Partners' Capital

3 Months Ended

Mar. 31, 2020

Statement of Partners' Capital [Abstract]

Partners’ Capital

Common Units

Effective April 1, 2020, we suspended the equity distribution program with certain financial institutions under which we were allowed to offer and sell, from time to time through one or more of these financial institutions, common units having an aggregate offering price of up to $250 million. We did not issue any common units under this program during the three months ended March 31, 2020 and 2019.

Distributions

Crestwood Equity

Limited Partners. A summary of CEQP’s limited partner quarterly cash distributions for the three months ended March 31, 2020 and 2019 is presented below:



Record Date	Payment Date	Per Unit Rate		Cash Distributions (in millions)
2020
February 7, 2020	February 14, 2020	$	0.625	$	45.3
2019
February 7, 2019	February 14, 2019	$	0.60	$	43.1

On April 16, 2020, we declared a distribution of $0.625 per limited partner unit to be paid on May 15, 2020 to unitholders of record on May 8, 2020 with respect to the quarter ended March 31, 2020.

Preferred Unit Holders. During the three months ended March 31, 2020 and 2019, we made cash distributions to our preferred unitholders of approximately $15.0 million in both periods. On April 16, 2020, the board of directors of our general partner authorized a cash distribution to our preferred unitholders of approximately $15.0 million for the quarter ended March 31, 2020.

Crestwood Midstream

During the three months ended March 31, 2020 and 2019, Crestwood Midstream paid cash distributions of $57.0 million and $57.8 million to Crestwood Equity.

Non-Controlling Partner

Crestwood Niobrara issued preferred interests to Jackalope Holdings, which are reflected as non-controlling interest in subsidiary apart from partners’ capital (i.e., temporary equity) on our consolidated balance sheets.

The following table shows the change in our non-controlling interest in subsidiary at March 31, 2020 (in millions):



Balance at December 31, 2019	$	426.2
Distributions to non-controlling partner	(9.2		)
Net income attributable to non-controlling partner⁽¹⁾	9.9
Balance at March 31, 2020	$	426.9


(1)	We adjust the carrying amount of our non-controlling interest to its redemption value each period through net income attributable to non-controlling partner.

Crestwood Niobrara makes quarterly cash distributions on its preferred interests within 30 days after the end of each quarter. During the three months ended March 31, 2020 and 2019, Crestwood Niobrara paid cash distributions of $9.2 million and $3.3 million to Jackalope Holdings. In April 2020, Crestwood Niobrara paid cash distributions to Jackalope Holdings of $9.2 million for the quarter ended March 31, 2020.

Other

In February 2020, Crestwood Equity issued 184,528 performance units under the Crestwood Equity Partners LP Long Term Incentive Plan (Crestwood LTIP). The performance units are designed to provide an incentive for continuous employment to certain key employees. The vesting of performance units is subject to the attainment of certain performance and market goals over a three-year period, and entitle a participant to receive common units of Crestwood Equity without payment of an exercise price upon vesting. As of March 31, 2020, we had total unamortized compensation expense of approximately $4.2 million related to these performance units, which we expect will be amortized during the next three years. We recognized compensation expense of approximately $0.2 million under the Crestwood LTIP related to these performance units during the three months ended March 31, 2020, which is included in general and administrative expenses on our consolidated statements of operations.

During the three months ended March 31, 2020, 405,620 performance units that were previously issued under the Crestwood LTIP vested, and as a result of the attainment of certain performance and market goals and related distributions during the three years that the awards were outstanding, we issued 838,556 common units during the three months ended March 31, 2020 related to those performance units.