10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended April 30, 2024

or

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from to

Commission file numbers: 001-11331, 000-50182, 333-06693-02 and 000-50183

Ferrellgas Partners, L.P.

Ferrellgas, L.P.

Ferrellgas Partners Finance Corp.

Ferrellgas Finance Corp.

(Exact name of registrants as specified in their charters)

Delaware	43-1698480
Delaware	43-1698481
Delaware	43-1742520
Delaware	14-1866671
(States or other jurisdictions of incorporation or organization)	(I.R.S. Employer Identification Nos.)
One Liberty Plaza, Liberty, Missouri	64068
(Address of principal executive office)	(Zip Code)

Registrants’ telephone number, including area code: (816) 792-1600

Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days. Yes ☐ No ☒

Indicate by check mark whether the registrants have submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrants were required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “Large Accelerated Filer,” “Accelerated Filer,” “Smaller Reporting Company,” and “Emerging Growth Company” in Rule 12b-2 of the Exchange Act.

Ferrellgas Partners, L.P.:
Large Accelerated Filer ☐	Accelerated Filer ☐	Non-accelerated Filer ☒	Smaller Reporting Company ☒
			Emerging Growth Company ☐

Ferrellgas, L.P., Ferrellgas Partners Finance Corp. and Ferrellgas Finance Corp.:
Large Accelerated Filer ☐	Accelerated Filer ☐	Non-accelerated Filer ☒	Smaller Reporting Company ☒
			Emerging Growth Company ☐

If an Emerging Growth Company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Ferrellgas Partners, L.P. and Ferrellgas, L.P. ☐

Ferrellgas Partners Finance Corp. and Ferrellgas Finance Corp. ☐

Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act).

Ferrellgas Partners, L.P. and Ferrellgas, L.P. Yes ☐ No ☒

Ferrellgas Partners Finance Corp. and Ferrellgas Finance Corp. Yes ☒ No ☐

Indicate by check mark whether the registrants have filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

Ferrellgas Partners, L.P. and Ferrellgas Partners Finance Corp. Yes ☒ No ☐

Ferrellgas, L.P. and Ferrellgas Finance Corp. N/A

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:	Trading Symbol	Name of each exchange on which registered:
N/A	N/A	N/A

At May 31, 2024, the registrants had Class A Units, Class B Units or shares of common stock outstanding as follows:

Ferrellgas Partners, L.P.	4,857,605	Class A Units
	1,300,000	Class B Units
Ferrellgas, L.P.	n/a	n/a
Ferrellgas Partners Finance Corp.	1,000	Common Stock
Ferrellgas Finance Corp.	1,000	Common Stock

Documents Incorporated by Reference: None

EACH OF FERRELLGAS PARTNERS FINANCE CORP. AND FERRELLGAS FINANCE CORP. MEET THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(A) AND (B) OF FORM 10-Q AND ARE THEREFORE, WITH RESPECT TO EACH SUCH REGISTRANT, FILING THIS FORM 10-Q WITH THE REDUCED DISCLOSURE FORMAT.

EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the quarter ended April 30, 2024 of Ferrellgas Partners, L.P. together with its consolidated subsidiaries, including Ferrellgas, L.P., Ferrellgas Partners Finance Corp., and Ferrellgas Finance Corp. Unless stated otherwise or the context otherwise requires, references to “Ferrellgas Partners” refers to Ferrellgas Partners, L.P. itself, with its consolidated subsidiaries. References to the “operating partnership” mean Ferrellgas, L.P., together (except where the context indicates otherwise) with its consolidated subsidiaries, including Ferrellgas Finance Corp. The terms “us,” “we,” “our,” “ours,” “consolidated,” the “Company” or “Ferrellgas” refer 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 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 Pink Market under the symbol “FGPR.” The operating partnership was formed on April 22, 1994, and accounts for substantially all of our consolidated assets, sales and operating earnings.

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.

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.

We believe that combining the quarterly reports on Form 10-Q for these entities provides the following benefits:

● enhances investors’ understanding of Ferrellgas Partners and the operating partnership by enabling investors to view the business as a whole in the same manner that management views and operates the business;

● eliminates duplicative disclosure and provides a more streamlined and readable presentation, since a substantial portion of the disclosure applies to both Ferrellgas Partners and the operating partnership; and

● creates time and cost efficiencies through the preparation of a combined presentation.

To help investors understand the differences between Ferrellgas Partners and the operating partnership, this report provides separate condensed consolidated financial statements for Ferrellgas Partners and the operating partnership. Noncontrolling interests, Class A Units, Class B Units, shareholders' equity (deficit) and partners' deficit are the main areas of difference between the condensed consolidated financial statements of Ferrellgas Partners and those of the operating partnership. A single set of notes to condensed consolidated financial statements is presented that includes separate discussions for Ferrellgas Partners and the operating partnership, when applicable. A combined Management's Discussion and Analysis of Financial Condition and Results of Operations section is also included that presents combined information and discrete information related to each entity, as applicable.

In order to highlight the differences between Ferrellgas Partners and the operating partnership, this report includes the following sections that provide separate financial information for Ferrellgas Partners and the operating partnership:

● condensed consolidated financial statements; and

● certain accompanying notes to condensed consolidated financial statements, which denote “Ferrellgas Partners” and “The operating partnership” in sections where applicable.

2

FERRELLGAS PARTNERS, L.P.

FERRELLGAS PARTNERS FINANCE CORP.

FERRELLGAS, L.P.

FERRELLGAS FINANCE CORP.

TABLE OF CONTENTS

		Page
PART I - FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS (unaudited)
	Ferrellgas Partners, L.P. and Subsidiaries
	Condensed Consolidated Balance Sheets – April 30, 2024 and July 31, 2023	4
	Condensed Consolidated Statements of Operations – Three and nine months ended April 30, 2024 and 2023	5
	Condensed Consolidated Statements of Comprehensive Income – Three and nine months ended April 30, 2024 and 2023	6
	Condensed Consolidated Statement of Equity (Deficit) – Three and nine months ended April 30, 2024 and 2023	7
	Condensed Consolidated Statements of Cash Flows – Nine months ended April 30, 2024 and 2023	9
	Ferrellgas, L.P. and Subsidiaries
	Condensed Consolidated Balance Sheets – April 30, 2024 and July 31, 2023	10
	Condensed Consolidated Statements of Operations – Three and nine months ended April 30, 2024 and 2023	11
	Condensed Consolidated Statements of Comprehensive Income – Three and nine months ended April 30, 2024 and 2023	12
	Condensed Consolidated Statement of Partners’ Deficit – Three and nine months ended April 30, 2024 and 2023	13
	Condensed Consolidated Statements of Cash Flows – Nine months ended April 30, 2024 and 2023	14
	Ferrellgas Partners, L.P. and Subsidiaries and Ferrellgas, L.P. and Subsidiaries
	Notes to Condensed Consolidated Financial Statements	15
	Ferrellgas Partners Finance Corp.
	Condensed Balance Sheets – April 30, 2024 and July 31, 2023	36
	Condensed Statements of Operations – Three and nine months ended April 30, 2024 and 2023	37
	Condensed Statements of Cash Flows – Nine months ended April 30, 2024 and 2023	38
	Notes to Condensed Financial Statements	39
	Ferrellgas Finance Corp.
	Condensed Balance Sheets – April 30, 2024 and July 31, 2023	40
	Condensed Statements of Operations – Three and nine months ended April 30, 2024 and 2023	41
	Condensed Statements of Cash Flows – Nine months ended April 30, 2024 and 2023	42
	Notes to Condensed Financial Statements	43
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	44
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	63
ITEM 4.	CONTROLS AND PROCEDURES	65
PART II - OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	66
ITEM 1A.	RISK FACTORS	66
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	66
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	66
ITEM 4.	MINE SAFETY DISCLOSURES	66
ITEM 5.	OTHER INFORMATION	66
ITEM 6.	EXHIBITS	67

3

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS (unaudited)

FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except unit data)

(unaudited)

	April 30, 2024		July 31, 2023
ASSETS
Current assets:
Cash and cash equivalents (including $10,783 and $11,126 of restricted cash at April 30, 2024 and July 31, 2023, respectively)	$	73,645	$	137,347
Accounts and notes receivable, net		178,163		159,379
Inventories		91,275		98,104
Price risk management asset		5,398		11,966
Prepaid expenses and other current assets		28,270		29,135
Total current assets		376,751		435,931
Property, plant and equipment, net		622,524		615,174
Goodwill, net		257,006		257,006
Intangible assets (net of accumulated amortization of $356,519 and $349,614 at April 30, 2024 and July 31, 2023, respectively)		114,531		106,615
Operating lease right-of-use assets		56,040		57,839
Other assets, net		60,840		58,838
Total assets	$	1,487,692	$	1,531,403
LIABILITIES, MEZZANINE AND EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$	47,742	$	35,115
Current portion of long-term debt		2,620		2,597
Current operating lease liabilities		24,098		24,600
Other current liabilities		153,945		197,030
Total current liabilities		228,405		259,342
Long-term debt		1,459,856		1,456,184
Operating lease liabilities		33,387		34,235
Other liabilities		28,741		29,084
Contingencies and commitments (Note L)
Mezzanine equity:
Senior preferred units, net of issue discount and offering costs (700,000 units outstanding at April 30, 2024 and July 31, 2023)		651,349		651,349
Equity (Deficit):
Limited partner unitholders
Class A (4,857,605 units outstanding at April 30, 2024 and July 31, 2023)		(1,221,021)		(1,205,103)
Class B (1,300,000 units outstanding at April 30, 2024 and July 31, 2023)		383,012		383,012
General partner unitholder (49,496 units outstanding at April 30, 2024 and July 31, 2023)		(69,716)		(70,566)
Accumulated other comprehensive income		1,018		1,059
Total Ferrellgas Partners, L.P. deficit		(906,707)		(891,598)
Noncontrolling interest		(7,339)		(7,193)
Total deficit		(914,046)		(898,791)
Total liabilities, mezzanine and deficit	$	1,487,692	$	1,531,403

See notes to condensed consolidated financial statements.

4

FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per unit data)

(unaudited)

	For the three months ended April 30,				For the nine months ended April 30,
	2024		2023		2024		2023
Revenues:
Propane and other gas liquids sales	$	490,057	$	559,047	$	1,413,200	$	1,596,777
Other		25,717		28,300		83,464		87,802
Total revenues		515,774		587,347		1,496,664		1,684,579
Costs and expenses:
Cost of sales - propane and other gas liquids sales		240,281		291,826		690,299		852,399
Cost of sales - other		3,195		3,673		11,366		12,692
Operating expense - personnel, vehicle, plant and other		150,629		147,477		454,913		434,572
Operating expense - equipment lease expense		5,275		5,861		15,994		17,471
Depreciation and amortization expense		25,340		23,753		74,179		69,453
General and administrative expense		13,305		16,213		43,321		54,161
Non-cash employee stock ownership plan compensation charge		880		767		2,500		2,212
Loss on asset sales and disposals		130		958		1,847		2,928
Operating income		76,739		96,819		202,245		238,691
Interest expense		(24,685)		(24,297)		(73,205)		(72,483)
Other income, net		1,324		852		3,509		1,865
Earnings before income taxes		53,378		73,374		132,549		168,073
Income tax expense		240		367		711		888
Net earnings		53,138		73,007		131,838		167,185
Net earnings attributable to noncontrolling interest		372		580		839		1,203
Net earnings attributable to Ferrellgas Partners, L.P.	$	52,766	$	72,427	$	130,999	$	165,982
Class A unitholders’ interest in net (loss) earnings (Note M)	$	(63,802)	$	6,115	$	(18,853)	$	16,608
Basic and diluted net (loss) earnings per Class A Unit (Note M)	$	(13.13)	$	1.26	$	(3.88)	$	3.42

See notes to condensed consolidated financial statements.

5

FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

(unaudited)

	For the three months ended April 30,				For the nine months ended April 30,
	2024		2023		2024		2023
Net earnings	$	53,138	$	73,007	$	131,838	$	167,185
Other comprehensive income (loss):
Change in value of risk management derivatives		(1,180)		(10,621)		(116)		(53,044)
Reclassification of (gains) losses on derivatives to earnings, net		(5,179)		13,450		75		7,378
Other comprehensive (loss) income		(6,359)		2,829		(41)		(45,666)
Comprehensive income		46,779		75,836		131,797		121,519
Comprehensive income attributable to noncontrolling interest		(308)		(609)		(839)		(742)
Comprehensive income attributable to Ferrellgas Partners, L.P.	$	46,471	$	75,227	$	130,958	$	120,777

See notes to condensed consolidated financial statements.

6

FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF EQUITY (DEFICIT)

(in thousands)

(unaudited)

	Number of units									Accumulated		Total Ferrellgas
			General					General		other		Partners, L.P.
	Class A	Class B	partner	Class A		Class B		partner		comprehensive		partners’		Non-controlling		Total partners’
	unitholders	unitholders	unitholder	unitholders		unitholders		unitholder		income (loss)		deficit		interest		deficit
Balance at July 31, 2023	4,857.6	1,300.0	49.5	$	(1,205,103)	$	383,012	$	(70,566)	$	1,059	$	(891,598)	$	(7,193)	$	(898,791)
Contributions in connection with non-cash ESOP compensation charges	—	—	—		706		—		7		—		713		7		720
Net earnings allocated to preferred units	—	—	—		(16,088)		—		(163)		—		(16,251)		—		(16,251)
Net loss	—	—	—		(17,381)		—		(175)		—		(17,556)		(345)		(17,901)
Other comprehensive loss	—	—	—		—		—		—		(10,184)		(10,184)		(104)		(10,288)
Balance at October 31, 2023	4,857.6	1,300.0	49.5		(1,237,866)		383,012		(70,897)		(9,125)		(934,876)		(7,635)		(942,511)
Contributions in connection with non-cash ESOP compensation charges	—	—	—		882		—		9		—		891		9		900
Net earnings allocated to preferred units	—	—	—		(16,088)		—		(162)		—		(16,250)		—		(16,250)
Net earnings	—	—	—		94,831		—		958		—		95,789		812		96,601
Other comprehensive income	—	—	—		—		—		—		16,438		16,438		168		16,606
Balance at January 31, 2024	4,857.6	1,300.0	49.5		(1,158,241)		383,012		(70,092)		7,313		(838,008)		(6,646)		(844,654)
Contributions in connection with non-cash ESOP compensation charges	—	—	—		862		—		9		—		871		9		880
Distributions	—	—	—		—		—		—		—		—		(1,010)		(1,010)
Distributions to Class B unitholders	—	—	—		—		(99,996)		—		—		(99,996)		—		(99,996)
Net earnings allocated to Class B units	—	—	—		(99,996)		99,996		—		—		—		—		—
Net earnings allocated to preferred units	—	—	—		(15,885)		—		(160)		—		(16,045)		—		(16,045)
Net earnings	—	—	—		52,239		—		527		—		52,766		372		53,138
Other comprehensive loss	—	—	—		—		—		—		(6,295)		(6,295)		(64)		(6,359)
Balance at April 30, 2024	4,857.6	1,300.0	49.5	$	(1,221,021)	$	383,012	$	(69,716)	$	1,018	$	(906,707)	$	(7,339)	$	(914,046)

See notes to condensed consolidated financial statements.

7

FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF EQUITY (DEFICIT)

(in thousands)

(unaudited)

	Number of units									Accumulated		Total Ferrellgas
			General					General		other		Partners, L.P.
	Class A	Class B	partner	Class A		Class B		partner		comprehensive		partners’		Non-controlling		Total partners’
	unitholders	unitholders	unitholder	unitholders		unitholders		unitholder		income (loss)		deficit		interest		deficit
Balance at July 31, 2022	4,857.6	1,300.0	49.5	$	(1,229,823)	$	383,012	$	(71,320)	$	37,907	$	(880,224)	$	(7,587)	$	(887,811)
Contributions in connection with non-cash ESOP compensation charges	—	—	—		709		—		7		—		716		7		723
Net earnings allocated to preferred units	—	—	—		(16,088)		—		(163)		—		(16,251)		—		(16,251)
Net loss	—	—	—		(4,500)		—		(45)		—		(4,545)		(212)		(4,757)
Other comprehensive loss	—	—	—		—		—		—		(48,478)		(48,478)		(495)		(48,973)
Balance at October 31, 2022	4,857.6	1,300.0	49.5		(1,249,702)		383,012		(71,521)		(10,571)		(948,782)		(8,287)		(957,069)
Contributions in connection with non-cash ESOP compensation charges	—	—	—		707		—		7		—		714		8		722
Net earnings allocated to preferred units	—		—		(16,060)		—		(162)		—		(16,222)		—		(16,222)
Net earnings	—	—	—		97,119		—		981		—		98,100		835		98,935
Other comprehensive income	—	—	—		—		—		—		473		473		5		478
Balance at January 31, 2023	4,857.6	1,300.0	49.5		(1,167,936)		383,012		(70,695)		(10,098)	$	(865,717)		(7,439)		(873,156)
Contributions in connection with non-cash ESOP compensation charges	—	—	—		752		—		8		—		760		7		767
Distributions to Class B unitholders	—	—	—		—		(49,998)		—		—		(49,998)		—		(49,998)
Net earnings allocated to Class B units	—	—	—		(49,998)		49,998		—		—		—		—		—
Net earnings allocated to preferred units	—	—	—		(15,434)		—		(156)		—		(15,590)		—		(15,590)
Net earnings	—	—	—		71,703		—		724		—		72,427		580		73,007
Other comprehensive income	—	—	—		—		—		—		2,800		2,800		29		2,829
Balance at April 30, 2023	4,857.6	1,300.0	49.5	$	(1,160,913)	$	383,012	$	(70,119)	$	(7,298)	$	(855,318)	$	(6,823)	$	(862,141)

See notes to condensed consolidated financial statements.

8

FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

	For the nine months ended April 30,
	2024		2023
Cash flows from operating activities:
Net earnings	$	131,838	$	167,185
Reconciliation of net earnings to net cash provided by operating activities:
Depreciation and amortization expense		74,179		69,453
Non-cash employee stock ownership plan compensation charge		2,500		2,212
Loss on asset sales and disposals		1,847		2,928
Provision for expected credit losses		1,518		909
Other		5,719		6,050
Changes in operating assets and liabilities, net of effects from business acquisitions:
Accounts and notes receivable		(20,302)		(49,556)
Inventories		6,829		17,374
Prepaid expenses and other current assets		865		(4,560)
Accounts payable		12,350		(8,126)
Accrued interest expense		(21,475)		(22,366)
Other current liabilities		(18,632)		(36,063)
Other assets and liabilities		(1,295)		(2,277)
Net cash provided by operating activities		175,941		143,163
Cash flows from investing activities:
Business acquisitions, net of cash acquired		(16,499)		(24,079)
Capital expenditures		(69,490)		(70,246)
Proceeds from sale of assets		1,969		2,079
Net cash used in investing activities		(84,020)		(92,246)
Cash flows from financing activities:
Distributions to Ferrellgas, Inc.		(1,010)		—
Preferred unit distributions		(49,141)		(48,773)
Distributions to Class B unitholders		(99,996)		(49,998)
Payments on long-term debt		(2,167)		(1,291)
Proceeds from short-term borrowings		—		45,000
Repayments of short-term borrowings		—		(45,000)
Cash payments for principal portion of lease liability		(4,459)		(4,935)
Other, net		1,150		—
Net cash used in financing activities		(155,623)		(104,997)
Net change in cash, cash equivalents and restricted cash		(63,702)		(54,080)
Cash, cash equivalents and restricted cash - beginning of period		137,347		158,737
Cash, cash equivalents and restricted cash - end of period	$	73,645	$	104,657

See notes to condensed consolidated financial statements.

9

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

	April 30, 2024		July 31, 2023
ASSETS
Current assets:
Cash and cash equivalents (including $10,783 and $11,126 of restricted cash at April 30, 2024 and July 31, 2023, respectively)	$	73,221	$	137,245
Accounts and notes receivable, net		178,163		159,379
Inventories		91,275		98,104
Price risk management asset		5,398		11,966
Prepaid expenses and other current assets		28,250		29,113
Total current assets		376,307		435,807
Property, plant and equipment, net		622,524		615,174
Goodwill, net		257,006		257,006
Intangible assets (net of accumulated amortization of $356,519 and $349,614 at April 30, 2024 and July 31, 2023, respectively)		114,531		106,615
Operating lease right-of-use assets		56,040		57,839
Other assets, net		60,840		58,838
Total assets	$	1,487,248	$	1,531,279
LIABILITIES, MEZZANINE AND DEFICIT
Current liabilities:
Accounts payable	$	47,742	$	35,115
Current portion of long-term debt		2,620		2,597
Current operating lease liabilities		24,098		24,600
Other current liabilities		153,824		196,966
Total current liabilities		228,284		259,278
Long-term debt		1,459,856		1,456,184
Operating lease liabilities		33,387		34,235
Other liabilities		28,741		29,084
Contingencies and commitments (Note L)
Mezzanine equity:
Senior preferred units, net of issue discount and offering costs (700,000 units outstanding at April 30, 2024 and July 31, 2023)		651,349		651,349
Deficit:
Limited partners		(908,048)		(892,717)
General partner		(7,363)		(7,217)
Accumulated other comprehensive income		1,042		1,083
Total deficit		(914,369)		(898,851)
Total liabilities, mezzanine and deficit	$	1,487,248	$	1,531,279

See notes to condensed consolidated financial statements.

10

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands)

(unaudited)

	For the three months ended April 30,				For the nine months ended April 30,
	2024		2023		2024		2023
Revenues:
Propane and other gas liquids sales	$	490,057	$	559,047	$	1,413,200	$	1,596,777
Other		25,717		28,300		83,464		87,802
Total revenues		515,774		587,347		1,496,664		1,684,579
Costs and expenses:
Cost of sales - propane and other gas liquids sales		240,281		291,826		690,299		852,399
Cost of sales - other		3,195		3,673		11,366		12,692
Operating expense - personnel, vehicle, plant and other		150,629		147,477		454,913		434,572
Operating expense - equipment lease expense		5,275		5,861		15,994		17,471
Depreciation and amortization expense		25,340		23,753		74,179		69,453
General and administrative expense		13,292		16,129		43,313		54,074
Non-cash employee stock ownership plan compensation charge		880		767		2,500		2,212
Loss on asset sales and disposals		130		958		1,847		2,928
Operating income		76,752		96,903		202,253		238,778
Interest expense		(24,685)		(24,297)		(73,205)		(72,483)
Other income, net		1,002		723		3,190		1,732
Earnings before income taxes		53,069		73,329		132,238		168,027
Income tax expense		206		362		659		883
Net earnings	$	52,863	$	72,967	$	131,579	$	167,144

See notes to condensed consolidated financial statements.

11

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

(unaudited)

	For the three months ended April 30,				For the nine months ended April 30,
	2024		2023		2024		2023
Net earnings	$	52,863	$	72,967	$	131,579	$	167,144
Other comprehensive income (loss):
Change in value of risk management derivatives		(1,180)		(10,621)		(116)		(53,044)
Reclassification of (gains) losses on derivatives to earnings, net		(5,179)		13,450		75		7,378
Other comprehensive (loss) income:		(6,359)		2,829		(41)		(45,666)
Comprehensive income	$	46,504	$	75,796	$	131,538	$	121,478

See notes to condensed consolidated financial statements.

12

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF PARTNERS’ DEFICIT

(in thousands)

(unaudited)

					Accumulated
					other		Total
	Limited		General		comprehensive		partners’
	partner		partner		income (loss)		deficit
Balance at July 31, 2023	$	(892,717)	$	(7,217)	$	1,083	$	(898,851)
Contributions in connection with non-cash ESOP compensation charges		713		7		—		720
Net earnings allocated to preferred units		(16,251)		—		—		(16,251)
Net loss		(17,538)		(345)		—		(17,883)
Other comprehensive loss		—		—		(10,288)		(10,288)
Balance at October 31, 2023		(925,793)		(7,555)		(9,205)		(942,553)
Contributions in connection with non-cash ESOP compensation charges		891		9		—		900
Net earnings allocated to preferred units		(16,250)		—		—		(16,250)
Net earnings		95,787		812		—		96,599
Other comprehensive income		—		—		16,606		16,606
Balance at January 31, 2024		(845,365)		(6,734)		7,401		(844,698)
Contributions in connection with non-cash ESOP compensation charges		871		9		—		880
Distributions		(100,000)		(1,010)		—		(101,010)
Net earnings allocated to preferred units		(16,045)		—		—		(16,045)
Net earnings		52,491		372		—		52,863
Other comprehensive loss		—		—		(6,359)		(6,359)
Balance at April 30, 2024	$	(908,048)	$	(7,363)	$	1,042	$	(914,369)

					Accumulated
					other		Total
	Limited		General		comprehensive		partners’
	partner		partner		income (loss)		deficit
Balance at July 31, 2022	$	(918,146)	$	(7,987)	$	38,307	$	(887,826)
Contributions in connection with non-cash ESOP compensation charges		716		7		—		723
Net earnings allocated to preferred units		(16,251)		—		—		(16,251)
Net loss		(4,544)		(212)		—		(4,756)
Other comprehensive loss		—		—		(48,973)		(48,973)
Balance at October 31, 2022		(938,225)		(8,192)		(10,666)		(957,083)
Contributions in connection with non-cash ESOP compensation charges		714		8		—		722
Net earnings allocated to preferred units		(16,222)		—		—		(16,222)
Net earnings		98,098		835		—		98,933
Other comprehensive income		—		—		478		478
Balance at January 31, 2023		(855,635)		(7,349)		(10,188)		(873,172)
Contributions in connection with non-cash ESOP compensation charges		760		7		—		767
Distributions		(50,000)		—		—		(50,000)
Net earnings allocated to preferred units		(15,590)		—		—		(15,590)
Net earnings		72,387		580		—		72,967
Other comprehensive income		—		—		2,829		2,829
Balance at April 30, 2023	$	(848,078)	$	(6,762)	$	(7,359)	$	(862,199)

See notes to condensed consolidated financial statements.

13

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

	For the nine months ended April 30,
	2024		2023
Cash flows from operating activities:
Net earnings	$	131,579	$	167,144
Reconciliation of net earnings to net cash provided by operating activities:
Depreciation and amortization expense		74,179		69,453
Non-cash employee stock ownership plan compensation charge		2,500		2,212
Loss on asset sales and disposals		1,847		2,928
Provision for expected credit losses		1,518		909
Other		5,719		6,050
Changes in operating assets and liabilities, net of effects from business acquisitions:
Accounts and notes receivable		(20,302)		(49,556)
Inventories		6,829		17,374
Prepaid expenses and other current assets		863		(4,560)
Accounts payable		12,350		(8,126)
Accrued interest expense		(21,475)		(22,366)
Other current liabilities		(18,689)		(36,149)
Other assets and liabilities		(1,295)		(2,277)
Net cash provided by operating activities		175,623		143,036
Cash flows from investing activities:
Business acquisitions, net of cash acquired		(16,499)		(24,079)
Capital expenditures		(69,490)		(70,246)
Proceeds from sale of assets		1,969		2,079
Net cash used in investing activities		(84,020)		(92,246)
Cash flows from financing activities:
Distributions to Ferrellgas, Inc.		(1,010)		—
Preferred unit distributions		(49,141)		(48,773)
Distributions to Ferrellgas Partners		(100,000)		(50,000)
Payments on long-term debt		(2,167)		(1,291)
Proceeds from short-term borrowings		—		45,000
Repayments of short-term borrowings		—		(45,000)
Cash paid for principal portion of finance lease liability		(4,459)		(4,935)
Other, net		1,150		—
Net cash used in financing activities		(155,627)		(104,999)
Net change in cash, cash equivalents and restricted cash		(64,024)		(54,209)
Cash, cash equivalents and restricted cash - beginning of period		137,245		158,466
Cash, cash equivalents and restricted cash - end of period	$	73,221	$	104,257

See notes to condensed consolidated financial statements.

14

FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES

FERRELLGAS, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except per unit data, unless otherwise designated)

(unaudited)

A.    Partnership organization and formation

Ferrellgas Partners

Ferrellgas Partners, L.P. (“Ferrellgas Partners”) was formed on April 19, 1994, and is a publicly traded limited partnership. Ferrellgas Partners is a holding entity that conducts no operations and has two direct subsidiaries, Ferrellgas Partners Finance Corp. and Ferrellgas, L.P. (the “operating partnership”). Ferrellgas Partners was formed to acquire and hold a limited partner interest in the operating partnership. Ferrellgas Partners owns a 100% equity interest in Ferrellgas Partners Finance Corp., whose only business activity is to act as the co-issuer and co-obligor of any debt securities issued by Ferrellgas Partners. Our activities are primarily conducted through the operating partnership. Ferrellgas Partners and the operating partnership, collectively referred to as “Ferrellgas,” are both Delaware limited partnerships and are governed by their respective partnership agreements. These agreements contain specific provisions for the allocation of net earnings and loss to each of the partners for purposes of maintaining the partner capital accounts.

Ferrellgas, Inc. (the “general partner”), a Delaware corporation and a wholly-owned subsidiary of Ferrell Companies, is the sole general partner of Ferrellgas Partners and the operating partnership and, excluding the economic interests attributable to Ferrellgas Partners’ Class B Units and the operating partnership’s Preferred Units (as defined in Note F “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. Our general partner performs all management functions for us. Unless contractually provided for, creditors of the operating partnership have no recourse with regards to Ferrellgas Partners. As of April 30, 2024, Ferrell Companies Inc., a Kansas corporation (“Ferrell Companies”), the parent company of our general partner, beneficially owns approximately 23.4% of Ferrellgas Partners’ outstanding Class A Units. Ferrell Companies is owned 100% by an employee stock ownership trust.

The operating partnership

The operating partnership was formed on April 22, 1994, and accounts for substantially all of our consolidated assets, sales and operating earnings. The operating partnership is a limited partnership that owns and operates propane distribution and related assets. Ferrellgas Partners and the holders of the Preferred Units are the only limited partners of the operating partnership.

The operating partnership owns a 100% equity interest in Ferrellgas Finance Corp., whose only business activity is to act as the co-issuer and co-obligor of debt securities issued by the operating partnership.

The operating partnership is primarily engaged in the retail distribution of propane and related equipment sales. The propane distribution market is seasonal because propane is used primarily for heating in residential and commercial buildings. Ferrellgas serves residential, industrial/commercial, portable tank exchange, agricultural, wholesale and other customers in all 50 states, the District of Columbia, and Puerto Rico.

Basis of presentation

Due to seasonality, the results of operations for the nine months ended April 30, 2024 are not necessarily indicative of the results to be expected for the full fiscal year ending July 31, 2024.

The condensed consolidated financial statements of Ferrellgas reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the interim periods presented. All adjustments to the condensed consolidated financial statements were of a normal recurring nature. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with (i) the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and (ii) the consolidated financial statements and accompanying notes included in Ferrellgas’ Annual Report on Form 10-K for fiscal 2023.

15

B.    Summary of significant accounting policies

(1) Accounting estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from these estimates. Significant estimates impacting the condensed consolidated financial statements include accruals that have been established for contingent liabilities, pending claims and legal actions arising in the normal course of business, useful lives of property, plant and equipment, residual values of tanks, capitalization of customer tank installation costs, amortization methods of intangible assets, valuation methods used to value sales returns and allowances, allowance for expected credit losses, fair value of reporting unit, recoverability of long-lived assets, assumptions used to value business combinations, determination of incremental borrowing rate used to measure right-of-use asset (“ROU asset”) and lease liability, and fair values of derivative contracts.

(2) Goodwill, net

Goodwill is tested for impairment annually during the second fiscal quarter, or more frequently if events or changes in circumstances indicate that it is more likely than not the fair value of a reporting unit is less than the carrying value. Ferrellgas has determined that it has one reporting unit for goodwill impairment testing purposes. Ferrellgas completed its most recent annual goodwill impairment test on January 31, 2024 and did not incur an impairment loss.

(3) New accounting standards

Recently adopted accounting pronouncements

No new accounting standards were adopted during the nine months ended April 30, 2024.

Recently issued accounting pronouncements not yet adopted

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), to improve segment disclosures, primarily through enhanced disclosures for significant segment expenses. ASU 2023-07 does not change how a public entity identifies its operating segments, aggregates those operating segments, or applies quantitative thresholds to determine its reportable segments. The Update is effective on a retrospective basis for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company plans to adopt ASU 2023-07 starting with our Form 10-K for the year ended July 31, 2025, and our quarterly reports on Form 10-Q starting with our quarterly report for the quarter ended October 31, 2025. The adoption of this guidance will impact our disclosures only and we do not expect it to have a material impact.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). In addition to new disclosures associated with the reconciliation of the effective tax rate to the statutory rate, ASU 2023-09 requires information related to taxes paid to be disaggregated for federal and state taxes and further disaggregated for specific jurisdictions to the extent they exceed a quantitative threshold. ASU 2023-09 is effective prospectively with an option for retrospective application for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company plans to adopt ASU 2023-09 as of August 1, 2025. The adoption of this guidance will only impact our disclosures and we do not expect it to have a material impact.

16

C.    Supplemental financial statement information

Inventories

Inventories consist of the following:

	April 30, 2024		July 31, 2023
Propane gas and related products	$	71,813	$	76,996
Appliances, parts and supplies, and other		19,462		21,108
Inventories	$	91,275	$	98,104

In addition to inventories on hand, Ferrellgas enters into contracts to take delivery of propane for supply procurement purposes with terms that generally do not exceed 36 months. Most of these contracts call for payment based on market prices at the date of delivery. As of April 30, 2024, Ferrellgas had committed, for supply procurement purposes, to deliver approximately 0.6 million gallons of propane at net fixed prices.

Prepaid expenses and other current assets

Ferrellgas Partners

Prepaid expenses and other current assets consist of the following:

	April 30, 2024		July 31, 2023
Broker margin deposit assets	$	4,633	$	11,939
Other		23,637		17,196
Prepaid expenses and other current assets	$	28,270	$	29,135

The operating partnership

Prepaid expenses and other current assets consist of the following:

	April 30, 2024		July 31, 2023
Broker margin deposit assets	$	4,633	$	11,939
Other		23,617		17,174
Prepaid expenses and other current assets	$	28,250	$	29,113

Other current liabilities

Ferrellgas Partners

Other current liabilities consist of the following:

	April 30, 2024		July 31, 2023
Accrued interest	$	7,536	$	29,011
Customer deposits and advances		28,724		36,226
Accrued payroll		28,219		35,075
Accrued insurance		14,997		15,256
Broker margin deposit liability		4,867		6,972
Accrued senior preferred units distributions		16,935		17,452
Other		52,667		57,038
Other current liabilities	$	153,945	$	197,030

17

The operating partnership

Other current liabilities consist of the following:

	April 30, 2024		July 31, 2023
Accrued interest	$	7,536	$	29,011
Customer deposits and advances		28,724		36,226
Accrued payroll		28,219		35,075
Accrued insurance		14,997		15,256
Broker margin deposit liability		4,867		6,972
Accrued senior preferred units distributions		16,935		17,452
Other		52,546		56,974
Other current liabilities	$	153,824	$	196,966

Shipping and handling expenses

Shipping and handling expenses are classified in the following condensed consolidated statements of operations line items:

	For the three months ended April 30,				For the nine months ended April 30,
	2024		2023		2024		2023
Operating expense - personnel, vehicle, plant and other	$	76,612	$	78,940	$	222,500	$	218,956
Depreciation and amortization expense		3,407		3,651		9,902		12,962
Operating expense - equipment lease expense		3,313		3,502		10,321		9,039
Shipping and handling expenses	$	83,332	$	86,093	$	242,723	$	240,957

Cash, cash equivalents and restricted cash

For purposes of the condensed consolidated statements of cash flows, Ferrellgas considers cash equivalents to include all highly liquid debt instruments purchased with an original maturity of three months or less. Restricted cash in the tables below as of April 30, 2024 and July 31, 2023 consists of the balance of a cash deposit made with the administrative agent under the operating partnership’s senior secured credit facility that was terminated in April 2020, which may be used by the administrative agent to pay contingent obligations arising under the financing agreement that governed the terminated senior secured credit facility.

Ferrellgas Partners

Cash, cash equivalents and restricted cash consist of the following:

	April 30, 2024		July 31, 2023
Cash and cash equivalents	$	62,862	$	126,221
Restricted cash		10,783		11,126
Cash, cash equivalents and restricted cash	$	73,645	$	137,347

The operating partnership

Cash, cash equivalents and restricted cash consist of the following:

	April 30, 2024		July 31, 2023
Cash and cash equivalents	$	62,438	$	126,119
Restricted cash		10,783		11,126
Cash, cash equivalents and restricted cash	$	73,221	$	137,245

18

Certain cash flow and non-cash activities

Certain cash flow and significant non-cash activities are presented below:

Ferrellgas Partners

	For the nine months ended April 30,
	2024		2023
Cash paid for:
Interest	$	88,393	$	88,865
Income taxes	$	495	$	713
Non-cash investing and financing activities:
Liabilities incurred in connection with acquisitions	$	1,585	$	3,435
Change in accruals for property, plant and equipment additions	$	1,259	$	331
Lease liabilities arising from operating ROU assets	$	16,526	$	6,254
Lease liabilities arising from finance ROU assets	$	3,884	$	—
Accrued senior preferred units distributions	$	16,935	$	16,870

The operating partnership

	For the nine months ended April 30,
	2024		2023
Cash paid for:
Interest	$	88,393	$	88,865
Income taxes	$	477	$	708
Non-cash investing and financing activities:
Liabilities incurred in connection with acquisitions	$	1,585	$	3,435
Change in accruals for property, plant and equipment additions	$	1,259	$	331
Lease liabilities arising from operating ROU assets	$	16,526	$	6,254
Lease liabilities arising from finance ROU assets	$	3,884	$	—
Accrued senior preferred units distributions	$	16,935	$	16,870

D.    Accounts and notes receivable, net

Accounts and notes receivable, net consist of the following:

	April 30, 2024		July 31, 2023
Accounts receivable	$	182,177	$	163,537
Note receivable		2,500		2,500
Allowance for expected credit losses		(6,514)		(6,658)
Accounts and notes receivable, net	$	178,163	$	159,379

19

E.    Debt

Short-term borrowing

Ferrellgas classifies borrowings under its Credit Facility (as defined below) as short-term because they are primarily used to fund working capital needs that management intends to pay down within the twelve month period following the balance sheet date. As of April 30, 2024, we did not have any short-term borrowings. For further discussion, see the “Senior secured revolving credit facility” section below.

Long-term debt

Long-term debt consists of the following:

	April 30, 2024		July 31, 2023
Unsecured senior notes
Fixed rate, 5.375%, due 2026	$	650,000	$	650,000
Fixed rate, 5.875%, due 2029		825,000		825,000
Notes payable
8.3% weighted average interest rate at April 30, 2024 and July 31, 2023, due 2024 to 2029, net of unamortized discount of $1,050 and $1,040 at April 30, 2024 and July 31, 2023, respectively		6,439		6,615
Total debt, excluding unamortized debt issuance and other costs		1,481,439		1,481,615
Unamortized debt issuance and other costs		(18,963)		(22,834)
Less: current portion of long-term debt		2,620		2,597
Long-term debt	$	1,459,856	$	1,456,184

Senior secured revolving credit facility

The operating partnership, the general partner and certain of the operating partnership’s subsidiaries as guarantors are parties to a credit agreement dated March 30, 2021, as amended on May 23, 2023 (the “Credit Agreement”), with JPMorgan Chase Bank, N.A. as administrative agent and collateral agent, and the lenders and issuing lenders party thereto from time to time, which provides for a four-year revolving credit facility (the “Credit Facility”) in an aggregate principal amount of up to $350.0 million. The Credit Agreement includes a sublimit not to exceed $300.0 million for the issuance of letters of credit. As of April 30, 2024, the operating partnership had no short-term borrowings.

All borrowings under the Credit Facility are guaranteed by the general partner and the direct and indirect subsidiaries of the operating partnership (other than Ferrellgas Finance Corp. and Ferrellgas Receivables, LLC) and a limited-recourse guaranty from Ferrellgas Partners (limited to its equity interests in the operating partnership). Additionally, all borrowings are secured, on a first priority basis, by substantially all of the assets of the operating partnership and its subsidiaries and all of the equity interests in the operating partnership held by the general partner and Ferrellgas Partners.

Availability under the Credit Facility is, at any time, an amount equal to (a) the lesser of the revolving commitment and the Borrowing Base (as defined below) minus (b) the sum of the aggregate outstanding amount of borrowings under the Credit Facility plus the undrawn amount of outstanding letters of credit under the Credit Facility plus unreimbursed drawings in respect of letters of credit (unless otherwise converted into revolving loans). The “Borrowing Base” equals the sum of: (a) $200.0 million, plus (b) 80% of the eligible accounts receivable of the operating partnership and its subsidiaries, plus (c) 70% of the eligible propane inventory of the operating partnership and its subsidiaries, valued at weighted average cost, less (d) certain reserves, as determined and subject to certain modifications by the administrative agent in its permitted discretion.

20

Amounts borrowed under the Credit Facility bear interest, at the operating partnership’s option, at either (a) for base rate loans, (i) a base rate determined by reference to the highest of (A) the rate of interest last quoted by The Wall Street Journal in the U.S. as the prime rate in effect, (B) the NYFRB Rate from time to time plus 0.50% per annum and (C) the Adjusted term Secured Overnight Financing Rate (“SOFR”) for a one-month interest period plus 1.00% per annum plus (ii) a margin of 1.50% to 2.00% per annum depending on total net leverage or (b) for Eurodollar rate loans, (i) a rate determined by reference to the Adjusted term SOFR plus (ii) a margin of 2.50% to 3.00% per annum depending on total net leverage. The operating partnership will be required to pay an undrawn fee to the lenders on the average daily unused amount of the Credit Facility at a rate of 0.375% to 0.50% per annum depending on total net leverage.

The Credit Agreement contains customary representations, warranties, covenants and events of default and requires the operating partnership to maintain the following financial covenants:

Financial Covenant	Ratio
Minimum interest coverage ratio (1)	2.50x
Maximum secured leverage ratio (2)	2.50x
Maximum total net leverage ratio (3) (4)	4.75x

(1) Defined generally as the ratio of adjusted EBITDA to cash interest expense.

(2) Defined generally as the ratio of total first priority secured indebtedness to adjusted EBITDA.

(3) Defined generally as the ratio of total indebtedness (net of unrestricted cash, subject to certain limits) to adjusted EBITDA.

(4) Was 5.25x immediately prior to the quarter ended October 31, 2022 and 5.00x immediately prior to the quarter ended April 30, 2023.

In addition to the financial covenants, the Credit Agreement includes covenants that if not met will restrict the ability of the operating partnership to take certain actions. In particular, under these covenants, subject to certain exceptions and additional requirements, the operating partnership is permitted to make cash distributions to holders of Preferred Units, Ferrellgas Partners and the general partner, redemptions of Preferred Units and other restricted payments (i) only in limited amounts specified in the Credit Agreement and (ii) only if availability under the Credit Facility exceeds the greater of $50.0 million and 15% of the Borrowing Base and the operating partnership’s total net leverage ratio is not greater than 4.75 to 1.0. As of April 30, 2024, the operating partnership is in compliance with all of its debt covenants.

Senior unsecured notes

The operating partnership has $650.0 million aggregate principal amount of 5.375% senior notes due 2026 (the “2026 Notes”) and $825.0 million aggregate principal amount of 5.875% senior notes due 2029 (the “2029 Notes”) issued and outstanding pursuant to indentures each dated March 30, 2021. The 2026 Notes and 2029 Notes are the senior unsecured obligations of the operating partnership and Ferrellgas Finance Corp. and are unconditionally guaranteed, jointly and severally, on a senior unsecured basis by the general partner and all domestic subsidiaries of the operating partnership other than Ferrellgas Finance Corp. and Ferrellgas Receivables, LLC.

The 2026 Notes and 2029 Notes may be redeemed at the issuers’ option, in whole or in part, at the redemption prices set forth in the indenture governing such notes, plus accrued and unpaid interest. Beginning on April 1, 2025 and April 1, 2026, the 2026 Notes and 2029 Notes, respectively, may be redeemed at par plus accrued and unpaid interest.

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The indentures governing the 2026 Notes and 2029 Notes contain customary affirmative and negative covenants restricting, among other things, the ability of the operating partnership and its restricted subsidiaries to take certain actions. In particular, under these covenants, subject to certain exceptions and additional requirements, the operating partnership is permitted to make cash distributions to holders of Preferred Units, Ferrellgas Partners and the general partner, redemptions of Preferred Units and other restricted payments (i) only in limited amounts specified in the indentures and (ii) only if the operating partnership’s net leverage ratio (defined generally to mean the ratio of consolidated total net debt to trailing four quarters consolidated EBITDA, both as adjusted for certain, specified items) is not greater than 5.0 to 1.0, on a pro forma basis giving effect to the restricted payment and, if applicable, certain other specified events. Further, if the operating partnership’s consolidated fixed charge coverage ratio (defined generally to mean the ratio of trailing four quarters consolidated EBITDA to consolidated fixed charges, both as adjusted for certain, specified items) is equal to or less than 1.75 to 1.00 (on a pro forma basis giving effect to the restricted payment and, if applicable, certain other specified events), the amount of distributions and other restricted payments the operating partnership is permitted to make under the indentures is further limited. As of April 30, 2024, the operating partnership is in compliance with all of its debt covenants.

The scheduled annual principal payments on long-term debt are as follows:

	Scheduled
Payment due by fiscal year	principal payments
2024	$	425
2025		2,510
2026		652,129
2027		1,210
2028		825,810
Thereafter		405
Total	$	1,482,489

Letters of credit outstanding at April 30, 2024 and July 31, 2023 totaled $70.2 and $74.0 million, respectively, and were used to secure insurance arrangements, product purchases and commodity hedges. As of April 30, 2024, Ferrellgas had available borrowing capacity under its Credit Facility of $279.8 million. Propane assets subject to lien under the Credit Facility were $60.6 million as of April 30, 2024.

F.    Preferred units

On March 30, 2021, pursuant to an Investment Agreement, the operating partnership issued an aggregate of 700,000 Preferred Units (the “Preferred Units”), having an aggregate initial liquidation preference of $700.0 million.

Redemption of the Preferred Units in the near term is not probable because of the high redemption price in the first three to four years. As described in greater detail under “Issuer Redemption Right” below, the Redemption Price for the Preferred Units is based upon the greater of the amount that would result in a 1.47x MOIC (defined below) and the amount that would result in a 12.25% internal rate of return. If the Preferred Units were redeemed during the first three to four years after issuance, the 1.47x MOIC would require a large premium payment and that large premium payment would result in an internal rate of return far in excess of the minimum 12.25%. Consequently, it is unlikely that Ferrellgas would be able to achieve any savings in its cost of capital by redeeming the Preferred Units during the first three to four years after issuance.

“MOIC” means, with respect to a Preferred Unit, a multiple on invested capital equal to the quotient determined by dividing (A) the sum of (x) the aggregate amount of all distributions made in cash with respect to such Preferred Unit prior to the applicable date of determination, with certain exclusions, plus (y) each Redemption Price paid in cash in respect of such Preferred Unit, on or prior to the applicable date of determination, by (B) the Purchase Price (defined below) of such Preferred Unit.

The preferences, rights, privileges and other terms of the Preferred Units are set forth in the First Amendment to the Amended OpCo LPA (the “OpCo LPA Amendment”) entered into by the general partner on March 30, 2021 (along with the Fifth Amended and Restated Agreement of Limited Partnership of Ferrellgas, L.P. (the “Amended OpCo LPA”)) and are described below.

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Issuer Redemption Right

The operating partnership has the right to redeem all or a portion of the Preferred Units for cash, pro rata and at any time and from time to time, including in connection with a Change of Control (as defined in the OpCo LPA Amendment), at an amount per Preferred Unit (the “Redemption Price”) equal to, without duplication, the sum of (a) the greater of (i) the amount necessary to result in a MOIC of 1.47x in respect of the purchase price, before discount, of such Preferred Unit, which is $1,000 per Preferred Unit (the “Purchase Price”), and (ii) the amount necessary to result in the applicable internal rate of return equal to 12.25%, which is increased by 150 basis points if the operating partnership has elected to pay more than four Quarterly Distributions (as defined below) in PIK Units (as defined below) and (b) the accumulated but unpaid Quarterly Distributions to the date of redemption, if any. A partial redemption of the Preferred Units is permitted only in the event the aggregate amount to be paid in respect of all Preferred Units included in such partial redemption is at least $25.0 million.

Investor Redemption Right

In the event that (i) any Class B Units are outstanding, or (ii) (x) no Class B Units are outstanding and (y) no more than 233,300 Preferred Units are outstanding, at any time on and after March 30, 2031, the Required Holders may elect, by delivery of written notice, to have the operating partnership fully redeem each remaining outstanding Preferred Unit for an amount in cash equal to the Redemption Price. “Required Holders” refers to both (i) holders owning at least 33.3% of the total Preferred Units outstanding at any time and (ii) certain initial affiliated purchasers, for so long as such initial affiliated purchasers collectively own at least 25% of the Preferred Units outstanding at such time.

In the event that (i) no Class B Units are outstanding and (ii) more than 233,300 Preferred Units are outstanding, the Required Holders will have the right to trigger a sale of the operating partnership after March 30, 2031. If the operating partnership fails to consummate a sale that would pay the Redemption Price in full within 180 days of written notice requiring such sale, the Required Holders will have the right to appoint a majority of the members of the Board of Directors of the general partner and initiate a sale of the operating partnership.

Change of Control

Upon a Change of Control (as defined in the OpCo LPA Amendment), the Required Holders will have the option to require the redemption of all or a portion of the Preferred Units in cash in an amount equal to the Redemption Price; provided, that such Redemption Price shall not be payable unless the operating partnership shall have first made any required change of control offer pursuant to the indentures governing the 2026 Notes and the 2029 Notes and purchased all such 2026 Notes and 2029 Notes tendered pursuant to such offer (unless otherwise waived by such noteholders); provided, further that the Redemption Price shall be paid immediately following the purchase of such tendered Notes (if any).

Fair Value of Embedded Derivatives

Ferrellgas identified the investor redemption right and the change in control option as embedded derivatives that require bifurcation as they are not clearly and closely related to the debt host contract and has concluded that the fair values at issuance and at April 30, 2024 and July 31, 2023, are immaterial to the financial statements.

Distributions

Pursuant to the OpCo LPA Amendment, the operating partnership is required to pay to the holders of each Preferred Unit a cumulative, quarterly distribution (the “Quarterly Distribution”) at the Distribution Rate (as defined below) on the Purchase Price.

“Distribution Rate” means, for the first five years after March 30, 2021, a rate per annum equal to 8.956%, with certain increases in the Distribution Rate on each of the 5^th, 6^th and 7^th anniversaries of March 30, 2021, subject to a maximum rate of 11.125% and certain other adjustments and exceptions.

The Quarterly Distribution may be paid in cash or, at the election of the operating partnership, “in kind” through the issuance of additional Preferred Units (“PIK Units”) at the quarterly Distribution Rate plus an applicable premium that escalates each year from 75 bps to 300 bps so long as the Preferred Units remain outstanding. In the event the operating partnership fails to make any Quarterly Distribution in cash, such Quarterly Distribution will automatically be paid in PIK Units.

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The Distribution Rate on the Preferred Units will increase upon violation of certain protective provisions for the benefit of Preferred Unit holders notwithstanding the cap mentioned above.

On November 15, 2023, February 15, 2024 and May 15, 2024, $15.4 million of the Quarterly Distribution was paid in cash to holders of Preferred Units. As of April 30, 2024, the Quarterly Distribution accrued was $16.9 million. The remaining Quarterly Distribution accrual of $1.5 million represents Additional Amounts payable to certain holders of Preferred Units pursuant to the side letters outlined in the OpCo LPA Amendment. Additionally, during the nine months ended April 30, 2024, we paid $2.0 million for Additional Amounts payable pursuant to the side letters.

On November 15, 2022, $15.3 million of the Quarterly Distribution was paid in cash to holders of Preferred Units. On February 15, 2023 and May 15, 2023, $15.4 million of the Quarterly Distribution was paid in cash to holders of Preferred Units. As of April 30, 2023, the Quarterly Distribution accrued was $16.9 million. The remaining Quarterly Distribution accrual of $1.5 million represented Additional Amounts payable to certain holders of Preferred Units pursuant to the side letters. Additionally, during the nine months ended April 30, 2023 we paid $1.7 million for Additional Amounts payable pursuant to the side letters.

Tax Distributions

For any quarter in which the operating partnership makes a Quarterly Distribution in PIK Units in lieu of cash, it will be required to make a subsequent cash tax distribution for such quarter in an amount equal to the (i) the lesser of (x) 25% and (y) the highest combined federal, state and local tax rate applicable for corporations organized in New York, multiplied by (ii) the excess (if any) of (A) one-fourth (1/4th) of the estimated taxable income to be allocated to the holders of Preferred Units for the year in which the Quarterly Tax Payment Date (which refers to certain specified dates that next follow a Quarterly Distribution date on which PIK Units were issued) occurs, over (B) any cash paid on the Quarterly Distribution date immediately preceding the Quarterly Tax Payment Date on which a quarterly tax amount would otherwise be paid (such amount, the “Tax Distribution”). Tax Distributions are treated as advances against, and reduce, future cash distributions for any reason, including payments in redemption of Preferred Units or PIK Units, or payments to the holders in their capacity as such pursuant to any side letter or other agreement.

Additional Amounts for Certain Purchasers

The operating partnership is required to pay certain additional amounts of cash (the “Additional Amounts”) as necessary to certain holders of Preferred Units that hold their interests through a “blocker,” which is a U.S. entity that is owned and organized by certain original purchasers of Preferred Units who are non-U.S. persons or tax exempt for U.S. tax purposes and is treated as a corporation for U.S. tax purposes. Only certain original purchasers of Preferred Units who hold their Preferred Units through such blockers are, and none of their transferees is, entitled to Additional Amounts. Additional Amounts are capped at the lesser of: (a) the product of 20% multiplied by taxable income allocated to a “blocker” (as defined) divided by 0.8, and (b) the actual taxes payable by the “blocker” as a result of holding Senior Preferred Units.

Board Rights

For so long as at least 140,000 Preferred Units remain outstanding, holders of the Preferred Units have the right to designate one director to the Board of the general partner, subject to approval by the general partner.

Protective Provisions

The OpCo LPA Amendment and the Sixth Amended and Restated Agreement of Limited Partnership of Ferrellgas Partners, L.P. (the “Amended Ferrellgas Partners LPA”) include, among other things, certain covenants for the benefit of holders of Preferred Units applicable to the operating partnership and, in certain instances, Ferrellgas Partners, for so long as at least $35,000,000 of Preferred Units and PIK Units remain outstanding. These covenants include, among other things, limitations on (i) effecting a Change of Control, (ii) amending organizational documents, (iii) issuing certain equity securities, (iv) issuing Preferred Units, (v) filing for bankruptcy, (vi) non-ordinary course investments, and (vii) incurring certain levels of indebtedness.

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Ranking and Liquidation Preference

The Preferred Units rank senior to any other class or series of equity interests of the operating partnership (including the partnership interests held by Ferrellgas Partners and the general partner). Upon a liquidation, dissolution or winding up of the operating partnership, each holder of Preferred Units will be entitled to receive, prior and in preference to any distribution of any assets of the operating partnership to the holders of any other class or series of equity interests in the operating partnership (including Ferrellgas Partners and the general partner), an amount per Preferred Unit equal to the Redemption Price.

Restrictions on Cash Distributions to Ferrellgas Partners and the General Partner

The operating partnership is permitted to make distributions of Available Cash (as defined in the Amended OpCo LPA) to Ferrellgas Partners only if (i) the operating partnership has made all required Quarterly Distributions (in cash or PIK Units), Tax Distributions and payments of Additional Amounts, (ii) the operating partnership has redeemed all PIK Units issued, (iii) the operating partnership’s consolidated net leverage (defined generally to mean the ratio of the operating partnership’s consolidated total net debt (including the total redemption price of all outstanding Preferred Units and PIK Units but excluding certain letters of credit and capital lease obligations) as of each Quarterly Distribution Date to trailing four quarters consolidated EBITDA, both as adjusted for certain, specified items) is below 7.00x, net of cash, immediately before and after giving effect to such distribution, (iv) the operating partnership has at least $100 million of liquidity, consisting of unrestricted cash on hand and available capacity under the Credit Agreement or any replacement thereof, and (v) the operating partnership is in compliance with the other protective provisions in the OpCo LPA Amendment.

G.    Equity (Deficit)

Ferrellgas Partners

Class B Units

On March 30, 2021, Ferrellgas Partners issued 1.3 million Class B Units to the holders of the $357.0 million aggregate principal amount of its 8.625% senior unsecured notes due June 2020 (the “Ferrellgas Partners Notes”) in exchange for such holders’ contribution of the Ferrellgas Partners Notes to Ferrellgas Partners as a capital contribution and in satisfaction of such holders’ claims in respect of the Ferrellgas Partners Notes. The terms of the Class B Units are set forth in the Amended Ferrellgas Partners LPA entered into by the general partner on March 30, 2021.

Ferrellgas Partners may, subject to certain conditions, issue additional Class A Units to such parties as determined at the discretion of Ferrellgas Partners, upon consent by the holders of the requisite percentage of Class B Units as specified in the Amended Ferrellgas Partners LPA (the “Requisite Class B Units”), which refers to: (i) if the initial majority holder of Class B Units holds at least 50% of Class B Units, holders of at least 50% of the outstanding Class B Units, or (ii) if the initial majority holder of Class B Units holds less than 50% of Class B Units, holders of at least one-third of the outstanding Class B Units.

Pursuant to the Amended Ferrellgas Partners LPA, while any Class B Units remain outstanding, any distributions by Ferrellgas Partners to its partners must be made such that the ratio of (i) the amount of distributions made to holders of Class B Units to (ii) the amount of distributions made to holders of Class A Units and the general partner is not less than 6:1.

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Once holders of Class B Units receive distributions in the aggregate amount of $357.0 million (which was the outstanding principal amount of the Ferrellgas Partners Notes), the Class B Units will be (i) convertible into Class A Units at the option of Ferrellgas Partners, if that distribution threshold is reached prior to March 30, 2026, the fifth anniversary post-emergence, or (ii) converted automatically into Class A Units, if the distribution threshold is reached on or after March 30, 2026, in each case at the applicable conversion rate set forth in the following table:

Period	Conversion Factor
March 31, 2024 through March 30, 2025	4.00x
March 31, 2025 through March 30, 2026	5.00x
March 31, 2026 through March 30, 2027	6.00x
March 31, 2027 through March 30, 2028	7.00x
March 31, 2028 through March 30, 2029	10.00x
March 31, 2029 through March 30, 2030	12.00x
March 31, 2030 through March 30, 2031	25.00x

Ferrellgas Partners may redeem the Class B Units through March 30, 2026, in full, at a price equal to an amount that will result in an internal rate of return with respect to the Class B Units equal to the sum of (i) 300 basis points and (ii) the internal rate of return for the Preferred Units as specified in the Amended Ferrellgas Partners LPA, subject to the minimum redemption price of $302.08 per unit. The total internal rate of return required to redeem the Class B Units is 15.85%, but that amount increases under certain circumstances, including if the operating partnership paid distributions on the Preferred Units in-kind rather than in cash for a certain number of quarters. There have not been any in-kind distributions through April 30, 2024.

During the period through March 30, 2026, after Ferrellgas Partners has distributed $356 million in distributions to holders of the Class B Units, Ferrellgas Partners will have the option to hold cash for six months at either Ferrellgas Partners or Ferrellgas Partners Finance Corp. for the sole purpose of redeeming the Class B Units. However, if the funds held are not used to redeem the Class B Units, the funds must either be distributed to holders of the Class B Units and, if applicable, holders of the Class A Units and the general partner or returned to the operating partnership.

Ferrellgas Partners will only be able to redeem the Class B Units to the extent it receives sufficient distributions from the operating partnership, and the operating partnership is limited in its ability to make distributions by the indentures that govern the 2026 Notes and the 2029 Notes, the Credit Agreement and the OpCo LPA Amendment governing the Preferred Units.

The holders of the Class B Units will have the right to acquire the general partner interests in Ferrellgas Partners and the operating partnership, without the approval of the general partner, Ferrellgas Partners, the holders of the Class A Units or the operating partnership, if the Class B Units are still outstanding and have not been converted to Class A Units by the earlier of (i) a material breach of the covenants in favor of the Class B Units under the Amended Ferrellgas Partners LPA or the Amended OpCo LPA that is not cured within the time period specified therein and (ii) March 30, 2031.

Board Rights

The holders of Class B Units will be permitted to designate one independent director to the Board of the general partner in accordance with a voting agreement among the general partner, Ferrell Companies, Inc. (“FCI”), the sole stockholder of the general partner, and the holders of the Class B Units and the general partner's bylaws.

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Class A Units

As of April 30, 2024 and July 31, 2023, Class A Units were beneficially owned by the following:

	April 30, 2024	July 31, 2023
Public Class A Unitholders (1)	3,480,621	3,480,621
James E. Ferrell (2)	238,172	238,172
Ferrell Companies (3)	1,126,468	1,126,468
FCI Trading Corp. (4)	9,784	9,784
Ferrell Propane, Inc. (5)	2,560	2,560
Total	4,857,605	4,857,605

(1) These Class A Units are traded on the OTC Pink Market under the symbol “FGPR.”

(2) James E. Ferrell was the Chief Executive Officer and President of our general partner and Chairman of the Board of Directors of our general partner through July 31, 2023. Effective August 1, 2023, he became the Executive Chairman of our general partner and the Board of Directors of our general partner. He is a related party. JEF Capital Management owns 237,942 of these Class A Units and is owned by the James E. Ferrell Revocable Trust Two and other family trusts, all of which James E. Ferrell and/or his family members are the trustees and beneficiaries. James E. Ferrell holds all voting common stock of JEF Capital Management. The remaining 230 Class A Units are held by Ferrell Resources Holdings, Inc., which is wholly-owned by the James E. Ferrell Revocable Trust One, for which James E. Ferrell is the trustee and sole beneficiary.

(3) Ferrell Companies is the owner of the general partner and an approximate 23% direct owner of Ferrellgas Partners’ Class A Units and thus a related party. Ferrell Companies also beneficially owns 9,784 and 2,560 Class A Units of Ferrellgas Partners held by FCI Trading Corp. (“FCI Trading”) and Ferrell Propane, Inc. (“Ferrell Propane"), respectively, bringing Ferrell Companies’ total beneficial ownership of Class A Units to 23.4%.

(4) FCI Trading is an affiliate of the general partner and thus a related party.

(5) Ferrell Propane is controlled by the general partner and thus a related party.

Together these Class A Units represent (i) a 99% limited partner economic interest in Ferrellgas Partners, excluding the economic interest attributable to the Class B Units, and (ii) an effective 98% economic interest in the operating partnership, excluding the economic interests attributable to the Class B Units and the Preferred Units. In liquidation, allocations and distributions will be made in accordance with each Class A Unitholder’s positive capital account.

The Class A Units of Ferrellgas Partners represent limited partner interests in Ferrellgas Partners, which give the holders thereof the right to participate in distributions made by Ferrellgas Partners, subject to the rights of holders of Class B Units, and to exercise the other rights or privileges available to such holders under the Amended Ferrellgas Partners LPA. Under the terms of the Amended Ferrellgas Partners LPA, holders of Class A Units have limited voting rights on matters affecting the business of Ferrellgas Partners. Generally, persons or groups owning 20% or more of Ferrellgas Partners’ outstanding Class A Units cannot vote any of their Class A Units in excess of the 20% threshold. However, this limitation does not apply under certain circumstances and does not apply to Class A Units owned by Ferrell Companies, our general partner and its affiliates, and this limitation expires on the later of (a) March 30, 2026 and (b) the conversion of the Class B Units to Class A Units.

The Amended Ferrellgas Partners LPA allows the general partner to issue an unlimited number of additional general and limited partner interests of Ferrellgas Partners for such consideration and on such terms and conditions as shall be established by the general partner without the approval of any Class A Unitholders.

Partnership distributions

Ferrellgas Partners did not declare or pay any distributions to its Class A Unitholders or the general partner during the nine months ended April 30, 2024 and 2023, except for a $1.0 million distribution to the general partner, made in conjunction with the Class B distribution noted below, during the three and nine months ended April 30, 2024.

On April 9, 2024, Ferrellgas Partners made a cash distribution in the aggregate amount of approximately $99.9 million to its Class B Unitholders. Ferrellgas Partners made aggregate cash distributions of approximately $49.9 million during the three and nine months ended April 30, 2023. We have made aggregate cash distributions of approximately $250.0 million to our Class B Unitholders since inception of our Class B Units. See Note M “Net (loss) earnings per unitholders’ interest” for additional information.

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Accumulated other comprehensive income (“AOCI”)

See Note J “Derivative instruments and hedging activities” for details regarding changes in fair value on risk management financial derivatives recorded within AOCI for the three and nine months ended April 30, 2024 and 2023.

Ferrellgas Partners

General partner’s commitment to maintain its capital account

Ferrellgas’ partnership agreements allow the general partner to have an option to maintain its effective 2% general partner interest (excluding the interest attributable to the Class B Units and the Preferred Units) concurrent with the issuance of other additional equity.

During the nine months ended April 30, 2024 and 2023, the general partner made non-cash contributions of $50.0 thousand and $44.0 thousand, respectively, to Ferrellgas to maintain its effective 2% general partner interest.

The operating partnership

Partnership distributions

The operating partnership has recognized the following distributions:

	For the three months ended April 30,				For the nine months ended April 30,
	2024		2023		2024		2023
Ferrellgas Partners	$	100,000	$	50,000	$	100,000	$	50,000
General partner		1,010		—		1,010		—

See additional discussions about transactions with related parties in Note K “Transactions with related parties.”

General partner’s commitment to maintain its capital account

Ferrellgas, L.P.’s partnership agreement allows the general partner to have an option to maintain its 1.0101% general partner interest (excluding the interest attributable to the Preferred Units) concurrent with the issuance of other additional equity.

During the nine months ended April 30, 2024 and 2023, the general partner made non-cash contributions of $25.0 thousand and $22.0 thousand, respectively, to the operating partnership to maintain its 1.0101% general partner interest.

H.    Revenue from contracts with customers

Disaggregation of revenue

Ferrellgas disaggregates revenues based upon the type of customer and on the type of revenue. The following table presents retail propane revenues, wholesale propane revenues and other revenues. Retail revenues result from sales to end use customers, wholesale revenues result from sales to or through resellers and all other revenues include sales of appliances and other materials, other fees charged to customers and equipment rental charges.

	For the three months ended April 30,				For the nine months ended April 30,
	2024		2023		2024		2023
Retail - Sales to End Users	$	367,300	$	431,538	$	1,033,000	$	1,195,961
Wholesale - Sales to Resellers		119,739		123,532		368,088		388,154
Other Gas Sales		3,018		3,977		12,112		12,662
Other		25,717		28,300		83,464		87,802
Propane and related equipment revenues	$	515,774	$	587,347	$	1,496,664	$	1,684,579

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Contract assets and liabilities

Ferrellgas’ performance obligations are generally limited to the delivery of propane for its retail and wholesale contracts. Ferrellgas’ performance obligations with respect to sales of appliances and other materials and other revenues are limited to the delivery of the agreed upon good or service. Ferrellgas does not have material performance obligations that are delivered over time, thus all of its revenue is recognized at the time the goods, including propane, are delivered or installed. Ferrellgas offers “even pay” and other billing programs that can create customer deposits or advances, depending on whether Ferrellgas has delivered more propane than the customer has paid for or whether the customer has paid for more propane than what has been delivered. Revenue is recognized from these customer deposits or advances to customers at the time product is delivered. The advance or deposit is considered to be a contract asset or liability. Additionally, from time to time, we have customers that pay in advance for goods or services, and such amounts result in contract liabilities.

Ferrellgas incurs incremental commissions directly related to the acquisition or renewal of customer contracts. The commissions are calculated and paid based upon the number of gallons sold to the acquired or renewed customer. The total amount of commissions that we incur is not material, and the commissions are expensed commensurate with the deliveries to which they relate; therefore, we do not capitalize these costs.

The following table presents the opening and closing balances of our contract assets and contract liabilities:

	April 30, 2024		July 31, 2023
Contract assets	$	13,315	$	10,263
Contract liabilities
Deferred revenue (1)	$	42,305	$	51,516

(1) Of the beginning balance of deferred revenue, $36.9 million was recognized as revenue during the nine months ended April 30, 2024.

Remaining performance obligations

Ferrellgas’ remaining performance obligations are generally limited to situations where customers have remitted payment but have not yet received deliveries of propane. This most commonly occurs in even pay billing programs and Ferrellgas expects that these balances will be recognized within a year or less as the customer takes delivery of propane.

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I.    Fair value measurements

Derivative financial instruments

The following table presents Ferrellgas’ financial assets and financial liabilities that are measured at fair value on a recurring basis for each of the fair value hierarchy levels, including both current and noncurrent portions, as of April 30, 2024 and July 31, 2023:

	Asset (Liability)
	Quoted Prices in Active
	Markets for Identical		Significant Other
	Assets and Liabilities		Observable Inputs		Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
April 30, 2024:
Assets:
Derivative financial instruments:
Commodity derivatives	$	—	$	5,631	$	—	$	5,631
Liabilities:
Derivative financial instruments:
Commodity derivatives	$	—	$	(4,589)	$	—	$	(4,589)
July 31, 2023:
Assets:
Derivative financial instruments:
Commodity derivatives	$	—	$	12,165	$	—	$	12,165
Liabilities:
Derivative financial instruments:
Commodity derivatives	$	—	$	(11,082)	$	—	$	(11,082)

Methodology

The fair values of Ferrellgas’ non-exchange traded commodity derivative contracts are based upon indicative price quotations available through brokers, industry price publications or recent market transactions and related market indicators. There were no transfers between Levels 1, 2 or 3 during the nine months ended April 30, 2024 and the fiscal year ended July 31, 2023.

Other financial instruments

The carrying amounts of other financial instruments included in current assets and current liabilities (except for current maturities of long-term debt) approximate their fair values because of their short-term nature. At April 30, 2024 and July 31, 2023, the estimated fair value of Ferrellgas’ long-term debt instruments was $1,417.1 million and $1,318.9 million, respectively. Ferrellgas estimates the fair value of long-term debt based on quoted market prices. The fair value of Ferrellgas’ consolidated debt obligations is a Level 2 valuation based on the observable inputs used for similar liabilities.

Ferrellgas has other financial instruments such as trade accounts receivable which could expose it to concentrations of credit risk. The credit risk from trade accounts receivable is limited because of a large customer base which extends across many different U.S. markets.

J.    Derivative instruments and hedging activities

Ferrellgas is exposed to certain market risks related to its ongoing business operations. These risks include exposure to changing commodity prices as well as fluctuations in interest rates. Ferrellgas utilizes derivative instruments to manage its exposure to fluctuations in commodity prices. Of these, the propane commodity derivative instruments are designated as cash flow hedges.

Derivative instruments and hedging activity

During the nine months ended April 30, 2024 and 2023, Ferrellgas did not recognize any gain or loss in earnings related to hedge ineffectiveness and did not exclude any component of financial derivative contract gains or losses from the assessment of hedge effectiveness related to commodity cash flow hedges.

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The following tables provide a summary of the fair value of derivatives within Ferrellgas’ condensed consolidated balance sheets as April 30, 2024 and July 31, 2023:

	Final	April 30, 2024
	Maturity	Asset Derivatives			Liability Derivatives
Derivative Instrument	Date	Location	Fair value		Location	Fair value
Derivatives designated as hedging instruments	December 2025
Commodity derivatives-propane		Price risk management asset	$	5,398	Other current liabilities	$	4,166
Commodity derivatives-propane		Other assets, net		233	Other liabilities		423
		Total	$	5,631	Total	$	4,589

	Final	July 31, 2023
	Maturity	Asset Derivatives			Liability Derivatives
Derivative Instrument	Date	Location	Fair value		Location	Fair value
Derivatives designated as hedging instruments	December 2024
Commodity derivatives-propane		Price risk management asset	$	11,966	Other current liabilities	$	9,554
Commodity derivatives-propane		Other assets, net		199	Other liabilities		1,528
		Total	$	12,165	Total	$	11,082

Ferrellgas’ exchange traded commodity derivative contracts require a cash margin deposit as collateral for contracts that are in a negative mark-to-market position. These cash margin deposits will be returned if mark-to-market conditions improve or will be applied against cash settlement when the contracts are settled. Liabilities represent cash margin deposits received by Ferrellgas for contracts that are in a positive mark-to-market position. The following tables provide a summary of cash margin balances as of April 30, 2024 and July 31, 2023:

	April 30, 2024
	Assets			Liabilities
Description	Location	Amount		Location	Amount
Margin Balances	Prepaid expense and other current assets	$	4,633	Other current liabilities	$	4,867
	Other assets, net		1,225	Other liabilities		502
	Total	$	5,858	Total	$	5,369

	July 31, 2023
	Assets			Liabilities
Description	Location	Amount		Location	Amount
Margin Balances	Prepaid expense and other current assets	$	11,939	Other current liabilities	$	6,972
	Other assets, net		1,965	Other liabilities		—
	Total	$	13,904	Total	$	6,972

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The following tables provide a summary of the effect on Ferrellgas’ condensed consolidated statements of comprehensive income for the three and nine months ended April 30, 2024 and 2023 due to derivatives designated as cash flow hedging instruments:

	For the three months ended April 30, 2024
				Amount of Gain
	Amount of Loss		Location of Gain	Reclassified from
	Recognized in		Reclassified from	AOCI into Income
Derivative Instrument	AOCI		AOCI into Income	Effective portion		Ineffective portion
Commodity derivatives	$	(1,180)	Cost of sales - propane and other gas liquids sales	$	5,179	$	—

	For the three months ended April 30, 2023
				Amount of Loss
	Amount of Loss		Location of Loss	Reclassified from
	Recognized in		Reclassified from	AOCI into Income
Derivative Instrument	AOCI		AOCI into Income	Effective portion		Ineffective portion
Commodity derivatives	$	(10,621)	Cost of sales - propane and other gas liquids sales	$	(13,450)	$	—

	For the nine months ended April 30, 2024
				Amount of Loss
	Amount of Loss		Location of Loss	Reclassified from
	Recognized in		Reclassified from	AOCI into Income
Derivative Instrument	AOCI		AOCI into Income	Effective portion		Ineffective portion
Commodity derivatives	$	(116)	Cost of sales - propane and other gas liquids sales	$	(75)	$	—

	For the nine months ended April 30, 2023
				Amount of Loss
	Amount of Loss		Location of Loss	Reclassified from
	Recognized in		Reclassified from	AOCI into Income
Derivative Instrument	AOCI		AOCI into Income	Effective portion		Ineffective portion
Commodity derivatives	$	(53,044)	Cost of sales - propane and other gas liquids sales	$	(7,378)	$	—

Accumulated other comprehensive income

Ferrellgas Partners

The changes in derivatives included in AOCI for the nine months ended April 30, 2024 and 2023 were as follows:

	For the nine months ended April 30,
Gains and losses on derivatives included in AOCI	2024		2023
Beginning balance attributable to Ferrellgas Partners, L.P.	$	1,059	$	37,907
Change in value of risk management commodity derivatives		(116)		(53,044)
Reclassification of losses on commodity hedges to cost of sales - propane and other gas liquids sales, net		75		7,378
Less: amount attributable to noncontrolling interests		—		(461)
Ending balance attributable to Ferrellgas Partners, L.P.	$	1,018	$	(7,298)

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The operating partnership

The changes in derivatives included in AOCI for the nine months ended April 30, 2024 and 2023 were as follows:

	For the nine months ended April 30,
Gains and losses on derivatives included in AOCI	2024		2023
Beginning balance	$	1,083	$	38,307
Change in value of risk management commodity derivatives		(116)		(53,044)
Reclassification of losses on commodity hedges to cost of sales - propane and other gas liquids sales, net		75		7,378
Ending balance	$	1,042	$	(7,359)

Ferrellgas expects to reclassify net gains of approximately $1.2 million to earnings during the next 12 months. These net gains are expected to be offset by decreased margins on propane sales commitments Ferrellgas has with its customers that qualify for the normal purchase normal sale exception.

During the nine months ended April 30, 2024 and 2023, Ferrellgas had no reclassifications to operations resulting from the discontinuance of any cash flow hedges arising from the probability of the original forecasted transactions not occurring within the originally specified period of time defined within the hedging relationship.

As of April 30, 2024, Ferrellgas had financial derivative contracts covering 1.8 million barrels of propane that were entered into as cash flow hedges of forward and forecasted purchases of propane.

Derivative financial instruments credit risk

Ferrellgas is exposed to credit loss in the event of nonperformance by counterparties to derivative financial and commodity instruments. Ferrellgas’ counterparties principally consist of major energy companies and major U.S. financial institutions. Ferrellgas maintains credit policies with regard to its counterparties that it believes reduces its overall credit risk. These policies include evaluating and monitoring its counterparties’ financial condition, including their credit ratings, and entering into agreements with counterparties that govern credit limits. Certain of these agreements call for the posting of collateral by the counterparty or by Ferrellgas in the forms of letters of credit, parent guarantees or cash. Ferrellgas has concentrations of credit risk associated with derivative financial instruments held by certain derivative financial instrument counterparties. If these counterparties that make up the concentration failed to perform according to the terms of their contracts at April 30, 2024, the maximum amount of loss due to credit risk that Ferrellgas would incur based upon the gross fair values of the derivative financial instruments is zero.

From time to time Ferrellgas enters into derivative contracts that have credit-risk-related contingent features which dictate credit limits based upon Ferrellgas’ debt rating. There were no open derivative contracts with credit-risk-related contingent features as of April 30, 2024.

K.    Transactions with related parties

Ferrellgas has no employees and is managed and controlled by its general partner. Pursuant to Ferrellgas’ partnership agreements, the general partner is entitled to reimbursement for all direct and indirect expenses incurred or payments it makes on behalf of Ferrellgas and all other necessary or appropriate expenses allocable to Ferrellgas or otherwise reasonably incurred by its general partner in connection with operating Ferrellgas’ business. These costs primarily include compensation and benefits paid to employees of the general partner who perform services on Ferrellgas’ behalf and are reported in the condensed consolidated statements of operations as follows:

	For the three months ended April 30,				For the nine months ended April 30,
	2024		2023		2024		2023
Operating expense	$	79,681	$	77,876	$	246,904	$	233,585
General and administrative expense	$	8,435	$	7,869	$	26,113	$	23,528

See additional discussions about transactions with the general partner and related parties in Note G “Equity (Deficit).”

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L.    Contingencies and commitments

Litigation

Ferrellgas’ operations are subject to all operating hazards and risks normally incidental to the handling, storing, transporting and otherwise providing for use by consumers of combustible liquids such as propane. As a result, at any given time, we can be threatened with or named as a defendant in various lawsuits arising in the ordinary course of business. Other than as discussed below, we are not a party to any legal proceedings other than various claims and lawsuits arising in the ordinary course of business. It is not possible to determine the ultimate disposition of these matters; however, management is of the opinion that there are no known claims or contingent claims that are reasonably expected to have a material adverse effect on our consolidated financial condition, results of operations and cash flows, except that management is continuing to evaluate the potential effects of the recent judgement in the EDPA Lawsuit discussed below.

Ferrellgas and Bridger Logistics, LLC (“Bridger”), were named, along with two former officers (“Rios and Gamboa”), in a lawsuit (the “EDPA Lawsuit”) filed by Eddystone Rail Company (“Eddystone”) on February 2, 2017 in the U.S. District Court for the Eastern District of Pennsylvania (the “Court”). On December 10, 2021, the Court dismissed Eddystone’s claims against Rios and Gamboa, pursuant to a settlement agreement with Eddystone. Eddystone indicated that it has prevailed in or settled an arbitration against Jamex Transfer Services (“JTS”), previously named Bridger Transfer Services, a former subsidiary of Bridger. The arbitration involved a claim against JTS for money due for deficiency payments under a contract for the use of an Eddystone facility used to offload crude from rail onto barges. Eddystone alleges that Ferrellgas transferred assets out of JTS prior to the sale of the membership interest in JTS to Jamex Transfer Holdings, and that those transfers should be avoided so that the assets can be used to satisfy the amount owed by JTS to Eddystone as a result of the arbitration. Eddystone also alleges that JTS was an “alter ego” of Bridger and Ferrellgas and that Bridger and Ferrellgas breached both an implicit contract as well as fiduciary duties allegedly owed to Eddystone as a creditor of JTS.

The Court decided summary judgment motions in March 2022 and the three segments of the bench trial were completed in September 2022, December 2022 and February 2023, respectively. As set by the Court, briefings were held through May 2023 and closing arguments were held in August 2023.

On June 7, 2024, the Court entered an Order and Judgment (the “Judgment”) in the EDPA Lawsuit. The Judgment was in favor of all defendants on Eddystone’s alter ego and fiduciary duty claims. Further, the Judgment was in favor of Ferrellgas, L.P. and certain other defendants on Eddystone’s intentional and constructive fraudulent transfer claims. However, on Eddystone’s intentional and constructive fraudulent transfer claims, Judgment was entered against Bridger Energy, LLC in the amount of $0.9 million, Bridger Transportation, LLC in the amount of $1.4 million, and Ferrellgas Partners, L.P. and Bridger in the amount of $169.3 million. Ferrellgas and the other defendants are evaluating the Judgment and considering their options, including their current intent to appeal. Based on advice it has received from counsel regarding its strong grounds for appeal and the technical merits of the appeal, including what they believe to be misapplication of law, at this time management does not believe a loss is probable, as that term is defined in ASC 450-20, nor does it believe a loss is reasonably estimable. We currently estimate the range of possible loss, if any, to be from $0 to the amount of the Judgment, plus post-Judgment interest. As this evaluation is complex and involves many factors, currently we are not able to determine an amount within the foregoing range that is a better estimate than any other amount. Accrual of a loss contingency is not recorded until a loss is determined to be both probable and reasonably estimable.

Long-term debt related commitments

Ferrellgas has long and short-term payment obligations under agreements such as the indentures governing its senior notes. See Note E “Debt” for a description of these debt obligations and a schedule of future maturities.

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M.    Net (loss) earnings per unitholders’ interest

Below is a calculation of the basic and diluted net (loss) earnings per Class A Unitholders’ interest in the condensed consolidated statements of operations for the periods indicated:

	For the three months ended April 30,				For the nine months ended April 30,
	2024		2023		2024		2023
	(in thousands, except per unit amounts)
Net earnings attributable to Ferrellgas Partners, L.P.	$	52,766	$	72,427	$	130,999	$	165,982
Less: Distributions to preferred unitholders		16,045		15,590		48,546		48,063
Less: Distributions to Class B unitholders		99,996		49,998		99,996		49,998
Less: Allocation of undistributed net earnings to Class B units		—		—		—		49,653
Less: General partner’s interest in net earnings		527		724		1,310		1,660
Undistributed net (loss) earnings attributable to Class A unitholders		(63,802)		6,115		(18,853)		16,608
Weighted average Class A Units outstanding (in thousands)		4,857.6		4,857.6		4,857.6		4,857.6
Basic and diluted net (loss) earnings per Class A Unit	$	(13.13)	$	1.26	$	(3.88)	$	3.42

Class B Units considerations

The Class B Units meet the definition of a participating security and the two-class method is required. For any periods in which earnings are recognized, the earnings will first be allocated 100% to the Class B Units until the allocation equals the cumulative amount of all distributions paid to the Class B Units. Any remaining undistributed net earnings will be allocated between the Class B Units and the Class A Units on a six-to-one basis as if all undistributed earnings had been distributed to each class of units in accordance with their distribution rights. For any periods in which losses are recognized, no effect is given to the Class B Units as they do not contractually participate in the losses of Ferrellgas. In addition, Ferrellgas has the option to redeem all, but not less than all, of the Class B Units outstanding at any time on or prior to March 30, 2026 for cash. This call option does not impact the dilutive effect of net loss per Class A Unit due to the cash-only redemption provision, which is assumed, and therefore there would be no dilutive effect.

N.    Subsequent events

Ferrellgas has evaluated events and transactions occurring after the balance sheet date through the date Ferrellgas’ condensed consolidated financial statements were issued and concluded that there were no events or transactions occurring during this period that required recognition or disclosure in its condensed consolidated financial statements, except for the subsequent event described in Note L “Contingencies and commitments.”

35

FERRELLGAS PARTNERS FINANCE CORP.

(a wholly-owned subsidiary of Ferrellgas Partners, L.P.)

CONDENSED BALANCE SHEETS

(unaudited)

	April 30, 2024		July 31, 2023
ASSETS
Cash	$	—	$	—
Total assets	$	—	$	—
LIABILITIES AND EQUITY (DEFICIT)
Current liabilities:
Other current liabilities	$	—	$	—
Total current liabilities	$	—	$	—
Contingencies and commitments (Note B)
STOCKHOLDER’S EQUITY (DEFICIT)
Common stock, $1.00 par value; 2,000 shares authorized; 1,000 shares issued and outstanding	$	1,000	$	1,000
Additional paid in capital		42,485		42,207
Accumulated deficit		(43,485)		(43,207)
Total stockholder’s equity (deficit)		—		—
Total liabilities and equity (deficit)	$	—	$	—

See notes to condensed financial statements.

36

FERRELLGAS PARTNERS FINANCE CORP.

(a wholly-owned subsidiary of Ferrellgas Partners, L.P.)

CONDENSED STATEMENTS OF OPERATIONS

(unaudited)

	For the three months ended April 30,				For the nine months ended April 30,
	2024		2023		2024		2023
General and administrative expense	$	225	$	225	$	278	$	657
Net loss	$	(225)	$	(225)	$	(278)	$	(657)

See notes to condensed financial statements.

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FERRELLGAS PARTNERS FINANCE CORP.

(a wholly-owned subsidiary of Ferrellgas Partners, L.P.)

CONDENSED STATEMENTS OF CASH FLOWS

(unaudited)

	For the nine months ended April 30,
	2024		2023
Cash flows from operating activities:
Net loss	$	(278)	$	(657)
Changes in operating assets and liabilities:
Other current liabilities		—		(1,706)
Cash used in operating activities		(278)		(2,363)
Cash flows from financing activities:
Capital contribution		278		2,363
Cash provided by financing activities		278		2,363
Net change in cash		—		—
Cash - beginning of period		—		—
Cash - end of period	$	—	$	—

See notes to condensed financial statements.

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FERRELLGAS PARTNERS FINANCE CORP.

(a wholly-owned subsidiary of Ferrellgas Partners, L.P.)

(unaudited)

NOTES TO CONDENSED FINANCIAL STATEMENTS

A.    Formation

Ferrellgas Partners Finance Corp. (“Partners Finance Corp.”), a Delaware corporation, was formed on March 28, 1996 and is a wholly-owned subsidiary of Ferrellgas Partners, L.P. (“Ferrellgas Partners”).

Ferrellgas Partners contributed $1,000 to Partners Finance Corp. on April 8, 1996 in exchange for 1,000 shares of common stock.

Partners Finance Corp. has nominal assets, does not conduct any operations and has no employees.

B.    Contingencies and commitments

Partners Finance Corp. serves as co-issuer and co-obligor for debt securities of Ferrellgas Partners. As of April 30, 2024, Ferrellgas Partners had no debt securities outstanding, and Partners Finance Corp. therefore was not liable as co-issuer for any such debt securities.

C. Subsequent events

Partners Finance Corp. has evaluated events and transactions occurring after the balance sheet date through the date Partners Finance Corp.’s consolidated financial statements were issued and concluded that there were no events or transactions occurring during this period that required recognition or disclosure in its condensed financial statements.

39

FERRELLGAS FINANCE CORP.

(a wholly-owned subsidiary of Ferrellgas, L.P.)

CONDENSED BALANCE SHEETS

(unaudited)

	April 30, 2024		July 31, 2023
ASSETS
Cash	$	—	$	—
Total assets	$	—	$	—
LIABILITIES AND EQUITY
Current liabilities:
Other current liabilities	$	—	$	—
Total current liabilities	$	—	$	—
Contingencies and commitments (Note B)
Equity:
Common stock, $1.00 par value; 2,000 shares authorized; 1,000 shares issued and outstanding	$	1,000	$	1,000
Additional paid in capital		105,241		104,564
Accumulated deficit		(106,241)		(105,564)
Total stockholder’s equity	$	—	$	—
Total liabilities and equity	$	—	$	—

See notes to condensed financial statements.

40

FERRELLGAS FINANCE CORP.

(a wholly-owned subsidiary of Ferrellgas, L.P.)

CONDENSED STATEMENTS OF OPERATIONS

(unaudited)

	For the three months ended April 30,				For the nine months ended April 30,
	2024		2023		2024		2023
General and administrative expense	$	624	$	225	$	677	$	278
Net loss	$	(624)	$	(225)	$	(677)	$	(278)

See notes to condensed financial statements.

41

FERRELLGAS FINANCE CORP.

(a wholly-owned subsidiary of Ferrellgas, L.P.)

CONDENSED STATEMENTS OF CASH FLOWS

(unaudited)

	For the nine months ended April 30,
	2024		2023
Cash flows from operating activities:
Net loss	$	(677)	$	(278)
Cash used in operating activities		(677)		(278)
Cash flows from financing activities:
Capital contribution		677		278
Cash provided by financing activities		677		278
Net change in cash		—		—
Cash - beginning of period		—		—
Cash - end of period	$	—	$	—

See notes to condensed financial statements.

42

FERRELLGAS FINANCE CORP.

(a wholly-owned subsidiary of Ferrellgas, L.P.)

(unaudited)

NOTES TO CONDENSED FINANCIAL STATEMENTS

A.    Formation

Ferrellgas Finance Corp. (“Finance Corp.”), a Delaware corporation, was formed on January 16, 2003 and is a wholly-owned subsidiary of Ferrellgas, L.P. (the “operating partnership”).

The operating partnership contributed $1,000 to Finance Corp. on January 24, 2003 in exchange for 1,000 shares of common stock.

Finance Corp. has nominal assets, does not conduct any operations and has no employees.

B.    Contingencies and commitments

Finance Corp. serves as co-issuer and co-obligor for debt securities of the operating partnership. As of April 30, 2024 and July 31, 2023, Finance Corp. was liable as co-issuer and co-obligor for the operating partnership’s (i) $650 million aggregate principal amount of unsecured senior notes due 2026 and (ii) $825 million aggregate principal amount of unsecured senior notes due 2029, each of which were issued on March 30, 2021.

C. Subsequent events

Finance Corp. has evaluated events and transactions occurring after the balance sheet date through the date Finance Corp.’s condensed financial statements were issued and concluded that there were no events or transactions occurring during this period that required recognition or disclosure in its condensed financial statements.

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ITEM 2.      MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

References and Defined Terms

In this Item 2 of this Quarterly Report on Form 10-Q, unless the context indicates otherwise:

● “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;

● “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 Propane and other gas liquid sales: Other Gas Sales, or the volume of bulk propane sold to other third-party propane distributors or marketers and the volume of refined fuel sold;

● “propane sales volume” refers to the volume of propane sold to our retail sales and wholesale sales customers;

● “Class A Units” refers to the Class A Units of Ferrellgas Partners, one of which was issued for every twenty of Ferrellgas Partners’ then-outstanding common units in a 1-for-20 reverse unit split effected on March 30, 2021;

● “Class B Units” refers to the Class B Units of Ferrellgas Partners;

● “Preferred Units” refers to the Senior Preferred Units of the operating partnership;

● “Unitholders” or “unitholders” refers to holders of Class A Units, holders of Class B Units or holders of Preferred Units, as indicated or as the context requires for each such reference; and

● references to any fiscal year are to the fiscal year ended or ending on July 31 of the applicable year.

Also, the following terms are defined in this Item 2 of this Quarterly Report on Form 10-Q:

● Amended Ferrellgas Partners LPA

● Amended OpCo LPA

● Credit Agreement

● Credit Facility

● Ferrellgas Partners Notes

● OpCo LPA Amendment

Cautionary Note Regarding Forward-looking Statements

Statements included in this report include forward-looking statements. These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts. These statements often use words such as “anticipate,” “believe,” “intend,” “plan,” “projection,” “forecast,” “strategy,” “position,” “continue,” “estimate,” “expect,” “may,” “will,” or the negative of those terms or other variations of them or comparable terminology. These statements often discuss plans, strategies, events or developments that we expect or anticipate will or may occur in the future and are based upon the beliefs and assumptions of our management and on the information currently available to them. In particular, statements, express or implied, concerning our future operating results or financial position or our ability to generate sales, income or cash flow are forward-looking statements.

44

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;

● inherent operating and litigation risks in gathering, transporting, handling and storing propane;

● our inability to complete acquisitions or to successfully integrate acquired operations;

● costs of complying with, or liabilities imposed under, environmental, health and safety laws;

● the impact of pending and future legal proceedings;

● the interruption, disruption, failure or malfunction of our information technology systems including due to cyber-attack;

● the impact of changes in tax law that could adversely affect the tax treatment of Ferrellgas Partners for federal income tax purposes;

● economic and political instability, particularly in areas of the world tied to the energy industry, including the ongoing conflict between Russia and Ukraine;

● disruptions in the capital and credit markets; and

● access to available capital to meet our operating and debt-service requirements.

When considering any forward-looking statement, you should also keep in mind the risk factors set forth in “Item 1A. Risk Factors” of our Annual Report on Form 10-K for fiscal 2023 and in any more recent filings with the SEC. Any of these risks could impair our business, financial condition or results of operations. Any such impairment may affect our ability to make distributions to our unitholders or pay interest on the principal of any of our debt securities. In addition, the trading price of our securities could decline as a result of any such impairment.

Except for our ongoing obligations to disclose material information as required by federal securities laws, we undertake no obligation to update any forward-looking statements or risk factors after the date of this Quarterly Report on Form 10-Q.

Overview

Our management’s discussion and analysis of financial condition and results of operations relates to Ferrellgas Partners and the operating partnership.

45

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 G “Equity (Deficit)” and Note F “Preferred units” to our condensed 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.

Ferrellgas Partners Finance Corp. and Ferrellgas Finance Corp. have nominal assets, do not conduct any operations and have no employees other than officers. Ferrellgas Partners Finance Corp. has served as co-issuer and co-obligor for debt securities of Ferrellgas Partners, while Ferrellgas Finance Corp., a subsidiary of the operating partnership, serves as co-issuer and co-obligor for debt securities of the operating partnership. Accordingly, and due to the reduced disclosure format, a discussion of the results of operations, liquidity and capital resources of Ferrellgas Partners Finance Corp. and Ferrellgas Finance Corp. is not presented in this section.

The Class A Units of Ferrellgas Partners are traded on the OTC Pink Market under the symbol “FGPR.”

We file annual, quarterly, and current reports and other information with the Securities and Exchange Commission (the “SEC”). You may read and download our SEC filings over the Internet from several commercial document retrieval services as well as at the SEC’s website at www.sec.gov. Our SEC filings are also available on our website at www.ferrellgas.com at no cost as soon as reasonably practicable after our electronic filing or furnishing thereof with the SEC. Please note that any Internet addresses provided in this Quarterly Report on Form 10-Q are for informational purposes only and are not intended to be hyperlinks. Accordingly, no information found and/or provided at such Internet addresses is intended or deemed to be incorporated by reference herein.

The following is a discussion of our historical financial condition and results of operations and should be read in conjunction with our audited historical consolidated financial statements and accompanying notes thereto included in our Annual Report on Form 10-K for fiscal 2023 and in our unaudited historical condensed consolidated financial statements and accompanying notes thereto included elsewhere in this Quarterly Report on Form 10-Q.

The discussions set forth in the “Results of Operations” and “Liquidity and Capital Resources” sections generally refer to Ferrellgas Partners and its consolidated subsidiaries.

How We Evaluate Our Operations

We evaluate our overall business performance based primarily on a metric we refer to as “Adjusted EBITDA,” which is not defined by GAAP and should not be considered an alternative to earnings measures defined by GAAP. We do not utilize depreciation, depletion and amortization expense in our key measures because we focus our performance management on cash flow generation and our revenue generating assets have long useful lives. For the definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net earnings attributable to Ferrellgas Partners, L.P., the most directly comparable GAAP measure, see the subheading “Non-GAAP Financial Measures” below.

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Propane operations and related equipment sales

Based on our propane sales volumes in fiscal 2023, we believe that we are the second largest retail marketer of propane in the United States and a leading national provider of propane by portable tank exchange. We serve residential, industrial/commercial, portable tank exchange, agricultural, wholesale and other customers in all 50 states, the District of Columbia and Puerto Rico. Our operations primarily include the retail distribution and sale of propane and related equipment and supplies.

We use information on temperatures to understand how our results of operations are affected by temperatures that are warmer or colder than normal. Normal temperatures computed by us are the average of the last 10 years of information published by the National Oceanic and Atmospheric Administration (“NOAA”). Based on this information we calculate a ratio of actual heating degree days to normal heating degree days. Heating degree days are a general indicator of weather impacting propane usage.

Weather conditions have a significant impact on demand for propane for heating purposes primarily during the months of November through March (the “winter heating season”). Accordingly, the volume of propane used by our customers for this purpose is directly affected by the severity of the winter weather in the regions we serve and can vary substantially from year to year. In any given region, sustained warmer-than-normal temperatures will tend to result in reduced propane usage, while sustained colder-than-normal temperatures will tend to result in greater usage. Although there is a strong correlation between weather and customer usage, general economic conditions in the United States and the wholesale price of propane can have a significant impact on this correlation. Additionally, there is a natural time lag between the onset of cold weather and increased sales to customers. If the United States were to experience a cooling trend, we could expect nationwide demand for propane to increase which could lead to greater sales, income and cash flow. Conversely, if the United States were to experience a continued warming trend, we could expect nationwide demand for propane for heating purposes to decrease which could lead to a reduction in our sales, income and cash flow as well as impact our ability to maintain compliance with our debt covenants.

We employ risk management activities that attempt to mitigate price risks related to the purchase, storage, transport and sale of propane generally in the contract and spot markets from major domestic energy companies. We attempt to mitigate these price risks through the use of financial derivative instruments and forward propane purchase and sales contracts. We enter into propane sales commitments with a portion of our customers that provide for a contracted price agreement for a specified period of time. These commitments can expose us to product price risk if not immediately hedged with an offsetting propane purchase commitment.

Our open financial derivative propane purchase commitments are designated as hedges primarily for fiscal 2024 and 2025 sales commitments and, as of April 30, 2024, we have experienced net mark-to-market gains of approximately $1.0 million. Because these financial derivative purchase commitments qualify for hedge accounting treatment, the resulting asset, liability and related mark-to-market gains or losses are recorded on the condensed consolidated balance sheets as “Prepaid expenses and other current assets,” “Other assets, net,” “Other current liabilities,” “Other liabilities” and “Accumulated other comprehensive income,” respectively, until settled. Upon settlement, realized gains or losses on these contracts will be reclassified to “Cost of sales-propane and other gas liquid sales” in the condensed consolidated statements of operations as the underlying inventory is sold. These financial derivative purchase commitment net gains are expected to be offset by decreased margins on propane sales commitments that qualify for the normal purchase normal sale exception. At April 30, 2024, we estimate 97% of currently open financial derivative purchase commitments, the related propane sales commitments and the resulting gross margin will be realized into earnings during the next twelve months.

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Summary Discussion of Results of Operations:

Executive Overview

For the three months ended April 30, 2024 and 2023

Weather was a driving factor impacting our quarterly results as record heat continued throughout the United States. Propane sales volumes during the three months ended April 30, 2024 decreased 11%, or 24.6 million gallons, compared to the prior year period. We also continue to see business closings and the effects of inflation, which contributed to a 5% decrease in retail customers compared to the prior year period.

During the three months ended April 30, 2024 and 2023, we recognized net earnings attributable to Ferrellgas Partners, L.P. of $52.8 million and $72.4 million, respectively. This $19.6 million decrease was primarily driven by a $19.6 million decrease in gross margin.

Distributable cash flow attributable to equity investors decreased to $77.8 million for the three months ended April 30, 2024 compared to $99.3 million for the prior year period, primarily due to a $19.6 million decrease in gross margin and, after adjusting for a $3.0 million decrease in “Legal fees and settlements related to non-core businesses,” a $3.2 million increase in “Operating, general and administrative expense.”  

During the three months ended April 30, 2024, we had a distributable cash flow shortage of $39.8 million compared to a distributable cash flow excess of $31.8 million during the three months ended April 30, 2023. This $71.6 million change was primarily due to a $50.0 million increase in distributions paid to Class B Unitholders and the $21.5 million decrease in distributable cash flow attributable to equity investors noted above.

For the nine months ended April 30, 2024 and 2023

April 2024 marked the 11^th-consecutive month of record-high global temperatures according to NOAA data, impacting much of the United States. Propane sales volumes during the nine months ended April 30, 2024 decreased 6%, or 38.2 million gallons, compared to the prior year period.

During the nine months ended April 30, 2024 and 2023, we recognized net earnings attributable to Ferrellgas Partners, L.P. of $131.0 million and $166.0 million, respectively. This $35.0 million decrease was primarily driven by a $24.5 million decrease in gross margin and a $20.3 million increase in “Operating expense – personnel, vehicle, plant and other” which was partially offset by a $10.8 million decrease in “General and administrative expense.”

Distributable cash flow attributable to equity investors decreased to $207.9 million for the nine months ended April 30, 2024 compared to $252.9 million for the prior year period, primarily due to a $47.4 million decrease in Adjusted EBITDA which was partially offset by a decrease of $1.5 million in maintenance capital expenditures.

For the nine months ended April 30, 2024 and 2023, we had a distributable cash flow excess of $55.2 million and $149.7 million, respectively. This $94.5 million decrease was primarily due to a $50.0 million increase in distributions paid to Class B Unitholders and the $45.0 million decrease in distributable cash flow attributable to equity investors noted above.

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Consolidated Results of Operations

	Three months ended April 30,				Nine months ended April 30,
(amounts in thousands)	2024		2023		2024		2023
Total revenues	$	515,774	$	587,347	$	1,496,664	$	1,684,579
Total cost of sales		243,476		295,499		701,665		865,091
Operating expense - personnel, vehicle, plant and other		150,629		147,477		454,913		434,572
Depreciation and amortization expense		25,340		23,753		74,179		69,453
General and administrative expense		13,305		16,213		43,321		54,161
Operating expense - equipment lease expense		5,275		5,861		15,994		17,471
Non-cash employee stock ownership plan compensation charge		880		767		2,500		2,212
Loss on asset sales and disposals		130		958		1,847		2,928
Operating income		76,739		96,819		202,245		238,691
Interest expense		(24,685)		(24,297)		(73,205)		(72,483)
Other income, net		1,324		852		3,509		1,865
Earnings before income taxes		53,378		73,374		132,549		168,073
Income tax expense		240		367		711		888
Net earnings		53,138		73,007		131,838		167,185
Net earnings attributable to noncontrolling interest		372		580		839		1,203
Net earnings attributable to Ferrellgas Partners, L.P.	$	52,766	$	72,427	$	130,999	$	165,982

Non-GAAP Financial Measures

In this Quarterly Report we present the following Non-GAAP financial measures: Adjusted EBITDA, Distributable cash flow attributable to equity investors, Distributable cash flow attributable to Class A and B Unitholders, and Distributable cash flow (shortage) excess.

Adjusted EBITDA. Adjusted EBITDA for Ferrellgas Partners is calculated as net earnings attributable to Ferrellgas Partners, L.P., plus the sum of the following: income tax expense, interest expense, depreciation and amortization expense, non-cash employee stock ownership plan compensation charge, loss on asset sales and disposals, other income, net, severance costs, legal fees and settlements related to non-core businesses, business transformation costs and net earnings attributable to noncontrolling interest. Management believes the presentation of this measure is relevant and useful because it allows investors to view the partnership’s performance in a manner similar to the method management uses, adjusted for items management believes make it easier to compare its results with other companies that have different financing and capital structures. Adjusted EBITDA, as management defines it, may not be comparable to similarly titled measurements used by other companies. Items added into our calculation of Adjusted EBITDA that will not occur on a continuing basis may have associated cash payments. This method of calculating Adjusted EBITDA should be viewed in conjunction with measurements that are computed in accordance with GAAP.

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Distributable Cash Flow Attributable to Equity Investors. Distributable cash flow attributable to equity investors is calculated as Adjusted EBITDA minus net cash interest expense, maintenance capital expenditures and cash paid for income taxes, plus proceeds from certain asset sales. Management considers distributable cash flow attributable to equity investors a meaningful measure of Ferrellgas’ ability to declare and pay quarterly distributions to equity investors, including holders of the operating partnership’s Preferred Units. Distributable cash flow attributable to equity investors, as management defines it, may not be comparable to similarly titled measurements used by other companies. Items added into our calculation of distributable cash flow attributable to equity investors that will not occur on a continuing basis may have associated cash payments. Distributable cash flow attributable to equity investors should be viewed in conjunction with measurements that are computed in accordance with GAAP.

Distributable Cash Flow Attributable to Class A and B Unitholders. Distributable cash flow attributable to Class A and B Unitholders is calculated as Distributable cash flow attributable to equity investors minus distributions accrued or paid to Preferred Unitholders and distributable cash flow attributable to general partner and noncontrolling interest. Management considers Distributable cash flow attributable to Class A and B Unitholders a meaningful measure of the partnership’s ability to declare and pay quarterly distributions to Class A and B Unitholders. Distributable cash flow attributable to Class A and B Unitholders, as management defines it, may not be comparable to similarly titled measurements used by other companies. Items added into our calculation of distributable cash flow attributable to Class A and B Unitholders that will not occur on a continuing basis may have associated cash payments. Distributable cash flow attributable to Class A and B Unitholders should be viewed in conjunction with measurements that are computed in accordance with GAAP.

Distributable Cash Flow (Shortage)Excess. Distributable cash flow (shortage) excess is calculated as Distributable cash flow attributable to Class A and B Unitholders minus Distributions paid to Class A and B Unitholders. Distributable cash flow excess, if any, is retained to establish reserves, to reduce debt, to fund capital expenditures and for other partnership purposes, and any shortage is funded from previously established reserves, cash on hand or borrowings under our Credit Facility. Management considers Distributable cash flow (shortage) excess a meaningful measure of the partnership’s ability to effectuate those purposes. Distributable cash flow (shortage) excess, as management defines it, may not be comparable to similarly titled measurements used by other companies. Items added into our calculation of distributable cash flow (shortage) excess that will not occur on a continuing basis may have associated cash payments. Distributable cash flow (shortage) excess should be viewed in conjunction with measurements that are computed in accordance with GAAP.

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The following table reconciles Adjusted EBITDA, Distributable cash flow attributable to equity investors, Distributable cash flow attributable to Class A and B Unitholders and Distributable cash flow (shortage) excess to Net earnings attributable to Ferrellgas Partners, L.P., the most directly comparable GAAP measure, for the three and nine months ended April 30, 2024 and 2023:

	Three months ended April 30,				Nine months ended April 30,
(amounts in thousands)	2024		2023		2024		2023
Net earnings attributable to Ferrellgas Partners, L.P.	$	52,766	$	72,427	$	130,999	$	165,982
Income tax expense		240		367		711		888
Interest expense		24,685		24,297		73,205		72,483
Depreciation and amortization expense		25,340		23,753		74,179		69,453
EBITDA		103,031		120,844		279,094		308,806
Non-cash employee stock ownership plan compensation charge		880		767		2,500		2,212
Loss on asset sales and disposals		130		958		1,847		2,928
Other income, net		(1,324)		(852)		(3,509)		(1,865)
Severance costs		—		—		—		644
Legal fees and settlements related to non-core businesses		323		3,295		1,480		17,274
Business transformation costs (1)		591		—		1,556		—
Net earnings attributable to noncontrolling interest		372		580		839		1,203
Adjusted EBITDA		104,003		125,592		283,807		331,202
Net cash interest expense (2)		(21,240)		(21,426)		(63,411)		(64,297)
Maintenance capital expenditures (3)		(5,383)		(5,208)		(13,952)		(15,415)
Cash paid for income taxes		(136)		(217)		(495)		(713)
Proceeds from certain asset sales		589		591		1,969		2,079
Distributable cash flow attributable to equity investors		77,833		99,332		207,918		252,856
Less: Distributions accrued or paid to preferred unitholders		16,045		15,590		48,546		48,063
Distributable cash flow attributable to general partner and non-controlling interest		(1,557)		(1,986)		(4,159)		(5,056)
Distributable cash flow attributable to Class A and B unitholders		60,231		81,756		155,213		199,737
Less: Distributions paid to Class A and B unitholders (4)		99,996		49,998		99,996		49,998
Distributable cash flow (shortage) excess	$	(39,765)	$	31,758	$	55,217	$	149,739

(1) Non-recurring costs included in “Operating, general and administrative expense” primarily related to the implementation of an Enterprise Resource Planning (“ERP”) system as part of our business transformation initiatives.

(2) Net cash interest expense is the sum of interest expense less non-cash interest expense and other income, net.

(3) Maintenance capital expenditures include capitalized expenditures for betterment and replacement of property, plant and equipment, and may from time to time include the purchase of assets that are typically leased.

(4) The Company did not pay any distributions to Class A unitholders during fiscal 2024 or fiscal 2023.

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Operating Results for the three months ended April 30, 2024 and 2023

The following table summarizes propane sales volumes and Adjusted EBITDA results for the periods indicated:

	2024		2023		Increase (Decrease)
As of April 30,
Retail customers		640,885		672,280		(31,395)	(5)	%
Tank exchange selling locations		68,536		61,243		7,293	12	%
(amounts in thousands)
Three months ended April 30,
Propane sales volumes (gallons):
Retail - Sales to End Users		162,282		182,937		(20,655)	(11)	%
Wholesale - Sales to Resellers		47,102		51,015		(3,913)	(8)	%
		209,384		233,952		(24,568)	(11)	%
Revenues -
Propane and other gas liquids sales:
Retail - Sales to End Users	$	367,300	$	431,538	$	(64,238)	(15)	%
Wholesale - Sales to Resellers		119,739		123,532		(3,793)	(3)	%
Other Gas Sales (1)		3,018		3,977		(959)	(24)	%
Other (2)		25,717		28,300		(2,583)	(9)	%
Propane and related equipment revenues	$	515,774	$	587,347	$	(71,573)	(12)	%
Gross Margin -
Propane and other gas liquids sales gross margin: (3)
Retail - Sales to End Users (1)	$	198,497	$	217,583	$	(19,086)	(9)	%
Wholesale - Sales to Resellers (1)		51,279		49,638		1,641	3	%
Other (2)		22,522		24,627		(2,105)	(9)	%
Propane and related equipment gross profit	$	272,298	$	291,848	$	(19,550)	(7)	%
Operating, general and administrative expense (4)	$	163,934	$	163,690	$	244	0	%
Operating expense - equipment lease expense		5,275		5,861		(586)	(10)	%
Operating income	$	76,739	$	96,819	$	(20,080)	(21)	%
Depreciation and amortization expense		25,340		23,753		1,587	7	%
Non-cash employee stock ownership plan compensation charge		880		767		113	15	%
Loss on asset sales and disposals		130		958		(828)	(86)	%
Legal fees and settlements related to non-core businesses		323		3,295		(2,972)	(90)	%
Business transformation costs (5)		591		—		591	100	%
Adjusted EBITDA	$	104,003	$	125,592	$	(21,589)	(17)	%

(1)Gross margin for “Other Gas Sales” is allocated to Gross margin “Retail - Sales to End Users” and “Wholesale - Sales to Resellers” based on the volumes in each respective category.

(2)“Other” primarily includes various customer fee income and to a lesser extent appliance and material sales.

(3)Gross margin from “Propane and other gas liquids sales” represents “Revenues - Propane and other gas liquids sales” less “Cost of sales - Propane and other gas liquids sales” and does not include depreciation and amortization.

(4)“Operating, general and administrative expense” above includes both the “Operating expense – personnel, vehicle, plant and other” and the “General and administrative expense” captions in the condensed consolidated statement of operations.

(5)Non-recurring costs included in “Operating, general and administrative expense” primarily related to the implementation of an ERP system as part of our business transformation initiatives.

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Propane sales volumes during the three months ended April 30, 2024 decreased 11%, or 24.6 million gallons, compared to the prior year period. Average temperatures (measured by heating degree days) were 16% warmer than normal (based on NOAA’s ten-year average) and 10% warmer than the prior year period during the three months ended April 30, 2024. As noted above, sales volumes were heavily impacted by continued record heat trends throughout the United States. Additionally, business closings and the effects of inflation, contributed to a 5% decrease in retail customers compared to the prior year period, which also impacted sales volumes.

Our wholesale sales price per gallon partially correlates to the change in the wholesale market price of propane. The wholesale market price at major supply points in Mt. Belvieu, Texas during the three months ended April 30, 2024 averaged 3.7% more than the prior year period, while at the Conway, Kansas major supply point prices averaged 1.3% more than the prior year period. The wholesale market price at Mt. Belvieu, Texas averaged $0.84 and $0.81 per gallon during the three months ended April 30, 2024 and 2023, respectively, while the wholesale market price at Conway, Kansas averaged $0.78 and $0.77 per gallon during the three months ended April 30, 2024 and 2023, respectively. However, in the Pacific Northwest region and some of the Mountain region in which we operate, prices averaged $0.48 less per gallon during the three months ended April 30, 2024 compared to the prior year period due to Los Angeles and the Bay Area pricing. These regional pricing differentials accounted for additional decreases in revenue noted below compared to the volume decrease.

Revenues

Retail sales decreased $64.2 million, or 15%, compared to the prior year period. Gallons sold decreased 20.7 million gallons, or 11%, compared to the prior year period. The decline corresponded with the unfavorable weather trends and the customer decrease noted above. Additionally, we will be able to re-deploy assets related to closed businesses for gallon growth occurring in future periods.

Wholesale sales decreased $3.8 million, or 3%, compared to the prior year period. Wholesale gallons sold decreased 3.9 million gallons, or 8%, compared to the prior year period primarily due to a decrease in gallons sold to third parties, which was partially offset by a 3% increase in tank exchange gallons sold. The above average temperatures during the quarter were favorable to our tank exchange business as a surge in consumer demand prompted an early kick-off to the grilling season. Additionally, tank usage increased in areas where the electric grid failed due to the heat. We leveraged our national footprint, supply contacts, and our experienced labor force, executing well against higher-than-normal demand in our tank exchange business. Tank exchange selling locations increased 12% compared to the prior year period as two major accounts accounted for an increase of approximately 5,500 tank exchange selling locations compared to the prior year period.

Other gas sales decreased $1.0 million, or 24%, compared to the prior year period primarily due to a decrease in sales volume.

Other revenues decreased $2.6 million, or 9%, compared to the prior year period. The change was primarily due to decreases of $1.3 million in transport revenue and miscellaneous revenues and fees, respectively.

Gross margin - Propane and other gas liquids sales

Gross margin decreased $17.4 million as the $19.1 million decrease in retail gross margin was partially offset by a $1.6 million increase in wholesale gross margin. The overall change was driven by a $69.0 million decrease in revenue, which was partially offset by a $51.5 million decrease in cost of sales primarily due to weather-related volume decreases, as discussed above. Margin per gallon for the period increased by $0.05, or 4%, compared to the prior year period. The increase was primarily due to segment mix, our Platinum Plus fixed cost program for residential customers and national account pricing improvement.

Gross margin - other

Gross margin decreased $2.1 million, or 9%, compared to the prior year period.

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Operating income

Operating income decreased $20.1 million primarily due to the decrease of $19.6 million decrease in gross margin noted above. The $0.2 million increase in “Operating, general and administrative expense” is comprised of a $3.2 million increase in “Operating expense – personnel, vehicle, plant and other” and a $2.9 million decrease in “General and administrative expense.” The $3.2 million increase in “Operating expense – personnel, vehicle, plant and other” was primarily due to a $2.6 million increase in personnel expense, which consisted of a $5.2 million increase in medical claims paid, partially offset by a $2.6 million decrease in incentive accruals. Our experienced operations professionals appropriately responded to the weather anomaly as they managed expenses in all areas of operations, including driving fleet expenses down by over 8% when compared to prior year. Lower legal costs compared to the prior year period drove the $2.9 million decrease in “General and administrative expense.”

Adjusted EBITDA

Adjusted EBITDA decreased $21.6 million primarily due to a $19.6 million decrease in gross margin, primarily related to warmer than normal weather, and a $3.2 million increase in “Operating expense – personnel, vehicle, plant and other” as described above.

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Operating Results for the nine months ended April 30, 2024 and 2023

The following table summarizes propane sales volumes and Adjusted EBITDA results for the periods indicated:

	2024		2023		Increase (Decrease)
As of April 30,
Retail customers		640,885		672,280		(31,395)	(5)	%
Tank exchange selling locations		68,536		61,243		7,293	12	%
(amounts in thousands)
Nine months ended April 30,
Propane sales volumes (gallons):
Retail - Sales to End Users		479,776		514,995		(35,219)	(7)	%
Wholesale - Sales to Resellers		152,845		155,829		(2,984)	(2)	%
		632,621		670,824		(38,203)	(6)	%
Revenues -
Propane and other gas liquids sales:
Retail - Sales to End Users	$	1,033,000	$	1,195,961	$	(162,961)	(14)	%
Wholesale - Sales to Resellers		368,088		388,154		(20,066)	(5)	%
Other Gas Sales (1)		12,112		12,662		(550)	(4)	%
Other (2)		83,464		87,802		(4,338)	(5)	%
Propane and related equipment revenues	$	1,496,664	$	1,684,579	$	(187,915)	(11)	%
Gross Margin -
Propane and other gas liquids sales gross margin: (3)
Retail - Sales to End Users (1)	$	562,108	$	588,612	$	(26,504)	(5)	%
Wholesale - Sales to Resellers (1)		160,793		155,766		5,027	3	%
Other (2)		72,098		75,110		(3,012)	(4)	%
Propane and related equipment gross profit	$	794,999	$	819,488	$	(24,489)	(3)	%
Operating, general and administrative expense (4)	$	498,234	$	488,733	$	9,501	2	%
Operating expense - equipment lease expense		15,994		17,471		(1,477)	(8)	%
Operating income	$	202,245	$	238,691	$	(36,446)	(15)	%
Depreciation and amortization expense		74,179		69,453		4,726	7	%
Non-cash employee stock ownership plan compensation charge		2,500		2,212		288	13	%
Loss on asset sales and disposals		1,847		2,928		(1,081)	(37)	%
Legal fees and settlements related to non-core businesses		1,480		17,274		(15,794)	(91)	%
Business transformation costs (5)		1,556		—		1,556	100	%
Severance costs		—		644		(644)	(100)	%
Adjusted EBITDA	$	283,807	$	331,202	$	(47,395)	(14)	%

(1) Gross margin for “Other Gas Sales” is allocated to Gross margin “Retail - Sales to End Users” and “Wholesale - Sales to Resellers” based on the volumes in each respective category.

(2) “Other” primarily includes various customer fee income and to a lesser extent appliance and material sales.

(3) Gross margin from “Propane and other gas liquids sales” represents “Revenues - Propane and other gas liquids sales” less “Cost of sales - Propane and other gas liquids sales” and does not include depreciation and amortization.

(4) “Operating, general and administrative expense” above includes both the “Operating expense – personnel, vehicle, plant and other” and the “General and administrative expense” captions in the condensed consolidated statement of operations.

(5) Non-recurring costs included in “Operating, general and administrative expense” primarily related to the implementation of an ERP system as part of our business transformation initiatives.

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Propane sales volumes during the nine months ended April 30, 2024 decreased 6%, or 38.2 million gallons, compared to the prior year period. Average temperatures (measured by heating degree days) were 10% warmer than normal (based on NOAA’s ten-year average) and 5% warmer than the prior year during the nine months ended April 30, 2024.

Our wholesale sales price per gallon partially correlates to the change in the wholesale market price of propane. The wholesale market price at major supply points in Mt. Belvieu, Texas during the nine months ended April 30, 2024 averaged 12.8% less than the prior year period, while at the Conway, Kansas major supply point prices averaged 16.3% less than the prior year period. The wholesale market price at Mt. Belvieu, Texas averaged $0.75 and $0.86 per gallon during the nine months ended April 30, 2024 and 2023, respectively, while the wholesale market price at Conway, Kansas averaged $0.72 and $0.86 per gallon during the nine months ended April 30, 2024 and 2023, respectively. This decrease in the wholesale cost of propane contributed to our decrease in sales price per gallon.

Revenues

Retail sales decreased $163.0 million, or 14%, compared to the prior year period. Gallons sold decreased 35.2 million gallons, or 7%, compared to the prior year period. The decline corresponded with the decreases in the wholesale sales price per gallon as well as weather conditions across the nation, both as described above.

Wholesale sales decreased $20.1 million, or 5%, compared to the prior year period corresponding to the decrease in sales price per gallons noted above. Wholesale gallons sold decreased 3.0 million gallons, or 2%, compared to the prior year period.

Other revenues decreased $4.3 million, or 5%, compared to the prior year period. The change was primarily driven by a $2.4 million decrease in miscellaneous revenue and fees, predominantly related to the decrease in gallons sold, and a $1.6 million decrease related to the sale of appliances and parts.

Gross margin - Propane and other gas liquids sales

Gross margin decreased $21.5 million primarily due to a $183.6 million decrease in revenue, which was partially offset by a $162.1 million decrease in cost of sales as a result of decreases in price per gallon and weather-related volume decreases, both as discussed above, in addition to an $8.0 million decrease in Blue Rhino capital expenditures primarily due to supply chain improvements and inventory turn improvements. These decreases impacted both the revenue and cost of product changes for the period. Margin per gallon for the period increased by $0.03, or 3%, compared to the prior year period. The increase was primarily due to segment mix, our Platinum Plus fixed cost program for residential customers and national account pricing improvement.

Gross margin - other

Gross margin decreased $3.0 million, or 4%, compared to the prior year period.

Operating income

Operating income decreased $36.4 million, or 15%, primarily due to the $24.5 million decrease in gross margin noted above, a $9.5 million increase in “Operating, general and administrative expense,” and a $4.7 million increase in “Depreciation and amortization expense.”  

The $9.5 million increase in “Operating, general and administrative expense” was comprised of a $20.3 million increase in “Operating expense – personnel, vehicle, plant and other” partially offset by a $10.8 million decrease in “General and administrative expense.” The $20.3 million increase in “Operating expense – personnel, vehicle, plant and other” was primarily due to an $11.4 million increase in personnel expense and a $6.4 million increase in vehicle repairs and maintenance costs. The $11.4 million increase in personnel expense primarily consisted of a $9.4 million increase in medical claims paid and a net $2.0 million increase in payroll costs.

A decrease of $15.8 million in legal costs compared to the prior year period drove the majority of the $10.8 million decrease in “General and administrative expense.” This decrease was partially offset by a $5.0 million increase related to $2.0 million for our ongoing ERP system implementation in addition to other miscellaneous expense.

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Adjusted EBITDA

Adjusted EBITDA decreased $47.4 million primarily due to the $24.5 million decrease in gross margin noted above and, after adjusting for a $15.8 million decrease in “Legal fees and settlements related to non-core businesses,” a $25.3 million increase in “Operating, general and administrative expense.” The $25.3 million increase consists of a $20.3 million increase in “Operating expense – personnel, vehicle, plant and other” and a $5.0 million increase in “General and administrative expense,” both as described above.

Liquidity and Capital Resources

General

Our primary sources of liquidity and capital resources are cash flows from operating activities, our Credit Facility and funds received from sales of debt and equity securities. The operating partnership, the general partner and certain of the operating partnership’s subsidiaries are parties to a credit agreement, dated March 30, 2021, as amended on May 23, 2023 (the “Credit Agreement”), which provides for a four-year revolving credit facility (the “Credit Facility”) in an aggregate principal amount of up to $350.0 million. The Credit Agreement includes a sublimit not to exceed $300.0 million for the issuance of letters of credit. For additional discussion, see Note E “Debt” in the notes to our condensed consolidated financial statements.

As of April 30, 2024, our total liquidity was $342.7 million, which was comprised of $62.9 million in unrestricted cash and $279.8 million of availability under our Credit Facility. These sources of liquidity and short-term capital resources are intended to fund our working capital requirements, acquisitions and capital expenditures. As of April 30, 2024, letters of credit outstanding totaled $70.2 million. Our access to long-term capital resources, to the extent needed to refinance debt or for other purposes, may be affected by our ability to access the capital markets, covenants in our debt agreements and other financial obligations, unforeseen demands on cash, or other events beyond our control.

As of April 30, 2024, we had $10.8 million of restricted cash consisting of a cash deposit made with the administrative agent under our prior senior secured credit facility that was terminated in April 2020.

Our working capital requirements are subject to, among other things, the price of propane, delays in the collection of receivables, volatility in energy commodity prices, liquidity imposed by insurance providers, downgrades in our credit ratings, decreased trade credit, significant acquisitions, the weather, customer retention and purchasing patterns and other changes in the demand for propane. Relatively colder weather or higher propane prices during the winter heating season are factors that could significantly increase our working capital requirements.

Our ability to satisfy our obligations is dependent upon our future performance, which will be subject to prevailing weather, economic, financial and business conditions and other factors, many of which are beyond our control. Due to the seasonality of the retail propane distribution business, a significant portion of our propane operations and related products cash flows from operations is generated during the winter heating season. Our net cash provided by operating activities primarily reflects earnings from our business activities adjusted for depreciation and amortization and changes in our working capital accounts. Historically, we generate significantly lower net cash from operating activities in our first and fourth fiscal quarters as compared to the second and third fiscal quarters due to the seasonality of our propane operations and related equipment sales operations.

During periods of high volatility, our risk management activities may expose us to the risk of counterparty margin calls in amounts greater than we have the capacity to fund. Likewise, our counterparties may not be able to fulfill their margin calls from us or may default on the settlement of positions with us.

We believe that the liquidity available from cash flows from operating activities, unrestricted cash and the Credit Facility will be sufficient to meet our capital expenditure, working capital and letter of credit requirements for the foreseeable future.

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Distributable Cash Flow

Distributable cash flow attributable to equity investors is reconciled to net earnings attributable to Ferrellgas Partners, L.P., the most directly comparable GAAP measure, in this Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations under the subheading “Non-GAAP Financial Measures” above. A comparison of distributable cash flow attributable to equity investors to cash distributions accrued or paid to equity investors for the twelve months ended April 30, 2024 to the twelve months ended January 31, 2024 is as follows (in thousands):

	Distributable		Cash reserves (deficiency)		Cash distributions
	cash flow attributable		approved by our		accrued or paid to		DCF
	to equity investors		General Partner		equity investors		ratio (1)
Nine months ended April 30, 2024	$	207,918	$	159,372	$	48,546
Fiscal 2023		254,364		190,050		64,314
Less: Nine months ended April 30, 2023		252,856		204,793		48,063
Twelve months ended April 30, 2024	$	209,426	$	144,629	$	64,797	3.2x
Twelve months ended January 31, 2024		230,925		166,583		64,342	3.6x
Change	$	(21,499)	$	(21,954)	$	455	(0.4)x

(1) DCF ratio is calculated as Distributable cash flow attributable to equity investors divided by Cash distributions accrued or paid to equity investors.

For the twelve months ended April 30, 2024, distributable cash flow attributable to equity investors decreased $21.5 million compared to the twelve months ended January 31, 2024, due to a decrease in Adjusted EBITDA primarily attributable to lower propane sales due to warmer than normal weather. As of April 30, 2024, the accrued quarterly distribution to Preferred Unitholders was $16.9 million. We paid $15.4 million of this distribution on May 15, 2024. The remaining $1.5 million represents Additional Amounts payable to certain holders of Preferred Units, pursuant to the side letters outlined in the OpCo LPA Amendment. Additionally, during the nine months ended April 30, 2024 and 2023, we paid $2.0 million and $1.7 million, respectively, for Additional Amounts payable pursuant to the side letters.

We did not pay any cash distributions to our Class A Unitholders or the general partner during fiscal 2024 or fiscal 2023, except for a $1.0 million distribution to the general partner, made in conjunction with the Class B distribution noted below, during the three and nine months ended April 30, 2024. On April 9, 2024, Ferrellgas Partners made a cash distribution in the aggregate amount of approximately $99.9 million to its Class B Unitholders. Ferrellgas Partners made aggregate cash distributions of approximately $49.9 million during the three and nine months ended April 30, 2023. We have made aggregate cash distributions of approximately $250.0 million to our Class B Unitholders since inception of our Class B Units. Cash reserves, which we utilize to meet future anticipated expenditures, were $144.6 million and $166.6 million for the twelve months ended April 30, 2024 and January 31, 2023, respectively.

Operating Activities

Ferrellgas Partners

Net cash provided by operating activities was $175.9 million and $143.2 million for the nine months ended April 30, 2024 and 2023, respectively. The $32.7 million increase in cash provided by operating activities was primarily due to a $39.3 million decrease in working capital requirements, a $17.4 million decrease in requirements for other current liabilities, and a $5.4 million decrease in requirements for prepaid expenses. These changes were partially offset by a $31.1 million decrease in cash flow from operations.

The $39.3 million decrease in working capital requirements was primarily due to a $29.3 million decrease in requirements for accounts and notes receivable, net and a $20.5 million decrease in requirements for accounts payable. These decreases were partially offset by an increase of $10.5 million in inventory requirements. The $17.4 million decrease in net cash requirements for other current liabilities was primarily driven by increases in payroll and other related costs and sales tax liabilities. These changes were partially offset by a decrease in the broker margin deposit liability.

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The $31.1 million decrease in cash flow from operations was primarily due to a $24.5 million decrease in gross profit and a $20.3 million increase in “Operating expense – personnel, vehicle, plant and other,” which was partially offset by a $10.8 million decrease in “General and administrative expense.”

The operating partnership

Net cash provided by operating activities was $175.6 million and $143.0 million for the nine months ended April 30, 2024 and 2023, respectively. The $32.6 million increase in cash provided by operating activities was primarily due to a $39.3 million decrease in working capital requirements, a $17.5 million decrease in requirements for other current liabilities, and a $5.4 million decrease in requirements for prepaid expenses. These changes were partially offset by a $31.4 million decrease in cash flow from operations.

The $39.3 million decrease in working capital requirements was primarily due to a $29.3 million decrease in requirements for accounts and notes receivable, net and a $20.5 million decrease in requirements for accounts payable. These decreases were partially offset by an increase of $10.5 million in inventory requirements. The $17.5 million decrease in net cash requirements for other current liabilities was primarily driven by increases in payroll and other related costs and sales tax liabilities. These changes were partially offset by a decrease in the broker margin deposit liability.

The $31.4 million decrease in cash flow from operations was primarily due to a $24.5 million decrease in gross profit and a $20.3 million increase in “Operating expense – personnel, vehicle, plant and other,” which was partially offset by a $10.8 million decrease in “General and administrative expense.”

Investing Activities

Ferrellgas Partners

Capital Requirements

Our business requires continual investments to upgrade or enhance existing operations and to ensure compliance with safety and environmental regulations. Capital expenditures for our business consist primarily of:

● Maintenance capital expenditures - These capital expenditures include expenditures for betterment and replacement of property, plant and equipment, and may from time to time include the purchase of assets that are typically leased, rather than to generate incremental distributable cash flow. Examples of maintenance capital expenditures include a routine replacement of a worn-out asset or replacement of major vehicle components; and

● Growth capital expenditures - These expenditures are undertaken primarily to generate incremental distributable cash flow. Examples include expenditures for purchases of both bulk and portable propane tanks and other equipment to facilitate expansion of our customer base and operating capacity.

Net cash used in investing activities was $84.0 million and $92.2 million for the nine months ended April 30, 2024 and 2023, respectively. The $8.2 million decrease in net cash used in investing activities was primarily due to a $7.6 million decrease in “Business acquisitions, net of cash acquired.” We had one acquisition during the nine months ended April 30, 2024 compared to four acquisitions during the nine months ended April 30, 2023.

Due to the mature nature of our operations, we do not anticipate significant fluctuations in maintenance capital expenditures, with the exception of future decisions regarding lease versus buy financing options. However, future fluctuations in growth capital expenditures could occur due to the opportunistic nature of these projects.

The operating partnership

The investing activities discussed above also apply to the operating partnership.

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Financing Activities

Ferrellgas Partners

Net cash used in financing activities was $155.6 million and $105.0 million for the nine months ended April 30, 2024 and 2023, respectively. The $50.6 million increase in cash used in financing activities was primarily due to an increase of $50.0 million in distributions to Class B unitholders.

Letters of credit outstanding at April 30, 2024 and July 31, 2023 totaled $70.2 and $74.0 million, respectively, and were used to secure insurance arrangements, product purchases and commodity hedges. As of April 30, 2024, we had available borrowing capacity under our Credit Facility of $279.8 million. Propane assets subject to lien under the Credit Facility were $60.6 million as of April 30, 2024.  

The operating partnership

The financing activities discussed above also apply to the operating partnership.

Distributions

Partnership distributions

The Sixth Amended and Restated Agreement of Limited Partnership of Ferrellgas Partners, L.P. (the “Amended Ferrellgas Partners LPA”) requires Ferrellgas Partners to make quarterly cash distributions of all of its “available cash.” Available cash is defined in the Amended Ferrellgas Partners LPA as, generally, the sum of Ferrellgas’ Partners cash receipts less consolidated cash disbursements and net changes in reserves established by our general partner for future requirements. In general, the amount of Ferrellgas Partners’ available cash depends primarily on whether and the extent to which Ferrellgas Partners receives cash distributions from the operating partnership, as such distributions generally would be Ferrellgas Partners’ only significant cash receipts.

The Fifth Amended and Restated Agreement of Limited Partnership of Ferrellgas, L.P. (the “Amended OpCo LPA”), as amended by the First Amendment to the Amended OpCo LPA (the “OpCo LPA Amendment”), sets forth the preferences, rights, privileges and other terms of the Preferred Units.

Pursuant to the Amended Ferrellgas Partners LPA, while any Class B Units remain outstanding, any distributions by Ferrellgas Partners to its partners must be made such that the ratio of (i) the amount of distributions made to holders of Class B Units to (ii) the amount of distributions made to holders of Class A Units and the general partner is not less than 6:1. The Amended Ferrellgas Partners LPA permits Ferrellgas Partners, in the general partner’s discretion, to make distributions to the Class B Unitholders in a greater proportion than the minimum 6:1 ratio, including paying 100% of any such distribution to Class B Unitholders. The Class B Units will not be convertible into Class A Units until Class B Unitholders receive distributions in the aggregate amount of $357.0 million, which was the $357.0 million aggregate principal amount of Ferrellgas Partners’ unsecured senior notes due June 15, 2020 (the “Ferrellgas Partners Notes”), and the rate at which Class B Units will convert into Class A Units increases annually. Additionally, the price at which Ferrellgas Partners may redeem the Class B Units during the first five years after March 30, 2021 is based on the Class B Unitholders’ receipt of a specified internal rate of return in respect of their Class B Units. This specified internal rate of return in respect of the Class B Units is 15.85%, but that amount increases under certain circumstances, including if the operating partnership paid distributions on the Preferred Units in-kind rather than in cash for a certain number of quarters. Accordingly, distributing cash to the Class B Unitholders in a greater proportion than the minimum 6:1 ratio could result in the Class B Units becoming convertible into Class A Units more quickly or at a lower conversion rate or reduce the redemption price for the Class B Units. For additional discussion of the terms of the Class B Units, see Note G “Equity (Deficit)” in the notes to condensed consolidated financial statements.

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For these reasons, although the general partner has not made any decisions or adopted any policy with respect to the allocation of future distributions by Ferrellgas Partners to its partners, the general partner may determine that it is advisable to pay more than the minimum amount of any distribution, up to 100% of the amount of such distribution, to Class B Unitholders. On April 9, 2024, Ferrellgas Partners made a cash distribution in the aggregate amount of approximately $99.9 million to its Class B Unitholders for the three and nine months ended April 30, 2024. Ferrellgas Partners made aggregate cash distributions of approximately $49.9 million during the three and nine months ended April 30, 2023. We have made aggregate cash distributions of approximately $250.0 million to our Class B Unitholders since inception of our Class B Units. See Note M “Net (loss) earnings per unitholders’ interest” for additional information. These distributions to Class B Unitholders were made without making any distribution to Class A Unitholders and the general partner. See “Risk Factors —Risks Inherent in an Investment in our Class A or Class B Units or our Debt Securities and Other Risks Related to Our Capital Structure and Financing Arrangements—If Ferrellgas Partners is permitted to make and makes distributions to its partners, while any Class B Units remain outstanding, Class B Unitholders collectively will receive at least approximately 85.7% of the aggregate amount of each such distribution and may receive up to 100% of any such distribution. Accordingly, while any Class B Units remain outstanding, Class A Unitholders may not receive any distributions and, in any case, will not receive collectively more than approximately 14.1% of any distribution” in our Annual Report on Form 10-K for fiscal 2023.

Ferrellgas Partners did not pay any distributions to Class A Unitholders, Class B Unitholders or the general partner during the nine months ended April 30, 2024 and 2023, except for the distributions to Class B Unitholders described above and a $1.0 million distribution to the general partner, made in conjunction with the Class B distribution noted below, during the three and nine months ended April 30, 2024.

The ability of Ferrellgas Partners to make cash distributions to its Class A Unitholders and Class B Unitholders is dependent on the receipt by Ferrellgas Partners of cash distributions from the operating partnership. For so long as any Preferred Units remain outstanding, the amount of cash that otherwise would be available for distribution by the operating partnership to Ferrellgas Partners will be reduced by the amount of cash distributions and other payments made by the operating partnership in respect of the Preferred Units, including payments to redeem Preferred Units. Further, the indentures governing the 2026 Notes and the 2029 Notes, the Credit Agreement and the OpCo LPA Amendment governing the Preferred Units contain covenants that limit the ability of the operating partnership to make distributions to Ferrellgas Partners and therefore effectively limit the ability of Ferrellgas Partners to make distributions to its Class A Unitholders and Class B Unitholders. See Note E “Debt” and Note F “Preferred units” for a discussion of these limitations. In our Annual Report on Form 10-K for fiscal 2023, see “Risk Factors—Risks Inherent in an Investment in our Class A or Class B Units or our Debt Securities and Other Risks Related to Our Capital Structure and Financing Arrangements—Restrictive covenants in the Indentures, the Credit Agreement and the agreements governing our other future indebtedness and other financial obligations may reduce our operating flexibility and ability to make cash distributions to holders of Class A Units and Class B Units. The Indentures, the Credit Agreement and the OpCo LPA Amendment contain important exceptions to these covenants.”

Preferred unit distributions

Pursuant to the OpCo LPA Amendment, the operating partnership is required to pay to the holders of each Preferred Unit a cumulative, quarterly distribution (the “Quarterly Distribution”) at the Distribution Rate (as defined below) on the unit purchase price of such Preferred Unit, which is $1,000 per unit.

“Distribution Rate” means, for the first five years after March 30, 2021, a rate per annum equal to 8.956%, with certain increases in the Distribution Rate on each of the 5^th, 6^th and 7^th anniversaries of March 30, 2021, subject to a maximum rate of 11.125% and certain other adjustments and exceptions.

The Quarterly Distribution may be paid in cash or, at the election of the operating partnership, “in kind” through the issuance of additional Preferred Units (“PIK Units”) at the quarterly Distribution Rate plus an applicable premium that escalates each year from 75 bps to 300 bps so long as the Preferred Units remain outstanding. In the event the operating partnership fails to make any Quarterly Distribution in cash, such Quarterly Distribution will automatically be paid in PIK Units.

The Distribution Rate on the Preferred Units will increase upon violation of certain protective provisions for the benefit of Preferred Unitholders notwithstanding the cap mentioned above.

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As of April 30, 2024, the Quarterly Distribution accrued was $16.9 million. During Fiscal 2024, three quarterly payments of $15.4 million relating to Quarterly Distributions were paid in cash to holders of Preferred Units. The remaining Quarterly Distribution accrual of $1.5 million represents Additional Amounts payable to certain holders of Preferred Units pursuant to the side letters outlined in the OpCo LPA Amendment. Additionally, during the nine months ended April 30, 2024, we paid $2.0 million for Additional Amounts payable pursuant to the side letters.

As of April 30, 2023, the Quarterly Distribution accrued was $16.9 million. During Fiscal 2023, one quarterly payment of $15.3 million and two quarterly payments of $15.4 million relating to Quarterly Distributions were paid in cash to holders of Preferred Units. The remaining Quarterly Distribution accrued of $1.5 million represented Additional Amounts payable to certain holders of Preferred Units pursuant to the side letters. Additionally, during the nine months ended April 30, 2023, we paid $1.7 million for Additional Amounts payable pursuant to the side letters.

Preferred unit tax distributions

For any quarter in which the operating partnership makes a Quarterly Distribution in PIK Units in lieu of cash, it shall make a subsequent cash tax distribution for such quarter in an amount equal to the (i) the lesser of (x) 25% and (y) the highest combined federal, state and local tax rate applicable for corporations organized in New York, multiplied by (ii) the excess (if any) of (A) one-fourth (1/4th) of the estimated taxable income to be allocated to the holders of Preferred Units for the year in which the Quarterly Tax Payment Date (which refers to certain specified dates that next follow a Quarterly Distribution date on which PIK Units were issued) occurs, over (B) any cash paid on the Quarterly Distribution date immediately preceding the Quarterly Tax Payment Date on which a quarterly tax amount would otherwise be paid (such amount, the “Tax Distribution”). Tax Distributions are treated as advances against, and reduce, future cash distributions for any reason, including payments in redemption of Preferred Units or PIK Units, or payments to the holders in their capacity as such pursuant to any side letter or other agreement.

Cash distributions paid

Ferrellgas Partners did not pay any cash distributions to its Class A Unitholders or the general partner during fiscal 2024 or fiscal 2023, except for a $1.0 million distribution to the general partner, made in conjunction with the Class B distribution during the three and nine months ended April 30, 2024.

Fiscal 2024

On April 9, 2024, Ferrellgas Partners paid a cash distribution to holders of the Class B Units in the amount of $76.92 per Class B Unit or approximately $99.9 million in the aggregate.

On March 15, 2024, the operating partnership paid a cash distribution to Ferrellgas Partners in the amount of approximately $99.9 million, which Ferrellgas Partners used to pay the April 9, 2024 distribution to its Class B Unitholders described above.

Fiscal 2023

On April 7, 2023, Ferrellgas Partners paid a cash distribution to holders of the Class B Units in the amount of $38.46 per Class B Unit or approximately $49.9 million in the aggregate.

On March 15, 2023, the operating partnership paid a cash distribution to Ferrellgas Partners in the amount of approximately $49.9 million, which Ferrellgas Partners used to pay the April 7, 2023 distribution to its Class B Unitholders described above.

The operating partnership paid cash distributions for the three and nine months ended April 30, 2024 and 2023 in respect of its Preferred Units as discussed above under “—Preferred unit distributions.”

The operating partnership

The financing activities discussed above also apply to the operating partnership.

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Disclosures about Effects of Transactions with Related Parties

We have no employees and are managed and controlled by our general partner. Pursuant to our partnership agreements, our general partner is entitled to reimbursement for all direct and indirect expenses incurred or payments it makes on our behalf, and all other necessary or appropriate expenses allocable to us or otherwise reasonably incurred by our general partner in connection with operating our business. These reimbursable costs, which totaled $273.0 million for the nine months ended April 30, 2024, include operating expenses such as compensation and benefits paid to employees of our general partner who perform services on our behalf as well as related general and administrative expenses.

During the nine months ended April 30, 2024 and 2023, the operating partnership paid distributions to Ferrellgas Partners as described above.

Material Cash Requirements

As of April 30, 2024, there have been no material changes to our material cash requirements from those described under “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Material Cash Requirements” in our Annual Report on Form 10-K for fiscal 2023. For additional information regarding our debt obligations, see Note E “Debt” to our condensed consolidated financial statements.

The operating partnership

The contractual obligations discussed above also apply to the operating partnership.

ITEM 3.      QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We did not enter into any risk management trading activities during the nine months ended April 30, 2024. Our remaining market risk sensitive instruments and positions have been determined to be “other than trading.”

Commodity price risk management

Our risk management activities primarily attempt to mitigate price risks related to the purchase, storage, transport and sale of propane generally in the contract and spot markets from major domestic energy companies. We attempt to mitigate these price risks through the use of financial derivative instruments and forward propane purchase and sales contracts.

Our risk management strategy involves taking positions in the forward or financial markets that are equal and opposite to our positions in the physical products market in order to minimize the risk of financial loss from an adverse price change. This risk management strategy is successful when our gains or losses in the physical product markets are offset by our losses or gains in the forward or financial markets. Our propane related financial derivatives are designated as cash flow hedges.

Our risk management activities include the use of financial derivative instruments including, but not limited to, futures, swaps, and options to seek protection from adverse price movements and to minimize potential losses. We enter into these financial derivative instruments with brokers who are clearing members with the Intercontinental Exchange or the Chicago Mercantile Exchange and, to a lesser extent, directly with third parties in the over-the-counter market. We also enter into forward propane purchase and sales contracts with counterparties. These forward contracts qualify for the normal purchase normal sales exception within GAAP guidance and are therefore not recorded on our financial statements until settled.

Risk Policy and Sensitivity Analysis

Market risks associated with energy commodities are monitored daily by senior management for compliance with our commodity risk management policy. This policy includes an aggregate dollar loss limit and limits on the term of various contracts. We also utilize volume limits for various energy commodities and review our positions daily where we remain exposed to market risk, so as to manage exposures to changing market prices.

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We have prepared a sensitivity analysis to estimate the exposure to market risk of our energy commodity positions. Forward contracts, futures, swaps and options outstanding as of April 30, 2024 and July 31, 2023 that were used in our risk management activities were analyzed assuming a hypothetical 10% adverse change in prices for the delivery month for all energy commodities. The potential loss in future earnings from these positions due to a 10% adverse movement in market prices of the underlying energy commodities was estimated at $5.5 million and $9.5 million as of April 30, 2024 and July 31, 2023, respectively. The preceding hypothetical analysis is limited because changes in prices may or may not equal 10%, thus actual results may differ. Our sensitivity analysis does not include the anticipated transactions associated with these transactions, which we anticipate will be 100% effective.

Credit risk

We maintain credit policies with regard to our counterparties that we believe significantly reduce overall credit risk. These policies include evaluating and monitoring our counterparties’ financial condition (including credit ratings), and entering into agreements with counterparties that govern credit guidelines.

Our other counterparties principally consist of major energy companies that are suppliers, marketers, wholesalers, retailers and end users; and major U.S. financial institutions. The overall impact due to certain changes in economic, regulatory and other events may impact our overall exposure to credit risk, either positively or negatively in that counterparties may be similarly impacted. Based on our policies, exposures, credit and other reserves, management does not anticipate a material adverse effect on financial position or results of operations as a result of counterparty performance.

Interest rate risk

We had variable rate indebtedness outstanding related to our letters of credit under our Credit Facility of $70.2 million and $74.0 million as of April 30, 2024 and July 31, 2023, respectively. Our results of operations, cash flows and financial condition could be materially adversely affected by significant increases in interest rates to the extent that we have variable rate indebtedness (including any disbursements or payments related to letters of credit) outstanding under our Credit Facility.

Critical accounting estimates

Our critical accounting estimates are disclosed under “Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates” in our Form 10-K for fiscal 2023. During the nine months ended April 30, 2024, no modifications were made to these critical accounting estimates.

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ITEM 4.      CONTROLS AND PROCEDURES

An evaluation was performed by the management of Ferrellgas Partners, L.P., Ferrellgas, L.P., Ferrellgas Partners Finance Corp., and Ferrellgas Finance Corp., with the participation of the principal executive officer and principal financial officer of our general partner, of the effectiveness of our disclosure controls and procedures. Based on that evaluation, our management, including our principal executive officer and principal financial officer, concluded that our disclosure controls and procedures, as defined in Rules 13a-15(e) or 15d-15(e) under the Exchange Act, were effective as of April 30, 2024.

The management of Ferrellgas Partners, L.P., Ferrellgas, L.P., Ferrellgas Partners Finance Corp., and Ferrellgas Finance Corp. does not expect that our disclosure controls and procedures will prevent all errors and all fraud. The design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Based on the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the above mentioned partnerships and corporations have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple errors or mistakes. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events. Therefore, a control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Our disclosure controls and procedures are designed to provide such reasonable assurances of achieving our desired control objectives, and the principal executive officer and principal financial officer of our general partner have concluded, as of April 30, 2024, that our disclosure controls and procedures are effective in achieving that level of reasonable assurance.

During the most recent fiscal quarter ended April 30, 2024, there have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) or Rule 15d-15(f) of the Exchange Act) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION

ITEM 1.      LEGAL PROCEEDINGS

For information regarding legal proceedings, see Note L “Contingencies and commitments” in our condensed consolidated financial statements included in Item 1. “Financial Statements.”

ITEM 1A.   RISK FACTORS

There have been no material changes from the risk factors set forth under Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for fiscal 2023 and in our subsequent SEC filings.

ITEM 2.      UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3.      DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.      MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.      OTHER INFORMATION

During the quarter ended April 30, 2024, none of our directors or officers (as defined in Rule 16a-1(f) of the Exchange Act) adopted, terminated or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K).

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ITEM 6.      EXHIBITS

The exhibits listed below are furnished as part of this Quarterly Report on Form 10-Q. Exhibits required by Item 601 of Regulation S-K of the Securities Act, which are not listed, are not applicable.

Exhibit Number	Description
*  31.1	Certification of Ferrellgas Partners, L.P. pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act.
*  31.2	Certification of Ferrellgas Partners Finance Corp. pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act.
*  31.3	Certification of Ferrellgas, L.P. pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act.
*  31.4	Certification of Ferrellgas Finance Corp. pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act.
*  32.1	Certification of Ferrellgas Partners, L.P. pursuant to 18 U.S.C. Section 1350.
*  32.2	Certification of Ferrellgas Partners Finance Corp. pursuant to 18 U.S.C. Section 1350.
*  32.3	Certification of Ferrellgas, L.P. pursuant to 18 U.S.C. Section 1350.
*  32.4	Certification of Ferrellgas Finance Corp. pursuant to 18 U.S.C. Section 1350.
*  101.INS	XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).
*  101.SCH	XBRL Taxonomy Extension Schema Document.
*  101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
*  101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
*  101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
*   101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.
* 104	The cover page from Ferrellgas Partners, L.P.’s Quarterly Report on Form 10-Q for the quarter ended April 30, 2024, formatted in Inline XBRL and contained in Exhibit 101.

* Filed herewith

The agreements and other documents filed as exhibits to this report are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not rely on them for that purpose. In particular, any representations and warranties made by us in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time.

67

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned, thereunto duly authorized.

		FERRELLGAS PARTNERS, L.P.
		By Ferrellgas, Inc., its general partner
Date:	June 18, 2024	By	/s/ Tamria A. Zertuche
			Tamria A. Zertuche
			Chief Executive Officer and President
		By	/s/ Michael E. Cole
			Michael E. Cole
			Chief Financial Officer (Principal Financial and Accounting Officer)
		FERRELLGAS PARTNERS FINANCE CORP.
Date:	June 18, 2024	By	/s/ Tamria A. Zertuche
			Tamria A. Zertuche
			Chief Executive Officer and President
		By	/s/ Michael E. Cole
			Michael E. Cole
			Chief Financial Officer and Sole Director (Principal Financial and Accounting Officer)
		FERRELLGAS, L.P.
		By Ferrellgas, Inc., its general partner
Date:	June 18, 2024	By	/s/ Tamria A. Zertuche
			Tamria A. Zertuche
			Chief Executive Officer and President
		By	/s/ Michael E. Cole
			Michael E. Cole
			Chief Financial Officer (Principal Financial and Accounting Officer)
		FERRELLGAS FINANCE CORP.
Date:	June 18, 2024	By	/s/ Tamria A. Zertuche
			Tamria A. Zertuche
			Chief Executive Officer and President
		By	/s/ Michael E. Cole
			Michael E. Cole
			Chief Financial Officer and Sole Director (Principal Financial and Accounting Officer)

68

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

FERRELLGAS PARTNERS, L.P.

I, Tamria A. Zertuche, certify that:

1.    I have reviewed this report on Form 10-Q for the period ended April 30, 2024 of Ferrellgas Partners, L.P. (the “Registrant”);

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4.    The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a.     Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.    Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.    Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5.    The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a.    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b.    Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: June 18, 2024	/s/ Tamria A. Zertuche
	Tamria A. Zertuche
	Chief Executive Officer and President of Ferrellgas, Inc., general partner of the Registrant

CERTIFICATIONS

FERRELLGAS PARTNERS, L.P.

I, Michael E. Cole, certify that:

1.    I have reviewed this report on Form 10-Q for the period ended April 30, 2024 of Ferrellgas Partners, L.P. (the “Registrant”);

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4.    The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a.    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.    Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.    Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5.    The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a.    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b.    Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: June 18, 2024	/s/ Michael E. Cole
	Michael E. Cole
	Chief Financial Officer (Principal Financial and Accounting Officer) of Ferrellgas, Inc., general partner of the Registrant

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

FERRELLGAS PARTNERS FINANCE CORP.

I, Tamria A. Zertuche, certify that:

1.    I have reviewed this report on Form 10-Q for the period ended April 30, 2024 of Ferrellgas Partners Finance Corp. (the “Registrant”);

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4.    The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a.    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.    Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.    Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5.    The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a.     All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b.    Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: June 18, 2024	/s/ Tamria A. Zertuche
	Tamria A. Zertuche
	Chief Executive Officer and President

CERTIFICATIONS

FERRELLGAS PARTNERS FINANCE CORP.

I, Michael E. Cole, certify that:

1.    I have reviewed this report on Form 10-Q for the period ended April 30, 2024 of Ferrellgas Partners Finance Corp. (the “Registrant”);

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4.    The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a.    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.    Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.    Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5.    The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a.    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b.    Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: June 18, 2024	/s/ Michael E. Cole
	Michael E. Cole
	Chief Financial Officer and Sole Director (Principal Financial and Accounting Officer)

EX-31.3

EXHIBIT 31.3

CERTIFICATIONS

FERRELLGAS, L.P.

I, Tamria A. Zertuche, certify that:

1.    I have reviewed this report on Form 10-Q for the period ended April 30, 2024 of Ferrellgas, L.P. (the “Registrant”);

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4.    The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a.    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.    Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.    Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5.    The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a.     All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b.    Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: June 18, 2024	/s/ Tamria A. Zertuche
	Tamria A. Zertuche
	Chief Executive Officer and President of Ferrellgas, Inc., the Registrant’s general partner

CERTIFICATIONS

FERRELLGAS, L.P.

I, Michael E. Cole, certify that:

1.    I have reviewed this report on Form 10-Q for the period ended April 30, 2024 of Ferrellgas, L.P. (the “Registrant”);

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4.    The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a.    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.    Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.    Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5.    The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a.     All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b.    Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: June 18, 2024	/s/ Michael E. Cole
	Michael E. Cole
	Chief Financial Officer (Principal Financial and Accounting Officer) of Ferrellgas, Inc., the Registrant’s general partner

EX-31.4

EXHIBIT 31.4

CERTIFICATIONS

FERRELLGAS FINANCE CORP.

I, Tamria A. Zertuche, certify that:

1.    I have reviewed this report on Form 10-Q for the period ended April 30, 2024 of Ferrellgas Finance Corp. (the “Registrant”);

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4.    The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a.    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.    Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.    Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5.    The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a.     All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b.    Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: June 18, 2024	/s/ Tamria A. Zertuche
	Tamria A. Zertuche
	Chief Executive Officer and President

CERTIFICATIONS

FERRELLGAS FINANCE CORP.

I, Michael E. Cole, certify that:

1.    I have reviewed this report on Form 10-Q for the period ended April 30, 2024 of Ferrellgas Finance Corp. (the “Registrant”);

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4.    The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a.    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.    Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.    Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5)   The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a.     All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b.    Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

arch
Date: June 18, 2024	/s/ Michael E. Cole
	Michael E. Cole
	Chief Financial Officer and Sole Director (Principal Financial and Accounting Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. Section 1350,

AS ADOPTED PURSUANT TO

SECTION 906

OF THE

SARBANES-OXLEY ACT OF 2002

In connection with the accompanying Quarterly Report on Form 10-Q of Ferrellgas Partners, L.P. (the “Registrant”) for the period ended April 30, 2024, as filed with the Securities and Exchange Commission (the “SEC”) on the date hereof (the “Report”), the undersigned, in the capacity and on the date indicated below, hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.    The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”); and

2.    The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

The foregoing certification is made solely for purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and is subject to the “knowledge” and “willfulness” qualifications contained in 18 U.S.C. Section 1350(c).

This certification is being furnished to the SEC and is not to be deemed “filed” with the SEC for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of Section 18. In addition, this certification is not to be deemed incorporated by reference into any registration statement of the Registrant or other filing of the Registrant made pursuant to the Exchange Act or Securities Act of 1933, as amended, unless specifically identified as being incorporated therein by reference.

Dated: June 18, 2024	/s/ Tamria A. Zertuche
	Tamria A. Zertuche
	Chief Executive Officer and President of Ferrellgas, Inc., general partner of the Registrant
Dated: June 18, 2024	/s/ Michael E. Cole
	Michael E. Cole
	Chief Financial Officer (Principal Financial and Accounting Officer) of Ferrellgas, Inc., general partner of the Registrant

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. Section 1350,

AS ADOPTED PURSUANT TO

SECTION 906

OF THE

SARBANES-OXLEY ACT OF 2002

In connection with the accompanying Quarterly Report on Form 10-Q of Ferrellgas Partners Finance Corp. (the “Registrant”) for the period ended April 30, 2024, as filed with the Securities and Exchange Commission (the “SEC”) on the date hereof (the “Report”), the undersigned, in the capacity and on the date indicated below, hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.    The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”); and

2.    The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

The foregoing certification is made solely for purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and is subject to the “knowledge” and “willfulness” qualifications contained in 18 U.S.C. Section 1350(c).

This certification is being furnished to the SEC and is not to be deemed “filed” with the SEC for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of Section 18. In addition, this certification is not to be deemed incorporated by reference into any registration statement of the Registrant or other filing of the Registrant made pursuant to the Exchange Act or Securities Act of 1933, as amended, unless specifically identified as being incorporated therein by reference.

Dated: June 18, 2024	/s/ Tamria A. Zertuche
	Tamria A. Zertuche
	Chief Executive Officer and President
Dated: June 18, 2024	/s/ Michael E. Cole
	Michael E. Cole
	Chief Financial Officer and Sole Director (Principal Financial and Accounting Officer)

EX-32.3

EXHIBIT 32.3

CERTIFICATION PURSUANT TO

18 U.S.C. Section 1350,

AS ADOPTED PURSUANT TO

SECTION 906

OF THE

SARBANES-OXLEY ACT OF 2002

In connection with the accompanying Quarterly Report on Form 10-Q of Ferrellgas, L.P. (the “Registrant”) for the period ended April 30, 2024, as filed with the Securities and Exchange Commission (the “SEC”) on the date hereof (the “Report”), the undersigned, in the capacity and on the date indicated below, hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.    The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”); and

2.    The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

The foregoing certification is made solely for purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and is subject to the “knowledge” and “willfulness” qualifications contained in 18 U.S.C. Section 1350(c).

This certification is being furnished to the SEC and is not to be deemed “filed” with the SEC for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of Section 18. In addition, this certification is not to be deemed incorporated by reference into any registration statement of the Registrant or other filing of the Registrant made pursuant to the Exchange Act or Securities Act of 1933, as amended, unless specifically identified as being incorporated therein by reference.

Dated: June 18, 2024	/s/ Tamria A. Zertuche
	Tamria A. Zertuche
	Chief Executive Officer and President of Ferrellgas, Inc., the Registrant’s general partner
Dated: June 18, 2024	/s/ Michael E. Cole
	Michael E. Cole
	Chief Financial Officer (Principal Financial and Accounting Officer) of Ferrellgas, Inc., the Registrant’s general partner

EX-32.4

EXHIBIT 32.4

CERTIFICATION PURSUANT TO

18 U.S.C. Section 1350,

AS ADOPTED PURSUANT TO

SECTION 906

OF THE

SARBANES-OXLEY ACT OF 2002

In connection with the accompanying Quarterly Report on Form 10-Q of Ferrellgas Finance Corp. (the “Registrant”) for the period ended April 30, 2024, as filed with the Securities and Exchange Commission (the “SEC”) on the date hereof (the “Report”), the undersigned, in the capacity and on the date indicated below, hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.    The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”); and

2.    The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

The foregoing certification is made solely for purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and is subject to the “knowledge” and “willfulness” qualifications contained in 18 U.S.C. Section 1350(c).

This certification is being furnished to the SEC and is not to be deemed “filed” with the SEC for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of Section 18. In addition, this certification is not to be deemed incorporated by reference into any registration statement of the Registrant or other filing of the Registrant made pursuant to the Exchange Act or Securities Act of 1933, as amended, unless specifically identified as being incorporated therein by reference.

Dated: June 18, 2024	/s/ Tamria A. Zertuche
	Tamria A. Zertuche
	Chief Executive Officer and President
Dated: June 18, 2024	/s/ Michael E. Cole
	Michael E. Cole
	Chief Financial Officer and Sole Director (Principal Financial and Accounting Officer)

XML

Document And Entity Information - shares	9 Months Ended
	Apr. 30, 2024	May 31, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 30, 2024
Current Fiscal Year End Date	--07-31
Document Transition Report	false
Entity File Number	001-11331
Entity Registrant Name	Ferrellgas Partners L P
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	43-1698480
Entity Address, Address Line One	One Liberty Plaza
Entity Address, City or Town	Liberty,
Entity Address, State or Province	MO
Entity Address, Postal Zip Code	64068
City Area Code	816
Local Phone Number	792-1600
Title of 12(b) Security	N/A
No Trading Symbol Flag	true
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000922358
Amendment Flag	false
Class A Limited Partner Units
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		4,857,605
Class B Limited Partner Units
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		1,300,000
Ferrellgas, L.P.
Document Information [Line Items]
Document Type	10-Q
Document Period End Date	Apr. 30, 2024
Current Fiscal Year End Date	--07-31
Entity File Number	000-50182
Entity Registrant Name	Ferrellgas L P
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	43-1698481
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000922359
Amendment Flag	false
Ferrellgas Partners Finance Corp
Document Information [Line Items]
Document Type	10-Q
Document Period End Date	Apr. 30, 2024
Current Fiscal Year End Date	--07-31
Entity File Number	333-06693-02
Entity Registrant Name	Ferrellgas Partners Finance Corp
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	43-1742520
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	true
Entity Common Stock, Shares Outstanding		1,000
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001012493
Amendment Flag	false
Ferrellgas Finance Corp
Document Information [Line Items]
Document Type	10-Q
Document Period End Date	Apr. 30, 2024
Current Fiscal Year End Date	--07-31
Entity File Number	000-50183
Entity Registrant Name	Ferrellgas Finance Corp
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	14-1866671
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	true
Entity Common Stock, Shares Outstanding		1,000
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000922360
Amendment Flag	false

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Apr. 30, 2024	Jul. 31, 2023
Current assets:
Cash and cash equivalents	$ 73,645,000	$ 137,347,000
Accounts and notes receivable, net	178,163,000	159,379,000
Inventories	91,275,000	98,104,000
Price risk management asset	5,398,000	11,966,000
Prepaid expenses and other current assets	28,270,000	29,135,000
Total current assets	376,751,000	435,931,000
Property, plant and equipment, net	622,524,000	615,174,000
Goodwill, net	257,006,000	257,006,000
Intangible assets (net of accumulated amortization of $354,139 and $349,614 at January 31, 2024 and July 31, 2023, respectively)	114,531,000	106,615,000
Operating lease right-of-use assets	56,040,000	57,839,000
Other assets, net	60,840,000	58,838,000
Total assets	1,487,692,000	1,531,403,000
Current liabilities:
Accounts payable	47,742,000	35,115,000
Current portion of long-term debt	2,620,000	2,597,000
Current operating lease liabilities	24,098,000	24,600,000
Other current liabilities	153,945,000	197,030,000
Total current liabilities	228,405,000	259,342,000
Long-term debt	1,459,856,000	1,456,184,000
Operating lease liabilities	33,387,000	34,235,000
Other liabilities	28,741,000	29,084,000
Contingencies and commitments (Note L)
Mezzanine equity:
Senior preferred units, net of issue discount and offering costs (700,000 units outstanding at April 30, 2024 and July 31, 2023)	651,349,000	651,349,000
Equity (Deficit):
General partner unitholder	(69,716,000)	(70,566,000)
Accumulated other comprehensive income	1,018,000	1,059,000
Total Ferrellgas Partners, L.P. deficit	(906,707,000)	(891,598,000)
Noncontrolling interest	(7,339,000)	(7,193,000)
Total deficit	(914,046,000)	(898,791,000)
STOCKHOLDER'S EQUITY (DEFICIT)
Total liabilities, mezzanine and deficit	1,487,692,000	1,531,403,000
Class A Limited Partner Units
Equity (Deficit):
Limited partner unitholders	(1,221,021,000)	(1,205,103,000)
Class B Limited Partner Units
Equity (Deficit):
Limited partner unitholders	383,012,000	383,012,000
Ferrellgas, L.P.
Current assets:
Cash and cash equivalents	73,221,000	137,245,000
Accounts and notes receivable, net	178,163,000	159,379,000
Inventories	91,275,000	98,104,000
Price risk management asset	5,398,000	11,966,000
Prepaid expenses and other current assets	28,250,000	29,113,000
Total current assets	376,307,000	435,807,000
Property, plant and equipment, net	622,524,000	615,174,000
Goodwill, net	257,006,000	257,006,000
Intangible assets (net of accumulated amortization of $354,139 and $349,614 at January 31, 2024 and July 31, 2023, respectively)	114,531,000	106,615,000
Operating lease right-of-use assets	56,040,000	57,839,000
Other assets, net	60,840,000	58,838,000
Total assets	1,487,248,000	1,531,279,000
Current liabilities:
Accounts payable	47,742,000	35,115,000
Current portion of long-term debt	2,620,000	2,597,000
Current operating lease liabilities	24,098,000	24,600,000
Other current liabilities	153,824,000	196,966,000
Total current liabilities	228,284,000	259,278,000
Long-term debt	1,459,856,000	1,456,184,000
Operating lease liabilities	33,387,000	34,235,000
Other liabilities	28,741,000	29,084,000
Contingencies and commitments (Note L)
Mezzanine equity:
Senior preferred units, net of issue discount and offering costs (700,000 units outstanding at April 30, 2024 and July 31, 2023)	651,349,000	651,349,000
Equity (Deficit):
Limited partner unitholders	(908,048,000)	(892,717,000)
General partner unitholder	(7,363,000)	(7,217,000)
Accumulated other comprehensive income	1,042,000	1,083,000
Total deficit	(914,369,000)	(898,851,000)
STOCKHOLDER'S EQUITY (DEFICIT)
Total liabilities, mezzanine and deficit	1,487,248,000	1,531,279,000
Ferrellgas Partners Finance Corp
Current assets:
Cash and cash equivalents	0	0
Total assets	0	0
Current liabilities:
Other current liabilities	0	0
Total current liabilities	0	0
Contingencies and commitments (Note L)
STOCKHOLDER'S EQUITY (DEFICIT)
Common stock, $1.00 par value; 2,000 shares authorized; 1,000 shares issued and outstanding	1,000	1,000
Additional paid in capital	42,485	42,207
Accumulated deficit	(43,485)	(43,207)
Total stockholder's equity (deficit)	0	0
Total liabilities, mezzanine and deficit	0	0
Ferrellgas Finance Corp
Current assets:
Cash and cash equivalents	0	0
Total assets	0	0
Current liabilities:
Other current liabilities	0	0
Total current liabilities	0	0
Contingencies and commitments (Note L)
STOCKHOLDER'S EQUITY (DEFICIT)
Common stock, $1.00 par value; 2,000 shares authorized; 1,000 shares issued and outstanding	1,000	1,000
Additional paid in capital	105,241	104,564
Accumulated deficit	(106,241)	(105,564)
Total stockholder's equity (deficit)	0	0
Total liabilities, mezzanine and deficit	$ 0	$ 0

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Apr. 30, 2024	Jul. 31, 2023
Restricted cash	$ 10,783	$ 11,126
Amortizable intangible assets, accumulated amortization	$ 356,519	$ 349,614
Senior preferred units, units outstanding	700,000	700,000
General partner unitholder, units outstanding	49,496	49,496
Class A Limited Partner Units
Limited partner unitholders, units outstanding	4,857,605	4,857,605
Class B Limited Partner Units
Limited partner unitholders, units outstanding	1,300,000	1,300,000
Ferrellgas, L.P.
Restricted cash	$ 10,783	$ 11,126
Amortizable intangible assets, accumulated amortization	$ 356,519	$ 349,614
Senior preferred units, units outstanding	700,000	700,000
Ferrellgas Partners Finance Corp
Common stock, par value	$ 1.00	$ 1.00
Common stock, shares authorized	2,000	2,000
Common stock, shares issued	1,000	1,000
Common stock, shares outstanding	1,000	1,000
Ferrellgas Finance Corp
Common stock, par value	$ 1.00	$ 1.00
Common stock, shares authorized	2,000	2,000
Common stock, shares issued	1,000	1,000
Common stock, shares outstanding	1,000	1,000

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Apr. 30, 2024	Apr. 30, 2023	Apr. 30, 2024	Apr. 30, 2023
Revenues:
Total revenues	$ 515,774,000	$ 587,347,000	$ 1,496,664,000	$ 1,684,579,000
Costs and expenses:
Operating expense - personnel, vehicle, plant and other	150,629,000	147,477,000	454,913,000	434,572,000
Operating expense - equipment lease expense	5,275,000	5,861,000	15,994,000	17,471,000
Depreciation and amortization expense	25,340,000	23,753,000	74,179,000	69,453,000
General and administrative expense	13,305,000	16,213,000	43,321,000	54,161,000
Non-cash employee stock ownership plan compensation charge	880,000	767,000	2,500,000	2,212,000
Loss on asset sales and disposals	130,000	958,000	1,847,000	2,928,000
Operating income	76,739,000	96,819,000	202,245,000	238,691,000
Interest expense	(24,685,000)	(24,297,000)	(73,205,000)	(72,483,000)
Other income, net	1,324,000	852,000	3,509,000	1,865,000
Earnings before income taxes	53,378,000	73,374,000	132,549,000	168,073,000
Income tax expense	240,000	367,000	711,000	888,000
Net earnings (loss)	53,138,000	73,007,000	131,838,000	167,185,000
Net earnings attributable to noncontrolling interest	372,000	580,000	839,000	1,203,000
Net earnings attributable to Ferrellgas Partners, L.P.	52,766,000	72,427,000	130,999,000	165,982,000
Class A unitholders' interest in net (loss) earnings (Note M)	$ (63,802,000)	$ 6,115,000	$ (18,853,000)	$ 16,608,000
Class A Limited Partner Units
Costs and expenses:
Basic and diluted net earnings (loss) per Class A Unit (Note M)	$ (13.13)	$ 1.26	$ (3.88)	$ 3.42
Propane and other gas liquids sales
Revenues:
Total revenues	$ 490,057,000	$ 559,047,000	$ 1,413,200,000	$ 1,596,777,000
Costs and expenses:
Cost of sales	240,281,000	291,826,000	690,299,000	852,399,000
Other
Revenues:
Total revenues	25,717,000	28,300,000	83,464,000	87,802,000
Costs and expenses:
Cost of sales	3,195,000	3,673,000	11,366,000	12,692,000
Ferrellgas, L.P.
Revenues:
Total revenues	515,774,000	587,347,000	1,496,664,000	1,684,579,000
Costs and expenses:
Operating expense - personnel, vehicle, plant and other	150,629,000	147,477,000	454,913,000	434,572,000
Operating expense - equipment lease expense	5,275,000	5,861,000	15,994,000	17,471,000
Depreciation and amortization expense	25,340,000	23,753,000	74,179,000	69,453,000
General and administrative expense	13,292,000	16,129,000	43,313,000	54,074,000
Non-cash employee stock ownership plan compensation charge	880,000	767,000	2,500,000	2,212,000
Loss on asset sales and disposals	130,000	958,000	1,847,000	2,928,000
Operating income	76,752,000	96,903,000	202,253,000	238,778,000
Interest expense	(24,685,000)	(24,297,000)	(73,205,000)	(72,483,000)
Other income, net	1,002,000	723,000	3,190,000	1,732,000
Earnings before income taxes	53,069,000	73,329,000	132,238,000	168,027,000
Income tax expense	206,000	362,000	659,000	883,000
Net earnings (loss)	52,863,000	72,967,000	131,579,000	167,144,000
Ferrellgas, L.P. | Propane and other gas liquids sales
Revenues:
Total revenues	490,057,000	559,047,000	1,413,200,000	1,596,777,000
Costs and expenses:
Cost of sales	240,281,000	291,826,000	690,299,000	852,399,000
Ferrellgas, L.P. | Other
Revenues:
Total revenues	25,717,000	28,300,000	83,464,000	87,802,000
Costs and expenses:
Cost of sales	3,195,000	3,673,000	11,366,000	12,692,000
Ferrellgas Partners Finance Corp
Costs and expenses:
General and administrative expense	225	225	278	657
Net earnings (loss)	(225)	(225)	(278)	(657)
Ferrellgas Finance Corp
Costs and expenses:
General and administrative expense	624	225	677	278
Net earnings (loss)	$ (624)	$ (225)	$ (677)	$ (278)

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2024	Apr. 30, 2023	Apr. 30, 2024	Apr. 30, 2023
Comprehensive income (loss):
Net earnings (loss)	$ 53,138	$ 73,007	$ 131,838	$ 167,185
Other comprehensive income (loss):
Change in value of risk management derivatives	(1,180)	(10,621)	(116)	(53,044)
Reclassification of (gains) losses on derivatives to earnings, net	(5,179)	13,450	75	7,378
Other comprehensive income (loss)	(6,359)	2,829	(41)	(45,666)
Comprehensive income	46,779	75,836	131,797	121,519
Comprehensive income attributable to noncontrolling interest	(308)	(609)	(839)	(742)
Comprehensive income	46,471	75,227	130,958	120,777
Ferrellgas, L.P.
Comprehensive income (loss):
Net earnings (loss)	52,863	72,967	131,579	167,144
Other comprehensive income (loss):
Change in value of risk management derivatives	(1,180)	(10,621)	(116)	(53,044)
Reclassification of (gains) losses on derivatives to earnings, net	(5,179)	13,450	75	7,378
Other comprehensive income (loss)	(6,359)	2,829	(41)	(45,666)
Comprehensive income	$ 46,504	$ 75,796	$ 131,538	$ 121,478

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CONDENSED CONSOLIDATED STATEMENT OF EQUITY (DEFICIT) - USD ($)	Ferrellgas, L.P. Limited Partner Unitholders	Ferrellgas, L.P. General Partner	Ferrellgas, L.P. Accumulated Other Comprehensive Income (Loss)	Ferrellgas, L.P.	Ferrellgas Partners Finance Corp	Limited Partner Unitholders Class A Limited Partner Units	Limited Partner Unitholders Class B Limited Partner Units	Limited Partner Unitholders	General Partner	Accumulated Other Comprehensive Income (Loss)	Parent	Non-Controlling Interest	Total
Partners' capital balance (in shares) at Jul. 31, 2022						4,857,600	1,300,000.0		49,500
Partners' capital balance, beginning at Jul. 31, 2022	$ (918,146,000)	$ (7,987,000)	$ 38,307,000	$ (887,826,000)		$ (1,229,823,000)	$ 383,012,000		$ (71,320,000)	$ 37,907,000	$ (880,224,000)	$ (7,587,000)	$ (887,811,000)
Increase (Decrease) in Partners' Capital [Roll Forward]
Contributions in connection with non-cash ESOP compensation charges	716,000	7,000		723,000		709,000			7,000		716,000	7,000	723,000
Net earnings allocated to preferred units	(16,251,000)			(16,251,000)		(16,088,000)			(163,000)		(16,251,000)		(16,251,000)
Net earnings (loss)	(4,544,000)	(212,000)		(4,756,000)		(4,500,000)			(45,000)		(4,545,000)	(212,000)	(4,757,000)
Other comprehensive income			(48,973,000)	(48,973,000)						(48,478,000)	(48,478,000)	(495,000)	(48,973,000)
Partners' capital balance, ending at Oct. 31, 2022	(938,225,000)	(8,192,000)	(10,666,000)	(957,083,000)		$ (1,249,702,000)	$ 383,012,000		$ (71,521,000)	(10,571,000)	(948,782,000)	(8,287,000)	(957,069,000)
Partners' capital balance (in shares) at Oct. 31, 2022						4,857,600	1,300,000.0		49,500
Partners' capital balance (in shares) at Jul. 31, 2022						4,857,600	1,300,000.0		49,500
Partners' capital balance, beginning at Jul. 31, 2022	(918,146,000)	(7,987,000)	38,307,000	(887,826,000)		$ (1,229,823,000)	$ 383,012,000		$ (71,320,000)	37,907,000	(880,224,000)	(7,587,000)	(887,811,000)
Increase (Decrease) in Partners' Capital [Roll Forward]
Contributions in connection with non-cash ESOP compensation charges		22,000.0
Distributions								$ (49,900,000)
Net earnings (loss)				167,144,000	$ (657)								167,185,000
Other comprehensive income				(45,666,000)									(45,666,000)
Partners' capital balance, ending at Apr. 30, 2023	(848,078,000)	(6,762,000)	(7,359,000)	(862,199,000)		$ (1,160,913,000)	$ 383,012,000		$ (70,119,000)	(7,298,000)	(855,318,000)	(6,823,000)	(862,141,000)
Partners' capital balance (in shares) at Apr. 30, 2023						4,857,600	1,300,000.0		49,500
Partners' capital balance (in shares) at Oct. 31, 2022						4,857,600	1,300,000.0		49,500
Partners' capital balance, beginning at Oct. 31, 2022	(938,225,000)	(8,192,000)	(10,666,000)	(957,083,000)		$ (1,249,702,000)	$ 383,012,000		$ (71,521,000)	(10,571,000)	(948,782,000)	(8,287,000)	(957,069,000)
Increase (Decrease) in Partners' Capital [Roll Forward]
Contributions in connection with non-cash ESOP compensation charges	714,000	8,000		722,000		707,000			7,000		714,000	8,000	722,000
Net earnings allocated to preferred units	(16,222,000)			(16,222,000)		(16,060,000)			(162,000)		(16,222,000)		(16,222,000)
Net earnings (loss)	98,098,000	835,000		98,933,000		97,119,000			981,000		98,100,000	835,000	98,935,000
Other comprehensive income			478,000	478,000						473,000	473,000	5,000	478,000
Partners' capital balance, ending at Jan. 31, 2023	(855,635,000)	(7,349,000)	(10,188,000)	(873,172,000)		$ (1,167,936,000)	$ 383,012,000		$ (70,695,000)	(10,098,000)	(865,717,000)	(7,439,000)	(873,156,000)
Partners' capital balance (in shares) at Jan. 31, 2023						4,857,600	1,300,000.0		49,500
Increase (Decrease) in Partners' Capital [Roll Forward]
Contributions in connection with non-cash ESOP compensation charges	760,000	7,000		767,000		$ 752,000			$ 8,000		760,000	7,000	767,000
Distributions	(50,000,000)			(50,000,000)				(49,900,000)
Distributions to Ferrellgas, Inc.							$ (49,998,000)				(49,998,000)		(49,998,000)
Net earnings allocated to Class B Units						(49,998,000)	49,998,000
Net earnings allocated to preferred units	(15,590,000)			(15,590,000)		(15,434,000)			(156,000)		(15,590,000)		(15,590,000)
Net earnings (loss)	72,387,000	580,000		72,967,000	(225)	71,703,000			724,000		72,427,000	580,000	73,007,000
Other comprehensive income			2,829,000	2,829,000						2,800,000	2,800,000	29,000	2,829,000
Partners' capital balance, ending at Apr. 30, 2023	(848,078,000)	(6,762,000)	(7,359,000)	(862,199,000)		$ (1,160,913,000)	$ 383,012,000		$ (70,119,000)	(7,298,000)	(855,318,000)	(6,823,000)	(862,141,000)
Partners' capital balance (in shares) at Apr. 30, 2023						4,857,600	1,300,000.0		49,500
Partners' capital balance (in shares) at Jul. 31, 2023						4,857,600	1,300,000.0		49,500
Partners' capital balance, beginning at Jul. 31, 2023	(892,717,000)	(7,217,000)	1,083,000	(898,851,000)		$ (1,205,103,000)	$ 383,012,000		$ (70,566,000)	1,059,000	(891,598,000)	(7,193,000)	(898,791,000)
Increase (Decrease) in Partners' Capital [Roll Forward]
Contributions in connection with non-cash ESOP compensation charges	713,000	7,000		720,000		706,000			7,000		713,000	7,000	720,000
Net earnings allocated to preferred units	(16,251,000)			(16,251,000)		(16,088,000)			(163,000)		(16,251,000)		(16,251,000)
Net earnings (loss)	(17,538,000)	(345,000)		(17,883,000)		(17,381,000)			(175,000)		(17,556,000)	(345,000)	(17,901,000)
Other comprehensive income			(10,288,000)	(10,288,000)						(10,184,000)	(10,184,000)	(104,000)	(10,288,000)
Partners' capital balance, ending at Oct. 31, 2023	(925,793,000)	(7,555,000)	(9,205,000)	(942,553,000)		$ (1,237,866,000)	$ 383,012,000		$ (70,897,000)	(9,125,000)	(934,876,000)	(7,635,000)	(942,511,000)
Partners' capital balance (in shares) at Oct. 31, 2023						4,857,600	1,300,000.0		49,500
Partners' capital balance (in shares) at Jul. 31, 2023						4,857,600	1,300,000.0		49,500
Partners' capital balance, beginning at Jul. 31, 2023	(892,717,000)	(7,217,000)	1,083,000	(898,851,000)		$ (1,205,103,000)	$ 383,012,000		$ (70,566,000)	1,059,000	(891,598,000)	(7,193,000)	(898,791,000)
Increase (Decrease) in Partners' Capital [Roll Forward]
Contributions in connection with non-cash ESOP compensation charges		25,000.0
Distributions								$ (250,000,000.0)
Net earnings (loss)				131,579,000	(278)								131,838,000
Other comprehensive income				(41,000)									(41,000)
Partners' capital balance, ending at Apr. 30, 2024	(908,048,000)	(7,363,000)	1,042,000	(914,369,000)		$ (1,221,021,000)	$ 383,012,000		$ (69,716,000)	1,018,000	(906,707,000)	(7,339,000)	(914,046,000)
Partners' capital balance (in shares) at Apr. 30, 2024						4,857,600	1,300,000.0		49,500
Partners' capital balance (in shares) at Oct. 31, 2023						4,857,600	1,300,000.0		49,500
Partners' capital balance, beginning at Oct. 31, 2023	(925,793,000)	(7,555,000)	(9,205,000)	(942,553,000)		$ (1,237,866,000)	$ 383,012,000		$ (70,897,000)	(9,125,000)	(934,876,000)	(7,635,000)	(942,511,000)
Increase (Decrease) in Partners' Capital [Roll Forward]
Contributions in connection with non-cash ESOP compensation charges	891,000	9,000		900,000		882,000			9,000		891,000	9,000	900,000
Net earnings allocated to preferred units	(16,250,000)			(16,250,000)		(16,088,000)			(162,000)		(16,250,000)		(16,250,000)
Net earnings (loss)	95,787,000	812,000		96,599,000		94,831,000			958,000		95,789,000	812,000	96,601,000
Other comprehensive income			16,606,000	16,606,000						16,438,000	16,438,000	168,000	16,606,000
Partners' capital balance, ending at Jan. 31, 2024	(845,365,000)	(6,734,000)	7,401,000	(844,698,000)		$ (1,158,241,000)	$ 383,012,000		$ (70,092,000)	7,313,000	(838,008,000)	(6,646,000)	(844,654,000)
Partners' capital balance (in shares) at Jan. 31, 2024						4,857,600	1,300,000.0		49,500
Increase (Decrease) in Partners' Capital [Roll Forward]
Contributions in connection with non-cash ESOP compensation charges	871,000	9,000		880,000		$ 862,000			$ 9,000		871,000	9,000	880,000
Distributions	(100,000,000)	(1,010,000)		(101,010,000)								(1,010,000)	(1,010,000)
Distributions to Ferrellgas, Inc.							$ (99,996,000)				(99,996,000)		(99,996,000)
Net earnings allocated to Class B Units						(99,996,000)	99,996,000
Net earnings allocated to preferred units	(16,045,000)			(16,045,000)		(15,885,000)			(160,000)		(16,045,000)		(16,045,000)
Net earnings (loss)	52,491,000	372,000		52,863,000	$ (225)	52,239,000			527,000		52,766,000	372,000	53,138,000
Other comprehensive income			(6,359,000)	(6,359,000)						(6,295,000)	(6,295,000)	(64,000)	(6,359,000)
Partners' capital balance, ending at Apr. 30, 2024	$ (908,048,000)	$ (7,363,000)	$ 1,042,000	$ (914,369,000)		$ (1,221,021,000)	$ 383,012,000		$ (69,716,000)	$ 1,018,000	$ (906,707,000)	$ (7,339,000)	$ (914,046,000)
Partners' capital balance (in shares) at Apr. 30, 2024						4,857,600	1,300,000.0		49,500

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Apr. 30, 2024	Apr. 30, 2023
Cash flows from operating activities:
Net earnings (loss)	$ 131,838,000	$ 167,185,000
Reconciliation of net earnings to net cash provided by operating activities:
Depreciation and amortization expense	74,179,000	69,453,000
Non-cash employee stock ownership plan compensation charge	2,500,000	2,212,000
Loss on asset sales and disposals	1,847,000	2,928,000
Provision for expected credit losses	1,518,000	909,000
Other	5,719,000	6,050,000
Changes in operating assets and liabilities, net of effects from business acquisitions:
Accounts and notes receivable	(20,302,000)	(49,556,000)
Inventories	6,829,000	17,374,000
Prepaid expenses and other current assets	865,000	(4,560,000)
Accounts payable	12,350,000	(8,126,000)
Accrued interest expense	(21,475,000)	(22,366,000)
Other current liabilities	(18,632,000)	(36,063,000)
Other assets and liabilities	(1,295,000)	(2,277,000)
Net cash provided by operating activities	175,941,000	143,163,000
Cash flows from investing activities:
Business acquisitions, net of cash acquired	(16,499,000)	(24,079,000)
Capital expenditures	(69,490,000)	(70,246,000)
Proceeds from sale of assets	1,969,000	2,079,000
Net cash used in investing activities	(84,020,000)	(92,246,000)
Cash flows from financing activities:
Distributions to Ferrellgas, Inc.	(1,010,000)
Preferred unit distributions	(49,141,000)	(48,773,000)
Distributions to Class B unitholders	(99,996,000)	(49,998,000)
Payments on long-term debt	(2,167,000)	(1,291,000)
Proceeds from short-term borrowings		45,000,000
Repayments of short-term borrowings		(45,000,000)
Cash payments for principal portion of lease liability	(4,459,000)	(4,935,000)
Other, net	1,150,000
Net cash used in financing activities	(155,623,000)	(104,997,000)
Net change in cash, cash equivalents and restricted cash	(63,702,000)	(54,080,000)
Cash, cash equivalents and restricted cash - beginning of period	137,347,000	158,737,000
Cash, cash equivalents and restricted cash - end of period	73,645,000	104,657,000
Ferrellgas, L.P.
Cash flows from operating activities:
Net earnings (loss)	131,579,000	167,144,000
Reconciliation of net earnings to net cash provided by operating activities:
Depreciation and amortization expense	74,179,000	69,453,000
Non-cash employee stock ownership plan compensation charge	2,500,000	2,212,000
Loss on asset sales and disposals	1,847,000	2,928,000
Provision for expected credit losses	1,518,000	909,000
Other	5,719,000	6,050,000
Changes in operating assets and liabilities, net of effects from business acquisitions:
Accounts and notes receivable	(20,302,000)	(49,556,000)
Inventories	6,829,000	17,374,000
Prepaid expenses and other current assets	863,000	(4,560,000)
Accounts payable	12,350,000	(8,126,000)
Accrued interest expense	(21,475,000)	(22,366,000)
Other current liabilities	(18,689,000)	(36,149,000)
Other assets and liabilities	(1,295,000)	(2,277,000)
Net cash provided by operating activities	175,623,000	143,036,000
Cash flows from investing activities:
Business acquisitions, net of cash acquired	(16,499,000)	(24,079,000)
Capital expenditures	(69,490,000)	(70,246,000)
Proceeds from sale of assets	1,969,000	2,079,000
Net cash used in investing activities	(84,020,000)	(92,246,000)
Cash flows from financing activities:
Distributions to Ferrellgas, Inc.	(1,010,000)
Preferred unit distributions	(49,141,000)	(48,773,000)
Distributions to Class B unitholders	(100,000,000)	(50,000,000)
Payments on long-term debt	(2,167,000)	(1,291,000)
Proceeds from short-term borrowings		45,000,000
Repayments of short-term borrowings		(45,000,000)
Cash paid for financing costs	(4,459,000)	(4,935,000)
Other, net	1,150,000
Net cash used in financing activities	(155,627,000)	(104,999,000)
Net change in cash, cash equivalents and restricted cash	(64,024,000)	(54,209,000)
Cash, cash equivalents and restricted cash - beginning of period	137,245,000	158,466,000
Cash, cash equivalents and restricted cash - end of period	73,221,000	104,257,000
Ferrellgas Partners Finance Corp
Cash flows from operating activities:
Net earnings (loss)	(278)	(657)
Changes in operating assets and liabilities, net of effects from business acquisitions:
Other current liabilities	0	(1,706)
Net cash provided by operating activities	(278)	(2,363)
Cash flows from financing activities:
Capital contribution	278	2,363
Net cash used in financing activities	278	2,363
Net change in cash, cash equivalents and restricted cash	0	0
Cash, cash equivalents and restricted cash - beginning of period	0	0
Cash, cash equivalents and restricted cash - end of period	0	0
Ferrellgas Finance Corp
Cash flows from operating activities:
Net earnings (loss)	(677)	(278)
Changes in operating assets and liabilities, net of effects from business acquisitions:
Net cash provided by operating activities	(677)	(278)
Cash flows from financing activities:
Capital contribution	677	278
Net cash used in financing activities	677	278
Net change in cash, cash equivalents and restricted cash	0	0
Cash, cash equivalents and restricted cash - beginning of period	0	0
Cash, cash equivalents and restricted cash - end of period	$ 0	$ 0

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Partnership organization and formation

9 Months Ended

Apr. 30, 2024

Subsidiary of Limited Liability Company or Limited Partnership [Line Items]

Partnership organization and formation

A.    Partnership organization and formation

Ferrellgas Partners

Ferrellgas Partners, L.P. (“Ferrellgas Partners”) was formed on April 19, 1994, and is a publicly traded limited partnership. Ferrellgas Partners is a holding entity that conducts no operations and has two direct subsidiaries, Ferrellgas Partners Finance Corp. and Ferrellgas, L.P. (the “operating partnership”). Ferrellgas Partners was formed to acquire and hold a limited partner interest in the operating partnership. Ferrellgas Partners owns a 100% equity interest in Ferrellgas Partners Finance Corp., whose only business activity is to act as the co-issuer and co-obligor of any debt securities issued by Ferrellgas Partners. Our activities are primarily conducted through the operating partnership. Ferrellgas Partners and the operating partnership, collectively referred to as “Ferrellgas,” are both Delaware limited partnerships and are governed by their respective partnership agreements. These agreements contain specific provisions for the allocation of net earnings and loss to each of the partners for purposes of maintaining the partner capital accounts.

Ferrellgas, Inc. (the “general partner”), a Delaware corporation and a wholly-owned subsidiary of Ferrell Companies, is the sole general partner of Ferrellgas Partners and the operating partnership and, excluding the economic interests attributable to Ferrellgas Partners’ Class B Units and the operating partnership’s Preferred Units (as defined in Note F “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. Our general partner performs all management functions for us. Unless contractually provided for, creditors of the operating partnership have no recourse with regards to Ferrellgas Partners. As of April 30, 2024, Ferrell Companies Inc., a Kansas corporation (“Ferrell Companies”), the parent company of our general partner, beneficially owns approximately 23.4% of Ferrellgas Partners’ outstanding Class A Units. Ferrell Companies is owned 100% by an employee stock ownership trust.

The operating partnership

The operating partnership was formed on April 22, 1994, and accounts for substantially all of our consolidated assets, sales and operating earnings. The operating partnership is a limited partnership that owns and operates propane distribution and related assets. Ferrellgas Partners and the holders of the Preferred Units are the only limited partners of the operating partnership.

The operating partnership owns a 100% equity interest in Ferrellgas Finance Corp., whose only business activity is to act as the co-issuer and co-obligor of debt securities issued by the operating partnership.

The operating partnership is primarily engaged in the retail distribution of propane and related equipment sales. The propane distribution market is seasonal because propane is used primarily for heating in residential and commercial buildings. Ferrellgas serves residential, industrial/commercial, portable tank exchange, agricultural, wholesale and other customers in all 50 states, the District of Columbia, and Puerto Rico.

Basis of presentation

Due to seasonality, the results of operations for the nine months ended April 30, 2024 are not necessarily indicative of the results to be expected for the full fiscal year ending July 31, 2024.

The condensed consolidated financial statements of Ferrellgas reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the interim periods presented. All adjustments to the condensed consolidated financial statements were of a normal recurring nature. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with (i) the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and (ii) the consolidated financial statements and accompanying notes included in Ferrellgas’ Annual Report on Form 10-K for fiscal 2023.

Ferrellgas Partners Finance Corp

Subsidiary of Limited Liability Company or Limited Partnership [Line Items]

Partnership organization and formation

A.    Formation

Ferrellgas Partners Finance Corp. (“Partners Finance Corp.”), a Delaware corporation, was formed on March 28, 1996 and is a wholly-owned subsidiary of Ferrellgas Partners, L.P. (“Ferrellgas Partners”).

Ferrellgas Partners contributed $1,000 to Partners Finance Corp. on April 8, 1996 in exchange for 1,000 shares of common stock.

Partners Finance Corp. has nominal assets, does not conduct any operations and has no employees.

Ferrellgas Finance Corp

Subsidiary of Limited Liability Company or Limited Partnership [Line Items]

Partnership organization and formation

A.    Formation

Ferrellgas Finance Corp. (“Finance Corp.”), a Delaware corporation, was formed on January 16, 2003 and is a wholly-owned subsidiary of Ferrellgas, L.P. (the “operating partnership”).

The operating partnership contributed $1,000 to Finance Corp. on January 24, 2003 in exchange for 1,000 shares of common stock.

Finance Corp. has nominal assets, does not conduct any operations and has no employees.

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Summary of significant accounting policies

9 Months Ended

Apr. 30, 2024

Summary of significant accounting policies

Summary of significant accounting policies

B.    Summary of significant accounting policies

(1) Accounting estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from these estimates. Significant estimates impacting the condensed consolidated financial statements include accruals that have been established for contingent liabilities, pending claims and legal actions arising in the normal course of business, useful lives of property, plant and equipment, residual values of tanks, capitalization of customer tank installation costs, amortization methods of intangible assets, valuation methods used to value sales returns and allowances, allowance for expected credit losses, fair value of reporting unit, recoverability of long-lived assets, assumptions used to value business combinations, determination of incremental borrowing rate used to measure right-of-use asset (“ROU asset”) and lease liability, and fair values of derivative contracts.

(2) Goodwill, net

Goodwill is tested for impairment annually during the second fiscal quarter, or more frequently if events or changes in circumstances indicate that it is more likely than not the fair value of a reporting unit is less than the carrying value. Ferrellgas has determined that it has one reporting unit for goodwill impairment testing purposes. Ferrellgas completed its most recent annual goodwill impairment test on January 31, 2024 and did not incur an impairment loss.

(3) New accounting standards

Recently adopted accounting pronouncements

No new accounting standards were adopted during the nine months ended April 30, 2024.

Recently issued accounting pronouncements not yet adopted

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), to improve segment disclosures, primarily through enhanced disclosures for significant segment expenses. ASU 2023-07 does not change how a public entity identifies its operating segments, aggregates those operating segments, or applies quantitative thresholds to determine its reportable segments. The Update is effective on a retrospective basis for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company plans to adopt ASU 2023-07 starting with our Form 10-K for the year ended July 31, 2025, and our quarterly reports on Form 10-Q starting with our quarterly report for the quarter ended October 31, 2025. The adoption of this guidance will impact our disclosures only and we do not expect it to have a material impact.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). In addition to new disclosures associated with the reconciliation of the effective tax rate to the statutory rate, ASU 2023-09 requires information related to taxes paid to be disaggregated for federal and state taxes and further disaggregated for specific jurisdictions to the extent they exceed a quantitative threshold. ASU 2023-09 is effective prospectively with an option for retrospective application for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company plans to adopt ASU 2023-09 as of August 1, 2025. The adoption of this guidance will only impact our disclosures and we do not expect it to have a material impact.

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Supplemental financial statement information

9 Months Ended

Apr. 30, 2024

Supplemental financial statement information

Supplemental financial statement information

C.    Supplemental financial statement information

Inventories

Inventories consist of the following:

	April 30, 2024		July 31, 2023
Propane gas and related products	$	71,813	$	76,996
Appliances, parts and supplies, and other		19,462		21,108
Inventories	$	91,275	$	98,104

In addition to inventories on hand, Ferrellgas enters into contracts to take delivery of propane for supply procurement purposes with terms that generally do not exceed 36 months. Most of these contracts call for payment based on market prices at the date of delivery. As of April 30, 2024, Ferrellgas had committed, for supply procurement purposes, to deliver approximately 0.6 million gallons of propane at net fixed prices.

Prepaid expenses and other current assets

Ferrellgas Partners

Prepaid expenses and other current assets consist of the following:

	April 30, 2024		July 31, 2023
Broker margin deposit assets	$	4,633	$	11,939
Other		23,637		17,196
Prepaid expenses and other current assets	$	28,270	$	29,135

The operating partnership

Prepaid expenses and other current assets consist of the following:

	April 30, 2024		July 31, 2023
Broker margin deposit assets	$	4,633	$	11,939
Other		23,617		17,174
Prepaid expenses and other current assets	$	28,250	$	29,113

Other current liabilities

Ferrellgas Partners

Other current liabilities consist of the following:

	April 30, 2024		July 31, 2023
Accrued interest	$	7,536	$	29,011
Customer deposits and advances		28,724		36,226
Accrued payroll		28,219		35,075
Accrued insurance		14,997		15,256
Broker margin deposit liability		4,867		6,972
Accrued senior preferred units distributions		16,935		17,452
Other		52,667		57,038
Other current liabilities	$	153,945	$	197,030

The operating partnership

Other current liabilities consist of the following:

	April 30, 2024		July 31, 2023
Accrued interest	$	7,536	$	29,011
Customer deposits and advances		28,724		36,226
Accrued payroll		28,219		35,075
Accrued insurance		14,997		15,256
Broker margin deposit liability		4,867		6,972
Accrued senior preferred units distributions		16,935		17,452
Other		52,546		56,974
Other current liabilities	$	153,824	$	196,966

Shipping and handling expenses

Shipping and handling expenses are classified in the following condensed consolidated statements of operations line items:

	For the three months ended April 30,				For the nine months ended April 30,
	2024		2023		2024		2023
Operating expense - personnel, vehicle, plant and other	$	76,612	$	78,940	$	222,500	$	218,956
Depreciation and amortization expense		3,407		3,651		9,902		12,962
Operating expense - equipment lease expense		3,313		3,502		10,321		9,039
Shipping and handling expenses	$	83,332	$	86,093	$	242,723	$	240,957

Cash, cash equivalents and restricted cash

For purposes of the condensed consolidated statements of cash flows, Ferrellgas considers cash equivalents to include all highly liquid debt instruments purchased with an original maturity of three months or less. Restricted cash in the tables below as of April 30, 2024 and July 31, 2023 consists of the balance of a cash deposit made with the administrative agent under the operating partnership’s senior secured credit facility that was terminated in April 2020, which may be used by the administrative agent to pay contingent obligations arising under the financing agreement that governed the terminated senior secured credit facility.

Ferrellgas Partners

Cash, cash equivalents and restricted cash consist of the following:

	April 30, 2024		July 31, 2023
Cash and cash equivalents	$	62,862	$	126,221
Restricted cash		10,783		11,126
Cash, cash equivalents and restricted cash	$	73,645	$	137,347

The operating partnership

Cash, cash equivalents and restricted cash consist of the following:

	April 30, 2024		July 31, 2023
Cash and cash equivalents	$	62,438	$	126,119
Restricted cash		10,783		11,126
Cash, cash equivalents and restricted cash	$	73,221	$	137,245

Certain cash flow and non-cash activities

Certain cash flow and significant non-cash activities are presented below:

Ferrellgas Partners

	For the nine months ended April 30,
	2024		2023
Cash paid for:
Interest	$	88,393	$	88,865
Income taxes	$	495	$	713
Non-cash investing and financing activities:
Liabilities incurred in connection with acquisitions	$	1,585	$	3,435
Change in accruals for property, plant and equipment additions	$	1,259	$	331
Lease liabilities arising from operating ROU assets	$	16,526	$	6,254
Lease liabilities arising from finance ROU assets	$	3,884	$	—
Accrued senior preferred units distributions	$	16,935	$	16,870

The operating partnership

	For the nine months ended April 30,
	2024		2023
Cash paid for:
Interest	$	88,393	$	88,865
Income taxes	$	477	$	708
Non-cash investing and financing activities:
Liabilities incurred in connection with acquisitions	$	1,585	$	3,435
Change in accruals for property, plant and equipment additions	$	1,259	$	331
Lease liabilities arising from operating ROU assets	$	16,526	$	6,254
Lease liabilities arising from finance ROU assets	$	3,884	$	—
Accrued senior preferred units distributions	$	16,935	$	16,870

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Accounts and notes receivable, net

9 Months Ended

Apr. 30, 2024

Accounts and notes receivable, net

Accounts and notes receivable, net

D.    Accounts and notes receivable, net

Accounts and notes receivable, net consist of the following:

	April 30, 2024		July 31, 2023
Accounts receivable	$	182,177	$	163,537
Note receivable		2,500		2,500
Allowance for expected credit losses		(6,514)		(6,658)
Accounts and notes receivable, net	$	178,163	$	159,379

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Debt

9 Months Ended

Apr. 30, 2024

Debt

Debt

E.    Debt

Short-term borrowing

Ferrellgas classifies borrowings under its Credit Facility (as defined below) as short-term because they are primarily used to fund working capital needs that management intends to pay down within the twelve month period following the balance sheet date. As of April 30, 2024, we did not have any short-term borrowings. For further discussion, see the “Senior secured revolving credit facility” section below.

Long-term debt

Long-term debt consists of the following:

	April 30, 2024		July 31, 2023
Unsecured senior notes
Fixed rate, 5.375%, due 2026	$	650,000	$	650,000
Fixed rate, 5.875%, due 2029		825,000		825,000
Notes payable
8.3% weighted average interest rate at April 30, 2024 and July 31, 2023, due 2024 to 2029, net of unamortized discount of $1,050 and $1,040 at April 30, 2024 and July 31, 2023, respectively		6,439		6,615
Total debt, excluding unamortized debt issuance and other costs		1,481,439		1,481,615
Unamortized debt issuance and other costs		(18,963)		(22,834)
Less: current portion of long-term debt		2,620		2,597
Long-term debt	$	1,459,856	$	1,456,184

Senior secured revolving credit facility

The operating partnership, the general partner and certain of the operating partnership’s subsidiaries as guarantors are parties to a credit agreement dated March 30, 2021, as amended on May 23, 2023 (the “Credit Agreement”), with JPMorgan Chase Bank, N.A. as administrative agent and collateral agent, and the lenders and issuing lenders party thereto from time to time, which provides for a four-year revolving credit facility (the “Credit Facility”) in an aggregate principal amount of up to $350.0 million. The Credit Agreement includes a sublimit not to exceed $300.0 million for the issuance of letters of credit. As of April 30, 2024, the operating partnership had no short-term borrowings.

All borrowings under the Credit Facility are guaranteed by the general partner and the direct and indirect subsidiaries of the operating partnership (other than Ferrellgas Finance Corp. and Ferrellgas Receivables, LLC) and a limited-recourse guaranty from Ferrellgas Partners (limited to its equity interests in the operating partnership). Additionally, all borrowings are secured, on a first priority basis, by substantially all of the assets of the operating partnership and its subsidiaries and all of the equity interests in the operating partnership held by the general partner and Ferrellgas Partners.

Availability under the Credit Facility is, at any time, an amount equal to (a) the lesser of the revolving commitment and the Borrowing Base (as defined below) minus (b) the sum of the aggregate outstanding amount of borrowings under the Credit Facility plus the undrawn amount of outstanding letters of credit under the Credit Facility plus unreimbursed drawings in respect of letters of credit (unless otherwise converted into revolving loans). The “Borrowing Base” equals the sum of: (a) $200.0 million, plus (b) 80% of the eligible accounts receivable of the operating partnership and its subsidiaries, plus (c) 70% of the eligible propane inventory of the operating partnership and its subsidiaries, valued at weighted average cost, less (d) certain reserves, as determined and subject to certain modifications by the administrative agent in its permitted discretion.

Amounts borrowed under the Credit Facility bear interest, at the operating partnership’s option, at either (a) for base rate loans, (i) a base rate determined by reference to the highest of (A) the rate of interest last quoted by The Wall Street Journal in the U.S. as the prime rate in effect, (B) the NYFRB Rate from time to time plus 0.50% per annum and (C) the Adjusted term Secured Overnight Financing Rate (“SOFR”) for a one-month interest period plus 1.00% per annum plus (ii) a margin of 1.50% to 2.00% per annum depending on total net leverage or (b) for Eurodollar rate loans, (i) a rate determined by reference to the Adjusted term SOFR plus (ii) a margin of 2.50% to 3.00% per annum depending on total net leverage. The operating partnership will be required to pay an undrawn fee to the lenders on the average daily unused amount of the Credit Facility at a rate of 0.375% to 0.50% per annum depending on total net leverage.

The Credit Agreement contains customary representations, warranties, covenants and events of default and requires the operating partnership to maintain the following financial covenants:

Financial Covenant	Ratio
Minimum interest coverage ratio (1)	2.50x
Maximum secured leverage ratio (2)	2.50x
Maximum total net leverage ratio (3) (4)	4.75x

(1) Defined generally as the ratio of adjusted EBITDA to cash interest expense.

(2) Defined generally as the ratio of total first priority secured indebtedness to adjusted EBITDA.

(3) Defined generally as the ratio of total indebtedness (net of unrestricted cash, subject to certain limits) to adjusted EBITDA.

(4) Was 5.25x immediately prior to the quarter ended October 31, 2022 and 5.00x immediately prior to the quarter ended April 30, 2023.

In addition to the financial covenants, the Credit Agreement includes covenants that if not met will restrict the ability of the operating partnership to take certain actions. In particular, under these covenants, subject to certain exceptions and additional requirements, the operating partnership is permitted to make cash distributions to holders of Preferred Units, Ferrellgas Partners and the general partner, redemptions of Preferred Units and other restricted payments (i) only in limited amounts specified in the Credit Agreement and (ii) only if availability under the Credit Facility exceeds the greater of $50.0 million and 15% of the Borrowing Base and the operating partnership’s total net leverage ratio is not greater than 4.75 to 1.0. As of April 30, 2024, the operating partnership is in compliance with all of its debt covenants.

Senior unsecured notes

The operating partnership has $650.0 million aggregate principal amount of 5.375% senior notes due 2026 (the “2026 Notes”) and $825.0 million aggregate principal amount of 5.875% senior notes due 2029 (the “2029 Notes”) issued and outstanding pursuant to indentures each dated March 30, 2021. The 2026 Notes and 2029 Notes are the senior unsecured obligations of the operating partnership and Ferrellgas Finance Corp. and are unconditionally guaranteed, jointly and severally, on a senior unsecured basis by the general partner and all domestic subsidiaries of the operating partnership other than Ferrellgas Finance Corp. and Ferrellgas Receivables, LLC.

The 2026 Notes and 2029 Notes may be redeemed at the issuers’ option, in whole or in part, at the redemption prices set forth in the indenture governing such notes, plus accrued and unpaid interest. Beginning on April 1, 2025 and April 1, 2026, the 2026 Notes and 2029 Notes, respectively, may be redeemed at par plus accrued and unpaid interest.

The indentures governing the 2026 Notes and 2029 Notes contain customary affirmative and negative covenants restricting, among other things, the ability of the operating partnership and its restricted subsidiaries to take certain actions. In particular, under these covenants, subject to certain exceptions and additional requirements, the operating partnership is permitted to make cash distributions to holders of Preferred Units, Ferrellgas Partners and the general partner, redemptions of Preferred Units and other restricted payments (i) only in limited amounts specified in the indentures and (ii) only if the operating partnership’s net leverage ratio (defined generally to mean the ratio of consolidated total net debt to trailing four quarters consolidated EBITDA, both as adjusted for certain, specified items) is not greater than 5.0 to 1.0, on a pro forma basis giving effect to the restricted payment and, if applicable, certain other specified events. Further, if the operating partnership’s consolidated fixed charge coverage ratio (defined generally to mean the ratio of trailing four quarters consolidated EBITDA to consolidated fixed charges, both as adjusted for certain, specified items) is equal to or less than 1.75 to 1.00 (on a pro forma basis giving effect to the restricted payment and, if applicable, certain other specified events), the amount of distributions and other restricted payments the operating partnership is permitted to make under the indentures is further limited. As of April 30, 2024, the operating partnership is in compliance with all of its debt covenants.

The scheduled annual principal payments on long-term debt are as follows:

	Scheduled
Payment due by fiscal year	principal payments
2024	$	425
2025		2,510
2026		652,129
2027		1,210
2028		825,810
Thereafter		405
Total	$	1,482,489

Letters of credit outstanding at April 30, 2024 and July 31, 2023 totaled $70.2 and $74.0 million, respectively, and were used to secure insurance arrangements, product purchases and commodity hedges. As of April 30, 2024, Ferrellgas had available borrowing capacity under its Credit Facility of $279.8 million. Propane assets subject to lien under the Credit Facility were $60.6 million as of April 30, 2024.

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Preferred units

9 Months Ended

Apr. 30, 2024

Preferred units

Preferred units

F.    Preferred units

On March 30, 2021, pursuant to an Investment Agreement, the operating partnership issued an aggregate of 700,000 Preferred Units (the “Preferred Units”), having an aggregate initial liquidation preference of $700.0 million.

Redemption of the Preferred Units in the near term is not probable because of the high redemption price in the first three to four years. As described in greater detail under “Issuer Redemption Right” below, the Redemption Price for the Preferred Units is based upon the greater of the amount that would result in a 1.47x MOIC (defined below) and the amount that would result in a 12.25% internal rate of return. If the Preferred Units were redeemed during the first three to four years after issuance, the 1.47x MOIC would require a large premium payment and that large premium payment would result in an internal rate of return far in excess of the minimum 12.25%. Consequently, it is unlikely that Ferrellgas would be able to achieve any savings in its cost of capital by redeeming the Preferred Units during the first three to four years after issuance.

“MOIC” means, with respect to a Preferred Unit, a multiple on invested capital equal to the quotient determined by dividing (A) the sum of (x) the aggregate amount of all distributions made in cash with respect to such Preferred Unit prior to the applicable date of determination, with certain exclusions, plus (y) each Redemption Price paid in cash in respect of such Preferred Unit, on or prior to the applicable date of determination, by (B) the Purchase Price (defined below) of such Preferred Unit.

The preferences, rights, privileges and other terms of the Preferred Units are set forth in the First Amendment to the Amended OpCo LPA (the “OpCo LPA Amendment”) entered into by the general partner on March 30, 2021 (along with the Fifth Amended and Restated Agreement of Limited Partnership of Ferrellgas, L.P. (the “Amended OpCo LPA”)) and are described below.

Issuer Redemption Right

The operating partnership has the right to redeem all or a portion of the Preferred Units for cash, pro rata and at any time and from time to time, including in connection with a Change of Control (as defined in the OpCo LPA Amendment), at an amount per Preferred Unit (the “Redemption Price”) equal to, without duplication, the sum of (a) the greater of (i) the amount necessary to result in a MOIC of 1.47x in respect of the purchase price, before discount, of such Preferred Unit, which is $1,000 per Preferred Unit (the “Purchase Price”), and (ii) the amount necessary to result in the applicable internal rate of return equal to 12.25%, which is increased by 150 basis points if the operating partnership has elected to pay more than four Quarterly Distributions (as defined below) in PIK Units (as defined below) and (b) the accumulated but unpaid Quarterly Distributions to the date of redemption, if any. A partial redemption of the Preferred Units is permitted only in the event the aggregate amount to be paid in respect of all Preferred Units included in such partial redemption is at least $25.0 million.

Investor Redemption Right

In the event that (i) any Class B Units are outstanding, or (ii) (x) no Class B Units are outstanding and (y) no more than 233,300 Preferred Units are outstanding, at any time on and after March 30, 2031, the Required Holders may elect, by delivery of written notice, to have the operating partnership fully redeem each remaining outstanding Preferred Unit for an amount in cash equal to the Redemption Price. “Required Holders” refers to both (i) holders owning at least 33.3% of the total Preferred Units outstanding at any time and (ii) certain initial affiliated purchasers, for so long as such initial affiliated purchasers collectively own at least 25% of the Preferred Units outstanding at such time.

In the event that (i) no Class B Units are outstanding and (ii) more than 233,300 Preferred Units are outstanding, the Required Holders will have the right to trigger a sale of the operating partnership after March 30, 2031. If the operating partnership fails to consummate a sale that would pay the Redemption Price in full within 180 days of written notice requiring such sale, the Required Holders will have the right to appoint a majority of the members of the Board of Directors of the general partner and initiate a sale of the operating partnership.

Change of Control

Upon a Change of Control (as defined in the OpCo LPA Amendment), the Required Holders will have the option to require the redemption of all or a portion of the Preferred Units in cash in an amount equal to the Redemption Price; provided, that such Redemption Price shall not be payable unless the operating partnership shall have first made any required change of control offer pursuant to the indentures governing the 2026 Notes and the 2029 Notes and purchased all such 2026 Notes and 2029 Notes tendered pursuant to such offer (unless otherwise waived by such noteholders); provided, further that the Redemption Price shall be paid immediately following the purchase of such tendered Notes (if any).

Fair Value of Embedded Derivatives

Ferrellgas identified the investor redemption right and the change in control option as embedded derivatives that require bifurcation as they are not clearly and closely related to the debt host contract and has concluded that the fair values at issuance and at April 30, 2024 and July 31, 2023, are immaterial to the financial statements.

Distributions

Pursuant to the OpCo LPA Amendment, the operating partnership is required to pay to the holders of each Preferred Unit a cumulative, quarterly distribution (the “Quarterly Distribution”) at the Distribution Rate (as defined below) on the Purchase Price.

“Distribution Rate” means, for the first five years after March 30, 2021, a rate per annum equal to 8.956%, with certain increases in the Distribution Rate on each of the 5^th, 6^th and 7^th anniversaries of March 30, 2021, subject to a maximum rate of 11.125% and certain other adjustments and exceptions.

The Quarterly Distribution may be paid in cash or, at the election of the operating partnership, “in kind” through the issuance of additional Preferred Units (“PIK Units”) at the quarterly Distribution Rate plus an applicable premium that escalates each year from 75 bps to 300 bps so long as the Preferred Units remain outstanding. In the event the operating partnership fails to make any Quarterly Distribution in cash, such Quarterly Distribution will automatically be paid in PIK Units.

The Distribution Rate on the Preferred Units will increase upon violation of certain protective provisions for the benefit of Preferred Unit holders notwithstanding the cap mentioned above.

On November 15, 2023, February 15, 2024 and May 15, 2024, $15.4 million of the Quarterly Distribution was paid in cash to holders of Preferred Units. As of April 30, 2024, the Quarterly Distribution accrued was $16.9 million. The remaining Quarterly Distribution accrual of $1.5 million represents Additional Amounts payable to certain holders of Preferred Units pursuant to the side letters outlined in the OpCo LPA Amendment. Additionally, during the nine months ended April 30, 2024, we paid $2.0 million for Additional Amounts payable pursuant to the side letters.

On November 15, 2022, $15.3 million of the Quarterly Distribution was paid in cash to holders of Preferred Units. On February 15, 2023 and May 15, 2023, $15.4 million of the Quarterly Distribution was paid in cash to holders of Preferred Units. As of April 30, 2023, the Quarterly Distribution accrued was $16.9 million. The remaining Quarterly Distribution accrual of $1.5 million represented Additional Amounts payable to certain holders of Preferred Units pursuant to the side letters. Additionally, during the nine months ended April 30, 2023 we paid $1.7 million for Additional Amounts payable pursuant to the side letters.

Tax Distributions

For any quarter in which the operating partnership makes a Quarterly Distribution in PIK Units in lieu of cash, it will be required to make a subsequent cash tax distribution for such quarter in an amount equal to the (i) the lesser of (x) 25% and (y) the highest combined federal, state and local tax rate applicable for corporations organized in New York, multiplied by (ii) the excess (if any) of (A) one-fourth (1/4th) of the estimated taxable income to be allocated to the holders of Preferred Units for the year in which the Quarterly Tax Payment Date (which refers to certain specified dates that next follow a Quarterly Distribution date on which PIK Units were issued) occurs, over (B) any cash paid on the Quarterly Distribution date immediately preceding the Quarterly Tax Payment Date on which a quarterly tax amount would otherwise be paid (such amount, the “Tax Distribution”). Tax Distributions are treated as advances against, and reduce, future cash distributions for any reason, including payments in redemption of Preferred Units or PIK Units, or payments to the holders in their capacity as such pursuant to any side letter or other agreement.

Additional Amounts for Certain Purchasers

The operating partnership is required to pay certain additional amounts of cash (the “Additional Amounts”) as necessary to certain holders of Preferred Units that hold their interests through a “blocker,” which is a U.S. entity that is owned and organized by certain original purchasers of Preferred Units who are non-U.S. persons or tax exempt for U.S. tax purposes and is treated as a corporation for U.S. tax purposes. Only certain original purchasers of Preferred Units who hold their Preferred Units through such blockers are, and none of their transferees is, entitled to Additional Amounts. Additional Amounts are capped at the lesser of: (a) the product of 20% multiplied by taxable income allocated to a “blocker” (as defined) divided by 0.8, and (b) the actual taxes payable by the “blocker” as a result of holding Senior Preferred Units.

Board Rights

For so long as at least 140,000 Preferred Units remain outstanding, holders of the Preferred Units have the right to designate one director to the Board of the general partner, subject to approval by the general partner.

Protective Provisions

The OpCo LPA Amendment and the Sixth Amended and Restated Agreement of Limited Partnership of Ferrellgas Partners, L.P. (the “Amended Ferrellgas Partners LPA”) include, among other things, certain covenants for the benefit of holders of Preferred Units applicable to the operating partnership and, in certain instances, Ferrellgas Partners, for so long as at least $35,000,000 of Preferred Units and PIK Units remain outstanding. These covenants include, among other things, limitations on (i) effecting a Change of Control, (ii) amending organizational documents, (iii) issuing certain equity securities, (iv) issuing Preferred Units, (v) filing for bankruptcy, (vi) non-ordinary course investments, and (vii) incurring certain levels of indebtedness.

Ranking and Liquidation Preference

The Preferred Units rank senior to any other class or series of equity interests of the operating partnership (including the partnership interests held by Ferrellgas Partners and the general partner). Upon a liquidation, dissolution or winding up of the operating partnership, each holder of Preferred Units will be entitled to receive, prior and in preference to any distribution of any assets of the operating partnership to the holders of any other class or series of equity interests in the operating partnership (including Ferrellgas Partners and the general partner), an amount per Preferred Unit equal to the Redemption Price.

Restrictions on Cash Distributions to Ferrellgas Partners and the General Partner

The operating partnership is permitted to make distributions of Available Cash (as defined in the Amended OpCo LPA) to Ferrellgas Partners only if (i) the operating partnership has made all required Quarterly Distributions (in cash or PIK Units), Tax Distributions and payments of Additional Amounts, (ii) the operating partnership has redeemed all PIK Units issued, (iii) the operating partnership’s consolidated net leverage (defined generally to mean the ratio of the operating partnership’s consolidated total net debt (including the total redemption price of all outstanding Preferred Units and PIK Units but excluding certain letters of credit and capital lease obligations) as of each Quarterly Distribution Date to trailing four quarters consolidated EBITDA, both as adjusted for certain, specified items) is below 7.00x, net of cash, immediately before and after giving effect to such distribution, (iv) the operating partnership has at least $100 million of liquidity, consisting of unrestricted cash on hand and available capacity under the Credit Agreement or any replacement thereof, and (v) the operating partnership is in compliance with the other protective provisions in the OpCo LPA Amendment.

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Equity (Deficit)

9 Months Ended

Apr. 30, 2024

Equity (Deficit)

Equity (Deficit)

G.    Equity (Deficit)

Ferrellgas Partners

Class B Units

On March 30, 2021, Ferrellgas Partners issued 1.3 million Class B Units to the holders of the $357.0 million aggregate principal amount of its 8.625% senior unsecured notes due June 2020 (the “Ferrellgas Partners Notes”) in exchange for such holders’ contribution of the Ferrellgas Partners Notes to Ferrellgas Partners as a capital contribution and in satisfaction of such holders’ claims in respect of the Ferrellgas Partners Notes. The terms of the Class B Units are set forth in the Amended Ferrellgas Partners LPA entered into by the general partner on March 30, 2021.

Ferrellgas Partners may, subject to certain conditions, issue additional Class A Units to such parties as determined at the discretion of Ferrellgas Partners, upon consent by the holders of the requisite percentage of Class B Units as specified in the Amended Ferrellgas Partners LPA (the “Requisite Class B Units”), which refers to: (i) if the initial majority holder of Class B Units holds at least 50% of Class B Units, holders of at least 50% of the outstanding Class B Units, or (ii) if the initial majority holder of Class B Units holds less than 50% of Class B Units, holders of at least one-third of the outstanding Class B Units.

Pursuant to the Amended Ferrellgas Partners LPA, while any Class B Units remain outstanding, any distributions by Ferrellgas Partners to its partners must be made such that the ratio of (i) the amount of distributions made to holders of Class B Units to (ii) the amount of distributions made to holders of Class A Units and the general partner is not less than 6:1.

Once holders of Class B Units receive distributions in the aggregate amount of $357.0 million (which was the outstanding principal amount of the Ferrellgas Partners Notes), the Class B Units will be (i) convertible into Class A Units at the option of Ferrellgas Partners, if that distribution threshold is reached prior to March 30, 2026, the fifth anniversary post-emergence, or (ii) converted automatically into Class A Units, if the distribution threshold is reached on or after March 30, 2026, in each case at the applicable conversion rate set forth in the following table:

Period	Conversion Factor
March 31, 2024 through March 30, 2025	4.00x
March 31, 2025 through March 30, 2026	5.00x
March 31, 2026 through March 30, 2027	6.00x
March 31, 2027 through March 30, 2028	7.00x
March 31, 2028 through March 30, 2029	10.00x
March 31, 2029 through March 30, 2030	12.00x
March 31, 2030 through March 30, 2031	25.00x

Ferrellgas Partners may redeem the Class B Units through March 30, 2026, in full, at a price equal to an amount that will result in an internal rate of return with respect to the Class B Units equal to the sum of (i) 300 basis points and (ii) the internal rate of return for the Preferred Units as specified in the Amended Ferrellgas Partners LPA, subject to the minimum redemption price of $302.08 per unit. The total internal rate of return required to redeem the Class B Units is 15.85%, but that amount increases under certain circumstances, including if the operating partnership paid distributions on the Preferred Units in-kind rather than in cash for a certain number of quarters. There have not been any in-kind distributions through April 30, 2024.

During the period through March 30, 2026, after Ferrellgas Partners has distributed $356 million in distributions to holders of the Class B Units, Ferrellgas Partners will have the option to hold cash for six months at either Ferrellgas Partners or Ferrellgas Partners Finance Corp. for the sole purpose of redeeming the Class B Units. However, if the funds held are not used to redeem the Class B Units, the funds must either be distributed to holders of the Class B Units and, if applicable, holders of the Class A Units and the general partner or returned to the operating partnership.

Ferrellgas Partners will only be able to redeem the Class B Units to the extent it receives sufficient distributions from the operating partnership, and the operating partnership is limited in its ability to make distributions by the indentures that govern the 2026 Notes and the 2029 Notes, the Credit Agreement and the OpCo LPA Amendment governing the Preferred Units.

The holders of the Class B Units will have the right to acquire the general partner interests in Ferrellgas Partners and the operating partnership, without the approval of the general partner, Ferrellgas Partners, the holders of the Class A Units or the operating partnership, if the Class B Units are still outstanding and have not been converted to Class A Units by the earlier of (i) a material breach of the covenants in favor of the Class B Units under the Amended Ferrellgas Partners LPA or the Amended OpCo LPA that is not cured within the time period specified therein and (ii) March 30, 2031.

Board Rights

The holders of Class B Units will be permitted to designate one independent director to the Board of the general partner in accordance with a voting agreement among the general partner, Ferrell Companies, Inc. (“FCI”), the sole stockholder of the general partner, and the holders of the Class B Units and the general partner's bylaws.

Class A Units

As of April 30, 2024 and July 31, 2023, Class A Units were beneficially owned by the following:

	April 30, 2024	July 31, 2023
Public Class A Unitholders (1)	3,480,621	3,480,621
James E. Ferrell (2)	238,172	238,172
Ferrell Companies (3)	1,126,468	1,126,468
FCI Trading Corp. (4)	9,784	9,784
Ferrell Propane, Inc. (5)	2,560	2,560
Total	4,857,605	4,857,605

(1) These Class A Units are traded on the OTC Pink Market under the symbol “FGPR.”

(2) James E. Ferrell was the Chief Executive Officer and President of our general partner and Chairman of the Board of Directors of our general partner through July 31, 2023. Effective August 1, 2023, he became the Executive Chairman of our general partner and the Board of Directors of our general partner. He is a related party. JEF Capital Management owns 237,942 of these Class A Units and is owned by the James E. Ferrell Revocable Trust Two and other family trusts, all of which James E. Ferrell and/or his family members are the trustees and beneficiaries. James E. Ferrell holds all voting common stock of JEF Capital Management. The remaining 230 Class A Units are held by Ferrell Resources Holdings, Inc., which is wholly-owned by the James E. Ferrell Revocable Trust One, for which James E. Ferrell is the trustee and sole beneficiary.

(3) Ferrell Companies is the owner of the general partner and an approximate 23% direct owner of Ferrellgas Partners’ Class A Units and thus a related party. Ferrell Companies also beneficially owns 9,784 and 2,560 Class A Units of Ferrellgas Partners held by FCI Trading Corp. (“FCI Trading”) and Ferrell Propane, Inc. (“Ferrell Propane"), respectively, bringing Ferrell Companies’ total beneficial ownership of Class A Units to 23.4%.

(4) FCI Trading is an affiliate of the general partner and thus a related party.

(5) Ferrell Propane is controlled by the general partner and thus a related party.

Together these Class A Units represent (i) a 99% limited partner economic interest in Ferrellgas Partners, excluding the economic interest attributable to the Class B Units, and (ii) an effective 98% economic interest in the operating partnership, excluding the economic interests attributable to the Class B Units and the Preferred Units. In liquidation, allocations and distributions will be made in accordance with each Class A Unitholder’s positive capital account.

The Class A Units of Ferrellgas Partners represent limited partner interests in Ferrellgas Partners, which give the holders thereof the right to participate in distributions made by Ferrellgas Partners, subject to the rights of holders of Class B Units, and to exercise the other rights or privileges available to such holders under the Amended Ferrellgas Partners LPA. Under the terms of the Amended Ferrellgas Partners LPA, holders of Class A Units have limited voting rights on matters affecting the business of Ferrellgas Partners. Generally, persons or groups owning 20% or more of Ferrellgas Partners’ outstanding Class A Units cannot vote any of their Class A Units in excess of the 20% threshold. However, this limitation does not apply under certain circumstances and does not apply to Class A Units owned by Ferrell Companies, our general partner and its affiliates, and this limitation expires on the later of (a) March 30, 2026 and (b) the conversion of the Class B Units to Class A Units.

The Amended Ferrellgas Partners LPA allows the general partner to issue an unlimited number of additional general and limited partner interests of Ferrellgas Partners for such consideration and on such terms and conditions as shall be established by the general partner without the approval of any Class A Unitholders.

Partnership distributions

Ferrellgas Partners did not declare or pay any distributions to its Class A Unitholders or the general partner during the nine months ended April 30, 2024 and 2023, except for a $1.0 million distribution to the general partner, made in conjunction with the Class B distribution noted below, during the three and nine months ended April 30, 2024.

On April 9, 2024, Ferrellgas Partners made a cash distribution in the aggregate amount of approximately $99.9 million to its Class B Unitholders. Ferrellgas Partners made aggregate cash distributions of approximately $49.9 million during the three and nine months ended April 30, 2023. We have made aggregate cash distributions of approximately $250.0 million to our Class B Unitholders since inception of our Class B Units. See Note M “Net (loss) earnings per unitholders’ interest” for additional information.

Accumulated other comprehensive income (“AOCI”)

See Note J “Derivative instruments and hedging activities” for details regarding changes in fair value on risk management financial derivatives recorded within AOCI for the three and nine months ended April 30, 2024 and 2023.

Ferrellgas Partners

General partner’s commitment to maintain its capital account

Ferrellgas’ partnership agreements allow the general partner to have an option to maintain its effective 2% general partner interest (excluding the interest attributable to the Class B Units and the Preferred Units) concurrent with the issuance of other additional equity.

During the nine months ended April 30, 2024 and 2023, the general partner made non-cash contributions of $50.0 thousand and $44.0 thousand, respectively, to Ferrellgas to maintain its effective 2% general partner interest.

The operating partnership

Partnership distributions

The operating partnership has recognized the following distributions:

	For the three months ended April 30,				For the nine months ended April 30,
	2024		2023		2024		2023
Ferrellgas Partners	$	100,000	$	50,000	$	100,000	$	50,000
General partner		1,010		—		1,010		—

See additional discussions about transactions with related parties in Note K “Transactions with related parties.”

General partner’s commitment to maintain its capital account

Ferrellgas, L.P.’s partnership agreement allows the general partner to have an option to maintain its 1.0101% general partner interest (excluding the interest attributable to the Preferred Units) concurrent with the issuance of other additional equity.

During the nine months ended April 30, 2024 and 2023, the general partner made non-cash contributions of $25.0 thousand and $22.0 thousand, respectively, to the operating partnership to maintain its 1.0101% general partner interest.

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Revenue from contracts with customers

9 Months Ended

Apr. 30, 2024

Revenue from contracts with customers

Revenue from contracts with customers

H.    Revenue from contracts with customers

Disaggregation of revenue

Ferrellgas disaggregates revenues based upon the type of customer and on the type of revenue. The following table presents retail propane revenues, wholesale propane revenues and other revenues. Retail revenues result from sales to end use customers, wholesale revenues result from sales to or through resellers and all other revenues include sales of appliances and other materials, other fees charged to customers and equipment rental charges.

	For the three months ended April 30,				For the nine months ended April 30,
	2024		2023		2024		2023
Retail - Sales to End Users	$	367,300	$	431,538	$	1,033,000	$	1,195,961
Wholesale - Sales to Resellers		119,739		123,532		368,088		388,154
Other Gas Sales		3,018		3,977		12,112		12,662
Other		25,717		28,300		83,464		87,802
Propane and related equipment revenues	$	515,774	$	587,347	$	1,496,664	$	1,684,579

Contract assets and liabilities

Ferrellgas’ performance obligations are generally limited to the delivery of propane for its retail and wholesale contracts. Ferrellgas’ performance obligations with respect to sales of appliances and other materials and other revenues are limited to the delivery of the agreed upon good or service. Ferrellgas does not have material performance obligations that are delivered over time, thus all of its revenue is recognized at the time the goods, including propane, are delivered or installed. Ferrellgas offers “even pay” and other billing programs that can create customer deposits or advances, depending on whether Ferrellgas has delivered more propane than the customer has paid for or whether the customer has paid for more propane than what has been delivered. Revenue is recognized from these customer deposits or advances to customers at the time product is delivered. The advance or deposit is considered to be a contract asset or liability. Additionally, from time to time, we have customers that pay in advance for goods or services, and such amounts result in contract liabilities.

Ferrellgas incurs incremental commissions directly related to the acquisition or renewal of customer contracts. The commissions are calculated and paid based upon the number of gallons sold to the acquired or renewed customer. The total amount of commissions that we incur is not material, and the commissions are expensed commensurate with the deliveries to which they relate; therefore, we do not capitalize these costs.

The following table presents the opening and closing balances of our contract assets and contract liabilities:

	April 30, 2024		July 31, 2023
Contract assets	$	13,315	$	10,263
Contract liabilities
Deferred revenue (1)	$	42,305	$	51,516

(1) Of the beginning balance of deferred revenue, $36.9 million was recognized as revenue during the nine months ended April 30, 2024.

Remaining performance obligations

Ferrellgas’ remaining performance obligations are generally limited to situations where customers have remitted payment but have not yet received deliveries of propane. This most commonly occurs in even pay billing programs and Ferrellgas expects that these balances will be recognized within a year or less as the customer takes delivery of propane.

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Fair value measurements

9 Months Ended

Apr. 30, 2024

Fair value measurements

Fair value measurements

I.    Fair value measurements

Derivative financial instruments

The following table presents Ferrellgas’ financial assets and financial liabilities that are measured at fair value on a recurring basis for each of the fair value hierarchy levels, including both current and noncurrent portions, as of April 30, 2024 and July 31, 2023:

	Asset (Liability)
	Quoted Prices in Active
	Markets for Identical		Significant Other
	Assets and Liabilities		Observable Inputs		Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
April 30, 2024:
Assets:
Derivative financial instruments:
Commodity derivatives	$	—	$	5,631	$	—	$	5,631
Liabilities:
Derivative financial instruments:
Commodity derivatives	$	—	$	(4,589)	$	—	$	(4,589)
July 31, 2023:
Assets:
Derivative financial instruments:
Commodity derivatives	$	—	$	12,165	$	—	$	12,165
Liabilities:
Derivative financial instruments:
Commodity derivatives	$	—	$	(11,082)	$	—	$	(11,082)

Methodology

The fair values of Ferrellgas’ non-exchange traded commodity derivative contracts are based upon indicative price quotations available through brokers, industry price publications or recent market transactions and related market indicators. There were no transfers between Levels 1, 2 or 3 during the nine months ended April 30, 2024 and the fiscal year ended July 31, 2023.

Other financial instruments

The carrying amounts of other financial instruments included in current assets and current liabilities (except for current maturities of long-term debt) approximate their fair values because of their short-term nature. At April 30, 2024 and July 31, 2023, the estimated fair value of Ferrellgas’ long-term debt instruments was $1,417.1 million and $1,318.9 million, respectively. Ferrellgas estimates the fair value of long-term debt based on quoted market prices. The fair value of Ferrellgas’ consolidated debt obligations is a Level 2 valuation based on the observable inputs used for similar liabilities.

Ferrellgas has other financial instruments such as trade accounts receivable which could expose it to concentrations of credit risk. The credit risk from trade accounts receivable is limited because of a large customer base which extends across many different U.S. markets.

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Derivative instruments and hedging activities

9 Months Ended

Apr. 30, 2024

Derivative instruments and hedging activities

Derivative instruments and hedging activities

J.    Derivative instruments and hedging activities

Ferrellgas is exposed to certain market risks related to its ongoing business operations. These risks include exposure to changing commodity prices as well as fluctuations in interest rates. Ferrellgas utilizes derivative instruments to manage its exposure to fluctuations in commodity prices. Of these, the propane commodity derivative instruments are designated as cash flow hedges.

Derivative instruments and hedging activity

During the nine months ended April 30, 2024 and 2023, Ferrellgas did not recognize any gain or loss in earnings related to hedge ineffectiveness and did not exclude any component of financial derivative contract gains or losses from the assessment of hedge effectiveness related to commodity cash flow hedges.

The following tables provide a summary of the fair value of derivatives within Ferrellgas’ condensed consolidated balance sheets as April 30, 2024 and July 31, 2023:

	Final	April 30, 2024
	Maturity	Asset Derivatives			Liability Derivatives
Derivative Instrument	Date	Location	Fair value		Location	Fair value
Derivatives designated as hedging instruments	December 2025
Commodity derivatives-propane		Price risk management asset	$	5,398	Other current liabilities	$	4,166
Commodity derivatives-propane		Other assets, net		233	Other liabilities		423
		Total	$	5,631	Total	$	4,589

	Final	July 31, 2023
	Maturity	Asset Derivatives			Liability Derivatives
Derivative Instrument	Date	Location	Fair value		Location	Fair value
Derivatives designated as hedging instruments	December 2024
Commodity derivatives-propane		Price risk management asset	$	11,966	Other current liabilities	$	9,554
Commodity derivatives-propane		Other assets, net		199	Other liabilities		1,528
		Total	$	12,165	Total	$	11,082

Ferrellgas’ exchange traded commodity derivative contracts require a cash margin deposit as collateral for contracts that are in a negative mark-to-market position. These cash margin deposits will be returned if mark-to-market conditions improve or will be applied against cash settlement when the contracts are settled. Liabilities represent cash margin deposits received by Ferrellgas for contracts that are in a positive mark-to-market position. The following tables provide a summary of cash margin balances as of April 30, 2024 and July 31, 2023:

	April 30, 2024
	Assets			Liabilities
Description	Location	Amount		Location	Amount
Margin Balances	Prepaid expense and other current assets	$	4,633	Other current liabilities	$	4,867
	Other assets, net		1,225	Other liabilities		502
	Total	$	5,858	Total	$	5,369

	July 31, 2023
	Assets			Liabilities
Description	Location	Amount		Location	Amount
Margin Balances	Prepaid expense and other current assets	$	11,939	Other current liabilities	$	6,972
	Other assets, net		1,965	Other liabilities		—
	Total	$	13,904	Total	$	6,972

The following tables provide a summary of the effect on Ferrellgas’ condensed consolidated statements of comprehensive income for the three and nine months ended April 30, 2024 and 2023 due to derivatives designated as cash flow hedging instruments:

	For the three months ended April 30, 2024
				Amount of Gain
	Amount of Loss		Location of Gain	Reclassified from
	Recognized in		Reclassified from	AOCI into Income
Derivative Instrument	AOCI		AOCI into Income	Effective portion		Ineffective portion
Commodity derivatives	$	(1,180)	Cost of sales - propane and other gas liquids sales	$	5,179	$	—

	For the three months ended April 30, 2023
				Amount of Loss
	Amount of Loss		Location of Loss	Reclassified from
	Recognized in		Reclassified from	AOCI into Income
Derivative Instrument	AOCI		AOCI into Income	Effective portion		Ineffective portion
Commodity derivatives	$	(10,621)	Cost of sales - propane and other gas liquids sales	$	(13,450)	$	—

	For the nine months ended April 30, 2024
				Amount of Loss
	Amount of Loss		Location of Loss	Reclassified from
	Recognized in		Reclassified from	AOCI into Income
Derivative Instrument	AOCI		AOCI into Income	Effective portion		Ineffective portion
Commodity derivatives	$	(116)	Cost of sales - propane and other gas liquids sales	$	(75)	$	—

	For the nine months ended April 30, 2023
				Amount of Loss
	Amount of Loss		Location of Loss	Reclassified from
	Recognized in		Reclassified from	AOCI into Income
Derivative Instrument	AOCI		AOCI into Income	Effective portion		Ineffective portion
Commodity derivatives	$	(53,044)	Cost of sales - propane and other gas liquids sales	$	(7,378)	$	—

Accumulated other comprehensive income

Ferrellgas Partners

The changes in derivatives included in AOCI for the nine months ended April 30, 2024 and 2023 were as follows:

	For the nine months ended April 30,
Gains and losses on derivatives included in AOCI	2024		2023
Beginning balance attributable to Ferrellgas Partners, L.P.	$	1,059	$	37,907
Change in value of risk management commodity derivatives		(116)		(53,044)
Reclassification of losses on commodity hedges to cost of sales - propane and other gas liquids sales, net		75		7,378
Less: amount attributable to noncontrolling interests		—		(461)
Ending balance attributable to Ferrellgas Partners, L.P.	$	1,018	$	(7,298)

The operating partnership

The changes in derivatives included in AOCI for the nine months ended April 30, 2024 and 2023 were as follows:

	For the nine months ended April 30,
Gains and losses on derivatives included in AOCI	2024		2023
Beginning balance	$	1,083	$	38,307
Change in value of risk management commodity derivatives		(116)		(53,044)
Reclassification of losses on commodity hedges to cost of sales - propane and other gas liquids sales, net		75		7,378
Ending balance	$	1,042	$	(7,359)

Ferrellgas expects to reclassify net gains of approximately $1.2 million to earnings during the next 12 months. These net gains are expected to be offset by decreased margins on propane sales commitments Ferrellgas has with its customers that qualify for the normal purchase normal sale exception.

During the nine months ended April 30, 2024 and 2023, Ferrellgas had no reclassifications to operations resulting from the discontinuance of any cash flow hedges arising from the probability of the original forecasted transactions not occurring within the originally specified period of time defined within the hedging relationship.

As of April 30, 2024, Ferrellgas had financial derivative contracts covering 1.8 million barrels of propane that were entered into as cash flow hedges of forward and forecasted purchases of propane.

Derivative financial instruments credit risk

Ferrellgas is exposed to credit loss in the event of nonperformance by counterparties to derivative financial and commodity instruments. Ferrellgas’ counterparties principally consist of major energy companies and major U.S. financial institutions. Ferrellgas maintains credit policies with regard to its counterparties that it believes reduces its overall credit risk. These policies include evaluating and monitoring its counterparties’ financial condition, including their credit ratings, and entering into agreements with counterparties that govern credit limits. Certain of these agreements call for the posting of collateral by the counterparty or by Ferrellgas in the forms of letters of credit, parent guarantees or cash. Ferrellgas has concentrations of credit risk associated with derivative financial instruments held by certain derivative financial instrument counterparties. If these counterparties that make up the concentration failed to perform according to the terms of their contracts at April 30, 2024, the maximum amount of loss due to credit risk that Ferrellgas would incur based upon the gross fair values of the derivative financial instruments is zero.

From time to time Ferrellgas enters into derivative contracts that have credit-risk-related contingent features which dictate credit limits based upon Ferrellgas’ debt rating. There were no open derivative contracts with credit-risk-related contingent features as of April 30, 2024.

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Transactions with related parties

9 Months Ended

Apr. 30, 2024

Transactions with related parties

Transactions with related parties

K.    Transactions with related parties

Ferrellgas has no employees and is managed and controlled by its general partner. Pursuant to Ferrellgas’ partnership agreements, the general partner is entitled to reimbursement for all direct and indirect expenses incurred or payments it makes on behalf of Ferrellgas and all other necessary or appropriate expenses allocable to Ferrellgas or otherwise reasonably incurred by its general partner in connection with operating Ferrellgas’ business. These costs primarily include compensation and benefits paid to employees of the general partner who perform services on Ferrellgas’ behalf and are reported in the condensed consolidated statements of operations as follows:

	For the three months ended April 30,				For the nine months ended April 30,
	2024		2023		2024		2023
Operating expense	$	79,681	$	77,876	$	246,904	$	233,585
General and administrative expense	$	8,435	$	7,869	$	26,113	$	23,528

See additional discussions about transactions with the general partner and related parties in Note G “Equity (Deficit).”

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Contingencies and commitments

9 Months Ended

Apr. 30, 2024

Contingencies and commitments

Contingencies and commitments

L.    Contingencies and commitments

Litigation

Ferrellgas’ operations are subject to all operating hazards and risks normally incidental to the handling, storing, transporting and otherwise providing for use by consumers of combustible liquids such as propane. As a result, at any given time, we can be threatened with or named as a defendant in various lawsuits arising in the ordinary course of business. Other than as discussed below, we are not a party to any legal proceedings other than various claims and lawsuits arising in the ordinary course of business. It is not possible to determine the ultimate disposition of these matters; however, management is of the opinion that there are no known claims or contingent claims that are reasonably expected to have a material adverse effect on our consolidated financial condition, results of operations and cash flows, except that management is continuing to evaluate the potential effects of the recent judgement in the EDPA Lawsuit discussed below.

Ferrellgas and Bridger Logistics, LLC (“Bridger”), were named, along with two former officers (“Rios and Gamboa”), in a lawsuit (the “EDPA Lawsuit”) filed by Eddystone Rail Company (“Eddystone”) on February 2, 2017 in the U.S. District Court for the Eastern District of Pennsylvania (the “Court”). On December 10, 2021, the Court dismissed Eddystone’s claims against Rios and Gamboa, pursuant to a settlement agreement with Eddystone. Eddystone indicated that it has prevailed in or settled an arbitration against Jamex Transfer Services (“JTS”), previously named Bridger Transfer Services, a former subsidiary of Bridger. The arbitration involved a claim against JTS for money due for deficiency payments under a contract for the use of an Eddystone facility used to offload crude from rail onto barges. Eddystone alleges that Ferrellgas transferred assets out of JTS prior to the sale of the membership interest in JTS to Jamex Transfer Holdings, and that those transfers should be avoided so that the assets can be used to satisfy the amount owed by JTS to Eddystone as a result of the arbitration. Eddystone also alleges that JTS was an “alter ego” of Bridger and Ferrellgas and that Bridger and Ferrellgas breached both an implicit contract as well as fiduciary duties allegedly owed to Eddystone as a creditor of JTS.

The Court decided summary judgment motions in March 2022 and the three segments of the bench trial were completed in September 2022, December 2022 and February 2023, respectively. As set by the Court, briefings were held through May 2023 and closing arguments were held in August 2023.

On June 7, 2024, the Court entered an Order and Judgment (the “Judgment”) in the EDPA Lawsuit. The Judgment was in favor of all defendants on Eddystone’s alter ego and fiduciary duty claims. Further, the Judgment was in favor of Ferrellgas, L.P. and certain other defendants on Eddystone’s intentional and constructive fraudulent transfer claims. However, on Eddystone’s intentional and constructive fraudulent transfer claims, Judgment was entered against Bridger Energy, LLC in the amount of $0.9 million, Bridger Transportation, LLC in the amount of $1.4 million, and Ferrellgas Partners, L.P. and Bridger in the amount of $169.3 million. Ferrellgas and the other defendants are evaluating the Judgment and considering their options, including their current intent to appeal. Based on advice it has received from counsel regarding its strong grounds for appeal and the technical merits of the appeal, including what they believe to be misapplication of law, at this time management does not believe a loss is probable, as that term is defined in ASC 450-20, nor does it believe a loss is reasonably estimable. We currently estimate the range of possible loss, if any, to be from $0 to the amount of the Judgment, plus post-Judgment interest. As this evaluation is complex and involves many factors, currently we are not able to determine an amount within the foregoing range that is a better estimate than any other amount. Accrual of a loss contingency is not recorded until a loss is determined to be both probable and reasonably estimable.

Long-term debt related commitments

Ferrellgas has long and short-term payment obligations under agreements such as the indentures governing its senior notes. See Note E “Debt” for a description of these debt obligations and a schedule of future maturities.

Ferrellgas Partners Finance Corp

Contingencies and commitments

Contingencies and commitments

B.    Contingencies and commitments

Partners Finance Corp. serves as co-issuer and co-obligor for debt securities of Ferrellgas Partners. As of April 30, 2024, Ferrellgas Partners had no debt securities outstanding, and Partners Finance Corp. therefore was not liable as co-issuer for any such debt securities.

Ferrellgas Finance Corp

Contingencies and commitments

Contingencies and commitments

B.    Contingencies and commitments

Finance Corp. serves as co-issuer and co-obligor for debt securities of the operating partnership. As of April 30, 2024 and July 31, 2023, Finance Corp. was liable as co-issuer and co-obligor for the operating partnership’s (i) $650 million aggregate principal amount of unsecured senior notes due 2026 and (ii) $825 million aggregate principal amount of unsecured senior notes due 2029, each of which were issued on March 30, 2021.

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Net (loss) earnings per unitholders' interest

9 Months Ended

Apr. 30, 2024

Net (loss) earnings per unitholders' interest

Net (loss) earnings per unitholders' interest

M.    Net (loss) earnings per unitholders’ interest

Below is a calculation of the basic and diluted net (loss) earnings per Class A Unitholders’ interest in the condensed consolidated statements of operations for the periods indicated:

	For the three months ended April 30,				For the nine months ended April 30,
	2024		2023		2024		2023
	(in thousands, except per unit amounts)
Net earnings attributable to Ferrellgas Partners, L.P.	$	52,766	$	72,427	$	130,999	$	165,982
Less: Distributions to preferred unitholders		16,045		15,590		48,546		48,063
Less: Distributions to Class B unitholders		99,996		49,998		99,996		49,998
Less: Allocation of undistributed net earnings to Class B units		—		—		—		49,653
Less: General partner’s interest in net earnings		527		724		1,310		1,660
Undistributed net (loss) earnings attributable to Class A unitholders		(63,802)		6,115		(18,853)		16,608
Weighted average Class A Units outstanding (in thousands)		4,857.6		4,857.6		4,857.6		4,857.6
Basic and diluted net (loss) earnings per Class A Unit	$	(13.13)	$	1.26	$	(3.88)	$	3.42

Class B Units considerations

The Class B Units meet the definition of a participating security and the two-class method is required. For any periods in which earnings are recognized, the earnings will first be allocated 100% to the Class B Units until the allocation equals the cumulative amount of all distributions paid to the Class B Units. Any remaining undistributed net earnings will be allocated between the Class B Units and the Class A Units on a six-to-one basis as if all undistributed earnings had been distributed to each class of units in accordance with their distribution rights. For any periods in which losses are recognized, no effect is given to the Class B Units as they do not contractually participate in the losses of Ferrellgas. In addition, Ferrellgas has the option to redeem all, but not less than all, of the Class B Units outstanding at any time on or prior to March 30, 2026 for cash. This call option does not impact the dilutive effect of net loss per Class A Unit due to the cash-only redemption provision, which is assumed, and therefore there would be no dilutive effect.

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Subsequent events

9 Months Ended

Apr. 30, 2024

Subsequent events

Subsequent events

N.    Subsequent events

Ferrellgas has evaluated events and transactions occurring after the balance sheet date through the date Ferrellgas’ condensed consolidated financial statements were issued and concluded that there were no events or transactions occurring during this period that required recognition or disclosure in its condensed consolidated financial statements, except for the subsequent event described in Note L “Contingencies and commitments.”

Ferrellgas Partners Finance Corp

Subsequent events

Subsequent events

C. Subsequent events

Partners Finance Corp. has evaluated events and transactions occurring after the balance sheet date through the date Partners Finance Corp.’s consolidated financial statements were issued and concluded that there were no events or transactions occurring during this period that required recognition or disclosure in its condensed financial statements.

Ferrellgas Finance Corp

Subsequent events

Subsequent events

C. Subsequent events

Finance Corp. has evaluated events and transactions occurring after the balance sheet date through the date Finance Corp.’s condensed financial statements were issued and concluded that there were no events or transactions occurring during this period that required recognition or disclosure in its condensed financial statements.

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Summary of significant accounting policies (Policy)

9 Months Ended

Apr. 30, 2024

Summary of significant accounting policies

Accounting estimates

(1) Accounting estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from these estimates. Significant estimates impacting the condensed consolidated financial statements include accruals that have been established for contingent liabilities, pending claims and legal actions arising in the normal course of business, useful lives of property, plant and equipment, residual values of tanks, capitalization of customer tank installation costs, amortization methods of intangible assets, valuation methods used to value sales returns and allowances, allowance for expected credit losses, fair value of reporting unit, recoverability of long-lived assets, assumptions used to value business combinations, determination of incremental borrowing rate used to measure right-of-use asset (“ROU asset”) and lease liability, and fair values of derivative contracts.

Goodwill, net

(2) Goodwill, net

Goodwill is tested for impairment annually during the second fiscal quarter, or more frequently if events or changes in circumstances indicate that it is more likely than not the fair value of a reporting unit is less than the carrying value. Ferrellgas has determined that it has one reporting unit for goodwill impairment testing purposes. Ferrellgas completed its most recent annual goodwill impairment test on January 31, 2024 and did not incur an impairment loss.

New accounting standards

(3) New accounting standards

Recently adopted accounting pronouncements

No new accounting standards were adopted during the nine months ended April 30, 2024.

Recently issued accounting pronouncements not yet adopted

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), to improve segment disclosures, primarily through enhanced disclosures for significant segment expenses. ASU 2023-07 does not change how a public entity identifies its operating segments, aggregates those operating segments, or applies quantitative thresholds to determine its reportable segments. The Update is effective on a retrospective basis for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company plans to adopt ASU 2023-07 starting with our Form 10-K for the year ended July 31, 2025, and our quarterly reports on Form 10-Q starting with our quarterly report for the quarter ended October 31, 2025. The adoption of this guidance will impact our disclosures only and we do not expect it to have a material impact.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). In addition to new disclosures associated with the reconciliation of the effective tax rate to the statutory rate, ASU 2023-09 requires information related to taxes paid to be disaggregated for federal and state taxes and further disaggregated for specific jurisdictions to the extent they exceed a quantitative threshold. ASU 2023-09 is effective prospectively with an option for retrospective application for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company plans to adopt ASU 2023-09 as of August 1, 2025. The adoption of this guidance will only impact our disclosures and we do not expect it to have a material impact.

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Supplemental financial statement information (Tables)

9 Months Ended

Apr. 30, 2024

Supplemental Financial Statement Information [Line Items]

Schedule of inventories

	April 30, 2024		July 31, 2023
Propane gas and related products	$	71,813	$	76,996
Appliances, parts and supplies, and other		19,462		21,108
Inventories	$	91,275	$	98,104

Schedule of prepaid expenses and other current assets

	April 30, 2024		July 31, 2023
Broker margin deposit assets	$	4,633	$	11,939
Other		23,637		17,196
Prepaid expenses and other current assets	$	28,270	$	29,135

Schedule of other current liabilities

	April 30, 2024		July 31, 2023
Accrued interest	$	7,536	$	29,011
Customer deposits and advances		28,724		36,226
Accrued payroll		28,219		35,075
Accrued insurance		14,997		15,256
Broker margin deposit liability		4,867		6,972
Accrued senior preferred units distributions		16,935		17,452
Other		52,667		57,038
Other current liabilities	$	153,945	$	197,030

Schedule of shipping and handling expenses

	For the three months ended April 30,				For the nine months ended April 30,
	2024		2023		2024		2023
Operating expense - personnel, vehicle, plant and other	$	76,612	$	78,940	$	222,500	$	218,956
Depreciation and amortization expense		3,407		3,651		9,902		12,962
Operating expense - equipment lease expense		3,313		3,502		10,321		9,039
Shipping and handling expenses	$	83,332	$	86,093	$	242,723	$	240,957

Schedule of cash, cash equivalents and restricted cash

	April 30, 2024		July 31, 2023
Cash and cash equivalents	$	62,862	$	126,221
Restricted cash		10,783		11,126
Cash, cash equivalents and restricted cash	$	73,645	$	137,347

Schedule of cash flow supplemental disclosures

	For the nine months ended April 30,
	2024		2023
Cash paid for:
Interest	$	88,393	$	88,865
Income taxes	$	495	$	713
Non-cash investing and financing activities:
Liabilities incurred in connection with acquisitions	$	1,585	$	3,435
Change in accruals for property, plant and equipment additions	$	1,259	$	331
Lease liabilities arising from operating ROU assets	$	16,526	$	6,254
Lease liabilities arising from finance ROU assets	$	3,884	$	—
Accrued senior preferred units distributions	$	16,935	$	16,870

Ferrellgas, L.P.

Supplemental Financial Statement Information [Line Items]

Schedule of prepaid expenses and other current assets

	April 30, 2024		July 31, 2023
Broker margin deposit assets	$	4,633	$	11,939
Other		23,617		17,174
Prepaid expenses and other current assets	$	28,250	$	29,113

Schedule of other current liabilities

	April 30, 2024		July 31, 2023
Accrued interest	$	7,536	$	29,011
Customer deposits and advances		28,724		36,226
Accrued payroll		28,219		35,075
Accrued insurance		14,997		15,256
Broker margin deposit liability		4,867		6,972
Accrued senior preferred units distributions		16,935		17,452
Other		52,546		56,974
Other current liabilities	$	153,824	$	196,966

Schedule of cash, cash equivalents and restricted cash

	April 30, 2024		July 31, 2023
Cash and cash equivalents	$	62,438	$	126,119
Restricted cash		10,783		11,126
Cash, cash equivalents and restricted cash	$	73,221	$	137,245

Schedule of cash flow supplemental disclosures

	For the nine months ended April 30,
	2024		2023
Cash paid for:
Interest	$	88,393	$	88,865
Income taxes	$	477	$	708
Non-cash investing and financing activities:
Liabilities incurred in connection with acquisitions	$	1,585	$	3,435
Change in accruals for property, plant and equipment additions	$	1,259	$	331
Lease liabilities arising from operating ROU assets	$	16,526	$	6,254
Lease liabilities arising from finance ROU assets	$	3,884	$	—
Accrued senior preferred units distributions	$	16,935	$	16,870

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Accounts and notes receivable, net (Tables)

9 Months Ended

Apr. 30, 2024

Accounts and notes receivable, net

Schedule of accounts and notes receivable

	April 30, 2024		July 31, 2023
Accounts receivable	$	182,177	$	163,537
Note receivable		2,500		2,500
Allowance for expected credit losses		(6,514)		(6,658)
Accounts and notes receivable, net	$	178,163	$	159,379

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Debt (Tables)

9 Months Ended

Apr. 30, 2024

Debt

Schedule of debt components

	April 30, 2024		July 31, 2023
Unsecured senior notes
Fixed rate, 5.375%, due 2026	$	650,000	$	650,000
Fixed rate, 5.875%, due 2029		825,000		825,000
Notes payable
8.3% weighted average interest rate at April 30, 2024 and July 31, 2023, due 2024 to 2029, net of unamortized discount of $1,050 and $1,040 at April 30, 2024 and July 31, 2023, respectively		6,439		6,615
Total debt, excluding unamortized debt issuance and other costs		1,481,439		1,481,615
Unamortized debt issuance and other costs		(18,963)		(22,834)
Less: current portion of long-term debt		2,620		2,597
Long-term debt	$	1,459,856	$	1,456,184

Schedule of financial covenant ratio

Financial Covenant	Ratio
Minimum interest coverage ratio (1)	2.50x
Maximum secured leverage ratio (2)	2.50x
Maximum total net leverage ratio (3) (4)	4.75x

(1) Defined generally as the ratio of adjusted EBITDA to cash interest expense.

(2) Defined generally as the ratio of total first priority secured indebtedness to adjusted EBITDA.

(3) Defined generally as the ratio of total indebtedness (net of unrestricted cash, subject to certain limits) to adjusted EBITDA.

(4) Was 5.25x immediately prior to the quarter ended October 31, 2022 and 5.00x immediately prior to the quarter ended April 30, 2023.

Schedule of annual principal payments on long-term debt

	Scheduled
Payment due by fiscal year	principal payments
2024	$	425
2025		2,510
2026		652,129
2027		1,210
2028		825,810
Thereafter		405
Total	$	1,482,489

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Equity (Deficit) (Tables)

9 Months Ended

Apr. 30, 2024

Limited Partners' Capital Account [Line Items]

Schedule of units conversion

Period	Conversion Factor
March 31, 2024 through March 30, 2025	4.00x
March 31, 2025 through March 30, 2026	5.00x
March 31, 2026 through March 30, 2027	6.00x
March 31, 2027 through March 30, 2028	7.00x
March 31, 2028 through March 30, 2029	10.00x
March 31, 2029 through March 30, 2030	12.00x
March 31, 2030 through March 30, 2031	25.00x

Schedule of limited partner units

	April 30, 2024	July 31, 2023
Public Class A Unitholders (1)	3,480,621	3,480,621
James E. Ferrell (2)	238,172	238,172
Ferrell Companies (3)	1,126,468	1,126,468
FCI Trading Corp. (4)	9,784	9,784
Ferrell Propane, Inc. (5)	2,560	2,560
Total	4,857,605	4,857,605

(1) These Class A Units are traded on the OTC Pink Market under the symbol “FGPR.”

(2) James E. Ferrell was the Chief Executive Officer and President of our general partner and Chairman of the Board of Directors of our general partner through July 31, 2023. Effective August 1, 2023, he became the Executive Chairman of our general partner and the Board of Directors of our general partner. He is a related party. JEF Capital Management owns 237,942 of these Class A Units and is owned by the James E. Ferrell Revocable Trust Two and other family trusts, all of which James E. Ferrell and/or his family members are the trustees and beneficiaries. James E. Ferrell holds all voting common stock of JEF Capital Management. The remaining 230 Class A Units are held by Ferrell Resources Holdings, Inc., which is wholly-owned by the James E. Ferrell Revocable Trust One, for which James E. Ferrell is the trustee and sole beneficiary.

(3) Ferrell Companies is the owner of the general partner and an approximate 23% direct owner of Ferrellgas Partners’ Class A Units and thus a related party. Ferrell Companies also beneficially owns 9,784 and 2,560 Class A Units of Ferrellgas Partners held by FCI Trading Corp. (“FCI Trading”) and Ferrell Propane, Inc. (“Ferrell Propane"), respectively, bringing Ferrell Companies’ total beneficial ownership of Class A Units to 23.4%.

(4) FCI Trading is an affiliate of the general partner and thus a related party.

(5) Ferrell Propane is controlled by the general partner and thus a related party.

Ferrellgas, L.P.

Limited Partners' Capital Account [Line Items]

Schedule of Ferrellgas recognized cash distributions

	For the three months ended April 30,				For the nine months ended April 30,
	2024		2023		2024		2023
Ferrellgas Partners	$	100,000	$	50,000	$	100,000	$	50,000
General partner		1,010		—		1,010		—

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Revenue from contracts with customers (Tables)

9 Months Ended

Apr. 30, 2024

Revenue from contracts with customers

Schedule of disaggregation of revenue

	For the three months ended April 30,				For the nine months ended April 30,
	2024		2023		2024		2023
Retail - Sales to End Users	$	367,300	$	431,538	$	1,033,000	$	1,195,961
Wholesale - Sales to Resellers		119,739		123,532		368,088		388,154
Other Gas Sales		3,018		3,977		12,112		12,662
Other		25,717		28,300		83,464		87,802
Propane and related equipment revenues	$	515,774	$	587,347	$	1,496,664	$	1,684,579

Schedule of receivables, contract assets, and contract liabilities

	April 30, 2024		July 31, 2023
Contract assets	$	13,315	$	10,263
Contract liabilities
Deferred revenue (1)	$	42,305	$	51,516

(1) Of the beginning balance of deferred revenue, $36.9 million was recognized as revenue during the nine months ended April 30, 2024.

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Fair value measurements (Tables)

9 Months Ended

Apr. 30, 2024

Fair value measurements

Schedule of assets and liabilities fair value hierarchy

	Asset (Liability)
	Quoted Prices in Active
	Markets for Identical		Significant Other
	Assets and Liabilities		Observable Inputs		Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
April 30, 2024:
Assets:
Derivative financial instruments:
Commodity derivatives	$	—	$	5,631	$	—	$	5,631
Liabilities:
Derivative financial instruments:
Commodity derivatives	$	—	$	(4,589)	$	—	$	(4,589)
July 31, 2023:
Assets:
Derivative financial instruments:
Commodity derivatives	$	—	$	12,165	$	—	$	12,165
Liabilities:
Derivative financial instruments:
Commodity derivatives	$	—	$	(11,082)	$	—	$	(11,082)

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Derivative instruments and hedging activities (Tables)

9 Months Ended

Apr. 30, 2024

Schedule of fair value of financial derivatives balance sheet locations

	Final	April 30, 2024
	Maturity	Asset Derivatives			Liability Derivatives
Derivative Instrument	Date	Location	Fair value		Location	Fair value
Derivatives designated as hedging instruments	December 2025
Commodity derivatives-propane		Price risk management asset	$	5,398	Other current liabilities	$	4,166
Commodity derivatives-propane		Other assets, net		233	Other liabilities		423
		Total	$	5,631	Total	$	4,589

	Final	July 31, 2023
	Maturity	Asset Derivatives			Liability Derivatives
Derivative Instrument	Date	Location	Fair value		Location	Fair value
Derivatives designated as hedging instruments	December 2024
Commodity derivatives-propane		Price risk management asset	$	11,966	Other current liabilities	$	9,554
Commodity derivatives-propane		Other assets, net		199	Other liabilities		1,528
		Total	$	12,165	Total	$	11,082

Schedule of offsetting assets and liabilities

	April 30, 2024
	Assets			Liabilities
Description	Location	Amount		Location	Amount
Margin Balances	Prepaid expense and other current assets	$	4,633	Other current liabilities	$	4,867
	Other assets, net		1,225	Other liabilities		502
	Total	$	5,858	Total	$	5,369

	July 31, 2023
	Assets			Liabilities
Description	Location	Amount		Location	Amount
Margin Balances	Prepaid expense and other current assets	$	11,939	Other current liabilities	$	6,972
	Other assets, net		1,965	Other liabilities		—
	Total	$	13,904	Total	$	6,972

Schedule of cash flow hedge derivative effect on comprehensive income

	For the three months ended April 30, 2024
				Amount of Gain
	Amount of Loss		Location of Gain	Reclassified from
	Recognized in		Reclassified from	AOCI into Income
Derivative Instrument	AOCI		AOCI into Income	Effective portion		Ineffective portion
Commodity derivatives	$	(1,180)	Cost of sales - propane and other gas liquids sales	$	5,179	$	—

	For the three months ended April 30, 2023
				Amount of Loss
	Amount of Loss		Location of Loss	Reclassified from
	Recognized in		Reclassified from	AOCI into Income
Derivative Instrument	AOCI		AOCI into Income	Effective portion		Ineffective portion
Commodity derivatives	$	(10,621)	Cost of sales - propane and other gas liquids sales	$	(13,450)	$	—

	For the nine months ended April 30, 2024
				Amount of Loss
	Amount of Loss		Location of Loss	Reclassified from
	Recognized in		Reclassified from	AOCI into Income
Derivative Instrument	AOCI		AOCI into Income	Effective portion		Ineffective portion
Commodity derivatives	$	(116)	Cost of sales - propane and other gas liquids sales	$	(75)	$	—

	For the nine months ended April 30, 2023
				Amount of Loss
	Amount of Loss		Location of Loss	Reclassified from
	Recognized in		Reclassified from	AOCI into Income
Derivative Instrument	AOCI		AOCI into Income	Effective portion		Ineffective portion
Commodity derivatives	$	(53,044)	Cost of sales - propane and other gas liquids sales	$	(7,378)	$	—

Schedule of changes in derivatives included in accumulated other comprehensive income

	For the nine months ended April 30,
Gains and losses on derivatives included in AOCI	2024		2023
Beginning balance	$	1,083	$	38,307
Change in value of risk management commodity derivatives		(116)		(53,044)
Reclassification of losses on commodity hedges to cost of sales - propane and other gas liquids sales, net		75		7,378
Ending balance	$	1,042	$	(7,359)

Ferrellgas, L.P.

Schedule of changes in derivatives included in accumulated other comprehensive income

	For the nine months ended April 30,
Gains and losses on derivatives included in AOCI	2024		2023
Beginning balance attributable to Ferrellgas Partners, L.P.	$	1,059	$	37,907
Change in value of risk management commodity derivatives		(116)		(53,044)
Reclassification of losses on commodity hedges to cost of sales - propane and other gas liquids sales, net		75		7,378
Less: amount attributable to noncontrolling interests		—		(461)
Ending balance attributable to Ferrellgas Partners, L.P.	$	1,018	$	(7,298)

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Transactions with related parties (Tables)

9 Months Ended

Apr. 30, 2024

Transactions with related parties

Schedule of allocation of transactions with related parties

	For the three months ended April 30,				For the nine months ended April 30,
	2024		2023		2024		2023
Operating expense	$	79,681	$	77,876	$	246,904	$	233,585
General and administrative expense	$	8,435	$	7,869	$	26,113	$	23,528

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Net (loss) earnings per unitholders' interest (Tables)

9 Months Ended

Apr. 30, 2024

Net (loss) earnings per unitholders' interest

Schedule of basic and diluted net (loss) earnings per unitholders' interest

	For the three months ended April 30,				For the nine months ended April 30,
	2024		2023		2024		2023
	(in thousands, except per unit amounts)
Net earnings attributable to Ferrellgas Partners, L.P.	$	52,766	$	72,427	$	130,999	$	165,982
Less: Distributions to preferred unitholders		16,045		15,590		48,546		48,063
Less: Distributions to Class B unitholders		99,996		49,998		99,996		49,998
Less: Allocation of undistributed net earnings to Class B units		—		—		—		49,653
Less: General partner’s interest in net earnings		527		724		1,310		1,660
Undistributed net (loss) earnings attributable to Class A unitholders		(63,802)		6,115		(18,853)		16,608
Weighted average Class A Units outstanding (in thousands)		4,857.6		4,857.6		4,857.6		4,857.6
Basic and diluted net (loss) earnings per Class A Unit	$	(13.13)	$	1.26	$	(3.88)	$	3.42

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Partnership organization and formation (Details)	9 Months Ended
	Apr. 30, 2024 USD ($) employee state subsidiary shares	Apr. 30, 2023
Partnership organization and formation
Number of subsidiaries | subsidiary	2
Number of employees	0
Ferrellgas Partners LP
Partnership organization and formation
General partner ownership interest	2.00%	2.00%
Ferrellgas Partners LP | Ferrellgas, L.P.
Partnership organization and formation
Limited partner interest	99.00%
Ferrellgas Partners LP | Ferrellgas Partners Finance Corp
Partnership organization and formation
Ownership percentage	100.00%
Ferrell Companies | Ferrellgas Partners LP | Class A Limited Partner Units
Partnership organization and formation
Ownership percentage	23.40%
Ferrellgas Inc., General Partner | Ferrellgas
Partnership organization and formation
General partner ownership interest	2.00%
Ferrellgas Inc., General Partner | Ferrellgas Partners LP
Partnership organization and formation
General partner ownership interest	1.00%
Ferrellgas Inc., General Partner | Ferrellgas, L.P.
Partnership organization and formation
General partner ownership interest	1.0101%	1.0101%
Ferrellgas, L.P.
Partnership organization and formation
Number of states in which entity operates | state	50
Ferrellgas, L.P. | Ferrellgas Finance Corp
Partnership organization and formation
Ownership percentage	100.00%
Ferrellgas Partners Finance Corp
Partnership organization and formation
Corporation formation proceeds from partnership | $	$ 1,000
Corporation formation shares granted to partnership | shares	1,000
Number of employees	0
Ferrellgas Finance Corp
Partnership organization and formation
Corporation formation proceeds from partnership | $	$ 1,000
Corporation formation shares granted to partnership | shares	1,000
Number of employees	0
Ferrellgas Employee Stock Ownership Trust | Ferrell Companies
Partnership organization and formation
Ownership percentage	100.00%

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Summary of significant accounting policies (Details)	9 Months Ended
	Apr. 30, 2024 item
Summary of significant accounting policies
Number of reporting units	1

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Supplemental financial statement information - Inventories (Details) $ in Thousands, gal in Millions	9 Months Ended
	Apr. 30, 2024 USD ($) gal	Jul. 31, 2023 USD ($)
Supplemental financial statement information
Propane gas and related products	$ 71,813	$ 76,996
Appliances, parts and supplies, and other	19,462	21,108
Inventories	$ 91,275	$ 98,104
Supply procurement contract duration	36 months
Net procurement of fixed priced propane by Ferrellgas in gallons | gal	0.6

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Supplemental financial statement information - Prepaid expenses and other current assets (Details) - USD ($) $ in Thousands	Apr. 30, 2024	Jul. 31, 2023
Supplemental Financial Statement Information [Line Items]
Broker margin deposit assets	$ 4,633	$ 11,939
Other	23,637	17,196
Prepaid expenses and other current assets	28,270	29,135
Ferrellgas, L.P.
Supplemental Financial Statement Information [Line Items]
Broker margin deposit assets	4,633	11,939
Other	23,617	17,174
Prepaid expenses and other current assets	$ 28,250	$ 29,113

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Supplemental financial statement information - Other Current Liabilities (Details) - USD ($) $ in Thousands	Apr. 30, 2024	Jul. 31, 2023
Supplemental Financial Statement Information [Line Items]
Accrued interest	$ 7,536	$ 29,011
Customer deposits and advances	28,724	36,226
Accrued payroll	28,219	35,075
Accrued insurance	14,997	15,256
Broker margin deposit liability	4,867	6,972
Accrued senior preferred units distributions	16,935	17,452
Other	52,667	57,038
Other current liabilities	153,945	197,030
Ferrellgas, L.P.
Supplemental Financial Statement Information [Line Items]
Accrued interest	7,536	29,011
Customer deposits and advances	28,724	36,226
Accrued payroll	28,219	35,075
Accrued insurance	14,997	15,256
Broker margin deposit liability	4,867	6,972
Accrued senior preferred units distributions	16,935	17,452
Other	52,546	56,974
Other current liabilities	$ 153,824	$ 196,966

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Supplemental financial statement information - Shipping and Handling (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2024	Apr. 30, 2023	Apr. 30, 2024	Apr. 30, 2023
Supplemental Financial Statement Information [Line Items]
Operating expense - personnel, vehicle, plant and other	$ 150,629	$ 147,477	$ 454,913	$ 434,572
Depreciation and amortization expense	25,340	23,753	74,179	69,453
Operating expense - equipment lease expense	5,275	5,861	15,994	17,471
Shipping and Handling
Supplemental Financial Statement Information [Line Items]
Operating expense - personnel, vehicle, plant and other	76,612	78,940	222,500	218,956
Depreciation and amortization expense	3,407	3,651	9,902	12,962
Operating expense - equipment lease expense	3,313	3,502	10,321	9,039
Shipping and handling expenses	$ 83,332	$ 86,093	$ 242,723	$ 240,957

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Supplemental financial statement information - Cash, Cash Equivalents And Restricted Cash (Details) - USD ($) $ in Thousands	9 Months Ended
	Apr. 30, 2024	Apr. 30, 2023	Jul. 31, 2023	Jul. 31, 2022
Supplemental Financial Statement Information [Line Items]
Cash and cash equivalents	$ 62,862		$ 126,221
Restricted cash	$ 10,783		$ 11,126
Restricted Cash and Cash Equivalents, Statement of Financial Position [Extensible Enumeration]	Cash, cash equivalents and restricted cash		Cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash	$ 73,645	$ 104,657	$ 137,347	$ 158,737
Cash paid for interest	88,393	88,865
Cash paid for income taxes	495	713
Non-cash investing and financing activities:
Liabilities incurred in connection with acquisitions	1,585	3,435
Change in accruals for property, plant and equipment additions	1,259	331
Lease liabilities arising from operating ROU assets	16,526	6,254
Lease liabilities arising from finance ROU assets	3,884
Accrued senior preferred units distributions	16,935	16,870
Ferrellgas, L.P.
Supplemental Financial Statement Information [Line Items]
Cash and cash equivalents	62,438		126,119
Restricted cash	10,783		11,126
Cash, cash equivalents and restricted cash	73,221	104,257	$ 137,245	$ 158,466
Cash paid for interest	88,393	88,865
Cash paid for income taxes	477	708
Non-cash investing and financing activities:
Liabilities incurred in connection with acquisitions	1,585	3,435
Change in accruals for property, plant and equipment additions	1,259	331
Lease liabilities arising from operating ROU assets	16,526	6,254
Lease liabilities arising from finance ROU assets	3,884
Accrued senior preferred units distributions	$ 16,935	$ 16,870

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Accounts and notes receivable, net (Details) - USD ($) $ in Thousands	Apr. 30, 2024	Jul. 31, 2023
Accounts and notes receivable, net
Accounts receivable	$ 182,177	$ 163,537
Note receivable	2,500	2,500
Allowance for expected credit losses	(6,514)	(6,658)
Accounts and notes receivable, net	$ 178,163	$ 159,379

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Debt - Short-Term Borrowings (Details) $ in Millions	Apr. 30, 2024 USD ($)
Revolving Credit Facility
Debt Instrument [Line Items]
Short term borrowing	$ 0.0

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Debt - Components Of Long-Term Debt (Details) - USD ($) $ in Thousands	Apr. 30, 2024	Jul. 31, 2023	Mar. 30, 2021
Schedule of Capitalization, Long-term Debt [Line Items]
Total long-term debt	$ 1,481,439	$ 1,481,615
Unamortized debt issuance and other costs	(18,963)	(22,834)
Less: current portion of long-term debt	2,620	2,597
Long-term debt	1,459,856	1,456,184
Senior Notes 5.375 Percent Due 2026
Schedule of Capitalization, Long-term Debt [Line Items]
Unsecured senior notes	$ 650,000	$ 650,000
Interest rate, as a percent	5.375%	5.375%	5.375%
Senior Notes 5.875 Percent Due 2029
Schedule of Capitalization, Long-term Debt [Line Items]
Unsecured senior notes	$ 825,000	$ 825,000
Interest rate, as a percent	5.875%	5.875%	5.875%
Notes payable Due 2024 to 2029
Schedule of Capitalization, Long-term Debt [Line Items]
Notes payable	$ 6,439	$ 6,615
Unamortized discount	$ 1,050	$ 1,040
Weighted average interest rate (as a percent)	8.30%	8.30%

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Debt - Long-Term Debt Activity (Details) - USD ($) $ in Millions		9 Months Ended
	Mar. 30, 2021	Apr. 30, 2024	Jul. 31, 2023
Revolving Credit Facility
Debt Instrument [Line Items]
Short term borrowing		$ 0.0
Debt Instrument, Term	4 years
Line of Credit Facility, Maximum Borrowing Capacity	$ 350.0
Sublimit, after initial period	300.0
Borrowing base, fixed portion		$ 200.0
Additional capacity, percentage applied to accounts receivable		80.00%
Additional capacity, percentage applied to inventory		70.00%
Revolving Credit Facility | Base Rate
Debt Instrument [Line Items]
Interest rate, as a percent		0.50%
Revolving Credit Facility | SOFR
Debt Instrument [Line Items]
Interest rate, as a percent		1.00%
Revolving Credit Facility | Minimum | SOFR
Debt Instrument [Line Items]
Undrawn funds fee (as a percent)		0.375%
Revolving Credit Facility | Maximum | SOFR
Debt Instrument [Line Items]
Undrawn funds fee (as a percent)		0.50%
Eurodollar Loans | Minimum | SOFR
Debt Instrument [Line Items]
Margin added to variable rate (as a percent)		2.50%
Eurodollar Loans | Maximum | SOFR
Debt Instrument [Line Items]
Margin added to variable rate (as a percent)		3.00%
Non-Eurodollar Loans | Minimum | SOFR
Debt Instrument [Line Items]
Margin added to variable rate (as a percent)		1.50%
Non-Eurodollar Loans | Maximum | SOFR
Debt Instrument [Line Items]
Margin added to variable rate (as a percent)		2.00%
Senior Notes 5.375 Percent Due 2026
Debt Instrument [Line Items]
Aggregate principal amount	$ 650.0
Interest rate, as a percent	5.375%	5.375%	5.375%
Senior Notes 5.875 Percent Due 2029
Debt Instrument [Line Items]
Aggregate principal amount	$ 825.0
Interest rate, as a percent	5.875%	5.875%	5.875%

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Debt - Covenants and Loss on Extinguishment (Details) $ in Millions	3 Months Ended		9 Months Ended
	Apr. 30, 2023	Oct. 31, 2022	Apr. 30, 2024 USD ($) item
Revolving Credit Facility
Debt Instrument [Line Items]
Total net leverage ratio	5.00	5.25
Senior Notes 5.375 Percent Due 2026 And Senior Notes 5.875 Percent Due 2029
Debt Instrument [Line Items]
Number of quarters for required fixed charge coverage ratio			4
Senior Notes 5.375 Percent Due 2026
Debt Instrument [Line Items]
Number of quarters for required fixed charge coverage ratio			4
Minimum | Revolving Credit Facility
Debt Instrument [Line Items]
Interest coverage ratio			2.50
Available capacity necessary for cash distributions | $			$ 50.0
Available capacity as percentage of Borrowing Base, necessary for cash distributions			15.00%
Maximum | Revolving Credit Facility
Debt Instrument [Line Items]
Secured leverage ratio			2.50
Maximum | Senior Notes 5.375 Percent Due 2026 And Senior Notes 5.875 Percent Due 2029
Debt Instrument [Line Items]
Total net leverage ratio			5.0
Maximum | Senior Notes 5.375 Percent Due 2026
Debt Instrument [Line Items]
Required fixed charge coverage ratio			1.75%
Maximum | Debt Covenant, First Specified Period | Revolving Credit Facility
Debt Instrument [Line Items]
Total net leverage ratio			4.75
Maximum | Debt Covenant, Fourth Specified Period | Revolving Credit Facility
Debt Instrument [Line Items]
Total net leverage ratio			4.75

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Debt - Maturities (Details) $ in Thousands	Apr. 30, 2024 USD ($)
Debt
2024	$ 425
2025	2,510
2026	652,129
2027	1,210
2028	825,810
Thereafter	405
Total long-term debt	$ 1,482,489

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Debt - Security (Details) - USD ($) $ in Millions	Apr. 30, 2024	Jul. 31, 2023
Debt Instrument [Line Items]
Letters of credit outstanding	$ 70.2	$ 74.0
Revolving Credit Facility
Debt Instrument [Line Items]
Available borrowing capacity	279.8
Letter of Credit [Member] | Assets subject to lien
Debt Instrument [Line Items]
Other Restricted Assets, Noncurrent	$ 60.6

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Preferred units - Issuance (Details) $ in Millions	Mar. 30, 2021 USD ($) shares
Preferred units
Preferred units issued (in shares) | shares	700,000
Preferred Units aggregate initial liquidation preference | $	$ 700.0

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Preferred units - Issuer Redemption Right (Details) $ / shares in Units, $ in Millions	Apr. 30, 2024 USD ($) $ / shares
Preferred units
Redemption right price percentage MOIC	1.47
Purchase price per Preferred Units | $ / shares	$ 1,000
Redemption right price percentage of IRR	12.25%
Basis point added	150
Partial redemption minimum amount | $	$ 25.0

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Preferred units - Investor Redemption Right (Details)	Apr. 30, 2024 D shares
Temporary Equity [Line Items]
Percentage of preferred units held	33.30%
Percentage of preferred units held by initial affiliated purchasers	25.00%
Days for consummation of sale and payment of redemption price in full | D	180
Class B Limited Partner Units
Temporary Equity [Line Items]
Threshold units outstanding for right to trigger sale	0
Preferred Units
Temporary Equity [Line Items]
Threshold units outstanding for right to trigger sale	233,300
Preferred Units | Maximum
Temporary Equity [Line Items]
Threshold units outstanding for right to fully redeem outstanding units in cash	233,300

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Preferred units - Distributions (Details) - USD ($) $ in Thousands							9 Months Ended
	May 15, 2024	Feb. 15, 2024	Nov. 15, 2023	May 15, 2023	Feb. 15, 2023	Nov. 15, 2022	Apr. 30, 2024	Apr. 30, 2023
Temporary Equity [Line Items]
Quarterly distribution accrued							$ 16,900	$ 16,900
Cash distribution	$ 15,400	$ 15,400	$ 15,400	$ 15,400	$ 15,400	$ 15,300	49,141	48,773
Preferred units additional quarterly distribution accrued							1,500	1,500
Preferred units additional amounts payable pursuant to side letters							$ 2,000	$ 1,700
Cash tax distribution rate							25.00%
Tax rate multiplied by estimated taxable income percentage							0.25%
Additional distribution, percentage of taxable income							20.00%
Additional distribution, divisor							0.8
Minimum
Temporary Equity [Line Items]
Applicable premium distribution rate							0.75
Maximum
Temporary Equity [Line Items]
Applicable premium distribution rate							3
First Five Years After March 30, 2021 | Minimum
Temporary Equity [Line Items]
Preferred units distribution rate							8.956%
First Five Years After March 30, 2021 | Maximum
Temporary Equity [Line Items]
Preferred units distribution rate							11.125%

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Preferred units - Board Rights, Protective Provisions (Details)	Apr. 30, 2024 USD ($) director shares
Preferred units
Minimum preferred units outstanding to designate director to board by unit holders | shares	140,000
Number of director to the Board permitted to designate by unit holders | director	1
Minimum value outstanding for director appointment | $	$ 35,000,000

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Preferred units - Restrictions on Cash Distributions (Details) $ in Millions	Apr. 30, 2024 USD ($)
Temporary Equity [Line Items]
Minimum liquidity	$ 100
Period Thereafter
Temporary Equity [Line Items]
Consolidated net leverage ratio	7.00

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Equity (Deficit) - Reverse Unit Split (Details) - shares	Apr. 30, 2024	Jul. 31, 2023
Class A Limited Partner Units
Limited Partners' Capital Account [Line Items]
Limited partner unitholders, units outstanding	4,857,605	4,857,605

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Equity (Deficit) - Units Issued and Redemption (Details) $ / shares in Units, shares in Millions, $ in Millions	Mar. 30, 2021 USD ($) $ / shares shares	Apr. 30, 2024 director
Limited Partners' Capital Account [Line Items]
Total internal rate of return for redemption	15.85%
Fixed Rate Eight Point Six Two Five Due Two Thousand Twenty
Limited Partners' Capital Account [Line Items]
Aggregate principal amount	$ 357.0
Interest rate, as a percent	8.625%
Class B Limited Partner Units
Limited Partners' Capital Account [Line Items]
Units issued | shares	1.3
Distribution ratio	6
Aggregate distributions before conversion	$ 357.0
Distribution amount	$ 356.0
Basis points of internal rate of return for price determination of units redemption	300
Minimum redemption price per unit | $ / shares	$ 302.08
Option to hold cash period	6 months
Number of independent director to the Board permitted to designate by unit holders | director		1
Initial Majority Holder of Class B Units Holds At Least 50% of Class B Units | Class B Limited Partner Units
Limited Partners' Capital Account [Line Items]
Additional units issued percentage of requisite units held	50.00%
Initial Majority Holder of Class B Units Holds Less Than 50% of Class B Units | Class B Limited Partner Units
Limited Partners' Capital Account [Line Items]
Additional units issued percentage of requisite units held	0.33%

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Equity (Deficit) - Conversion Factor (Details)	Mar. 30, 2021
Post Emergence Year Four
Limited Partners' Capital Account [Line Items]
Conversion factor	4.00
Post Emergence Year Five
Limited Partners' Capital Account [Line Items]
Conversion factor	5.00
Post Emergence Year Six
Limited Partners' Capital Account [Line Items]
Conversion factor	6.00
Post Emergence Year Seven
Limited Partners' Capital Account [Line Items]
Conversion factor	7.00
Post Emergence Year Eight
Limited Partners' Capital Account [Line Items]
Conversion factor	10.00
Post Emergence Year Nine
Limited Partners' Capital Account [Line Items]
Conversion factor	12.00
Post Emergence Year Ten
Limited Partners' Capital Account [Line Items]
Conversion factor	25.00

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Equity (Deficit) - Limited Partner Units (Details) - Class A Limited Partner Units - shares	Apr. 30, 2024	Jul. 31, 2023
Capital Unit [Line Items]
Limited partner unitholders, units outstanding	4,857,605	4,857,605
James E. Ferrell
Capital Unit [Line Items]
Limited partner unitholders, units outstanding	238,172	238,172
Ferrell Companies
Capital Unit [Line Items]
Limited partner unitholders, units outstanding	1,126,468	1,126,468
FCI Trading Corp.
Capital Unit [Line Items]
Limited partner unitholders, units outstanding	9,784	9,784
Ferrell Propane, Inc.
Capital Unit [Line Items]
Limited partner unitholders, units outstanding	2,560	2,560
Public Common Unitholders
Capital Unit [Line Items]
Limited partner unitholders, units outstanding	3,480,621	3,480,621

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Equity (Deficit) - Ownership (Details)	9 Months Ended
	Apr. 30, 2024 shares
Capital Unit [Line Items]
Minimum percentage ownership of outstanding common units resulting in non voting of owners	20.00%
Ferrellgas Partners LP | Ferrell Companies
Capital Unit [Line Items]
Limited partner ownership interest	23.40%
Ferrellgas, L.P.
Capital Unit [Line Items]
Limited partner ownership interest	98.00%
Ferrell Companies | Ferrellgas Partners LP
Capital Unit [Line Items]
Limited partner ownership interest	23.00%
FCI Trading Corp. | Ferrell Companies
Capital Unit [Line Items]
Limited partner unitholders, units outstanding	9,784
Ferrell Propane, Inc. | Ferrell Companies
Capital Unit [Line Items]
Limited partner unitholders, units outstanding	2,560
JEF Capital Management | James E. Ferrell
Capital Unit [Line Items]
Limited partner unitholders, units outstanding	237,942
Ferrell Resources Holdings, Inc. | Ferrellgas Partners LP | James E. Ferrell
Capital Unit [Line Items]
Limited partner unitholders, units outstanding	230
Ferrellgas Partners LP | Ferrellgas, L.P.
Capital Unit [Line Items]
Limited partner ownership interest	99.00%

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Equity (Deficit) - Paid Distributions (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Apr. 09, 2024	Apr. 30, 2024	Apr. 30, 2023	Apr. 30, 2024	Apr. 30, 2023
Limited Partners' Capital Account [Line Items]
General partner distributions				$ 1,000	$ 1,000
Distributions to Class B unitholders	$ 99,900	$ 99,996	$ 49,998
Distributions paid		1,010
Parent [Member]
Limited Partners' Capital Account [Line Items]
Distributions to Class B unitholders		99,996	49,998
Common Unitholders
Limited Partners' Capital Account [Line Items]
Distributions paid			49,900	250,000	49,900
Ferrellgas, L.P.
Limited Partners' Capital Account [Line Items]
Distributions paid		101,010	50,000
Ferrellgas, L.P. | Ferrellgas Inc., General Partner
Limited Partners' Capital Account [Line Items]
Distributions paid		1,010		1,010
Ferrellgas, L.P. | Ferrellgas Partners LP
Limited Partners' Capital Account [Line Items]
Distributions paid		100,000	50,000	$ 100,000	$ 50,000
Ferrellgas, L.P. | Common Unitholders
Limited Partners' Capital Account [Line Items]
Distributions paid		100,000	$ 50,000
Ferrellgas, L.P. | General Partner
Limited Partners' Capital Account [Line Items]
Distributions paid		$ 1,010

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Equity (Deficit) - Contributions and AOCI (Details) - USD ($)	3 Months Ended						9 Months Ended
	Apr. 30, 2024	Jan. 31, 2024	Oct. 31, 2023	Apr. 30, 2023	Jan. 31, 2023	Oct. 31, 2022	Apr. 30, 2024	Apr. 30, 2023
Capital Unit [Line Items]
Contributions in connection with non-cash ESOP compensation charges	$ 880,000	$ 900,000	$ 720,000	$ 767,000	$ 722,000	$ 723,000
Ferrellgas Partners LP
Capital Unit [Line Items]
General partner ownership interest							2.00%	2.00%
General Partner
Capital Unit [Line Items]
Contributions in connection with non-cash ESOP compensation charges	9,000	9,000	7,000	8,000	7,000	7,000
Ferrellgas, L.P.
Capital Unit [Line Items]
Non-cash contribution							$ 50,000.0	$ 44,000.0
Contributions in connection with non-cash ESOP compensation charges	880,000	900,000	720,000	767,000	722,000	723,000
Ferrellgas, L.P. | General Partner
Capital Unit [Line Items]
Contributions in connection with non-cash ESOP compensation charges	$ 9,000	$ 9,000	$ 7,000	$ 7,000	$ 8,000	$ 7,000	$ 25,000.0	$ 22,000.0
Ferrellgas Inc., General Partner | Ferrellgas, L.P.
Capital Unit [Line Items]
General partner ownership interest							1.0101%	1.0101%
Ferrellgas Inc., General Partner | Ferrellgas Partners LP
Capital Unit [Line Items]
General partner ownership interest							1.00%

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Revenue from contracts with customers (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2024	Apr. 30, 2023	Apr. 30, 2024	Apr. 30, 2023	Jul. 31, 2023
Revenue from contracts with customers
Total revenues	$ 515,774	$ 587,347	$ 1,496,664	$ 1,684,579
Contract assets and liabilities
Contract assets	13,315		13,315		$ 10,263
Contract liabilities
Deferred revenue	$ 42,305		42,305		$ 51,516
Deferred revenue recognized			$ 36,900
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-11-01
Contract liabilities
Remaining performance obligation recognition period	1 year		1 year
Propane and related equipment revenues
Revenue from contracts with customers
Total revenues	$ 515,774	587,347	$ 1,496,664	1,684,579
Retail - Sales to End Users
Revenue from contracts with customers
Total revenues	367,300	431,538	1,033,000	1,195,961
Wholesale - Sales to Resellers
Revenue from contracts with customers
Total revenues	119,739	123,532	368,088	388,154
Other Gas Sales
Revenue from contracts with customers
Total revenues	3,018	3,977	12,112	12,662
Other
Revenue from contracts with customers
Total revenues	$ 25,717	$ 28,300	$ 83,464	$ 87,802

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Fair value measurements - Assets and Liabilities (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Apr. 30, 2024	Jul. 31, 2023
Fair value measurements
Commodity derivatives propane swap assets	$ 5,631	$ 12,165
Commodity derivatives propane swap liabilities	(4,589)	(11,082)
Level 1
Fair value measurements
Commodity derivatives propane swap assets	0	0
Commodity derivatives propane swap liabilities	0	0
Level 2
Fair value measurements
Commodity derivatives propane swap assets	5,631	12,165
Commodity derivatives propane swap liabilities	(4,589)	(11,082)
Level 3
Fair value measurements
Commodity derivatives propane swap assets	0	0
Commodity derivatives propane swap liabilities	$ 0	$ 0

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Fair value measurements - Other Financial Instruments (Details) - USD ($) $ in Millions	Apr. 30, 2024	Jul. 31, 2023
Level 2
Fair value measurements
Long-term debt, fair value	$ 1,417.1	$ 1,318.9

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Derivative instruments and hedging activities - Balance Sheet (Details) - USD ($) $ in Thousands	9 Months Ended
	Apr. 30, 2024	Apr. 30, 2023	Jul. 31, 2023
Derivative instruments and hedging activities
Gain (loss) recognized due to ineffectiveness	$ 0	$ 0
Derivative Asset, Fair Value, Gross Asset	5,631		$ 12,165
Derivative Liability, Fair Value, Gross Liability	4,589		11,082
Price risk management asset
Derivative instruments and hedging activities
Commodity derivatives propane swap assets	5,398		11,966
Other Current Liabilities
Derivative instruments and hedging activities
Commodity derivatives propane swap liabilities	4,166		9,554
Other Assets, Net
Derivative instruments and hedging activities
Commodity derivatives propane swap assets	233		199
Other Liabilities
Derivative instruments and hedging activities
Commodity derivatives propane swap liabilities	$ 423		$ 1,528

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Derivative instruments and hedging activities - Margin Balances (Details) - USD ($) $ in Thousands	Apr. 30, 2024	Jul. 31, 2023
Derivative instruments and hedging activities
Derivative Asset, Fair Value of Collateral	$ 5,858	$ 13,904
Derivative Liability, Fair Value of Collateral	5,369	6,972
Prepaid Expenses and Other Current Assets
Derivative instruments and hedging activities
Derivative Asset, Fair Value of Collateral	4,633	11,939
Other Current Liabilities
Derivative instruments and hedging activities
Derivative Liability, Fair Value of Collateral	4,867	6,972
Other Assets, Net
Derivative instruments and hedging activities
Derivative Asset, Fair Value of Collateral	1,225	$ 1,965
Other Liabilities
Derivative instruments and hedging activities
Derivative Liability, Fair Value of Collateral	$ 502

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Derivative instruments and hedging activities - Effect on Comprehensive Income and Change in FV (Details) - Commodity Derivatives Propane - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2024	Apr. 30, 2023	Apr. 30, 2024	Apr. 30, 2023
Derivative instruments and hedging activities
Amount of gain (loss) recognized in AOCI on derivative	$ (1,180)	$ (10,621)	$ (116)	$ (53,044)
Cost of Sales
Derivative instruments and hedging activities
Amount of gain (loss) reclassified from AOCI into income	$ 5,179	$ (13,450)	$ (75)	$ (7,378)

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Derivative instruments and hedging activities - AOCI Rollforward (Details) MMBbls in Millions	3 Months Ended		9 Months Ended
	Apr. 30, 2024 USD ($)	Apr. 30, 2023 USD ($)	Apr. 30, 2024 USD ($) MMBbls	Apr. 30, 2023 USD ($)
Derivative instruments and hedging activities
Partners' capital balance, beginning	$ (844,654,000)	$ (873,156,000)	$ (898,791,000)	$ (887,811,000)
Change in value of risk management commodity derivatives	(1,180,000)	(10,621,000)	(116,000)	(53,044,000)
Reclassification of losses on commodity hedges to cost of sales - propane and other gas liquids sales, net	(5,179,000)	13,450,000	75,000	7,378,000
Partners' capital balance, ending	(914,046,000)	(862,141,000)	(914,046,000)	(862,141,000)
Reclassification of net gain to earnings during next 12 months			1,200,000
Gain (loss) on discontinuation of cash flow hedge due to forecasted transaction probable of not occurring, net			$ 0	0
Number of barrels of propane covered by cash flow hedges | MMBbls			1.8
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest
Derivative instruments and hedging activities
Partners' capital balance, beginning			$ 1,059,000	37,907,000
Change in value of risk management commodity derivatives			(116,000)	(53,044,000)
Reclassification of losses on commodity hedges to cost of sales - propane and other gas liquids sales, net			75,000	7,378,000
Less: amount attributable to noncontrolling interests				(461,000)
Partners' capital balance, ending	1,018,000	(7,298,000)	1,018,000	(7,298,000)
Ferrellgas, L.P.
Derivative instruments and hedging activities
Partners' capital balance, beginning	(844,698,000)	(873,172,000)	(898,851,000)	(887,826,000)
Change in value of risk management commodity derivatives	(1,180,000)	(10,621,000)	(116,000)	(53,044,000)
Reclassification of losses on commodity hedges to cost of sales - propane and other gas liquids sales, net	(5,179,000)	13,450,000	75,000	7,378,000
Partners' capital balance, ending	(914,369,000)	(862,199,000)	(914,369,000)	(862,199,000)
Ferrellgas, L.P. | Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest
Derivative instruments and hedging activities
Partners' capital balance, beginning			1,083,000	38,307,000
Change in value of risk management commodity derivatives			(116,000)	(53,044,000)
Reclassification of losses on commodity hedges to cost of sales - propane and other gas liquids sales, net			75,000	7,378,000
Partners' capital balance, ending	$ 1,042,000	$ (7,359,000)	$ 1,042,000	$ (7,359,000)

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Derivative instruments and hedging activities- Credit Risk (Details)	Apr. 30, 2024 USD ($)
Derivative instruments and hedging activities
Maximum loss due to credit risk	$ 0
Open derivative contracts with credit risk features	$ 0

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Transactions with related parties (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2024 USD ($) employee	Apr. 30, 2023 USD ($)	Apr. 30, 2024 USD ($) employee	Apr. 30, 2023 USD ($)
Transactions with related parties
Number of employees | employee	0		0
Ferrellgas Inc., General Partner
Transactions with related parties
Operating expense	$ 79,681	$ 77,876	$ 246,904	$ 233,585
General and administrative expense	$ 8,435	$ 7,869	$ 26,113	$ 23,528

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Contingencies and commitments (Details) - USD ($) $ in Millions	Jun. 07, 2024	Apr. 30, 2024	Jul. 31, 2023
Minimum | Subsequent Event
Contingencies and commitments
Range of possible loss	$ 0.0
Ferrellgas Partners Finance Corp
Contingencies and commitments
Debt securities outstanding		$ 0.0
Ferrellgas Finance Corp | Senior Notes 5.375 Percent Due 2026
Contingencies and commitments
Liability as co-issuer		650.0	$ 650.0
Ferrellgas Finance Corp | Senior Notes 5.875 Percent Due 2029
Contingencies and commitments
Liability as co-issuer		$ 825.0	$ 825.0

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Net (loss) earnings per unitholders' interest (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2024	Apr. 30, 2023	Apr. 30, 2024	Apr. 30, 2023
Earnings Distribution Allocation [Line Items]
Net earnings attributable to Ferrellgas Partners, L.P.	$ 52,766	$ 72,427	$ 130,999	$ 165,982
Less: Allocation of undistributed net earnings to Class B units				49,653
Less: General partner's interest in net earnings (loss)	527	724	1,310	1,660
Undistributed net (loss) earnings attributable to Class A unitholders	(63,802)	6,115	$ (18,853)	16,608
Allocation of earnings to Class B units relative to allocation to Class A units			6
Preferred Units
Earnings Distribution Allocation [Line Items]
Less: Distributions to preferred unitholders	$ 16,045	$ 15,590	$ 48,546	$ 48,063
Class A Limited Partner Units
Earnings Distribution Allocation [Line Items]
Weighted average Class A Units outstanding (in thousands)	4,857,600	4,857,600	4,857,600	4,857,600
Basic and diluted net (loss) earnings per Class A Unit	$ (13.13)	$ 1.26	$ (3.88)	$ 3.42
Class B Limited Partner Units
Earnings Distribution Allocation [Line Items]
Less: Distributions to preferred unitholders	$ 99,996	$ 49,998	$ 99,996	$ 49,998
Percentage of allocated earnings			100.00%

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Subsequent events (Details) - USD ($) $ in Millions	9 Months Ended
	Apr. 30, 2024	Mar. 30, 2021
Subsequent events
Events or transactions	no
Revolving Credit Facility
Subsequent events
Line of Credit Facility, Maximum Borrowing Capacity		$ 350.0
Ferrellgas Partners Finance Corp
Subsequent events
Events or transactions	no
Ferrellgas Finance Corp
Subsequent events
Events or transactions	no

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2024	Apr. 30, 2023	Apr. 30, 2024	Apr. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 52,766	$ 72,427	$ 130,999	$ 165,982

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Insider Trading Arrangements	3 Months Ended
	Apr. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Rule 10b5-1 Arrangement Modified [Flag]	false
Non-Rule 10b5-1 Arrangement Modified [Flag]	false