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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, 20222023

OR
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 numberState or other jurisdiction of incorporation or organization(I.R.S. Employer Identification No.)
Crestwood Equity Partners LP001-34664Delaware43-1918951
Crestwood Midstream Partners LP001-35377Delaware20-1647837

811 Main StreetSuite 3400HoustonTexas77002
(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 classTrading SymbolName of each exchange on which registered
Crestwood Equity Partners LPCommon Units representing limited partnership interestsCEQPNew York Stock Exchange
Crestwood Equity Partners LPPreferred Units representing limited partnership interestsCEQP-PNew York Stock Exchange
Crestwood Midstream Partners LPNoneNoneNone

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 LPYesNo 
Crestwood Midstream Partners LPYesNo 

(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 LPYesNo 
Crestwood Midstream Partners LPYesNo 



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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 LPLarge accelerated filerAccelerated filerNon-accelerated filerSmaller reporting companyEmerging growth company
Crestwood Midstream Partners LPLarge accelerated filerAccelerated filerNon-accelerated filerSmaller reporting companyEmerging 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.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 LPYesNo
Crestwood Midstream Partners LPYesNo

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date (April 22, 2022)28, 2023).
Crestwood Equity Partners LP97,966,187105,259,769
Crestwood Midstream Partners LPNone

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.




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CRESTWOOD EQUITY PARTNERS LP
CRESTWOOD MIDSTREAM PARTNERS LP
INDEX TO FORM 10-Q
Page

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PART I - FINANCIAL INFORMATION

Item 1. Financial Statements


CRESTWOOD EQUITY PARTNERS LP
CONSOLIDATED BALANCE SHEETS
(in millions, except unit information)
March 31,
2022
December 31,
2021
March 31,
2023
December 31,
2022
(unaudited)  (unaudited) 
AssetsAssetsAssets
Current assets:Current assets:Current assets:
CashCash$11.9 $13.3 Cash$8.6 $7.5 
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 
Accounts receivable, less allowance for doubtful accounts of $0.4 and $0.5
at March 31, 2023 and December 31, 2022
Accounts receivable, less allowance for doubtful accounts of $0.4 and $0.5
at March 31, 2023 and December 31, 2022
347.7 432.2 
InventoryInventory94.0 156.5 Inventory100.5 122.6 
Assets from price risk management activitiesAssets from price risk management activities25.5 42.1 Assets from price risk management activities31.4 72.8 
Prepaid expenses and other current assetsPrepaid expenses and other current assets42.4 14.8 Prepaid expenses and other current assets15.5 18.7 
Total current assetsTotal current assets659.4 604.7 Total current assets503.7 653.8 
Property, plant and equipmentProperty, plant and equipment5,047.0 3,771.5 Property, plant and equipment5,402.6 5,353.2 
Less: accumulated depreciationLess: accumulated depreciation1,046.6 992.1 Less: accumulated depreciation887.3 822.8 
Property, plant and equipment, netProperty, plant and equipment, net4,000.4 2,779.4 Property, plant and equipment, net4,515.3 4,530.4 
Intangible assetsIntangible assets1,623.1 1,126.1 Intangible assets1,306.3 1,306.3 
Less: accumulated amortizationLess: accumulated amortization412.7 393.2 Less: accumulated amortization317.7 300.7 
Intangible assets, netIntangible assets, net1,210.4 732.9 Intangible assets, net988.6 1,005.6 
GoodwillGoodwill177.9 138.6 Goodwill223.0 223.0 
Operating lease right-of-use assets, netOperating lease right-of-use assets, net20.3 27.4 Operating lease right-of-use assets, net24.4 24.4 
Investments in unconsolidated affiliatesInvestments in unconsolidated affiliates164.8 155.8 Investments in unconsolidated affiliates124.3 119.5 
Other non-current assetsOther non-current assets6.9 6.9 Other non-current assets10.0 10.3 
Total assetsTotal assets$6,240.1 $4,445.7 Total assets$6,389.3 $6,567.0 
Liabilities and capitalLiabilities and capitalLiabilities and capital
Current liabilities:Current liabilities:Current liabilities:
Accounts payableAccounts payable$446.3 $336.5 Accounts payable$277.7 $305.5 
Accrued expenses and other liabilitiesAccrued expenses and other liabilities190.3 147.1 Accrued expenses and other liabilities167.9 180.8 
Liabilities from price risk management activitiesLiabilities from price risk management activities107.6 114.6 Liabilities from price risk management activities13.2 23.9 
Current portion of long-term debt0.2 0.2 
Total current liabilitiesTotal current liabilities744.4 598.4 Total current liabilities458.8 510.2 
Long-term debt, less current portionLong-term debt, less current portion2,809.9 2,052.1 Long-term debt, less current portion3,314.5 3,378.3 
Other long-term liabilitiesOther long-term liabilities283.1 258.7 Other long-term liabilities325.0 333.4 
Deferred income taxesDeferred income taxes2.2 2.3 Deferred income taxes3.4 3.5 
Total liabilitiesTotal liabilities3,839.6 2,911.5 Total liabilities4,101.7 4,225.4 
Commitments and contingencies (Note 9)
Commitments and contingencies (Note 9)
00
Commitments and contingencies (Note 9)
Interest of non-controlling partner in subsidiaryInterest of non-controlling partner in subsidiary434.5 434.6 Interest of non-controlling partner in subsidiary434.3 434.4 
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)612.0 612.0 
Partners’ capital:Partners’ capital:
Crestwood Equity Partners LP partners’ capital (105,286,780 and 104,646,374 common units issued and outstanding at March 31, 2023 and December 31, 2022)Crestwood Equity Partners LP partners’ capital (105,286,780 and 104,646,374 common units issued and outstanding at March 31, 2023 and December 31, 2022)1,241.3 1,295.2 
Preferred units (71,257,445 units issued and outstanding at both March 31, 2023 and December 31, 2022)Preferred units (71,257,445 units issued and outstanding at both March 31, 2023 and December 31, 2022)612.0 612.0 
Total partners’ capitalTotal partners’ capital1,966.0 1,099.6 Total partners’ capital1,853.3 1,907.2 
Total liabilities and capitalTotal liabilities and capital$6,240.1 $4,445.7 Total liabilities and capital$6,389.3 $6,567.0 
See accompanying notes.
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CRESTWOOD EQUITY PARTNERS LP
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per unit data)
(unaudited)


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


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

Three Months EndedThree Months Ended
March 31, March 31,
20222021 20232022
Revenues:Revenues:Revenues:
Product revenuesProduct revenues$1,390.5 $930.6 Product revenues$1,122.3 $1,390.5 
Product revenues - related party (Note 15)
Product revenues - related party (Note 15)
60.6 4.9 
Product revenues - related party (Note 15)
— 60.6 
Service revenuesService revenues95.6 97.2 Service revenues140.8 95.6 
Service revenues - related party (Note 15)
Service revenues - related party (Note 15)
37.1 — 
Service revenues - related party (Note 15)
— 37.1 
Total revenuesTotal revenues1,583.8 1,032.7 Total revenues1,263.1 1,583.8 
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 costsProduct costs1,290.8 767.6 Product costs991.0 1,290.8 
Product costs - related party (Note 15)
Product costs - related party (Note 15)
68.5 41.1 
Product costs - related party (Note 15)
0.4 68.5 
Service costsService costs5.1 5.1 Service costs6.0 5.1 
Total costs of products/services soldTotal costs of products/services sold1,364.4 813.8 Total costs of products/services sold997.4 1,364.4 
Operating expenses and other:Operating expenses and other:Operating expenses and other:
Operations and maintenanceOperations and maintenance42.4 32.8 Operations and maintenance56.6 42.4 
General and administrativeGeneral and administrative43.4 18.7 General and administrative31.6 43.4 
Depreciation, amortization and accretionDepreciation, amortization and accretion74.8 59.2 Depreciation, amortization and accretion81.4 74.8 
Loss on long-lived assets, netLoss on long-lived assets, net3.8 1.4 Loss on long-lived assets, net0.4 3.8 
164.4 112.1 
170.0 164.4 
Operating incomeOperating income55.0 106.8 Operating income95.7 55.0 
Earnings (loss) from unconsolidated affiliates, net3.0 (103.7)
Earnings from unconsolidated affiliates, netEarnings from unconsolidated affiliates, net1.7 3.0 
Interest and debt expense, netInterest and debt expense, net(36.1)(36.0)Interest and debt expense, net(55.6)(36.1)
Loss on modification/extinguishment of debt— (5.5)
Other income, netOther income, net0.3 — Other income, net0.1 0.3 
Income (loss) before income taxes22.2 (38.4)
Benefit for income taxes— 0.1 
Net income (loss)22.2 (38.3)
Income before income taxesIncome before income taxes41.9 22.2 
Provision for income taxesProvision for income taxes(0.3)— 
Net incomeNet income41.6 22.2 
Net income attributable to non-controlling partnerNet income attributable to non-controlling partner10.2 10.1 Net income attributable to non-controlling partner10.2 10.2 
Net income (loss) attributable to Crestwood Equity Partners LP12.0 (48.4)
Net income attributable to Crestwood Equity Partners LPNet income attributable to Crestwood Equity Partners LP31.4 12.0 
Net income attributable to preferred unitsNet income attributable to preferred units15.0 15.0 Net income attributable to preferred units15.0 15.0 
Net loss attributable to partners$(3.0)$(63.4)
Net income (loss) attributable to partnersNet income (loss) attributable to partners$16.4 $(3.0)
Net loss per limited partner unit: (Note 12)
Basic and Diluted$(0.04)$(0.86)
Net income (loss) per limited partner unit: (Note 12)
Net income (loss) per limited partner unit: (Note 12)
BasicBasic$0.16 $(0.04)
DilutedDiluted$0.15 $(0.04)
Weighted-average limited partners’ units outstanding:Weighted-average limited partners’ units outstanding:Weighted-average limited partners’ units outstanding:
Basic and Diluted86.0 74.1 
BasicBasic105.2 86.0 
DilutiveDilutive4.6 — 
DilutedDiluted109.8 86.0 

See accompanying notes.

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CRESTWOOD EQUITY PARTNERS LP
CONSOLIDATED STATEMENTS OF PARTNERS’ CAPITAL
(in millions)
(unaudited)

PreferredCommonPreferredCommon
UnitsCapital UnitsCapitalTotal Partners’
Capital
UnitsCapital UnitsCapitalTotal Partners’
Capital
Balance at December 31, 202171.3 $612.0 63.0 $487.6 $1,099.6 
Balance at December 31, 2022Balance at December 31, 202271.3 $612.0 104.6 $1,295.2 $1,907.2 
Distributions to partnersDistributions to partners— (15.0)— (60.9)(75.9)Distributions to partners— (15.0)— (68.9)(83.9)
Issuance of common units (Note 3)
33.8 930.0 930.0 
Unit-based compensation chargesUnit-based compensation charges— — 1.6 13.0 13.0 Unit-based compensation charges— — 1.1 11.8 11.8 
Taxes paid for unit-based compensation vestingTaxes paid for unit-based compensation vesting— — (0.5)(14.9)(14.9)Taxes paid for unit-based compensation vesting— — (0.5)(14.8)(14.8)
OtherOther— — 0.1 2.2 2.2 Other— — 0.1 1.6 1.6 
Net income (loss)— 15.0 — (3.0)12.0 
Balance at March 31, 202271.3 $612.0 98.0 $1,354.0 $1,966.0 
Net incomeNet income— 15.0 — 16.4 31.4 
Balance at March 31, 2023Balance at March 31, 202371.3 $612.0 105.3 $1,241.3 $1,853.3 

PreferredPartners
UnitsCapitalCommon UnitsSubordinated UnitsCapitalTotal Partners’
Capital
Balance at December 31, 202071.3 $612.0 73.6 0.4 $1,043.4 $1,655.4 
Crestwood Holdings Transactions (Note 11)
— — — — (273.2)(273.2)
Retirement of units (Note 11)
— — (11.5)(0.4)— — 
Distributions to partners— (15.0)— — (46.4)(61.4)
Unit-based compensation charges— — 1.1 — 3.7 3.7 
Taxes paid for unit-based compensation vesting— — (0.4)— (8.1)(8.1)
Other— — — — (0.4)(0.4)
Net income (loss)— 15.0 — — (63.4)(48.4)
Balance at March 31, 202171.3 $612.0 62.8 — $655.6 $1,267.6 

PreferredCommon
UnitsCapitalUnitsCapitalTotal Partners’
Capital
Balance at December 31, 202171.3 $612.0 63.0 $487.6 $1,099.6 
Distributions to partners— (15.0)— (60.9)(75.9)
Issuance of common units (Note 3)
— — 33.8 930.0 930.0 
Unit-based compensation charges— — 1.6 13.0 13.0 
Taxes paid for unit-based compensation vesting— — (0.5)(14.9)(14.9)
Other— — 0.1 2.2 2.2 
Net income (loss)— 15.0 — (3.0)12.0 
Balance at March 31, 202271.3 $612.0 98.0 $1,354.0 $1,966.0 

See accompanying notes.
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CRESTWOOD EQUITY PARTNERS LP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)

Three Months Ended
 March 31,
 20222021
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 accretion74.8 59.2 
Amortization of debt-related deferred costs and fair value adjustment0.8 1.7 
Unit-based compensation charges8.6 2.3 
Loss on long-lived assets, net3.8 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 liabilities112.9 122.8 
Net cash provided by operating activities222.5 258.5 
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 affiliates5.9 17.3 
Net proceeds from sale of assets0.4 0.2 
Net cash used in investing activities(179.7)(2.0)
Financing activities
Proceeds from the issuance of long-term debt919.1 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 period13.3 14.0 
Cash at end of period$11.9 $16.3 


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CRESTWOOD EQUITY PARTNERS LP
CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
(in millions)
(unaudited)

Three Months Ended
March 31,
20222021
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 equipment1,245.8 — 
Intangible assets497.0 — 
Goodwill39.3 — 
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 $— 
CRESTWOOD EQUITY PARTNERS LP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)

Three Months Ended
 March 31,
 20232022
Operating activities
Net income$41.6 $22.2 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion81.4 74.8 
Amortization of debt-related deferred costs and fair value adjustment0.8 0.8 
Unit-based compensation charges10.0 8.6 
Loss on long-lived assets, net0.4 3.8 
Earnings from unconsolidated affiliates, net, adjusted for cash distributions received(1.4)(0.4)
Deferred income taxes— (0.1)
Other— (0.1)
Changes in operating assets and liabilities113.1 112.9 
Net cash provided by operating activities245.9 222.5 
Investing activities
Acquisition, net of cash acquired (Note 3)
— (145.1)
Purchases of property, plant and equipment(67.3)(26.4)
Investments in unconsolidated affiliates(5.1)(14.5)
Capital distributions from unconsolidated affiliates1.7 5.9 
Net proceeds from sale of assets0.3 0.4 
Net cash used in investing activities(70.4)(179.7)
Financing activities
Proceeds from the issuance of long-term debt1,153.7 919.1 
Payments on long-term debt(1,209.2)(859.1)
Payments on finance leases(0.8)(0.8)
Payments for deferred financing costs(9.1)(1.7)
Distributions to partners(68.9)(60.9)
Distributions to non-controlling partner(10.3)(10.3)
Distributions to preferred unitholders(15.0)(15.0)
Taxes paid for unit-based compensation vesting(14.8)(14.9)
Other— (0.6)
Net cash used in financing activities(174.4)(44.2)
Net change in cash1.1 (1.4)
Cash at beginning of period7.5 13.3 
Cash at end of period$8.6 $11.9 
Supplemental schedule of noncash investing activities
Net change to property, plant and equipment through accounts payable and accrued expenses$(16.8)$3.8 

See accompanying notes.

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CRESTWOOD MIDSTREAM PARTNERS LP
CONSOLIDATED BALANCE SHEETS
(in millions)
March 31,
2022
December 31,
2021
March 31,
2023
December 31,
2022
(unaudited)(unaudited)
AssetsAssetsAssets
Current assets:Current assets:Current assets:
CashCash$11.3 $12.9 Cash$8.3 $7.1 
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 
Accounts receivable, less allowance for doubtful accounts of $0.4 and $0.5
at March 31, 2023 and December 31, 2022
Accounts receivable, less allowance for doubtful accounts of $0.4 and $0.5
at March 31, 2023 and December 31, 2022
347.6 432.2 
InventoryInventory94.0 156.5 Inventory100.5 122.6 
Assets from price risk management activitiesAssets from price risk management activities25.5 42.1 Assets from price risk management activities31.4 72.8 
Prepaid expenses and other current assetsPrepaid expenses and other current assets42.4 14.4 Prepaid expenses and other current assets15.5 18.7 
Total current assetsTotal current assets658.8 603.9 Total current assets503.3 653.4 
Property, plant and equipmentProperty, plant and equipment5,376.2 4,100.8 Property, plant and equipment5,399.3 5,350.0 
Less: accumulated depreciationLess: accumulated depreciation1,250.9 1,193.0 Less: accumulated depreciation887.0 822.6 
Property, plant and equipment, netProperty, plant and equipment, net4,125.3 2,907.8 Property, plant and equipment, net4,512.3 4,527.4 
Intangible assetsIntangible assets1,623.1 1,126.1 Intangible assets1,306.3 1,306.3 
Less: accumulated amortizationLess: accumulated amortization412.7 393.2 Less: accumulated amortization317.7 300.7 
Intangible assets, netIntangible assets, net1,210.4 732.9 Intangible assets, net988.6 1,005.6 
GoodwillGoodwill177.9 138.6 Goodwill223.0 223.0 
Operating lease right-of-use assets, netOperating lease right-of-use assets, net20.3 27.4 Operating lease right-of-use assets, net24.4 24.4 
Investments in unconsolidated affiliatesInvestments in unconsolidated affiliates164.8 155.8 Investments in unconsolidated affiliates124.3 119.5 
Other non-current assetsOther non-current assets4.6 4.8 Other non-current assets7.9 8.1 
Total assetsTotal assets$6,362.1 $4,571.2 Total assets$6,383.8 $6,561.4 
Liabilities and capitalLiabilities and capitalLiabilities and capital
Current liabilities:Current liabilities:Current liabilities:
Accounts payableAccounts payable$446.2 $336.4 Accounts payable$277.7 $305.4 
Accrued expenses and other liabilitiesAccrued expenses and other liabilities188.9 146.1 Accrued expenses and other liabilities167.0 179.5 
Liabilities from price risk management activitiesLiabilities from price risk management activities107.6 114.6 Liabilities from price risk management activities13.2 23.9 
Current portion of long-term debt0.2 0.2 
Total current liabilitiesTotal current liabilities742.9 597.3 Total current liabilities457.9 508.8 
Long-term debt, less current portionLong-term debt, less current portion2,809.9 2,052.1 Long-term debt, less current portion3,314.5 3,378.3 
Other long-term liabilitiesOther long-term liabilities281.6 254.1 Other long-term liabilities323.5 330.3 
Deferred income taxesDeferred income taxes0.8 0.8 Deferred income taxes2.4 2.3 
Total liabilitiesTotal liabilities3,835.2 2,904.3 Total liabilities4,098.3 4,219.7 
Commitments and contingencies (Note 9)
Commitments and contingencies (Note 9)
00
Commitments and contingencies (Note 9)
Interest of non-controlling partner in subsidiaryInterest of non-controlling partner in subsidiary434.5 434.6 Interest of non-controlling partner in subsidiary434.3 434.4 
Partners’ capitalPartners’ capital2,092.4 1,232.3 Partners’ capital1,851.2 1,907.3 
Total liabilities and capitalTotal liabilities and capital$6,362.1 $4,571.2 Total liabilities and capital$6,383.8 $6,561.4 

See accompanying notes.
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CRESTWOOD MIDSTREAM PARTNERS LP
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions)
(unaudited)
Three Months Ended Three Months Ended
March 31,March 31,
20222021 20232022
Revenues:Revenues:Revenues:
Product revenuesProduct revenues$1,390.5 $930.6 Product revenues$1,122.3 $1,390.5 
Product revenues - related party (Note 15)
Product revenues - related party (Note 15)
60.6 4.9 
Product revenues - related party (Note 15)
— 60.6 
Service revenuesService revenues95.6 97.2 Service revenues140.8 95.6 
Service revenues - related party (Note 15)
Service revenues - related party (Note 15)
37.1 — 
Service revenues - related party (Note 15)
— 37.1 
Total revenuesTotal revenues1,583.8 1,032.7 Total revenues1,263.1 1,583.8 
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 costsProduct costs1,290.8 767.6 Product costs991.0 1,290.8 
Product costs - related party (Note 15)
Product costs - related party (Note 15)
68.5 41.1 
Product costs - related party (Note 15)
0.4 68.5 
Service costsService costs5.1 5.1 Service costs6.0 5.1 
Total costs of product/services soldTotal costs of product/services sold1,364.4 813.8 Total costs of product/services sold997.4 1,364.4 
Operating expenses and other:Operating expenses and other:Operating expenses and other:
Operations and maintenanceOperations and maintenance42.4 32.8 Operations and maintenance56.6 42.4 
General and administrativeGeneral and administrative41.7 17.2 General and administrative30.2 41.7 
Depreciation, amortization and accretionDepreciation, amortization and accretion78.2 62.8 Depreciation, amortization and accretion81.3 78.2 
Loss on long-lived assets, netLoss on long-lived assets, net3.8 1.4 Loss on long-lived assets, net0.4 3.8 
166.1 114.2 
168.5 166.1 
Operating incomeOperating income53.3 104.7 Operating income97.2 53.3 
Earnings (loss) from unconsolidated affiliates, net3.0 (103.7)
Earnings from unconsolidated affiliates, netEarnings from unconsolidated affiliates, net1.7 3.0 
Interest and debt expense, netInterest and debt expense, net(36.1)(36.0)Interest and debt expense, net(55.6)(36.1)
Loss on modification/extinguishment of debt— (5.5)
Income (loss) before income taxes20.2 (40.5)
Benefit for income taxes— 0.1 
Net income (loss)20.2 (40.4)
Income before income taxesIncome before income taxes43.3 20.2 
Provision for income taxesProvision for income taxes(0.3)— 
Net incomeNet income43.0 20.2 
Net income attributable to non-controlling partnerNet income attributable to non-controlling partner10.2 10.1 Net income attributable to non-controlling partner10.2 10.2 
Net income (loss) attributable to Crestwood Midstream Partners LP$10.0 $(50.5)
Net income attributable to Crestwood Midstream Partners LPNet income attributable to Crestwood Midstream Partners LP$32.8 $10.0 

See accompanying notes.

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CRESTWOOD MIDSTREAM PARTNERS LP
CONSOLIDATED STATEMENTS OF PARTNERS’ CAPITAL
(in millions)
(unaudited)
 Total Partners’ Capital
Balance at December 31, 2022$1,907.3 
Distributions to partners(85.9)
Unit-based compensation charges11.8 
Taxes paid for unit-based compensation vesting(14.8)
Net income32.8 
Balance at March 31, 2023$1,851.2 

Total Partners’ Capital
Balance at December 31, 2021$1,232.3 
Non-cash contribution from partner (Note 11)
1,075.1 
Cash contribution from partner (Note 11)
14.9 
Distributions to partners(238.1)
Unit-based compensation charges13.0 
Taxes paid for unit-based compensation vesting(14.9)
Other0.1 
Net income10.0 
Balance at March 31, 2022$2,092.4 

Total Partners’
Capital
Balance at December 31, 2020$1,805.1 
Distributions to partners(334.0)
Unit-based compensation charges2.3 
Taxes paid for unit-based compensation vesting(8.1)
Other(0.1)
Net loss(50.5)
Balance at March 31, 2021$1,414.7 

See accompanying notes.
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CRESTWOOD MIDSTREAM PARTNERS LP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)
Three Months Ended
 March 31,
 20222021
Operating activities
Net income (loss)$20.2 $(40.4)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, amortization and accretion78.2 62.8 
Amortization of debt-related deferred costs and fair value adjustment0.8 1.7 
Unit-based compensation charges8.6 2.3 
Loss on long-lived assets, net3.8 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 
Other(0.1)0.1 
Changes in operating assets and liabilities112.8 122.0 
Net cash provided by operating activities223.9 259.2 
Investing activities
Purchases of property, plant and equipment(26.4)(9.3)
Investments in unconsolidated affiliates(14.5)(10.2)
Capital distributions from unconsolidated affiliates5.9 17.3 
Net proceeds from sale of assets0.4 0.2 
Net cash used in investing activities(34.6)(2.0)
Financing activities
Proceeds from the issuance of long-term debt919.1 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)
Contribution from partner14.9 — 
Distributions to partners(238.1)(334.0)
Distributions to non-controlling partner(10.3)(9.3)
Taxes paid for unit-based compensation vesting(14.9)(8.1)
Net cash used in financing activities(190.9)(255.0)
Net change in cash(1.6)2.2 
Cash at beginning of period12.9 13.7 
Cash at end of period$11.3 $15.9 
Supplemental schedule of non-cash investing activities
Net change to property, plant and equipment through accounts payable and accrued expenses$3.8 $(2.2)


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CRESTWOOD MIDSTREAM PARTNERS LP
CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
(in millions)
(unaudited)
Three Months Ended
March 31,
20222021
Supplemental schedule of non-cash financing activities
Non-cash contribution:
Current assets$63.4 $— 
Property, plant and equipment1,245.8 — 
Intangible assets497.0 — 
Goodwill39.3 — 
Current liabilities(45.9)— 
Debt(698.7)— 
Other liabilities(25.8)— 
Total non-cash contribution$1,075.1 $— 
Three Months Ended
 March 31,
 20232022
Operating activities
Net income$43.0 $20.2 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion81.3 78.2 
Amortization of debt-related deferred costs and fair value adjustment0.8 0.8 
Unit-based compensation charges10.0 8.6 
Loss on long-lived assets, net0.4 3.8 
Earnings from unconsolidated affiliates, net, adjusted for cash distributions received(1.4)(0.4)
Deferred income taxes0.1 — 
Other— (0.1)
Changes in operating assets and liabilities113.8 112.8 
Net cash provided by operating activities248.0 223.9 
Investing activities
Purchases of property, plant and equipment(67.3)(26.4)
Investments in unconsolidated affiliates(5.1)(14.5)
Capital distributions from unconsolidated affiliates1.7 5.9 
Net proceeds from sale of assets0.3 0.4 
Net cash used in investing activities(70.4)(34.6)
Financing activities
Proceeds from the issuance of long-term debt1,153.7 919.1 
Payments on long-term debt(1,209.2)(859.1)
Payments on finance leases(0.8)(0.8)
Payments for deferred financing costs(9.1)(1.7)
Contributions from partner— 14.9 
Distributions to partners(85.9)(238.1)
Distributions to non-controlling partner(10.3)(10.3)
Taxes paid for unit-based compensation vesting(14.8)(14.9)
Net cash used in financing activities(176.4)(190.9)
Net change in cash1.2 (1.6)
Cash at beginning of period7.1 12.9 
Cash at end of period$8.3 $11.3 
Supplemental schedule of non-cash investing activities
Net change to property, plant and equipment through accounts payable and accrued expenses$(16.8)$3.8 

See accompanying notes.

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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 20212022 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February 25, 2022.27, 2023. The financial information as of March 31, 2022,2023 and for the three months ended March 31, 20222023 and 2021,2022, is unaudited. The consolidated balance sheets as of December 31, 20212022 were derived from the audited balance sheets filed in our 20212022 Annual Report on Form 10-K.

ReferencesUnless otherwise indicated, references in this report to “we,” “us,” “our,” “ours,” “our company,” the “partnership,“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.subsidiaries, as the context requires.

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), our wholly-owned subsidiary, owns our non-economic general partnership interest.

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.

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.North America. We own and operate a diversified portfolio of 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.

See Note 13 for information regarding our operating and reporting 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)in the United States (U.S. 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 U.S. GAAP have been omitted pursuant to the rules and regulations of the SEC.

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Significant Accounting Policies

There were no material changes in our significant accounting policies from those described in our 20212022 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 Partners LP (Oasis Midstream), in an equity and cash transaction which was valued at approximately $1.8 billion.billion (the Oasis Merger). Pursuant to the merger agreement, Oasis Petroleum Inc. (Oasis Petroleum), now known as Chord Energy Corporation (Chord), 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 PetroleumChord 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.

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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 assets63.4 
Property, plant and equipment1,245.8 
Intangible assets497.0 
   Total assets acquired1,821.1 
Current liabilities45.9 
Long-term debt(1)
698.7 
Other long-term liabilities(2)
25.8 
   Total liabilities assumed770.4 
Net assets acquired excluding goodwill1,050.7 
Goodwill39.3 
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,
20222021
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)

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Crestwood Midstream

Three Months Ended March 31,
20222021
Revenues$1,618.4 $1,133.1 
Net income (loss)$26.4 $(17.3)


Note 4 – Certain Balance Sheet Information

Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities consisted of the following (in millions):
March 31,December 31,
20222021
CMLP
Accrued expenses$50.0 $66.3 
Accrued property taxes5.2 4.4 
Income tax payable0.4 0.4 
Interest payable54.7 30.6 
Accrued additions to property, plant and equipment25.6 17.4 
Operating leases10.4 13.2 
Finance leases30.5 1.7 
Contract liabilities11.0 10.7 
Asset retirement obligations1.1 1.4 
Total CMLP accrued expenses and other liabilities$188.9 $146.1 
CEQP
Accrued expenses1.2 0.9 
Income tax payable0.2 0.1 
Total CEQP accrued expenses and other liabilities$190.3 $147.1 
March 31,December 31,
20232022
CMLP
Accrued expenses$49.2 $66.5 
Accrued property taxes6.0 8.4 
Income tax payable1.0 0.9 
Interest payable65.6 43.2 
Accrued additions to property, plant and equipment18.9 35.6 
Operating leases10.5 10.9 
Finance leases1.7 1.9 
Contract liabilities13.8 11.7 
Asset retirement obligations0.3 0.4 
Total CMLP accrued expenses and other liabilities$167.0 $179.5 
CEQP
Accrued expenses0.9 1.2 
Income tax payable— 0.1 
Total CEQP accrued expenses and other liabilities$167.9 $180.8 
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Other Long-Term Liabilities

Other long-term liabilities consisted of the following (in millions):
March 31,December 31,March 31,December 31,
2022202120232022
CMLPCMLPCMLP
Contract liabilitiesContract liabilities$202.1 $187.1 Contract liabilities$205.9 $212.3 
Intangible liabilities, netIntangible liabilities, net48.5 50.0 
Asset retirement obligationsAsset retirement obligations37.3 36.4 
Operating leasesOperating leases14.5 19.4 Operating leases17.5 17.4 
Asset retirement obligations51.7 34.8 
OtherOther13.3 12.8 Other14.3 14.2 
Total CMLP other long-term liabilitiesTotal CMLP other long-term liabilities$281.6 $254.1 Total CMLP other long-term liabilities$323.5 $330.3 
CEQPCEQPCEQP
OtherOther1.5 4.6 Other1.5 3.1 
Total CEQP other long-term liabilitiesTotal CEQP other long-term liabilities$283.1 $258.7 Total CEQP other long-term liabilities$325.0 $333.4 



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Note 5 - Investments in Unconsolidated Affiliates

Net Investments and Earnings (Loss) of Unconsolidated Affiliates

Our net investments in and earnings (loss) from our unconsolidated affiliates are as follows (in millions):
InvestmentEarnings (Loss) from
Unconsolidated Affiliates
InvestmentEarnings (Loss) from
Unconsolidated Affiliates
Three Months EndedThree Months Ended
March 31,December 31,March 31,March 31,December 31,March 31,
20222021202220212023202220232022
Crestwood Permian Basin Holdings LLC(1)
$118.7 $116.1 $2.6 $(0.8)
Crestwood Permian Basin LLC(1)
Crestwood Permian Basin LLC(1)
$74.8 $76.5 $0.3 $— 
Tres Palacios Holdings LLC(2)
Tres Palacios Holdings LLC(2)
42.8 36.2 0.6 9.3 
Tres Palacios Holdings LLC(2)
46.5 39.8 1.6 0.6 
Powder River Basin Industrial Complex, LLC(3)
Powder River Basin Industrial Complex, LLC(3)
3.3 3.5 (0.2)0.1 
Powder River Basin Industrial Complex, LLC(3)
3.0 3.2 (0.2)(0.2)
Stagecoach Gas Services LLC(4)
— — — (112.3)
Crestwood Permian Basin Holdings LLC(4)
Crestwood Permian Basin Holdings LLC(4)
— — — 2.6 
TotalTotal$164.8 $155.8 $3.0 $(103.7)Total$124.3 $119.5 $1.7 $3.0 

(1)In July 2022, we acquired the remaining 50% equity interest in Crestwood Permian Basin Holdings LLC (Crestwood Permian), whose operations included its 50% equity interest in Crestwood Permian Basin LLC (Crestwood Permian Basin). As of March 31, 2022,2023, our equity in the underlying net assets of Crestwood Permian Basin Holdings LLC (Crestwood Permian) exceededwas less than the carrying value of our investment balance by $4.6approximately $2.3 million. During the three months ended March 31, 2023, we recorded amortization of less than $0.1 million andrelated to this excess amountbasis difference, which is not subject to amortization.reflected as a decrease in our earnings from unconsolidated affiliates in our consolidated statement of operations. Our Crestwood Permian Basin investment is included in our gathering and processing south segment.
(2)As of March 31, 2022,2023, our equity in the underlying net assets of Tres Palacios Holdings LLC (Tres Holdings) exceeded the carrying value of our investment balance by approximately $21.2$19.9 million. During both the three months ended March 31, 20222023 and 2021,2022, 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 logistics segment.
(3)As of March 31, 2022,2023, 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,As discussed above, in July 2022, we sold ouracquired the remaining 50% equity interest in our Stagecoach Gas Services LLC (Stagecoach Gas) equity investment toCrestwood Permian and as a subsidiary of Kinder Morgan, Inc. During the first quarter of 2021,result, we recorded our share of a goodwill impairment recorded by Stagecoach Gas based on market-based information received by Stagecoach Gas from Con Edison Gas Pipelinecontrol and Storage Northeast, LLC’s (the previous ownerown 100% of the other 50% equity interestinterests in Stagecoach Gas) strategic evaluation of its investment during the three months ended March 31, 2021. This resulted in a $119.9 million reduction in our earnings from unconsolidated affiliates during the three months ended March 31, 2021.Crestwood Permian. Our Stagecoach GasCrestwood Permian investment was previously included in our storagegathering and logisticsprocessing south segment.

Tres Holdings Divestiture

On February 20, 2023, we and Brookfield Infrastructure Group (Brookfield) entered into an agreement with a subsidiary of Enbridge, Inc. to sell each of our respective interests in Tres Holdings for total consideration of approximately $335.0 million, plus working capital adjustments. The sale was completed on April 3, 2023 and we received net proceeds of approximately $178.3 million.

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Distributions and Contributions

The following table summarizes our distributions from and contributions to our unconsolidated affiliates (in millions):
Distributions(1)
Contributions
Three Months EndedThree Months Ended
March 31,March 31,
2022202120222021
Crestwood Permian$8.5 $3.3 $8.5 $3.3 
Tres Holdings— — 6.0 6.9 
PRBIC— 0.1 — — 
Stagecoach Gas— 14.0 — — 
Total$8.5 $17.4 $14.5 $10.2 

(1)    In April 2022, we received cash distributions from Crestwood Permian and Tres Holdings of approximately $5.1 million and $1.4 million, respectively.
DistributionsContributions
Three Months EndedThree Months Ended
March 31,March 31,
2023202220232022
Crestwood Permian Basin$2.0 $— $— $— 
Tres Holdings— — 5.1 6.0 
Crestwood Permian— 8.5 — 8.5 
Total$2.0 $8.5 $5.1 $14.5 


Note 6 – 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 7.

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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. Our commodity-based derivatives that are settled financially are also reflected in product costs in our consolidated statements of operations. The following table summarizes the impact toincrease (decrease) in our product revenues and product costs, net, in our consolidated statements of operations related to our commodity-based derivatives (in millions):
Three Months EndedThree Months Ended
March 31,March 31,
2022202120232022
Product revenuesProduct revenues$202.2 $114.8 Product revenues$145.8 $202.2 
Loss reflected in product costs$(47.6)$(8.1)
Product costs, netProduct costs, net$(7.2)$47.6 

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, 2022December 31, 2021 March 31, 2023December 31, 2022
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)57.9 60.1 71.6 75.8 Propane, ethane, butane, heating oil and crude oil (MMBbls)63.4 65.5 67.2 70.2 
Natural gas (Bcf)Natural gas (Bcf)24.3 36.2 31.9 43.4 Natural gas (Bcf)15.5 15.8 44.2 48.4 

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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 36 months or less; however, 87%92% 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 derivative clearing broker and a third party broker related to our net asset or liability position with 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.

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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, 2022December 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 
see Note 7.
(1)At March 31, 2022 and December 31, 2021, we posted $11.6 million and $1.5 million of collateral associated with these derivatives.


Note 7 – 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 prices1 — Includes inputs that are availableobservable in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for Level 1 primarily consists of financial instrumentsdate such as exchange-traded derivatives, listed equities and US government treasury securities.

Level 2—Pricing2 — Includes inputs that 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 include3 — Includes 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, 20222023 and December 31, 2021,2022, 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 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 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.

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The following tables set forth by level withinsummarize the fair value hierarchy of our financial instruments that were accounted for at fair value on a recurring basis at March 31, 2022 and December 31, 2021reflected in our consolidated balance sheets (in millions):
March 31, 2022March 31, 2023
Level 1Level 2Level 3Gross Fair Value
Contract Netting(1)
Collateral/Margin Received or PaidFair ValueLevel 1Level 2Level 3Gross Fair Value
Contract Netting(1)
Collateral/Margin Received or PaidFair Value
AssetsAssetsAssets
Assets from price risk managementAssets from price risk management$53.3 $856.4 $— $909.7 $(816.5)$(67.7)$25.5 Assets from price risk management$17.4 $231.3 $— $248.7 $(219.6)$2.3 $31.4 
Other investments(2)
Other investments(2)
2.5 — — 2.5 — — 2.5 
Other investments(2)
2.6 — — 2.6 — — 2.6 
Total assets at fair valueTotal assets at fair value$55.8 $856.4 $— $912.2 $(816.5)$(67.7)$28.0 Total assets at fair value$20.0 $231.3 $— $251.3 $(219.6)$2.3 $34.0 
LiabilitiesLiabilitiesLiabilities
Liabilities from price risk management$62.3 $867.6 $— $929.9 $(816.5)$(5.8)$107.6 
Liabilities from price risk management with credit-risk-related contingent featuresLiabilities from price risk management with credit-risk-related contingent features$13.6 $208.3 $— $221.9 $(219.6)$7.1 $9.4 
Liabilities from price risk management without credit-risk-related contingent featuresLiabilities from price risk management without credit-risk-related contingent features— 2.7 — 2.7 — 1.1 3.8 
Total liabilities at fair valueTotal liabilities at fair value$62.3 $867.6 $— $929.9 $(816.5)$(5.8)$107.6 Total liabilities at fair value$13.6 $211.0 $— $224.6 $(219.6)$8.2 $13.2 
December 31, 2021December 31, 2022
Level 1Level 2Level 3Gross Fair Value
Contract Netting(1)
Collateral/Margin Received or PaidFair ValueLevel 1Level 2Level 3Gross Fair Value
Contract Netting(1)
Collateral/Margin Received or PaidFair Value
AssetsAssetsAssets
Assets from price risk managementAssets from price risk management$33.3 $695.6 $— $728.9 $(607.4)$(79.4)$42.1 Assets from price risk management$62.8 $474.3 $— $537.1 $(452.1)$(12.2)$72.8 
Other investments(2)
Other investments(2)
2.2 — — 2.2 — — 2.2 
Other investments(2)
2.6 — — 2.6 — — 2.6 
Total assets at fair valueTotal assets at fair value$35.5 $695.6 $— $731.1 $(607.4)$(79.4)$44.3 Total assets at fair value$65.4 $474.3 $— $539.7 $(452.1)$(12.2)$75.4 
LiabilitiesLiabilitiesLiabilities
Liabilities from price risk management$26.9 $686.3 $— $713.2 $(607.4)$8.8 $114.6 
Liabilities from price risk management with credit-risk-related contingent featuresLiabilities from price risk management with credit-risk-related contingent features$65.7 $420.1 $— $485.8 $(452.1)$(25.6)$8.1 
Liabilities from price risk management without credit-risk-related contingent featuresLiabilities from price risk management without credit-risk-related contingent features— 11.9 — 11.9 — 3.9 15.8 
Total liabilities at fair valueTotal liabilities at fair value$26.9 $686.3 $— $713.2 $(607.4)$8.8 $114.6 Total liabilities at fair value$65.7 $432.0 $— $497.7 $(452.1)$(21.7)$23.9 

(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, 20222023 and December 31, 2021,2022, the carrying amounts of cash, accounts receivable and accounts payable approximate fair value based on the short-term nature of these instruments.

Credit FacilityFacilities

The fair value of the amounts outstanding under our Crestwood Midstream credit facilityfacilities approximates thetheir respective carrying amounts as of March 31, 20222023 and December 31, 2021,2022, primarily due primarily to the variable nature of the interest raterates of the instrument,instruments, which is considered a Level 2 fair value measurement. See Note 8 for a further discussion of our credit facilities.

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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, 2023December 31, 2022
Carrying
 Amount
Fair
Value
Carrying
 Amount
Fair
Value
2025 Senior Notes$497.9 $490.5 $497.6 $486.7 
2027 Senior Notes$595.6 $576.5 $595.3 $556.9 
February 2029 Senior Notes$692.5 $669.0 $692.1 $642.1 
April 2029 Senior Notes(1)
$475.7 $461.5 $476.7 $450.0 
2031 Senior Notes$591.1 $604.1 $— $— 

March 31, 2022December 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    The carrying amount includes a fair value adjustment we recorded in conjunction with the merger with Oasis Midstream discussed in Note 3, and the related net3. For a further discussion of this fair value adjustment, which are further described insee Note 8.


Note 8 – Long-Term Debt

Long-term debt consisted of the following at March 31, 2022 and December 31, 2021 (in millions):
March 31,
2022
December 31,
2021
Credit Facility$560.0 $282.0 
2025 Senior Notes500.0 500.0 
2027 Senior Notes600.0 600.0 
February 2029 Senior Notes700.0 700.0 
April 2029 Senior Notes450.0 — 
April 2029 Senior Notes fair value adjustment, net30.0 — 
Other(1)
0.2 0.2 
Less: deferred financing costs, net30.1 29.9 
Total debt2,810.1 2,052.3 
Less: current portion0.2 0.2 
Total long-term debt, less current portion$2,809.9 $2,052.1 
March 31,
2023
December 31,
2022
CMLP Credit Facility$473.6 $922.3 
CPBH Credit Facility— 206.8 
2025 Senior Notes500.0 500.0 
2027 Senior Notes600.0 600.0 
February 2029 Senior Notes700.0 700.0 
April 2029 Senior Notes450.0 450.0 
April 2029 Senior Notes fair value adjustment, net(1)
25.7 26.7 
2031 Senior Notes600.0 — 
Less: deferred financing costs, net34.8 27.5 
Total long-term debt$3,314.5 $3,378.3 

(1)Represents non-interest bearing obligationsIn conjunction with the merger with Oasis Midstream discussed in Note 3, we assumed the April 2029 Senior Notes, and we recorded a fair value adjustment of approximately $30.7 million. During the three months ended March 31, 2023 and 2022, we recorded a reduction to our interest and debt expense of approximately $1.0 million and $0.7 million related to certain companies acquired in 2014 with payments due through 2022.the amortization of the fair value adjustment.

Credit FacilityFacilities

CMLP Credit Facility.Crestwood Midstream’s five-year $1.5$1.75 billion revolving credit facility (the CMLP Credit Facility) is available to fund acquisitions, working capital and internal growth projects and for general partnership purposes. Subject to limited exception, the CMLP Credit Facility is guaranteed and secured by substantially all of the equity interests and assets of Crestwood Midstream’s subsidiaries, except for Crestwood Infrastructure Holdings LLC, Crestwood Niobrara LLC, PRBIC and Tres Holdings and their respective subsidiaries. In January 2023, Crestwood Permian and certain of its subsidiaries were designated as guarantor subsidiaries of Crestwood Midstream’s credit facility and senior notes.

In conjunction with the merger with Oasis Midstream on February 1, 2022, we borrowed amounts under the CMLP Credit Facility to fund the cash paid of $160 million to Oasis Petroleum and to repay approximately $218 million of borrowings on Oasis Midstream’s credit facility, which was retired on February 1, 2022.

Under the credit agreement, Crestwood Midstream is required under its credit agreement to maintain a net debt to consolidated EBITDA ratio (as defined in itsthe credit agreement) of not more than 5.50 to 1.0, a consolidated EBITDA to consolidated interest expense ratio (as defined in itsthe credit agreement) of not less than 2.50 to 1.0, and a senior secured leverage ratio (as defined in itsthe credit agreement) of
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not more than 3.50 to 1.0. At March 31, 2022,2023, the net debt to consolidated EBITDA ratio was approximately 3.484.18 to 1.0, the consolidated EBITDA to consolidated interest expense ratio was approximately 5.044.25 to 1.0, and the senior secured leverage ratio was 0.690.59 to 1.0.

At March 31, 2022,2023, Crestwood Midstream had $931.2 million$1.1 billion of available capacity under its credit facilitythe CMLP Credit Facility considering the most restrictive debt covenants in itsthe credit agreement. At March 31, 20222023 and December 31, 2021, Crestwood Midstream’s
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2022, outstanding standby letters of credit under the CMLP Credit Facility were $8.8$7.9 million and $6.3$8.2 million. Borrowings under the credit facilityCMLP 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%6.76% and 4.00%9.00% at March 31, 20222023 and 1.90%6.28% and 4.00%8.50% at December 31, 2021.2022. The weighted-average interest rate on outstanding borrowings as of March 31, 20222023 and December 31, 20212022 was 2.16%6.96% and 1.91%6.40%.

CPBH Credit Facility. In conjunction with the acquisition of the remaining 50% equity interest in Crestwood Permian in July 2022, we assumed a credit agreement entered into by CPB Subsidiary Holdings LLC (CPB Holdings), a wholly-owned subsidiary of Crestwood Permian (the CPBH Credit Facility). In January 2023, we utilized borrowings under the CMLP Credit Facility to repay and terminate the CPBH Credit Facility.

Senior Notes

February 20292031 Senior Notes. In January 2021,2023, Crestwood Midstream issued $700$600 million of 6.00%7.375% unsecured senior notes due 20292031 (the February 20292031 Senior Notes). The February 20292031 Senior Notes will mature on February 1, 2029,2031, and interest is payable semi-annually in arrears on February 1 and August 1 of each year, beginning on August 1, 2021.2023. The net proceeds from this offering of approximately $691.0$592.5 million were used to repay a portion of our senior notes that were due in 2023 and to repay indebtednessborrowings outstanding 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. 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 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. During 2021, we repaid all amounts outstanding under our senior notes due 2023.


Note 9 – 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

A jury trial concluded on June 17, 2022, and a final judgement was filed, weentered on October 24, 2022. The final judgment includes an award of damages of approximately $20.7 million, a pre-judgement interest award of approximately $17.7 million and attorney fees and other costs of approximately $4.7 million. We have paid Linde approximately $22.7 million (including approximately $3.2 million paid during the three months endedinsurance coverage related to certain pre-judgement interest awards but have not recorded a receivable related to any potential insurance recovery at March 31, 2022) related2023. On January 9, 2023, we paid approximately $21.2 million to this matter, and Linde claims remaining unpaid invoicesthe Court Registry under protest to mitigate the impact of approximately $33 million, along with other damages. This matter is not an insurable event basedpost-judgement interest. We filed a Notice of Appeal on our insurance policies,January 13, 2023, and we are unable to predict the ultimate outcome foron the appeal related to 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, 20222023 and December 31, 2021,2022, we had approximately $16.6$9.0 million and $16.8$35.0 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.

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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.

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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 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.

At both March 31, 20222023 and December 31, 2021,2022, our accrual of approximately $0.9for environmental matters was less than $1.0 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 outcomesexposure related to our environmental exposures could range from approximately $0.9 million to $1.8matters was less than $1.0 million at March 31, 2022.2023.

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 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 (in millions):
 CEQPCMLP
 March 31,
2022
December 31, 2021March 31,
2022
December 31, 2021
Self-insurance reserves(1)
$5.9 $5.5 $4.9 $4.7 
 CEQPCMLP
 March 31,
2023
December 31, 2022March 31,
2023
December 31, 2022
Self-insurance reserves(1)
$5.5 $5.6 $4.7 $4.8 
(1)At March 31, 2022,2023, CEQP and CMLP classified approximately $3.5$3.2 million and $2.9$2.7 million, respectively, of these reserves as other long-term liabilities on their consolidated balance sheets.

Guarantees and Indemnifications

We periodically provide indemnification arrangements related to assets or businesses we have sold. Our potential exposure under indemnification arrangements can range from a specified amount to an unlimited amount, depending on the nature of the claim, specificity as to duration, and the particular transaction. As of March 31, 20222023 and December 31, 2021,2022, we have no amounts accrued for these indemnifications.


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Note 10 - Leases

The following table summarizes the balance sheet information related to our operating and finance leases (in millions):
March 31,
2022
December 31, 2021March 31,
2023
December 31, 2022
Operating LeasesOperating LeasesOperating Leases
Operating lease right-of-use assets, netOperating lease right-of-use assets, net$20.3 $27.4 Operating lease right-of-use assets, net$24.4 $24.4 
Accrued expenses and other liabilitiesAccrued expenses and other liabilities$10.4 $13.2 Accrued expenses and other liabilities$10.5 $10.9 
Other long-term liabilitiesOther long-term liabilities14.5 19.4 Other long-term liabilities17.5 17.4 
Total operating lease liabilitiesTotal operating lease liabilities$24.9 $32.6 Total operating lease liabilities$28.0 $28.3 
Finance LeasesFinance LeasesFinance Leases
Property, plant and equipmentProperty, plant and equipment$13.4 $12.3 Property, plant and equipment$13.5 $13.6 
Less: accumulated depreciationLess: accumulated depreciation10.0 9.2 Less: accumulated depreciation8.9 8.9 
Property, plant and equipment, netProperty, plant and equipment, net$3.4 $3.1 Property, plant and equipment, net$4.6 $4.7 
Accrued expenses and other liabilitiesAccrued expenses and other liabilities$30.5 $1.7 Accrued expenses and other liabilities$1.7 $1.9 
Other long-term liabilitiesOther long-term liabilities1.5 1.2 Other long-term liabilities2.7 2.7 
Total finance lease liabilitiesTotal finance lease liabilities$32.0 $2.9 Total finance lease liabilities$4.4 $4.6 

Lease expense. Our operating lease expense, net totaled $3.5$3.8 million and $4.8$3.5 million for the three months ended March 31, 20222023 and 2021.2022. Our finance lease expense totaled $0.8 million and $0.9 million for both the three months ended March 31, 20222023 and 2021.2022.

Other. DuringIn March 2022, we exercised an option to purchase crude oil railcars under certain of our operatingfinance 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 recordedrecognized a loss on long-lived assets of approximately $4.0 million for the difference between the assets held forrelated to our anticipated sale and the carrying value of the assets to be sold.these crude oil railcars.


Note 11 – 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 PetroleumChord received cash plusand approximately 20.9 million newly issued CEQP common units in exchange for its 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 Oasis Midstream common units held by them. For a further discussion of the merger with Oasis Midstream, see Note 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. 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 this transaction of approximately $7.6 million 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.

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Distributions

Crestwood Equity

Limited Partners. A summary of CEQP’s limited partner quarterly cash distributions for the three months ended March 31, 20222023 and 20212022 is presented below:
Record DateRecord DatePayment DatePer Unit Rate
Cash Distributions
(in millions)
Record DatePayment DatePer Unit Rate
Cash Distributions
(in millions)
20232023
February 7, 2023February 7, 2023February 14, 2023$0.655 $68.9 
202220222022
February 7, 2022February 7, 2022February 14, 2022$0.625 $60.9 February 7, 2022February 14, 2022$0.625 $60.9 
2021
February 5, 2021February 12, 2021$0.625 $46.4 

On April 14, 2022,20, 2023, we declared a distribution of $0.655 per limited partner unit to be paid on May 13, 202215, 2023 to unitholders of record on May 6, 20228, 2023 with respect to the quarter ended March 31, 2022.2023.
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Preferred Unitholders. During the three months ended March 31, 20222023 and 2021,2022, we paid cash distributions to our preferred unitholders of approximately $15 million in both periods. On April 14, 2022,20, 2023, the board of directors of our general partner authorized a cash distribution to our preferred unitholders of approximately $15 million with respect to the quarter ended March 31, 2022.2023.

Crestwood Midstream

During the three months ended March 31, 20222023 and 2021,2022, Crestwood Midstream paid cash distributions of $238.1$85.9 million and $334.0$238.1 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 LLC (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 showstables show the change in our non-controlling interest in subsidiary at March 31, 20222023 and 20212022 (in millions):

Balance at December 31, 2022$434.4 
Distributions to non-controlling partner(10.3)
Net income attributable to non-controlling partner10.2 
Balance at March 31, 2023$434.3 

Balance at December 31, 2021$434.6 
Distributions to non-controlling partner(10.3)
Net income attributable to non-controlling partner10.2 
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 partner10.1 
Balance at March 31, 2021$433.5 

In April 2022,2023, Crestwood Niobrara paid a cash distributions to Jackalope Holdingsdistribution of approximately $10.3 million forto Jackalope Holdings with respect to the quarter ended March 31, 2022.2023.

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Other

In February 2022,2023, Crestwood Equity issued 177,025245,929 performance units (the February 2023 Units) under the Crestwood Equity Partners LP Long Term2018 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, 2022,2023, we had total unamortized compensation expense of approximately $4.6$5.7 million related to these performance units.the February 2023 Units. During the three months ended March 31, 2022,2023, we recognized compensation expense of $0.2$0.4 million related to these performance units,the February 2023 Units, which is included in general and administrative expenses on our consolidated statements of operations.

During the three months ended March 31, 2022, 206,0172023, 161,278 performance units that were previously issued in 2020 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 526,322217,702 common units during the three months ended March 31, 20222023 related to those performance units.


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Note 12 - Earnings Per Limited Partner Unit

We calculate the dilutive effect of the preferred units and Crestwood Niobrara preferred units using the if-converted method which assumes units 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, 20222023 and 20212022 (in millions):
Three Months EndedThree Months Ended
March 31,March 31,
2022202120232022
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)
3.6 4.2 
Crestwood Niobrara’s preferred units(1)
— 3.6 
Unit-based compensation performance units(1)
Unit-based compensation performance units(1)
0.3 0.1 
Unit-based compensation performance units(1)
— 0.3 
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 ofadditional information regarding our performance units, see our 20212022 Annual Report on Form 10-K.
(2)
The following table shows Crestwood Equity’s common unitholders’ interest in net income (loss) and weighted-average limited partner units used in computing basic and diluted net income (loss) per limited partner unit for the three months ended March 31, 2023 and 2022 In March 2021, CEQP retired the subordinated units. For additional information regarding the retirement of the subordinated units, see Note 11.(in millions, except for per unit data):

Three Months Ended
March 31,
20232022
Common unitholders’ interest in net income (loss)$16.4 $(3.0)
Diluted net income (loss)$16.4 $(3.0)
Weighted-average limited partners’ units outstanding - basic105.2 86.0 
Dilutive effect of Crestwood Niobrara preferred units4.5 — 
Dilutive effect of unit-based compensation performance units0.1 — 
Weighted-average limited partners’ units outstanding - diluted109.8 86.0 
Net income (loss) per limited partner unit:
Basic$0.16 $(0.04)
Diluted$0.15 $(0.04)


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Note 13 – Segments

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, ourOur financial statements reflect 3three operating and reporting segments: (i) gathering and processing north operations (includes our Arrow, Jackalope and Oasis Midstream Williston operations);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);operations; and (iii) storage and logistics operations (includes our crude oil, NGL and 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 segment. The results of our operations described above are now reflected in the new respective segments for all periods presented.operations. Our corporate operations include all general and administrative expenses that are not allocated to our reportable segments.
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Below is a description of our operating and reporting segments.

Gathering and Processing North. Our gathering and processing north operations provide natural gas gathering, compression, treating and processing services, crude oil gathering and storage services and produced water gathering compression, treating, processing and disposal services to producers in the Williston Basin and Powder River Basin.

Gathering and Processing South. Our gathering and processing south operations provide natural gas gathering, compression, treating and processing services, crude oil gathering services and produced water gathering and disposal services to producers in the Marcellus, Barnett and Delaware basins.Basin.

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.

We assess the performance of our operating segments based on EBITDA, which is identified as income before income taxes, plus debt-related costs (net interest and debt expense) and depreciation, amortization and accretion expense. Below is a reconciliation of CEQP’s and CMLP’s net lossincome to EBITDA (in millions):
CEQPCMLPCEQPCMLP
Three Months EndedThree Months EndedThree Months EndedThree Months Ended
March 31,March 31,March 31,March 31,
20222021202220212023202220232022
Net income (loss)$22.2 $(38.3)$20.2 $(40.4)
Net incomeNet income$41.6 $22.2 $43.0 $20.2 
Add:Add:Add:
Interest and debt expense, netInterest and debt expense, net36.1 36.0 36.1 36.0 Interest and debt expense, net55.6 36.1 55.6 36.1 
Loss on modification/extinguishment of debt— 5.5 — 5.5 
Benefit for income taxes— (0.1)— (0.1)
Provision for income taxesProvision for income taxes0.3 — 0.3 — 
Depreciation, amortization and accretionDepreciation, amortization and accretion74.8 59.2 78.2 62.8 Depreciation, amortization and accretion81.4 74.8 81.3 78.2 
EBITDAEBITDA$133.1 $62.3 $134.5 $63.8 EBITDA$178.9 $133.1 $180.2 $134.5 

The following tables summarize CEQP’s and CMLP’s reportable segment data for the three months ended March 31, 20222023 and 20212022 (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 20212022 Annual Report on Form 10-K. Included in earnings (loss) from unconsolidated affiliates, net reflected in the tables below was approximately $4.6$2.5 million and $129.4$4.6 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, 20222023 and 2021.2022.

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Segment EBITDA Information

Three Months Ended March 31, 2022Three Months Ended March 31, 2023
Gathering and Processing NorthGathering and Processing SouthStorage and LogisticsCorporateTotalGathering and Processing NorthGathering and Processing SouthStorage and LogisticsCorporateTotal
Crestwood MidstreamCrestwood MidstreamCrestwood Midstream
RevenuesRevenues$235.2 $30.7 $1,317.9 $— $1,583.8 Revenues$215.4 $130.9 $916.8 $— $1,263.1 
Intersegment revenues127.4 — (127.4)— — 
Intersegment revenues, netIntersegment revenues, net99.0 34.2 (133.2)— — 
Costs of product/services soldCosts of product/services sold205.6 (0.6)1,159.4 — 1,364.4 Costs of product/services sold152.4 108.5 736.5 — 997.4 
Operations and maintenance expenseOperations and maintenance expense23.7 6.7 12.0 — 42.4 Operations and maintenance expense29.3 15.1 12.2 — 56.6 
General and administrative expenseGeneral and administrative expense— — — 41.7 41.7 General and administrative expense— — — 30.2 30.2 
Gain (loss) on long-lived assets, netGain (loss) on long-lived assets, net— 0.2 (4.0)— (3.8)Gain (loss) on long-lived assets, net0.1 (0.8)— 0.3 (0.4)
Earnings from unconsolidated affiliates, netEarnings from unconsolidated affiliates, net— 2.6 0.4 — 3.0 Earnings from unconsolidated affiliates, net— 0.3 1.4 — 1.7 
Crestwood Midstream EBITDACrestwood Midstream EBITDA$133.3 $27.4 $15.5 $(41.7)$134.5 Crestwood Midstream EBITDA$132.8 $41.0 $36.3 $(29.9)$180.2 
Crestwood EquityCrestwood EquityCrestwood Equity
General and administrative expenseGeneral and administrative expense— — — 1.7 1.7 General and administrative expense— — — 1.4 1.4 
Other income, netOther income, net— — — 0.3 0.3 Other income, net— — — 0.1 0.1 
Crestwood Equity EBITDACrestwood Equity EBITDA$133.3 $27.4 $15.5 $(43.1)$133.1 Crestwood Equity EBITDA$132.8 $41.0 $36.3 $(31.2)$178.9 

Three Months Ended March 31, 2021Three Months Ended March 31, 2022
Gathering and Processing NorthGathering and Processing SouthStorage and LogisticsCorporateTotalGathering and Processing NorthGathering and Processing SouthStorage and LogisticsCorporateTotal
Crestwood MidstreamCrestwood MidstreamCrestwood Midstream
RevenuesRevenues$129.8 $24.6 $878.3 $— $1,032.7 Revenues$235.2 $30.7 $1,317.9 $— $1,583.8 
Intersegment revenues105.3 — (105.3)— — 
Intersegment revenues, netIntersegment revenues, net127.4 — (127.4)— — 
Costs of product/services soldCosts of product/services sold116.2 0.3 697.3 — 813.8 Costs of product/services sold205.6 (0.6)1,159.4 — 1,364.4 
Operations and maintenance expenseOperations and maintenance expense15.1 6.3 11.4 — 32.8 Operations and maintenance expense23.7 6.7 12.0 — 42.4 
General and administrative expenseGeneral and administrative expense— — — 17.2 17.2 General and administrative expense— — — 41.7 41.7 
Gain (loss) on long-lived assets, netGain (loss) on long-lived assets, net(0.2)(1.3)0.1 — (1.4)Gain (loss) on long-lived assets, net— 0.2 (4.0)— (3.8)
Loss from unconsolidated affiliates, net— (0.8)(102.9)— (103.7)
Earnings from unconsolidated affiliates, netEarnings from unconsolidated affiliates, net— 2.6 0.4 — 3.0 
Crestwood Midstream EBITDACrestwood Midstream EBITDA$103.6 $15.9 $(38.5)$(17.2)$63.8 Crestwood Midstream EBITDA$133.3 $27.4 $15.5 $(41.7)$134.5 
Crestwood EquityCrestwood EquityCrestwood Equity
General and administrative expenseGeneral and administrative expense— — — 1.5 1.5 General and administrative expense— — — 1.7 1.7 
Other income, netOther income, net— — — 0.3 0.3 
Crestwood Equity EBITDACrestwood Equity EBITDA$103.6 $15.9 $(38.5)$(18.7)$62.3 Crestwood Equity EBITDA$133.3 $27.4 $15.5 $(43.1)$133.1 

Other Segment Information

CEQPCMLPCEQPCMLP
March 31, 2022December 31, 2021March 31, 2022December 31, 2021March 31, 2023December 31, 2022March 31, 2023December 31, 2022
Total AssetsTotal AssetsTotal Assets
Gathering and Processing NorthGathering and Processing North$4,090.1 $2,408.0 $4,090.1 $2,408.0 Gathering and Processing North$3,950.5 $4,003.6 $3,950.5 $4,003.6 
Gathering and Processing SouthGathering and Processing South1,023.1 886.5 1,150.4 1,017.4 Gathering and Processing South1,455.9 1,473.0 1,455.9 1,473.0 
Storage and LogisticsStorage and Logistics1,097.3 1,125.1 1,097.3 1,125.1 Storage and Logistics945.3 1,057.6 945.3 1,057.6 
CorporateCorporate29.6 26.1 24.3 20.7 Corporate37.6 32.8 32.1 27.2 
Total Assets$6,240.1 $4,445.7 $6,362.1 $4,571.2 
Total assetsTotal assets$6,389.3 $6,567.0 $6,383.8 $6,561.4 


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Note 14 - 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 Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) totaled $429.8$340.0 million and $331.0$368.2 million at March 31, 20222023 and December 31, 2021,2022, 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 1514 years.

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


March 31, 2022December 31, 2021

March 31, 2023December 31, 2022
Contract assets (non-current)Contract assets (non-current)$1.2 $1.3 Contract assets (non-current)$5.2 $5.4 
Contract liabilities (current)(1)
Contract liabilities (current)(1)
$11.0 $10.7 
Contract liabilities (current)(1)
$13.8 $11.7 
Contract liabilities (non-current)(1)
Contract liabilities (non-current)(1)
$202.1 $187.1 
Contract liabilities (non-current)(1)
$205.9 $212.3 

(1)During the three months ended March 31, 2022,2023, we recognized revenues of approximately $3.5$8.0 million that were previously included in contract liabilities at December 31, 2021.2022. The remaining change in our contract liabilities during the three months ended March 31, 20222023 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, 20222023 (in millions):
Remainder of 2022$65.8 
202365.1 
Remainder of 2023Remainder of 2023$45.2 
2024202444.4 202442.1 
202520252.6 20252.0 
202620260.5 20260.6 
202720270.5 
ThereafterThereafter1.3 Thereafter0.6 
TotalTotal$179.7 Total$91.0 

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, 20222023 and 20212022 (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.

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Three Months Ended March 31, 2022Three Months Ended March 31, 2023
Gathering and Processing NorthGathering and Processing SouthStorage and LogisticsIntersegment EliminationTotalGathering and Processing NorthGathering and Processing SouthStorage and LogisticsIntersegment EliminationTotal
Topic 606 revenuesTopic 606 revenuesTopic 606 revenues
GatheringGatheringGathering
Natural gasNatural gas$25.9 $22.4 $— $— $48.3 Natural gas$33.6 $4.3 $— $— $37.9 
Crude oilCrude oil14.8 1.0 — — 15.8 Crude oil14.2 1.9 — — 16.1 
WaterWater34.7 2.2 — — 36.9 Water42.5 8.6 — — 51.1 
ProcessingProcessingProcessing
Natural gasNatural gas14.4 1.1 — — 15.5 Natural gas19.2 5.4 — — 24.6 
Compression
Natural gas— 3.5 — — 3.5 
StorageStorageStorage
Crude oilCrude oil0.5 — — (0.1)0.4 Crude oil0.6 — — (0.1)0.5 
NGLsNGLs— — 2.8 — 2.8 NGLs— — 2.2 — 2.2 
PipelinePipelinePipeline
Crude oilCrude oil— — 0.5 — 0.5 Crude oil1.1 0.2 0.4 — 1.7 
NGLsNGLs— 5.2 0.1 (5.2)0.1 
TransportationTransportation
Transportation
Crude oil1.2 0.1 — — 1.3 
NGLsNGLs— — 5.8 — 5.8 NGLs— — 5.8 — 5.8 
Rail LoadingRail LoadingRail Loading
Crude oilCrude oil— — 0.4 — 0.4 Crude oil— — 0.2 — 0.2 
Product SalesProduct SalesProduct Sales
Natural gasNatural gas63.9 0.3 98.7 (52.1)110.8 Natural gas45.2 34.0 78.7 (65.0)92.9 
Crude oilCrude oil128.1 — 374.0 (11.2)490.9 Crude oil109.3 0.1 278.8 (30.0)358.2 
NGLsNGLs76.9 — 632.7 (64.0)645.6 NGLs46.9 105.9 404.3 (32.9)524.2 
WaterWater1.6 — — — 1.6 Water1.0 — — — 1.0 
OtherOther0.2 — 0.3 — 0.5 Other0.3 — 0.1 — 0.4 
Total Topic 606 revenuesTotal Topic 606 revenues362.2 30.6 1,115.2 (127.4)1,380.6 Total Topic 606 revenues313.9 165.6 770.6 (133.2)1,116.9 
Non-Topic 606 revenuesNon-Topic 606 revenues0.4 0.1 202.7 — 203.2 Non-Topic 606 revenues0.5 (0.5)146.2 — 146.2 
Total revenuesTotal revenues$362.6 $30.7 $1,317.9 $(127.4)$1,583.8 Total revenues$314.4 $165.1 $916.8 $(133.2)$1,263.1 

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Three Months Ended March 31, 2021Three Months Ended March 31, 2022
Gathering and Processing NorthGathering and Processing SouthStorage and LogisticsIntersegment EliminationTotalGathering and Processing NorthGathering and Processing SouthStorage and LogisticsIntersegment EliminationTotal
Topic 606 revenuesTopic 606 revenuesTopic 606 revenues
GatheringGatheringGathering
Natural gasNatural gas$13.2 $18.2 $— $— $31.4 Natural gas$25.9 $22.4 $— $— $48.3 
Crude oilCrude oil20.7 — — — 20.7 Crude oil14.8 1.0 — — 15.8 
WaterWater22.0 — — — 22.0 Water34.7 2.2 — — 36.9 
ProcessingProcessingProcessing
Natural gasNatural gas5.8 1.2 — — 7.0 Natural gas14.4 1.1 — — 15.5 
CompressionCompressionCompression
Natural gasNatural gas— 4.7 — — 4.7 Natural gas— 3.5 — — 3.5 
StorageStorageStorage
Crude oilCrude oil0.1 — 0.2 (0.1)0.2 Crude oil0.5 — — (0.1)0.4 
NGLsNGLs— — 3.7 — 3.7 NGLs— — 2.8 — 2.8 
PipelinePipelinePipeline
Crude oilCrude oil— — 0.8 — 0.8 Crude oil1.2 0.1 0.5 — 1.8 
TransportationTransportationTransportation
Crude oil0.7 — — — 0.7 
NGLsNGLs— — 4.2 — 4.2 NGLs— — 5.8 — 5.8 
Rail LoadingRail LoadingRail Loading
Crude oilCrude oil— — 1.0 — 1.0 Crude oil— — 0.4 — 0.4 
Product SalesProduct SalesProduct Sales
Natural gasNatural gas42.3 0.5 95.6 (42.2)96.2 Natural gas63.9 0.3 98.7 (52.1)110.8 
Crude oilCrude oil90.0 — 251.2 (22.7)318.5 Crude oil128.1 — 374.0 (11.2)490.9 
NGLsNGLs40.3 — 406.0 (40.3)406.0 NGLs76.9 — 632.7 (64.0)645.6 
WaterWater1.6 — — — 1.6 
OtherOther— — 0.2 — 0.2 Other0.2 — 0.3 — 0.5 
Total Topic 606 revenuesTotal Topic 606 revenues235.1 24.6 762.9 (105.3)917.3 Total Topic 606 revenues362.2 30.6 1,115.2 (127.4)1,380.6 
Non-Topic 606 revenuesNon-Topic 606 revenues— — 115.4 — 115.4 Non-Topic 606 revenues0.4 0.1 202.7 — 203.2 
Total revenuesTotal revenues$235.1 $24.6 $878.3 $(105.3)$1,032.7 Total revenues$362.6 $30.7 $1,317.9 $(127.4)$1,583.8 


Note 15 – Related Party Transactions

We enter into transactions with our affiliates within the ordinary course of business, including product purchases, marketing services and various operating 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 For a further description 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.party agreements, see our 2022 Annual Report on Form 10-K. During the three months ended March 31, 2021,2023, we paid approximately $0.3$0.5 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.

First Reserve.
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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 2021 Annual Report on Form 10-K.
Three Months EndedThree Months Ended
March 31,March 31,
2022202120232022
Revenues at CEQP and CMLP(1)
Revenues at CEQP and CMLP(1)
$97.7 $4.9 
Revenues at CEQP and CMLP(1)
$— $97.7 
Costs of product/services sold at CEQP and CMLP(2)
Costs of product/services sold at CEQP and CMLP(2)
$68.5 $41.1 
Costs of product/services sold at CEQP and CMLP(2)
$0.4 $68.5 
Operations and maintenance expenses at CEQP and CMLP charged to our unconsolidated affiliates(3)
$4.8 $5.7 
Operations and maintenance expenses at CEQP and CMLP(3)
Operations and maintenance expenses at CEQP and CMLP(3)
$2.4 $4.8 
General and administrative expenses charged by CEQP to CMLP, net(4)
General and administrative expenses charged by CEQP to CMLP, net(4)
$7.5 $5.9 
General and administrative expenses charged by CEQP to CMLP, net(4)
$8.9 $7.5 
General and administrative expenses at CEQP and CMLP(5)
General and administrative expenses at CEQP and CMLP(5)
$0.9 $— 
General and administrative expenses at CEQP and CMLP(5)
$— $0.9 

(1)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; (ii) $0.5 million during the three months ended March 31, 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 NGLs to a subsidiary of Oasis Petroleum; and (iv)Chord; (ii) $36.6 million during the three months ended March 31, 2022 primarily related to gathering and processing services under agreements withprovided to a subsidiary of Oasis Petroleum.
(2)Includes (i) $36.2 million and $30.3Chord; (iii) $1.6 million during the three months ended March 31, 2022 and 2021 related to purchasesthe sale of natural gas and NGLs fromto a subsidiary of Crestwood Permian; (ii) $0.9 million and $10.8(iv) $0.5 million during the three months ended March 31, 2022 related to compressor leases with a subsidiary of Crestwood Permian.
(2)Includes (i) $0.3 million and 2021$0.9 million during the three months ended March 31, 2023 and 2022 primarily related to purchases of natural gas from a subsidiary of Tres Holdings; and(ii) $0.1 million during the three months ended March 31, 2023 related to gathering services under agreements Crestwood Permian Basin; (iii) $31.4 million during the three months ended March 31, 2022 primarily related to purchases of NGLs from a subsidiary of Oasis Petroleum.Chord; and (iv) $36.2 million during the three months ended March 31, 2022 related to purchases of natural gas and NGLs from a subsidiary of Crestwood Permian.
(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, 2023, we charged $1.3 million to Tres Holdings and $1.1 million to Crestwood Permian Basin. 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.
(4)Includes $8.6$10.0 million and $6.9$8.6 million of unit-based compensation charges allocated from CEQP to CMLP during the three months ended March 31, 20222023 and 2021.2022. In addition, includes $1.1 million and $1.0 million of CMLP’s general and administrative costs allocated to CEQP during both the three months ended March 31, 20222023 and 2021.2022.
(5)Includes $0.9 million during the three months ended March 31, 2022 ofRepresents general and administrative expenses related to a transition services agreement with Oasis Petroleum.Chord.

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

March 31,
2023
December 31,
2022
Accounts receivable at CEQP and CMLP$0.3 $1.6 
Accounts payable at CEQP and CMLP$0.7 $3.0 
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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 unaudited consolidated financial statements and the accompanying footnotes included in this Quarterly Report on Form 10-Q and Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our 20212022 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 and global 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 and transportation infrastructure 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;
changes in global economic conditions;conditions, including capital and credit market conditions, inflation and interest rates;
costs or difficulties related to the integration of acquisitions and success of our joint ventures’ operations;acquisitions;
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 above, see Part I, Item 1A. Risk Factors of our 20212022 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.
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We have takenOn February 20, 2023, we and Brookfield entered into an agreement with a numberthird party to sell each of our respective interests in Tres Holdings for total consideration of approximately $335 million, plus working capital adjustments. The sale was completed on April 3, 2023 and largely completes our strategic stepsrealignment to better position the Company as a stronger, better capitalized company that can accretively grow cash flows and as an industry leader in Environmental, Social and Governance (ESG) efforts.

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 $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 in exchange for its 33.8 million common units held in Oasis Midstream. In addition, Oasis Midstream’s public unitholders received 12.9 million newly issued CEQP common units in exchange for the 14.8 million Oasis Midstream common units held by them. Additionally, under the merger agreement, Oasis Petroleum received a $10 million cash payment for its ownershipdivest 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 535,000 dedicated acres and expands the company’s relationship with Oasis Petroleum. Additionally, Oasis Midstream’s Wild Basin gathering and processing assets are highly complementary with our Arrow gathering system and Bear Den processing facility which provides for immediate opportunities to drive cost savings and commercial synergies and better utilization of available gas processing capacity.non-core assets.

In addition2023, we plan to the merger with Oasis Midstream discussed above,continue executing on our core-asset optimization strategy. To accomplish this strategy, we have also taken steps to (i) engage with our customers to maintain and grow volumes across our asset portfolio; (ii) minimize growth capital expenditures to better align with development activity by our gathering and processing customers; (ii)(iii) realign our organization to reduce operating and administrative expenses; (iii) engage with our customers to maintain volumes across our asset portfolio;expenses from recent acquisitions and divestitures; (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 ensurefurther enhance balance sheet strength. Given our efforts over the past few years to improve the partnership’sPartnership’s competitive position in the businesses we operate, manage costs and improve margins and create a stronger balance sheet, we believe the Company iswe are well positioned to execute itsour 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 subsequently issued an opinion upholding the District Court’s decision on the merits, but not prohibiting DAPL’s continued operation. The plaintiffs sought another injunction against DAPL’s operation, which was denied by the District Court in May 2021. As required by the District Court, the U.S. Army Corps of Engineers is currently conducting an environmental impact statement, which is currently expected to be complete in September 2022. We expect DAPL will remain in operation while the environmental impact statement is being completed.

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.

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 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 material impact on our capital expenditures or results of operations in 2022.

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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)net) 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 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 isare 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 U.S. 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 U.S. GAAP. EBITDA and Adjusted EBITDA calculations may vary among entities, so our computation may not be comparable to measures used by other companies. See our reconciliation of net income to EBITDA and Adjusted EBITDA in “Results of Operations” below.

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Results of Operations

The following tables summarize our results of operations (in millions):
Crestwood EquityCrestwood MidstreamCrestwood EquityCrestwood Midstream
Three Months EndedThree Months EndedThree Months EndedThree Months Ended
March 31,March 31,March 31,March 31,
20222021202220212023202220232022
RevenuesRevenues$1,583.8 $1,032.7 $1,583.8 $1,032.7 Revenues$1,263.1 $1,583.8 $1,263.1 $1,583.8 
Costs of product/services soldCosts of product/services sold1,364.4 813.8 1,364.4 813.8 Costs of product/services sold997.4 1,364.4 997.4 1,364.4 
Operations and maintenance expenseOperations and maintenance expense42.4 32.8 42.4 32.8 Operations and maintenance expense56.6 42.4 56.6 42.4 
General and administrative expenseGeneral and administrative expense43.4 18.7 41.7 17.2 General and administrative expense31.6 43.4 30.2 41.7 
Depreciation, amortization and accretionDepreciation, amortization and accretion74.8 59.2 78.2 62.8 Depreciation, amortization and accretion81.4 74.8 81.3 78.2 
Loss on long-lived assets, netLoss on long-lived assets, net3.8 1.4 3.8 1.4 Loss on long-lived assets, net0.4 3.8 0.4 3.8 
Operating incomeOperating income55.0 106.8 53.3 104.7 Operating income95.7 55.0 97.2 53.3 
Earnings (loss) from unconsolidated affiliates, net3.0 (103.7)3.0 (103.7)
Earnings from unconsolidated affiliates, netEarnings from unconsolidated affiliates, net1.7 3.0 1.7 3.0 
Interest and debt expense, netInterest and debt expense, net(36.1)(36.0)(36.1)(36.0)Interest and debt expense, net(55.6)(36.1)(55.6)(36.1)
Loss on modification/extinguishment of debt— (5.5)— (5.5)
Other income, netOther income, net0.3 — — — Other income, net0.1 0.3 — — 
Benefit for income taxes— 0.1 — 0.1 
Net income (loss)22.2 (38.3)20.2 (40.4)
Provision for income taxesProvision for income taxes(0.3)— (0.3)— 
Net incomeNet income41.6 22.2 43.0 20.2 
Add:Add:Add:
Interest and debt expense, netInterest and debt expense, net36.1 36.0 36.1 36.0 Interest and debt expense, net55.6 36.1 55.6 36.1 
Loss on modification/extinguishment of debt— 5.5 — 5.5 
Benefit for income taxes— (0.1)— (0.1)
Provision for income taxesProvision for income taxes0.3 — 0.3 — 
Depreciation, amortization and accretionDepreciation, amortization and accretion74.8 59.2 78.2 62.8 Depreciation, amortization and accretion81.4 74.8 81.3 78.2 
EBITDAEBITDA133.1 62.3 134.5 63.8 EBITDA178.9 133.1 180.2 134.5 
Unit-based compensation chargesUnit-based compensation charges8.6 2.3 8.6 2.3 Unit-based compensation charges10.0 8.6 10.0 8.6 
Loss on long-lived assets, netLoss on long-lived assets, net3.8 1.4 3.8 1.4 Loss on long-lived assets, net0.4 3.8 0.4 3.8 
(Earnings) loss from unconsolidated affiliates, net(3.0)103.7 (3.0)103.7 
Earnings from unconsolidated affiliates, netEarnings from unconsolidated affiliates, net(1.7)(3.0)(1.7)(3.0)
Adjusted EBITDA from unconsolidated affiliates, netAdjusted EBITDA from unconsolidated affiliates, net7.6 25.7 7.6 25.7 Adjusted EBITDA from unconsolidated affiliates, net4.2 7.6 4.2 7.6 
Change in fair value of commodity inventory-related derivative contractsChange in fair value of commodity inventory-related derivative contracts5.7 (30.5)5.7 (30.5)Change in fair value of commodity inventory-related derivative contracts(3.5)5.7 (3.5)5.7 
Significant transaction and environmental related costs and other itemsSignificant transaction and environmental related costs and other items17.0 0.5 17.0 0.3 Significant transaction and environmental related costs and other items4.3 17.0 4.3 17.0 
Adjusted EBITDAAdjusted EBITDA$172.8 $165.4 $174.2 $166.7 Adjusted EBITDA$192.6 $172.8 $193.9 $174.2 
Crestwood EquityCrestwood Midstream
Three Months EndedThree Months Ended
March 31,March 31,
2023202220232022
Net cash provided by operating activities$245.9 $222.5 $248.0 $223.9 
Net changes in operating assets and liabilities(113.1)(112.9)(113.8)(112.8)
Amortization of debt-related deferred costs and fair value adjustment(0.8)(0.8)(0.8)(0.8)
Interest and debt expense, net55.6 36.1 55.6 36.1 
Unit-based compensation charges(10.0)(8.6)(10.0)(8.6)
Loss on long-lived assets, net(0.4)(3.8)(0.4)(3.8)
Earnings from unconsolidated affiliates, net, adjusted for cash distributions received1.4 0.4 1.4 0.4 
Deferred income taxes— 0.1 (0.1)— 
Provision for income taxes0.3 — 0.3 — 
Other non-cash expense— 0.1 — 0.1 
EBITDA178.9 133.1 180.2 134.5 
Unit-based compensation charges10.0 8.6 10.0 8.6 
Loss on long-lived assets, net0.4 3.8 0.4 3.8 
Earnings from unconsolidated affiliates, net(1.7)(3.0)(1.7)(3.0)
Adjusted EBITDA from unconsolidated affiliates, net4.2 7.6 4.2 7.6 
Change in fair value of commodity inventory-related derivative contracts(3.5)5.7 (3.5)5.7 
Significant transaction and environmental related costs and other items4.3 17.0 4.3 17.0 
Adjusted EBITDA$192.6 $172.8 $193.9 $174.2 
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Crestwood EquityCrestwood Midstream
Three Months EndedThree Months Ended
March 31,March 31,
2022202120222021
Net cash provided by operating activities$222.5 $258.5 $223.9 $259.2 
Net changes in operating assets and liabilities(112.9)(122.8)(112.8)(122.0)
Amortization of debt-related deferred costs(0.8)(1.7)(0.8)(1.7)
Interest and debt expense, net36.1 36.0 36.1 36.0 
Unit-based compensation charges(8.6)(2.3)(8.6)(2.3)
Loss on long-lived assets, net(3.8)(1.4)(3.8)(1.4)
Earnings (loss) from unconsolidated affiliates, net, adjusted for cash distributions received0.4 (103.8)0.4 (103.8)
Deferred income taxes0.1 — — — 
Benefit for income taxes— (0.1)— (0.1)
Other non-cash income0.1 (0.1)0.1 (0.1)
EBITDA133.1 62.3 134.5 63.8 
Unit-based compensation charges8.6 2.3 8.6 2.3 
Loss on long-lived assets, net3.8 1.4 3.8 1.4 
(Earnings) loss from unconsolidated affiliates, net(3.0)103.7 (3.0)103.7 
Adjusted EBITDA from unconsolidated affiliates, net7.6 25.7 7.6 25.7 
Change in fair value of commodity inventory-related derivative contracts5.7 (30.5)5.7 (30.5)
Significant transaction and environmental related costs and other items17.0 0.5 17.0 0.3 
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 EndedThree Months EndedThree Months EndedThree Months Ended
March 31, 2022March 31, 2021March 31, 2023March 31, 2022
Gathering and Processing NorthGathering and Processing SouthStorage and LogisticsGathering and Processing NorthGathering and Processing SouthStorage and LogisticsGathering and Processing NorthGathering and Processing SouthStorage and LogisticsGathering and Processing NorthGathering and Processing SouthStorage and Logistics
RevenuesRevenues$235.2 $30.7 $1,317.9 $129.8 $24.6 $878.3 Revenues$215.4 $130.9 $916.8 $235.2 $30.7 $1,317.9 
Intersegment revenuesIntersegment revenues127.4 — (127.4)105.3 — (105.3)Intersegment revenues99.0 34.2 (133.2)127.4 — (127.4)
Costs of product/services soldCosts of product/services sold205.6 (0.6)1,159.4 116.2 0.3 697.3 Costs of product/services sold152.4 108.5 736.5 205.6 (0.6)1,159.4 
Operations and maintenance expensesOperations and maintenance expenses23.7 6.7 12.0 15.1 6.3 11.4 Operations and maintenance expenses29.3 15.1 12.2 23.7 6.7 12.0 
Gain (loss) on long-lived assets, netGain (loss) on long-lived assets, net— 0.2 (4.0)(0.2)(1.3)0.1 Gain (loss) on long-lived assets, net0.1 (0.8)— — 0.2 (4.0)
Earnings (loss) from unconsolidated affiliates, net— 2.6 0.4 — (0.8)(102.9)
Earnings from unconsolidated affiliates, netEarnings from unconsolidated affiliates, net— 0.3 1.4 — 2.6 0.4 
EBITDAEBITDA$133.3 $27.4 $15.5 $103.6 $15.9 $(38.5)EBITDA$132.8 $41.0 $36.3 $133.3 $27.4 $15.5 

Below is a discussion of the factors that impacted EBITDA by segment for the three months ended March 31, 20222023 compared to the same period in 2021.2022.

Gathering and Processing North

EBITDA for our gathering and processing north segment increasedwas relatively flat during the three months ended March 31, 2023 compared to the same period in 2022, primarily due to the contribution of our Williston Basin operations acquired in conjunction with the merger with Oasis Midstream in February 2022, offset by the decline in gathering and processing volumes and the impact of lower commodity prices experienced by our Arrow operations during the three months ended March 31, 2023 compared to the same period in 2022.

Our gathering and processing north segment’s revenues decreased by approximately $29.7$48.2 million during the three months ended March 31, 20222023 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 increaseddecreased by
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approximately $89.4$53.2 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 soldThese decreases were primarily driven by our Arrow operations which experienced highera more than 30% decrease in the average commodity prices it received on its agreements under whichnatural gas and NGLs it purchases and sells crude oilpursuant to its gas gathering and natural gas, partially offset by lower volumes due to our customers shutting in productionprocessing agreements during early 2022 as a result of winter weather conditions. During the three months ended March 31, 2022,2023 compared to the same period in 2022. We manage our company-wide crude oil, natural gas and NGL commodity exposures through price risk management activities conducted by our storage and logistics segment, which is further described under Storage and Logistics below. In addition, Arrow’s natural gas gathering and processing volumes decreased by approximately 10% and its crude oil volumes decreased by 32%11%, respectively during the three months ended March 31, 2023 compared to the same period in 2021.2022 due to unusual winter weather conditions experienced at the end of 2022 and into early 2023. Partially offsetting the decrease in revenues described above was the impact of our Williston Basin operations acquired in conjunction with the merger with Oasis Midstream in February 2022, which experienced an increase in its natural gas gathering and processing volumes of approximately 46% and 42%, respectively, during the three months ended March 31, 2023 compared to the same period in 2022.

Our gathering and processing north segment’s operations and maintenance expenses increased by approximately $8.6$5.6 million during the three months ended March 31, 20222023 compared to the same period in 2021,2022, primarily due to our Williston Basin operations acquired in conjunction with the merger with Oasis Midstream Williston operations.in February 2022.
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Gathering and Processing South

EBITDA for our gathering and processing south segment increased by approximately $11.5$13.6 million during the three months ended March 31, 20222023 compared to the same period in 2021. As described above, upon the completion of the merger with Oasis Midstream, we began reflecting the financial results of Oasis Midstream’s Delaware Basin operations in our gathering and processing south segment.

2022. Our gathering and processing south segment’s revenues, costs of product/services sold and operations and maintenance expenses increased by approximately $6.1$134.4 million, $109.1 million, and $8.4 million, respectively, during the three months ended March 31, 20222023 compared to the same period in 2021. During2022. These increases were primarily driven by the three months ended March 31,impact of our Delaware Basin operations acquired during February 2022 we recognized revenues of approximately $3.3 million related to ourin conjunction with the merger with Oasis Midstream, Delaware Basin operations. Thethe acquisitions in July 2022 of Sendero Midstream Partners LP and the remaining variance50% equity interest in Crestwood Permian, which increased our gathering and processing south segment’s revenues, was primarily drivencosts of product/services sold and operations and maintenance expenses by higher commodity pricesapproximately $162.9 million, $109.3 million and a 16% increase in natural gas gathering volumes on our Barnett system. During the three months ended March 31, 2021, gathering volumes on our Barnett system were lower due to the extreme winter weather conditions experienced during that period.$15.2 million, respectively.

OurPartially offsetting the increases described above were the divestitures of our Barnett and Marcellus legacy, non-core operations during 2022, which decreased our gathering and processing south segment’s revenues and operations and maintenance expenses increased by approximately $0.4$27.6 million and $6.6 million, respectively, during the three months ended March 31, 20222023 compared to the same period in 2021, primarily due to our Oasis Midstream Delaware Basin operations.2022.

Our gathering and processing south segment’s EBITDA was also impacted by an increasea net decrease in equity earnings from unconsolidated affiliates of approximately $3.4$2.3 million from our Crestwood Permian equity investment during the three months ended March 31, 20222023 compared to the same period in 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 periodconsolidation of our Crestwood Permian equity investment as a result of acquiring the remaining 50% equity interest in 2021.Crestwood Permian in July 2022.

Storage and Logistics

EBITDA for our storage and logistics segment increased by approximately $54.0$20.8 million during the three months ended March 31, 20222023 compared to the same period in 2021. Our2022, primarily driven by our NGL logistics operations which experienced an increase in demand for its storage and terminalling services during early 2023 due to unusual winter weather conditions in the Midwest and East Coast. Partially offsetting the increase in our NGL logistics segment’s EBITDA foroperations was 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 resultimpact of recording our proportionate share of a goodwill impairment recorded by the equity method investee further discussedlower commodity prices described 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 increasea decrease in revenues and costs of product/services sold of approximately $289.6$259.0 million and $329.3$276.9 million, respectively, during the three months ended March 31,202231, 2023 compared to the same period in 2021.2022. These increasesdecreases were primarily driven by higherlower NGL prices during the three months ended March 31, 20222023 as a result of overall increasesdecreases in commodity prices during 2022early 2023 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 2021.2022. Our NGL marketing and logistics operations’ costs of product/services sold increaseddecreased more than than its revenues primarily due to the increased demand for our NGL storage and terminalling operations described above and the impact of increasing commodity prices on our assets and liabilities from price risk management activities.activities that manage our company-wide crude oil, natural gas and NGL commodity price exposures. Included in our costs of product/services sold was a lossgain of $47.6
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million and $8.1$7.2 million during the three months ended March 31, 2023 as compared to a loss of $47.6 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 increasea decrease in its revenues and product costs of approximately $128.9$147.3 million and $133.2$146.1 million, respectively, during the three months ended March 31, 20222023 compared to the same period in 2021.2022. These increasesdecreases were primarily driven primarily by higherlower crude oil purchases and sales as a result of increasesdecreases 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, our natural gas marketing operations experienced higher revenues due2023 compared to increased marketing activity as a result of the unusually cold weather during early 2021.same period in 2022.

Our storage and logistics segment’s EBITDA during the three months ended March 31, 2022 was impacted by a loss on long-lived assets of approximately $4.0 million primarily due to the 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 netan increase in earnings from unconsolidated affiliates of approximately $103.3 million.$1.0 million during the three months ended March 31, 2023 compared to the same period in 2022. During the three months ended March 31, 2021, we 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 as a result of 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 5. During the three months ended March 31, 2022,2023, earnings from our Tres Holdings equity investment decreasedincreased primarily due to higher revenues experienced by $8.7 million compared to the same period in 2021. During the three months ended March 31, 2021, Tres Holdings experienced higher revenuesresulting from natural gas inventory sales and an increase in demand for its storage and transportation services due to the unusually cold weather experienced duringin early 2021.2023.

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Other EBITDA Results

General and Administrative Expenses.During the three months ended March 31, 2022,2023, our general and administrative expenses increaseddecreased by approximately $25$12 million compared to the same period in 2021,2022, primarily due to transaction costs incurred related to the mergerin connection with Oasis Midstream. In addition, we also experienced higher unit-based compensation chargesour strategic transactions executed during the three months ended March 31, 2022 compared to the same period in 2021, primarily driven by higher average awards outstanding under our long-term incentive plans. 2022.

Items not affecting EBITDA include the following:

Depreciation, Amortization and Accretion Expense. During the three months ended March 31, 2022,2023, our depreciation, amortization and accretion expense increased by approximately $16 million compared to the same period in 2021,2022, primarily due to our acquisitions during 2022, partially offset by the merger with Oasis Midstream.divestitures of our legacy Barnett and Marcellus operations during 2022.

Interest and Debt Expense, Net. During the three months ended March 31, 2022,2023, our interest expense and debt expense, relatednet increased by approximately $20 million compared to our senior notes increasedthe same period in 2022, primarily due to the April 20292031 Senior Notes assumedissued in conjunction withJanuary 2023 and higher interest rates on borrowings under the merger with Oasis Midstream.CMLP Credit Facility during 2023 compared to 2022.

The following table provides a summary of our interest and debt expense, net (in millions):
Three Months EndedThree Months Ended
March 31,March 31,
2022202120232022
Credit facility$3.4 $3.5 
Credit facilitiesCredit facilities$11.6 $3.4 
Senior notesSenior notes32.1 29.8 Senior notes44.1 32.1 
Other0.9 2.9 
Other, netOther, net1.0 0.9 
Gross interest and debt expenseGross interest and debt expense36.4 36.2 Gross interest and debt expense56.7 36.4 
Less: capitalized interestLess: capitalized interest0.3 0.2 Less: capitalized interest1.1 0.3 
Interest and debt expense, netInterest and debt expense, net$36.1 $36.0 Interest and debt expense, net$55.6 $36.1 

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 our 2023 Senior Notes.

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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 MidstreamCMLP 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 and maintenance and growth capital expenditures, and service their outstanding indebtedness.expenditures. 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. We also pay quarterly cash distributions of approximately $15 million to our preferred unitholders and quarterly cash distributions of approximately $10 million to Crestwood Niobrara LLC’sNiobrara’s non-controlling partner. The $434.3 million of preferred securities issued to Crestwood Niobrara’s non-controlling partner are redeemable by the non-controlling partner beginning in January 2024, and we believe we have adequate borrowing capacity under the Crestwood Midstream credit facility along with adequate other potential sources of capital to fund any such potential redemption.

On April 14, 2022,20, 2023, we declared a quarterly cash distribution of $0.655 per unit to our common unitholders with respect to the first quarter of 2022,2023, which will be paid on May 13, 2022.15, 2023. 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, 2022,2023, we had $931.2 million$1.1 billion 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, 2022,2023, we were in compliance with all of our debt covenants applicable to theour 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.
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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. In January 2023, Crestwood Midstream issued $600 million of 7.375% unsecured senior notes due 2031 (the 2031 Senior Notes). We used the proceeds from the issuance of the 2031 Senior Notes to repay borrowings under the Crestwood Midstream credit facility and to repay all outstanding borrowings under the Crestwood Permian credit facility, which was terminated in January 2023. In April 2023, we sold our 50% equity interest in Tres Holdings for approximately $178.3 million, including working capital adjustments, and we used the proceeds from the sale to repay amounts outstanding under the Crestwood Midstream credit facility.

Cash Flows

The following table provides a summary of Crestwood Equity’s cash flows by category (in millions):
Three Months EndedThree Months Ended
March 31,March 31,
2022202120232022
Net cash provided by operating activitiesNet cash provided by operating activities$222.5 $258.5 Net cash provided by operating activities$245.9 $222.5 
Net cash used in investing activitiesNet cash used in investing activities$(179.7)$(2.0)Net cash used in investing activities$(70.4)$(179.7)
Net cash used in financing activitiesNet cash used in financing activities$(44.2)$(254.2)Net cash used in financing activities$(174.4)$(44.2)

Operating Activities

Our cash flows from operating activities increased by approximately $23.4 million during the three months March 31, 2023 compared to the same period in 2022. The net increase was primarily driven by our gathering and processing operations acquired in the Williston and Delaware Basins during 2022, partially offset by a reduction in operating cash flows from our Barnett and Marcellus operations which were divested during 2022. In addition, our general and administrative expenses decreased by approximately $36.0 million during the three months ended March 31, 20222023 compared to the same period in 2021. The decrease was driven by higher general and administrative expenses of approximately $24.7 million2022, primarily due to transaction costs related to the mergerincurred in connection with Oasis Midstream. In addition, we experienced a decrease in net cash inflow from working capital of approximately $9.9 million primarily related to our storage and logistics operations.strategic transactions executed during 2022.

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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 and reimbursable 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 the construction of these construction projects could result in less future operating cash flows and earnings.

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The following table summarizes our capital expenditures for the three months ended March 31, 20222023 (in millions):

Growth capital(1)
$24.257.9 
Maintenance capital1.46.9 
Other(2)
0.82.5 
Purchases of property, plant and equipment$26.467.3 

(1)Includes $3.2payments of approximately $21 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.

Acquisition. In February 2022, we acquired Oasis Midstream, which included cash consideration of $160 million, net of cash acquired of approximately $14.9 million.

Investments in Unconsolidated Affiliates. During the three months ended March 31, 2022 and 2021, we contributed approximately $6.0 million and $6.9 millionPursuant to our Tres Holdingsjoint venture agreements with our respective equity investmentinvestments, we periodically make contributions to our equity investments to fund their expansion projects and for itsother operating purposes. During the three months ended March 31, 20222023 and 2021,2022, we contributed approximately $8.5$5.1 million and $3.3$14.5 million to our Crestwood Permian equity investment primarily to fund its expansion projects.investments.

Financing Activities

The following equity and debt transactions impacted our financing activities during the three months ended March 31, 2023 compared to the same period in 2022:

Equity and Debt Transactions

During the three months ended March 31, 2022,2023, distributions to our partners increased by approximately $14.5$8 million compared to the same period in 2021,2022, primarily due to an increase in common units outstanding as a result of the units issued in conjunction with the merger with Oasis Midstream;

our strategic transactions during 2022, as well as an increase in our distribution per limited partner unit from $0.625 per unit to $0.655 per unit;
During the three months ended March 31, 2022, our taxes paid for unit-based compensation vesting increased by2023, we received approximately $6.8$592.5 million compared tofrom the same period in 2021, primarily due to higher vestingissuance of unit-based compensation awards;

the 2031 Senior Notes;
During the three months ended March 31, 2022, we borrowed amounts under our revolvingthe Crestwood Midstream credit facility to (i) fund the $160.0 million of cash consideration paid to Oasis Petroleum in conjunction with the merger with Oasis MidstreamMidstream; and (ii) to repay approximately $218.4 million outstanding under the Oasis Midstream credit facility assumedacquired in conjunction with the merger;merger with Oasis Midstream; and

During the three months ended March 31, 2022,2023, our other debt-related transactions resulted in net repayments under our credit facilities of $100.0approximately $657.1 million compared to net borrowingsrepayments of $108.2approximately $100.0 million during the same period in 2021.2022.
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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. In January 2023, Crestwood Permian and certain of its subsidiaries were designated as Guarantor Subsidiaries of Crestwood Midstream’s senior notes and its credit facility. For additional information regarding ourthe Crestwood Midstream credit facility and senior notes and related guarantees, see our 20212022 Annual Report on Form 10-K and Item 1. Financial Statements, Note 8 of this Quarterly Report on Form 10-Q.10-K.

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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, 2022December 31, 2021March 31, 2023December 31, 2022
Current assetsCurrent assets$570.8 $574.3 Current assets$483.9 $588.4 
Current assets - affiliatesCurrent assets - affiliates$58.4 $8.4 Current assets - affiliates$1.4 $1.3 
Property, plant and equipment, netProperty, plant and equipment, net$3,385.2 $2,161.5 Property, plant and equipment, net$3,806.6 $3,295.8 
Non-current assetsNon-current assets$1,156.3 $642.3 Non-current assets$1,004.5 $1,012.9 
Current liabilitiesCurrent liabilities$718.3 $578.9 Current liabilities$450.5 $466.1 
Current liabilities - affiliatesCurrent liabilities - affiliates$19.1 $14.7 Current liabilities - affiliates$3.4 $41.5 
Long-term debt, less current portionLong-term debt, less current portion$2,809.9 $2,052.1 Long-term debt, less current portion$3,314.5 $3,171.5 
Non-current liabilitiesNon-current liabilities$159.3 $138.7 Non-current liabilities$195.8 $147.6 

Summarized Combined Statement of Operations Information (in millions)
Three Months Ended March 31, 20222023
Revenues$1,468.31,242.8 
Revenues - affiliates$97.40.6 
Cost of products/services sold$1,287.3992.3 
Cost of products/services sold - affiliates$68.55.5 
Operations and maintenance expenses(1)
$37.351.2 
General and administrative expenses(2)
$41.730.2 
Operating income$63.897.8 
Net income$27.741.8 

(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, 2022,2023, we charged $7.3$5.0 million to our affiliates under these agreements.
(2)    Includes $7.5$8.9 million of net general and administrative expenses that were charged by our affiliates to us.


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Item 3.Quantitative and Qualitative Disclosures About Market Risk

Our interest rate risk and commodity price, market and credit risks are discussed in our 20212022 Annual Report on Form 10-K. There have been no material changes in those exposures from December 31, 20212022 to March 31, 2022.2023.


Item 4.Controls and Procedures

Disclosure Controls and Procedures

As of March 31, 2022,2023, 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,
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including the Chief Executive Officer and Chief Financial Officer of their General Partners, dodoes 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 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, 2022.2023.

Changes in Internal Control over Financial Reporting

On February 1, 2022, we completed the merger with Oasis Midstream andThere 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 werebeen no changes toin Crestwood Equity’s or Crestwood Midstream’s internal control over financial reporting during the three months ended March 31, 20222023 that have materially affected, or are reasonably likely to materially affect Crestwood Equity’s or Crestwood Midstream’s internal control over financial reporting.
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PART II – OTHER INFORMATION

Item 1.Legal Proceedings

Part I, Item 1. Financial Statements, Note 9 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 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 20212022 Annual Report on Form 10-K.


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

None.


Item 3.Defaults Upon Senior Securities

None.


Item 4.Mine Safety Disclosures

Not applicable.


Item 5.Other Information

None.
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Item 6.Exhibits
Exhibit
Number
  Description
2.1
2.2
2.3
3.1  
3.2  
3.3
3.4
3.5
3.6  
3.7  
3.8
3.9  
3.10
3.11
3.12
3.13
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3.14
3.15
3.16
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3.17
3.18
10.14.1
10.24.2
*4.3
*4.4
*4.5
*4.6
10.3*4.7
10.4
10.5
10.6
10.7
10.8
10.9
10.10
*31.1  
*31.2  
*31.3
*31.4
*32.1  
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*32.2  
*32.3
*32.4
**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
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**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
104Cover 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.

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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 28, 2022May 4, 2023By:/s/ ROBERT T. HALPINJOHN BLACK
Robert T. HalpinJohn Black
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 28, 2022May 4, 2023By:/s/ ROBERT T. HALPINJOHN BLACK
Robert T. HalpinJohn Black
Executive Vice President and Chief Financial Officer
(Duly Authorized Officer and Principal Financial Officer)

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