Inergy and Crestwood Merger

Presentation

Filed

by

Inergy,

L.P.

Pursuant

to

Rule

425

of

the

Securities

Act

of

1933

and deemed filed pursuant to Rule 14a-12

of

the

Securities

Exchange

Act

of

1934

Subject Company: Crestwood Midstream Partners LP

Commission File No.: 001-33631

2

ADDITIONAL INFORMATION AND WHERE TO FIND IT

This communication contains information about the proposed merger transaction involving Crestwood Midstream Partners LP (“Crestwood”) and Inergy Midstream, L.P. (“Inergy”). In

connection with the proposed merger transaction, Inergy will file with the SEC a registration statement on Form S-4 that will include a proxy statement/prospectus for the unitholders of

Crestwood.  Crestwood  will mail the final proxy statement/prospectus to its unitholders.  INVESTORS AND UNITHOLDERS ARE URGED TO READ THE PROXY

STATEMENT/PROSPECTUS

AND

OTHER

RELEVANT

DOCUMENTS

FILED

OR

TO

BE

FILED

WITH

THE

SEC

CAREFULLY

WHEN

THEY

BECOME AVAILABLE

BECAUSE

THEY

WILL

CONTAIN

IMPORTANT

INFORMATION

ABOUT

CRESTWOOD,

INERGY,

THE

PROPOSED

MERGER

TRANSACTION

AND

RELATED

MATTERS. 

Investors and unitholders will be able to obtain free copies of the proxy statement/prospectus and other documents filed with the SEC by Inergy and Crestwood through the website maintained

by the SEC at www.sec.gov.  In addition, investors and unitholders will be able to obtain free copies of documents filed by Crestwood with the SEC from Crestwood’s website,

www.crestwoodlp.com,

under

the

heading

“SEC

Filings”

in

the

“Investor

Relations”

tab

and

free

copies

of

documents

filed

by

Inergy

with

the

SEC

from

Inergy’s

website,

www.inergylp.com/midstream, under the heading “SEC Filings”

in the “Investor Relations”

tab.

PARTICIPANTS IN THE SOLICITATION

Crestwood, Inergy and their respective general partner’s directors and executive officers may be deemed to be participants in the solicitation of proxies from the unitholders of Crestwood in

respect of the proposed merger transaction. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of the unitholders of Crestwood in

connection with the proposed transaction, including a description of their direct or indirect interests, by security holdings or

otherwise, will be set forth in the proxy statement/prospectus when it

is filed with the SEC.  Information regarding Crestwood’s directors and executive officers is contained in Crestwood’s Annual Report on Form 10-K for the year ended December 31, 2012, which

is filed with the SEC.  Information regarding Inergy’s directors and executive officers is contained in Inergy’s Annual Report on Form 10-K for the year ended September 30, 2012, which is filed

with the SEC. Free copies of these documents may be obtained from the sources described above.

SAFE HARBOUR FOR FORWARD-LOOKING STATEMENTS

The statements in this communication regarding future events, occurrences, circumstances, activities, performance, outcomes and results are forward-looking statements. Although these

statements reflect the current views, assumptions and expectations of Crestwood and Inergy management, the matters addressed herein are subject to numerous risks and uncertainties which

could cause actual activities, performance, outcomes and results

to differ materially from those indicated. Such forward-looking statements include, but are not limited to, statements about the

future financial and operating results, objectives, expectations

and intentions and other statements that are not historical facts. Factors that could result in such differences or otherwise materially

affect Crestwood’s or Inergy’s financial condition, results of operations and cash flows include, without limitation, failure to satisfy closing conditions with respect to the merger; the risks that the

Crestwood and Inergy businesses will not be integrated successfully or may take longer than anticipated; the possibility that expected synergies will not be realized, or will not be realized within the

expected timeframe; fluctuations in oil, natural gas and NGL prices; the extent and success of drilling efforts, as well as the extent and quality of natural gas volumes produced within proximity of

Crestwood or Inergy assets; failure or delays by customers in achieving expected production in their natural gas projects; competitive conditions in the industry and their impact on the ability of

Crestwood or Inergy to connect natural gas supplies to Crestwood

or Inergy gathering and processing assets or systems; actions or inactions taken or non-performance by third parties, including

suppliers, contractors, operators, processors, transporters and customers; the ability of Crestwood or Inergy to consummate acquisitions, successfully integrate the acquired businesses, realize any

cost savings and other synergies from any acquisition; changes in the availability and cost of capital; operating hazards, natural disasters, weather-related delays, casualty losses and other matters

beyond

Crestwood

or

Inergy’s

control;

timely

receipt

of

necessary

government

approvals

and

permits,

the

ability

of

Crestwood

or

Inergy

to

control

the

costs

of

construction,

including

costs of

materials, labor and right-of-way and other factors that may impact either company’s ability to complete projects within budget and on schedule; the effects of existing and future laws and

governmental regulations, including environmental and climate change requirements; the effects of existing and future litigation; and risks related to the substantial indebtedness of either company,

as well as other factors disclosed in Crestwood and Inergy’s filings with the U.S. Securities and Exchange Commission. You should read filings made by Crestwood and Inergy with the U.S.

Securities and Exchange Commission, including Annual Reports on Form 10-K for the year ended December 31, 2012 and September 30, 2012, respectively, and the most recent Quarterly

Reports and Current Reports for a more extensive list of factors

that could affect results. Crestwood and Inergy do not assume any obligation to update these forward-looking statements.

3

Strategic Combination

Crestwood and Inergy to merge forming a $7 billion midstream partnership

Crestwood Midstream Partners (NYSE: CMLP), Crestwood Holdings LLC, Inergy, L.P. (NYSE:NRGY) and Inergy

Midstream, L.P. (NYSE:NRGM) have executed definitive agreements to create a fully integrated midstream partnership

with a total enterprise value of over $7 billion

Merger of equals creates an operating, financial and organizational platform that will be attractive to customers,

creditors, investors, and employees

Transaction approved by the Board of Directors and committee of independent directors of NRGY, NRGM and

CMLP

Unified strategy focused on servicing the midstream infrastructure needs of the most prolific shale plays in North

America

Marcellus Shale, Bakken Shale, Eagle Ford Shale, Permian Basin, PRB Niobrara Shale, Utica Shale, Barnett Shale,

Fayetteville

Shale,

Granite

Wash,

Haynesville

Shale

and

Monterey

Shale

Diverse

collection

of

midstream

assets

and

services

with

visible

long-term

growth

potential,

attractive

operating

and

financial synergies and improved scale to execute major midstream infrastructure development and acquisition

opportunities 

Complementary blend of long-term fee-based contracted cash flows with high-growth shale assets and organic

expansion opportunities

Combined, Crestwood and Inergy provide an integrated midstream service offering

that links fundamental energy supply with fundamental energy demand

General partner of

NRGM with incentive

distribution rights and

significant LP ownership

Stable operating assets

with growth potential

Debt-to-EBITDA of 2.1x

4

Significant Transformation

Inergy, L.P.

(NYSE: NRGY)

EBITDA comprised of

~50% Retail Propane &

~50% Midstream

Debt-to-EBITDA of 4.6x

NRGM IPO

NRGM Acquisition

of US Salt from

NRGY

COLT Hub Acquisition

Retail Propane

Divestiture

Inergy, L.P.

(NYSE:  NRGY)

Inergy Midstream, L.P.

(NYSE:  NRGM)

Pure-play midstream

assets located in highly

coveted supply and

demand markets

Fee-based, contracted

cash flows

Debt-to-EBITDA of 3.6x

As of September 2011

Today

Dec-12

Aug-12

May-12

Dec-11

5

Crestwood Midstream Partners LP

Area with existing assets and operations

Area with greenfield or development projects being evaluated

Asset Snapshot

Crestwood is a growth-oriented, midstream MLP which

owns and operates predominately fee-based gathering,

processing, treating and compression assets servicing

natural gas producers

Diverse portfolio of natural gas and NGL gathering,

processing, and transportation operations in the U.S.

Footprint in six leading unconventional plays (Barnett

Shale in north TX, the Fayetteville Shale in northwest

AR, the Granite Wash in the TX Panhandle, the

Marcellus Shale in northern WV, the emerging Avalon

Shale trend in southeastern NM, and the

Haynesville/Bossier Shale in western LA)

98% fixed-fee portfolio provides stable cash flows from

top-tier producers (Antero, BHP Billiton, BP,

Chesapeake, Devon, Exxon Mobil, Quicksilver)

Formed by Quicksilver in 2004 with the

contribution of its midstream assets in the

Barnett, it went public as an MLP

Quicksilver

divested

its

holdings

in

the

MLP

(and

its

GP)

in

2010,

selling

to

First

Reserve

6

First Reserve

After this transaction, First Reserve, Crestwood management and Inergy

management will have in excess of $1.5 billion invested in the combined partnership

Selected Significant Investments:

First Reserve, the largest and most

experienced private equity firm focused

exclusively on energy, continues to

demonstrate its commitment to the ongoing

growth of the combined partnership

Denotes First Reserve portfolio companies currently under contract or

30 year history of investing exclusively in

energy

Over $23 billion of capital raised since

inception

Significant industry relationships and broad

portfolio energy assets facilitate new

business opportunities

Examples include Crestwood’s current

contracts with Sabine Oil and Gas,

Mountaineer Keystone and RKI Exploration

and Inergy’s current contract with PBF

Energy

engaged in business activities with Crestwood and/or Inergy.

7

Transaction Structure

NRGY

NRGM

Public

Public

Management

Crestwood

Holdings

CMLP

Public

Management

First

Reserve

1

2

NRGY LP units

CMLP GP / IDR interest +

NRGM units (post merger)

3

LP Units + Cash

100% equity ownership +

assumption of CMLP debt

4

1.

NRGY distributes all NRGM units

currently held to NRGY unitholders

in a tax-free distribution

2.

Crestwood Holdings acquires the GP

control of NRGY

3.

Crestwood Holdings exchanges the

GP/IDRs of CMLP plus CMLP NRGM

units (post merger) in exchange for

NRGY units

4.

CMLP merged into wholly-owned

subsidiary of NRGM

Crestwood

Holdings

NRGY

Public

Current

Inergy

Mgmt

NRGY

NRGM

NRGM

Public

53.8 MM Units: 29%

Non-economic GP

7.1 MM Units: 5%

GP / IDR interest

27.1 MM NRGY Units: 15%

11.9 MM NRGM Units: 8%

65.9 MM Units: 44%

20.5 MM Units: 14%

104.6 MM NRGY Units: 56%

45.0 MM NRGM Units: 30%

($ in MM except per unit data)

Units (MM)

Value

%

NRGM

Public - NRGM

29.1

$699

19.4%

Public - CMLP

36.8

882

24.4%

Crestwood Holdings

20.5

493

13.7%

NRGY Unitholders

45.0

1,079

29.9%

NRGY

7.1

171

4.7%

Inergy Management

11.9

285

7.9%

Total Units

150.4

$3,609

100.0%

NRGY

Public - NRGY

104.6

$1,192

56.4%

Crestwood Holdings

53.8

613

29.0%

Inergy Management

27.1

309

14.6%

Total Units

185.5

$2,114

100.0%

Pro Forma Ownership Structure:

Transaction Steps:

8

Combined Operations

Pro Forma Asset Summary

1,308 mmcf/d natural gas transportation

capacity  

2,000+ mmcf/d gathering capacity

400+ mmcf/d processing capacity

1,000+ miles of pipeline

7 processing plants

80+ Bcf of current storage capacity

120,000 BPD crude oil rail loading capacity

275 tractors and 531 trailers

Significant North American NGL Logistics

business

Operations in virtually every premier shale play in North America

Watkins Glen NGL Storage Facility

Bath NGL Storage Facility

South Jersey Terminal

Seymour LPG Facility

West Coast Midstream

NGL Transportation Offices

Rail Terminal

Tres Palacios

COLT Hub

Gathering and

Processing Assets

Greenfield Development Targets

9

Strategic Highlights

Materially

Increased Size,

Scale and

Diversity

Complementary

Growth

Strategies

Low Cost

Capital Drives

Organic Growth

Significant

Management

Experience &

Track Record

Cash Flow

Stability and

Visibility

Enhanced

Credit Profile

Strong

Sponsorship and

Alignment of

Interest with

LPs

Expanded

Participation in

the Midstream

Value Chain

10