Guarantor financial information

The $500.0 million aggregate principal amount of 6.75% senior notes due 2023 co-issued by Ferrellgas, L.P. and Ferrellgas Finance Corp. are fully and unconditionally and jointly and severally guaranteed by all of Ferrellgas, L.P.’s 100% owned subsidiaries except: i) Ferrellgas Finance Corp; ii) certain special purposes subsidiaries formed for use in connection with our accounts receivable securitization; and iii) foreign subsidiaries. Guarantees of these senior notes will be released under certain circumstances, including (i) in connection with any sale or other disposition of (a) all or substantially all of the assets of a guarantor or (b) all of the capital stock of such guarantor (including by way of merger or consolidation), in each case, to a person that is not Ferrellgas, L.P. or a restricted subsidiary of Ferrellgas, L.P., (ii) if Ferrellgas, L.P. designates any restricted subsidiary that is a guarantor as an unrestricted subsidiary, (iii) upon defeasance or discharge of the notes, (iv) upon the liquidation or dissolution of such guarantor, or (v) at such time as such guarantor ceases to guarantee any other indebtedness of either of the issuers and any other guarantor.

The guarantor financial information discloses in separate columns the financial position, results of operations and the cash flows of Ferrellgas, L.P. (Parent), Ferrellgas Finance Corp. (co-issuer), Ferrellgas L.P.’s guarantor subsidiaries on a combined basis, and Ferrellgas L.P.’s non-guarantor subsidiaries on a combined basis. The dates and the periods presented in the guarantor financial information are consistent with the periods presented in Ferrellgas, L.P.’s consolidated financial statements.



FERRELLGAS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
(in thousands)
	As of October 31, 2016
	Ferrellgas, L.P. (Parent and Co-Issuer)			Ferrellgas Finance Corp. (Co-Issuer)		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	12,368		$	1	$	196		$	—		$	—		$	12,565
Accounts and notes receivable	(9,133		)	—		56,051			101,365			—			148,283
Intercompany receivables	21,421			—		—			—			(21,421		)	—
Inventories	79,814			—		20,482			—			—			100,296
Prepaid expenses and other current assets	22,616			—		9,185			2			—			31,803
Total current assets	127,086			1		85,914			101,367			(21,421		)	292,947

Property, plant and equipment, net	550,113			—		207,827			—			—			757,940
Goodwill	246,098			—		10,005			—			—			256,103
Intangible assets, net	137,625			—		134,406			—			—			272,031
Intercompany receivables	450,000			—		—			—			(450,000		)	—
Investments in consolidated subsidiaries	1,890			—		—			—			(1,890		)	—
Other assets, net	38,168			—		49,282			653			—			88,103
Total assets	$	1,550,980		$	1	$	487,434		$	102,020		$	(473,311	)	$	1,667,124

LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Current liabilities:
Accounts payable	$	41,161		$	—	$	33,627		$	—		$	—		$	74,788
Short-term borrowings	96,824			—		—			—			—			96,824
Collateralized note payable	—			—		—			74,000			—			74,000
Intercompany payables	—			—		36,798			(15,377		)	(21,421		)	—
Other current liabilities	161,172			—		3,293			132			—			164,597
Total current liabilities	299,157			—		73,718			58,755			(21,421		)	410,209

Long-term debt	1,783,634			—		451,026			—			(450,000		)	1,784,660
Other liabilities	28,689			—		3,841			225			—			32,755
Contingencies and commitments

Partners' capital (deficit):
Partners' equity	(559,316		)	1		(40,504		)	42,715			(2,212		)	(559,316		)
Accumulated other comprehensive income (loss)	(1,184		)	—		(647		)	325			322			(1,184		)
Total partners' capital (deficit)	(560,500		)	1		(41,151		)	43,040			(1,890		)	(560,500		)
Total liabilities and partners' capital (deficit)	$	1,550,980		$	1	$	487,434		$	102,020		$	(473,311	)	$	1,667,124



FERRELLGAS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
(in thousands)
	As of July 31, 2016
	Ferrellgas, L.P. (Parent and Co-Issuer)			Ferrellgas Finance Corp. (Co-Issuer)		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	4,472		$	1	$	417		$	—		$	—		$	4,890
Accounts and notes receivable	(2,703		)	—		45,822			106,464			—			149,583
Intercompany receivables	34,089			—		—			—			(34,089		)	—
Inventories	71,422			—		19,172			—			—			90,594
Prepaid expenses and other current assets	27,922			2		12,029			2			—			39,955
Total current assets	135,202			3		77,440			106,466			(34,089		)	285,022

Property, plant and equipment, net	557,460			—		217,220			—			—			774,680
Goodwill	246,098			—		10,005			—			—			256,103
Intangible assets, net	141,794			—		138,391			—			—			280,185
Intercompany receivables	450,000			—		—			—			(450,000		)	—
Investments in consolidated subsidiaries	3,630			—		—			—			(3,630		)	—
Other assets, net	37,742			—		49,016			465			—			87,223
Total assets	$	1,571,926		$	3	$	492,072		$	106,931		$	(487,719	)	$	1,683,213

LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Current liabilities:
Accounts payable	$	33,781		$	—	$	34,147		$	—		$	—		$	67,928
Short-term borrowings	101,291			—		—			—			—			101,291
Collateralized note payable	—			—		—			64,000			—			64,000
Intercompany payables	—			—		35,491			(1,402		)	(34,089		)	—
Other current liabilities	119,048			—		7,754			150			—			126,952
Total current liabilities	254,120			—		77,392			62,748			(34,089		)	360,171

Long-term debt	1,759,868			—		451,013			—			(450,000		)	1,760,881
Other liabilities	27,351			—		3,998			225			—			31,574
Contingencies and commitments

Partners' capital (deficit):
Partners' equity	(458,853		)	3		(39,684		)	43,633			(3,952		)	(458,853		)
Accumulated other comprehensive income (loss)	(10,560		)	—		(647		)	325			322			(10,560		)
Total partners' capital (deficit)	(469,413		)	3		(40,331		)	43,958			(3,630		)	(469,413		)
Total liabilities and partners' capital (deficit)	$	1,571,926		$	3	$	492,072		$	106,931		$	(487,719	)	$	1,683,213



FERRELLGAS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(in thousands)

	For the three months ended October 31, 2016
	Ferrellgas, L.P. (Parent and Co-Issuer)			Ferrellgas Finance Corp. (Co-Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated

Revenues:
Propane and other gas liquids sales	$	242,399		$	—		$	—		$	—		$	—		$	242,399
Midstream operations	—			—			108,044			—			—			108,044
Other	17,326			—			11,773			—			—			29,099
Total revenues	259,725			—			119,817			—			—			379,542

Costs and expenses:
Cost of sales - propane and other gas liquids sales	119,212			—			—			—			—			119,212
Cost of sales - midstream operations	—			—			94,642			—			—			94,642
Cost of sales - other	2,430			—			9,316			—			—			11,746
Operating expense	97,655			—			10,246			(2,105		)	(710		)	105,086
Depreciation and amortization expense	18,277			—			7,872			53			—			26,202
General and administrative expense	12,863			2			1,404			—			—			14,269
Equipment lease expense	7,210			—			139			—			—			7,349
Non-cash employee stock ownership plan compensation charge	3,754			—			—			—			—			3,754
Loss on asset sales and disposal	1,447			—			4,976			—			—			6,423

Operating income (loss)	(3,123		)	(2		)	(8,778		)	2,052			710			(9,141		)

Interest expense	(20,352		)	—			(10,673		)	(370		)	(3		)	(31,398		)
Other income (expense), net	(47		)	—			555			707			(707		)	508

Earnings (loss) before income taxes	(23,522		)	(2		)	(18,896		)	2,389			—			(40,031		)

Income tax benefit	(29		)	—			(562		)	—			—			(591		)
Equity in earnings of subsidiary	(15,947		)	—			—			—			15,947			—

Net earnings (loss)	(39,440		)	(2		)	(18,334		)	2,389			15,947			(39,440		)

Other comprehensive income	9,376			—			—			—			—			9,376

Comprehensive income (loss)	$	(30,064	)	$	(2	)	$	(18,334	)	$	2,389		$	15,947		$	(30,064	)



FERRELLGAS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(in thousands)

	For the three months ended October 31, 2015
	Ferrellgas, L.P. (Parent and Co-Issuer)			Ferrellgas Finance Corp. (Co-Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated

Revenues:
Propane and other gas liquids sales	$	245,301		$	—		$	—		$	—		$	—		$	245,301
Midstream operations	—			—			193,670			—			—			193,670
Other	17,377			—			14,798			—			—			32,175
Total revenues	262,678			—			208,468			—			—			471,146

Costs and expenses:
Cost of sales - propane and other gas liquids sales	121,748			—			3			—			—			121,751
Cost of sales - midstream operations	—			—			153,604			—			—			153,604
Cost of sales - other	2,538			—			11,910			—			—			14,448
Operating expense	96,974			—			17,659			2,370			(804		)	116,199
Depreciation and amortization expense	18,550			—			18,429			—			—			36,979
General and administrative expense	17,429			3			1,712			—			—			19,144
Equipment lease expense	6,882			—			150			—			—			7,032
Non-cash employee stock ownership plan compensation charge	5,256			—			—			—			—			5,256
Asset impairments	—			—			29,316			—			—			29,316
Loss on asset sales and disposal	1,545			—			13,372			—			—			14,917

Operating income (loss)	(8,244		)	(3		)	(37,687		)	(2,370		)	804			(47,500		)

Interest expense	(18,521		)	—			(10,688		)	(441		)	(108		)	(29,758		)
Other income (expense), net	(122		)	—			—			696			(696		)	(122		)

Loss before income taxes	(26,887		)	(3		)	(48,375		)	(2,115		)	—			(77,380		)

Income tax expense (benefit)	168			—			(1,012		)	—			—			(844		)
Equity in earnings of subsidiary	(49,481		)	—			—			—			49,481			—

Net earnings (loss)	(76,536		)	(3		)	(47,363		)	(2,115		)	49,481			(76,536		)

Other comprehensive income	8,610			—			—			—			—			8,610

Comprehensive income (loss)	$	(67,926	)	$	(3	)	$	(47,363	)	$	(2,115	)	$	49,481		$	(67,926	)



FERRELLGAS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
(in thousands)

	For the three months ended October 31, 2016
	Ferrellgas, L.P. (Parent and Co-Issuer)			Ferrellgas Finance Corp. (Co-Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	79,220		$	(2	)	$	(15,354	)	$	687		$	(10,000	)	$	54,551

Cash flows from investing activities:
Capital expenditures	(10,000		)	—			(5		)	—			—			(10,005		)
Proceeds from sale of assets	2,279			—			—			—			—			2,279
Cash collected for purchase of interest in accounts receivable	—			—			—			183,939			(183,939		)	—
Cash remitted to Ferrellgas, L.P for accounts receivable	—			—			—			(193,939		)	193,939			—
Net changes in advances with consolidated entities	(14,453		)	—			—			—			14,453			—
Net cash provided by (used in) investing activities	(22,174		)	—			(5		)	(10,000		)	24,453			(7,726		)

Cash flows from financing activities:
Distributions	(66,658		)	—			—			—			—			(66,658		)
Proceeds from increase in long-term debt	25,626			—			—			—			—			25,626
Reductions in long-term debt	(2,261		)	—			—			—			—			(2,261		)
Net reductions in short-term borrowings	(4,467		)	—			—			—			—			(4,467		)
Net additions to collateralized short-term borrowings	—			—			—			10,000			—			10,000
Net changes in advances with parent	—			2			15,138			(687		)	(14,453		)	—
Cash paid for financing costs	(1,390		)	—			—			—			—			(1,390		)
Net cash provided by (used in) financing activities	(49,150		)	2			15,138			9,313			(14,453		)	(39,150		)

Effect of exchange rate changes on cash	—			—			—			—			—			—

Increase (decrease) in cash and cash equivalents	7,896			—			(221		)	—			—			7,675
Cash and cash equivalents - beginning of year	4,472			1			417			—			—			4,890
Cash and cash equivalents - end of year	$	12,368		$	1		$	196		$	—		$	—		$	12,565



FERRELLGAS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
(in thousands)

	For the three months ended October 31, 2015
	Ferrellgas, L.P. (Parent and Co-Issuer)			Ferrellgas Finance Corp. (Co-Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	12,807		$	(3	)	$	22,041		$	5,801		$	2,000		$	42,646

Cash flows from investing activities:
Business acquisitions, net of cash acquired	—			—			—			—			—			—
Capital expenditures	(14,674		)	—			(10,933		)	—			—			(25,607		)
Proceeds from sale of assets	1,013			—			2,562			—			—			3,575
Cash collected for purchase of interest in accounts receivable	—			—			—			186,280			(186,280		)	—
Cash remitted to Ferrellgas, L.P for accounts receivable	—			—			—			(184,280		)	184,280			—
Net changes in advances with consolidated entities	16,908			—			—			—			(16,908		)	—
Other	(14		)	—			—			—			—			(14		)
Net cash provided by (used in) investing activities	3,233			—			(8,371		)	2,000			(18,908		)	(22,046		)

Cash flows from financing activities:
Distributions	(52,493		)	—			—			—			—			(52,493		)
Contributions from Partners	30			—			—			—			—			30
Proceeds from increase in long-term debt	21,321			—			—			—			—			21,321
Reductions in long-term debt	(4,380		)	—			—			—			—			(4,380		)
Net additions to short-term borrowings	20,072			—			—			—			—			20,072
Net reductions in collateralized short-term borrowings	—			—			—			(2,000		)	—			(2,000		)
Net changes in advances with parent	—			3			(11,112		)	(5,799		)	16,908			—
Cash paid for financing costs	(142		)	—			—			—			—			(142		)
Net cash provided by (used in) financing activities	(15,592		)	3			(11,112		)	(7,799		)	16,908			(17,592		)

Effect of exchange rate changes on cash	2			—			—			(2		)	—			—

Increase in cash and cash equivalents	450			—			2,558			—			—			3,008
Cash and cash equivalents - beginning of year	5,579			1			20			—			—			5,600
Cash and cash equivalents - end of year	$	6,029		$	1		$	2,578		$	—		$	—		$	8,608