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2010 MLP INVESTOR CONFERENCE – Inergy, L.P.

Inergy, L.P. · May 12, 2010 · 35 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 1
    2010 MLP Investor Conference May 12-13, 2010
  2. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 2
    Management Representatives John Sherman(a) President and Chief Executive Officer Brooks Sherman(a) Executive Vice President and Chief Financial Officer __________________ (a) No relation. 2
  3. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 3
    Inergy Overview 4
  4. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 4
    Inergy Snapshot Inergy, L.P. is a geographically diverse retail propane and midstream energy business 4.8 billion combined partnership enterprise value with 316 million TTM Adj. EBITDA(a) Propane Midstream 4th largest retail propane…
  5. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 5
    Recent Events: Continued Steady, Predictable Performance Inergy Posted Record Performance YTD Liberty and MGS Propane Acquisitions Liberty 9th largest propane retailer in the US MGS ranks among top 30 propane retailers in US Liberty…
  6. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 6
    Investment Highlights Diversified Operating Model A Leading National Propane Franchise Income Fee-based Midstream Business Anchored by Northeast U.S. Gas Storage Strong Financial Performance Record Midstream Energy Storage Platform…
  7. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 7
    Inergy Strategy Deliver Operational Excellence Further Enhance the Operation of an Outstanding Propane Franchise Maintain flexible operating model in attractive markets Deliberate focus on residential customer base with high tank…
  8. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 8
    Public GP Provides 2nd Strategic Source of Equity Capital 73.1% Offers Inergy Access to Both Growth & Management Limited & Others Partner Income Oriented Investor Bases Interest NRGP Highlights Inergy 26.9% Public Management aligned…
  9. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 9
    Distinguished Distribution Performance Two Securities Offer a Compelling Combination of Income & Growth Inergy has consistently grown cash distributions & maintained strong coverage ratios 3.90 NRGP es cr e as 2.86 2.78 NRGY In…
  10. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 10
    Propane Operations 11
  11. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 11
    Propane Value Chain Propane represents about 4% of household energy consumption in the US. Inergy Fundamental Fundamental Demand Supply Propane is a basic necessity to many consumers Propane is clean burning and generally…
  12. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 12
    Propane Operations A leading national retail business Quality geographic footprint profitable markets 4th largest national retailer Consistent financial performance Residential customer focus 70% 90% tank control Cost + margin…
  13. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 13
    Superior Operating Performance EBITDA/Retail Propane Gallon (a) Business model and intense focus on 0.75 retail margin lends itself to better pricing and operational decision-making = Key 0.60 Profit Driver 0.45 0.30 Acquisition…
  14. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 14
    Propane Industry Fragmentation Domestic Retail Market for LPG is Approximately 10.0 Billion Gallons (a) Southern States (c) United Propane Gas 0.7% 0.7% MFA Oil Co. (c) Cenex (c) 0.8% 2.1% Independent Retailers Growmark (c)…
  15. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 15
    Midstream Operations 16
  16. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 16
    Midstream Business Stable, fee-based cash flow profile with little commodity price exposure Stable Stable Fee-Based Fee-Based Cash NE Midstream assets 100% contracted with long-term agreements Cash Flows Flows Growing business…
  17. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 17
    Leading Independent Storage Provider Inergy is among the largest independent natural gas storage providers and the largest independent located in the Northeast demand market Abundant pipeline interconnections available close to…
  18. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 18
    Premier Energy Storage Platform Potential for 52 Bcf natural gas storage capacity within 200 miles of New York City Stagecoach (26.3 Bcf ) Steuben Gas Storage (6.2 Bcf ) Thomas Corners (7.0 Bcf ) Seneca Lake (2.0 Bcf ) (Expected…
  19. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 19
    Seneca Lake Acquisition Overview Located in Schuyler County, NY and situated on Inergys US Salt property 2.0 Bcf underground salt-dome natural gas storage facility Daily injection/withdrawal capacity of up to 72,500 and 145,000 Dth,…
  20. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 20
    Additional Storage & Transportation Expansion Opportunities Finger Lakes LPG Storage (Watkins Glen) Developing up to 5 million barrels of additional LPG storage Readily connected to Teppco pipeline, rail and truck terminal access…
  21. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 21
    US Salt Operations In August 2008, Inergy purchased US Salt located in Watkins Glen, NY. High High Quality Quality Assets Assets Strategically located 25 miles east of Inergys Bath LPG storage facility; complimentary to existing…
  22. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 22
    West Coast NGL Operations Strategically located near Bakersfield, CA between major West Coast refining centers Inergys West Coast capabilities: 12,000 bpd fractionator 8,000 bpd butane isomerization unit 24 million gallons NGL…
  23. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 23
    Integrated Northeast Storage Hub Midstream assets strategically located atop the prolific Marcellus Shale Potential for over 52 Bcf of working gas storage Ca capacity contained in an na d a 40 mile radius within 200 n miles of New…
  24. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 24
    Financial Overview 25
  25. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 25
    Demonstrated Financial Discipline Balanced funding objectives Long-term targeted debt-to-EBITDA of approximately 3.5 to 4.0x Proven access to debt and equity capital markets Diverse balance sheet: Bank facility represents only…
  26. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 26
    Financial Performance Retail Propane Gallon Sales Total Gross Profit 400.0 362 700.0 332 331 574 602 350.0 310 600.0 Total Gross Profit ( m illions) 300.0 457 502 500.0 Gallons (millions) 250.0 400.0 200.0 300.0…
  27. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 27
    Strong Balance Sheet Balance sheet is well-positioned for future expansion projects & acquisition growth Ample liquidity with new 525 million revolving credit facility ( in MMs) As of March 31, 2010 Cash 19.2 Revolving working…
  28. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 28
    Successfully Executing Diversified Business Model Financial Performance Track Record, Mix of Business, and Disciplined Balance Sheet Management = Attractive Investment EBITDA MIX BY SEGMENT 100% 90% 80% 70% 60% 50% 40% 30%…
  29. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 29
    Investment Highlights Diversified Operating Model A Leading National Propane Franchise Income Fee-based Midstream Business Anchored by Northeast U.S. Gas Storage Strong Financial Performance Record Midstream Energy Storage Platform…
  30. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 30
    Appendix 31
  31. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 31
    Historical Financial Overview & Non-GAAP Reconciliations Six Months Ended March 31, 2007 2008 2009 2009 2010 TTM (in MMs) (audited) (audited) (audited) (unaudited) (unaudited) (unaudited) Retail propane gallons 362.2 331.9 310.0 229.1…
  32. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 32
    Historical Financial Overview & Non-GAAP Reconciliations, (cont.) Six Months Ended March 31, 2007 2008 2009 2009 2010 TTM (in MMs) (audited) (audited) (audited) (unaudited) (unaudited) (unaudited) EBITDA Reconciliation: Net income…
  33. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 33
    Gas Storage Facility Overview Stagecoach Steuben Gas Storage Located 150 miles northwest of New York City Located 40 miles from Stagecoach in Steuben Closest storage facility to NYC market County, NY Working gas = 26.25 Bcf Working…
  34. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 34
    Consistent Margin Performance Management has demonstrated its ability to achieve consistent margin performance in distinctly different operating environments Intense focus on proactively monitoring key performance metrics Propane…
  35. 2010 MLP INVESTOR CONFERENCE – Inergy, L.P. – slide 35
    Committed to Generating Industry-Leading Returns to Our Investors 36

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