Ferrellgas Narrows Q1 Loss to $27.4M Amid Revenue Dip, Refinancing

Ticker: FGPR · Form: 10-Q · Filed: Dec 12, 2025 · CIK: 922358

Sentiment: mixed

Topics: Propane Distribution, Debt Refinancing, Net Loss Reduction, Revenue Decline, Cost Management, Energy Sector, MLP

Related Tickers: FGPR

TL;DR

**Ferrellgas pulled off a massive debt refinancing, slashing its Q1 loss, but revenue still dipped – watch for sustained operational improvements.**

AI Summary

Ferrellgas Partners, L.P. (FGPR) reported a net loss of $27.36 million for the three months ended October 31, 2025, a significant improvement from the $148.33 million net loss in the same period of 2024. Total revenues decreased by 2.4% to $355.19 million in Q1 2025 from $364.09 million in Q1 2024, primarily due to a decline in propane and other gas liquids sales from $336.80 million to $329.31 million. Operating income saw a dramatic turnaround, reaching $1.87 million in Q1 2025 compared to an operating loss of $122.93 million in Q1 2024, largely driven by a substantial reduction in general and administrative expense from $137.93 million to $12.01 million. The company incurred a $3.00 million loss on extinguishment of debt in Q1 2025, which was not present in Q1 2024. Cash and cash equivalents decreased significantly from $96.88 million at July 31, 2025, to $28.38 million at October 31, 2025, reflecting net cash used in operating activities of $8.50 million and financing activities of $38.73 million. Long-term debt increased from $815.46 million to $1,452.81 million, while the current portion of long-term debt decreased from $652.18 million to $1.83 million, indicating a significant refinancing event.

Why It Matters

This 10-Q reveals a critical refinancing move by Ferrellgas, shifting $650 million from current to long-term debt, which significantly de-risks its short-term liquidity profile and provides stability for investors. The dramatic reduction in general and administrative expenses, from $137.93 million to $12.01 million, is a key driver of the improved operating income, suggesting successful cost-cutting measures that could enhance profitability. However, the 2.4% decline in total revenues, particularly in propane sales, highlights ongoing challenges in its core business, which could impact future growth and competitive positioning against other energy providers. Employees might see continued pressure on operational efficiency, while customers could experience stable service due to improved financial footing.

Risk Assessment

Risk Level: medium — The company's total deficit increased from $(1,029.13) million at July 31, 2025, to $(1,082.04) million at October 31, 2025, indicating continued negative equity. While the refinancing of $650 million in current debt to long-term debt improves immediate liquidity, the overall long-term debt increased to $1,452.81 million, and the company incurred a $3.00 million loss on extinguishment of debt, suggesting potential ongoing debt management challenges.

Analyst Insight

Investors should monitor future revenue trends closely to ensure the core business can support the increased long-term debt. The significant reduction in general and administrative expenses warrants further investigation to determine if these cuts are sustainable and not detrimental to long-term operational capacity or customer service.

Financial Highlights

debt To Equity
N/A
revenue
$355.19M
operating Margin
0.5%
total Assets
$1,378.53M
total Debt
$1,454.64M
net Income
-$27.36M
eps
-$8.88
gross Margin
53.1%
cash Position
$28.38M
revenue Growth
-2.4%

Revenue Breakdown

SegmentRevenueGrowth
Propane and other gas liquids sales$329,314,000-2.2%
Other$25,875,000-5.2%

Key Numbers

Key Players & Entities

FAQ

What were Ferrellgas Partners L.P.'s total revenues for the quarter ended October 31, 2025?

Ferrellgas Partners L.P. reported total revenues of $355.19 million for the three months ended October 31, 2025. This represents a decrease from $364.09 million in the same period of 2024.

How did Ferrellgas Partners L.P.'s net loss change from Q1 2024 to Q1 2025?

Ferrellgas Partners L.P.'s net loss significantly narrowed from $148.33 million for the three months ended October 31, 2024, to $27.36 million for the three months ended October 31, 2025.

What was the primary reason for the improvement in Ferrellgas Partners L.P.'s operating income?

The primary reason for the improvement in operating income, from a $122.93 million loss in Q1 2024 to a $1.87 million income in Q1 2025, was a substantial reduction in general and administrative expense from $137.93 million to $12.01 million.

What was the impact of debt extinguishment on Ferrellgas Partners L.P.'s Q1 2025 results?

Ferrellgas Partners L.P. incurred a $3.00 million loss on extinguishment of debt for the three months ended October 31, 2025. There was no such loss in the comparable period of 2024.

How did Ferrellgas Partners L.P.'s cash and cash equivalents change during the quarter?

Cash and cash equivalents for Ferrellgas Partners L.P. decreased from $96.88 million at July 31, 2025, to $28.38 million at October 31, 2025, reflecting net cash used in operating activities of $8.50 million and financing activities of $38.73 million.

What was the change in Ferrellgas Partners L.P.'s long-term debt?

Ferrellgas Partners L.P.'s long-term debt increased from $815.46 million at July 31, 2025, to $1,452.81 million at October 31, 2025. Concurrently, the current portion of long-term debt decreased from $652.18 million to $1.83 million.

What is Ferrellgas Partners L.P.'s total deficit as of October 31, 2025?

As of October 31, 2025, Ferrellgas Partners L.P.'s total deficit was $(1,082.04) million, an increase from $(1,029.13) million at July 31, 2025.

What is the nature of Ferrellgas Partners L.P.'s business?

Ferrellgas Partners L.P. is primarily engaged in the retail distribution of propane and related equipment sales. Its Class A Units are traded on the OTC Market under the symbol "FGPR."

How many Class A Units were outstanding for Ferrellgas Partners L.P. at October 31, 2025?

At October 31, 2025, Ferrellgas Partners L.P. had 4,857,605 Class A Units outstanding, which remained unchanged from July 31, 2025.

What was the change in accounts payable for Ferrellgas Partners L.P.?

Accounts payable for Ferrellgas Partners L.P. increased from $31.08 million at July 31, 2025, to $55.31 million at October 31, 2025.

Risk Factors

Industry Context

Ferrellgas Partners operates in the propane and gas liquids distribution sector, which is sensitive to seasonal demand, weather patterns, and fluctuations in energy commodity prices. The industry faces ongoing competition from other distributors and alternative energy sources. Trends include consolidation, focus on operational efficiency, and adapting to evolving regulatory landscapes.

Regulatory Implications

The company operates under various environmental and safety regulations related to the storage, transportation, and sale of propane and other gas liquids. Compliance with these regulations is critical to avoid fines, operational disruptions, and reputational damage. Changes in energy policy or environmental standards could impact operating costs and market dynamics.

What Investors Should Do

  1. Monitor debt levels and refinancing strategy.
  2. Analyze cash flow generation and liquidity.
  3. Evaluate the sustainability of operating income improvement.

Key Dates

Glossary

Mezzanine Equity
A hybrid form of financing that blends debt and equity features. In this case, it refers to Senior preferred units. (Represents a significant portion of the company's capital structure, distinct from common equity.)
Deficit
Represents negative equity, where total liabilities exceed total assets. For a partnership, this is shown as a deficit in the unitholders' and general partner's equity accounts. (Indicates the company has accumulated losses exceeding its capital contributions.)
Loss on Extinguishment of Debt
A non-recurring charge incurred when a company repays or redeems debt before its scheduled maturity date, often as part of a refinancing effort. (Impacted the net loss for the current quarter due to debt restructuring activities.)
Operating lease right-of-use assets
Assets recognized under accounting standards for leases, representing the right to use an asset for the lease term. (Part of the company's assets, reflecting obligations for leased equipment and facilities.)
Allowance for expected credit losses
A contra-asset account that reduces the carrying amount of accounts receivable to their net realizable value, reflecting anticipated uncollectible amounts. (Indicates management's assessment of potential bad debts from customers.)

Year-Over-Year Comparison

Compared to the prior year's comparable period (Q1 2024), Ferrellgas Partners L.P. (FGPR) has demonstrated a significant improvement in profitability, reducing its net loss from $148.33 million to $27.36 million. This was primarily driven by a dramatic decrease in General and Administrative expenses, leading to a turnaround from an operating loss of $122.93 million to an operating income of $1.87 million. However, total revenues experienced a slight decline of 2.4%, and the company undertook a substantial debt refinancing, increasing its long-term debt while drastically reducing its current portion of long-term debt, alongside a notable decrease in cash reserves.

Filing Stats: 4,439 words · 18 min read · ~15 pages · Grade level 12.9 · Accepted 2025-12-12 06:36:14

Filing Documents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION ITEM 1.

FINANCIAL STATEMENTS (unaudited)

FINANCIAL STATEMENTS (unaudited) Ferrellgas Partners, L.P. and Subsidiaries Condensed Consolidated Balance Sheets – October 31, 2025 and July 31, 2025 4 Condensed Consolidated Statements of Operations – Three months ended October 31, 2025 and 2024 5 Condensed Consolidated Statements of Comprehensive Loss – Three months ended October 31, 2025 and 2024 6 Condensed Consolidated Statements of Deficit – Three months ended October 31, 2025 and 2024 7 Condensed Consolidated Statements of Cash Flows – Three months ended October 31, 2025 and 2024 8 Ferrellgas, L.P. and Subsidiaries Condensed Consolidated Balance Sheets – October 31, 2025 and July 31, 2025 9 Condensed Consolidated Statements of Operations – Three months ended October 31, 2025 and 2024 10 Condensed Consolidated Statements of Comprehensive Loss – Three months ended October 31, 2025 and 2024 11 Condensed Consolidated Statements of Partners' Deficit – Three months ended October 31, 2025 and 2024 12 Condensed Consolidated Statements of Cash Flows – Three months ended October 31, 2025 and 2024 13 Ferrellgas Partners, L.P. and Subsidiaries and Ferrellgas, L.P. and Subsidiaries Notes to Condensed Consolidated Financial Statements 14 Ferrellgas Partners Finance Corp. Condensed Balance Sheets – October 31, 2025 and July 31, 2025 36 Condensed Statements of Operations – Three months ended October 31, 2025 and 2024 37 Condensed Statements of Cash Flows – Three months ended October 31, 2025 and 2024 38 Notes to Condensed Financial Statements 39 Ferrellgas Finance Corp. Condensed Balance Sheets – October 31, 2025 and July 31, 2025 40 Condensed Statements of Operations – Three months ended October 31, 2025 and 2024 41 Condensed Statements of Cash Flows – Three months ended October 31, 2025 and 2024 42 Notes to Condensed Financial Statements 43 ITEM 2.

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

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 44 ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 60 ITEM 4.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 61

- OTHER INFORMATION

PART II - OTHER INFORMATION ITEM 1.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 62 ITEM 1A.

RISK FACTORS

RISK FACTORS 62 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 62 ITEM 3. DEFAULTS UPON SENIOR SECURITIES 62 ITEM 4. MINE SAFETY DISCLOSURES 62 ITEM 5. OTHER INFORMATION 62 ITEM 6. EXHIBITS 63 3 Table of Contents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

FINANCIAL STATEMENTS (unaudited)

ITEM 1. FINANCIAL STATEMENTS (unaudited) FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except unit data) (unaudited) October 31, 2025 July 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 28,382 $ 96,883 Accounts receivable (net of allowance for expected credit losses of $ 4,009 and $ 4,330 at October 31, 2025 and July 31, 2025, respectively) 133,565 127,510 Inventories 91,868 87,807 Prepaid expenses and other current assets 45,477 30,471 Total current assets 299,292 342,671 Property, plant and equipment, net 602,113 602,692 Goodwill, net 257,155 257,155 Intangible assets (net of accumulated amortization of $ 368,661 and $ 366,817 at October 31, 2025 and July 31, 2025, respectively) 104,606 106,451 Operating lease right-of-use assets 37,333 39,045 Other assets, net 78,034 68,702 Total assets $ 1,378,533 $ 1,416,716 LIABILITIES, MEZZANINE AND EQUITY (DEFICIT) Current liabilities: Accounts payable $ 55,313 $ 31,083 Current portion of long-term debt 1,828 652,178 Current operating lease liabilities 15,850 16,082 Other current liabilities 216,052 215,154 Total current liabilities 289,043 914,497 Long-term debt 1,452,813 815,462 Operating lease liabilities 22,673 24,079 Other liabilities 44,690 40,457 Contingencies and commitments (Note K) Mezzanine equity: Senior preferred units, net of issue discount and offering costs ( 700,000 units outstanding at October 31, 2025 and July 31, 2025) 651,349 651,349 Deficit: Limited partner unitholders Class A ( 4,857,605 units outstanding at October 31, 2025 and July 31, 2025) ( 1,374,780 ) ( 1,332,704 ) Class B ( 1,300,000 units outstanding at October 31, 2025 and July 31, 2025) 383,012 383,012 General partner unitholder ( 49,496 units outstanding at October 31, 2025 and July 31, 2025) ( 71,270 ) ( 70,845 ) Accumulated other com

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