Energy Transfer and Crestwood Announce Preliminary Election Results of Crestwood Preferred Unitholders

Energy Transfer LP (NYSE: ET) (“Energy Transfer”) and Crestwood Equity Partners LP (NYSE: CEQP) (“Crestwood”) announced today the preliminary results of the elections made by holders of Crestwood’s outstanding 9.250% Perpetual Preferred Units (the “Crestwood Preferred Units”) regarding the form of merger consideration to be received in connection with Energy Transfer’s pending acquisition of Crestwood.

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As further described in the Agreement and Plan of Merger, dated as of August 16, 2023, by and among Crestwood, Energy Transfer LP, Pachyderm Merger Sub LLC, a direct wholly owned subsidiary of Energy Transfer, and, solely for the purposes set forth therein, LE GP, LLC (the “Merger Agreement”) and in the proxy statement/prospectus filed with the U.S. Securities and Exchange Commission (the “SEC”) on September 29, 2023 (the “Proxy Statement/Prospectus”), holders of Crestwood Preferred Units were entitled to elect to have their Crestwood Preferred Units: (i) converted into common units representing limited partner interests in Crestwood (“Crestwood Common Units”), at the then-applicable conversion ratio (currently one Crestwood Common Unit for 10 Crestwood Preferred Units), which as-converted Crestwood Common Units would subsequently be converted into Energy Transfer common units upon closing of the transaction at an exchange ratio of one Crestwood Common Unit into 2.07 Energy Transfer common units; (ii) converted into a new Energy Transfer security that has substantially similar terms, including with respect to economics and structural protections, as the Crestwood Preferred Units (“New ET Preferred Units”); or (iii) redeemed in exchange for cash or Crestwood Common Units, at the sole discretion of the general partner of Crestwood, at a price of $9.857484 per Crestwood Preferred Unit plus accrued and unpaid distributions to the date of such redemption.

Based on available information as of the election deadline of 5:00 p.m., New York City time, October 31, 2023, the preliminary election results were as follows:

• Holders of 424,291 Crestwood Preferred Units, or approximately 0.60% of the outstanding Crestwood Preferred Units, elected to receive Crestwood Common Units.
• Holders of 41,464,187 Crestwood Preferred Units, or approximately 58.19% of the outstanding Crestwood Preferred Units, either (i) elected to receive New ET Preferred Units or (ii) did not make a valid election, and, in accordance with the Merger Agreement, will be deemed to have elected to have their Crestwood Preferred Units converted into New ET Preferred Units.
• Holders of 29,368,967 Crestwood Preferred Units, or approximately 41.21% of the outstanding Crestwood Preferred Units, elected to have their Crestwood Preferred Units redeemed in exchange for cash or Crestwood Common Units, at the sole discretion of the general partner of Crestwood.

The foregoing results are preliminary only, and final certified results are not expected to be available until shortly before closing. After the final election results are determined, the final merger consideration, and the allocation of the merger consideration, will be calculated in accordance with the terms of the Merger Agreement.