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, 2020
	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	$	13,642	$	1	$	—	$	—	$	—	$	13,643
Accounts and notes receivable, net		9,646		—		24		172,774		—		182,444
Intercompany receivables		(12,388)		—		—		—		12,388		—
Inventories		78,474		—		—		—		—		78,474
Prepaid expenses and other current assets		47,703		—		—		—		—		47,703
Total current assets		137,077		1		24		172,774		12,388		322,264

Property, plant and equipment, net		594,007		—		—		—		—		594,007
Goodwill, net		247,195		—		—		—		—		247,195
Intangible assets, net		106,214		—		—		—		—		106,214
Investments in consolidated subsidiaries		69,194		—		—		—		(69,194)		—
Operating lease right-of-use assets		120,423		—		—		—		—		120,423
Other assets, net		78,184		—		2,255		559		—		80,998
Total assets	$	1,352,294	$	1	$	2,279	$	173,333	$	(56,806)	$	1,471,101

LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Current liabilities:
Accounts payable	$	46,125	$	—	$	—	$	—	$	—	$	46,125
Short-term borrowings		40,000		—		—		—		—		40,000
Collateralized note payable		—		—		—		121,000		—		121,000
Intercompany payables		—		—		—		(12,388)		12,388		—
Current portion of long-term debt		2,157		—		—		—		—		2,157
Current operating lease liabilities		33,263		—		—		—		—		33,263
Other current liabilities		153,599		—		13		(2,206)		—		151,406
Total current liabilities		275,144		—		13		106,406		12,388		393,951

Long-term debt		1,731,197		—		—		—		—		1,731,197
Operating lease liabilities		84,546		—		—		—		—		84,546
Other liabilities		45,259		—		—		—		—		45,259
Contingencies and commitments

Partners' capital (deficit):
Partners' equity		(760,502)		1		2,266		66,927		(69,194)		(760,502)
Accumulated other comprehensive loss		(23,350)		—		—		—		—		(23,350)
Total partners' capital (deficit)		(783,852)		1		2,266		66,927		(69,194)		(783,852)
Total liabilities and partners' capital (deficit)	$	1,352,294	$	1	$	2,279	$	173,333	$	(56,806)	$	1,471,101

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
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 income		(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 STATEMENTS OF OPERATIONS

(in thousands)


	For the three months ended January 31, 2020
	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	$	485,247	$	—	$	—	$	—	$	—	$	485,247
Other		25,586		—		—		—		—		25,586
Total revenues		510,833		—		—		—		—		510,833

Costs and expenses:
Cost of sales - propane and other gas liquids sales		237,843		—		—		—		—		237,843
Cost of sales - other		3,353		—		—		—		—		3,353
Operating expense - personnel, vehicle, plant and other		128,233		—		—		1,050		(1,050)		128,233
Depreciation and amortization expense		19,684		—		—		111		—		19,795
General and administrative expense		14,082		3		—		—		—		14,085
Operating expense - equipment lease expense		8,261		—		—		—		—		8,261
Non-cash employee stock ownership plan compensation charge		630		—		—		—		—		630
Loss on asset sales and disposals		2,148		—		—		—		—		2,148

Operating income (loss)		96,599		(3)		—		(1,161)		1,050		96,485

Interest expense		(37,778)		—		—		(912)		—		(38,690)
Other income (expense), net		76		—		—		1,882		(1,882)		76

Earnings (loss) before income taxes		58,897		(3)		—		(191)		(832)		57,871

Income tax expense		115		—		—		—		—		115
Equity in earnings (loss) of subsidiaries		(194)		—		—		—		194		—

Net earnings (loss)		58,588		(3)		—		(191)		(638)		57,756

Other comprehensive loss		(2,555)		—		—		—		—		(2,555)

Comprehensive income (loss)	$	56,033	$	(3)	$	—	$	(191)	$	(638)	$	55,201

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 subsidiary		(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 six months ended January 31, 2020
	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	$	758,632	$	—	$	—	$	—	$	—	$	758,632
Other		45,415		—		—		—		—		45,415
Total revenues		804,047		—		—		—		—		804,047

Costs and expenses:
Cost of sales - propane and other gas liquids sales		371,871		—		—		—		—		371,871
Cost of sales - other		7,034		—		—		—		—		7,034
Operating expense - personnel, vehicle, plant and other		242,776		—		—		1,935		(1,935)		242,776
Depreciation and amortization expense		38,791		—		—		223		—		39,014
General and administrative expense		23,777		4		—		—		—		23,781
Operating expense - equipment lease expense		16,649		—		—		—		—		16,649
Non-cash employee stock ownership plan compensation charge		1,425		—		—		—		—		1,425
Loss on asset sales and disposals		4,383		—		—		—		—		4,383

Operating income (loss)		97,341		(4)		—		(2,158)		1,935		97,114

Interest expense		(73,469)		—		—		(2,098)		—		(75,567)
Other income (expense), net		(56)		—		—		2,602		(2,602)		(56)

Earnings (loss) before income taxes		23,816		(4)		—		(1,654)		(667)		21,491

Income tax expense		633		—		—		—		—		633
Equity in earnings (loss) of subsidiary		(1,658)		—		—		—		1,658		—

Net earnings (loss)		21,525		(4)		—		(1,654)		991		20,858

Other comprehensive loss		(8,703)		—		—		—		—		(8,703)

Comprehensive income (loss)	$	12,822	$	(4)	$	—	$	(1,654)	$	991	$	12,155

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 - personnel, vehicle, plant and other		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
Operating expense - equipment lease expense		16,278		—		—		—		—		16,278
Non-cash employee stock ownership plan compensation charge		4,692		—		—		—		—		4,692
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 subsidiaries		(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 CASH FLOWS

(in thousands)


	For the six months ended January 31, 2020
	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	$	80,433	$	(4)	$	512	$	(5,941)	$	(59,000)	$	16,000

Cash flows from investing activities:
Business acquisitions, net of cash acquired		(6,400)		—		—		—		—		(6,400)
Capital expenditures		(33,422)		—		—		—		—		(33,422)
Proceeds from sale of assets		1,659		—		—		—		—		1,659
Cash collected for purchase of interest in accounts receivable		—		—		—		416,325		(416,325)		—
Cash remitted to Ferrellgas, L.P. for accounts receivable		—		—		—		(475,325)		475,325		—
Intercompany loan to affiliate		(5,433)		—		—		—		5,433		—
Cash payments to construct assets in connection with future lease transactions		(30,307)		—		—		—		—		(30,307)
Cash receipts in connection with leased vehicles		19,929		—		—		—		—		19,929
Net cash used in investing activities		(53,974)		—		—		(59,000)		64,433		(48,541)

Cash flows from financing activities:
Distributions		(15,654)		—		—		—		—		(15,654)
Reductions in long-term debt		(972)		—		—		—		—		(972)
Net reductions to short-term borrowings		(3,000)		—		—		—		—		(3,000)
Net additions to collateralized short-term borrowings		—		—		—		59,000		—		59,000
Net changes in advances with consolidated entities		—		4		(512)		5,941		(5,433)		—
Cash paid for financing costs and other		(4,236)		—		—		—		—		(4,236)
Net cash provided by (used in) financing activities		(23,862)		4		(512)		64,941		(5,433)		35,138

Net change in cash and cash equivalents		2,597		—		—		—		—		2,597
Cash and cash equivalents - beginning of year		11,045		1		—		—		—		11,046
Cash and cash equivalents - end of year	$	13,642	$	1	$	—	$	—	$	—	$	13,643

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		—
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)
Proceeds from increase in long-term debt		—		—		—		—		—		—
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