Crestwood Announces Fourth Quarter Distribution Increase for Common Units, New Long-Term Distribution Policy and Schedules Fourth Quarter 2019 Earnings Release Date
Crestwood Equity Partners LP (NYSE: CEQP) (“Crestwood” or “CEQP”) announced today that the board of directors of its general partner has declared the partnership’s quarterly cash distribution of $0.625 per limited partner unit ($2.50 annually) for the quarter ended December 31, 2019. This represents a 4.2% increase over the distribution for the quarter ended September 30, 2019. Crestwood expects to maintain the quarterly distribution of $0.625 per limited partner unit, subject to the board of directors’ quarterly approval, through 2020.
“As Crestwood nears the completion of our three-year organic capital investment program around our core assets in the Bakken Shale, Powder River Basin and Delaware Basin, we have clear visibility to generating substantial free cash flow which will drive our leverage ratio in-line with our long-term target of 3.5x to 4.0x by year-end 2020. Additionally, with our current outlook for 2020 and our targeted distribution of $2.50 per unit, we expect our coverage ratio for the year to be approximately 2.0x, providing Crestwood the financial flexibility and confidence to begin returning capital to our unitholders today,” Robert G. Phillips, Chairman, President, and Chief Executive Officer of Crestwood’s general partner commented. Mr. Phillips continued, “Crestwood’s corporate strategy of generating long-term value for our unitholders is underpinned by financial discipline, accretive growth capital investments and promoting sustainability throughout our organization. As part of our disciplined strategy, I am pleased we have successfully realized our financial targets over the last several years and are now positioned to start prudently returning excess cash flow to our investors while maintaining our core financial objective of continuing to build long-term balance sheet strength.”
In addition, Crestwood announced a quarterly cash distribution of $0.2111 per Class A preferred equity unit ($0.8444 annually). Both common and preferred distributions will be made on February 14, 2020, to unitholders of record as of February 7, 2020.
Crestwood plans to report financial results for the fourth quarter 2019 and provide 2020 guidance on Tuesday, February 18, 2020, before the New York Stock Exchange opens for trading. Following the announcement, management will host a conference call for investors and analysts at 9:00 a.m. Eastern Time (8:00 a.m. Central Time) that day to discuss the operating and financial results. The call will be broadcast live over the internet via audio webcast. Investors will be able to connect to the webcast via the “Investors” page of Crestwood’s website at www.crestwoodlp.com. Please log in at least ten minutes in advance to register and download any necessary software. A replay will be available shortly after the call for 90 days.
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