At Crestwood, our chief objective is to create long-term value for our investors by delivering consistently increasing cash distributions, while ensuring the ongoing stability of our business. To achieve this objective, we focus on what we know and utilize our competitive strengths to increase revenue, profitability and cash flow.
Growth through Accretive Acquisitions
Crestwood's management team has extensive experience and an exceptional track record of building value through the acquisition and integration of strategic assets. Since the Crestwood management team formed its partnership with First Reserve in May 2010, the team has completed ~$1.5 billion in acquisitions that has doubled the enterprise value of Crestwood and has aided in delivering meaningful total returns to investors. Through our unique structure and strategic alignment with our General Partner and First Reserve, we have access to a variety of capital sources and are able to analyze acquisitions as a consolidated enterprise to determine the appropriate financing plan to maximize value creation for all investors.
Focus on High-Growth, Unconventional Plays
Crestwood management has actively worked to diversify the asset portfolio since October of 2010 and has positioned the Partnership to capitalize on substantial future upstream development from some of the most prolific unconventional dry and rich natural gas plays in North America including the Barnett Shale, Avalon Shale, Fayetteville Shale, Granite Wash, Haynesville Shale and Marcellus Shale. Looking forward, Crestwood will continue to pursue opportunities to expand operations in existing and new basins where we believe wellhead economics will continue to support substantial upstream development regardless of the commodity cycle.
Minimize Direct Commodity Exposure
In an effort to minimize cash flow volatility and deliver consistent results to investors, Crestwood seeks to minimize direct commodity price exposure through long-term, predominantly fixed-fee contractual arrangements with our customers. This ongoing effort is demonstrated by our current contract portfolio which consists of approximately 95% fixed-fee arrangements with maturities ranging from 2017 to 2032. Additionally, Crestwood actively looks for opportunities to develop contractual relationships with customers that align producer and gatherer incentives and help provide protection against adverse commodity price movements and volume volatility. Examples of these contractual arrangements that Crestwood currently possesses in its portfolio and will continue to use in future transactions include throughput-based earn-out provisions for producers, sliding scale fees and minimum volume guarantees.
Balanced Capital Structure
Crestwood is an acquisitive company and growth through acquisitions will be a key component of our growth strategy in the future. Keeping that in mind, our management team firmly understands the importance of a strong balance sheet and utilizing the appropriate amount of debt and equity to finance growth. Crestwood targets approximately 50% equity and 50% debt to finance its acquisitions and growth capital requirements. As of March 31, 2012, Crestwood has financed approximately $600 million in total capital requirements (including acquisitions) with ~52% equity and ~48% debt. Also, as of March 31, 2012, Crestwood Holdings has financed over $1.0 billion of investments with 60% equity and 40% debt.