Crestwood Equity Partners LP (NYSE: CEQP) is a publicly traded master limited partnership that owns and operates midstream assets located primarily in the Bakken Shale, Powder River Basin, Delaware Basin, Marcellus Shale, Barnett Shale, and Fayetteville Shale.
We generated total operating revenues of approximately $3.7 billion in 2018 and had 849 employees at December 31, 2018. As described in our 2018 Form 10-K, Crestwood conducts business through three main business segments: Gathering & Processing, Storage & Transportation, and Marketing, Supply & Logistics. Across these segments, Crestwood is engaged in the gathering, processing, treating, compression, storage, and transportation of natural gas; storage, transportation, terminalling, and marketing of natural gas liquids (NGLs); gathering, storage, transportation, terminalling, and marketing of crude oil; and gathering and disposal of produced water. For more information about our products and current projects, see Operations.
2019E Segment EBITDA Mix
Gathering & Processing
Storage & Transportation
Marketing, Supply & Logistics
Our goal is to create long-term value for our unitholders by delivering increasing distributable cash flow (DCF) through organic expansion, development projects and acquisitions, while at the same time ensuring the ongoing stability of our business. We aim to provide the highest quality of customer service while maintaining focus on safety, compliance and the environment.
In 2018, Crestwood’s successful execution of our business strategy was based on a commitment to project execution, capital discipline, and operational optimization and efficiency.
Throughout the year, Crestwood successfully placed into service approximately 60 projects equating to $346 MM in growth capital that will provide our customers enhanced midstream services and flow assurance to support increased development activity. In the Delaware Basin, we placed the Orla processing plant into service, acquired an undivided interest in the EPIC Y-Grade Pipeline, and secured a favorable transportation and fractionation agreement for our Permian producers to access Gulf Coast markets. In the Bakken, we completed debottlenecking projects to alleviate gathering constraints for crude oil, natural gas, and produced water. In the Powder River Basin, we began the expansion of the Bucking Horse and Jackalope gathering and processing assets to meet the demand of accelerated producer development activity. Solid execution by our project management team resulted in multiple projects going into service without any major safety or environmental incidents, on time and on budget.
To maximize project returns, Crestwood remains committed to maintaining discipline on identifying and financing all capital investment opportunities. We maintained our annual distribution at $2.40 per unit and funded our capital program utilizing excess cash flow, borrowings on our revolver and joint-venture partners. A disciplined approach to capital investment and funding will result in continued financial strength as we execute our business strategy.
Operational Optimization and Efficiency
Crestwood benefits from a balanced asset portfolio that offers cash flow diversity and stability throughout varying commodity cycles. While capital investments support increasing customer activity in our high growth basins, Crestwood is extremely focused on optimizing and increasing efficiencies in our non-core mature basins. In 2018, we successfully reduced operating and maintenance expenses in our Fayetteville asset by over 20 percent through operational improvements. Our dedicated teams in these basins continually find opportunities to optimize their productivity and minimize expenses.
Throughout the year, Crestwood successfully placed into service approximately 60 projects equating to $346 MM in growth capital that will provide our customers enhanced midstream services and flow assurance to support increased development activity.
Looking into 2019, our business strategy will remain focused on delivering long-term value for our unitholders. Each component of our strategy was vital to our ability to exceed our financial and operational goals in 2018. This strategy, along with our focus on growing through connections, positions Crestwood to pursue organic investment projects in high-quality growth basins, and combine that with capital efficiency and financial discipline to generate DCF per unit growth.
Sustainability Strategy and Governance