Citigroup

One-on-One MLP Conference

August 22-23, 2012

2

Forward Looking Statements

NYSE: NRGY, NRGM

Except for the historical information contained herein, the matters discussed in this presentation (e.g., our growth outlook and forecasted economics) are forward-looking statements that involve risks and uncertainties. These risks and uncertainties include, among other things, the general level of petroleum product demand and the availability of propane and other natural gas liquid supplies, the demand for high deliverability natural gas storage capacity, our ability to successfully implement our business plan, including the placement of our expansion projects in-service in a timely manner, our ability to generate available cash for distribution to unitholders, and other factors discussed in the Company’s filings with the Securities and Exchange Commission including Forms 10-K, 10-Q, and 8-K.

Furthermore, any forward-looking statements presented are expressed in good faith and are believed to have a reasonable basis as of the date of this presentation. Inergy assumes no responsibility to update this information and it may be superseded by later information.

Forward-looking statements are not guarantees of future performance or an assurance that our current assumptions and projections are valid. Actual results may differ materially from those projected.

3

Inergy Snapshot

Inergy is a geographically diverse midstream energy company with a

consolidated enterprise value of ~$3.6 billion(a)

__________________ (a) Enterprise value as of 8/15/2012.

� Midstream operations include integrated gas and NGL infrastructure operations in NY, PA,

CA & TX− 79 Bcf high-deliverability natural gas storage operations with expansion potential to ~100 Bcf

− Critical pipeline assets interconnecting storage to premium supply and demand markets

− Coast to coast NGL storage, supply, and logistics operation

4

Recent Events

December 2011 – Completed Initial Public Offering of Inergy Midstream, L.P. (NYSE:NRGM)– Sold 18.4 million units representing ~25% ownership to the public and NRGY retains ownership of remaining ~75% of outstanding L.P. units and 100% of incentive distribution rights

– First step to achieving pure play business models to unlock embedded value and improve the cost of capital and financial flexibility of growth business

May 2012 - Completed the Drop Down of US Salt from NRGY to NRGM for $192.5 million– US Salt transaction efficiently strengthened NRGY’s balance sheet and complements NRGM’s existing natural

gas storage and transportation platform

– Total consideration paid to NRGY comprised of $182.5 million in cash and $10 million NRGM common units

– NRGM cash consideration funded through borrowings on its $600 million credit facility which was upsized in April

August 2012 – Completed Sale of Retail Propane Operations to Suburban Propane Partners, L.P. (“SPH”) for $1.8 billion– Completed separation of propane business from midstream operations

– Significantly deleverages NRGY balance sheet

– Announced the distribution of ~14.1 million SPH common units to occur September 14

Recent Transactions Accelerate Inergy’s

Transformation to a Pure Play Midstream MLP

5

Investment Highlights

Stable, fee-based cash flow profile

Natural gas storage and transportation assets predominantly

contracted with firm agreements

Stable Fee-Based

Cash Flows

High Quality

Assets

Expansion

Opportunities

Core natural gas infrastructure in the Northeast and Texas in the heart

of the Marcellus Shale and adjacent to the Eagle Ford Shale

NGL assets uniquely positioned for the infrastructure development of

the Marcellus, Utica, Eagle Ford and Monterrey Shales

Assets have attractive built-in capital expansion opportunities which

further enhance financial returns

Well-positioned to seek additional midstream growth via acquisitions

Flexible Financial

Structure &

Investor Alignment

Two equity securities coupled with low leverage to facilitate growth

objectives

Strong investment alignment with management owning ~ 20% of

Inergy, L.P. equity

6

__________________ (a) Pro forma for Marc I pipeline project.(b) Pro forma for 2.1 million bbls Watkins Glen NGL storage development project.

NRGY positioned as pure-play midstream MLP

− NRGY assets consist of NRGM common units, IDRs, and retained midstream operating businesses

− Retained midstream assets positioned for future opportunities

Strong balance sheet and financial flexibility

− Expect lower overall cost of capital at NRGY

NRGY & NRGM Looking Ahead

Inergy, L.P. (NYSE: NRGY)

−LP Interest & IDRs of NRGM

−Tres Palacios Gas Storage

−Coast-to-Coast NGL Supply and

Logistics Operations

Inergy Midstream, L.P. (NYSE: NRGM)

− 41 bcf Nat Gas Storage

−~1 bcf/d Gas Transportation (a)

− 3.6 mmbbls NGL Storage (b)

− Salt production of >300K

tons per year

~75% Limited

Partner InterestIncentive

Distribution Rights

NRGM is a growing midstream business with strong balance sheet and attractive cost of capital

− Stable fee-based cash flows generated from strategically located assets provide solid foundation

Highly visible growth prospects

− Existing built-in organic expansion projects provide visible growth

− Drop down and 3rd party acquisition opportunities further enhance growth potential

7

Inergy Strategy

Significant Service Provider in Core Midstream Markets

– Midstream operations focused on fee-based; long-term contract-driven cash flow

– Leverage existing relationships in our natural gas and NGL platforms in the Northeast, Texas and California which are adjacent to prolific shale plays and serve premium demand markets

Continue Growth Through Capital Expansion Projects & Acquisitions

– Execute capital expansion projects around existing asset base

– Pursue and evaluate complementary midstream opportunities

– Seek to further strengthen the long-term growth profile of the partnership

Disciplined Capital Investment

Deliver Operational Excellence

8

Midstream Operations

Overview

9

Natural Gas & NGL

Storage and Transportation Platform

Expansion potential to ~100 Bcf of highly flexible

gas storage capacity near premium demand

markets coupled with pipeline transportation that

adds deliverability and flexibility to platform

NGL operations positioned for participation in

the infrastructure growth in the liquids rich

Marcellus, Utica, Eagle Ford and Monterrey

shale plays

Natural Gas and NGL assets situated between major shale plays and premium demand markets

N.E. Storage and Transportation

Platform (via 75% ownership of NRGM)

� 41.0 Bcf of current gas storage capacity

� 1.5 mm bbls of current NGL storage capacity

� Situated near largest demand market in U.S.

� Storage and transportation expansion opportunities

available

Texas Storage and

Transportation Platform� 38.4 Bcf of current storage capacity

� Highly liquid storage point with 10

interconnects (ICE Pooling Point)

� Storage and transportation expansion

opportunities available

Inergy Services–

West Coast NGL� 24 mm gallon NGL storage facility,

25 mmcf/d gas processing plant,

8,000 bbl/d isomerization unit, &

12,000 bbls/d NGL fractionation

plant

� Located near Elk Hills, and LA & SF

refinery basins

Inergy Services–NGL Storage, Supply, and Logistics� Coast to coast NGL capabilities support midstream operations and provide 3rd party NGL producer and end user services

� Large transportation fleet able to solve supply/demand imbalances

� Supply and marketing agreements in key liquids rich shale plays

NRGY Operating Assets

NRGM Operating Assets

Legend

10

Northeast Natural Gas Storage and

Transportation Platform

Potential for 51 Bcf(a) natural gas storage capacity within 200 miles of New York City

Rockies

Northeast storage &

transportation hub with access

to multiple gas and NGL

supply sources and pipeline

interconnects into premium

demand markets

Asset location, contract tenor,

and attractive customer mix

helps insulate business from

short-term pressure on gas

storage fundamentals

Platform consists of high

quality assets integrated

together to buffer supply and

demand imbalances in natural

gas & NGL markets

(a) Includes 0.6 Bcf expansion at Seneca Lake and development of ~10 Bcf of natural gas storage capacity available at US Salt.

__________________

11

Texas Natural Gas Storage and

Transportation Platform

Tres Palacios - located ~100 miles southwest of Houston in Matagorda County, TX

38.4 Bcf of working gas capacity with expansion potential to 47.9 Bcf– Situated near the Eagle Ford Shale which is currently producing gas volumes of up to 1.0 bcf/d–resulting from strong NGL production

– Facility connected to 10 intrastate and interstate pipelines serving multiple U.S. demand markets and Texas, the largest gas-fired power generation market in the U.S.

– NGL and gas production is currently straining pipeline takeaway capacity and filling supply area storage–expected to increase the value of physical storage capacity

Established new midstream market platform with additional growth opportunities– Header extension to Copano Houston Central plant (expected in-service 2H 2012)

– Up to five potential additional interconnects

– Natural gas and liquids storage rights to develop caverns leached by Texas Brine on Markham salt dome

38.4

47.9

0

10

20

30

40

50

60

Bcf

Current Capacity Expected Future Capacity (with

cavern 4 expansion)

Tres Palacios Working Gas Capacity

12

NGL Supply & Logistics

Operations leverage Inergy’s NGL assets

− West Coast NGL facility located near

Bakersfield, CA between major West Coast

demand centers and adjacent to Elk Hills● NGL Storage and transportation, NGL fractionation and isomerization and natural gas processing

− Commercial management of NGL storage

facilities

● Finger Lakes ● Bath ● South Jersey Terminal ● Seymour

Generates meaningful 3rd party cash flow

through supply and marketing agreements

− Provide NGL flow assurance to refiners/gas

processors and producers through 100% keep

dry and other agreements around key liquids rich

shale plays

13

Gas Storage Facilities

StagecoachThomas

CornersSteuben

Seneca

Lake

Tres

Palacios

26.3 Bcf working gas capacity

5.7 Bcf operational working gas capacity (certificated for 7 Bcf)

6.2 Bcf working gas capacity

1.5 Bcf working gas capacity

38.4 Bcf working gas capacity

95% contracted with average maturity to 2016

100% contracted through March 2015

100% contracted to 2013

100% contracted until 2016

59% contracted through 2013 (~90 % including current

contracted parks)

Market-based rates Market-based rates Cost-of-service rates (filed for market-based rates)

Market-based rates Market-based rates

Connected to TGP and Millennium (directly to Transco upon

completion of Marc I)

Connected to TGP and Millennium (indirectly to Dominion

through Steuben)

Connected to Dominion (indirectly to TGP & Millennium

through Thomas Corners)

Connected to Dominion and Millennium

Connected to 10 intrastate and interstate pipelines (including Transco, TGP

and KMP-Tejas)

FERC regulated firm transportation and wheeling services between TGP, Millennium and all points in between− 325,000 dth/d capacity - 100% contracted with 5 year terms− Phase II may add additional firm transport capacity

Future connection to Dominion would potentially allow access to Iroquois Pipeline via Dominion Iroquois expansion

14

North-South Pipeline

MARC I Pipeline ProjectFERC regulated firm transportation and wheeling services between TGP, Transco and all points in between− 550,000 dth/d capacity -100% contracted with 10 year terms

− 39 mile, 30 inch bi-directional gas pipeline located atop the Marcellus Shale

− Expected in-service date by October 1, 2012

Transportation Overview

Proposed ~200 mile 30”-36” natural gas pipeline project with up to 1.2 Bcf/d capacity extending from southern end of Marc I pipeline to Dominion’s Cove Point LNG pipeline− Jointly developed by NRGM, and subsidiaries of UGI and WGL, with each sponsor owning equal interests

− UGI and WGL expected to contract 40-50% of capacity− Commonwealth expected to provide Marcellus gas production to major demand markets including central and eastern Pennsylvania, metro areas of Philadelphia, Baltimore, Washington, D.C. and the Delmarva Peninsula

Commonwealth Pipeline Project

NGL Storage Overview

Bath Facility Watkins Glen Project

15

NGL Storage Facilities

Position Inergy as a key NGL storage provider in the Marcellus Shale

Provide value to our customers with significant storage capacity and

multiple distribution channels to Northeast demand markets

Potential NGL storage expansion opportunity exists at Tres Palacios

Capacity of 2.1 mm bbls of NGL

storage

Located ~60 miles from

Stagecoach

Long-term contract for 2 mm bbls

signed with investment-grade

anchor tenant

Will connect to Teppco pipeline;

rail and truck terminal facilities

Expected in-service calendar 1H

2013, subject to regulatory approval

1.5 mm bbls of NGL storage

Located ~60 miles from

Stagecoach

100% contracted with maturity to

2016

Nine separate caverns allow for

segregation of multiple streams

Rail and truck terminal facilities

Expansion potential with US Salt

as brine outlet

16

Positioned for Future Opportunity

− Watkins Glen NGL Storage

− North-South (in-service)

− Marc I Pipeline (under construction)

− Commonwealth Pipeline

− Tres Palacios Header Extension (FERC approval pending)

− Tres Palacios Storage Expansion

− Seneca Lake Gas Storage Expansion(up to 10 bcf at US Salt)

Inergy’s recent events provide meaningful progress to positioning the company for the creation of long-term value for investors

Inergy’s pure play midstream operations are strategically well-positioned

− Midstream operations anchored by two gas storage and transportation platforms that are positioned adjacent to premier shale plays and premium demand markets

− Core competency in NGL storage, supply, and logistics capable of meaningful contribution to Inergy’s operations

− Closing of the announced retail propane contribution transaction strengthens Inergy’s balance sheet for future growth opportunities

High-return organic projects move the partnership forward and further expand Inergy’s operations

17

Financial Overview

18

Financial Strength

NRGY NRGM

Strong and flexible capital structure– $550 million revolver maturing July 2016– Corporate family credit ratings of BB-/Ba2– Low balance sheet leverage (~1.6x debt-to-EBITDA)

Distributable cash flow generated from

predominantly fee-based businesses

and predictable cash distributions from

NRGM with growth potential

Board of directors authorized the

repurchase of up to $100 million of

NRGY common units

Strong balance sheet with liquidity– $600 million revolver maturing December 2016– ~2.3x debt-to-EBITDA with ample liquidity to execute growth strategy

– Long-term debt-to-EBITDA target of3.0x-3.5x

Fee-based operations primarily

supported by fixed reservation contracts

under multi-year agreements with credit

worthy counterparties

Investment grade credit metrics and

cash flow profile

Recent events provide strong financial position from which to grow

Capitalization

19

__________________ (a) Reflects approximately $14.1 million borrowed to settle seller non-compete obligations in connection with the retail propane transaction with Suburban, $36.5 million borrowed to fund

Inergy's portion of the bond exchange consent payment, and other transaction expenses and working capital adjustments associated with the retail propane transaction with Suburban.

(b) Reflects the exchange and retirement of $1.189 billion of outstanding NRGY senior notes for $1.0 billion newly issued Suburban senior notes and cash paid directly to noteholders.

(c) Reflects the retirement of $14.1 million of seller non-compete obligations and approximately $10.8 million of other debt related to swap and bond premium obligations in connection with the retail propane transaction with Suburban.

(d) Reflects the pro forma impact of the receipt of 14.2 million Suburban common units and the subsequent distribution of approximately 14.1 million of those common units to NRGY unitholders in connection with the retail propane transaction.

(e) Excludes the impact of transaction expenses and other charges related to the retail propane and US Salt transaction.

(f) Calculated in accordance with the revolving credit facility.

NRGY NRGMAs of June 30, 2012

($ in millions)

NRGY

Standalone

Preliminary

NRGY As

Adjusted

NRGM

Standalone

Preliminary

Cash ……………………………………………………………………..4.9$ 4.9$ -$

Revolving general partnership credit facility ………………….. 170.2 246.8 (a)

324.2

8 3/4% senior unsecured notes due 2015 ………………………. 0.8 0.8 -

7 % senior unsecured notes due 2018 …………………….…………………600.0 10.1 (b)

-

6 7/8% senior unsecured notes due 2021 ……………………………..600.0 0.6 (b)

-

Net bond/swap premium 10.8 - (c)

Other debt ………………………………………………………16.0 1.9 (c)

-

Total Debt …………………………………………………………….1,397.8$ 260.1$ 324.2$

Partners’ Capital ……………………………………………………………..1,229.9$ 1,264.7$ (d)(e)

567.3$

Total Capitalization ………………………………………………2,627.7$ 1,524.9$ 891.5$

Total Debt / PF TTM Adjusted EBITDA (f)

4.9x 1.6x 2.3x

Visible Expansion Projects

High-return midstream expansion projects generate substantial cash flow growth

Expansion projects supported by long-term contracts

__________________ (a) These figures regarding growth potential are based on various forward-looking assumptions made by the management. While Inergy believes that these assumptions are reasonable, it

can give no assurance that such results will materialize.

Expansion

Projects (a)Total Capital

Investment

Expected

Run-Rate Multiple

Expected

In-Service

MARC I Pipeline $240 million 7.2x October 2012

Watkins Glen NGL

Expansion$65 million 7.0x 1H 2013

US Salt Gas Storage

Development~$85 million 6.0x 2015

Commonwealth

Pipeline Project

~$1.0+ billion

(1/3 NRGM proportional share)TBD 2H 2015 – 1H 2016

NRGY

Projects

West Coast

Terminal Expansion$21 million 5.5x In-Service

Tres Palacios

Header Extension$30 million 6.5x 2H 2012

NRGM Projects

20

Additional projects:− North-South Throughput Expansion

− Marc I Pipeline Throughput Expansion

− Tres Palacios Cavern 4 Expansion

− Tres Palacios Liquids Storage

21

Investment Highlights

Stable, fee-based cash flow profile

Natural gas storage and transportation assets predominantly

contracted with firm agreements

Stable Fee-Based

Cash Flows

High Quality

Assets

Expansion

Opportunities

Core natural gas infrastructure in the Northeast and Texas in the heart

of the Marcellus Shale and adjacent to the Eagle Ford Shale

NGL assets uniquely positioned for the infrastructure development of

the Marcellus, Utica, and Eagle Ford Shales

Assets have attractive built-in capital expansion opportunities which

further enhance financial returns

Well-positioned to seek additional midstream growth via acquisitions

Flexible Financial

Structure &

Investor Alignment

Two equity securities coupled with expected low leverage to facilitate

growth objectives

Strong investment alignment with management owning ~ 20% of

Inergy, L.P. equity

22

Appendix

23

Storage & Transportation

Contract Characteristics

Strong demand for our services drives long-term contracted revenues

Highly creditworthy customers create further cash flow stability

Confidential Information

(a) Stagecoach is 95% contracted based on injection capacity. Thomas Corners is 100% contracted based on current operational capacity.(b) Steuben currently contracted under 1 year evergreen provision with a 12 month cancellation notice. Contracts are expected to be renewed under multi-year contracts upon receipt of market

based rate structure.(c) Excludes ~14.0 bcf of interruptible and firm park contracts currently in place.

__________________

Utility/LDC

50%

Marketer

32%

Producer

3%

Power

Generator

3%

Integrated

Oil&Gas

12%

Storage Customer Type

Majority of customers are Utilities/LDCs with investment

grade ratings

Storage Contract Profile

Transportation

Capacity

(MMcf/d)

Contracted

Transportation

Capacity

(MMcf/d)

%

Contracted

Avg

Maturity

Weighted

Avg.

Tenor

MARC 1 550.00 550.00 100% Jul-22 9.9

N/S 325.00 325.00 100% Oct-16 4.1

East Intrastate 30.00 30.00 100% Mar-21 8.6

Total 905.00 905.00 100% May-20 7.8

Transportation Contract Profile

Storage

Capacity

(Bcf)

Contracted

Capacity

(Bcf)

Adj.

Contracted

% (a)

Avg Maturity

Weighted

Avg.

Tenor

Stagecoach 26.25 21.35 95% 2/10/16 3.5

Thomas Corners 7.00 5.70 100% 3/31/15 2.6

Steuben (b)

6.20 6.20 100% 3/31/13 0.6

Seneca Lake 1.46 1.46 100% 1/15/16 3.4

Tres Palacios (c)

38.40 22.50 59% 11/27/13 1.3

Total 79.31 57.21 78% 11/5/14 2.2

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Commonwealth Pipeline Overview

Proposed ~200 mile 30”-36” natural gas pipeline project with up to 1.2 bcf/d capacity extending from southern end of Marc I pipeline to Dominion’s Cove Point LNG pipeline

“Market-pull” project linking Marcellus/Utica gas production to major demand markets

− Markets served would include central and eastern Pennsylvania, metro areas of Philadelphia, Baltimore, Washington, D.C. and the

Delmarva Peninsula

− Offers flexible access to high growth markets traditionally served by long-haul pipelines

Jointly developed by NRGM, and subsidiaries of UGI and WGL, with each sponsor owning equal interests

− UGI and WGL expected to contract 40-50% of capacity

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Committed to Generating Industry-Leading Returns to Our Investors