M. 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 condensed consolidated financial statements.

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEETS

(in thousands)


	As of January 31, 2019
	Ferrellgas, L.P.		Ferrellgas
	(Parent and		Finance Corp.		Guarantor		Non-Guarantor
	Co-Issuer)		(Co-Issuer)		Subsidiaries		Subsidiaries		Eliminations		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	40,305	$	1	$	246	$	—	$	—	$	40,552
Accounts and notes receivable, net		(3,661)		—		150		206,675		—		203,164
Intercompany receivables		(9,201)		—		—		—		9,201		—
Inventories		89,784		—		—		—		—		89,784
Prepaid expenses and other current assets		36,551		—		(1)		3		—		36,553
Total current assets		153,778		1		395		206,678		9,201		370,053

Property, plant and equipment, net		584,335		—		(1)		—		—		584,334
Goodwill, net		247,478		—		—		—		—		247,478
Intangible assets, net		113,558		—		—		—		—		113,558
Investments in consolidated subsidiaries		74,072		—		—		—		(74,072)		—
Other assets, net		68,659		—		2,875		1,005		—		72,539
Total assets	$	1,241,880	$	1	$	3,269	$	207,683	$	(64,871)	$	1,387,962

LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Current liabilities:
Accounts payable	$	63,526	$	—	$	—	$	113	$	—	$	63,639
Collateralized note payable		—		—		—		140,000		—		140,000
Intercompany payables		—		—		(192)		(9,009)		9,201		—
Other current liabilities		137,417		—		388		5,514		—		143,319
Total current liabilities		200,943		—		196		136,618		9,201		346,958

Long-term debt		1,730,468		—		—		—		—		1,730,468
Other liabilities		37,480		—		67		—		—		37,547
Contingencies and commitments

Partners' capital (deficit):
Partners' equity		(717,884)		1		3,006		71,065		(74,072)		(717,884)
Accumulated other comprehensive loss		(9,127)		—		—		—		—		(9,127)
Total partners' capital (deficit)		(727,011)		1		3,006		71,065		(74,072)		(727,011)
Total liabilities and partners' capital (deficit)	$	1,241,880	$	1	$	3,269	$	207,683	$	(64,871)	$	1,387,962

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEETS

(in thousands)


	As of July 31, 2018
	Ferrellgas, L.P.		Ferrellgas
	(Parent and		Finance Corp.		Guarantor		Non-Guarantor
	Co-Issuer)		(Co-Issuer)		Subsidiaries		Subsidiaries		Eliminations		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	119,133	$	1	$	174	$	—	$	—	$	119,308
Accounts and notes receivable, net		(3,420)		—		9,395		120,079		—		126,054
Intercompany receivables		15,660		—		—		—		(15,660)		—
Inventories		83,694		—		—		—		—		83,694
Prepaid expenses and other current assets		34,050		—		775		5		—		34,830
Total current assets		249,117		1		10,344		120,084		(15,660)		363,886

Property, plant and equipment, net		557,689		—		34		—		—		557,723
Goodwill, net		246,098		—		—		—		—		246,098
Intangible assets, net		120,951		—		—		—		—		120,951
Investments in consolidated subsidiaries		59,937		—		—		—		(59,937)		—
Other assets, net		63,411		—		9,961		1,216		—		74,588
Total assets	$	1,297,203	$	1	$	20,339	$	121,300	$	(75,597)	$	1,363,246

LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Current liabilities:
Accounts payable	$	45,171	$	—	$	1,547	$	102	$	—	$	46,820
Short-term borrowings		32,800		—		—		—		—		32,800
Collateralized note payable		—		—		—		58,000		—		58,000
Intercompany payables		—		—		(143)		15,803		(15,660)		—
Other current liabilities		131,702		—		6,036		353		—		138,091
Total current liabilities		209,673		—		7,440		74,258		(15,660)		275,711

Long-term debt		1,728,137		—		—		—		—		1,728,137
Other liabilities		39,471		—		5		—		—		39,476
Contingencies and commitments

Partners' capital (deficit):
Partners' equity		(700,811)		1		12,894		47,042		(59,937)		(700,811)
Accumulated other comprehensive income		20,733		—		—		—		—		20,733
Total partners' capital (deficit)		(680,078)		1		12,894		47,042		(59,937)		(680,078)
Total liabilities and partners' capital (deficit)	$	1,297,203	$	1	$	20,339	$	121,300	$	(75,597)	$	1,363,246

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(in thousands)


	For the three months ended January 31, 2019
	Ferrellgas, L.P.		Ferrellgas
	(Parent and		Finance Corp.		Guarantor		Non-Guarantor
	Co-Issuer)		(Co-Issuer)		Subsidiaries		Subsidiaries		Eliminations		Consolidated

Revenues:
Propane and other gas liquids sales	$	550,112	$	—	$	—	$	—	$	—	$	550,112
Other		23,216		—		49		—		—		23,265
Total revenues		573,328		—		49		—		—		573,377

Costs and expenses:
Cost of sales - propane and other gas liquids sales		311,531		—		—		—		—		311,531
Cost of sales - other		3,308		—		114		—		—		3,422
Operating expense		121,180		—		39		1,884		(1,884)		121,219
Depreciation and amortization expense		19,493		—		—		112		—		19,605
General and administrative expense		16,338		3		—		—		—		16,341
Equipment lease expense		8,415		—		—		—		—		8,415
Non-cash employee stock ownership plan compensation charge		1,944		—		—		—		—		1,944
Loss on asset sales and disposals		2,045		—		171		—		—		2,216

Operating income (loss)		89,074		(3)		(275)		(1,996)		1,884		88,684

Interest expense		(34,655)		—		(38)		(1,457)		—		(36,150)
Other income (expense), net		96		—		(10)		2,916		(2,916)		86

Earnings (loss) before income taxes		54,515		(3)		(323)		(537)		(1,032)		52,620

Income tax expense		3		—		—		—		—		3
Equity in earnings (loss) of subsidiaries		(863)		—		—		—		863		—

Net earnings (loss)		53,649		(3)		(323)		(537)		(169)		52,617

Other comprehensive loss		(17,273)		—		—		—		—		(17,273)

Comprehensive income (loss)	$	36,376	$	(3)	$	(323)	$	(537)	$	(169)	$	35,344

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(in thousands)


	For the three months ended January 31, 2018
	Ferrellgas, L.P.		Ferrellgas
	(Parent and		Finance Corp.		Guarantor		Non-Guarantor
	Co-Issuer)		(Co-Issuer)		Subsidiaries		Subsidiaries		Eliminations		Consolidated

Revenues:
Propane and other gas liquids sales	$	592,275	$	—	$	(36)	$	—	$	—	$	592,239
Midstream operations		—		—		117,276		—		—		117,276
Other		22,707		—		22,934		—		—		45,641
Total revenues		614,982		—		140,174		—		—		755,156

Costs and expenses:
Cost of sales - propane and other gas liquids sales		362,927		—		(9)		—		—		362,918
Cost of sales - midstream operations		—		—		107,067		—		—		107,067
Cost of sales - other		2,853		—		17,934		—		—		20,787
Operating expense		114,096		—		9,795		1,833		(2,008)		123,716
Depreciation and amortization expense		18,521		—		6,893		71		—		25,485
General and administrative expense		13,833		3		1,054		—		—		14,890
Equipment lease expense		6,862		—		92		—		—		6,954
Non-cash employee stock ownership plan compensation charge		4,031		—		—		—		—		4,031
Asset impairments		—				10,005				—		10,005
Loss on asset sales and disposals		555		—		38,694		—		—		39,249

Operating income (loss)		91,304		(3)		(51,351)		(1,904)		2,008		40,054

Interest expense		(21,212)		—		(11,739)		(1,107)		—		(34,058)
Other income (expense), net		408		—		276		2,008		(2,008)		684

Earnings (loss) before income taxes		70,500		(3)		(62,814)		(1,003)		—		6,680

Income tax expense (benefit)		82		—		(249)		—		—		(167)
Equity in earnings (loss) of subsidiaries		(63,571)		—		—		—		63,571		—

Net earnings (loss)		6,847		(3)		(62,565)		(1,003)		63,571		6,847

Other comprehensive income		(8,671)		—		—		—		—		(8,671)

Comprehensive income (loss)	$	(1,824)	$	(3)	$	(62,565)	$	(1,003)	$	63,571	$	(1,824)

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(in thousands)


	For the six months ended January 31, 2019
	Ferrellgas, L.P.		Ferrellgas
	(Parent and		Finance Corp.		Guarantor		Non-Guarantor
	Co-Issuer)		(Co-Issuer)		Subsidiaries		Subsidiaries		Eliminations		Consolidated

Revenues:
Propane and other gas liquids sales	$	885,078	$	—	$	—	$	—	$	—	$	885,078
Other		40,559		—		49		—		—		40,608
Total revenues		925,637		—		49		—		—		925,686

Costs and expenses:
Cost of sales - propane and other gas liquids sales		515,667		—		—		—		—		515,667
Cost of sales - other		6,355		—		114		—		—		6,469
Operating expense		231,511		—		39		2,901		(2,901)		231,550
Depreciation and amortization expense		38,374		—		—		223		—		38,597
General and administrative expense		30,511		5		—		—		—		30,516
Equipment lease expense		16,278		—		—		—		—		16,278
Non-cash employee stock ownership plan compensation charge		4,692		—		—		—		—		4,692
Asset impairments		—		—		—		—		—		—
Loss on asset sales and disposals		4,041		—		2,679		—		—		6,720

Operating income (loss)		78,208		(5)		(2,783)		(3,124)		2,901		75,197

Interest expense		(69,003)		—		(38)		(2,304)		—		(71,345)
Other income (expense), net		115		—		(10)		5,119		(5,119)		105

Earnings (loss) before income taxes		9,320		(5)		(2,831)		(309)		(2,218)		3,957

Income tax expense		154		—		—		—		—		154
Equity in earnings (loss) of subsidiary		(3,145)		—		—		—		3,145		—

Net earnings (loss)		6,021		(5)		(2,831)		(309)		927		3,803

Other comprehensive loss		(29,860)		—		—		—		—		(29,860)

Comprehensive income (loss)	$	(23,839)	$	(5)	$	(2,831)	$	(309)	$	927	$	(26,057)

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(in thousands)


	For the six months ended January 31, 2018
	Ferrellgas, L.P.		Ferrellgas
	(Parent and		Finance Corp.		Guarantor		Non-Guarantor
	Co-Issuer)		(Co-Issuer)		Subsidiaries		Subsidiaries		Eliminations		Consolidated

Revenues:
Propane and other gas liquids sales	$	894,392	$	—	$	605	$	—	$	—	$	894,997
Midstream operations		—		—		238,036		—		—		238,036
Other		39,384		—		37,394		—		—		76,778
Total revenues		933,776		—		276,035		—		—		1,209,811

Costs and expenses:
Cost of sales - propane and other gas liquids sales		541,746		—		687		—		—		542,433
Cost of sales - midstream operations		—		—		215,192		—		—		215,192
Cost of sales - other		5,562		—		28,927		—		—		34,489
Operating expense		215,328		—		19,058		3,015		(3,223)		234,178
Depreciation and amortization expense		36,868		—		14,206		143		—		51,217
General and administrative expense		24,588		5		3,461		—		—		28,054
Equipment lease expense		13,510		—		185		—		—		13,695
Non-cash employee stock ownership plan compensation charge		7,993		—		—		—		—		7,993
Asset impairments		—		—		10,005		—		—		10,005
Loss on asset sales and disposals		1,463		—		38,681		—		—		40,144

Operating income (loss)		86,718		(5)		(54,367)		(3,158)		3,223		32,411

Interest expense		(41,606)		—		(22,924)		(1,724)		—		(66,254)
Other income (expense), net		623		—		572		3,223		(3,223)		1,195

Earnings (loss) before income taxes		45,735		(5)		(76,719)		(1,659)		—		(32,648)

Income tax expense		72		—		132		—		—		204
Equity in earnings (loss) of subsidiary		(78,515)		—		—		—		78,515		—

Net earnings (loss)		(32,852)		(5)		(76,851)		(1,659)		78,515		(32,852)

Other comprehensive income		9,829		—		—		—		—		9,829

Comprehensive income (loss)	$	(23,023)	$	(5)	$	(76,851)	$	(1,659)	$	78,515	$	(23,023)

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(in thousands)


	For the six months ended January 31, 2019
	Ferrellgas, L.P.		Ferrellgas
	(Parent and		Finance Corp.		Guarantor		Non-Guarantor
	Co-Issuer)		(Co-Issuer)		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	98,494	$	(5)	$	24,696	$	(80,899)	$	(82,000)	$	(39,714)

Cash flows from investing activities:
Business acquisitions, net of cash acquired		(5,069)		—		—		—		—		(5,069)
Capital expenditures		(58,330)		—		—		—		—		(58,330)
Proceeds from sale of assets		1,960		—		—		—		—		1,960
Cash collected for purchase of interest in accounts receivable		—		—		—		710,497		(710,497)		—
Cash remitted to Ferrellgas, L.P. for accounts receivable		—		—		—		(792,497)		792,497		—
Net changes in advances with consolidated entities		(56,291)		—		—		—		56,291		—
Other		—		—		—		—		—		—
Net cash provided by (used in) investing activities		(117,730)		—		—		(82,000)		138,291		(61,439)

Cash flows from financing activities:
Distributions		(25,568)		—		—		—		—		(25,568)
Payments on long-term debt		(1,014)		—		—		—		—		(1,014)
Net reductions in short-term borrowings		(32,800)		—		—		—		—		(32,800)
Net additions to collateralized short-term borrowings		—		—		—		82,000		—		82,000
Net changes in advances with parent		—		5		(24,624)		80,910		(56,291)		—
Cash paid for financing costs		(210)		—		—		(11)		—		(221)
Net cash provided by (used in) financing activities		(59,592)		5		(24,624)		162,899		(56,291)		22,397

Net change in cash and cash equivalents		(78,828)		—		72		—		—		(78,756)
Cash and cash equivalents - beginning of year		119,133		1		174		—		—		119,308
Cash and cash equivalents - end of year	$	40,305	$	1	$	246	$	—	$	—	$	40,552

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(in thousands)


	For the six months ended January 31, 2018
	Ferrellgas, L.P.		Ferrellgas
	(Parent and		Finance Corp.		Guarantor		Non-Guarantor
	Co-Issuer)		(Co-Issuer)		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	(57,734)	$	(5)	$	13,335	$	120,563	$	(97,000)	$	(20,841)

Cash flows from investing activities:
Business acquisitions, net of cash acquired		(14,862)		—		—		—		—		(14,862)
Capital expenditures		(34,391)		—		(1,302)		—		—		(35,693)
Proceeds from sale of assets		4,207		—		—		—		—		4,207
Cash collected for purchase of interest in accounts receivable		—		—		—		574,783		(574,783)		—
Cash remitted to Ferrellgas, L.P. for accounts receivable		—		—		—		(671,783)		671,783		—
Net changes in advances with consolidated entities		132,748		—		—		—		(132,748)		—
Net cash provided by (used in) investing activities		87,702		—		(1,302)		(97,000)		(35,748)		(46,348)

Cash flows from financing activities:
Distributions		(35,380)		—		—		—		—		(35,380)
Proceeds from increase in long-term debt		23,580		—		—		—		—		23,580
Payments on long-term debt		(1,267)		—		—		—		—		(1,267)
Net reductions in short-term borrowings		(7,879)		—		—		—		—		(7,879)
Net additions to collateralized short-term borrowings		—		—		—		97,000		—		97,000
Net changes in advances with parent		—		5		(12,190)		(120,563)		132,748		—
Cash paid for financing costs		(395)		—		—		—		—		(395)
Net cash provided by (used in) financing activities		(21,341)		5		(12,190)		(23,563)		132,748		75,659

Net change in cash and cash equivalents		8,627		—		(157)		—		—		8,470
Cash and cash equivalents - beginning of year		5,327		1		373		—		—		5,701
Cash and cash equivalents - end of year	$	13,954	$	1	$	216	$	—	$	—	$	14,171