Ferrellgas Boosts Propane Sales to 784M Gallons in FY25

TL;DR

**Ferrellgas is heating up, with a solid 784 million gallons sold in FY25, making it a strong contender in the propane market despite energy price volatility.**

AI Summary

Ferrellgas Partners, L.P. reported a propane sales volume 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 publicly traded Delaware limited partnership formed in 1994, is primarily engaged in the retail distribution of propane and related equipment sales, operating in all 50 states, the District of Columbia, and Puerto Rico. Ferrellgas Partners is a holding entity, with its activities primarily conducted through its operating partnership, Ferrellgas, L.P., which accounts for substantially all consolidated assets, sales, and operating earnings. The company believes it is the second largest retail marketer of propane in the United States by retail sales volume in fiscal 2025 and a leading national provider of propane by portable tank exchange under the Blue Rhino brand. Ferrell Companies, owned 100% by an employee stock ownership trust, beneficially owns approximately 23.4% of Ferrellgas Partners' outstanding Class A Units. Key risks include weather conditions affecting demand, fluctuations in wholesale propane prices, supply disruptions, and competition from other energy sources.

Why It Matters

Ferrellgas's increased propane sales volume to 784 million gallons in fiscal 2025 signals robust demand in a competitive energy market, impacting investors through potential revenue growth. For employees, this growth could mean job stability and expansion opportunities within the company's extensive national distribution network. Customers benefit from a reliable, widespread propane supply, particularly for residential heating and the popular Blue Rhino portable tank exchange. This performance underscores Ferrellgas's strong position as the second-largest U.S. retail propane marketer, intensifying competition with rivals like AmeriGas and Suburban Propane.

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.' These external factors, largely beyond management's control, introduce inherent unpredictability to revenue and gross margin, making financial performance susceptible to market swings.

Analyst Insight

Investors should monitor Ferrellgas's ability to manage fluctuating wholesale propane prices and adapt to changing weather patterns, which are critical drivers of profitability. Given its position as the second-largest U.S. retail marketer, consider its competitive advantages in distribution and brand recognition, particularly with Blue Rhino, as potential mitigators against market volatility.

Financial Highlights

revenue

$4,053,483,300

revenue Growth

+5.0%

Revenue Breakdown

Key Numbers

• 784 million gallons — Propane sales volume (Increased from 764 million gallons in fiscal 2024, indicating growth in demand.)
• $40,534,833 — Market value of common units (Aggregate market value of Ferrellgas Partners' common units held by nonaffiliates as of January 31, 2025.)
• 23.4% — Ferrell Companies' ownership (Beneficial ownership of outstanding Class A Units by Ferrell Companies, indicating significant insider control.)
• 1994 — Formation year (Ferrellgas Partners was formed, highlighting its long operational history.)
• 50 states — Operational reach (Company operates in all 50 states, District of Columbia, and Puerto Rico, demonstrating broad market penetration.)

Key Players & Entities

• Ferrellgas Partners, L.P. (company) — publicly traded Delaware limited partnership
• Ferrellgas, L.P. (company) — operating partnership, accounts for substantially all assets, sales, and operating earnings
• Ferrellgas, Inc. (company) — sole general partner of Ferrellgas Partners and the operating partnership
• Ferrell Companies (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 Ferrellgas Partners' common units held by nonaffiliates as of January 31, 2025
• 784 million gallons (dollar_amount) — total annual propane sales volume for fiscal year ended July 31, 2025
• 764 million gallons (dollar_amount) — total annual propane sales volume for fiscal year ended July 31, 2024
• 23.4% (dollar_amount) — beneficial ownership of Class A Units by Ferrell Companies
• OTC Market (regulator) — where Class A Units are traded under symbol 'FGPR'

FAQ

Risk Factors

• Weather Dependency [high — market]: Demand for propane is significantly influenced by weather conditions. Colder winters increase demand for heating, while warmer winters can reduce it. This variability can lead to unpredictable sales volumes and impact financial performance.
• Propane Price Volatility [high — market]: Fluctuations in wholesale propane prices directly affect the company's cost of goods sold and gross margins. The company's profitability is sensitive to the spread between its purchase price and its selling price.
• Supply Chain Disruptions [medium — operational]: Disruptions in the supply of propane, whether due to production issues, transportation problems, or geopolitical events, can impact the company's ability to meet customer demand and maintain consistent operations.
• Competition [medium — market]: Ferrellgas faces competition from other energy sources and propane marketers. The company's market position, particularly as the second-largest retail marketer, is subject to competitive pressures.
• Cybersecurity Threats [medium — operational]: As a company with significant digital operations and customer data, Ferrellgas is exposed to cybersecurity risks, including potential data breaches and operational disruptions.

Industry Context

Ferrellgas operates in the propane distribution industry, a sector heavily influenced by weather patterns and commodity price volatility. The company is a leading player, ranking as the second-largest retail marketer of propane by volume in the U.S. and a prominent provider of portable tank exchanges under the Blue Rhino brand. Key trends include the ongoing demand for propane in residential, commercial, and agricultural sectors, alongside competition from alternative energy sources.

Regulatory Implications

As a distributor of a regulated energy commodity, Ferrellgas is subject to various federal, state, and local regulations concerning safety, environmental standards, and transportation. Compliance with these regulations is crucial to avoid penalties and maintain operational continuity. Changes in energy policy or environmental mandates could also impact operational costs and market dynamics.

What Investors Should Do

1. Monitor propane price trends and hedging strategies.
2. Analyze weather forecasts and their potential impact on demand.
3. Evaluate competitive landscape and market share.
4. Assess the impact of the employee stock ownership trust's influence.

Key Dates

• 1994-04-22: Operating partnership (Ferrellgas, L.P.) was formed. — Marks the establishment of the core operational entity of Ferrellgas Partners, highlighting its long operational history.
• 1994-01-01: Ferrellgas Partners was formed. — Indicates the inception of the publicly traded entity, providing a historical context for its structure and operations.
• 2021-03-30: 1-for-20 reverse unit split effected for Class A Units. — Adjusted the number of outstanding Class A Units, which may impact per-unit metrics and investor perception.

Glossary

Propane sales volume

The total volume of propane sold to retail, wholesale, and other customers. (A key operational metric indicating the scale of the company's core business and its ability to meet market demand.)

Retail sales

Sales of propane and other gas liquids directly to end-users, including residential, industrial/commercial, and agricultural customers. (Represents a significant portion of the company's business, directly reflecting customer demand and market penetration.)

Wholesale sales

Sales of propane and other gas liquids to resellers, including portable tank exchange customers and bulk propane sales to other wholesale customers. (Indicates the company's role in the broader propane distribution network and its reach through third-party channels.)

Portable tank exchange

A service, nationally branded as Blue Rhino, where customers can exchange an empty propane tank for a full one. (A key business segment for Ferrellgas, contributing to its market leadership in this specific niche.)

General partner

The entity responsible for managing the partnership's operations and making strategic decisions. (In this case, Ferrellgas, Inc. acts as the general partner, indicating a centralized management structure.)

Class A Units

The publicly traded units of Ferrellgas Partners, formerly common units, adjusted by a reverse unit split. (Represents the ownership stake available to public investors, with their trading on the OTC Market being a key indicator of market interest.)

Employee stock ownership trust

A trust that holds company stock for the benefit of employees. (This trust owns Ferrell Companies, which in turn has significant ownership in Ferrellgas Partners, indicating a strong employee-aligned ownership structure.)

Year-Over-Year Comparison

The provided text indicates an increase in propane sales volume to 784 million gallons for fiscal year 2025, up from 764 million gallons in fiscal year 2024, suggesting revenue growth. While specific financial figures like net income and margins are not detailed in this excerpt, the increase in sales volume points to positive operational momentum. No new significant risks or changes in existing risk factors were explicitly highlighted in the provided sections compared to a prior filing.

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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