J.P. Morgan Global High Yield and Leveraged Finance Conference February 28, 2011
Investment Highlights Diversified Operating Model Among the Largest Independent Natural Gas Storage Providers in the Income U.S. A Leading National Propane Franchise Strong Financial Performance Record Midstream Energy Storage…
Inergy Snapshot Inergy, L.P. is a geographically diverse retail propane and midstream energy business 6.9 billion partnership enterprise value with 349 million TTM Adj. EBITDA(a) Propane Midstream 4th largest retail propane…
Recent Events: Continued Steady, Predictable Performance Inergy reported record fiscal Q1 earnings Inergy raised over 1.0 billion via the issuance of 750 million of 6% Senior Unsecured Notes due 2021 and a 300 million secured term loan…
Inergy Strategy Deliver Operational Excellence Significant Service Provider in Core Midstream Markets Midstream operations primarily fee-based; long-term contract-driven cash flow Dual energy storage hubs in the Northeast and Texas…
Midstream Operations 7
Midstream Business Stable, fee-based cash flow profile with little commodity price exposure Stable Fee-Based Natural gas storage assets over 95% contracted with firm storage agreements(a) Cash Flows Growing business representing an…
Integrated Storage and Transportation Platform Two premier gas storage platforms located between major shale plays and premium demand markets Planned expansion to 100 Bcf of fee-based, highly Marc I and North-South projects in…
Northeast Natural Gas Storage Hub Potential for 52 Bcf natural gas storage capacity within 200 miles of New York City Northeast Storage & Transportation Hub uniquely positioned with access to multiple gas supply sources and…
Tres Palacios 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 one of the largest gas- fired power…
Leading Independent Storage Provider Abundant pipeline interconnections available close to storage assets Northeast - Millennium, Tennessee Gas Pipeline, National Fuel, Empire, Transco, Dominion Tres Palacios 10 interstate and…
Premier Storage Footprint Inergys gas storage infrastructure is connected to major U.S. natural gas pipelines and offer unparalleled deliverability and flexibility helping customers meet supply - demand imbalances in the U.S. natural…
Propane Operations 14
Propane Value Chain Propane represents about 4% of household energy consumption in the US.(a) Inergy Fundamental Fundamental Demand Supply Propane is a basic necessity to many consumers Propane is clean burning and…
Propane Operations A leading national retail business Quality geographic footprint profitable markets 4th largest national retailer based on retail gallons sold Consistent financial performance Residential customer focus 70% 90%…
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 9.6 Billion Gallons (a) Blossman Gas Inc. United Propane Gas 0.8% 0.8% MFA Oil Co. (c) 0.9% Cenex (c) 2.4% Independent Retailers Growmark (c) 60.7%…
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 Strong and flexible balance sheet with long-term maturities…
Access to Long-Term Capital & Balanced Funding Approach Since its IPO in 2001, Inergy, L.P. has Accessed equity markets 14 times raising approximately 1.7 billion Accessed senior unsecured notes markets 5 times raising 1.7 billion of…
Debt Refinancing Summary Inergy recently completed the following opportunistic debt refinancing transactions: Redeemed 35% of its existing 225 million 8 % senior notes due 2015 using the optional equity clawback Tendered and redeemed…
Capitalization As of December 31, 2010 As further (a) ( in millions) Actual As adjusted adjusted Cash & cash equivalents.. 19.3 19.3 19.3 Revolving working capital credit facility .. 21.4 - - (b) Revolving general partnership…
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% Visibility of 50% Adjusted…
Investment Highlights Diversified Operating Model Among the Largest Independent Natural Gas Storage Providers in the Income U.S. A Leading National Propane Franchise Strong Financial Performance Record Midstream Energy Storage…
Committed to Generating Industry-Leading Returns to Our Investors 26
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