CRESTWOOD EQUITY PARTNERS LP

Investor FAQs

1.What is Inergy’s strategy for growth?
2.Inergy L.P. is a Master Limited Partnership (MLP). What does that mean?
3.Can you explain the difference between a distribution and a dividend?
4.How will I be taxed on common units when I sell?
5.Can I purchase Inergy units within my IRA account?
6.What is the amount of the distribution on limited partner units?
7.How often are distributions paid?
8.How do I buy partnership units in Inergy?
9.Can I purchase units directly from Inergy?
10.Does Inergy have a Distribution Reinvestment Plan (DRIP)?
11.How can I get more information?
1.What is Inergy’s strategy for growth?
 Our primary objective is to increase distributable cash flow for our unitholders, while maintaining the highest level of commitment and service to our customers. Inergy has built a substantial midstream business through the acquisition and development of additional energy storage and transportation assets. Inergy’s midstream operations are strategically located to take advantage of the build out of the energy infrastructure in the U.S., and the company expects to continue to execute its objective to grow this business in the future.

2.Inergy L.P. is a Master Limited Partnership (MLP). What does that mean?
 MLP's are publicly traded partnerships that are managed similar to corporations. Generally, MLPs pay out a higher amount of cash flow as distributions (dividends) to unitholders (shareholders) because net income is taxed only at the investor level instead of at both the corporate and investor levels.

3.Can you explain the difference between a distribution and a dividend?
 As a unitholder in Inergy L.P., you are a limited partner and are entitled to receive a cash distribution as a return on your investment. Unlike a stock dividend, a partnership distribution is not reported on your income tax return via a 1099. Instead, you will be provided a K-1, which reflects your allocable share of partnership taxable income, which will generally be less than the actual distributions you receive. Inergy estimates that the distributions paid to Unitholders through December 31, 2012 will be 80% tax deferred (i.e. taxable income allocated to the unitholder on the K-1 is estimated to be only 20% of the distribution received for the same period).

4.How will I be taxed on common units when I sell?
 When investors sell units for more than their adjusted basis, they must recognize a gain on their tax return. At the time of sale, the unitholders' basis in the units will likely be different from the original basis (original cost plus broker's fees). Each year, the basis is increased by the partner's allocable share of partnership income (or decreased by the partner's allocable share of partnership loss) and decreased by any distributions received by the partner. Most, if not all, of any gain will be recognized as ordinary income in accordance with current IRS requirements. Inergy encourages prospective investors to review "tax consequences" of ownership in our recent SEC filings, and contact a tax advisor.

5.Can I purchase Inergy units within my IRA account?
 Inergy does report unrelated business taxable income "UBTI." Current IRS rules limit the amount of UBTI reported within an IRA to $1,000 annually. Anyone considering purchasing Inergy units within an IRA account should consult a tax advisor.

6.What is the amount of the distribution on limited partner units?
 Click here for Inergy, L.P.'s Distribution History.

7.How often are distributions paid?
 Once declared by Inergy, L.P.'s board of directors, distributions will be paid approximately 45 days after each quarter end. Inergy's fiscal year end is September 30, thus its quarters are:

> First quarter October - December (dividend received mid-February) 
> Second quarter    January - March (dividend received mid-May)
> Third quarter April - June (dividend received mid-August)
> Fourth quarter July - September (dividend received mid-November)

8.How do I buy partnership units in Inergy?
 Inergy is a publicly traded company on the New York Stock Exchange, under the ticker symbol "NRGY." To buy units in Inergy, contact your stockbroker or another investment advisor. For more information on our stock price, click here.

9.Can I purchase units directly from Inergy?
 No.

10.Does Inergy have a Distribution Reinvestment Plan (DRIP)?
 No.

11.How can I get more information?
 Contact Vince Grisell at investorrelations@inergyservices.com or 816-842-8181.