Crestwood Announces Fourth Quarter 2022 Financial and Operating Results, the Divestiture of Tres Palacios for $335 Million, and Provides 2023 Guidance and Outlook
Crestwood Equity Partners reported a full-year 2022 net income of $72.5 million and Adjusted EBITDA of $762.1 million, a 27% increase year-over-year. This growth was driven by expanded operations in the Williston and Delaware Basins, despite challenges from extreme weather and delays in producer development. The divestiture of Tres Palacios for $335 million will bolster debt reduction efforts. For 2023, the company anticipates Adjusted EBITDA between $780 million and $860 million, with capital investments of $135 million to $155 million. The focus remains on operational execution, enhancing balance sheet strength, and continuing integration of acquired assets.
- Full-year 2022 Adjusted EBITDA increased by 27% to $762.1 million.
- Successful divestiture of Tres Palacios for $335 million, yielding $167.5 million for debt reduction.
- Fourth quarter 2022 distributable cash flow increased by 22% year-over-year to $110.8 million.
- 2023 forecasts Adjusted EBITDA growth of 8% year-over-year at the midpoint.
- Gathering and processing segments reported significant increases in volume, particularly in the Williston and Delaware Basins.
- Fourth quarter 2022 net income declined to $53.9 million from $78.6 million in Q4 2021.
- Severe weather events and operational delays impacted last year's financial results.
Delivered full-year 2022 net income of
Divestiture of
Expect 2023 Adjusted EBITDA of
2023 capital projects to include gathering system expansions and new supply connections from recent acquisitions; free cash flow allocation priorities focus on debt paydown and enhancing balance sheet strength in 2023
Fourth Quarter and Full-Year 2022 Financial Highlights1
-
Fourth quarter 2022 net income of
, compared to net income of$53.9 million in fourth quarter 2021; full-year 2022 net income of$78.6 million , compared to a net loss of$72.5 million in 2021$37.4 million -
Fourth quarter 2022 Adjusted EBITDA of
, compared to$200.3 million in the fourth quarter 2021, an increase of$149.1 million 34% year-over-year; full-year Adjusted EBITDA of , compared to$762.1 million in 2021, an increase of$600.1 million 27% -
Fourth quarter 2022 distributable cash flow (“DCF”) to common unitholders of
, compared to$110.8 million in the fourth quarter 2021, an increase of$91.1 million 22% year-over-year, resulting in a coverage ratio of 1.6x -
Ended the quarter with approximately
of total debt, including$3.4 billion drawn on the revolving credit facilities, resulting in a consolidated leverage ratio of 4.2x (4.0x pro forma for the sale of$1.1 billion Tres Palacios ) -
Announced fourth quarter 2022 cash distribution of
per common unit, or$0.65 5 per common unit on an annualized basis, an approximate$2.62 5% increase year-over-year, payable onFebruary 14, 2023 , to unitholders of record as ofFebruary 7, 2023
Recent Developments
-
On
January 17, 2023 ,Crestwood Midstream Partners LP (“CMLP”), a wholly owned subsidiary of Crestwood, issued of$600 million 7.375% senior unsecured notes due 2031. Crestwood used the proceeds of the issuance to repay borrowings on the corporate revolving credit facility and to repay and terminate theCrestwood Permian Basin Holdings LLC (“CPJV”) revolving credit facility. Pro forma for the senior notes issuance, Crestwood has approximately drawn on its$525 million corporate revolving credit facility.$1.75 billion -
On
February 20, 2023 , Crestwood and Brookfield Infrastructure (“Brookfield”) entered into an agreement to sellTres Palacios Gas Storage (“Tres Palacios”) for . Crestwood will receive approximately$335 million for its$168 million 50% interest in the storage facility and plans to use all sale proceeds to reduce borrowings on its revolving credit facility. The transaction is expected to close in the second quarter 2023 subject to customary regulatory approvals.
Management Commentary
“2022 was another transformational year for Crestwood as we continued to realign our midstream portfolio by expanding in the
Fourth Quarter 2022 Results and 2023 Outlook
Gathering and Processing North
Gathering and Processing North segment EBITDA totaled
During the fourth quarter 2022, crude oil gathering volumes averaged 76 MBbls/d, natural gas gathering volumes averaged 243 MMcf/d, natural gas processing volumes averaged 275 MMcf/d, and produced water gathering volumes averaged 152 MBbls/d. Natural gas gathering, natural gas processing, and produced water gathering volumes increased year-over-year by
In 2023, Crestwood expects to connect 115 to 125 wells across the Arrow and Rough Rider systems based on current producer drilling and completion schedules. Crestwood’s capital investments in the
During the fourth quarter 2022, gathering volumes averaged 106 MMcf/d and natural gas processing volumes averaged 104 MMcf/d. Natural gas gathering and processing volumes increased year-over-year by
Gathering & Processing South
Gathering and Processing South segment EBITDA totaled
During the fourth quarter 2022, natural gas gathering volumes averaged 504 MMcf/d, natural gas processing volumes averaged 408 MMcf/d, produced water gathering volumes averaged 153 MBbls/d, and crude oil gathering volumes averaged 21 MBbls/d. Natural gas gathering and natural gas processing volumes increased year-over-year by
In 2023, Crestwood expects to connect 120 to 130 wells across its gathering systems in the
Storage & Logistics
Storage & Logistics segment EBITDA totaled
2023 Financial Guidance
Crestwood's 2023 guidance reflects the general business updates noted above and the most recent development plans from customers. In addition, the guidance range assumes the divestiture of Tres Palacios closes in
-
Net income of
to$310 million $390 million -
Adjusted EBITDA of
to$780 million $860 million - Contribution by operating segment is set forth below:
$US millions |
|
Adj. |
||
Operating Segment |
|
Low |
|
High |
Gathering & Processing North |
|
|
- |
|
Gathering & Processing South |
|
170 |
- |
190 |
Storage & Logistics |
|
100 |
- |
110 |
Less: Corporate G&A |
|
(60) |
|
(60) |
FY 2023 Totals |
|
|
- |
|
-
Distributable cash flow available to common unitholders of
to$430 million $510 million -
Free cash flow after distributions of
to$10 million $90 million -
Full-year coverage ratio of 1.6x to 1.8x based on annual distribution of
per common unit$2.62 - Year-end 2023 leverage ratio between 3.7x and 4.1x
-
Growth capital spending in the range of
to$135 million $155 million -
Maintenance capital spending in the range of
to$25 million $30 million
Strategic Update and Capital Allocation Priorities
In 2023, Crestwood has shifted its focus from regional consolidation to maximizing throughput on available capacity across its expanded gathering and processing systems while reducing costs and capital requirements. Crestwood expects positive free cash flow after distributions of approximately
Capitalization and Liquidity Update
Crestwood invested approximately
On
Crestwood currently has 71.3 million preferred units outstanding (par value of
Sustainability Program Update
In
Upcoming Conference Participation
Crestwood’s management will participate in the following upcoming investor conferences. Prior to the start of each conference, new presentation materials may be posted to the Investors section of Crestwood’s website at www.crestwoodlp.com.
-
J.P. Morgan Global High Yield & Leveraged Finance Conference ,Miami, FL ,March 6 - 8, 2023 -
51st Annual
Scotia Howard Weil Energy Conference ,Miami, FL ,March 6 - 8, 2023
2022 K-1 Tax Packages
Crestwood’s K-1 tax packages are expected to be made available online and mailed by
2022 Annual Report Form 10-K
Crestwood plans to file its annual report on Form 10-K with the
Earnings Conference Call Schedule
Management will host a conference call for investors and analysts of Crestwood today at
Non-GAAP Financial Measures
Adjusted EBITDA, distributable cash flow and free cash flow are non-GAAP financial measures. The accompanying schedules of this news release provide reconciliations of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP. Our non-GAAP financial measures should not be considered as alternatives to GAAP measures such as net income or operating income or any other GAAP measure of liquidity or financial performance.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the
About
1 Please see non-GAAP reconciliation tables included at the end of the press release.
Consolidated Statements of Operations (in millions, except per unit data) (unaudited) |
|||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues |
$ |
1,402.9 |
|
|
$ |
1,380.4 |
|
|
$ |
6,000.7 |
|
|
$ |
4,569.0 |
|
Costs of products/services sold |
|
1,132.7 |
|
|
|
1,133.6 |
|
|
|
4,997.1 |
|
|
|
3,843.9 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses and other: |
|
|
|
|
|
|
|
||||||||
Operations and maintenance |
|
52.1 |
|
|
|
30.8 |
|
|
|
196.1 |
|
|
|
121.0 |
|
General and administrative |
|
26.6 |
|
|
|
30.2 |
|
|
|
130.4 |
|
|
|
97.6 |
|
Depreciation, amortization and accretion |
|
86.6 |
|
|
|
61.6 |
|
|
|
328.9 |
|
|
|
244.2 |
|
Loss on long-lived assets, net |
|
0.8 |
|
|
|
20.0 |
|
|
|
187.7 |
|
|
|
39.6 |
|
Gain on acquisition |
|
— |
|
|
|
— |
|
|
|
(75.3 |
) |
|
|
— |
|
|
|
166.1 |
|
|
|
142.6 |
|
|
|
767.8 |
|
|
|
502.4 |
|
Operating income |
|
104.1 |
|
|
|
104.2 |
|
|
|
235.8 |
|
|
|
222.7 |
|
Earnings (loss) from unconsolidated affiliates, net |
|
3.5 |
|
|
|
5.5 |
|
|
|
15.7 |
|
|
|
(120.4 |
) |
Interest and debt expense, net |
|
(53.6 |
) |
|
|
(30.1 |
) |
|
|
(177.4 |
) |
|
|
(132.1 |
) |
Loss on modification/extinguishment of debt |
|
— |
|
|
|
(0.8 |
) |
|
|
— |
|
|
|
(7.5 |
) |
Other income (expense), net |
|
0.1 |
|
|
|
(0.1 |
) |
|
|
0.3 |
|
|
|
0.1 |
|
Income (loss) before income taxes |
|
54.1 |
|
|
|
78.7 |
|
|
|
74.4 |
|
|
|
(37.2 |
) |
Provision for income taxes |
|
(0.2 |
) |
|
|
(0.1 |
) |
|
|
(1.9 |
) |
|
|
(0.2 |
) |
Net income (loss) |
|
53.9 |
|
|
|
78.6 |
|
|
|
72.5 |
|
|
|
(37.4 |
) |
Net income attributable to non-controlling partner |
|
10.4 |
|
|
|
10.4 |
|
|
|
41.2 |
|
|
|
41.1 |
|
Net income (loss) attributable to |
|
43.5 |
|
|
|
68.2 |
|
|
|
31.3 |
|
|
|
(78.5 |
) |
Net income attributable to preferred units |
|
15.1 |
|
|
|
15.1 |
|
|
|
60.1 |
|
|
|
60.1 |
|
Net income (loss) attributable to partners |
$ |
28.4 |
|
|
$ |
53.1 |
|
|
$ |
(28.8 |
) |
|
$ |
(138.6 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per limited partner unit: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.27 |
|
|
$ |
0.84 |
|
|
$ |
(0.29 |
) |
|
$ |
(2.11 |
) |
Diluted |
$ |
0.26 |
|
|
$ |
0.79 |
|
|
$ |
(0.29 |
) |
|
$ |
(2.11 |
) |
Selected Balance Sheet Data (in millions) (unaudited) |
|||||
|
|
||||
|
2022 |
|
2021 |
||
Cash |
$ |
7.5 |
|
$ |
13.3 |
|
|
|
|
||
Outstanding debt: |
|
|
|
||
Revolving Credit Facilities |
$ |
1,129.1 |
|
$ |
282.0 |
Senior Notes |
|
2,250.0 |
|
|
1,800.0 |
Other |
|
26.7 |
|
|
0.2 |
Subtotal |
|
3,405.8 |
|
|
2,082.2 |
Less: deferred financing costs, net |
|
27.5 |
|
|
29.9 |
Total debt |
$ |
3,378.3 |
|
$ |
2,052.3 |
|
|
|
|
||
Partners' capital |
|
|
|
||
Total partners' capital |
$ |
1,907.2 |
|
$ |
1,099.6 |
Common units outstanding |
|
104.6 |
|
|
63.0 |
Reconciliation of Non-GAAP Financial Measures (in millions) (unaudited) |
|||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net Income (Loss) to Adjusted EBITDA |
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
53.9 |
|
|
$ |
78.6 |
|
|
$ |
72.5 |
|
|
$ |
(37.4 |
) |
Interest and debt expense, net |
|
53.6 |
|
|
|
30.1 |
|
|
|
177.4 |
|
|
|
132.1 |
|
Loss on modification/extinguishment of debt |
|
— |
|
|
|
0.8 |
|
|
|
— |
|
|
|
7.5 |
|
Provision for income taxes |
|
0.2 |
|
|
|
0.1 |
|
|
|
1.9 |
|
|
|
0.2 |
|
Depreciation, amortization and accretion |
|
86.6 |
|
|
|
61.6 |
|
|
|
328.9 |
|
|
|
244.2 |
|
EBITDA(a) |
$ |
194.3 |
|
|
$ |
171.2 |
|
|
$ |
580.7 |
|
|
$ |
346.6 |
|
Significant items impacting EBITDA: |
|
|
|
|
|
|
|
||||||||
Unit-based compensation charges |
|
10.4 |
|
|
|
12.1 |
|
|
|
37.2 |
|
|
|
34.9 |
|
Loss on long-lived assets, net |
|
0.8 |
|
|
|
20.0 |
|
|
|
187.7 |
|
|
|
39.6 |
|
Gain on acquisition |
|
— |
|
|
|
— |
|
|
|
(75.3 |
) |
|
|
— |
|
(Earnings) loss from unconsolidated affiliates, net |
|
(3.5 |
) |
|
|
(5.5 |
) |
|
|
(15.7 |
) |
|
|
120.4 |
|
Adjusted EBITDA from unconsolidated affiliates, net |
|
5.8 |
|
|
|
10.5 |
|
|
|
30.0 |
|
|
|
67.0 |
|
Change in fair value of commodity inventory-related derivative contracts |
|
(9.8 |
) |
|
|
(62.4 |
) |
|
|
(14.4 |
) |
|
|
(13.5 |
) |
Significant transaction and environmental related costs and other items |
|
2.3 |
|
|
|
3.2 |
|
|
|
31.9 |
|
|
|
5.1 |
|
Adjusted EBITDA(a) |
$ |
200.3 |
|
|
$ |
149.1 |
|
|
$ |
762.1 |
|
|
$ |
600.1 |
|
|
|
|
|
|
|
|
|
||||||||
Distributable Cash Flow(b) |
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA(a) |
$ |
200.3 |
|
|
$ |
149.1 |
|
|
$ |
762.1 |
|
|
$ |
600.1 |
|
Cash interest expense(c) |
|
(54.2 |
) |
|
|
(28.6 |
) |
|
|
(178.2 |
) |
|
|
(125.9 |
) |
Maintenance capital expenditures(d) |
|
(13.5 |
) |
|
|
(6.2 |
) |
|
|
(28.7 |
) |
|
|
(19.3 |
) |
Adjusted EBITDA from unconsolidated affiliates, net |
|
(5.8 |
) |
|
|
(10.5 |
) |
|
|
(30.0 |
) |
|
|
(67.0 |
) |
Distributable cash flow from unconsolidated affiliates |
|
5.6 |
|
|
|
9.3 |
|
|
|
28.0 |
|
|
|
62.6 |
|
PRB cash received in excess of recognized revenues(e) |
|
4.1 |
|
|
|
3.5 |
|
|
|
16.8 |
|
|
|
22.1 |
|
Provision for income taxes |
|
(0.2 |
) |
|
|
(0.1 |
) |
|
|
(1.9 |
) |
|
|
(0.2 |
) |
Distributable cash flow attributable to CEQP |
|
136.3 |
|
|
|
116.5 |
|
|
|
568.1 |
|
|
|
472.4 |
|
Distributions to preferred |
|
(15.1 |
) |
|
|
(15.1 |
) |
|
|
(60.1 |
) |
|
|
(60.1 |
) |
Distributions to Niobrara preferred |
|
(10.4 |
) |
|
|
(10.3 |
) |
|
|
(41.4 |
) |
|
|
(41.2 |
) |
Distributable cash flow attributable to CEQP common |
$ |
110.8 |
|
|
$ |
91.1 |
|
|
$ |
466.6 |
|
|
$ |
371.1 |
|
(a) |
EBITDA is defined as income before income taxes, plus debt-related costs (interest and debt expense, net, and gain (loss) on modification/extinguishment of debt) and depreciation, amortization and accretion expense. Adjusted EBITDA considers the adjusted earnings impact of our unconsolidated affiliates by adjusting our equity earnings or losses from our unconsolidated affiliates to reflect our proportionate share (based on the distribution percentage) of their EBITDA, excluding gains and losses on long-lived assets and other impairments. Adjusted EBITDA also considers the impact of certain significant items, such as unit-based compensation charges, gains or losses and impairments 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 are 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 |
(b) |
Distributable cash flow is defined as Adjusted EBITDA, adjusted for cash interest expense, maintenance capital expenditures, income taxes, the cash received from our |
(c) |
Cash interest expense less amortization of deferred financing costs. |
(d) |
Maintenance capital expenditures are defined as those capital expenditures which do not increase operating capacity or revenues from existing levels. |
(e) |
Cash received from customers of our |
Reconciliation of Non-GAAP Financial Measures (in millions) (unaudited) |
|||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Operating Cash Flows to Adjusted EBITDA |
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities |
$ |
161.9 |
|
|
$ |
53.8 |
|
|
$ |
439.2 |
|
|
$ |
426.7 |
|
Net changes in operating assets and liabilities |
|
(9.6 |
) |
|
|
121.5 |
|
|
|
114.3 |
|
|
|
6.7 |
|
Amortization of debt-related deferred costs |
|
(0.5 |
) |
|
|
(1.6 |
) |
|
|
(2.2 |
) |
|
|
(6.7 |
) |
Interest and debt expense, net |
|
53.6 |
|
|
|
30.1 |
|
|
|
177.4 |
|
|
|
132.1 |
|
Unit-based compensation charges |
|
(10.4 |
) |
|
|
(12.1 |
) |
|
|
(37.2 |
) |
|
|
(34.9 |
) |
Loss on long-lived assets, net |
|
(0.8 |
) |
|
|
(20.0 |
) |
|
|
(187.7 |
) |
|
|
(39.6 |
) |
Gain on acquisition |
|
— |
|
|
|
— |
|
|
|
75.3 |
|
|
|
— |
|
(Earnings) loss from unconsolidated affiliates, net, adjusted for cash distributions received |
|
(0.2 |
) |
|
|
(0.5 |
) |
|
|
0.7 |
|
|
|
(138.0 |
) |
Deferred income taxes |
|
— |
|
|
|
— |
|
|
|
(1.1 |
) |
|
|
0.4 |
|
Provision for income taxes |
|
0.2 |
|
|
|
0.1 |
|
|
|
1.9 |
|
|
|
0.2 |
|
Other non-cash income (expense) |
|
0.1 |
|
|
|
(0.1 |
) |
|
|
0.1 |
|
|
|
(0.3 |
) |
EBITDA(a) |
$ |
194.3 |
|
|
$ |
171.2 |
|
|
$ |
580.7 |
|
|
$ |
346.6 |
|
Unit-based compensation charges |
|
10.4 |
|
|
|
12.1 |
|
|
|
37.2 |
|
|
|
34.9 |
|
Loss on long-lived assets, net |
|
0.8 |
|
|
|
20.0 |
|
|
|
187.7 |
|
|
|
39.6 |
|
Gain on acquisition |
|
— |
|
|
|
— |
|
|
|
(75.3 |
) |
|
|
— |
|
(Earnings) loss from unconsolidated affiliates, net |
|
(3.5 |
) |
|
|
(5.5 |
) |
|
|
(15.7 |
) |
|
|
120.4 |
|
Adjusted EBITDA from unconsolidated affiliates, net |
|
5.8 |
|
|
|
10.5 |
|
|
|
30.0 |
|
|
|
67.0 |
|
Change in fair value of commodity inventory-related derivative contracts |
|
(9.8 |
) |
|
|
(62.4 |
) |
|
|
(14.4 |
) |
|
|
(13.5 |
) |
Significant transaction and environmental related costs and other items |
|
2.3 |
|
|
|
3.2 |
|
|
|
31.9 |
|
|
|
5.1 |
|
Adjusted EBITDA(a) |
$ |
200.3 |
|
|
$ |
149.1 |
|
|
$ |
762.1 |
|
|
$ |
600.1 |
|
|
|
|
|
|
|
|
|
||||||||
Distributable Cash Flow (b) |
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA (a) |
$ |
200.3 |
|
|
$ |
149.1 |
|
|
$ |
762.1 |
|
|
$ |
600.1 |
|
Cash interest expense (c) |
|
(54.2 |
) |
|
|
(28.6 |
) |
|
|
(178.2 |
) |
|
|
(125.9 |
) |
Maintenance capital expenditures (d) |
|
(13.5 |
) |
|
|
(6.2 |
) |
|
|
(28.7 |
) |
|
|
(19.3 |
) |
Adjusted EBITDA from unconsolidated affiliates, net |
|
(5.8 |
) |
|
|
(10.5 |
) |
|
|
(30.0 |
) |
|
|
(67.0 |
) |
Distributable cash flow from unconsolidated affiliates |
|
5.6 |
|
|
|
9.3 |
|
|
|
28.0 |
|
|
|
62.6 |
|
PRB cash received in excess of recognized revenues (e) |
|
4.1 |
|
|
|
3.5 |
|
|
|
16.8 |
|
|
|
22.1 |
|
Provision for income taxes |
|
(0.2 |
) |
|
|
(0.1 |
) |
|
|
(1.9 |
) |
|
|
(0.2 |
) |
Distributable cash flow attributable to CEQP |
|
136.3 |
|
|
|
116.5 |
|
|
|
568.1 |
|
|
|
472.4 |
|
Distributions to preferred |
|
(15.1 |
) |
|
|
(15.1 |
) |
|
|
(60.1 |
) |
|
|
(60.1 |
) |
Distributions to Niobrara preferred |
|
(10.4 |
) |
|
|
(10.3 |
) |
|
|
(41.4 |
) |
|
|
(41.2 |
) |
Distributable cash flow attributable to CEQP common |
$ |
110.8 |
|
|
$ |
91.1 |
|
|
$ |
466.6 |
|
|
$ |
371.1 |
|
|
|
|
|
|
|
|
|
||||||||
Free Cash Flow After Distributions (f) |
|
|
|
|
|
|
|
||||||||
Distributable cash flow attributable to CEQP common |
$ |
110.8 |
|
|
$ |
91.1 |
|
|
$ |
466.6 |
|
|
$ |
371.1 |
|
Less: Growth capital expenditures |
|
65.7 |
|
|
|
18.6 |
|
|
|
191.6 |
|
|
|
59.5 |
|
Less: Distributions to common unitholders(g) |
|
68.9 |
|
|
|
39.7 |
|
|
|
265.8 |
|
|
|
157.6 |
|
Free cash flow after distributions |
$ |
(23.8 |
) |
|
$ |
32.8 |
|
|
$ |
9.2 |
|
|
$ |
154.0 |
|
(a) |
EBITDA is defined as income before income taxes, plus debt-related costs (interest and debt expense, net, and gain (loss) on modification/extinguishment of debt) and depreciation, amortization and accretion expense. Adjusted EBITDA considers the adjusted earnings impact of our unconsolidated affiliates by adjusting our equity earnings or losses from our unconsolidated affiliates to reflect our proportionate share (based on the distribution percentage) of their EBITDA, excluding gains and losses on long-lived assets and other impairments. Adjusted EBITDA also considers the impact of certain significant items, such as unit-based compensation charges, gains or losses and impairments 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 are 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 |
(b) |
Distributable cash flow is defined as Adjusted EBITDA, adjusted for cash interest expense, maintenance capital expenditures, income taxes, the cash received from our |
(c) |
Cash interest expense less amortization of deferred financing costs. |
(d) |
Maintenance capital expenditures are defined as those capital expenditures which do not increase operating capacity or revenues from existing levels. |
(e) |
Cash received from customers of our |
(f) |
Free cash flow after distributions is defined as distributable cash flow attributable to common unitholders less growth capital expenditures and distributions to common unitholders. Free cash flow after distributions should not be considered an alternative to cash flows from operating activities or any other measure of liquidity calculated in accordance with |
(g) |
The year ended |
Segment Data (in millions) (unaudited) |
|||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Gathering and Processing North |
|
|
|
|
|
|
|
||||||||
Revenues |
$ |
329.5 |
|
|
$ |
296.0 |
|
|
$ |
1,537.9 |
|
|
$ |
1,034.0 |
|
Costs of product/services sold |
|
162.0 |
|
|
|
166.8 |
|
|
|
848.6 |
|
|
|
553.2 |
|
Operations and maintenance expense |
|
26.7 |
|
|
|
12.9 |
|
|
|
105.3 |
|
|
|
51.1 |
|
Gain on long-lived assets, net |
|
— |
|
|
|
0.2 |
|
|
|
— |
|
|
|
0.4 |
|
EBITDA |
$ |
140.8 |
|
|
$ |
116.5 |
|
|
$ |
584.0 |
|
|
$ |
430.1 |
|
|
|
|
|
|
|
|
|
||||||||
Gathering and Processing South |
|
|
|
|
|
|
|
||||||||
Revenues |
$ |
207.7 |
|
|
$ |
29.9 |
|
|
$ |
588.9 |
|
|
$ |
105.9 |
|
Costs of product/services sold |
|
149.9 |
|
|
|
0.1 |
|
|
|
399.5 |
|
|
|
0.9 |
|
Operations and maintenance expense |
|
14.4 |
|
|
|
5.5 |
|
|
|
43.0 |
|
|
|
22.9 |
|
Loss on long-lived assets, net |
|
(1.1 |
) |
|
|
(20.7 |
) |
|
|
(183.9 |
) |
|
|
(40.6 |
) |
Gain on acquisition |
|
— |
|
|
|
— |
|
|
|
75.3 |
|
|
|
— |
|
Earnings from unconsolidated affiliates, net |
|
1.7 |
|
|
|
5.2 |
|
|
|
11.1 |
|
|
|
9.6 |
|
EBITDA |
$ |
44.0 |
|
|
$ |
8.8 |
|
|
$ |
48.9 |
|
|
$ |
51.1 |
|
|
|
|
|
|
|
|
|
||||||||
Storage and Logistics |
|
|
|
|
|
|
|
||||||||
Revenues |
$ |
865.7 |
|
|
$ |
1,054.5 |
|
|
$ |
3,873.9 |
|
|
$ |
3,429.1 |
|
Costs of product/services sold |
|
820.8 |
|
|
|
966.7 |
|
|
|
3,749.0 |
|
|
|
3,289.8 |
|
Operations and maintenance expense |
|
11.0 |
|
|
|
12.4 |
|
|
|
47.8 |
|
|
|
47.0 |
|
Gain (loss) on long-lived assets, net |
|
— |
|
|
|
0.6 |
|
|
|
(4.1 |
) |
|
|
0.7 |
|
Earnings (loss) from unconsolidated affiliates, net |
|
1.8 |
|
|
|
0.3 |
|
|
|
4.6 |
|
|
|
(130.0 |
) |
EBITDA |
$ |
35.7 |
|
|
$ |
76.3 |
|
|
$ |
77.6 |
|
|
$ |
(37.0 |
) |
|
|
|
|
|
|
|
|
||||||||
Total Segment EBITDA |
$ |
220.5 |
|
|
$ |
201.6 |
|
|
$ |
710.5 |
|
|
$ |
444.2 |
|
Corporate |
|
(26.2 |
) |
|
|
(30.4 |
) |
|
|
(129.8 |
) |
|
|
(97.6 |
) |
EBITDA |
$ |
194.3 |
|
|
$ |
171.2 |
|
|
$ |
580.7 |
|
|
$ |
346.6 |
|
Operating Statistics (unaudited) |
|||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||
Gathering and Processing North |
|
|
|
|
|
|
|
||||
Gas gathering volumes (MMcf/d) |
|
|
|
|
|
|
|
||||
|
243.1 |
|
|
141.1 |
|
|
246.9 |
|
|
139.1 |
|
|
105.9 |
|
|
102.6 |
|
|
106.3 |
|
|
100.7 |
|
Total gas gathering volumes |
349.0 |
|
|
243.7 |
|
|
353.2 |
|
|
239.8 |
|
Processing volumes (MMcf/d) |
|
|
|
|
|
|
|
||||
|
275.4 |
|
|
132.2 |
|
|
279.1 |
|
|
132.4 |
|
|
103.5 |
|
|
99.2 |
|
|
103.2 |
|
|
97.7 |
|
Total processing volumes |
378.9 |
|
|
231.4 |
|
|
382.3 |
|
|
230.1 |
|
|
|
|
|
|
|
|
|
||||
Crude oil gathering volumes (MBbls/d) |
75.9 |
|
|
80.0 |
|
|
78.0 |
|
|
87.7 |
|
Water gathering volumes (MBbls/d) |
151.6 |
|
|
90.7 |
|
|
164.9 |
|
|
86.4 |
|
|
|
|
|
|
|
|
|
||||
Gathering and Processing South |
|
|
|
|
|
|
|
||||
Gas gathering volumes (MMcf/d) |
|
|
|
|
|
|
|
||||
|
504.2 |
|
|
250.5 |
|
|
472.2 |
|
|
228.9 |
|
Marcellus(b) |
203.3 |
|
|
221.4 |
|
|
209.8 |
|
|
227.3 |
|
Barnett(b) |
— |
|
|
228.2 |
|
|
212.9 |
|
|
218.2 |
|
Total gas gathering volumes |
707.5 |
|
|
700.1 |
|
|
894.9 |
|
|
674.4 |
|
Processing volumes (MMcf/d) |
|
|
|
|
|
|
|
||||
|
408.4 |
|
|
111.8 |
|
|
391.8 |
|
|
84.7 |
|
Barnett(b) |
— |
|
|
76.8 |
|
|
70.4 |
|
|
76.4 |
|
Total processing volumes |
408.4 |
|
|
188.6 |
|
|
462.2 |
|
|
161.1 |
|
|
20.5 |
|
|
— |
|
|
21.4 |
|
|
— |
|
|
152.7 |
|
|
17.5 |
|
|
131.3 |
|
|
39.5 |
|
|
|
|
|
|
|
|
|
||||
Storage and Logistics |
|
|
|
|
|
|
|
||||
Tres Palacios Storage - firm contracted capacity (Bcf) (a) |
29.1 |
|
|
28.8 |
|
|
29.0 |
|
|
29.2 |
|
% of operational capacity contracted |
76 |
% |
|
75 |
% |
|
76 |
% |
|
76 |
% |
Firm storage services (MMcf/d) (a) |
212.2 |
|
|
147.9 |
|
|
294.1 |
|
|
271.8 |
|
Interruptible services (MMcf/d) (a) |
227.5 |
|
|
128.9 |
|
|
190.1 |
|
|
91.1 |
|
COLT Hub |
|
|
|
|
|
|
|
||||
Rail loading (MBbls/d) |
12.8 |
|
|
35.8 |
|
|
14.0 |
|
|
43.5 |
|
Outbound pipeline (MBbls/d) (c) |
24.7 |
|
|
18.0 |
|
|
25.0 |
|
|
16.7 |
|
(a) |
Includes our |
(b) |
The Barnett assets and Marcellus assets were sold in |
(c) |
Represents only throughput leaving the terminal. |
Full Year 2023 Adjusted EBITDA, Distributable Cash Flow and Free Cash Flow Guidance Reconciliation of Non-GAAP Financial Measures (in millions) (unaudited) |
|
|
Expected 2023 Range |
|
Low - High |
Net Income Reconciliation |
|
Net income (loss) |
|
Interest and debt expense, net (a) |
225 - 230 |
Depreciation, amortization and accretion |
325 - 335 |
Unit-based compensation charges |
30 - 35 |
Earnings from unconsolidated affiliates |
(130) - (135) |
Adjusted EBITDA from unconsolidated affiliates |
10 - 15 |
Adjusted EBITDA |
|
|
|
Cash interest expense (b) |
(220) - (225) |
Maintenance capital expenditures (c) |
(25) - (30) |
Adjusted EBITDA from unconsolidated affiliates |
(10) - (15) |
Distributable cash flow from unconsolidated affiliates |
9 - 14 |
Cash distributions to preferred unitholders (d) |
(101) |
Distributable cash flow attributable to CEQP (e) |
|
|
|
Cash Flows from Operating Activities Reconciliation |
|
Net cash provided by operating activities, net |
|
Interest and debt expense, net (a) |
225 - 230 |
Adjusted EBITDA from unconsolidated affiliates |
10 - 15 |
Earnings from unconsolidated affiliates |
(130) - (135) |
Amortization of debt-related deferred costs |
(5) - (10) |
Changes in operating assets and liabilities, net |
(5) - (15) |
Adjusted EBITDA |
|
|
|
Cash interest expense (b) |
(220) - (225) |
Maintenance capital expenditures (c) |
(25) - (30) |
Adjusted EBITDA from unconsolidated affiliates |
(10) - (15) |
Distributable cash flow from unconsolidated affiliates |
9 - 14 |
Cash distributions to preferred unitholders (d) |
(101) |
Distributable cash flow attributable to CEQP (e) |
|
|
|
Less: Growth capital expenditures |
135 - 155 |
Less: Distributions to common unitholders |
276 |
Free cash flow after distributions(f) |
|
(a) |
Includes gain (loss) on modification/extinguishment of debt, net |
(b) |
Cash interest expense less amortization of deferred financing costs. |
(c) |
Maintenance capital expenditures are defined as those capital expenditures which do not increase operating capacity or revenues from existing levels. |
(d) |
Includes cash distributions to preferred unitholders and Crestwood Niobrara preferred unitholders. |
(e) |
Distributable cash flow is defined as Adjusted EBITDA, adjusted for cash interest expense, maintenance capital expenditures, income taxes, and our proportionate share of our unconsolidated affiliates' distributable cash flow. Distributable cash flow should not be considered an alternative to cash flows from operating activities or any other measure of financial performance calculated in accordance with generally accepted accounting principles as those items are used to measure operating performance, liquidity, or the ability to service debt obligations. We believe that distributable cash flow provides additional information for evaluating our ability to declare and pay distributions to unitholders. Distributable cash flow, as we define it, may not be comparable to distributable cash flow or similarly titled measures used by other companies. |
(f) |
Free cash flow after distributions is defined as distributable cash flow attributable to common unitholders less growth capital expenditures and distributions to common unitholders. Free cash flow after distributions should not be considered an alternative to cash flows from operating activities or any other measure of liquidity calculated in accordance with generally accepted accounting principles as those items are used to measure liquidity or the ability to service debt obligations. We believe that free cash flow after distributions provides additional information for evaluating our ability to generate cash flow after paying our distributions to common unitholders and paying for our growth capital expenditures. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230220005315/en/
Investor Contacts
andrew.thorington@crestwoolp.com
Vice President, Finance & Investor Relations
rhianna.disch@crestwoodlp.com
Director, Investor Relations
Sustainability and Media Contact
joanne.howard@crestwoodlp.com
Senior Vice President,
Source:
FAQ
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