Inergy Snapshot Inergy, L.P. is a geographically diverse retail propane and midstream energy business 5.9 billion combined partnership enterprise value with 319 million TTM Adj. EBITDA(a) Propane Midstream 4th largest retail propane…
Recent Events: Continued Steady, Predictable Performance Tres Palacios Natural Gas Storage 38.4 Bcf of working gas capacity with planned expansion to 47.9 Bcf Transaction positions Inergy as the largest independent natural gas storage…
Investment Highlights Diversified Operating Model A Leading National Propane Franchise Income The Largest Independent Natural Gas Storage Provider in the U.S. Strong Financial Performance Record Midstream Energy Storage Platform…
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…
Distinguished Distribution Performance Inergy has consistently grown cash distributions & maintained strong coverage ratios cre ases b on I n u t i R (a) 2.60 2.82 is t r i AG rte rly D Growth C 2.44 ua ution 2.28 cu ti ve Q % D…
Midstream Operations 9
Midstream Business Stable, fee-based cash flow profile with little commodity price exposure Stable Natural gas storage assets over 95% contracted with firm storage Stable Fee-Based Fee-Based agreements(a) Cash Cash Flows Flows…
Leading Independent Storage Provider Abundant pipeline interconnections (a) available close to storage assets Northeast - Millennium, Tennessee Gas Pipeline, National Fuel, Empire, Transco, Dominion Tres Palacios 10 interstate and…
Integrated Storage and Transportation Platform Planned expansion to 100 Bcf of fee-based, Marc I and North-South projects in Northeast highly flexible gas storage capacity near add deliverability and flexibility to storage demand…
Northeast Natural Gas Storage Hub Potential for 52 Bcf natural gas storage capacity within 200 miles of New York City Stagecoach (26.3 Bcf ) Ca n Steuben Gas Storage (6.2 Bcf ) ad a Thomas Corners (7.0 Bcf ) on o m ini Seneca…
Tres Palacios Acquisition Overview Located 100 miles southwest of Houston in Matagorda County, TX 38.4 Bcf of working gas capacity with planned expansion to 47.9 Bcf Situated near Eagle Ford Shale and near largest gas fired power…
Integrated Storage and Transportation Platform Inergys dual-hub natural gas storage platform offers unparalleled deliverability and flexibilityCreates significant strategic value Northeast Midwest Mid-Atlantic Southeast…
Propane Operations 16
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…
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…
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…
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)…
Financial Overview 21
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…
Strong Balance Sheet Balance sheet is well-positioned for future expansion projects & acquisition growth Ample liquidity with new 525 million revolving credit facility As of June 30, 2010 As Further ( in MMs) Actual As Adjusted…
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%…
Investment Highlights Diversified Operating Model A Leading National Propane Franchise Income The Largest Independent Natural Gas Storage Provider in the U.S. Strong Financial Performance Record Midstream Energy Storage Platform…
Historical Financial Overview & Non-GAAP Reconciliations, (cont.) Nine Months Ended June 30, 2007 2008 2009 2009 2010 TTM (in MMs) (audited) (audited) (audited) (unaudited) (unaudited) (unaudited) EBITDA Reconciliation: Net income…
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…
Tres Palacios Asset Overview Asset Characteristics 27.1 Bcf working gas capacity currently in service (Cavern 1 and 2) Cavern 3 provides additional 11.4 Bcf of working gas capacity (expected in-service Sep-2010) Cavern 3 substantially…
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…
Committed to Generating Industry-Leading Returns to Our Investors 33
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