Crestwood Midstream Partners LP

1 Connections for America s Energy Connections for America s Energy Connections for America s Energy Crestwood Midstream Partners LP Tracy Halleck Director, Northeast Marketing Connections for America s Energy Current Crestwood Asset Overview Competition correlation with many industries. Market Flows and Liquidity New Crestwood Projects AGENDA 2 Connections for America s Energy Crestwood NE Natural Gas Storage & Transport Assets 3 3 Stagecoach MSQ: Bcf MDWQ: 500 mmcf/d MDIQ: 250 mmcf/d Seneca Lake MSQ: Bcf MDWQ: 145 mmcf/d MDIQ: 80 mmcf/d Thomas Corners MSQ: Bcf MDWQ: 140 mmcf/d MDIQ : 70 mmcf/d Steuben MSQ: Bcf MDWQ: 60 mmcf/d MDIQ : 30 mmcf/d Connections for America s Energy CNYOG Asset Configuration 4 TGP 3 Bcfd Transco Bcfd Millennium Bcfd + Stagecoach Storage Angelina Receipts Stagecoach Junction Receipts TGP Receipt/Delivery Cherry Road Receipts Transco Receipt/Delivery North Lateral, 20 South Lateral, 30 MARC I, 30 Millennium Receipt/Delivery Location Receipt Capacity Delivery Capacity Millennium 750 640 Stagecoach Storage 500 250 Angelina Gathering 480 n/a Stagecoach Junction 400 n/a TGP 1,130 1,130 Cherry Road 575 n/a Transco 776 670 *Units in mmcf/d Connections for America s Energy Arlington Asset Map 5 bcf facility bcf facility bcf facility Connections for America s Energy Have you ever noticed two seemingly identical movies being released at the same time and wondered why Hollywood studios would do such a thing?

2 While you may have first chalked it up to mere coincidence, a few Hollywood insiders suggests otherwise. Are we competitive in the Natural Gas industry? Some Hollywood blog writers have found that competing studios often own similar movie scripts and if one studio gets wind that another is making a movie that is similar to a script they own they may try to make it and put it out earlier or around the same time. Hmm Correlation to pipeline companies? A secondary reason could be the benefits of shared marketing and buzz, especially if Studio B has a smaller budget. Interestingly, this could be why studios prefer to buy exclusive rights to comics and graphic novels, so other studios can t replicate the storyline. Right-of-way a problem? Twin Movies have been released as far back as 1964 starting with Dr. Strangelove or: How I Learned to Stop Worrying and Love the Bomb (1964) and Fail-Safe (1964). Penn East vs Diamond East? Northeast Direct vs Access Northeast?

3 FUN FACT Competition in the Motion Picture Industry 6 Connections for America s Energy 7 7 Both released in 1986 TOP GUN and IRON EAGLE Connections for America s Energy 8 8 Both released in 1989 TURNER & HOOCH and K9 Connections for America s Energy 9 9 Late 1998 Early 1999 THE TRUMAN SHOW and EDTV Connections for America s Energy 10 10 Both released in 1998 ARMAGEDDON and DEEP IMPACT Connections for America s Energy 11 Early 2004 Late 2003 SHARK TALE and FINDING NEMO Connections for America s Energy 12 Both released in 2009 OBSERVE & REPORT and MALL COP Connections for America s Energy 13 13 Both released in 2013 OLYMPUS HAS FALLEN and WHITE HOUSE DOWN Connections for America s Energy 14 14 LNG Exports Pricing flexibility will emerge to gain demand customers load while transportation, storage and supply proximity help LNG costs stay lower.

4 The early bird gets the worm on these projects. 1. Corpus Christi, TX: Bcfd (Cheniere Corpus Christi LNG) 2. Lake Charles, LA: Bcfd (Southern Union BG/Trunkline LNG) 3. Cove Point, MD: Bcfd (Dominion Cove Point LNG) Approved 4. Lavaca Bay, TX: Bcfd (Excelerate Liquefaction) 5. Elba Island, GA: Bcfd (Southern LNG Company) 6. Sabine Pass, LA: Bcfd (Sabine Pass Liquefaction) 7. Lake Charles, LA: Bcfd (Magnolia LNG) 8. Plaquemines Parish, LA: Bcfd (CE FLNG) 9. Sabine Pass, TX: Bcfd (ExxonMobil Golden Pass) 10. Pascagoula, MS: Bcfd (Gulf LNG Liquefaction) 11. Plaquemines Parish, LA: Bcfd (Louisiana LNG) 12. Freepoint , TX: Bcfd (Dow Osaka Gas) Approved Competition is alive and well in the natural gas industry Connections for America s Energy 15 15 NE Natural Gas Production Natural gas production has remained at an all time high over the last few months with a little over 8 BCF in the NE and over 17 BCF in the US overall.

5 Competition is alive and well in the natural gas industry Connections for America s Energy 16 16 NE Pipeline Projects Competing northeast pipeline expansion projects are nothing new. Just like with Twin Movies its not uncommon to have similar projects proposed at the same time. The not in my backyard philosophy works to create liquidity for potential shippers, gathering systems and producers with ties to the projects, and markets with load obligations at the burner tip. Competition is alive and well in the natural gas industry Connections for America s Energy North-South Expansion Marc I Expansion Marc II Expansion Seneca Lake Expansion Gallery II Crestwood Business Development 17 Edmund Knolle VP Business Development, Natural Gas Business Unit Crestwood Equity Partners LP Crestwood Midstream Partners LP 700 Louisiana Street, Suite 2550 Houston, TX 77002 P: 832-519-2282 C: 713-818-2195 Connections for America s Energy 18 North-South Expansion 1.

6 Northeast Pennsylvania Connector (NS-1 compressor station expansion) increases Millennium delivery capacity by 110 MMcfd oAnticipated in-service date of Dec-2014 oPrecedent agreements executed under new rate schedule FTS-2 (point-to-point) oWorking with Millennium to increase our interconnect to 850 MMcfd additional new gathering lateral and additional receipt points to accommodate growing Susquehanna production Lateral loop evaluating looping of North Lateral (20 ) to accommodate further producer interest in deliveries into Millennium Pipeline CNYOG Expansions NS-1 Compressor Sta. NS Lateral/Millennium Interconnect Connections for America s Energy Presentation Title 19 MARC I Expansion interest in new MARC I receipt point at Wilmot to accommodate growing production on Access system evaluating related expansion of Transco meter up to Bcfd (additional 380 MMcfd) authority project initial in-service date as early as July 2015, ramping up through the end of 2015.

7 MARC I FT will be provided under rate schedule FTS-2. CNYOG Expansions (cont.) MARC I/Transco Meter Wilmot Receipt Pt. Connections for America s Energy 20 CNYOG MARC II Pipeline, 30 mi. (proposed) PennEast Pipeline, 105 mi (proposed) CNYOG Expansions (cont.) 24 30 30 MARC II Expansion Non Binding Open Season Opportunity: To provide firm baseload supply to 1 Bcfd of end-user demand on the proposed PennEast Pipeline CNYOG currently moves Bcfd of natural gas per day CNYOG supply volumes expected to increase to Bcf per day by 2017-18 FERC 7c Project In-service late 2017 Base case project design: Bcfd Receipt Points: All CNYOG points Delivery Points: PennEast and Transco in Luzerne Co., PA Indicative rates Discounted reservation rate subject to volume, final capital estimates & outcome of capex risk sharing w/ shippers Recourse commodity rates, power, fuel use, and loss 10 year minimum primary contract term CNYOG MARC I Pipeline Connections for America s Energy 21 New Firm Rate Schedule FTS-2 (CNYOG) FTS-2 is a traditional point-to-point service on North Lateral, South Lateral and MARC I facilities FTS-2 point-to-point service will allow us to increase system utilization and efficiency FERC approved July 28, 2014 Scheduling priority for firm service nominations.

8 From a primary Point of Receipt to a primary Point of Delivery using secondary Points in the direction of flow and overlapping the Primary Path other firm services using a secondary Point of Delivery and/or Receipt oFTS-2 out-of-path nominations must be within the service s rate zone (NS or MARC I) New Service Presentation Title Connections for America s Energy Presentation Title 22 Seneca Lake Storage Expansion: Seneca Lake Storage, Gallery II Certificate issued for Seneca Lake Gallery II expansion ( Bcf of high-deliverability, multi-cycle storage) Non-binding open season Winter 2014 Arlington Storage Expansions Seneca Lake Working Gas: Bcf Certificated expansion: Bcf Connections with Dominion and Millennium Connections for America s Energy Tracy Halleck Director, Northeast Marketing Crestwood Midstream Partners LP 700 Louisiana Street, Suite 2550 Houston, TX 77002 P: 713-380-3024 C: 281-352-6280 AIM: tracyhalleck 23 THANKS SO MUCH FOR YOUR TIME I m here until Thursday, try the Veal!

9 ! Wes Deskin Director, NE Asset Optimization Crestwood Midstream Partners LP 700 Louisiana Street, Suite 2550 Houston, TX 77002 P: 832-519-2252 C: 832-594-4406 AIM & Email.