Ferrellgas Propane Volumes Rise to 784M Gallons in FY25

TL;DR

**Ferrellgas's propane sales volume growth to 784 million gallons in FY25 shows solid operational execution, making it a stable, albeit unexciting, long-term hold in the energy distribution sector.**

AI Summary

Ferrellgas Partners, L.P. 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 publicly traded Delaware limited partnership formed in 1994, is primarily engaged in the retail distribution of propane and related equipment sales, operating as the second largest retail marketer of propane in the United States. Its Class A Units trade on the OTC Market under the symbol "FGPR." Ferrellgas Partners functions as a holding entity, with substantially all operations conducted through its direct subsidiary, Ferrellgas, L.P., which accounts for nearly all consolidated assets, sales, and operating earnings. The company serves diverse customer segments including residential, industrial/commercial, portable tank exchange (Blue Rhino brand), and agricultural customers across all 50 states, the District of Columbia, and Puerto Rico. 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, signals robust demand in its diverse customer segments, from residential heating to Blue Rhino portable tank exchanges. This performance is crucial for investors, indicating the company's ability to maintain its market position as the second-largest U.S. retail propane marketer despite competitive pressures and fluctuating energy prices. For employees, stable sales volumes translate to job security and potential growth opportunities within the extensive distribution network. Customers benefit from a reliable, established supplier, particularly those utilizing company-owned tanks, which fosters loyalty and reduces switching costs. The broader market sees a key player in the energy distribution sector demonstrating resilience, potentially influencing regional energy pricing and infrastructure investments.

Risk Assessment

Risk Level: medium — The company faces significant exposure to weather conditions, which directly impact propane demand, and the volatility of wholesale propane, motor fuel, and crude oil prices, as stated in 'Item 1A. Risk Factors.' Additionally, the filing mentions risks related to 'disruptions to the supply of propane' and 'competition from other industry participants and other energy sources,' which could materially affect profitability despite its market position.

Analyst Insight

Investors should monitor wholesale propane price trends and regional weather forecasts, as these are primary drivers of Ferrellgas's profitability. Given the company's stable market position and the sticky nature of its customer base (69% use company-owned tanks), consider it a defensive play in the energy sector, but be aware of its exposure to commodity price fluctuations.

Financial Highlights

debt To Equity

X.X

revenue

$X

operating Margin

X%

total Assets

$X

total Debt

$X

net Income

$X

eps

$X

gross Margin

X%

cash Position

$X

revenue Growth

+X%

Revenue Breakdown

Key Numbers

• 784M gallons — Propane Sales Volume (Increased from 764 million gallons in FY2024, demonstrating growth in core business.)
• 69% — Residential Customers with Company Equipment (Indicates strong customer retention due to tank ownership, minimizing churn.)
• $40.5M — Market Value of Nonaffiliate Common Units (As of January 31, 2025, reflecting the public valuation of Ferrellgas Partners.)
• 23.4% — Ferrell Companies' Class A Unit Ownership (Significant beneficial ownership by the parent of the general partner, indicating concentrated control.)
• 1994 — Year of Formation (Highlights the company's long-standing presence and experience in the propane distribution industry.)

Key Players & Entities

• Ferrellgas Partners, L.P. (company) — publicly traded Delaware limited partnership
• Ferrellgas, L.P. (company) — operating partnership and direct subsidiary
• Ferrellgas Partners Finance Corp. (company) — direct subsidiary
• Ferrellgas, Inc. (company) — sole general partner
• 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 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 Class A Units by Ferrell Companies

FAQ

Risk Factors

• Commodity Price Volatility [high — market]: The price of propane and other gas liquids is subject to significant volatility due to factors such as weather, supply and demand, and geopolitical events. This volatility can impact our cost of goods sold and profitability, as seen in the fluctuating margins for propane distribution.
• Dependence on Third-Party Suppliers [medium — operational]: Ferrellgas purchases substantially all of its propane and other gas liquids from third-party suppliers. Disruptions in supply from these suppliers, due to production issues, transportation problems, or other factors, could adversely affect our ability to meet customer demand and our financial performance.
• Environmental and Safety Regulations [medium — regulatory]: The transportation, storage, and distribution of propane are subject to stringent federal, state, and local environmental, health, and safety regulations. Compliance with these regulations requires significant investment and can lead to substantial liabilities in case of non-compliance or accidents.
• Debt Obligations [high — financial]: The company has significant debt obligations, which require substantial cash flow for interest and principal payments. Any inability to service this debt could lead to financial distress or bankruptcy.
• Customer Retention [medium — operational]: While 69% of residential customers utilize company-owned equipment, minimizing churn, a significant portion still relies on third-party tanks. The cost and inconvenience of switching tanks are key retention factors, and any changes in this dynamic could impact customer loyalty.
• Competition [medium — market]: Ferrellgas operates in a competitive market, being the second largest retail marketer of propane in the U.S. Competitors include other large national marketers, regional players, and local distributors, which can exert pressure on pricing and market share.
• Cybersecurity Threats [medium — operational]: The company's operations are increasingly reliant on technology, making it vulnerable to cybersecurity threats. A successful cyberattack could disrupt operations, compromise sensitive data, and lead to significant financial and reputational damage.

Industry Context

Ferrellgas operates as the second-largest retail propane marketer in the U.S., a sector characterized by a mix of large national players, regional distributors, and numerous local providers. The industry is heavily influenced by weather patterns, which impact demand for heating, and by fluctuations in global energy prices. Key trends include consolidation among smaller players and increasing focus on customer retention through service offerings and equipment ownership.

Regulatory Implications

The propane industry is subject to extensive federal, state, and local regulations concerning safety, environmental protection, and transportation. Compliance with these regulations, including those related to the storage and handling of hazardous materials, requires ongoing investment and vigilance to avoid penalties and operational disruptions.

What Investors Should Do

1. Monitor propane price trends and their impact on gross margins.
2. Evaluate customer retention strategies, particularly the impact of company-owned equipment.
3. Assess the company's debt levels and its ability to service its debt obligations.
4. Observe competitive dynamics within the retail propane market.

Key Dates

• 1994-01-01: Company Formation — Highlights the company's long-standing presence and experience in the propane distribution industry.
• 2021-03-30: 1-for-20 Reverse Unit Split — Adjusted the number of outstanding Class A Units, impacting per-unit metrics and potentially market perception.

Glossary

Retail Sales

Sales of propane and other gas liquids primarily to residential, industrial/commercial, and agricultural customers. (Represents a core revenue-generating activity for Ferrellgas, directly serving end-users.)

Wholesale Sales

Sales of propane and other gas liquids primarily to portable tank exchange customers and bulk propane sold to wholesale customers. (Indicates sales to intermediaries or other businesses, contributing to overall volume and revenue.)

Portable Tank Exchange

Sales of propane for portable tanks, nationally branded under the Blue Rhino name, used primarily for outdoor cooking. (A significant segment of the business, leveraging a well-known brand and a broad distribution network.)

General Partner

Ferrellgas, Inc., which performs all management functions for Ferrellgas Partners, L.P. (Central to the company's governance and operational management structure.)

Operating Partnership

Ferrellgas, L.P., through which substantially all of the company's consolidated assets, sales, and operating earnings are conducted. (The primary operational entity of the holding company, responsible for the core business activities.)

Class A Units

Publicly traded units of Ferrellgas Partners, L.P. on the OTC Market under the symbol 'FGPR'. (Represents the publicly held equity of the partnership, important for valuation and investor interest.)

Propane Sales Volume

The total volume of propane sold to retail and wholesale customers. (A key operational metric indicating the scale of the core business, with 784 million gallons reported for FY2025.)

Year-Over-Year Comparison

While specific comparative figures for FY2025 revenue and net income are not detailed in this excerpt, the reported increase in propane sales volume from 764 million gallons in FY2024 to 784 million gallons in FY2025 indicates positive top-line momentum. The company's strategy of having residential customers utilize company-owned equipment (69%) is highlighted as a key factor for customer retention, suggesting a continued focus on stable revenue streams. No new significant risks were explicitly detailed in the provided text compared to the general industry risks previously understood.

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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