CEO Letter

To Our Stakeholders,

At Crestwood, we are embarking on an exciting time in the growth of our company and the growth of sustainability across the midstream infrastructure sector. As a MLP midstream company leading this charge into a more sustainable future, connections are at the heart of our success. Not only do we connect upstream exploration and production companies with the downstream industry, gas utilities and industrial users, we also make connections to be a strong partner with our communities, investors, employees, and industry collaborators. It is through these connections that Crestwood is able to grow; creating long-term value for our stakeholders, and embarking on our journey towards a sustainable future. We look forward to sharing our journey with you in our inaugural sustainability report, Growing Through Connections.

Our operating principles set the foundation for our corporate culture. We strive to be safe, responsible and a good neighbor. Everything we do is guided by these principles:

  1. Design, construct and operate pipelines and facilities in a safe, reliable and responsible way;
  2. Provide customers with the highest level of service;
  3. Conduct operations in a manner that protects natural & cultural resources;
  4. Work to reduce our operational footprint; and
  5. Engage and partner with local communities where we operate

These principles embody the way that Crestwood has embarked on our sustainability journey, as can be seen in our Sustainability Strategy, which was initiated by our Board of Directors in 2018. We have developed a three-year strategy to ensure a full corporate commitment to a long-term and strategic view of sustainability. In 2018, we created an internal steering committee led by senior leadership and have conducted a materiality assessment with the help of a third party to identify the key topics our inaugural report should address.

Safety performance is the foremost of these topics. 

Our goal is zero incidents and we have strived in 2018 to strengthen the management systems that keep our people safe, including enhancing our process of sharing the lessons learned from incidents and near-misses.

The same principle of continuous improvement applies to our relationships with the communities where we operate. This year we facilitated twenty-two emergency response training exercises with first responders in the field – more than ever before. I am also pleased to announce that over the past two years we have donated over $2 million in the communities we operate focused on education and healthcare needs.

We firmly believe that our commitment to managing environmental, social and governance risks drives value for our investors. Crestwood was a leader in eliminating incentive distribution rights, maintaining financial discipline to lower leverage, and self-funding our growth capital program to maximize investor returns.  This strategy has positioned Crestwood to outperform its peer group for two consecutive years and positions the company to generate significant distributable cash flow per unit growth for the next three years.

This is Crestwood’s inaugural sustainability report and charts the beginning of our sustainability journey. In 2018, we have taken steps to identify our material sustainability issues, and the key risks and opportunities for our business. We have put robust governance structures in place, including a Board of Directors Sustainability Committee, chaired by Janeen S. Judah, our first female Director. We are proud of what we have achieved so far and have set ambitious goals for Crestwood as we continue on the path to a sustainable future.

As we continue Growing Through Connections, we know our success rests with the trust of our stakeholders. We hope you will continue to share your thoughts and ideas with us. Please let us know how we are doing through the survey that you will find in our online sustainability report.

Sincerely,

Bob Phillips
Chairman, President and Chief Executive Officer