Guarantor financial information

The $500.0 million aggregate principal amount of registered 6.75% senior notes due 2023 co-issued by Ferrellgas, L.P. and Ferrellgas Finance Corp. are fully and unconditionally and joint 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 July 31, 2017
	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	$	5,327		$	1	$	373		$	—		$	—		$	5,701
Accounts and notes receivable	(3,132		)	—		58,618			109,598			—			165,084
Intercompany receivables	39,877			—		—			—			(39,877		)	—
Inventories	78,963			—		13,589			—			—			92,552
Prepaid expenses and other current assets	26,106			—		7,314			6			—			33,426
Total current assets	147,141			1		79,894			109,604			(39,877		)	296,763

Property, plant and equipment, net	537,582			—		194,341			—			—			731,923
Goodwill	246,098			—		10,005			—			—			256,103
Intangible assets, net	128,209			—		122,893			—			—			251,102
Intercompany receivables	450,000			—		—			—			(450,000		)	—
Investments in consolidated subsidiaries	(53,915		)	—		—			—			53,915			—
Other assets, net	35,862			—		37,618			577			—			74,057
Total assets	$	1,490,977		$	1	$	444,751		$	110,181		$	(435,962	)	$	1,609,948

LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Current liabilities:
Accounts payable	$	44,026		$	—	$	41,345		$	190		$	—		$	85,561
Short-term borrowings	59,781			—		—			—			—			59,781
Collateralized note payable	—			—		—			69,000			—			69,000
Intercompany payables	—			—		41,645			(1,768		)	(39,877		)	—
Other current liabilities	118,039			—		3,776			201			—			122,016
Total current liabilities	221,846			—		86,766			67,623			(39,877		)	336,358

Long-term debt	1,649,139			—		450,131			—			(450,000		)	1,649,270
Other liabilities	26,790			—		4,300			28			—			31,118
Contingencies and commitments

Partners' capital (deficit):
Partners' equity	(421,562		)	1		(96,446		)	42,530			53,915			(421,562		)
Accumulated other comprehensive income	14,764			—		—			—			—			14,764
Total partners' capital (deficit)	(406,798		)	1		(96,446		)	42,530			53,915			(406,798		)
Total liabilities and partners' capital (deficit)	$	1,490,977		$	1	$	444,751		$	110,181		$	(435,962	)	$	1,609,948



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 year ended July 31, 2017
	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	$	1,318,412		$	—		$	—		$	—		$	—		$	1,318,412
Midstream operations	—			—			466,703			—			—			466,703
Other	69,962			—			75,200			—			—			145,162
Total revenues	1,388,374			—			541,903			—			—			1,930,277

Costs and expenses:
Cost of sales - propane and other gas liquids sales	694,155			—			—			—			—			694,155
Cost of sales - midstream operations	—			—			429,439			—			—			429,439
Cost of sales - other	8,473			—			58,794			—			—			67,267
Operating expense	398,584			—			38,188			95			(4,455		)	432,412
Depreciation and amortization expense	72,919			—			30,183			249			—			103,351
General and administrative expense	44,810			5			4,663			—			—			49,478
Equipment lease expense	28,560			—			564			—			—			29,124
Non-cash employee stock ownership plan compensation charge	15,088			—			—			—			—			15,088
Loss on asset sales and disposal	9,198			—			5,259			—			—			14,457

Operating income (loss)	116,587			(5		)	(25,187		)	(344		)	4,455			95,506
										—			—
Interest expense	(80,866		)	—			(43,839		)	(2,480		)	(3		)	(127,188		)
Other income (expense), net	850			—			624			4,452			(4,452		)	1,474

Earnings (loss) before income taxes	36,571			(5		)	(68,402		)	1,628			—			(30,208		)

Income tax expense (benefit)	217			—			(1,366		)	—			—			(1,149		)
Equity in earnings (loss) of subsidiaries	(65,413		)	—			—			—			65,413			—

Net earnings (loss)	(29,059		)	(5		)	(67,036		)	1,628			65,413			(29,059		)

Other comprehensive income	25,324			—			—			—			—			25,324

Comprehensive income (loss)	$	(3,735	)	$	(5	)	$	(67,036	)	$	1,628		$	65,413		$	(3,735	)



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

	For the year ended July 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	$	1,202,368		$	—		$	—		$	—		$	—		$	1,202,368
Midstream operations	—			—			625,238			—			—			625,238
Other	73,200			—			138,561			—			—			211,761
Total revenues	1,275,568			—			763,799			—			—			2,039,367

Costs and expenses:
Cost of sales - propane and other gas liquids sales	564,433			—			—			—			—			564,433
Cost of sales - midstream operations	(1,545		)	—			472,779			—			—			471,234
Cost of sales - other	8,867			—			117,370			—			—			126,237
Operating expense	399,680			—			58,789			4,028			(3,319		)	459,178
Depreciation and amortization expense	75,059			—			75,212			242			—			150,513
General and administrative expense	50,592			7			5,516			—			—			56,115
Equipment lease expense	28,322			—			511			—			—			28,833
Non-cash employee stock ownership plan compensation charge	27,595			—			—			—			—			27,595
Asset impairments	—			—			658,118			—			—			658,118
Loss on asset sales and disposal	9,180			—			21,655			—			—			30,835

Operating income (loss)	113,385			(7		)	(646,151		)	(4,270		)	3,319			(533,724		)
										—			—
Interest expense	(77,493		)	—			(42,325		)	(2,186		)	186			(121,818		)
Other income (expense), net	110			—			—			3,505			(3,505		)	110

Earnings (loss) before income taxes	36,002			(7		)	(688,476		)	(2,951		)	—			(655,432		)

Income tax expense (benefit)	839			—			(880		)	—			—			(41		)
Equity in earnings (loss) of subsidiaries	(690,554		)	—			—			—			690,554			—

Net earnings (loss)	(655,391		)	(7		)	(687,596		)	(2,951		)	690,554			(655,391		)

Other comprehensive income	28,758			—			—			—			—			28,758

Comprehensive income (loss)	$	(626,633	)	$	(7	)	$	(687,596	)	$	(2,951	)	$	690,554		$	(626,633	)



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

	For the year ended July 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	$	1,657,016		$	—		$	—		$	—		$	—		$	1,657,016
Midstream operations	—			—			107,189			—			—			107,189
Other	73,704			—			186,481			—			—			260,185
Total revenues	1,730,720			—			293,670			—			—			2,024,390

Costs and expenses:
Cost of sales - propane and other gas liquids sales	977,224			—			—			—			—			977,224
Cost of sales - midstream operations	—			—			76,590			—			—			76,590
Cost of sales - other	7,649			—			163,048			—			—			170,697
Operating expense	413,112			—			25,189			5,206			(6,154		)	437,353
Depreciation and amortization expense	75,834			—			22,745			—			—			98,579
General and administrative expense	76,250			4			984			—			—			77,238
Equipment lease expense	24,213			—			60			—			—			24,273
Non-cash employee stock ownership plan compensation charge	24,713			—			—			—			—			24,713
Loss on asset sales and disposal	7,095			—			4			—			—			7,099

Operating income (loss)	124,630			(4		)	5,050			(5,206		)	6,154			130,624

Interest expense	(72,765		)	—			(8,499		)	(2,622		)	(341		)	(84,227		)
Other income (expense), net	(354		)	—			—			5,813			(5,813		)	(354		)

Earnings (loss) before income taxes	51,511			(4		)	(3,449		)	(2,015		)	—			46,043

Income tax expense (benefit)	292			—			(676		)	—			—			(384		)
Equity in earnings (loss) of subsidiaries	(4,792		)	—			—			—			4,792			—

Net earnings (loss)	46,427			(4		)	(2,773		)	(2,015		)	4,792			46,427

Other comprehensive income (loss)	(45,576		)	—			2			(4		)	2			(45,576		)

Comprehensive income (loss)	$	851		$	(4	)	$	(2,771	)	$	(2,019	)	$	4,794		$	851



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

	For the year ended July 31, 2017
	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	$	185,640		$	(5	)	$	(36,297	)	$	4,410		$	(5,000	)	$	148,748

Cash flows from investing activities:
Business acquisitions, net of cash acquired	(3,539		)	—			—			—			—			(3,539		)
Capital expenditures	(49,107		)	—			(1,365		)	—			—			(50,472		)
Proceeds from sale of assets	8,510			—			—			—			—			8,510
Cash collected for purchase of interest in accounts receivable	—			—			—			1,011,244			(1,011,244		)	—
Cash remitted to Ferrellgas, L.P for accounts receivable	—			—			—			(1,016,244		)	1,016,244			—
Net changes in advances with consolidated entities	(33,573		)	—			—			360			33,213			—
Other	(37		)	—			—			—			—			(37		)
Net cash used in investing activities	(77,746		)	—			(1,365		)	(4,640		)	38,213			(45,538		)

Cash flows from financing activities:
Distributions	(119,879		)	—			—			—			—			(119,879		)
Contributions	167,843			—			—			—			—			167,843
Proceeds from issuance of long-term debt	62,864			—			—			—			—			62,864
Payments on long-term debt	(174,292		)	—			—			—			—			(174,292		)
Net reductions in short-term borrowings	(41,510		)	—			—			—			—			(41,510		)
Net additions to collateralized short-term borrowings	—			—			—			5,000			—			5,000
Net changes in advances with parent	—			5			37,618			(4,410		)	(33,213		)	—
Cash paid for financing costs	(2,065		)	—			—			(360		)	—			(2,425		)
Net cash provided by (used in) financing activities	(107,039		)	5			37,618			230			(33,213		)	(102,399		)

Increase (decrease) in cash and cash equivalents	855			—			(44		)	—			—			811
Cash and cash equivalents - beginning of year	4,472			1			417			—			—			4,890
Cash and cash equivalents - end of year	$	5,327		$	1		$	373		$	—		$	—		$	5,701

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS



(in thousands)

	For the year ended July 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	$	102,569		$	(9	)	$	89,728		$	14,456		$	6,000		$	212,744

Cash flows from investing activities:
Business acquisitions, net of cash acquired	(15,144		)	—			—			—			—			(15,144		)
Capital expenditures	(52,501		)	—			(65,017		)	—			—			(117,518		)
Proceeds from sale of assets	17,089			—			—			—			—			17,089
Cash collected for purchase of interest in accounts receivable	—			—			—			946,804			(946,804		)	—
Cash remitted to Ferrellgas, L.P for accounts receivable	—			—			—			(940,804		)	940,804			—
Net changes in advances with consolidated entities	38,759			—			—			—			(38,759		)	—
Other	(286		)	—			—			—			—			(286		)
Net cash provided by (used in) investing activities	(12,083		)	—			(65,017		)	6,000			(44,759		)	(115,859		)

Cash flows from financing activities:
Distributions	(269,541		)	—			—			—			—			(269,541		)
Contributions	30			—			—			—			—			30
Proceeds from issuance of long-term debt	168,117			—			—			—			—			168,117
Payments on long-term debt	(14,959		)	—			—			—			—			(14,959		)
Net additions to short-term borrowings	25,972			—			—			—			—			25,972
Net reductions in collateralized short-term borrowings	—			—			—			(6,000		)	—			(6,000		)
Net changes in advances with parent	—			9			(24,314		)	(14,454		)	38,759			—
Cash paid for financing costs	(1,214		)	—			—			—			—			(1,214		)
Net cash provided by (used in) financing activities	(91,595		)	9			(24,314		)	(20,454		)	38,759			(97,595		)

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

Increase (decrease) in cash and cash equivalents	(1,107		)	—			397			—			—			(710		)
Cash and cash equivalents - beginning of year	5,579			1			20			—			—			5,600
Cash and cash equivalents - end of year	$	4,472		$	1		$	417		$	—		$	—		$	4,890



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

	For the year ended July 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	$	197,740		$	(4	)	$	(12,875	)	$	10,627		$	21,000		$	216,488

Cash flows from investing activities:
Business acquisitions, net of cash acquired	(71,750		)	—			(7,177		)	—			—			(78,927		)
Capital expenditures	(56,955		)	—			(15,526		)	—			—			(72,481		)
Proceeds from sale of assets	5,905			—			—			—			—			5,905
Cash collected for purchase of interest in accounts receivable	—			—			—			1,299,325			(1,299,325		)	—
Cash remitted to Ferrellgas, L.P for accounts receivable	—			—			—			(1,278,325		)	1,278,325			—
Net changes in advances with consolidated entities	(24,493		)	—			—			—			24,493			—
Other	(14		)	—			—			—			—			(14		)
Net cash provided by (used in) investing activities	(147,307		)	—			(22,703		)	21,000			3,493			(145,517		)

Cash flows from financing activities:
Distributions	(607,875		)	—			—			—			—			(607,875		)
Contributions	51,047			—			—			—			—			51,047
Proceeds from issuance of long-term debt	628,134			—			—			—			—			628,134
Payments on long-term debt	(119,457		)	—			—			—			—			(119,457		)
Net additions to short-term borrowings	5,800			—			—			—			—			5,800
Net reductions in collateralized short-term borrowings	—			—			—			(21,000		)	—			(21,000		)
Net changes in advances with parent	—			4			35,114			(10,625		)	(24,493		)	—
Cash paid for financing costs	(10,301		)	—			—			—			—			(10,301		)
Net cash provided by (used in) financing activities	(52,652		)	4			35,114			(31,625		)	(24,493		)	(73,652		)

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

Decrease in cash and cash equivalents	(2,219		)	—			(464		)	—			—			(2,683		)
Cash and cash equivalents - beginning of year	7,798			1			484			—			—			8,283
Cash and cash equivalents - end of year	$	5,579		$	1		$	20		$	—		$	—		$	5,600