XML 48 R27.htm IDEA: XBRL DOCUMENT v3.22.0.1
Related Party Transactions
12 Months Ended
Dec. 31, 2021
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
We enter into transactions with our affiliates within the ordinary course of business, including product purchases, marketing services and various operating agreements, including operating leases. We also enter into transactions with our affiliates related to services provided on our expansion projects.

Prior to August 2021, Crestwood Holdings indirectly owned our general partner and the affiliates of Crestwood Holdings and its owners were considered CEQP’s and CMLP’s related parties. With the completion of the Crestwood Holdings Transactions in August 2021, Crestwood Holdings and its affiliates are no longer considered related parties of CEQP and CMLP. During the years ended December 31, 2021, 2020, 2019 and we paid approximately $0.6 million, $3.5 million, and $9.9 million of capital expenditures to Applied Consultants, Inc., an affiliate of Crestwood Holdings.

Below is a discussion of certain of our related party services and agreements.

Shared Services. CMLP shares common management, general and administrative and overhead costs with CEQP, and as such, CMLP allocates a portion of its costs to CEQP. CEQP grants long-term incentive awards under the Crestwood LTIP as discussed in Note 13 and, as such, CEQP allocates certain of its unit-based compensation costs to CMLP. Prior to the Crestwood Holdings Transactions as discussed in Note 1, Crestwood Holdings allocated its unit-based compensation charges to CEQP and CMLP.

Stagecoach Gas Management Agreement. Prior to the sale of our equity interest in Stagecoach Gas as further discussed in Note 6, Crestwood Midstream Operations, LLC (Crestwood Midstream Operations), our wholly-owned subsidiary, provided management and operating services to Stagecoach Gas under a management agreement pursuant to which we operated and maintained Stagecoach Gas’s facilities. Reimbursements received from Stagecoach Gas under this agreement were reflected as a reduction of operations and maintenance expenses in our consolidated statements of operations.

Tres Holdings Operating Agreement. CMLP Tres Manager, LLC, a consolidated subsidiary of Crestwood Midstream, entered into an operating agreement with Tres Holdings, pursuant to which we operate and maintain their facilities as well as provide certain administrative and other general services identified in the agreement. Under the operating agreement, Tres Holdings reimburses us for all costs incurred on its behalf. These reimbursements are reflected as a reduction of operations and maintenance expenses in our consolidated statements of operations.
Crestwood Permian Operating Agreement. Crestwood Midstream Operations entered into an operating agreement with Crestwood Permian, pursuant to which we provide operating services for Crestwood Permian’s facilities, as well as certain administrative and other general services identified in the agreement. Under the operating agreement, Crestwood Permian reimburses us for all costs incurred on its behalf. These reimbursements are reflected as a reduction of operations and maintenance expenses in our consolidated statements of operations.

Jackalope Marketing Services Agreement. Prior to the acquisition of the remaining interest in Jackalope as further discussed in Note 3, Crestwood Niobrara provided marketing services to Jackalope as well as certain administrative and other general services identified under a marketing services agreement. Under this marketing services agreement, Jackalope reimbursed us for all costs incurred on its behalf. These reimbursements are reflected as a reduction of operations and maintenance expenses in our consolidated statements of operations.

The following table shows transactions with our affiliates which are reflected in our consolidated statements of operations for the years December 31, 2021, 2020 and 2019 (in millions):
Year Ended December 31,
202120202019
Revenues at CEQP and CMLP(1)
$27.2 $27.8 $2.9 
Costs of product/services sold at CEQP and CMLP(2)
$136.8 $21.0 $45.4 
Operations and maintenance expenses at CEQP and CMLP charged to our unconsolidated affiliates(3)
$22.2 $21.8 $25.9 
General and administrative expenses charged by CEQP to CMLP, net(4)
$35.5 $31.1 $41.4 
General and administrative expenses at CEQP charged to (from) Crestwood Holdings, net(5)
$4.8 $6.5 $(0.6)

(1)Includes (i) $26.2 million, $27.8 million and $1.0 million during the years ended December 31, 2021, 2020 and 2019 related to the sale of NGLs to a subsidiary of Crestwood Permian; (ii) $1.0 million during the year ended December 31, 2021 related to a compressor lease with a subsidiary of Crestwood Permian (iii) $1.2 million during the year ended December 31, 2019 related to the sale of natural gas to a subsidiary of Stagecoach Gas: and (iv) $0.7 million during the year ended December 31, 2019 related to the sale of NGLs to our affiliate, Westlake Chemical Corporation.
(2)Includes (i) $110.7 million, $20.0 million and $19.0 million during the years ended December 31, 2021, 2020 and 2019 related to purchases of natural gas and NGLs from a subsidiary of Crestwood Permian; (ii) $11.6 million and $0.6 million during the years ended December 31, 2021 and 2020 related to purchases of natural gas from a subsidiary of Tres Holdings; (iii) $14.5 million, $0.4 million and $23.9 million during the years ended December 31, 2021, 2020 and 2019 related to purchases of NGLs from Ascent Resources - Utica, LLC (Ascent); (iv) $0.2 million during the year ended December 31, 2019 related to purchases of NGLs from Blue Racer Midstream, LLC (Blue Racer); and (v) $2.3 million during the year ended December 31, 2019 related to purchases of natural gas from a subsidiary of Stagecoach Gas. Ascent and Blue Racer are affiliates of Crestwood Holdings for the respective periods presented.
(3)We have operating agreements with certain of our unconsolidated affiliates pursuant to which we charge them operations and maintenance expenses in accordance with their respective agreements described above. During the year ended December 31, 2021, we charged $3.4 million to Stagecoach Gas, $4.9 million to Tres Holdings, and $13.9 million to Crestwood Permian under these agreements. During the year ended December 31, 2020, we charged $6.6 million to Stagecoach Gas, $4.1 million to Tres Holdings and $11.1 million to Crestwood Permian under these agreements. During the year ended December 31, 2019, we charged $7.5 million to Stagecoach Gas, $4.4 million to Tres Holdings, $13.5 million to Crestwood Permian and $0.5 million to Jackalope under these agreements.
(4)Includes $39.5 million, $35.1 million and $45.1 million of unit-based compensation charges allocated from CEQP to CMLP during the years ended December 31, 2021, 2020 and 2019. In addition, includes $4.0 million, $4.0 million and $3.7 million of CMLP’s general and administrative costs allocated to CEQP during the years ended December 31, 2021, 2020 and 2019.
(5)Includes a $4.6 million and $4.4 million reduction of unit-based compensation charges allocated from Crestwood Holdings to CEQP and CMLP during the years ended December 31, 2021 and 2020 and $1.9 million of unit-based compensation charges allocated from Crestwood Holdings to CEQP and CMLP during the year ended December 31, 2019. CEQP allocates a portion of its general and administrative costs to Crestwood Holdings and during the years ended December 31, 2021, 2020 and 2019, CEQP allocated $0.2 million, $2.1 million and $1.3 million of its general and administrative costs to Crestwood Holdings.

The following table shows accounts receivable and accounts payable from our affiliates as of December 31, 2021 and 2020 (in millions):
December 31,
20212020
Accounts receivable at CEQP and CMLP$8.2 $2.5 
Accounts payable at CEQP$12.0 $7.5 
Accounts payable at CMLP$12.0 $5.0