Investor PresentationMarch 1, 2010

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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, market conditions, weather risks 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 Inergy assumes no responsibility to update this information and it may be superceded by later information.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.

Forward Looking StatementsNasdaq: NRGY, NRGP

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Investment HighlightsDual Platform Operating Strategy

– A Leading National Propane Franchise – Fee-based Midstream Business Anchored by Northeast U.S. Gas Storage

Strong Financial Performance Record

Midstream Energy Storage Platform Rapidly Becoming a Larger Component of Business

– Manageable 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 CoverageRecent Capital Markets Activity Provides Ample Balance Sheet Liquidity to Execute on High-Return Expansion Projects

Income

Growth

Safety

4

Inergy Snapshot Inergy, L.P. is a geographically diverse retail propane and midstream energy business− ~$4.8 billion combined partnership enterprise value with ~$301 million TTM Adj. EBITDA(a)

Propane Midstream

__________________

Balanced Business Model (b)

Midstream~37%

Propane~63%

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

40 Bcf high-deliverability natural gas storage operations located in New York, potentially expandable to over 52 Bcf

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 December 31, 2009. Enterprise value as of February 19, 2010.(b) Forecast run rate 2010 Adjusted EBITDA.

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$1.18

$1.45$1.60

$1.91

$0.90

$2.14

$1.23

$2.28

$1.77

$2.44$2.29

$2.60

$2.86$2.74

$3.76

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

Distinguished DistributionPerformance

(a) Annualized paid distributions.

__________________

33 Consecutive Quarterly Distribution Increases NRGY

NRGP

~37% Distr

ibution Growth CAGR (a

)

Fiscal 2002

Fiscal 2003

Fiscal 2004

Fiscal 2005

Fiscal 2007

Fiscal 2008

Fiscal 2006

~11% Distribution Growth CAGR (a)

Run Rate

Two Securities Offer a Compelling Combination of Income & GrowthInergy has consistently grown cash distributions & maintained strong coverage ratios

Fiscal 2009

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Public GP Provides 2nd

Strategic Source of Equity Capital

Operating Subsidiaries

100% ownership

26.9% Limited Partner Interest

92.2% Limited Partner Interest

7.1% Limited Partner Interest

Incentive Distribution

Rights

0.7% General Partner Interest

Inergy Holdings, L.P.

NASDAQ: NRGPEnterprise Value~$1.4 B (a)

Inergy, L.P.NASDAQ: NRGY

Enterprise Value~$3.4 B (b)

PublicUnitholders

& Others

73.1% Limited Partner Interest

__________________ (a) Inergy Holdings, L.P. equity market value as of February 19, 2010 and net debt balances as of December 31, 2009. (b) Inergy, L.P. equity market value as of February 19, 2010 and net debt balances as of December 31, 2009. The trading value of Inergy, L.P. units is grossed-up to reflect ~0.7% general partner

interest.

Offers Inergy Access to Both Growth & Income Oriented Investor Bases

NRGP HighlightsManagement aligned with debt and equity investors through ownership of ~73% of NRGP equity and ~28% of combined NRGY and NRGP equity market capitalizationEquity market capitalization of ~$1.4 billion

– Modest $31.5 million of debt NRGP currency can be used strategically as a second source of equity capital to fund NRGY growth

NRGY HighlightsDemonstrated access to public equity and debt capital marketsTotal Funded Debt / Consolidated EBITDA ~ 3.5 x

PublicUnitholders

& Others

Management& Others

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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

– Executing toward an integrated energy storage hub in the Northeast with access to all major pipelines and over 50 Bcf of gas storage

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

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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

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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

– 850 (25%) redundant positions eliminated – 1,200 (30%) surplus vehicles eliminated– Average fleet age improved by 30%

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)

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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.

Over 5,000 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

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Midstream Business

Stable, fee-based cash flow profile with no commodity price exposureGrowing business representing an increasing percentage of Inergy’s run-rate EBITDANE Midstream assets 100% contracted with long-term agreements

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 inthe heart of the Marcellus ShaleNatural gas and LPG storage assets uniquely positioned with a first-mover advantage in the infrastructure development of the Marcellus Shale

Assets have capital expansion opportunities which further enhance financial returns and support distribution growthWell positioned to seek additional midstream growth via acquisition

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Leading Independent Storage Provider

Top 5 U.S. Independent Natural Gas Storage Providers

Inergy is among the largest independent natural gas storage providers and the largest independent located in the Northeast demand marketAbundant pipeline interconnections available close to storage assets (Millennium, Tennessee Gas Pipeline, National Fuel, Empire, Transco, Dominion)Inergy is playing a major role in the development of storage and transportation infrastructure in the Marcellus Shale

Legend Rank Company Location Working

Capacity (bcf) 1 Iberdrola (Caledonia, Freebird, Katy, Waha Hub) Mississippi, Alabama, New Mexico, Texas 50

2 Inergy (Stagecoach, Steuben, Thomas Corners, Seneca Lake) New York, Pennsylvania 42

3 Niska-Riverstone (Wild Goose, Salt Plains) California, Oklahoma 41

4 Plains All American (Bluewater, Pine Prarie) Michigan, Louisiana 39

5 Arcapita (Falcon Storage) Texas 35

(a)

__________________ (a) Pro forma for recently announced Seneca Lake acquisition expected to close mid-2010.

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Premier Energy Storage Platform

4 Assets & 3 Expansion Projects Located Atop the Marcellus Shale

Opportunity Exists to Operate as an IntegratedStorage HubResults in Increased Commercial Opportunities in Region

Natural Gas Storage & Transportation LPG Storage• Stagecoach (26.3 Bcf capacity) • Finger Lakes LPG (7.0 mm bbl capacity)

• Steuben Gas Storage (6.2 Bcf capacity)

• Thomas Corners Gas Storage Facility (7.0 Bcf Capacity)

• Seneca Lake Gas Storage (2.0 Bcf Capacity–Expected to close Summer 2010)

• Marc 1 Hub Line (43-mile 30” Bi-directional lateral)

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

• US Salt Gas Storage Development (Up to 10.0 Bcf Capacity)

Blue font denotes future expansion opportunities__________________

Underway

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Integrated Northeast Storage Hub

Potential for over 52 Bcf of working gas storage capacity contained in an ~40 mile radius within 200 miles of New York CityLargest independent natural gas storage operator in NEAbundant interconnections available Enhanced commercial opportunities exist from leveraging exceptional platformExecuting towards an integrated NE storage hub

Midstream assets strategically located atop the prolific Marcellus Shale

(a)

__________________ (a) Seneca Lake acquisition expected to close Summer 2010.

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Financial Performance

$457 $502$574 $575

$0.0

$100.0

$200.0

$300.0

$400.0

$500.0

$600.0

Tota

l Gro

ss P

rofit

($

mill

ions

)

FY 2007 FY 2008 FY 2009 TTM

Total Gross Profit

(a) Reflects the additional borrowings under our revolving general partnership credit facility incurred to fund the recent acquisitions, to fund our growth and other capital expenditures in our midstream business.

(b) Reflects the repayment of approximately $200.0 million of outstanding indebtedness under the revolving general partnership facility from the issuance of common units in January 2010.(c) 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.

__________________ % Midstream EBITDA Contribution

22%

$211

32%

$239

28%

$297

31%

$301

$0.0

$50.0

$100.0

$150.0

$200.0

$250.0

$300.0

EBI

TDA

($ m

illio

ns)

FY 2007 FY 2008 FY 2009 TTM

Adjusted EBITDA(c)

December 31, 2009As Adjusted

Cash …………………………………………………………………………15.8$

Revolving working capital facility ………………………………………..25.0$ Revolving general partnership credit facility …………………………..111.0 (a)(b)

Senior unsecured notes 1,039.4 Other debt ……………………………………………………………..33.5

Total Debt ………………………………………………………………………1,208.9$

Total Partners Capital …………………………………………………………….1,003.0$ (a)(b)

Total Capitalization ……………………………………………………………2,211.9$

FY 2010 Adjusted EBITDA Guidance Range $340 - $350

Long-term Debt / FY 2010 Midpoint of Forecast Adjusted EBITDA Guidance

3.4x

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Investment HighlightsDual Platform Operating Strategy

– A Leading National Propane Franchise – Fee-based Midstream Business Anchored by Northeast U.S. Gas Storage

Strong Financial Performance Record

Midstream Energy Storage Platform Rapidly Becoming a Larger Component of Business

– Manageable 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 CoverageRecent Capital Markets Activity Provides Ample Balance Sheet Liquidity to Execute on High-Return Expansion Projects

Income

Growth

Safety

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Committed to Generating Industry-Leading Returns to Our Investors