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Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P.

Inergy Midstream, L.P. · Dec 7, 2010 · 36 slides

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Slides

  1. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 1
    Wells Fargo Securities 9th Annual Pipeline and MLP Symposium December 7, 2010
  2. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 2
    Inergy Overview 3
  3. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 3
    Investment Highlights Diversified Operating Model The Largest Independent Natural Gas Storage Provider in the U.S. Income A Leading National Propane Franchise Strong Financial Performance Record Midstream Energy Storage Platform…
  4. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 4
    Inergy Snapshot Inergy, L.P. is a geographically diverse retail propane and midstream energy business 6.5 billion partnership enterprise value with 326 million FY 2010 Adj. EBITDA(a) Propane Midstream 4th largest retail propane…
  5. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 5
    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 High-deliverability salt dome storage asset located near Houston and San…
  6. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 6
    Simplification Transaction Benefits Current Ownership Structure(a) Transaction Benefits Cancellation of IDRs and purchase of Public Management Class B Units GP economic interest results in Unitholders & Directors (PIK Units) Lower…
  7. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 7
    Inergy Strategy Deliver Operational Excellence Premier 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 with…
  8. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 8
    Distinguished Distribution Performance Simplification transaction and expansion projects position company to continue growing long-term c re ase(sa) 2.79 2.82 n In utio owth CAG R 2.60 t r i b r 2.44 y Dis tion G 2.28 u a…
  9. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 9
    Midstream Operations 10
  10. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 10
    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…
  11. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 11
    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…
  12. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 12
    Northeast Natural Gas Storage Hub Potential for 52 Bcf natural gas storage capacity within 200 miles of New York City Northeast Storage & Ca Transportation Hub n ad uniquely positioned with a access to multiple gas ini on supply…
  13. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 13
    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…
  14. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 14
    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…
  15. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 15
    Manageable Expansion Projects High-return midstream expansion projects generate substantial diversification of cash flow Projects are manageable size and leverage Inergys existing asset base and expertise in the Northeast Current…
  16. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 16
    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…
  17. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 17
    Propane Operations 18
  18. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 18
    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…
  19. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 19
    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…
  20. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 20
    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…
  21. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 21
    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)…
  22. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 22
    Financial Overview 23
  23. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 23
    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…
  24. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 24
    Financial Performance (a) Total Gross Profit Adjusted EBITDA 800.0 734-772 500.0 410-435 Total Gross Profit ( m illions) 700.0 620 600.0 574 400.0 326 EBITDA ( millions) 457 502 297 500.0 300.0 239 400.0 211 200.0…
  25. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 25
    Strong Balance Sheet As of September 30, 2010 ( in millions) Actual As Adjusted (a) Cash & Restricted Cash.. 732.3 7.4 (b) Revolving working capital facility .. - 34.9 (a) Revolving general partnership credit facility .. -…
  26. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 26
    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…
  27. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 27
    Investment Highlights Diversified Operating Model The Largest Independent Natural Gas Storage Provider in the U.S. Income A Leading National Propane Franchise Strong Financial Performance Record Midstream Energy Storage Platform…
  28. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 28
    Appendix 29
  29. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 29
    FY 2011 Guidance Forecast Range Fiscal Year Ended September 30, 2011 ( in Millions) Low High (a) Net Income 85 88 (a)(b) Interest Expense 135 144 (a)(c) Depreciation and amortization 189 202 (a) Income Taxes 1 1 (a) Adjusted…
  30. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 30
    Historical Financial Overview & Non-GAAP Reconciliations 2007 2008 2009 2010 (in MMs) (audited) (audited) (audited) (audited) Retail propane gallons 362.2 331.9 310.0 340.2 Statement of Operations Data: Revenues 1,483.1 1,878.9…
  31. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 31
    Historical Financial Overview & Non-GAAP Reconciliations, (cont.) 2007 2008 2009 2010 (in MMs) (audited) (audited) (audited) (audited) EBITDA Reconciliation: Net income attributable to partners 67.0 65.1 101.4 48.0 Interest of…
  32. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 32
    Northeast 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…
  33. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 33
    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 Cavern 3 in interim service and is undergoing the…
  34. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 34
    Tres Palacios Facilities Map 35
  35. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 35
    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…
  36. Wells Fargo Securities 9th Annual Pipeline and MLP Symposium – Inergy Midstream, L.P. – slide 36
    Committed to Generating Industry-Leading Returns to Our Investors 37

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