CEO Energy-Power ConferenceSeptember 15-16 2010

2

Forward Looking StatementsNYSE: NRGY, NRGP

Cautionary Statement Regarding Forward-Looking StatementsThis communication contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that are not limited to historical facts, but reflect Inergy’s and Inergy Holdings’ current beliefs, expectations or intentions regarding future events. Words such as “may,” “will,” “could,” “should,” “expect,” “plan,” “project,”“intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “pursue,” “target,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, Inergy’s and Holdings’expectations with respect to the synergies, costs and other anticipated financial impacts of the proposed transaction; future financial and operating results of the combined company; the combined company’s plans, objectives, expectations and intentions with respect to the expectation that the closing conditions will be satisfied and the Tres Palacios acquisition will close, the accretion expectations as a result of Tres Palacios, the availability and timing of any expansion possibilities at Tres Palacios, the expectation that the acquisition will be funded by a combination of debt and equity, the impact on EBITDA, the anticipated future storage capacity at storage projects as well as future demand for such capacity and the timing of the pending simplification transaction with Inergy Holdings, L.P. All forward-looking statements involve significant risks, uncertainties and assumptions that could cause actual results to differ materiallyfrom those in the forward-looking statements, many of which are generally outside the control of Inergy and Holdings and are difficult to predict. Examples of such risks, uncertainties and assumptions include, but are not limited to, weather conditions that varysignificantly from historically normal conditions, the demand for high deliverability natural gas storage capacity in the Northeast and in Texas, the general level of natural gas and other hydrocarbon product demand, the availability of natural gas, the price of natural gas to the consumer compared to the price of alternative and competing fuels, our ability to successfully implement our business plan for midstream expansion, our ability to generate available cash for distribution to unitholders, the outcome of certificate and rate decisions issued by the Federal Energy Regulatory Commission, and the costs and effects of legal, regulatory, and administrative proceedings against us or which may be brought against us. . Inergy and Inergy Holdings caution that the foregoing list of factors is not exclusive. Additional information concerning these and other risk factors is contained in Inergy’s and Inergy Holdings’ most recently filed Annual Reports on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K and other SEC filings. All subsequent written and oral forward-looking statements concerning Inergy, Inergy Holdings, the proposed merger and related transactions and the Tres Palacios acquisition or other matters and attributable to Inergy or Inergy Holdings or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above. Neither Inergy nor Inergy Holdings undertakes any obligation to publicly update any of these forward-looking statements to reflect events or circumstances that may arise after the date hereof.

3

Inergy Overview

4

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

__________________

Diversified Business Model (b)(c)

Midstream~43%

Propane~57%

4th largest retail propane distributor serving ~800,000 customers in 32 states

Footprint located in quality markets with an intense focus on delivering financial and operational performance

Supported by experienced supply, transportation, and logistics group based in KC

80 Bcf high-deliverability natural gas storage operations located in New York & Texas with planned expansion to ~100 Bcf (b)

Leading provider of underground LPG storage in the Northeastern U.S.

Industry-leading solution mining and salt production company in upstate New York

NGL fractionation, storage, and terminalling operation strategically located on the West Coast

(a) TTM Adjusted EBITDA as of June 30, 2010. Enterprise value as of September 10, 2010.(b) Pro Forma Tres Palacios and Seneca Lake acquisitions.(c) Forecast run rate 2011 Adjusted EBITDA.

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– Transaction positions Inergy as the largest independent natural gas storage operator in the U.S. – High-deliverability salt dome storage asset located near Houston and San Antonio metro areas and connected to

10 interstate and intrastate pipelines serving multiple U.S. demand markets– Establishes a new gas storage platform for future growth– Transaction expected to close within 60 days– Inergy raised ~$400 million in upsized equity offering to fund a portion of the purchase price

Inergy’s Corporate Family Credit Rating Upgraded to Ba2 by Moody’sNRGY & NRGP Announce Merger Agreement

– Creates single, streamlined enterprise positioned for future growth

Inergy Posted Record Performance YTDSeneca Lake Natural Gas Storage

– Additional 2.0 Bcf natural gas storage capacity located on property at US Salt– Attractive capital efficiencies – existing compression and pipelines available for US Salt Gas Storage expansion– Accelerates natural gas storage and transportation hub in Northeastern U.S.– Expected to be 100% fee-based at close under long-term contracts– FERC approval received; awaiting NYPSC – expected to close September 2010

Liberty and MGS Propane Acquisitions– Liberty establishes new propane markets for Inergy in the Western U.S. and MGS further enhances Inergy’s

Northeast operations

6

Investment HighlightsDiversified Operating Model

– A Leading National Propane Franchise – The Largest Independent Natural Gas Storage Provider in the U.S.

Strong Financial Performance Record

Midstream Energy Storage Platform Rapidly Becoming a Larger Component of Business

– Pipeline of Midstream Expansion Projects UnderwayRecord of Consistent EBITDA & Distributable Cash Flow GrowthDisciplined Consolidator of Retail Propane Industry

Underlying Businesses Characterized by Recession Resistant Stable Cash FlowsStrong Balance Sheet and Distribution Coverage

Income

Growth

Safety

7

Inergy Strategy

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 controlPremier 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 access to multiple major long-haul pipelines serving demand markets

Continue Growth Through Capital Expansion Projects & Acquisitions– Propane - Expand existing retail footprint and establish new footprints with top

regional businesses– Midstream - Execute capital expansion projects around existing asset base

– Pursue and evaluate complementary midstream opportunities– Seek to further strengthen the long-term growth profile with stable, fee-based

cash flow streams

Disciplined Capital Investment

Deliver Operational Excellence

8

$1.18

$1.45$1.60

$1.91

$0.30

$2.14

$0.41

$2.28

$0.59

$2.44

$0.76

$2.60

$0.95

$2.82

$1.36

2002 2003 2004 2005 2006 2007 2008 2009 R un R ate

Distinguished DistributionPerformance

(a) Annualized paid distributions.__________________

35 Consecutive Quarterly Distribution Increases

NRGY

NRGP

~36% Distribution Growth CAGR (a)

Fiscal 2002

Fiscal 2003

Fiscal 2004

Fiscal 2005

Fiscal 2007

Fiscal 2008

Fiscal 2006

~10% Distribution Growth CAGR (a)

Run Rate

Inergy has consistently grown cash distributions & maintained strong coverage ratios

Fiscal 2009

9

Midstream Operations

10

Midstream Business

Stable, fee-based cash flow profile with little commodity price exposureNatural gas storage assets over 95% contracted with firm storageagreements(a)

Growing business representing an increasing percentage of Inergy’s run-rate EBITDA

Stable Fee-Based Cash Flows

Stable Fee-Based Cash Flows

High Quality Assets

High Quality Assets

High Return Capital

Expansion Opportunities

High Return Capital

Expansion Opportunities

Newly constructed core energy infrastructure in the Northeast and Texas in the heart of the Marcellus Shale and adjacent to the Eagle Ford ShaleNatural gas and LPG storage assets uniquely positioned with a first-mover advantage in the infrastructure development of the Marcellus ShaleTres Palacios situated near Houston and San Antonio demand markets with unparalleled flexibility and connectivity

Assets have attractive capital expansion opportunities which further enhance financial returnsWell positioned to seek additional midstream growth via acquisition

__________________ (a) Pro Forma Tres Palacios and Seneca Lake acquisitions.

11

Leading IndependentStorage Provider

Top 5 U.S. Independent Natural Gas Storage Providers

Abundant pipeline interconnections available close to storage assets

– Northeast - Millennium, Tennessee Gas Pipeline, National Fuel, Empire, Transco, Dominion

– Tres Palacios – 10 interstate and intrastate connections including common interconnects to Northeast assets

Inergy is playing a major role in the development of storage and transportation infrastructure in the Marcellus Shale

(a)

__________________ (a) Pro forma for recently announced Seneca Lake and Tres Palacios acquisitions.

Legend Rank Company Location Working

Capacity (bcf) 1 Inergy (Stagecoach, Steuben, Thomas Corners, Seneca Lake, Tres Palacios) New York, Pennsylvania, Texas 80

2 Iberdrola (Caledonia, Freebird, Katy, Waha Hub) Mississippi, Alabama, New Mexico, Texas 50

3 PAA Natural Gas Storage, L.P. (Bluewater, Pine Prarie) Michigan, Louisiana 50

4 Niska-Riverstone (Wild Goose, Salt Plains) California, Oklahoma 42

5 Alinda Capital (Nortex Gas Storage) Texas 35

(a)

12

Integrated Storage and Transportation Platform

Planned expansion to ~100 Bcf of fee-based, highly flexible gas storage capacity near demand markets (a)

Two premier gas storage platforms located near major shale plays

__________________ (a) Pro forma for recently announced Seneca Lake and Tres Palacios acquisitions.

Northeast

Midwest

Mid-Atlantic

Southeast

Florida

BarnettShale

Pemex / MGI

Eagle Ford Shale

Waha

FreeportSabine Pass

Golden Pass

Florida Gas Transmission Co

Natural Gas Pipeline CoTennessee Gas Pipeline CoTexas Eastern Transmission LPTranscontinental Gas Pipe Line

Kinder Morgan Intrastate SystemEnterprise Intrastate System

Tres Palacios Storage

LNG Terminal

Inergy Northeast Storage Hub

Northeast

Midwest

Mid-Atlantic

Southeast

Florida

BarnettShale

Pemex / MGI

Eagle Ford Shale

Waha

FreeportSabine Pass

Golden Pass

Florida Gas Transmission Co

Natural Gas Pipeline CoTennessee Gas Pipeline CoTexas Eastern Transmission LPTranscontinental Gas Pipe Line

Kinder Morgan Intrastate SystemEnterprise Intrastate System

Tres Palacios Storage

LNG Terminal

Inergy Northeast Storage Hub

Marc I and North-South projects in Northeast add deliverability and flexibility to storage platformEnhanced commercial opportunities exist from leveraging exceptional platform

13

Northeast Natural Gas Storage HubPotential 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 close September 2010-subject to regulatory approval)

Finger Lakes LPG Storage(Up to 7 m bbls LPG capacity)

North-South Project (Additional compression to provide firm wheeling services between TGP and Millennium pipelines)

Marc I Hub Line(43-mile 30” Bi-directional pipeline to provide firm transport service between TGP and Transco)

US Salt Gas Storage Development(Up to 10.0 Bcf additional gas storage capacity)

__________________ Blue font denotes expansion projects.

Gulf Coast

Canada

Rockies

Marc

ellus

Dominion

Millennium

TGP

Transco

14

Tres Palacios AcquisitionOverview

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 generation market in the U.S.

– Connected to 10 intrastate and interstate pipelines serving multiple U.S. demand markets

Significantly expands natural gas storage operations– Creates largest independent natural gas storage operator in the

U.S. with ~80 Bcf of working gas storage capacity with planned expansion to ~100 Bcf

Establishes new midstream market platform with additional growth opportunities

– Five potential additional interconnects– Rights to develop caverns leached by Texas Brine on Markham

salt domeCreates additional commercial opportunities with Inergy’s Northeast storage assets in the Northeast via common connections and customer overlapFurther strengthens and diversifies cash flow profile Expected to be immediately accretive to Inergy unitholders

27.1

38.4

47.9

0

10

20

30

40

50

60

Bcf

Current Expected Q4 2010 Expected 2014

Tres Palacios Working Gas Capacity

15

Integrated Storage and Transportation Platform

__________________ (a) Pro forma for recently announced Seneca Lake and Tres Palacios acquisitions.

Northeast

Midwest

Mid-Atlantic

Southeast

Florida

BarnettShale

Pemex / MGI

Eagle Ford Shale

Waha

FreeportSabine Pass

Golden Pass

Florida Gas Transmission Co

Natural Gas Pipeline CoTennessee Gas Pipeline CoTexas Eastern Transmission LPTranscontinental Gas Pipe Line

Kinder Morgan Intrastate SystemEnterprise Intrastate System

Tres Palacios Storage

LNG Terminal

Inergy Northeast Storage Hub

Northeast

Midwest

Mid-Atlantic

Southeast

Florida

BarnettShale

Pemex / MGI

Eagle Ford Shale

Waha

FreeportSabine Pass

Golden Pass

Florida Gas Transmission Co

Natural Gas Pipeline CoTennessee Gas Pipeline CoTexas Eastern Transmission LPTranscontinental Gas Pipe Line

Kinder Morgan Intrastate SystemEnterprise Intrastate System

Tres Palacios Storage

LNG Terminal

Inergy Northeast Storage Hub

Inergy’s dual-hub natural gas storage platform offers unparalleled deliverability and flexibility–Creates significant strategic value

16

Propane Operations

17

Propane Value Chain

Propane represents about 4% of household energy consumption in the US.

Fund

amen

tal

Sup

ply

Fund

amen

tal

Dem

and

Propane is a basic necessity to many consumers– Propane is clean burning and generally characterized by a stable demand base– Propane is transported to customers beyond the natural gas distribution network– Customers use propane to heat homes, cook food, heat water and run appliances– Typically propane has a comfort and/or economic advantage to electricity

Inergy competes in the storage, transportation, and distribution areas of the value chain

Inergy

1818

Propane OperationsA 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 service provider with little

commodity price exposure– Successful integration of 80 propane acquisitions

Centralized supply, transportation, & logistics business

– Consolidates buying power & leverages across North American infrastructure

– Lowers retail cost, protects margins, reduces risk– 200+ transport fleet facilitates linking inefficiencies

in nationwide markets

Superior profitability within peer group

19

Superior Operating Performance

Business model and intense focus on retail margin lends itself to better pricing and operational decision-making = Key Profit Driver

Acquisition integration & elimination of cost redundancies have driven significant value to cash flow line over last 4 years

Strong transportation, supply and procurement business protects margins & creates material 3rd party cash flow

__________________

$0.45

$0.60

$0.75

$0.90

$1.05

$1.20

Inergy (b) Peer Average (c)

Gross Profit/Retail Propane Gallon (a)

$0.00

$0.15

$0.30

$0.45

$0.60

$0.75

Inergy (b) Peer Average (c)

EBITDA/Retail Propane Gallon (a)

(a) Source: most recent 10-K & 10-Q filings. Data includes gross profit & EBITDA from propane operations.

(b) Inergy’s EBITDA and gross profit exclude i) non-cash gains or losses on derivative contracts associated with fixed price sales to retail propane customers, ii) non-cash compensation expenses, and iii) gains or losses on the disposal of assets as disclosed in SEC filings.

(c) Peer average includes: APU, ETP, FGP, and SPH.

(b) (c)

(c)(b)

20

Top 10 Propane Retailers Control ~38% of Market Share (b)

Domestic Retail Market for LPG is Approximately 10.0 Billion Gallons (a)

__________________ (a) Source: December 2009 American Petroleum Institute Report.(b) Source: February 2010 LPGas Magazine.(c) Cooperatives.

Independent Retailers62.0%

Amerigas9.3%

Ferrellgas8.4%

United Propane Gas0.7%MFA Oil Co. (c)

0.8%

Inergy, L.P.3.8%Energy Transfer

5.8%

Cenex (c)2.1%

Southern States (c)0.7%

Growmark (c)2.9%

Suburban Propane3.5%

Propane Industry Fragmentation

21

Financial Overview

22

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 secured debt on balance sheet $1.05 billion of senior unsecured notes – maturities 2014 – 2016

– Corporate family credit ratings S&P: BB- (Stable Outlook) Moody’s: Ba2 (Stable Outlook)

Rigorous capital investment review process – All acquisitions & expansion projects must be accretive to Distributable Cash Flow

per LP unit

Conservative approach to risk management– Cost-plus service provider in propane and primarily fee-based in midstream– No speculative commodity positions taken

23

22%

$211

32%

$239

28%

$297

33%

$319

$0.0

$50.0

$100.0

$150.0

$200.0

$250.0

$300.0

$350.0

EBI

TDA

($ m

illio

ns)

FY 2007 FY 2008 FY 2009 TTM

Adjusted EBITDA(a)

Financial Performance

$457 $502$574 $609

$0.0

$100.0

$200.0

$300.0

$400.0

$500.0

$600.0

$700.0

Tota

l Gro

ss P

rofit

($

mill

ions

)

FY 2007 FY 2008 FY 2009 TTM

Total Gross Profit

(a) Adjusted EBITDA represents EBITDA excluding the gain or loss on derivative contracts associated with retail propane fixed price sales contracts, the gain or loss on the disposal of fixed assets and long-term incentive and equity compensation expenses. Item 6 to the Partnership’s Annual Report on Form 10-K provides a historical reconciliation of net income to EBITDA and Adjusted EBITDA.

__________________

$156 $174

$222 $229

$0.0

$50.0

$100.0

$150.0

$200.0

$250.0

$300.0

DCF

($ m

illio

ns)

FY 2007 FY 2008 FY 2009 TTM

Distributable Cash Flow

% Midstream EBITDA Contribution

362332 310

334

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

Gal

lons

(mill

ions

)

FY 2007 FY 2008 FY 2009 TTM

Retail Propane Gallon Sales

24

Strong Balance Sheet Balance sheet is well-positioned for future expansion projects & acquisition growthAmple liquidity with new $525 million revolving credit facility

(a) Reflects seasonal working capital borrowings incurred subsequent to June 30, 2010 of approximately $9.8 million and approximately $64.0 million of borrowings under the revolving general partnership credit facility incurred subsequent to June 30, 2010 through September 10, 2010. Reflects the application of a portion of the net proceeds (approximately $275.8 million) from the September 2010 equity offering to repay all outstanding borrowings under the revolving general partnership and working capital credit facilities. A portion of the remaining net proceeds (approximately $127.0 million) will be used for the funding of the Tres Palacios and Seneca Lake acquisitions.

(b) Reflects the following items related to transactions contemplated by the merger agreement with Holdings: (i) repayment of approximately $26.0 million assumed from Holdings using a portion of the net proceeds from the September 2010 equity offering and (ii) a reduction to Inergy, L.P.’s partners’ capital of approximately $37.5 million.

(c) Reflects borrowings necessary to fund a portion of Tres Palacios and Seneca Lake acquisitions and related fees and expenses.(d) Assumes the notes will be issued at par.

As of June 30, 2010

($ in MMs) Actual As AdjustedAs Further Adjusted

Cash …………………………………………………………….. 5.4$ 132.4$ 5.4$ (a)(b)

Revolving working capital facility ………………………………………..12.0$ -$ (a) -$ Revolving general partnership credit facility …………………………..190.0 - (a) 118.2 (b)(c)

6 7/8% senior unsecured notes due 2014 ……………………………….425.0 425.0 425.0 8 1/4% senior unsecured notes due 2016 ………………………………..400.0 400.0 400.0 8 3/4% senior unsecured notes due 2015 ………………………………..225.0 225.0 225.0 New senior unsecured notes due 2018 …………………………………...- - 600.0 (d)

Fair value adjustment on sr. unsecured notes ……………………………..6.5 6.5 6.5 Bond premium/(discount) ………………………………………………………….(14.0) (14.0) (14.0) ASC credit agreement ………………………………………………… 6.3 - - Other debt ……………………………………………………………..23.9 23.9 23.9

Total Debt ……………………………………………………………..1,274.7$ 1,066.4$ 1,784.6$

Total Inergy, LP Partners’ Capital ……………………………………………………………..896.9$ 1,299.7$ 1,262.2$ (b)

Total Capitalization ……………………………………………………………..2,171.6$ 2,366.1$ 3,046.8$

25

__________________

Successfully Executing Diversified Business Model

Financial Performance Track Record, Mix of Business, and Disciplined Balance Sheet Management = Attractive Investment

(a) Run rate assumes Thomas Corners, Finger Lakes LPG and Marc I/NS midstream projects are implemented. Includes Seneca Lake and Tres Palacios acquisitions.

EBITDA MIX BY SEGMENT

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010E 2011E 2012E 2013E 2013E

Midstream Propane

Run Rate (a)

26

Investment HighlightsDiversified Operating Model

– A Leading National Propane Franchise – The Largest Independent Natural Gas Storage Provider in the U.S.

Strong Financial Performance Record

Midstream Energy Storage Platform Rapidly Becoming a Larger Component of Business

– Pipeline of Midstream Expansion Projects UnderwayRecord of Consistent EBITDA & Distributable Cash Flow GrowthDisciplined Consolidator of Retail Propane Industry

Underlying Businesses Characterized by Recession Resistant Stable Cash FlowsStrong Balance Sheet and Distribution Coverage

Income

Growth

Safety

27

Appendix

Nine Months Ended June 30,2007 2008 2009 2009 2010 TTM

(in MMs) (audited) (audited) (audited) (unaudited) (unaudited) (unaudited)

Retail propane gallons 362.2 331.9 310.0 271.0 294.7 333.7

Statement of Operations Data:Revenues 1,483.1 1,878.9 1,570.6 1,339.1 1,484.4 1,715.9 Cost of product sold (c) 1,026.1 1,376.7 996.9 855.4 965.0 1,106.5 Gross profit 457.0 502.2 573.7 483.7 519.4 609.4

Expenses:Operating and administrative (c) 247.8 265.6 279.6 212.6 230.2 297.2 Depreciation and amortization 83.4 98.0 115.8 79.3 117.7 154.2

Loss on disposal of assets 8.0 11.5 5.2 4.1 5.8 6.9 Operating income 117.8 127.1 173.1 187.7 165.7 151.1

Other income (expense):Interest expense, net (52.0) (60.9) (69.7) (52.1) (66.9) (84.5)Other income 1.9 1.0 0.1 - 0.9 1.0

Income before income taxes and interest of non-controlling partners in ASC 67.7 67.2 103.5 135.6 99.7 67.6

Provision for income taxes (0.7) (0.7) (0.7) (0.4) - (0.3)

Net Income 67.0 66.5 102.8 135.2 99.7 67.3 Interest of non-controlling partners in ASC's consolidated net income - (1.4) (1.4) (1.0) (0.7) (1.1)

Net income attributable to partners 67.0 65.1 101.4 134.2 99.0 66.2

28

Historical Financial Overview &Non-GAAP Reconciliations

(a) (a)

(a) Includes a ($0.6) million, a $0.1 million, a $1.4 million, and a ($0.8) non-cash FAS 133 charge/(gain) associated with fixed-price propane sales contracts to retail customers in FY2007, FY2008, FY2009, and Trailing Twelve Months (or TTM), respectively.

(b) Includes a $1.5 million and a ($0.7) million non-cash FAS 133 charge/(gain) in the nine months ended June 30, 2009, and the nine months ended June 30, 2010, respectively.(c) The financials reflect a reclassification of transportation costs of $4.4 million for the year ended FY2007 from a component of operating and administrative expense to other cost of product

sold.

__________________

(a) (a)(b) (b)

29

(a) Adjusted EBITDA excludes i) non-cash gains or losses on derivative contracts associated with fixed price sales to retail propane customers, ii) long-term incentive and equity compensation expense, and iii) gains or losses on the disposal of assets as disclosed in Inergy, L.P.’s SEC filings.

(b) ITDA – Interest, taxes, depreciation and amortization.(c) These amounts differ from those previously presented as a result of our adoption of FASB Accounting Standards Codification Subtopic 210-20 on October 1, 2008. In conjunction with the

adoption of this standard, we elected to change our accounting policy for derivative instruments executed with the same counterparty under a master netting agreement. This change in accounting policy has been presented retroactively.

__________________

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 attributable to partners 67.0 65.1 101.4 134.2 99.0 66.2 Interest of non-controlling partners in ASC's consolidated ITDA (b) - (0.8) (0.5) (0.4) (0.2) (0.3)Interest expense, net 52.0 60.9 69.7 52.1 66.9 84.5 Provision for income taxes 0.7 0.7 0.7 0.4 - 0.3 Depreciation and amortization 83.4 98.0 115.8 79.3 117.7 154.2 EBITDA 203.1 223.9 287.1 265.6 283.4 304.9 Non-cash (gain) loss on derivative contracts (0.6) 0.1 1.4 1.5 (0.7) (0.8)Loss on disposal of assets 8.0 11.5 5.2 4.1 5.8 6.9 Long-term incentive and equity compensation expense 0.7 3.5 3.1 2.2 4.9 5.8 Transaction costs - - - - 2.1 2.1 Adjusted EBITDA(a) 211.2 239.0 296.8 273.4 295.5 318.9 Balance Sheet Data (end of period):Cash 7.7 17.3 11.6 5.4 5.4 - Working capital facility 31.0 65.0 27.2 12.0 12.0 General partnership facility 40.0 182.0 - 190.0 190.0 Senior unsecured notes 625.0 825.0 1,050.0 1,050.0 1,050.0 Fair value hedge adj. on sr. unsecured notes (2.6) 1.9 5.6 6.5 6.5 Net bond premium/(discount) - 3.8 (16.4) (14.0) (14.0)ASC credit agreement - 10.9 8.3 6.3 6.3 Other debt 16.8 18.0 18.6 23.9 23.9 Total debt 710.2 1,106.6 1,093.3 1,274.7 1,274.7 - Net debt 702.5 1,089.3 1,081.7 1,269.3 1,269.3 - Total Partners' capital 741.2 641.4 803.7 898.0 898.0 Total assets(c) 1,722.9 2,077.3 2,133.1 2,345.2 2,345.2

30

Gas Storage Facility Overview

Located ~150 miles northwest of New York City– Closest storage facility to NYC market

Working gas = 26.25 BcfHigh performance, multi-cycle gas storage (2-3x avg.)100% contracted with WAVG contracts through September 2014; primarily investment grade companiesConnected to TGP’s 300 Line and Millennium Pipeline

– Enhanced deliverability at Stagecoach with wheeling opportunities between TGP and Millennium

StagecoachLocated ~40 miles from Stagecoach in Steuben County, NYWorking gas = 6.2 BcfFacility-owned 12.5 mile pipeline connected to Dominion’s Woodhull line100% contracted through 2011 with investment grade counterpartiesOpportunity exists to expand connectivity to Thomas Corners, TGP & MillenniumCost of service rate structure

Steuben Gas Storage

Located ~40 miles from Stagecoach in Steuben County, NYDeveloping 7.0 Bcf working gas capacityConnections to TGP, Millennium, and Corning Natural Gas pipelines100% contracted with 5 year term agreementsPlaced into service; full commercial operations began Nov-2009

– Construction completed under budget & 5 months ahead of schedule

Thomas CornersLocated ~40 miles from Stagecoach in Schuyler County, NYWorking gas = 2.0 BcfFacility-owned 20-mile West Pipeline and 38-mile East Pipeline

– Connections to Dominion Pipeline with potential connections to the Millennium and Empire connector pipelines and to Inergy’s Stagecoach North lateral pipeline

Facility expected to be fully-contracted with investment grade counterpartiesTransaction expected to close Summer 2010; Subject to regulatory approval

Seneca Lake Gas Storage

31

Tres Palacios Asset Overview

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 complete; FERC and TRC authorizations to place in-service received− $18 million incremental capex (including base gas)

Cavern 4 provides additional 9.5 Bcf (expected in-service by or before 2014)− $67.5 million incremental capex to complete (including base gas) at attractive investment returns

High deliverability characteristics (6+ turns)− Maximum withdrawal capacity – 2.5 Bcf/day; maximum injection capacity – 1 Bcf/day

Compression - 24,000 HP existing (48,000 HP permitted)– 40 mile, 24” bi-directional header system is connected to 10 intrastate and interstate pipelines

serving Texas markets as well as U.S. markets in the Northeast, Midwest, Southeast, Mid-Atlantic and Mexico

Rights to develop all caverns leached by Texas Brine on Markham salt domeFive potential future additional interconnects− Trunkline, Crosstex, Gulf South, Dow Pipeline and KM Texas

Asset Characteristics

Future Growth Opportunities

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$0.00$0.20$0.40$0.60$0.80$1.00$1.20$1.40$1.60$1.80

2003 2004 2005 2006 2007 2008 2009 YTD 2010( 9% Warmer (a) ) (7% Warmer (a) )( 6% Warmer (a) ) ( 10 % Warmer (a) )( 6% Colder (a) )

Management has demonstrated its ability to achieve consistent margin performance in distinctly different operating environmentsIntense focus on proactively monitoring key performance metricsPropane operations consistently deliver stable, predictable cash flow

(a) Based on NRGY service territory.(b) Retail propane gross profit divided by retail propane gallons. Excludes non-cash gains/losses on derivative contracts.(c) Quarterly average Mt. Belvieu price.

__________________ Gross Margin / Gallon (b) Mt. Belvieu Propane Cost / Gallon (c)

Consistent Margin Performance

( 7 % Warmer (a) ) (0% Colder (a) ) (5% Colder (a) )

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Committed to Generating Industry-Leading Returns to Our Investors