Discounted Cash Flow (DCF) Analysis Unlevered

Crestwood Equity Partners LP (CEQP)

$26.73

+1.09 (+4.25%)

All numbers are in Millions, Currency in USD

Stock DCF: 118.06 | 26.73 | undervalue

Operating Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	3,654.10	3,181.90	2,254.30	4,569	6,000.70	7,379.95	9,076.23	11,162.39	13,728.05	16,883.43
Revenue (%)
EBITDA	318.80	596.60	315.30	298	539.50	840.93	1,034.21	1,271.92	1,564.28	1,923.82
EBITDA (%)
EBIT	150.10	400.80	77.90	53.80	210.60	366.73	451.03	554.70	682.19	838.99
EBIT (%)
Depreciation	168.70	195.80	237.40	244.20	328.90	474.19	583.18	717.23	882.08	1,084.83
Depreciation (%)

Balance Sheet Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Total Cash	0.90	25.70	14	13.30	7.50	27.59	33.93	41.73	51.33	63.12
Total Cash (%)
Account Receivables	251.50	242.20	262.20	378	432.20	614.03	755.16	928.74	1,142.21	1,404.74
Account Receivables (%)
Inventories	64.60	53.70	89.10	156.50	122.60	190.05	233.74	287.46	353.53	434.79
Inventories (%)
Accounts Payable	213	189.20	160.30	336.50	305.50	462.60	568.93	699.70	860.53	1,058.32
Accounts Payable (%)
Capital Expenditure	-305.50	-455.50	-168.30	-83.20	-229.30	-528.16	-649.56	-798.86	-982.48	-1,208.30
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 26.73
Beta	2.482
Diluted Shares Outstanding	99
Cost of Debt
Tax Rate	57.93
After-tax Cost of Debt	2.19%
Risk-Free Rate
Market Risk Premium
Cost of Equity	15.503
Total Debt	3,408.50
Total Equity	2,646.27
Total Capital	6,054.77
Debt Weighting	56.29
Equity Weighting	43.71
Wacc

Build Up Free Cash

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	3,654.10	3,181.90	2,254.30	4,569	6,000.70	7,379.95	9,076.23	11,162.39	13,728.05	16,883.43
EBITDA	318.80	596.60	315.30	298	539.50	840.93	1,034.21	1,271.92	1,564.28	1,923.82
EBIT	150.10	400.80	77.90	53.80	210.60	366.73	451.03	554.70	682.19	838.99
Tax Rate	24.29%	10.96%	-276.51%	-111.02%	57.93%	-58.87%	-58.87%	-58.87%	-58.87%	-58.87%
EBIAT	113.64	356.86	293.30	113.53	88.60	582.63	716.55	881.24	1,083.80	1,332.91
Depreciation	168.70	195.80	237.40	244.20	328.90	474.19	583.18	717.23	882.08	1,084.83
Accounts Receivable	-	9.30	-20	-115.80	-54.20	-181.83	-141.13	-173.57	-213.47	-262.54
Inventories	-	10.90	-35.40	-67.40	33.90	-67.45	-43.68	-53.72	-66.07	-81.26
Accounts Payable	-	-23.80	-28.90	176.20	-31	157.10	106.33	130.77	160.83	197.79
Capital Expenditure	-305.50	-455.50	-168.30	-83.20	-229.30	-528.16	-649.56	-798.86	-982.48	-1,208.30
UFCF	-23.16	93.56	278.10	267.53	136.90	436.48	571.68	703.08	864.68	1,063.43
WACC
PV UFCF						404.11	490.03	557.97	635.33	723.42
SUM PV UFCF										2,810.86

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.01
Free cash flow (t + 1)	1,084.69
Terminal Value	18,048.17
Present Value of Terminal Value	12,277.59

Intrinsic Value

Enterprise Value	15,088.45
Net Debt	3,401
Equity Value	11,687.45
Shares Outstanding	99
Equity Value Per Share	118.06