Crestwood Equity Partners LP (NYSE:CEQP) Q4 2019 Earnings Conference Call - Final Transcript
Feb 18, 2020 • 09:00 am ET
Robert G. Phillips
our organization and throughout the industry. Crestwood is a relevant and important company that shows leadership in a lot of different ways. And so we appreciate the support of our employees, of our contractors, of our business partners, our customers, our general partner First Reserve and of course, our investors.
Now, let's look back to 2019. We certainly achieved some significant corporate milestones. Pleased to announce that last year we generated adjusted EBITDA of $527 million, that's up 25% year-over-year over '18. Our distributable cash flow, which is the real measure of growth for us, was $305 million, that was up 36% over 2018. And at these cash flow levels and with the confidence that we have in the business, Crestwood delivered very strong coverage and leverage ratios. For the full year, coverage was 1.8 times, closed out the year at 2.0 times in the fourth quarter, and our leverage for the full year was 4.1 time.
Our 2019 results highlight the value of our diversified portfolio that we've assembled in all three segments of the midstream business, and they all three experienced year-over-year growth during the year. And because of the confidence of the way that portfolio did perform, we increased our quarterly distribution by 4.2% in the fourth quarter of the year.
Let's look first at our Gathering and Processing segment, we got exposure to some of the premier oil-weighted basins across the US and that drove higher volumes as producers brought online approximately 290 wells across all of our assets, particularly in the Bakken, the Powder River Basin and the Delaware Basin out in West Texas.
In our Storage and Transportation segment, our COLT Hub facility saw close to a 20% increase in volumes and loading activity out of North Dakota and our Stagecoach asset stepped up to a 50:50 sharing arrangement with our partner Con Edison for that very important storage and transportation business located up in the heart of northeast Marcellus.
And finally, the largest outperformance in our portfolio came from our Marketing, Supply and Logistics team where our assets, and our NGL and crude marketing professionals utilized an extensive network of storage, rail, trucking and terminalling assets to capitalize on favorable market conditions and really knock it out of the park from that unit's perspective. And while this business didn't garner near as much attention, our MSL segment is an integral piece in Crestwood's ability to create sustainable value in a diversified business that is generally agnostic to commodity prices, so really looking forward to the contribution of the MSL team in 2020.
The next big achievement in 2019 was completing several expansions, most importantly, the expansion of the Arrow gathering and processing assets in the Bakken. As a result of this build out, we expect the Arrow asset to generate approximately $325 million of cash flow in 2020, that's up 40% over 2019, making it, no doubt, our most important asset. Robert Halpin is going to give you more color around that, but