss) on long-lived assets, net	(0.2)		(1.3)		0.1		—		(1.4)
Loss from unconsolidated affiliates, net												Loss from unconsolidated affiliates, net	—		(0.8)		(102.9)		—		(103.7)
Crestwood Midstream EBITDA	Crestwood Midstream EBITDA	$	39.1	$	9.2	$	31.8	$	(13.5)	$	66.6	Crestwood Midstream EBITDA	$	103.6	$	15.9	$	(38.5)	$	(17.2)	$	63.8
Crestwood Equity	Crestwood Equity											Crestwood Equity
General and administrative expense	General and administrative expense	0		0		0		1.4		1.4		General and administrative expense	—		—		—		1.5		1.5
Other income, net		0		0		0		0.1		0.1

Crestwood Equity EBITDA	Crestwood Equity EBITDA	$	39.1	$	9.2	$	31.8	$	(14.8)	$	65.3	Crestwood Equity EBITDA	$	103.6	$	15.9	$	(38.5)	$	(18.7)	$	62.3

Other Segment Information


		CEQP				CMLP					CEQP				CMLP
		March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020			March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021
Total Assets	Total Assets									Total Assets
Gathering and Processing		$	3,421.9	$	3,464.6	$	3,563.5	$	3,609.7
Storage and Transportation		832.5		944.6		832.5		944.6
Marketing, Supply and Logistics		731.3		805.0		731.3		805.0
Gathering and Processing North										Gathering and Processing North	$	4,090.1	$	2,408.0	$	4,090.1	$	2,408.0
Gathering and Processing South										Gathering and Processing South	1,023.1		886.5		1,150.4		1,017.4
Storage and Logistics										Storage and Logistics	1,097.3		1,125.1		1,097.3		1,125.1
Corporate	Corporate	31.6		29.5		28.1		26.2		Corporate	29.6		26.1		24.3		20.7
Total Assets	Total Assets	$	5,017.3	$	5,243.7	$	5,155.4	$	5,385.5	Total Assets	$	6,240.1	$	4,445.7	$	6,362.1	$	4,571.2

Table of Contents

Note 1314 - Revenues

Contract Assets and Contract Liabilities

Our contract assets and contract liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. Our receivables related to our revenue contracts accounted for under ~~Topic 606~~Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) totaled ~~$223.0~~$429.8 million and ~~$219.9~~$331.0 million ~~for both CEQP and CMLP~~ at March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, and are included in accounts receivable on our consolidated balance sheets. Our contract assets are included in other non-current assets on our consolidated balance sheets. Our contract liabilities primarily consist of current and non-current deferred revenues. On our consolidated balance sheets, our current deferred revenues are included in accrued expenses and other liabilities and our non-current deferred revenues are included in other long-term liabilities. The majority of revenues associated with our deferred revenues is expected to be recognized as the performance obligations under the related contracts are satisfied over the next 1615 years.

The following table summarizes our contract assets and contract liabilities (in millions):


		March 31, 2021		December 31, 2020			March 31, 2022		December 31, 2021
Contract assets (non-current)	Contract assets (non-current)	$	1.0	$	1.0	Contract assets (non-current)	$	1.2	$	1.3
Contract liabilities (current)(1)	Contract liabilities (current)(1)	$	10.1	$	10.3	Contract liabilities (current)(1)	$	11.0	$	10.7
Contract liabilities (non-current)(1)	Contract liabilities (non-current)(1)	$	176.5	$	172.2	Contract liabilities (non-current)(1)	$	202.1	$	187.1

(1)During the three months ended March 31, ~~2021,~~2022, we recognized revenues of approximately ~~$3.1~~$3.5 million that were previously included in contract liabilities at December 31, ~~2020.~~2021. The remaining change in our contract liabilities during the three months ended March 31, ~~2021,~~2022 related to capital reimbursements associated with our revenue contracts and revenue deferrals associated with our contracts with increasing (decreasing) rates.

The following table summarizes the transaction price allocated to our remaining performance obligations under certain contracts that have not been recognized as of March 31, ~~2021~~2022 (in millions):


Remainder of 2021		$	69.8
2022		77.0
Remainder of 2022				Remainder of 2022	$	65.8
2023	2023	52.3		2023	65.1
2024	2024	31.4		2024	44.4
2025				2025	2.6
2026				2026	0.5
Thereafter				Thereafter	1.3
Total	Total	$	230.5	Total	$	179.7

Our remaining performance obligations presented in the table above exclude estimates of variable rate escalation clauses in our contracts with customers, and is generally limited to fixed-fee and percentage-of-proceeds service contracts which have fixed pricing and minimum volume terms and conditions. Our remaining performance obligations generally exclude, based on the following practical expedients that we elected to apply, disclosures for (i) variable consideration allocated to a wholly-unsatisfied promise to transfer a distinct service that forms part of the identified single performance obligation; (ii) unsatisfied performance obligations where the contract term is one year or less; and (iii) contracts for which we recognize revenues as amounts are invoiced.

Disaggregation of Revenues

The following tables summarize our revenues from contracts with customers disaggregated by type of product/service sold and by commodity type for each of our segments for the three months ended March 31, ~~2021~~2022 and ~~2020~~2021 (in millions). We believe this summary best depicts how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by economic factors. Our non-Topic 606 revenues presented in the tables below primarily represents revenues related to our commodity-based derivatives.

Table of Contents


		Three Months Ended March 31, 2021
		Gathering and Processing		Storage and Transportation		Marketing, Supply and Logistics		Intersegment Elimination		Total			Three Months Ended March 31, 2022
													Gathering and Processing North		Gathering and Processing South		Storage and Logistics		Intersegment Elimination		Total
Topic 606 revenues	Topic 606 revenues											Topic 606 revenues
Gathering	Gathering											Gathering
Natural gas	Natural gas	$	31.4	$	0	$	0	$	0	$	31.4	Natural gas	$	25.9	$	22.4	$	—	$	—	$	48.3
Crude oil	Crude oil	20.7		0		0		0		20.7		Crude oil	14.8		1.0		—		—		15.8
Water	Water	22.0		0		0		0		22.0		Water	34.7		2.2		—		—		36.9
Processing	Processing											Processing
Natural gas	Natural gas	7.0		0		0		0		7.0		Natural gas	14.4		1.1		—		—		15.5

Compression	Compression											Compression
Natural gas	Natural gas	4.7		0		0		0		4.7		Natural gas	—		3.5		—		—		3.5
Storage	Storage											Storage
Crude oil	Crude oil	0.1		0.6		0		(0.5)		0.2		Crude oil	0.5		—		—		(0.1)		0.4
NGLs	NGLs	0		0		3.7		0		3.7		NGLs	—		—		2.8		—		2.8
Pipeline	Pipeline											Pipeline
Crude oil	Crude oil	0		1.3		0		(0.5)		0.8		Crude oil	—		—		0.5		—		0.5

Transportation	Transportation											Transportation
Crude oil	Crude oil	0.7		0		0		0		0.7		Crude oil	1.2		0.1		—		—		1.3
NGLs	NGLs	0		0		4.2		0		4.2		NGLs	—		—		5.8		—		5.8

Rail Loading	Rail Loading											Rail Loading
Crude oil	Crude oil	0		2.3		0		(1.3)		1.0		Crude oil	—		—		0.4		—		0.4

Product Sales	Product Sales											Product Sales
Natural gas	Natural gas	42.8		0		95.6		(42.2)		96.2		Natural gas	63.9		0.3		98.7		(52.1)		110.8
Crude oil	Crude oil	90.0		0		251.2		(22.7)		318.5		Crude oil	128.1		—		374.0		(11.2)		490.9
NGLs	NGLs	40.3		0		406.0		(40.3)		406.0		NGLs	76.9		—		632.7		(64.0)		645.6
Water												Water	1.6		—		—		—		1.6
Other	Other	0		0.2		0.2		(0.2)		0.2		Other	0.2		—		0.3		—		0.5
Total Topic 606 revenues	Total Topic 606 revenues	259.7		4.4		760.9		(107.7)		917.3		Total Topic 606 revenues	362.2		30.6		1,115.2		(127.4)		1,380.6
Non-Topic 606 revenues	Non-Topic 606 revenues	0		0		115.4		0		115.4		Non-Topic 606 revenues	0.4		0.1		202.7		—		203.2
Total revenues	Total revenues	$	259.7	$	4.4	$	876.3	$	(107.7)	$	1,032.7	Total revenues	$	362.6	$	30.7	$	1,317.9	$	(127.4)	$	1,583.8

Table of Contents


		Three Months Ended March 31, 2020
		Gathering and Processing		Storage and Transportation		Marketing, Supply and Logistics		Intersegment Elimination		Total			Three Months Ended March 31, 2021
													Gathering and Processing North		Gathering and Processing South		Storage and Logistics		Intersegment Elimination		Total
Topic 606 revenues	Topic 606 revenues											Topic 606 revenues
Gathering	Gathering											Gathering
Natural gas	Natural gas	$	43.8	$	0	$	0	$	0	$	43.8	Natural gas	$	13.2	$	18.2	$	—	$	—	$	31.4
Crude oil	Crude oil	26.5		0		0		0		26.5		Crude oil	20.7		—		—		—		20.7
Water	Water	23.0		0		0		0		23.0		Water	22.0		—		—		—		22.0
Processing	Processing											Processing
Natural gas	Natural gas	10.2		0		0		0		10.2		Natural gas	5.8		1.2		—		—		7.0

Compression	Compression											Compression
Natural gas	Natural gas	6.3		0		0		0		6.3		Natural gas	—		4.7		—		—		4.7
Storage	Storage											Storage
Crude oil	Crude oil	0.5		0.6		0		(0.4)		0.7		Crude oil	0.1		—		0.2		(0.1)		0.2
NGLs	NGLs	0		0		1.6		0		1.6		NGLs	—		—		3.7		—		3.7
Pipeline	Pipeline											Pipeline
Crude oil	Crude oil	0		1.6		0		(0.5)		1.1		Crude oil	—		—		0.8		—		0.8

Transportation	Transportation											Transportation
Crude oil	Crude oil	2.0		0		1.6		0		3.6		Crude oil	0.7		—		—		—		0.7
NGLs	NGLs	0		0		1.7		0		1.7		NGLs	—		—		4.2		—		4.2

Rail Loading	Rail Loading											Rail Loading
Crude oil	Crude oil	0		3.4		0		(1.4)		2.0		Crude oil	—		—		1.0		—		1.0

Product Sales	Product Sales											Product Sales
Natural gas	Natural gas	12.0		0		18.3		(11.7)		18.6		Natural gas	42.3		0.5		95.6		(42.2)		96.2
Crude oil	Crude oil	121.1		0		250.2		(16.3)		355.0		Crude oil	90.0		—		251.2		(22.7)		318.5
NGLs	NGLs	9.5		0		160.3		(11.9)		157.9		NGLs	40.3		—		406.0		(40.3)		406.0
Other	Other	0		0.5		0.5		(0.4)		0.6		Other	—		—		0.2		—		0.2
Total Topic 606 revenues	Total Topic 606 revenues	254.9		6.1		434.2		(42.6)		652.6		Total Topic 606 revenues	235.1		24.6		762.9		(105.3)		917.3
Non-Topic 606 revenues	Non-Topic 606 revenues	0		0		75.3		0		75.3		Non-Topic 606 revenues	—		—		115.4		—		115.4
Total revenues	Total revenues	$	254.9	$	6.1	$	509.5	$	(42.6)	$	727.9	Total revenues	$	235.1	$	24.6	$	878.3	$	(105.3)	$	1,032.7

Note 1415 – Related Party Transactions

~~Crestwood Holdings indirectly owns both CEQP’s and CMLP’s general partner. The affiliates of Crestwood Holdings and its owners are considered CEQP’s and CMLP’s related parties.~~ We enter into transactions with our affiliates within the ordinary course of business, including product purchases, marketing services and various operating ~~agreements.~~agreements, including operating leases. We also enter into transactions with our affiliates related to services provided on our expansion projects.

Prior to August 2021, Crestwood Holdings indirectly owned our general partner and the affiliates of Crestwood Holdings and its owners were considered CEQP’s and CMLP’s related parties. With the completion of our strategic transactions with Crestwood Holdings in August 2021, Crestwood Holdings and its affiliates are no longer considered related parties of CEQP and CMLP. During the three months ended March 31, 2021, ~~and 2020,~~ we paid approximately $0.3 ~~million and $2.4~~ million of capital expenditures to Applied Consultants, Inc., an affiliate of Crestwood Holdings. In addition, during the three months ended March 31, 2021, Crestwood Holdings allocated a $4.6 million reduction of unit-based compensation charges to CEQP and CMLP. Also, CEQP allocated approximately $0.2 million of its general and administrative costs to Crestwood Holdings during the three months ended March 31, 2021.

Table of Contents

The following table shows transactions with our affiliates which are reflected in our consolidated statements of operations (in millions). For a further description of our related party agreements, see our ~~2020~~2021 Annual Report on Form 10-K.


		Three Months Ended						Three Months Ended
		March 31,						March 31,
			2021		2020				2022		2021
Revenues at CEQP and CMLP(1)	Revenues at CEQP and CMLP(1)		$	4.9	$	7.5	Revenues at CEQP and CMLP(1)		$	97.7	$	4.9
Costs of product/services sold at CEQP and CMLP(2)	Costs of product/services sold at CEQP and CMLP(2)		$	41.1	$	3.2	Costs of product/services sold at CEQP and CMLP(2)		$	68.5	$	41.1
Operations and maintenance expenses charged by CEQP and CMLP(3)			$	5.7	$	6.2
Operations and maintenance expenses at CEQP and CMLP charged to our unconsolidated affiliates(3)							Operations and maintenance expenses at CEQP and CMLP charged to our unconsolidated affiliates(3)		$	4.8	$	5.7
General and administrative expenses charged by CEQP to CMLP, net(4)	General and administrative expenses charged by CEQP to CMLP, net(4)		$	5.9	$	7.1	General and administrative expenses charged by CEQP to CMLP, net(4)		$	7.5	$	5.9
General and administrative expenses at CEQP charged to Crestwood Holdings, net(5)			$	4.8	$	12.8
General and administrative expenses at CEQP and CMLP(5)							General and administrative expenses at CEQP and CMLP(5)		$	0.9	$	—

(1)~~Relates~~Includes (i) $1.6 million and $4.9 million during the three months ended March 31, 2022 and 2021 related to the sale of NGLs to a subsidiary of Crestwood ~~Permian.~~

~~(2)Includes (i) $30.3 million and $3.2~~Permian; (ii) $0.5 million during the three months ended March 31, ~~2021~~2022 related to compressor leases with a subsidiary of Crestwood Permian; (iii) $59.0 million during the three months ended March 31, 2022 primarily related to the sale of crude oil and ~~2020~~NGLs to a subsidiary of Oasis Petroleum; and (iv) $36.6 million during the three months ended March 31, 2022 primarily related to gathering and processing services under agreements with a subsidiary of Oasis Petroleum.

(2)Includes (i) $36.2 million and $30.3 million during the three months ended March 31, 2022 and 2021 related to purchases of natural gas and NGLs from a subsidiary of Crestwood Permian; (ii) $0.9 million and ~~(ii)~~ $10.8 million during the three months ended March 31, 2022 and 2021 primarily related to purchases of natural gas from a subsidiary of Tres ~~Holdings.~~Holdings; and (iii) $31.4 million during the three months ended March 31, 2022 primarily related to purchases of NGLs from a subsidiary of Oasis Petroleum.

(3)We have operating agreements with certain of our unconsolidated affiliates pursuant to which we charge them operations and maintenance expenses in accordance with their respective agreements, and these charges are reflected as a reduction of operations and maintenance expenses in our consolidated statements of operations. During the three months ended March 31, 2022, we charged $1.2 million to Tres Holdings and $3.6 million to Crestwood Permian. During the three months ended March 31, 2021, we charged $1.7 million to Stagecoach Gas, $1.2 million to Tres Holdings, and $2.8 million to Crestwood Permian. ~~During the three months ended March 31, 2020, we charged $1.7 million to Stagecoach Gas, $1.1 million to Tres Holdings, and $3.4 million to Crestwood Permian.~~

(4)Includes ~~$6.9~~$8.6 million and ~~$8.2~~$6.9 million of unit-based compensation charges allocated from CEQP to CMLP ~~for~~during the three months ended March 31, ~~2021~~2022 and ~~2020.~~2021. In addition, includes ~~$1.0~~$1.1 million and ~~$1.1~~$1.0 million of CMLP’s general and administrative costs allocated to CEQP during the three months ended March 31, ~~2021~~2022 and ~~2020.~~2021.

(5)Includes ~~a $4.6~~$0.9 million ~~and $12.6 million reduction of unit-based compensation charges allocated from Crestwood Holdings to CEQP and CMLP~~ during the three months ended March 31, ~~2021 and 2020. In addition, includes $0.2 million~~2022 of ~~CEQP’s~~ general and administrative ~~costs allocated~~expenses related to ~~Crestwood Holdings during both the three months ended March 31, 2021 and 2020.~~a transition services agreement with Oasis Petroleum.

The following table shows ~~accounts receivable and accounts payable~~balances with our affiliates which are reflected in our consolidated balance sheets (in millions):

March 31,
2021 December 31,
2020
Accounts receivable at CEQP and CMLP $ 8.1 $ 2.5
Accounts payable at CEQP(1)
$ 15.4 $ 7.5
Accounts payable at CMLP $ 15.4 $ 5.0


	March 31, 2022		December 31, 2021
Accounts receivable at CEQP and CMLP	$	60.2	$	8.2
Accounts payable at CEQP and CMLP	$	16.4	$	12.0

~~(1)~~In conjunction with the Crestwood Holdings Transactions discussed in Note 1, CEQP eliminated approximately $2.6 million of accounts payable to Crestwood Holdings which is reflected as an increase to CEQP’s common unitholders’ partners’ capital in its consolidated statement of partners’ capital during the three months ended March 31, 2021.

Table of Contents

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

Our Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the consolidated financial statements and the accompanying footnotes and Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations in our ~~2020~~2021 Annual Report on Form 10-K.

This report, including information included or incorporated by reference herein, contains forward-looking statements concerning the financial condition, results of operations, plans, objectives, future performance and business of our company and its subsidiaries. These forward-looking statements include:

•statements that are not historical in nature, including, but not limited to: (i) our belief that anticipated cash from operations, cash distributions from entities that we control, and borrowing capacity under our credit facility will be sufficient to meet our anticipated liquidity needs for the foreseeable future; (ii) our belief that we do not have material potential liability in connection with legal proceedings that would have a significant financial impact on our consolidated financial condition, results of operations or cash flows; and (iii) our belief that our assets will continue to benefit from the development of unconventional shale plays as significant supply basins; and

•statements preceded by, followed by or that contain forward-looking terminology including the words “believe,” “expect,” “may,” “will,” “should,” “could,” “anticipate,” “estimate,” “intend” or the negation thereof, or similar expressions.

Forward-looking statements are not guarantees of future performance or results. They involve risks, uncertainties and assumptions. Actual results may differ materially from those contemplated by the forward-looking statements due to, among others, the following factors:

•our ability to successfully implement our business plan for our assets and operations;

•governmental legislation and regulations;

•industry factors that influence the supply of and demand for crude oil, natural gas and NGLs;

•industry factors that influence the demand for services in the markets (particularly unconventional shale plays) in which we provide services;

•weather conditions;

•outbreak of illness, pandemic or any other public health crisis, including the COVID-19 pandemic;

•the availability of crude oil, natural gas and NGLs, and the price of those commodities, to consumers relative to the price of alternative and competing fuels;

•the availability of storage for hydrocarbons;

•the ability of members of the Organization of Petroleum Exporting Countries (OPEC) and other oil-producing countries to agree and maintain oil price and production controls;

•economic conditions;

•costs or difficulties related to the integration of acquisitions and success of our joint ventures’ operations;

•environmental claims;

•operating hazards and other risks incidental to the provision of midstream services, including gathering, compressing, treating, processing, fractionating, transporting and storing energy products (i.e., crude oil, NGLs and natural gas) and related products (i.e., produced water);

•interest rates;

•the price and availability of debt and equity financing, including our ability to raise capital through alternatives like joint ventures; and

•the ability to sell or monetize assets, to reduce indebtedness, to repurchase our equity securities, to make strategic investments, or for other general partnership purposes.

For additional factors that could cause actual results to be materially different from those described in the forward-looking statements, see Part I, Item 1A. Risk Factors of our ~~2020~~2021 Annual Report on Form 10-K.

Outlook and Trends

Our business objective is to create long-term value for our unitholders. We expect to create value for our investors by generating stable operating margins and improving cash flows from our diversified midstream operations by prudently financing investments in our assets and expansions of our portfolio, maximizing throughput and optimizing services on our assets, and effectively controlling our capital expenditures, operating and administrative costs.

Table of Contents

We have taken a number of strategic steps to better position the Company as ~~an industry leader in Environmental, Social and Governance (ESG) efforts and as~~ a stronger, better capitalized company that can accretively grow cash ~~flows.~~flows and as an industry leader in Environmental, Social and Governance (ESG) efforts.

~~In March 2021, CEQP~~We continue to drive our long-term growth strategy through disciplined capital investments utilizing our current financial flexibility, and on February 1, 2022, we acquired Oasis Midstream Partners LP (Oasis Midstream) in an equity and cash transaction valued at approximately ~~11.5~~$1.8 billion. Pursuant to the merger agreement, Oasis Petroleum Inc. (Oasis Petroleum) received $150 million in cash plus 20.9 million newly issued CEQP common units ~~0.4~~in exchange for its 33.8 million ~~subordinated~~common units ~~of CEQP and 100% of the equity interests of Crestwood Marcellus Holdings LLC and Crestwood Gas Services Holdings LLC (whose assets consisted solely of~~held in Oasis Midstream. In addition, Oasis Midstream’s public unitholders received 12.9 million newly issued CEQP common ~~and subordinated~~ units ~~and 1% of~~in exchange for the ~~limited partner interests in Crestwood Holdings LP) from Crestwood Holdings, and signed~~14.8 million Oasis Midstream common units held by them. Additionally, under the merger agreement, Oasis Petroleum received a ~~definitive agreement to acquire the general partner and the remaining 99% limited partner interests of Crestwood Holdings LP (whose assets consist solely of~~$10 million cash payment for its ownership ~~interest in Crestwood Equity GP LLC, which owns CEQP’s non-economic general partner interest) (collectively the Crestwood Holdings Transactions) for $268 million in cash. The acquisition~~ of the general partner of Oasis Midstream. This transaction further solidifies Crestwood’s competitive position in the Williston Basin with exposure to approximately 1,200 drilling locations and ~~limited partner interests of Crestwood Holdings LP will close on or before~~535,000 dedicated acres and expands the 180th day after the date of the initial closing of the Crestwood Holdings Transactions. The purchase price was funded through borrowings under the Crestwood Midstream credit facility. The Crestwood Holdings Transactions resulted in CEQP retiring the commoncompany’s relationship with Oasis Petroleum. Additionally, Oasis Midstream’s Wild Basin gathering and ~~subordinated units acquired from Crestwood Holdings.~~

~~The Crestwood Holdings Transactions were a significant step in~~processing assets are highly complementary with our ~~strategy~~Arrow gathering system and Bear Den processing facility which provides for immediate opportunities to drive ~~peer leading governance~~cost savings and ~~set the stage for future growth by simplifying our organizational structure, increasing our public float~~commercial synergies and liquidity and enhancing our financial flexibility as we strive to generate long-term value for our unitholders. Additionally, in connection with the Crestwood Holdings Transactions, Crestwood Holdings repaid allbetter utilization of its outstanding debt which further enhances CEQP’s future flexibility around capital allocation priorities and eliminates any potential future risks around a change of control related to Crestwood Holdings’ debt as previously described in our Part I, Item 1A. Risk Factors of our 2020 Annual Report on Form 10-K. Once the Crestwood Holdings Transactions are fully closed, CEQP will transition to a traditional public company governance structure with a publicly elected board of directors which further ensures alignment between management and the Board of Directors with common unitholders and is consistent with our long-term ESG program.available gas processing capacity.

In addition to the ~~strategic steps~~merger with Oasis Midstream discussed above, we have also taken steps to (i) ~~substantially reduce~~minimize capital expenditures ~~in response~~ to ~~lower~~better align with development activity by our gathering and processing customers; (ii) realign our organization to reduce operating and administrative expenses; (iii) engage with our customers to maintain volumes across our asset portfolio; (iv) optimize our storage, transportation and marketing assets to take advantage of regional commodity price volatility; and (v) evaluate our debt and equity structure to preserve liquidity and ensure balance sheet strength. Given our efforts over the past few years to improve the partnership’s competitive position in the businesses we operate, manage costs and improve margins and create a stronger balance sheet, we believe the Company is well positioned to execute its business plan.

Recent Developments

Bakken DAPL Matter. In July 2020, a U.S. District Court (District Court) ordered the Dakota Access Pipeline (DAPL) to cease operation based on an alleged procedural permitting failure. On August 5, 2020, the U.S. Court of Appeals for the District of Columbia Circuit (D.C. Circuit) stayed the DAPL shutdown, and ~~set an expedited briefing schedule to determine the merits of the District Court’s decision. The D.C. Circuit~~subsequently issued an opinion ~~on January 26, 2021, which upheld~~upholding the District Court’s decision on the merits, but ~~did~~ not ~~rule on whether DAPL should be prohibited from~~prohibiting DAPL’s continued operation. The plaintiffs sought another injunction against DAPL’s ~~continued~~ operation, which ~~has been fully briefed before the District Court. On April 9, 2021, the Army Corps informed~~was denied by the District Court ~~it was continuing to monitor DAPL’s operation, and, at~~in May 2021. As required by the ~~moment, has no plans to hinder DAPL’s operation. The~~ District Court, ~~granted a 10-day continuance following~~ the U.S. Army ~~Corps’ announcement on April 9, 2021 and~~Corps of Engineers is currently conducting an environmental impact statement, which is currently expected to ~~render a decision as early as May 2021. Most recently, on April 23, 2021,~~be complete in September 2022. We expect DAPL will remain in operation while the D.C. Circuit denied DAPL’s rehearing request for the January 26, 2021 decision vacating necessary permitting for DAPL. We continue to monitor these legal proceedings, as well as the Army Corps renewed permitting efforts.environmental impact statement is being completed.

~~We are actively engaged with our producer customers on the Arrow system to ensure downstream market access for their crude oil volumes.~~ The Arrow gathering system currently connects to the DAPL, Kinder Morgan Hiland, Tesoro and True Companies’ Bridger Four Bears pipelines, providing significant downstream delivery capacity for our Arrow customers. Additionally, we can transport Arrow crude volumes to our COLT Hub facility by pipeline or truck, which mitigates the impact of any potential pipeline shut-downs to our producers with the ability to access multiple markets out of the basin.

~~Regulatory Matters~~Carbon Management. One of the core initiatives related to our ESG efforts surrounds our focus on managing the intensity of our emissions in order to reduce climate-related risk to our business.

In January 2022, we published our first carbon management plan (CMP), which outlines near-term emissions reduction and management activities that we intend to implement over the next three years. The ~~Federal Energy Regulatory Commission (FERC) issued~~CMP includes several core objectives, including (i) reducing emissions intensity of our assets; (ii) evaluating opportunities to reduce Scope 2 greenhouse gas (GHG) emissions while managing our operations’ energy efficiency; (iii) enhancing our process by which we manage GHG emissions; (iv) piloting methane emission monitoring devices at certain of our facilities; (v) participating in the development of responsibly sourced gas standards for the midstream sector; (vi) investing in technology to better inventory and calculate emissions data and integrating the technology into our operations; and (vii) participating in and providing leadership to trade associations focused on climate-related risks.

We currently believe that our carbon management efforts will help to mitigate the potential impact that emissions may have on our capital expenditures or results of operations in the future, although we currently anticipate that these efforts will not have a ~~Notice~~material impact on our capital expenditures or results of Inquiry (NOI) on April 19, 2018 (2018 NOI) initiating a review of its policies on certification of natural gas pipelines, including an examination of its long-standing Policy Statement on Certification of New Interstate Natural Gas Pipeline Facilities (1999 Policy Statement), issuedoperations in ~~1999, that is used to~~2022.

Table of Contents

determine whether to grant certificates for new pipeline projects. On February 18, 2021, the FERC issued another NOI (2021 NOI), reopening its review of the 1999 Policy Statement. Comments on the 2021 NOI are due on May 26, 2021. Although the FERC has not taken any further action regarding the 2018 NOI or 2021 NOI, we are unable to predict what, if any, changes may be proposed as a result of the NOIs that will affect our natural gas pipeline operations or when such proposals, if any, might become effective.

~~Critical Accounting Estimates~~

Our critical accounting estimates are consistent with those described in our 2020 Annual Report on Form 10-K. Below is an update of our critical accounting estimates related to equity method investments.

~~Equity Method Investments~~

We evaluate our equity method investments for impairment when events or circumstances indicate that the carrying value of the equity method investment may be impaired and that impairment is other than temporary. If an event occurs, we evaluate the recoverability of our carrying value based on the fair value of the investment. If an impairment is indicated, we adjust the carrying values of the asset downward, if necessary, to their estimated fair values.

We estimate the fair value of our equity method investments based on a number of factors, including discount rates, projected cash flows, enterprise value and the potential value we would receive if we sold the equity method investment. Estimating projected cash flows requires us to make certain assumptions as it relates to the future operating performance of each of our equity method investments (which includes assumptions, among others, about estimating future operating margins and related future growth in those margins, contracting efforts and the cost and timing of facility expansions) and assumptions related to our equity method investments’ customers, such as their future capital and operating plans and their financial condition. When considering operating performance, various factors are considered such as current and changing economic conditions and the commodity price environment, among others. Due to the imprecise nature of these projections and assumptions, actual results can and often do, differ from our estimates.

Our equity method investments have long-lived assets, intangible assets, goodwill and equity method investments in their underlying financial statements, and our equity investees apply similar accounting policies and have similar critical accounting estimates in assessing those assets for impairment as we do. During the first quarter of 2021, we recorded a $119.9 million reduction to the equity earnings from our Stagecoach Gas equity method investment as a result of us recording our proportionate share of a goodwill impairment recorded by the equity method investee. Stagecoach Gas recorded this goodwill impairment based on market-based information received from Con Edison Gas Pipeline and Storage Northeast, LLC’s (the other 50% owner of Stagecoach Gas) strategic evaluation of its investment in Stagecoach Gas during the three months ended March 31, 2021. Stagecoach Gas has historically utilized an income-based approach during its previous goodwill impairment evaluations however, based on recent market-based information received, Stagecoach Gas determined that a combination of the income-based approach and market-based approach was appropriate in determining the fair value of its reporting unit during the three months ended March 31, 2021. The carrying value of our Stagecoach Gas equity method investment was $666.2 million at March 31, 2021. None of our other equity method investments recorded any material impairments during the three months ended March 31, 2021.

How We Evaluate Our Operations

We evaluate our overall business performance based primarily on EBITDA and Adjusted EBITDA. We do not utilize depreciation, amortization and accretion expense in our key measures because we focus our performance management on cash flow generation and our assets have long useful lives.

EBITDA and Adjusted EBITDA - We believe that EBITDA and Adjusted EBITDA are widely accepted financial indicators of a company’s operational performance and its ability to incur and service debt, fund capital expenditures and make distributions. We believe that EBITDA and Adjusted EBITDA are useful to our investors because it allows them to use the same performance measure analyzed internally by our management to evaluate the performance of our businesses and investments without regard to the manner in which they are financed or our capital structure. EBITDA is defined as income before income taxes, plus debt-related costs (interest and debt expense, net and 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 gains and losses on long-lived assets and other impairments. Adjusted EBITDA also considers the impact of certain significant items, such as unit-based compensation charges, gains or losses on long-lived assets, impairments of goodwill, third party costs

~~Table of Contents~~

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 and restructuring of our operations and corporate structure, 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 as 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.

Table of Contents

Results of Operations

The following tables summarize our results of operations (in millions):


			Crestwood Equity					Crestwood Midstream						Crestwood Equity					Crestwood Midstream
		Three Months Ended					Three Months Ended			Three Months Ended					Three Months Ended
		March 31,					March 31,			March 31,					March 31,
			2021		2020			2021			2020				2022		2021		2022		2021
Revenues	Revenues		$	1,032.7	$	727.9		$	1,032.7		$	727.9	Revenues		$	1,583.8	$	1,032.7	$	1,583.8	$	1,032.7
Costs of product/services sold	Costs of product/services sold		813.8		534.4			813.8			534.4		Costs of product/services sold		1,364.4		813.8		1,364.4		813.8
Operations and maintenance expense	Operations and maintenance expense		32.8		37.6			32.8			37.6		Operations and maintenance expense		42.4		32.8		42.4		32.8
General and administrative expense	General and administrative expense		18.7		14.9			17.2			13.5		General and administrative expense		43.4		18.7		41.7		17.2
Depreciation, amortization and accretion	Depreciation, amortization and accretion		59.2		56.1			62.8			59.6		Depreciation, amortization and accretion		74.8		59.2		78.2		62.8
Loss on long-lived assets, net	Loss on long-lived assets, net		1.4		1.0			1.4			1.0		Loss on long-lived assets, net		3.8		1.4		3.8		1.4

Goodwill impairment			—		80.3			—			80.3

Operating income	Operating income		106.8		3.6			104.7			1.5		Operating income		55.0		106.8		53.3		104.7
Earnings (loss) from unconsolidated affiliates, net	Earnings (loss) from unconsolidated affiliates, net		(103.7)		5.5			(103.7)			5.5		Earnings (loss) from unconsolidated affiliates, net		3.0		(103.7)		3.0		(103.7)
Interest and debt expense, net	Interest and debt expense, net		(36.0)		(32.6)			(36.0)			(32.6)		Interest and debt expense, net		(36.1)		(36.0)		(36.1)		(36.0)
Loss on modification/extinguishment of debt	Loss on modification/extinguishment of debt		(5.5)		—			(5.5)			—		Loss on modification/extinguishment of debt		—		(5.5)		—		(5.5)
Other income, net	Other income, net		—		0.1			—			—		Other income, net		0.3		—		—		—
Benefit for income taxes	Benefit for income taxes		0.1		—			0.1			—		Benefit for income taxes		—		0.1		—		0.1
Net loss			(38.3)		(23.4)			(40.4)			(25.6)
Net income (loss)													Net income (loss)		22.2		(38.3)		20.2		(40.4)
Add:	Add:												Add:
Interest and debt expense, net	Interest and debt expense, net		36.0		32.6			36.0			32.6		Interest and debt expense, net		36.1		36.0		36.1		36.0
Loss on modification/extinguishment of debt	Loss on modification/extinguishment of debt		5.5		—			5.5			—		Loss on modification/extinguishment of debt		—		5.5		—		5.5
Benefit for income taxes	Benefit for income taxes		(0.1)		—			(0.1)			—		Benefit for income taxes		—		(0.1)		—		(0.1)
Depreciation, amortization and accretion	Depreciation, amortization and accretion		59.2		56.1			62.8			59.6		Depreciation, amortization and accretion		74.8		59.2		78.2		62.8
EBITDA	EBITDA		62.3		65.3			63.8			66.6		EBITDA		133.1		62.3		134.5		63.8
Unit-based compensation charges	Unit-based compensation charges		2.3		(4.4)			2.3			(4.4)		Unit-based compensation charges		8.6		2.3		8.6		2.3
Loss on long-lived assets, net	Loss on long-lived assets, net		1.4		1.0			1.4			1.0		Loss on long-lived assets, net		3.8		1.4		3.8		1.4

Goodwill impairment			—		80.3			—			80.3

(Earnings) loss from unconsolidated affiliates, net	(Earnings) loss from unconsolidated affiliates, net		103.7		(5.5)			103.7			(5.5)		(Earnings) loss from unconsolidated affiliates, net		(3.0)		103.7		(3.0)		103.7
Adjusted EBITDA from unconsolidated affiliates, net	Adjusted EBITDA from unconsolidated affiliates, net		25.7		19.3			25.7			19.3		Adjusted EBITDA from unconsolidated affiliates, net		7.6		25.7		7.6		25.7
Change in fair value of commodity inventory-related derivative contracts	Change in fair value of commodity inventory-related derivative contracts		(30.5)		(5.8)			(30.5)			(5.8)		Change in fair value of commodity inventory-related derivative contracts		5.7		(30.5)		5.7		(30.5)
Significant transaction and environmental related costs and other items	Significant transaction and environmental related costs and other items		0.5		1.2			0.3			1.2		Significant transaction and environmental related costs and other items		17.0		0.5		17.0		0.3
Adjusted EBITDA	Adjusted EBITDA		$	165.4	$	151.4		$	166.7		$	152.7	Adjusted EBITDA		$	172.8	$	165.4	$	174.2	$	166.7

Table of Contents


			Crestwood Equity					Crestwood Midstream						Crestwood Equity					Crestwood Midstream
		Three Months Ended					Three Months Ended			Three Months Ended					Three Months Ended
		March 31,					March 31,			March 31,					March 31,
			2021		2020			2021			2020				2022		2021		2022		2021
Net cash provided by operating activities	Net cash provided by operating activities		$	258.5	$	119.2		$	259.2		$	115.8	Net cash provided by operating activities		$	222.5	$	258.5	$	223.9	$	259.2
Net changes in operating assets and liabilities	Net changes in operating assets and liabilities		(122.8)		(3.7)			(122.0)			1.2		Net changes in operating assets and liabilities		(112.9)		(122.8)		(112.8)		(122.0)
Amortization of debt-related deferred costs	Amortization of debt-related deferred costs		(1.7)		(1.6)			(1.7)			(1.6)		Amortization of debt-related deferred costs		(0.8)		(1.7)		(0.8)		(1.7)
Interest and debt expense, net	Interest and debt expense, net		36.0		32.6			36.0			32.6		Interest and debt expense, net		36.1		36.0		36.1		36.0
Unit-based compensation charges	Unit-based compensation charges		(2.3)		4.4			(2.3)			4.4		Unit-based compensation charges		(8.6)		(2.3)		(8.6)		(2.3)
Loss on long-lived assets, net	Loss on long-lived assets, net		(1.4)		(1.0)			(1.4)			(1.0)		Loss on long-lived assets, net		(3.8)		(1.4)		(3.8)		(1.4)

Goodwill impairment			—		(80.3)			—			(80.3)

Earnings from unconsolidated affiliates, net, adjusted for cash distributions received			(103.8)		(4.5)			(103.8)			(4.5)

Earnings (loss) from unconsolidated affiliates, net, adjusted for cash distributions received													Earnings (loss) from unconsolidated affiliates, net, adjusted for cash distributions received		0.4		(103.8)		0.4		(103.8)
Deferred income taxes	Deferred income taxes		—		0.2			—			—		Deferred income taxes		0.1		—		—		—
Benefit for income taxes	Benefit for income taxes		(0.1)		—			(0.1)			—		Benefit for income taxes		—		(0.1)		—		(0.1)
Other non-cash income	Other non-cash income		(0.1)		—			(0.1)			—		Other non-cash income		0.1		(0.1)		0.1		(0.1)
EBITDA	EBITDA		62.3		65.3			63.8			66.6		EBITDA		133.1		62.3		134.5		63.8
Unit-based compensation charges	Unit-based compensation charges		2.3		(4.4)			2.3			(4.4)		Unit-based compensation charges		8.6		2.3		8.6		2.3
Loss on long-lived assets, net	Loss on long-lived assets, net		1.4		1.0			1.4			1.0		Loss on long-lived assets, net		3.8		1.4		3.8		1.4

Goodwill impairment			—		80.3			—			80.3

(Earnings) loss from unconsolidated affiliates, net	(Earnings) loss from unconsolidated affiliates, net		103.7		(5.5)			103.7			(5.5)		(Earnings) loss from unconsolidated affiliates, net		(3.0)		103.7		(3.0)		103.7
Adjusted EBITDA from unconsolidated affiliates, net	Adjusted EBITDA from unconsolidated affiliates, net		25.7		19.3			25.7			19.3		Adjusted EBITDA from unconsolidated affiliates, net		7.6		25.7		7.6		25.7
Change in fair value of commodity inventory-related derivative contracts	Change in fair value of commodity inventory-related derivative contracts		(30.5)		(5.8)			(30.5)			(5.8)		Change in fair value of commodity inventory-related derivative contracts		5.7		(30.5)		5.7		(30.5)
Significant transaction and environmental related costs and other items	Significant transaction and environmental related costs and other items		0.5		1.2			0.3			1.2		Significant transaction and environmental related costs and other items		17.0		0.5		17.0		0.3
Adjusted EBITDA	Adjusted EBITDA		$	165.4	$	151.4		$	166.7		$	152.7	Adjusted EBITDA		$	172.8	$	165.4	$	174.2	$	166.7

Segment Results

The following table summarizes the EBITDA of our segments (in millions):


		Three Months Ended						Three Months Ended							Three Months Ended						Three Months Ended
		March 31, 2021						March 31, 2020							March 31, 2022						March 31, 2021
		Gathering and Processing		Storage and Transportation		Marketing, Supply and Logistics		Gathering and Processing		Storage and Transportation		Marketing, Supply and Logistics			Gathering and Processing North		Gathering and Processing South		Storage and Logistics		Gathering and Processing North		Gathering and Processing South		Storage and Logistics
Revenues	Revenues	$	154.4	$	2.0	$	876.3	$	214.9	$	3.5	$	509.5	Revenues	$	235.2	$	30.7	$	1,317.9	$	129.8	$	24.6	$	878.3
Intersegment revenues	Intersegment revenues	105.3		2.4		(107.7)		40.0		2.6		(42.6)		Intersegment revenues	127.4		—		(127.4)		105.3		—		(105.3)
Costs of product/services sold	Costs of product/services sold	116.5		0.4		696.9		108.3		0.2		425.9		Costs of product/services sold	205.6		(0.6)		1,159.4		116.2		0.3		697.3
Operations and maintenance expenses	Operations and maintenance expenses	21.4		0.6		10.8		27.0		1.4		9.2		Operations and maintenance expenses	23.7		6.7		12.0		15.1		6.3		11.4

Gain (loss) on long-lived assets, net	Gain (loss) on long-lived assets, net	(1.5)		—		0.1		(1.0)		—		—		Gain (loss) on long-lived assets, net	—		0.2		(4.0)		(0.2)		(1.3)		0.1
Goodwill impairment		—		—		—		(80.3)		—		—

Earnings (loss) from unconsolidated affiliates, net	Earnings (loss) from unconsolidated affiliates, net	(0.8)		(102.9)		—		0.8		4.7		—		Earnings (loss) from unconsolidated affiliates, net	—		2.6		0.4		—		(0.8)		(102.9)

EBITDA	EBITDA	$	119.5	$	(99.5)	$	61.0	$	39.1	$	9.2	$	31.8	EBITDA	$	133.3	$	27.4	$	15.5	$	103.6	$	15.9	$	(38.5)

Below is a discussion of the factors that impacted EBITDA by segment for the three months ended March 31, ~~2021~~2022 compared to the same period in ~~2020.~~2021.

Gathering and Processing North

EBITDA for our gathering and processing north segment increased by approximately $29.7 million during the three months ended March 31, 2022 compared to the same period in 2021. On February 1, 2022, we completed the merger with Oasis Midstream, and as a result, we began reflecting the financial results of Oasis Midstream’s Williston Basin operations in our gathering and processing north segment.

Our gathering and processing north segment’s revenues increased by approximately $127.5 million during the three months ended March 31, 2022 compared to the same period in 2021, while our costs of product/services sold increased by

Table of Contents

approximately $89.4 million. During the three months ended March 31, 2022, we recognized revenues and product costs of approximately $63.5 million and $19.3 million, respectively, related to our Oasis Midstream Williston operations. The remaining increases in our gathering and processing north segment’s revenues and costs of product/services sold were primarily driven by our Arrow operations which experienced higher average commodity prices on its agreements under which it purchases and sells crude oil and natural gas, partially offset by lower volumes due to our customers shutting in production during early 2022 as a result of winter weather conditions. During the three months ended March 31, 2022, Arrow’s natural gas gathering and processing volumes decreased by 10% and its crude oil volumes decreased by 32% compared to the same period in 2021.

Our gathering and processing north segment’s operations and maintenance expenses increased by approximately $8.6 million during the three months ended March 31, 2022 compared to the same period in 2021, primarily due to our Oasis Midstream Williston operations.

Gathering and Processing South

EBITDA for our gathering and processing south segment increased by approximately $80.4 million during the three months March 31, 2021 compared to the same period in 2020. Our gathering and processing segment’s EBITDA for the three months ended March 31, 2020 was impacted by an $80.3 million goodwill impairment related to our Jackalope operations (see Item 1. Financial Statements, Note 2 for a further discussion of this impairment).

~~Our gathering and processing segment’s revenues increased by approximately $4.8~~$11.5 million during the three months ended March 31, ~~2021~~2022 compared to the same period in ~~2020, while our costs~~2021. As described above, upon the completion of ~~product/services sold increased by approximately $8.2 million. The increases were primarily driven by higher volumes and higher average prices that~~the merger with Oasis Midstream, we began reflecting the financial results of Oasis Midstream’s Delaware Basin operations in our gathering and processing ~~segment (primarily our Arrow operations) realized on its agreements under which it purchases~~south segment.

Our gathering and ~~sells natural gas~~processing south segment’s revenues increased by approximately $6.1 million during the three months ended March 31, ~~2021~~2022 compared to the same period in ~~2020.~~2021. During the three months ended March 31, 2022, we recognized revenues of approximately $3.3 million related to our Oasis Midstream Delaware Basin operations. The remaining variance in our gathering and processing south segment’s revenues was primarily driven by higher commodity prices and a 16% increase in natural gas gathering volumes on our Barnett system. During the three months ended March 31, 2021, ~~Arrow’s natural gas~~ gathering ~~and processing~~ volumes ~~increased by 13% and 17%, respectively. Partially offsetting the increase in Arrow’s revenues and costs of product/services sold~~on our Barnett system were lower ~~revenues from our Jackalope operations, which were driven by a 36% and 31% decrease in natural gas gathering and processing volumes, respectively,~~ due to ~~its major customer connecting fewer wells to our system during~~ the ~~three months ended March 31, 2021 compared to the same period in 2020 as a result of lower commodity prices, coupled with its major customer shutting in production during 2021 as a result of unusual~~extreme winter weather ~~conditions.~~conditions experienced during that period.

Our gathering and processing south segment’s operations and maintenance expenses ~~decreased~~increased by approximately ~~$5.6~~$0.4 million during the three months ended March 31, ~~2021~~2022 compared to the same period in ~~2020,~~2021, primarily due to ~~the sale of~~ our ~~Fayetteville assets in October 2020 and efforts we undertook starting in the second quarter of 2020 to reduce costs in response to lower commodity prices.~~Oasis Midstream Delaware Basin operations.

Our gathering and processing south segment’s EBITDA was also impacted by ~~a decrease~~an increase in equity earnings of approximately ~~$1.6~~$3.4 million from our Crestwood Permian equity investment during the three months ended March 31, ~~2021~~2022 compared to the same period in ~~2020, primarily due to higher electricity costs experienced by the equity investment due to unusual winter weather conditions during~~2021. During the three months ended March 31, 2022, Crestwood Permian experienced an increase in its natural gas gathering and processing revenues primarily due to higher commodity prices and volumes compared to the same period in 2021.

Storage and ~~Transportation~~Logistics

EBITDA for our storage and ~~transportation~~logistics segment ~~decreased~~increased by ~~$108.7~~approximately $54.0 million during the three months ended March 31, ~~2021~~2022 compared to the same period in ~~2020.~~2021. Our storage and ~~transportation~~logistics segment’s EBITDA for the three months ended March 31, 2021 was impacted by a $119.9 million reduction to the equity earnings from our Stagecoach Gas equity method investment as a result of us recording our proportionate share of a goodwill impairment recorded by the equity method investee further discussed below.

Our storage and logistics segment’s revenues increased by approximately $417.5 million during the three months ended March 31, 2022 compared to the same period in 2021, while our costs of product/services sold increased by approximately $462.1 million.

Our NGL marketing and logistics operations experienced an increase in revenues and costs of product/services sold of approximately $289.6 million and $329.3 million, respectively, during the three months ended March 31,2022 compared to the same period in 2021. These increases were primarily driven by higher NGL prices during the three months ended March 31, 2022 as a result of overall increases in commodity prices during 2022 compared to the same period in 2021. In addition, we were able to capture additional opportunities to sell NGL inventory as a result of higher demand for NGLs during the the three months ended March 31, 2022 compared to the same period in 2021. Our NGL marketing and logistics operations’ costs of product/services sold increased more than than its revenues primarily due to the impact of increasing commodity prices on our assets and liabilities from price risk management activities. Included in our costs of product/services sold was a loss of $47.6

Table of Contents

million and $8.1 million during the three months ended March 31, 2022 and 2021 related to our price risk management activities.

Our crude oil and natural gas marketing operations experienced an increase in its revenues and product costs of approximately $128.9 million and $133.2 million, respectively, during the three months ended March 31, 2022 compared to the same period in 2021. These increases were driven primarily by higher crude oil purchases and sales as a result of increases in commodity prices during early 2022 compared to 2021, as well as an increase in marketing activity surrounding our natural gas-related operations driven by higher natural gas prices. During the three months ended March 31, 2021, ~~COLT’s rail loading volumes decreased by 16% compared to the same period in 2020~~our natural gas marketing operations experienced higher revenues due to increased marketing activity as a result of the ~~lower demand for rail loading services which resulted in a decrease in revenues and operations and maintenance expenses of approximately $1.7 million and $0.8 million, respectively.~~ unusually cold weather during early 2021.

Our storage and ~~transportation~~logistics segment’s ~~costs of product/services sold were relatively flat~~EBITDA during the three months ended March 31, ~~2021 compared~~2022 was impacted by a loss on long-lived assets of approximately $4.0 million primarily due to the ~~same period in 2020.~~buyout of leases related to our exiting the crude oil railcar leasing business. For a further discussion of this matter, see Item 1, Financial Statements, Note 10.

Our storage and transportation segment’s EBITDA was also impacted by a net ~~decrease~~increase in earnings from unconsolidated ~~affiliates.~~affiliates of approximately $103.3 million. During the three months ended March 31, 2021, we ~~recorded~~had a loss from unconsolidated affiliates of approximately $112.3 million from our Stagecoach Gas equity investment that was sold in mid-2021. This loss primarily related to a $119.9 million reduction to the equity earnings ~~from our Stagecoach Gas equity method investment~~ as a result of us recording our proportionate share of a goodwill impairment recorded by the equity method investee. For a further discussion of this matter, see Item 1. Financial Statements, Note ~~4 and “Critical Accounting Estimates” above. Aside from this goodwill impairment, our~~5. During the three months ended March 31, 2022, earnings from our ~~Stagecoach Gas~~Tres Holdings equity investment ~~were relatively flat.~~decreased by $8.7 million compared to the same period in 2021. During the three months ended March 31, 2021, ~~earnings from our~~ Tres Holdings ~~equity investment increased by $9.3 million compared to the same period in 2020, primarily due to~~experienced higher revenues from natural gas inventory sales and an increase in demand for its storage and transportation services due to the unusually cold weather experienced during the first quarter of 2021 compared to 2020. During the three months ended March 31, 2021, equity earnings from our PRBIC equity investment increased by $4.6 million compared to the same period in 2020. During 2020, we recorded a $4.5 million reduction in earnings from PRBIC to reflect our proportionate share of a long-lived asset impairment recorded by our PRBIC equity investment.

~~Table of Contents~~

~~Marketing, Supply and Logistics~~

EBITDA for our marketing, supply and logistics segment increased by approximately $29.2 million during the three months ended March 31, 2021 compared to the same period in 2020. Our marketing, supply and logistics segments’ revenues increased by approximately $301.7 million during the three months ended March 31, 2021 compared to the same period in 2020, while our costs of product/services sold increased by approximately $271.0 million.

Our NGL marketing and logistics operations experienced an increase in revenues and costs of product/services sold of approximately $262.9 million and $239.1 million, respectively, during the three months ended March 31,2021 compared to the same period in 2020. These increases were primarily due to an increase in demand for NGLs and related rail, storage and terminalling services given the unusually cold weather experienced during the first quarter of 2021 compared to 2020. Also contributing to the increases in our NGL marketing and logistics operations was the impact of the operating results of the NGL assets acquired from Plains All American Pipeline, L.P. (Plains) in April 2020, which increased our ability to capture additional opportunities in the markets in which these assets operate. Included in our costs of product/services sold was a loss of $8.1 million during the three months ended March 31, 2021 compared to a gain of $22.0 million during the three months ended March 31, 2020 related to our price risk management activities.

Our crude and natural gas marketing operations experienced an increase in its revenues and product costs of approximately $38.8 million and $31.9 million, respectively, during the three months ended March 31, 2021 compared to the same period in 2020, primarily due to an increase marketing activity surrounding our natural gas-related operations driven by unusual winter weather conditions experienced during the first quarter ofearly 2021.

Our marketing, supply and logistics segment’s operations and maintenance expenses increased by approximately $1.6 million during the three months ended March 31, 2021 compared to the same period in 2020, primarily due to the acquisition of several NGL storage and rail-to-truck terminals from Plains in April 2020.

Other EBITDA Results

General and Administrative Expenses. During the three months ended March 31, ~~2021,~~2022, our general and administrative expenses increased by approximately $4$25 million compared to the same period in ~~2020,~~2021, primarily due to transaction costs incurred related to the merger with Oasis Midstream. In addition, we also experienced higher unit-based compensation charges ~~as a result of the increase in the market price for Crestwood Equity’s common units~~ during the three months ended March 31, ~~2021~~2022 compared to the same period in ~~2020. Partially offsetting this increase was lower employee-related expenses due to~~2021, primarily driven by higher average awards outstanding under our ~~cost cutting efforts we undertook starting in the second quarter of 2020.~~long-term incentive plans.

Items not affecting EBITDA include the following:

Depreciation, Amortization and Accretion Expense.During the three months ended March 31, ~~2021,~~2022, our depreciation, amortization and accretion expense increased by approximately $3$16 million compared to the same period in ~~2020,~~2021, primarily due to the acquisition of our NGL assets from Plains in April 2020. In addition, we placed in-service the expansion of our processing capacity at our Bucking Horse processing facility on our Powder River Basin system in early 2020.merger with Oasis Midstream.

Interest and Debt Expense, Net. ~~Interest and debt expense, net increased by approximately $3.4 million during~~During the three months ended March 31, ~~2021 compared~~2022, interest expense and debt expense related to ~~the same period in 2020, primarily~~our senior notes increased due to the ~~issuance of $700 million unsecured senior notes~~April 2029 Senior Notes assumed in ~~January 2021 and lower capitalized interest during these periods due to~~conjunction with the ~~timing of growth capital projects primarily in the Powder River Basin. Partially offsetting these increases was lower average outstanding balances on our Crestwood Midstream credit facility.~~merger with Oasis Midstream.

~~Table of Contents~~

The following table provides a summary of interest and debt expense (in millions):


		Three Months Ended					Three Months Ended
		March 31,					March 31,
			2021		2020				2022		2021
Credit facility	Credit facility		$	3.5	$	6.4		Credit facility	$	3.4	$	3.5
Senior notes	Senior notes		29.8		26.6			Senior notes	32.1		29.8

Other	Other		2.9		1.8			Other	0.9		2.9
Gross interest and debt expense	Gross interest and debt expense		36.2		34.8			Gross interest and debt expense	36.4		36.2
Less: capitalized interest	Less: capitalized interest		0.2		2.2			Less: capitalized interest	0.3		0.2
Interest and debt expense, net	Interest and debt expense, net		$	36.0	$	32.6		Interest and debt expense, net	$	36.1	$	36.0

Loss on Extinguishment of Debt. During the three months ended March 31, 2021, we recognized a loss on extinguishment of debt of approximately $5.5 million in conjunction with the redemption of ~~a portion of~~ our 2023 Senior Notes.

Table of Contents

Liquidity and Sources of Capital

Crestwood Equity is a holding company that derives all of its operating cash flow from its operating subsidiaries. Our principal sources of liquidity include cash generated by operating activities from our subsidiaries, distributions from our joint ventures, borrowings under the Crestwood Midstream credit facility, and sales of equity and debt securities. Our equity investments use cash from their respective operations and contributions from us to fund their operating activities, maintenance and growth capital expenditures, and service their outstanding indebtedness. We believe our liquidity sources and operating cash flows are sufficient to address our future operating, debt service and capital requirements.

We make quarterly cash distributions to our common unitholders within approximately 45 days after the end of each fiscal quarter in an aggregate amount equal to our available cash for such quarter. On April 15, 2021, we declared a quarterly cash distribution of $0.625 per unit to our common unitholders, which will be paid on May 14, 2021 and was consistent with the distribution paid in February 2021. Based on our financial performance during the three months ended March 31, 2021, and our estimates of our financial performance for future quarters, we believe the current level of distributions is appropriate. As described above, the Crestwood Holdings Transactions resulted in Crestwood Equity acquiring and cancelling approximately 11.5 million common units, which decreased our annual distributions (at the current rate of $0.625 per unit) by approximately $29 million per year and eliminates any future consideration by our board of directors regarding the level of distributions to our unitholders of any risks created by Crestwood Holdings’ debt (which was fully repaid as of March 31, 2021). We also pay quarterly cash distributions of approximately $15 million to our preferred unitholders and ~~beginning with the first quarter of 2021, we will pay~~ quarterly cash distributions of approximately $10 million to Crestwood ~~Niobrara’s~~Niobrara LLC’s non-controlling partner.

On April 14, 2022, we declared a quarterly cash distribution of $0.655 per unit to our common unitholders with respect to the first quarter of 2022, which will be paid on May 13, 2022. Our Board of Directors evaluates the level of distributions to our common and preferred unitholders every quarter and considers a wide range of strategic, commercial, operational and financial factors, including current and projected operating cash flows. We believe our operating cash flows will exceed cash distributions to our partners, preferred unitholders and non-controlling partner, and as a result, we will have adequate operating cash flows as a source of liquidity for our growth capital expenditures.

In March 2021, Crestwood Equity’s board of directors authorized a $175 million common unit and preferred unit repurchase program effective through December 31, 2022. Pursuant to the program, we may purchase common and preferred units from time to time in the open market in accordance with applicable securities laws at current market prices. The timing and amount of purchases under the program will be determined based on growth capital opportunities, financial performance and outlook, and other factors, including acquisition opportunities and market conditions. The unit repurchase program does not obligate us to purchase any specific dollar amount or number of units and may be suspended or discontinued at any time.

As of March 31, ~~2021,~~2022, we had ~~$701.2~~$931.2 million of available capacity under the Crestwood Midstream credit facility considering the most restrictive debt covenants in the credit agreement. Upon the closing of the merger with Oasis Midstream on February 1, 2022, the Crestwood Midstream credit facility was increased to $1.5 billion. As of March 31, ~~2021,~~2022, we were in compliance with all of our debt covenants applicable to the credit facility and senior notes. See Part I, Item 1. Financial Statements, Note 8 for a description of the covenants related to our credit facility.

We may from time to time seek to retire or purchase our outstanding debt through cash purchases and/or exchanges for equity securities, in open market purchases, privately negotiated transactions, tender offers or otherwise. Such repurchases or exchanges, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved may be material. During the three months ended March 31, 2021, we repurchased and cancelled approximately $399.2 million of principal outstanding under our 2023 Senior Notes. In April 2021, we redeemed the remaining $288 million of principal outstanding under the 2023 Senior Notes which was funded through borrowings under our Crestwood Midstream credit facility.

~~Table of Contents~~

Cash Flows

The following table provides a summary of Crestwood Equity’s cash flows by category (in millions):


		Three Months Ended					Three Months Ended
		March 31,					March 31,
		2021		2020			2022		2021
Net cash provided by operating activities	Net cash provided by operating activities	$	258.5	$	119.2	Net cash provided by operating activities	$	222.5	$	258.5
Net cash used in investing activities	Net cash used in investing activities	$	(2.0)	$	(83.3)	Net cash used in investing activities	$	(179.7)	$	(2.0)
Net cash used in financing activities	Net cash used in financing activities	$	(254.2)	$	(56.4)	Net cash used in financing activities	$	(44.2)	$	(254.2)

Operating Activities

Our operating cash flows ~~increased~~decreased by approximately ~~$139.3~~$36.0 million during the three months ended March 31, ~~2021~~2022 compared to the same period in ~~2020.~~2021. The ~~increase~~decrease was ~~primarily~~ driven by higher general and administrative expenses of approximately $24.7 million primarily due to transaction costs related to the merger with Oasis Midstream. In addition, we experienced a decrease in net cash inflow from working capital of approximately $119.1 million, driven primarily by the sale of higher levels of NGL inventory at the close of the winter season during the three months ended March 31, 2021 compared to the same period in 2020 primarily due to increased activity from the NGL assets acquired from Plains during the second quarter of 2020, and the timing and amount of commodity purchases given higher volatility during 2021 compared to 2020. Also contributing to the increase in our operating cash flows during the three months ended March 31, 2021 compared to the same period in 2020 was an increase in our operating revenues of approximately $304.8 million, partially offset by higher costs of product/services sold of approximately $279.4$9.9 million primarily ~~from~~related to our ~~marketing, supply~~storage and logistics ~~segment as discussed in~~ operations.

Table of Contents

Investing Activities~~Results of Operations~~ ~~above.~~

~~Investing Activities~~Acquisition. On February 1, 2022, we completed the merger with Oasis Midstream, which was valued at approximately $1.8 billion. We paid cash consideration of $160 million, net of cash acquired of approximately $14.9 million and issued approximately 33.8 million units to Oasis Midstream’s unitholders. See Item 1, Financial Statements, Note 3 for a further discussion of the Merger.

Capital Expenditures. The energy midstream business is capital intensive, requiring significant investments for the acquisition or development of new facilities. We categorize our capital expenditures as either:

•growth capital expenditures, which are made to construct additional assets, expand and upgrade existing systems, or acquire additional assets; or

•maintenance capital expenditures, which are made to replace partially or fully depreciated assets, to maintain the existing operating capacity of our assets, extend their useful lives or comply with regulatory requirements.

Our growth capital expenditures during the year will increase the services we can provide to our customers and the operating efficiencies of our systems. We expect to finance our capital expenditures with a combination of cash generated by our operating subsidiaries, distributions received from our equity investments and borrowings under our credit facility. Additional commitments or expenditures will be made at our discretion, and any discontinuation of these construction projects could result in less future operating cash flows and earnings.

The following table summarizes our capital expenditures for the three months ended March 31, ~~2021~~2022 (in millions):


Growth capital(1)	$	~~5.5~~24.2
Maintenance capital	~~3.0~~1.4
Other ~~(1)~~(2)	0.8
Purchases of property, plant and equipment	$	~~9.3~~26.4

(1)Includes $3.2 million paid related to outstanding litigation on the construction of the Bear Den II cryogenic processing plant.

(2)Represents purchases of property, plant and equipment that are reimbursable by third parties.

Investments in Unconsolidated Affiliates. During the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, we contributed approximately ~~$6.9~~$6.0 million and ~~$6.0~~$6.9 million to our Tres Holdings equity investment for its operating purposes. During the three months ended March 31, 2022 and 2021, we contributed approximately $8.5 million and $3.3 million to our Crestwood Permian equity investment primarily to fund its expansion projects.

~~Table of Contents~~

Financing Activities

The following equity and debt transactions impacted our financing activities during the three months ended March 31, ~~2021:~~2022:

Equity and Debt Transactions

•During the three months ended March 31, 2022, distributions to our partners increased by approximately $14.5 million compared to the same period in 2021, ~~CEQP paid approximately $271.8 million~~primarily due to an increase in common units outstanding as a result of the units issued in conjunction with the ~~Crestwood Holdings Transactions;~~merger with Oasis Midstream;

•During the three months ended March 31, ~~2020,~~2022, our taxes paid ~~from~~for unit-based compensation vesting ~~decreased~~increased by $7approximately $6.8 million compared to the same period in ~~2020,~~2021, primarily due to ~~lower~~higher vesting of unit-based compensation awards;

•During the three months ended March 31, ~~2021,~~2022, we ~~paid approximately $402.5 million~~borrowed amounts under our revolving credit facility to ~~repurchase and cancel approximately $399.2~~fund the $160.0 million of ~~our senior notes due 2023;~~

•~~During~~cash consideration paid to Oasis Petroleum in conjunction with the ~~three months ended March 31, 2021, we received net proceeds of~~merger with Oasis Midstream and to repay approximately ~~$691~~$218.4 million ~~from~~outstanding under the ~~issuance of our senior notes due 2029;~~Oasis Midstream credit facility assumed in conjunction with the merger; and

•During the three months ended March 31, ~~2021,~~2022, our other debt-related transactions resulted in net ~~payments~~repayments of ~~approximately $191.4~~$100.0 million compared to net ~~proceeds~~borrowings of ~~approximately $29.0~~$108.2 million during the same period in ~~2020.~~2021.

Table of Contents

Guarantor Summarized Financial Information

Crestwood Midstream and Crestwood Midstream Finance Corp. are issuers of our debt securities (the Issuers). Crestwood Midstream is a holding company and owns no operating assets and has no significant operations independent of its subsidiaries. Crestwood Midstream Finance Corp. is Crestwood Midstream’s 100% owned subsidiary and has no material assets or operations other than those related to its service as co-issuer of our senior notes. Obligations under Crestwood Midstream’s senior notes and its credit facility are jointly and severally guaranteed by substantially all of its subsidiaries (collectively, the Guarantor Subsidiaries), except for Crestwood Infrastructure Holdings LLC, Crestwood Niobrara LLC, Crestwood Pipeline and Storage Northeast LLC, Powder River Basin Industrial Complex LLC, and Tres Palacios Holdings LLC and their respective subsidiaries (collectively, Non-Guarantor Subsidiaries). The assets and credit of our Non-Guarantor Subsidiaries are not available to satisfy the debts of the Issuers or Guarantor Subsidiaries, and the liabilities of our Non-Guarantor Subsidiaries do not constitute obligations of the Issuers or Guarantor Subsidiaries. For additional information regarding our credit facility and senior notes and related guarantees, see our ~~2020~~2021 Annual Report on Form 10-K and Item 1. Financial Statements, Note 7.8 of this Quarterly Report on Form 10-Q.

The following tables provide summarized financial information for the Issuers and Guarantor Subsidiaries (collectively, the Obligor Group) on a combined basis after elimination of significant intercompany balances and transactions between entities in the Obligor Group. The investment balances in the Non-Guarantor Subsidiaries have been excluded from the supplemental summarized combined financial information. Transactions with other related parties, including the Non-Guarantor Subsidiaries, represent affiliate transactions and are presented separately in the summarized combined financial information below.

Summarized Combined Balance Sheet Information (in millions)


		March 31, 2021		December 31, 2020			March 31, 2022		December 31, 2021
Current assets	Current assets	$	301.7	$	371.3	Current assets	$	570.8	$	574.3
Current assets - affiliates	Current assets - affiliates	$	8.1	$	1.1	Current assets - affiliates	$	58.4	$	8.4
Property, plant and equipment, net	Property, plant and equipment, net	$	2,265.9	$	2,295.2	Property, plant and equipment, net	$	3,385.2	$	2,161.5
Non-current assets	Non-current assets	$	681.6	$	696.2	Non-current assets	$	1,156.3	$	642.3
Current liabilities	Current liabilities	$	406.2	$	345.4	Current liabilities	$	718.3	$	578.9
Current liabilities - affiliates	Current liabilities - affiliates	$	15.4	$	5.0	Current liabilities - affiliates	$	19.1	$	14.7
Long-term debt, less current portion	Long-term debt, less current portion	$	2,588.2	$	2,483.8	Long-term debt, less current portion	$	2,809.9	$	2,052.1
Non-current liabilities	Non-current liabilities	$	151.8	$	157.4	Non-current liabilities	$	159.3	$	138.7

~~Table of Contents~~

Summarized Combined Statement of Operations Information (in millions)


	Three Months Ended March 31, ~~2021~~2022
Revenues	$	~~1,008.8~~1,468.3
Revenues - affiliates	$	~~7.6~~97.4
Cost of products/services sold	$	~~772.7~~1,287.3
Cost of products/services sold - affiliates	$	~~41.1~~68.5
Operations and maintenance expenses(1)	$	~~26.9~~37.3
General and administrative expenses ~~net~~(2)	$	~~17.2~~41.7
Operating income	$	~~108.5~~63.8
Net income	$	~~68.1~~27.7

(1) We have operating agreements with certain of our affiliates pursuant to which we charge them operations and maintenance expenses in accordance with their respective agreements, and these charges are reflected as a reduction of operations and maintenance expenses in our consolidated statements of operations. During the three months ended March 31, ~~2021,~~2022, we charged ~~$8.1~~$7.3 million to our affiliates under these agreements.

(2) Includes ~~$1.3~~$7.5 million of net general and administrative expenses that were charged by our affiliates to us.

Table of Contents

Item 3.Quantitative and Qualitative Disclosures About Market Risk

Our interest rate risk and commodity price, market and credit risks are discussed in our ~~2020~~2021 Annual Report on Form 10-K. There have been no material changes in those exposures from December 31, ~~2020~~2021 to March 31, ~~2021.~~2022.

Item 4.Controls and Procedures

Disclosure Controls and Procedures

As of March 31, ~~2021,~~2022, Crestwood Equity and Crestwood Midstream carried out an evaluation under the supervision and with the participation of their respective management, including the Chief Executive Officer and Chief Financial Officer of their General Partners, as to the effectiveness, design and operation of our disclosure controls and procedures (as defined in the Securities Exchange Act of 1934, as amended (Exchange Act) Rules 13a-15(e) and 15d-15(e)). Crestwood Equity and Crestwood Midstream maintain controls and procedures designed to provide reasonable assurance that information required to be disclosed in their respective reports that are filed or submitted under the Exchange Act of 1934, as amended, are recorded, processed, summarized and reported within the time periods specified by the rules and forms of the SEC, and that information is accumulated and communicated to their respective management, including the Chief Executive Officer and Chief Financial Officer of their General Partners, as appropriate, to allow timely decisions regarding required disclosure. Such management, including the Chief Executive Officer and Chief Financial Officer of their General Partners, do not expect that the disclosure controls and procedures or the internal controls will prevent and/or detect all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Crestwood Equity’s and Crestwood Midstream’s disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives and ~~our~~the Chief Executive Officer and Chief Financial Officer of their General Partners concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of March 31, ~~2021.~~2022.

Changes in Internal Control over Financial Reporting

~~There~~On February 1, 2022, we completed the merger with Oasis Midstream and have extended our controls and procedures surrounding our internal control processes that support our internal control over financial reporting to include Oasis Midstream’s operations. Except for this matter, there were no changes to Crestwood Equity’s or Crestwood Midstream’s internal control over financial reporting during the three months ended March 31, ~~2021~~2022 that have materially affected, or are reasonably likely to materially affect Crestwood Equity’s or Crestwood Midstream’s internal control over financial reporting.

Table of Contents

PART II – OTHER INFORMATION

Item 1.Legal Proceedings

Part I, Item 1. Financial Statements, Note 89 to the Consolidated Financial Statements, of this Form 10-Q is incorporated herein by reference.

Item 1A.Risk Factors

Our business faces many risks. Any of the risks discussed ~~below or~~ elsewhere in this Form 10-Q or our other SEC filings could have a material impact on our business, financial position or results of operations. Additional risks and uncertainties not presently known to us or that we currently believe to be immaterial may also impair our business operations. For a detailed discussion of the risk factors that should be understood by any investor contemplating investment in our common units, see Part I, Item 1A. Risk Factors in our ~~2020~~2021 Annual Report on Form 10-K.

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds

On March 30, 2021, Crestwood Gas Services Holdings LLC, a company controlled by an investment fund sponsored by First Reserve, closed on a private placement of six million common units representing limited partner interests of CEQP for gross proceeds of $132 million. CEQP did not sell any common units and did not receive any proceeds from the private placement.

The securities offered in the private placement were not registered under the Securities Act of 1933, as amended or any state securities laws, and were sold in reliance upon the exemption provided in Section 4(a)(7) of the Securities Act of 1933.

~~The table below presents the CEQP’s common unit repurchase activity for the three months ended March 31, 2021:~~

Total Number of Units Repurchased(1)
Weighted-Average Price Paid Per Unit Units Purchased as Part of Publicly Announced Programs
Maximum Dollar Value That May Yet Be Repurchased Under the Program(2)
January 1, 2021 - January 31, 2021 — $ — — $ —
February 1, 2021 - February 28, 2021 — — — —
March 1, 2021 - March 31, 2021 11,469,911 22.49 — 175,000,000
Totals / Weighted Average 11,469,911 $ 22.49 — $ 175,000,000

~~(1)All units repurchased during the three months ended March 31, 2021, were purchased pursuant to the Crestwood Holdings Transactions described in Part I, Item 1. Financial Statements, Note 1.~~

~~(2)~~On March 25, 2021, CEQP’s board of directors approved a plan to repurchase common and preferred units in one or more open-market transactions or in privately negotiated transactions, with an aggregate purchase price not to exceed $175 million exclusive of any fees, commissions or other expenses. The repurchase program expires December 31, 2022. No units have been purchased under the program during the three months ended March 31, 2021.None.

Item 3.Defaults Upon Senior Securities

None.

Item 4.Mine Safety Disclosures

Not applicable.

Item 5.Other Information

None.

Table of Contents

Item 6.Exhibits


Exhibit Number						Description
2.1						~~Contribution~~Purchase and Sale Agreement, dated as of ~~April 20, 2016, by and between Crestwood Pipeline and Storage Northeast LLC and~~May 31, 2021 among Con Edison Gas Pipeline and Storage Northeast, LLC, ~~(incorporated by reference to Exhibit 2.1 to~~ Crestwood ~~Equity Partners LP's Form 8-K filed on April 22, 2016)~~

~~2.2~~						~~Purchase Agreement, dated~~Pipeline and Storage Northeast LLC, as ~~of April 9, 2019, by and between Crestwood Niobrara~~the Sellers, Stagecoach Gas Services LLC ~~and Williams MLP~~as the Company, Kinder Morgan Operating LLC “A” as Buyer, Con Edison Transmission, Inc. (solely for the limited purposes set forth therein) and Crestwood Midstream Partners LP (solely for the limited purposes set forth therein) (incorporated by reference to Exhibit 2.1 to Crestwood Equity Partners LP’s Form 8-K filed on ~~April 10, 2019)~~

~~2.3~~						Purchase Agreement, dated as of March 25, 2021, by and among Crestwood Holdings LLC, as the seller, and Crestwood Equity Partners LP, as the purchaser, and, for the limited purposes set forth therein, Crestwood Equity GP LLC (incorporated by reference to Exhibit 2.1 to Crestwood Equity Partners LP’s Form 8-K filed on March 26,June 1, 2021)

3.1						Certificate of Limited Partnership of Inergy, L.P. (incorporated by reference to Exhibit 3.1 to Inergy, L.P.'s Registration Statement on Form S-1 filed on March 14, 2001)

3.2						Certificate of Correction of Certificate of Limited Partnership of Inergy, L.P. (incorporated by reference to Exhibit 3.1 to Inergy, L.P.'s Form 10-Q filed on May 12, 2003)

3.3						Amendment to the Certificate of Limited Partnership of Crestwood Equity Partners LP (the “Company”) (f/k/a Inergy, L.P.) dated as of October 7, 2013 (incorporated herein by reference to Exhibit 3.2 to Crestwood Equity Partners LP's Form 8-K filed on October 10, 2013)

3.4						Certificate of Formation of Inergy GP, LLC (incorporated by reference to Exhibit 3.5 to Inergy, L.P.'s Registration Statement on Form S-1/A filed on May 7, 2001)

3.5						Certificate of Amendment of Crestwood Equity GP LLC (the “General Partner”) (f/k/a Inergy GP, LLC) dated as of October 7, 2013 (incorporated by reference to Exhibit 3.3A to Crestwood Equity Partners LP's Form 10-Q filed on November 8, 2013)

3.6						First Amended and Restated Limited Liability Company Agreement of Inergy GP, LLC dated as of September 27, 2012 (incorporated by reference to Exhibit 3.1 to Inergy, L.P.'s Form 8-K filed on September 27, 2012)

3.7						Amendment No. 1 to the First Amended and Restated Limited Liability Company Agreement of the General Partner entered into and effective as of October 7, 2013 (incorporated by reference to Exhibit 3.4A to Crestwood Equity Partners LP's Form 10-Q filed on November 8, 2013)

3.8						Fifth Amended and Restated Agreement of Limited Partnership of Crestwood Equity Partners LP dated as of April 11, 2014 (incorporated herein by reference to Exhibit 3.1 to Crestwood Equity Partners LP's Form 8-K filed on April 11, 2014)

3.9						First Amendment to the Fifth Amended and Restated Agreement of Limited Partnership of Crestwood Equity Partners LP entered into and effective as of September 30, 2015 (incorporated by reference to Exhibit 3.1 to Crestwood Equity Partner LP’s Form 8-K filed on October 1, 2015)

3.10						Second Amendment to the Fifth Amended and Restated Agreement of Limited Partnership of Crestwood Equity Partners LP entered into and effective as of November 8, 2017 (incorporated by reference to Exhibit 3.1 to Crestwood Equity Partners LP’s Form 8-K filed on November 13, 2017)

3.11						Third Amendment to the Fifth Amended and Restated Agreement of Limited Partnership of Crestwood Equity Partners LP entered into and effective as of May 30, 2018 (incorporated by reference to Exhibit 3.1 to Crestwood Equity Partners LP’s Form 8-K filed on June 4, 2018)

3.12						Second Amended and Restated Agreement of Limited Partnership of Crestwood Midstream Partners LP, dated as of September 30, 2015 (incorporated by reference to Exhibit 3.1 to Crestwood Midstream Partners LP's Form 8-K filed on October 1, 2015)

3.13						Certificate of Formation of NRGM GP, LLC (incorporated herein by reference to Exhibit 3.7 to Inergy Midstream, L.P.'s Form S-1/A filed on November 21, 2011)

3.14						Amended and Restated Limited Liability Company Agreement of NRGM GP, LLC, dated December 21, 2011 (incorporated herein by reference to Exhibit 3.2 to Inergy Midstream, L.P.'s Form 8-K filed on December 22, 2011)

~~Table of Contents~~


3.15						Amendment No. 1 to the Amended and Restated Limited Liability Company Agreement of Crestwood Midstream GP LLC (f/k/a NRGM GP, LLC) (incorporated herein by reference to Exhibit 3.39 to Crestwood Midstream Partners LP's Form S-4/A filed on October 28, 2013)

3.16						Fourth Amendment to the Fifth Amended and Restated Agreement of Limited Partnership of Crestwood Equity Partners LP entered into and effective as of June 28, 2019 (incorporated by reference to Exhibit 3.1 to Crestwood Equity Partners LP’s Form 8-K filed on June 28, 2019)

Table of Contents


3.17						Sixth Amended and Restated Agreement of Limited Partnership of Crestwood Equity Partners LP dated August 20, 2021 (incorporated by reference to Exhibit 3.1 to Crestwood Equity Partners LP’s Form 8-K filed on August 20, 2021)

3.18						Second Amended and Restated Limited Liability Company Agreement of Crestwood Equity GP LLC dated August 20, 2021 (incorporated by reference to Exhibit 3.2 to Crestwood Equity Partners LP’s Form 8-K on August 20, 2021)

10.1						~~Third Amendment to Second Amended~~Agreement and ~~Restated Credit Agreement,~~Plan of Merger, dated as of ~~March~~October 25, 2021, by and among ~~Crestwood~~Oasis Midstream Partners LP, ~~as borrower, Wells Fargo Bank, National Association, as Administrative Agent~~OMP GP LLC, Crestwood Equity Partners LP, Project Falcon Merger Sub LLC, Project Phantom Merger Sub LLC, and, solely for the ~~lender parties thereto~~purposes of Section 2.1(a)(i) thereof, Crestwood Equity GP LLC (incorporated herein by reference to Exhibit ~~10.1~~2.1 to Crestwood Equity Partners LP’s Form 8-K filed on ~~March 26,~~October 28, 2021).

10.2						~~Common Unit Purchase~~First Supplemental Indenture, dated as of February 1, 2022, among Crestwood Midstream Partners LP, Crestwood Midstream Finance Corp., the guarantors named therein and Regions Bank. (incorporated herein by reference to Exhibit 4.1 to Crestwood Equity Partners LP’s Form 8-K filed on February 3, 2022).

10.3						Fourth Supplemental Indenture, dated as of February 1, 2022, among Crestwood Midstream Partners LP, Crestwood Midstream Finance Corporation, the guarantors named therein and U.S. Bank National Association. (incorporated herein by reference to Exhibit 4.2 to Crestwood Equity Partners LP’s Form 8-K filed on February 3, 2022).

10.4						First Supplemental Indenture, dated as of February 1, 2022, among Crestwood Midstream Partners LP, Crestwood Midstream Finance Corporation, the guarantors named therein and U.S. Bank National Association. (incorporated herein by reference to Exhibit 4.3 to Crestwood Equity Partners LP’s Form 8-K filed on February 3, 2022).

10.5						First Supplemental Indenture, dated as of February 1, 2022, among Crestwood Midstream Partners LP, Crestwood Midstream Finance Corporation, the guarantors named therein and U.S. Bank National Association. (incorporated herein by reference to Exhibit 4.4 to Crestwood Equity Partners LPs Form 8-K filed on February 3, 2022).

10.6						Indenture, dated as of March 30, 2021, by and among Oasis Midstream Partners LP, as issuer, OMP Finance Corp., as co-issuer, OMP Operating LLC, OMP DevCo Holdings Corp., Beartooth DevCo LLC, Bighorn DevCo LLC, Bobcat DevCo LLC, and Panther DevCo LLC, as guarantors, and Regions Bank, as trustee (incorporated by reference to Exhibit 4.1 to Oasis Midstream Partners LP’s Current Report on Form 8-K filed on April 1, 2021).

10.7						Registration Rights Agreement, dated as of ~~March 25, 2021,~~February 1, 2022, by and among Crestwood Equity Partners LP, Oasis Petroleum Inc., OMS Holdings LLC and Oasis Investment Holdings LLC. (incorporated herein by reference to Exhibit 4.6 to Crestwood Equity Partners LP’s Form 8-K filed on February 3, 2022).

10.8						Director Nomination Agreement, dated as of February 1, 2022, by and among Crestwood Equity Partners LP, Crestwood ~~Gas Services Holdings~~Equity GP LLC and ~~the Purchasers named therein~~Oasis Petroleum Inc. (incorporated herein by reference to Exhibit 10.2 to Crestwood Equity Partners LP’s Form 8-K filed on ~~March 26, 2021)~~February 3, 2022).

~~10.3~~10.9						~~Registration Rights Agreement,~~Master Amendment to Commercial Agreements, dated ~~March 30, 2021,~~as of February 1, 2022, by and ~~between Crestwood Equity~~among Oasis Petroleum North America LLC, Oasis Petroleum Marketing LLC, Oasis Midstream Services LLC, Oasis Midstream Partners LP, OMP Operating LLC and ~~the Purchasers named therein~~Bighorn DevCo LLC. (incorporated herein by reference to Exhibit ~~10.1~~10.3 to Crestwood Equity Partners LP’s Form 8-K filed on ~~March 31, 2021)~~February 3, 2022).

10.10						Form of Director and Officer Indemnification Agreement. (incorporated herein by reference to Exhibit 10.4 to Crestwood Equity Partners LP’s Form 8-K filed on February 3, 2022).

*31.1						Certification of Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended - Crestwood Equity Partners LP

*31.2						Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended - Crestwood Equity Partners LP

*31.3						Certification of Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended - Crestwood Midstream Partners LP

*31.4						Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended - Crestwood Midstream Partners LP

*32.1						Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 - Crestwood Equity Partners LP

Table of Contents


*32.2						Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 - Crestwood Equity Partners LP

*32.3						Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 - Crestwood Midstream Partners LP

*32.4						Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 - Crestwood Midstream Partners LP

**101.INS						Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

**101.SCH						Inline XBRL Taxonomy Extension Schema Document

**101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document

**101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document

**101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document

**101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document

104						Cover Page Interactive Data File (contained in Exhibit 101)


*			Filed herewith
**			Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

4748

Table of Contents

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

CRESTWOOD EQUITY PARTNERS LP

By:

CRESTWOOD EQUITY GP LLC

(its general partner)

Date:

April ~~30, 2021~~28, 2022

By:

/s/ ROBERT T. HALPIN

Robert T. Halpin

~~Executive Vice~~ President and Chief Financial Officer

(Duly Authorized Officer and Principal Financial Officer)

CRESTWOOD MIDSTREAM PARTNERS LP

By:

CRESTWOOD MIDSTREAM GP LLC

(its general partner)

Date:

April ~~30, 2021~~28, 2022

By:

/s/ ROBERT T. HALPIN

Robert T. Halpin

~~Executive Vice~~ President and Chief Financial Officer

(Duly Authorized Officer and Principal Financial Officer)

4849


	Total Number of Units Repurchased(1)	Weighted-Average Price Paid Per Unit		Units Purchased as Part of Publicly Announced Programs	Maximum Dollar Value That May Yet Be Repurchased Under the Program(2)
January 1, 2021 - January 31, 2021	—	$	—	—	$	—
February 1, 2021 - February 28, 2021	—	—		—	—
March 1, 2021 - March 31, 2021	11,469,911	22.49		—	175,000,000
Totals / Weighted Average	11,469,911	$	22.49	—	$	175,000,000