Crestwood Closes Previously Announced Buy-In Option with Shell Midstream Partners in the Delaware Basin

Crestwood Equity Partners LP (NYSE: CEQP) (“Crestwood” or “CEQP”)
announced today the closing of the previously announced equity option
agreement with Shell Midstream Partners, L.P. (NYSE:SHLX)(“Shell
Midstream”), a master limited partnership formed by Royal Dutch Shell
plc (“Shell”), to purchase a 50% equity interest in Crestwood Permian
Basin LLC which owns the Nautilus gas gathering system. The other 50%
equity interest continues to be owned by Crestwood Permian Basin
Holdings LLC (“CPJV”). The Nautilus system gathers the majority of
Shell’s operated Delaware Basin gas under a 20-year tiered, fixed-fee
contract.

Robert G. Phillips, Chairman, President and Chief Executive Officer of
Crestwood’s general partner, commented, “We are pleased to begin our
partnership with Shell Midstream in the Delaware Basin. Crestwood
expects to use the proceeds to reinvest in on-going accretive growth
projects and reduce borrowings under our revolving credit facility.”

About Crestwood Permian Basin Holdings LLC

Crestwood Permian Basin Holdings LLC (“CPJV”) is a 50%/50% joint venture
between Crestwood Equity Partners LP and First Reserve, a leading global
private equity investment firm exclusively focused on energy, focused on
developing, owning and operating midstream infrastructure in the
Delaware Basin.

About First Reserve

First Reserve is a leading global private equity investment firm
exclusively focused on energy. With nearly 35 years of industry insight,
investment expertise and operational excellence, the Firm has cultivated
an enduring network of global relationships and raised approximately USD
$31 billion of aggregate capital since inception. First Reserve has
completed over 600 transactions (including platform investments and
add-on acquisitions), creating several notable energy companies
throughout the Firm’s history. Its portfolio companies operate on six
continents, spanning the energy spectrum from upstream oil and gas to
midstream and downstream, including resources, equipment and services,
and associated infrastructure. Visit us at www.firstreserve.com
for more information.

About Crestwood Equity Partners LP

Houston, Texas, based Crestwood Equity Partners LP (NYSE: CEQP) is a
master limited partnership that owns and operates midstream businesses
in multiple unconventional shale resource plays across the United
States. Crestwood is engaged in the gathering, processing, treating,
compression, storage and transportation of natural gas; storage,
transportation, terminalling, and marketing of NGLs; and gathering,
storage, terminalling and marketing of crude oil.

Forward Looking Statements

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

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