Inergy has reported adjusted EBITDA of $140.1 million for the second quarter of fiscal 2009, an increase of $19.9 million, or about 17% from $120.2 million for the quarter ended March 31, 2008. Net income, excluding certain items was $94.7 million for the second quarter of fiscal 2009, or $1.62 per diluted limited partner unit, a raise of about 16% from $81.9 million or $1.47 per diluted limited partner unit in the year-ago quarter.

For the six-month period ended March 31, 2009, adjusted EBITDA raised about 25% to $242.1 million from $194.3 million in the year-ago quarter. Net income for the six months ended March 31, 2009, excluding certain items as discussed below, raised about 30% to $153 million, or $2.55 per diluted limited partner unit, from $117.8 million, or $2.00 per diluted limited partner unit, in the year-ago quarter.

Our businesses produced outstanding results for the quarter, positioning the company to achieve its full-year objectives, said John Sherman, president and chief executive officer of Inergy. Our propane operating team completed a very successful winter season, delivering solid earnings. Our natural gas business performed well and continues to execute its growth plans. In addition, we raised nearly $300 million of long-term growth capital. From this strong and flexible financial position, we intend to continue to execute quality growth on behalf of our investors.

As earlier announced, the board of Inergy’s managing general partner increased Inergy’s quarterly cash distribution to $0.655 per limited partner unit ($2.62 annually) for the quarter ended March 31, 2009. This represents an approximate 7% increase over the distribution for the same quarter of the prior year. The distribution will be paid on May 15, 2009.

Quarterly Results

For the second quarter of fiscal 2009, retail propane gallon sales were 124.7 million gallons compared to 138.6 million gallons sold in the year-ago quarter. Retail propane gross profit, excluding certain items was $152.8 million for the quarter ended March 31, 2009, compared to $137.4 million in the year-ago quarter. Gross profit from other propane operations, including wholesale, appliances, service, transportation, distillates, and other was $35.4 million in the quarter ended March 31, 2009, compared to $28.9 million in the year-ago quarter.

Gross profit from midstream operations increased to $25 million for the second quarter of fiscal 2009, compared with the $22.3 million in the year-ago quarter.

For the quarter ended March 31, 2009, operating and administrative expenses increased to $73.4 million compared to $68.3 million in the year-ago quarter.

Exclusions from net income included a loss of $2.3 million and a gain of $0.1 million on the disposal of excess property, plant, and equipment during the three months ended March 31, 2009 and 2008, respectively. Also excluded from net income and gross profit discussed above was a non-cash charge of $1.1 million during the three months ended March 31, 2009, resulting from the derivative contracts associated with retail propane fixed price sales. The non-cash charge during the three months ended March 31, 2008, was immaterial.

Year-to-Date Results

For the six-month period ended March 31, 2009, there were 229.1 million retail propane gallons sold compared to 243 million gallons sold during the year-ago period. Retail propane gross profit, excluding certain items as discussed below, was $273.5 million for the six months ended March 31, 2009, compared to $229.6 million for the six months ended March 31, 2008. Gross profit from other propane operations, including wholesale, appliances, service, transportation, distillates, and other was $67.4 million in the six months ended March 31, 2009, compared to $53.9 million during the year-ago period

Gross profit from midstream operations raised to $47 million for the six months ended March 31, 2009, from $42.4 million in the year-ago period

For the six months ended March 31, 2009, operating and administrative expenses raised to $146.2 million compared to $131.5 million in the same period of fiscal 2008.

Exclusions from net income comprised a loss of $3 million and a gain of $1.2 million on the disposal of excess property, plant, and equipment during the six months ended March 31, 2009 and 2008, correspondingly. Also excluded from net income and gross profit discussed above was a non-cash charge of $1.5 million and $0.1 million during the six months ended March 31, 2009 and 2008, correspondingly, resulting from the derivative contracts related to the retail propane fixed price sales.