Ferrellgas Propane Volumes Rise to 784M Gallons in FY25

TL;DR

**FGPR's steady volume growth and sticky customer base make it a reliable, albeit unexciting, long-term hold in a stable energy niche.**

AI Summary

Ferrellgas Partners L.P. (FGPR) reported total annual propane sales volumes of 784 million gallons for the fiscal year ended July 31, 2025, an increase from 764 million gallons in fiscal year 2024. The company, a leading retail distributor of propane and related equipment, operates primarily through its subsidiary, Ferrellgas, L.P., which accounts for substantially all consolidated assets, sales, and operating earnings. Ferrellgas Partners is the second largest retail marketer of propane in the United States by retail sales volume in fiscal 2025 and a major national provider of portable tank exchange under the Blue Rhino brand. Approximately 69% of its residential customers utilize company-owned equipment, which helps minimize customer churn due to the cost and inconvenience of switching tanks. The company's gross margin is primarily driven by the cents-per-gallon difference between sales price and the cost to purchase and deliver propane, which is subject to market conditions, including inflation and crude oil prices. Ferrell Companies, owned by an employee stock ownership trust, beneficially owns approximately 23.4% of FGPR's outstanding Class A Units.

Why It Matters

Ferrellgas Partners' consistent propane sales volume growth, reaching 784 million gallons in fiscal 2025, signals stable demand in a mature energy sector. For investors, this indicates resilience in its core business, particularly with 69% of residential customers using company-owned tanks, which creates a sticky customer base and competitive moat against smaller rivals. Employees benefit from the stability of a major player in the propane distribution market, while customers gain from a reliable national provider like Blue Rhino. The broader market sees a key indicator of energy consumption trends in rural and suburban areas, with FGPR's performance reflecting the ongoing role of propane despite increasing electrification.

Risk Assessment

Risk Level: medium — The company faces significant exposure to weather conditions, which directly impact propane demand, and volatile wholesale propane, motor fuel, and crude oil prices, as stated in 'Item 1A. Risk Factors.' While the 69% customer-owned tank statistic provides some stability, these external factors introduce considerable revenue and cost uncertainty, preventing a 'low' risk rating.

Analyst Insight

Investors should consider FGPR for its stable, albeit slow, growth in a defensive sector, but monitor commodity price trends and weather forecasts closely. The company's strong market position as the second largest retail marketer and a leading portable tank exchange provider offers a degree of insulation against competition.

Financial Highlights

debt To Equity

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revenue

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operating Margin

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total Assets

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total Debt

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net Income

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eps

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gross Margin

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cash Position

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revenue Growth

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Revenue Breakdown

Key Numbers

• $40.5M — Market Value of Non-Affiliate Class A Units (As of January 31, 2025, indicating the public float of FGPR.)
• 784M gallons — FY25 Propane Sales Volume (Increased from 764 million gallons in FY24, showing a 2.6% year-over-year growth in volume.)
• 69% — Residential Customers with Company Equipment (This high percentage helps minimize customer churn due to switching costs.)
• 23.4% — Ferrell Companies' Class A Unit Ownership (Significant beneficial ownership by the general partner's parent company, which is 100% employee-owned.)
• 1-for-20 — Reverse Unit Split (Effected on March 30, 2021, impacting the number of outstanding Class A Units.)

Key Players & Entities

• Ferrellgas Partners, L.P. (company) — publicly traded Delaware limited partnership
• Ferrellgas, L.P. (company) — operating partnership and primary asset holder
• Ferrellgas, Inc. (company) — sole general partner of Ferrellgas Partners and the operating partnership
• Ferrell Companies, Inc. (company) — parent company of the general partner, beneficially owns 23.4% of Class A Units
• Blue Rhino (company) — nationally branded portable tank exchange service
• $40,534,833 (dollar_amount) — aggregate market value of Class A Units held by nonaffiliates as of January 31, 2025
• 784 million gallons (dollar_amount) — total annual propane sales volumes for fiscal year ended July 31, 2025
• 764 million gallons (dollar_amount) — total annual propane sales volumes for fiscal year ended July 31, 2024
• 23.4% (dollar_amount) — beneficial ownership of Class A Units by Ferrell Companies
• 69% (dollar_amount) — percentage of residential customers utilizing company-owned equipment

FAQ

Risk Factors

• Commodity Price Volatility [high — market]: The company's gross margin is subject to market conditions, including inflation and crude oil prices, which directly impact the cost to purchase and deliver propane. Fluctuations in these prices can significantly affect profitability.
• Distribution and Delivery Logistics [medium — operational]: The business relies on a complex distribution network involving bulk delivery trucks and portable tank exchanges. Disruptions in this logistics chain, whether due to weather, equipment failure, or labor issues, can impact sales and customer service.
• Debt and Financing [medium — financial]: As a partnership with significant operations, the company likely carries substantial debt. Changes in interest rates or the ability to refinance debt could impact financial flexibility and profitability.
• Environmental and Safety Regulations [medium — regulatory]: The handling and transportation of propane are subject to stringent environmental and safety regulations. Non-compliance can lead to fines, operational shutdowns, and reputational damage.
• Competition [medium — market]: Ferrellgas is the second largest retail marketer of propane in the U.S. and faces competition from other national and regional players, as well as alternative energy sources, which can pressure pricing and market share.
• Customer Equipment Dependency [low — operational]: Approximately 69% of residential customers use company-owned equipment. While this reduces churn, it also creates an operational dependency on maintaining and servicing this equipment effectively.

Industry Context

Ferrellgas Partners operates in the propane distribution industry, a sector characterized by its essential role in residential, commercial, and agricultural heating and energy needs. The industry is competitive, with Ferrellgas being the second-largest retail marketer by volume in the U.S. Key trends include managing volatile commodity prices (linked to crude oil), ensuring efficient logistics for widespread distribution, and adapting to potential shifts in energy consumption patterns.

Regulatory Implications

The propane industry is subject to significant regulatory oversight concerning safety, transportation, and environmental standards. Compliance with these regulations is critical to avoid operational disruptions, fines, and reputational damage. Changes in environmental policies or safety mandates could increase compliance costs.

What Investors Should Do

1. Monitor propane price volatility and its impact on gross margins.
2. Assess the company's operational efficiency and logistics network.
3. Evaluate the company's debt levels and financing arrangements.
4. Track competitive dynamics and market share within the propane retail sector.

Key Dates

• 2025-07-31: Fiscal Year End — Reporting period for key financial and operational metrics, including propane sales volume.
• 2025-01-31: Market Value of Non-Affiliate Class A Units — Indicates the public float and market valuation of the company's publicly traded units.
• 2021-03-30: Reverse Unit Split — A 1-for-20 reverse unit split was effected, impacting the number of outstanding Class A Units.

Glossary

Class A Units

The publicly traded units of Ferrellgas Partners, L.P., which underwent a 1-for-20 reverse unit split on March 30, 2021. (Represents the ownership stake available to public investors.)

Operating Partnership

Ferrellgas, L.P., which conducts substantially all of the consolidated assets, sales, and operating earnings of Ferrellgas Partners. (The core operational entity of the partnership.)

Ferrell Companies

The parent company of Ferrellgas, Inc. (the general partner), which is 100% owned by an employee stock ownership trust and beneficially owns approximately 23.4% of FGPR's Class A Units. (Represents a significant unitholder with an employee ownership structure.)

Retail Sales

Sales to end-users, primarily to residential, industrial/commercial, and agricultural customers. (A key segment of Ferrellgas's business, representing direct sales to consumers and businesses.)

Portable Tank Exchange

Sales of propane, nationally branded under Blue Rhino, primarily for outdoor cooking, sold through a network of distribution outlets. (A significant business line contributing to overall propane sales volume and brand recognition.)

Gross Margin

The profit generated from sales after deducting the cost of goods sold (propane purchase and delivery costs). (Key indicator of profitability, directly influenced by propane price and delivery efficiency.)

Year-Over-Year Comparison

Fiscal year 2025 saw an increase in propane sales volume to 784 million gallons, up from 764 million gallons in fiscal year 2024, representing a 2.6% year-over-year growth. While specific financial metrics like revenue, net income, and margins are not detailed in the provided text for comparison, the increase in sales volume suggests positive operational momentum. No new significant risks were highlighted in the provided excerpts compared to the general understanding of the industry's inherent market and operational risks.

Filing Documents

• fgp-20250731x10k.htm (10-K) — 4948KB
• fgp-20250731xex10d13.htm (EX-10.13) — 82KB
• fgp-20250731xex19d1.htm (EX-19.1) — 30KB
• fgp-20250731xex21d1.htm (EX-21.1) — 5KB
• fgp-20250731xex23d1.htm (EX-23.1) — 2KB
• fgp-20250731xex31d1.htm (EX-31.1) — 29KB
• fgp-20250731xex31d2.htm (EX-31.2) — 29KB
• fgp-20250731xex31d3.htm (EX-31.3) — 30KB
• fgp-20250731xex31d4.htm (EX-31.4) — 19KB
• fgp-20250731xex32d1.htm (EX-32.1) — 8KB
• fgp-20250731xex32d2.htm (EX-32.2) — 10KB
• fgp-20250731xex32d3.htm (EX-32.3) — 9KB
• fgp-20250731xex32d4.htm (EX-32.4) — 9KB
• fgp-20250731xex10d13001.jpg (GRAPHIC) — 7KB
• 0001104659-25-099508.txt ( ) — 18886KB
• fgp-20250731.xsd (EX-101.SCH) — 102KB
• fgp-20250731_cal.xml (EX-101.CAL) — 95KB
• fgp-20250731_def.xml (EX-101.DEF) — 530KB
• fgp-20250731_lab.xml (EX-101.LAB) — 814KB
• fgp-20250731_pre.xml (EX-101.PRE) — 742KB
• fgp-20250731x10k_htm.xml (XML) — 3806KB

BUSINESS

BUSINESS 6 ITEM 1A.

RISK FACTORS

RISK FACTORS 16 ITEM 1B. UNRESOLVED STAFF COMMENTS 32 ITEM 1C. CYBERSECURITY 33 ITEM 2.

PROPERTIES

PROPERTIES 33 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 34 ITEM 4. MINE SAFETY DISCLOSURES 34 PART II 34 ITEM 5. MARKET FOR REGISTRANTS' COMMON EQUITY, RELATED UNITHOLDER AND STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 34 ITEM 6. RESERVED 35 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 36 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 54 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 55 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 55 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 55 ITEM 9B. OTHER INFORMATION 56 PART III 57 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 57 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 64 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED UNITHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED UNITHOLDER MATTERS 70 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 72 ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES 74 PART IV E-1 ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES E-1 ITEM 16. FORM 10-K SUMMARY E-6 3 Table of Contents PART I References and Defined Terms In this Annual Report on Form 10-K: "us," "we," "our," "ours," "consolidated," the "Company" or "Ferrellgas" are references to Ferrellgas Partners, L.P. together with its consolidated subsidiaries, including Ferrellgas, L.P., Ferrellgas Partners Finance Corp. and Ferrellgas Finance Corp., except when used in connection with "Class A Units" or "Class B Units," in which case these terms refer to Ferrellgas Partners, L.P. without its consolidated subsidiaries; "Ferrellgas Partners" refers to Ferrellgas Partners, L.P. itself, with its consolidated subsidiaries; the "operating partnership" refers to Ferrellgas, L.P., together (except where the context indicates otherwise) with its consolidated subsidiaries, including Ferrellgas Finance Corp.; our "general partner" refers to Ferrellgas, Inc.; "Ferrell Companies" refers to Ferrell Companies, Inc., the sole shareholder of our general partner; "Board of Directors" or "Board" refers to the board of directors of our general partner, except where the context indicates otherwise; "GAAP" refers to accounting principles generally accepted in the United States; "retail sales" refers to Propane and other gas liquid sales: Retail — Sales to End Users or the volume of propane sold primarily to our residential, industrial/commercial and agricultural customers; "wholesale sales" refers to Propane and other gas liquid sales: Wholesale — Sales to Resellers or the volume of propane sold primarily to our portable tank exchange customers and bulk propane sold to wholesale customers; "other gas sales" refers to P

Forward-looking Statements

Forward-looking Statements Forward-looking statements are not guarantees of performance. You should not put undue reliance on any forward-looking statements. All forward-looking statements are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially from those expressed in or implied by these forward-looking statements. Many of the factors that will affect our future results are beyond our ability to control or predict. Some of the risk factors that may affect our business, financial condition or results of operations include: the effect of weather conditions on the demand for propane; the prices of wholesale propane, motor fuel and crude oil; disruptions to the supply of propane; competition from other industry participants and other energy sources; energy efficiency and technology advances; significant delays in the collection of accounts or notes receivable; customer, counterparty, supplier or vendor defaults; changes in demand for, and production of, hydrocarbon products; increased trucking and rail regulations; inhe

BUSINESS

ITEM 1. BUSINESS. Overview Ferrellgas Partners is a publicly traded Delaware limited partnership formed in 1994 and is primarily engaged in the retail distribution of propane and related equipment sales. Our Class A Units are traded on the OTC Market under the symbol "FGPR." Ferrellgas Partners is a holding entity that conducts no operations and has two direct subsidiaries, the operating partnership and Ferrellgas Partners Finance Corp. Our activities are primarily conducted through the operating partnership. Ferrellgas Partners and the Preferred Unitholders are the only limited partners of the operating partnership. Ferrellgas, Inc. is the sole general partner of Ferrellgas Partners and the operating partnership and, excluding the economic interests attributable to the Class B Units and the Preferred Units, owns an approximate 1% general partner economic interest in each, and, therefore, an effective 2% general partner economic interest in the operating partnership. Excluding the economic interests attributable to the Preferred Units, Ferrellgas Partners owns an approximate 99% limited partner interest in the operating partnership. For information regarding the economic and other terms of the Class B Units and the Preferred Units, see Note J "Equity (Deficit)" and Note I "Preferred units" to our consolidated financial statements included elsewhere herein. Our general partner performs all management functions for us. The parent company of our general partner, Ferrell Companies, currently beneficially owns approximately 23.4% of our outstanding Class A Units. Ferrell Companies is owned 100% by an employee stock ownership trust. The operating partnership was formed on April 22, 1994, and accounts for substantially all of our consolidated assets, sales and operating earnings.

Business

Business We are a leading distributor of propane and related equipment and supplies to customers in the United States. We believe that we are the second largest retail marketer of propane in the United States as measured by the volume of our retail sales in fiscal 2025 and a leading national provider of propane by portable tank exchange. We serve residential, industrial/commercial, portable tank exchange, agricultural, wholesale and other customers. Our operations primarily include the distribution and sale of propane and related equipment and supplies in all 50 states, the District of Columbia and Puerto Rico. Sales from propane distribution are generated principally from transporting propane purchased from third parties to propane distribution locations and then to tanks on customers' premises or to portable propane tanks delivered to nationwide and local retailers. Sales from portable tank exchanges, nationally branded under the name Blue Rhino, are delivered primarily through a network of partnership-owned distribution outlets and to a lesser extent through independently-owned distribution outlets. Our market areas for our residential and agricultural customers are generally rural while our market areas for our industrial/commercial and portable tank exchange customers are generally suburban. In the residential and industrial/commercial markets, propane is primarily used for space heating, water heating, cooking and other propane fueled appliances. In the portable tank exchange market, propane is used primarily for outdoor cooking using gas grills. In the agricultural market, propane is primarily used for crop drying, space heating, irrigation and weed control. In addition, propane is used for a variety of industrial applications, including as an engine fuel burned in the internal combustion engines of vehicles and forklifts and as a heating or energy source in manufacturing and drying processes. A substantial majority of our gross margin from propane and ot

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