R. 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 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 July 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	$	11,045	$	1	$	—	$	—	$	—	$	11,046
Accounts and notes receivable, net		(3,912)		—		35		111,473		—		107,596
Intercompany receivables		(5,650)		—		—		—		5,650		—
Inventories		80,454		—		—		—		—		80,454
Assets held for sale		—		—		—		—		—		—
Prepaid expenses and other current assets		42,158		—		(1)		—		—		42,157
Total current assets		124,095		1		34		111,473		5,650		241,253

Property, plant and equipment, net		596,724		—		(1)		—		—		596,723
Goodwill, net		247,195		—		—		—		—		247,195
Intangible assets, net		108,557		—		—		—		—		108,557
Investments in consolidated subsidiaries		52,999		—		—		—		(52,999)		—
Other assets, net		65,447		—		2,875		783		—		69,105
Total assets	$	1,195,017	$	1	$	2,908	$	112,256	$	(47,349)	$	1,262,833

LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Current liabilities:
Accounts payable	$	33,252	$	—	$	—	$	112	$	—	$	33,364
Short-term borrowings		43,000		—		—		—		—		43,000
Collateralized note payable		—		—		—		62,000		—		62,000
Intercompany payables		—		—		(192)		(5,458)		5,650		—
Current portion of long-term debt		277,029		—		—		—		—		277,029
Other current liabilities		128,666		—		20		5,617		—		134,303
Total current liabilities		481,947		—		(172)		62,271		5,650		549,696

Long-term debt		1,457,004		—		—		—		—		1,457,004
Other liabilities		36,469		—		67		—		—		36,536
Contingencies and commitments

Partners' capital (deficit):
Partners' equity		(765,756)		1		3,013		49,985		(52,999)		(765,756)
Accumulated other comprehensive loss		(14,647)		—		—		—		—		(14,647)
Total partners' capital (deficit)		(780,403)		1		3,013		49,985		(52,999)		(780,403)
Total liabilities and partners' capital (deficit)	$	1,195,017	$	1	$	2,908	$	112,256	$	(47,349)	$	1,262,833

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)		—
Current portion of long-term debt		2,402		—		—		—		—		2,402
Other current liabilities		129,300		—		6,036		353		—		135,689
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 year ended July 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	$	1,608,858	$	—	$	—	$	—	$	—	$	1,608,858
Other		75,485		—		49		—		—		75,534
Total revenues		1,684,343		—		49		—		—		1,684,392

Costs and expenses:
Cost of sales - propane and other gas liquids sales		902,516		—		—		—		—		902,516
Cost of sales - other		11,292		—		114		—		—		11,406
Operating expense		469,652		—		37		3,589		(4,410)		468,868
Depreciation and amortization expense		78,400		—		—		446		—		78,846
General and administrative expense		59,974		6		—		—		—		59,980
Equipment lease expense		33,073		—		—		—		—		33,073
Non-cash employee stock ownership plan compensation charge		5,693		—		—		—		—		5,693
Loss on asset sales and disposals		8,289		—		2,679		—		—		10,968

Operating income (loss)		115,454		(6)		(2,781)		(4,035)		4,410		113,042

Interest expense		(132,929)		—		(38)		(9,668)		—		(142,635)
Other income (expense), net		428		—		(59)		4,410		(4,410)		369

Earnings (loss) before income taxes		(17,047)		(6)		(2,878)		(9,293)		—		(29,224)

Income tax expense		105		—		188		—		—		293
Equity in earnings (loss) of subsidiary		(12,365)		—		—		—		12,365		—

Net earnings (loss)		(29,517)		(6)		(3,066)		(9,293)		12,365		(29,517)

Other comprehensive loss		(35,380)		—		—		—		—		(35,380)

Comprehensive income (loss)	$	(64,897)	$	(6)	$	(3,066)	$	(9,293)	$	12,365	$	(64,897)

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(in thousands)


	For the year ended July 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	$	1,642,155	$	—	$	821	$	—	$	—	$	1,642,976
Midstream operations		—		—		282,319		—		—		282,319
Other		72,954		—		74,893		—		—		147,847
Total revenues		1,715,109		—		358,033		—		—		2,073,142

Costs and expenses:
Cost of sales - propane and other gas liquids sales		972,467		—		947		—		—		973,414
Cost of sales - midstream operations		—		—		255,559		—		—		255,559
Cost of sales - other		10,111		—		58,543		—		—		68,654
Operating expense		436,962		—		37,617		4,755		(7,586)		471,748
Depreciation and amortization expense		75,163		—		26,317		315		—		101,795
General and administrative expense		48,337		5		5,922		—		—		54,264
Equipment lease expense		27,939		—		333		—		—		28,272
Non-cash employee stock ownership plan compensation charge		13,859		—		—		—		—		13,859
Asset impairments		—		—		10,005		—		—		10,005
Loss on asset sales and disposals		8,978		—		178,421		—		—		187,399

Operating income (loss)		121,293		(5)		(215,631)		(5,070)		7,586		(91,827)

Interest expense		(86,646)		—		(43,247)		(4,053)		—		(133,946)
Other income (expense), net		(234)		—		1,162		7,586		(7,586)		928

Earnings (loss) before income taxes		34,413		(5)		(257,716)		(1,537)		—		(224,845)

Income tax expense		222		—		(2,921)		—		—		(2,699)
Equity in earnings (loss) of subsidiary		(256,337)		—		—		—		256,337		—

Net earnings (loss)		(222,146)		(5)		(254,795)		(1,537)		256,337		(222,146)

Other comprehensive income		5,969		—		—		—		—		5,969

Comprehensive income (loss)	$	(216,177)	$	(5)	$	(254,795)	$	(1,537)	$	256,337	$	(216,177)

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(in thousands)


	For the year ended July 31, 2017
	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	$	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
Asset impairments		—		—		—		—		—		—
Loss on asset sales and disposals		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 loss		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 CASH FLOWS

(in thousands)


	For the year ended July 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	$	25,796	$	(6)	$	24,889	$	(717)	$	(4,000)	$	45,962

Cash flows from investing activities:
Business acquisitions, net of cash acquired		(13,551)		—		—		—		—		(13,551)
Capital expenditures		(108,822)		—		—		—		—		(108,822)
Proceeds from sale of assets		5,699		—		—		—		—		5,699
Cash collected for purchase of interest in accounts receivable		—		—		—		1,258,050		(1,258,050)		—
Cash remitted to Ferrellgas, L.P. for accounts receivable		—		—		—		(1,262,050)		1,262,050		—
Intercompany loan to affiliate		24,328		—		—		—		(24,328)		—
Cash payments to construct assets in connection with future lease transactions		(9,934)										(9,934)
Cash receipts in connection with leased vehicles		862										862
Other		1,419		—		—		—		—		1,419
Net cash used in investing activities		(99,999)		—		—		(4,000)		(20,327)		(124,327)

Cash flows from financing activities:
Distributions		(41,121)		—		—		—		—		(41,121)
Proceeds from increase in long-term debt		—		—		—		—		—		—
Reductions in long-term debt		(2,428)		—		—		—		—		(2,428)
Net additions to short-term borrowings		10,200		—		—		—		—		10,200
Net additions to collateralized short-term borrowings		—		—		—		4,000		—		4,000
Net changes in advances with consolidated entities		—		6		(25,063)		729		24,328		(0)
Cash paid for financing costs		(536)		—		—		(12)		—		(548)
Net cash provided by (used in) financing activities		(33,885)		6		(25,063)		4,717		24,328		(29,897)

Net change in cash and cash equivalents		(108,088)		—		(174)		(0)		0		(108,262)
Cash and cash equivalents - beginning of year		119,133		1		174		—		—		119,308
Cash and cash equivalents - end of year	$	11,045	$	1	$	—	$	(0)	$	0	$	11,046

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(in thousands)


	For the year ended July 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	$	139,294	$	(5)	$	(48,708)	$	3,573	$	11,000	$	105,154

Cash flows from investing activities:
Business acquisitions, net of cash acquired		(18,141)		—		—		—		—		(18,141)
Capital expenditures		(81,114)		—		(3,805)		—		—		(84,919)
Proceeds from sale of assets		7,327		—		145,260		—		—		152,587
Cash collected for purchase of interest in accounts receivable		—		—		—		1,226,211		(1,226,211)		—
Cash remitted to Ferrellgas, L.P. for accounts receivable		—		—		—		(1,215,211)		1,215,211		—
Net changes in advances with consolidated entities		96,514		—		—		—		(96,514)		—
Net cash provided by (used in) investing activities		4,586		—		141,455		11,000		(107,514)		49,527

Cash flows from financing activities:
Distributions		(70,962)		—		—		—		—		(70,962)
Proceeds from increase in long-term debt		323,680		—		—		—		—		323,680
Payments on long-term debt		(212,920)		—		—		—		—		(212,920)
Net reductions in short-term borrowings		(51,379)		—		—		—		—		(51,379)
Net additions to collateralized short-term borrowings		—		—		—		(11,000)		—		(11,000)
Net changes in advances with parent		—		5		(92,946)		(3,573)		96,514		—
Cash paid for financing costs		(18,493)		—		—		—		—		(18,493)
Net cash provided by (used in) financing activities		(30,074)		5		(92,946)		(14,573)		96,514		(41,074)

Net change in cash and cash equivalents		113,806		—		(199)		—		—		113,607
Cash and cash equivalents - beginning of year		5,327		1		373		—		—		5,701
Cash and cash equivalents - end of year	$	119,133	$	1	$	174	$	—	$	—	$	119,308

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(in thousands)


	For the year ended July 31, 2017
	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	$	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, dispositions and other		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 provided by (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 additions to short-term borrowings		(41,510)		—		—		—		—		(41,510)
Net reductions in 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)

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

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