Ferrellgas Boosts Propane Sales to 784M Gallons in FY25

TL;DR

**Ferrellgas's steady propane sales growth and strong market position make it a reliable, albeit slow-growth, play in the essential energy distribution sector.**

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 a holding entity with its Class A Units traded on the OTC Market under 'FGPR'. The company is the second largest retail marketer of propane in the United States by retail sales volume and a leading national provider of portable tank exchange, branded as Blue Rhino. Approximately 69% of residential customers utilize company-owned equipment, which helps minimize customer churn due to the cost and inconvenience of switching tanks. The general partner, Ferrellgas, Inc., performs all management functions, and its parent, Ferrell Companies, beneficially owns approximately 23.4% of outstanding Class A Units.

Why It Matters

Ferrellgas's consistent propane sales volume growth, reaching 784 million gallons in fiscal 2025, demonstrates resilience in a competitive energy market. For investors, this indicates stable demand for essential heating and cooking fuels, particularly in rural and suburban areas. The company's strong position as the second-largest retail marketer and a leader in portable tank exchange (Blue Rhino) provides a competitive moat, especially with 69% of residential customers using company-owned tanks, reducing churn. This stability is crucial for employees and customers who rely on Ferrellgas for consistent service and employment, while the broader market benefits from a reliable energy distributor.

Risk Assessment

Risk Level: medium — The company faces medium risk due to its heavy reliance on weather conditions affecting propane demand and significant exposure to volatile wholesale propane, motor fuel, and crude oil prices. Additionally, disruptions to propane supply and intense competition from other energy sources pose ongoing challenges, as detailed in 'Item 1A. Risk Factors'.

Analyst Insight

Investors should consider Ferrellgas as a stable, income-oriented investment due to its essential service and customer retention strategies. Monitor commodity price trends and weather forecasts, as these are primary drivers of short-term performance, but recognize the long-term stability offered by its established market presence.

Financial Highlights

debt To Equity

N/A

revenue

N/A

operating Margin

N/A

total Assets

N/A

total Debt

N/A

net Income

N/A

eps

N/A

gross Margin

N/A

cash Position

N/A

revenue Growth

N/A

Revenue Breakdown

Key Numbers

• $40.5M — Market Value of Non-Affiliate Common Units (As of January 31, 2025, indicating the public float of Ferrellgas Partners, L.P.)
• 784M gallons — Total Propane Sales Volume (For fiscal year ended July 31, 2025, showing a 2.6% increase from 764 million gallons in FY2024.)
• 23.4% — Ferrell Companies' Class A Unit Ownership (Significant beneficial ownership by the parent of the general partner, indicating concentrated control.)
• 69% — Residential Customers with Company Equipment (High customer retention factor due to owned tanks, minimizing switching based on minor price variations.)
• 1% — General Partner Economic Interest (Ferrellgas, Inc.'s direct economic interest in Ferrellgas Partners and the operating partnership.)

Key Players & Entities

• Ferrellgas Partners, L.P. (company) — publicly traded Delaware limited partnership
• Ferrellgas, L.P. (company) — operating partnership, accounts for substantially all assets and sales
• Ferrellgas, Inc. (company) — sole general partner of Ferrellgas Partners and the operating partnership
• Ferrell Companies (company) — parent company of 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 Ferrellgas Partners, L.P.'s common 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 outstanding 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 profitability is significantly impacted by the cost of purchased propane, which is subject to volatile market prices. Fluctuations in these prices can affect gross margins if sales prices cannot be adjusted accordingly. The filing does not provide specific historical data on the impact of price volatility on margins.
• Dependence on Third-Party Suppliers [medium — operational]: Ferrellgas purchases propane from third-party suppliers, and disruptions in supply or increased costs from these suppliers could materially impact operations and profitability. The company relies on a network of suppliers to meet its demand.
• Transportation and Distribution Risks [medium — operational]: The distribution of propane involves inherent risks related to transportation, including accidents, equipment failures, and regulatory compliance. The company operates a large fleet of delivery trucks and manages numerous distribution locations.
• Environmental and Safety Regulations [high — regulatory]: The handling, storage, and transportation of propane are subject to stringent federal, state, and local environmental and safety regulations. Non-compliance can result in significant fines, penalties, and operational disruptions.
• Debt Obligations [high — financial]: The company has significant debt obligations, and its ability to service this debt depends on its financial performance and market conditions. The filing does not specify the total debt amount in this section.
• Competition [medium — market]: Ferrellgas operates in a competitive market with other large national and regional propane distributors, as well as local providers. The company is the second largest retail marketer of propane by volume.
• Cybersecurity Threats [medium — operational]: The company's operations are increasingly reliant on information technology systems, making it vulnerable to cybersecurity threats that could disrupt business operations, compromise sensitive data, or lead to financial losses. The filing mentions cybersecurity as a specific item.
• Customer Concentration [low — financial]: While not explicitly quantified in this section, reliance on a large customer base, particularly in the residential sector, can pose risks if economic downturns or shifts in energy preferences impact demand. The company notes that 69% of residential customers use company-owned equipment, which aids retention.

Industry Context

Ferrellgas operates as the second-largest retail propane marketer in the U.S. by volume, competing in a fragmented market with national, regional, and local players. The industry is characterized by significant demand for propane in residential heating, commercial applications, and outdoor cooking (via Blue Rhino's tank exchange). Key trends include the ongoing need for reliable energy sources in rural and suburban areas and the competitive dynamics driven by price, service, and infrastructure.

Regulatory Implications

The propane industry is subject to extensive federal, state, and local regulations concerning safety, environmental protection, and transportation. Ferrellgas must maintain compliance with these regulations, which can involve significant operational costs and potential liabilities for non-compliance. Cybersecurity regulations are also becoming increasingly relevant.

What Investors Should Do

1. Monitor propane price volatility and its impact on gross margins.
2. Assess the competitive landscape and market share trends.
3. Evaluate the effectiveness of customer retention strategies, particularly company-owned equipment.
4. Review debt levels and the company's ability to service its obligations.
5. Track cybersecurity initiatives and potential risks.

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. (These are the units traded on the OTC Market under 'FGPR' and represent the public float of the partnership.)

Operating Partnership

Refers to Ferrellgas, L.P., which conducts substantially all of the consolidated assets, sales, and operating earnings of Ferrellgas Partners. (This is the primary entity through which the company's business operations are conducted.)

General Partner

Ferrellgas, Inc., which performs all management functions for Ferrellgas Partners and the operating partnership. (Controls the management and operations of the partnership.)

Retail Sales

Sales of propane primarily to residential, industrial/commercial, and agricultural customers. (Represents a core business segment and a key measure of market presence.)

Portable Tank Exchange

A service, branded as Blue Rhino, where customers exchange empty propane tanks for full ones, primarily used for outdoor cooking. (A significant business line contributing to propane sales volume and brand recognition.)

Company-Owned Equipment

Propane tanks located on residential customers' premises that are owned by Ferrellgas. (A strategy to enhance customer retention, as approximately 69% of residential customers utilize this equipment.)

GAAP

Accounting Principles Generally Accepted in the United States. (The standard accounting framework used for preparing the company's financial statements.)

Propane Sales Volume

The total volume of propane sold to retail and wholesale customers. (A key operational metric indicating market activity and sales performance, reported at 784 million gallons for FY2025.)

Year-Over-Year Comparison

The provided text indicates a 2.6% increase in total propane sales volume for the fiscal year ended July 31, 2025, reaching 784 million gallons compared to 764 million gallons in the prior year. No specific comparative data on revenue growth, margin changes, or new risks identified in the previous filing is available in this excerpt.

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

View Full Filing

View this 10-K filing on SEC EDGAR