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, 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	$	332,244	$	1	$	—	$	1,510	$	—	$	333,755
Accounts and notes receivable, net		11,879		—		24		89,535		—		101,438
Intercompany receivables		69,980		—		—		—		(69,980)		—
Inventories		72,664		—		—		—		—		72,664
Prepaid expenses and other current assets		35,897		—		—		—		—		35,897
Total current assets		522,664		1		24		91,045		(69,980)		543,754

Property, plant and equipment, net		591,042		—		—		—		—		591,042
Goodwill, net		247,195		—		—		—		—		247,195
Intangible assets, net		104,049		—		—		—		—		104,049
Investments in consolidated subsidiaries		37,662		—		—		—		(37,662)		—
Operating lease right-of-use assets		107,349		—		—		—		—		107,349
Other assets, net		72,137		—		2,255		356		—		74,748
Total assets	$	1,682,098	$	1	$	2,279	$	91,401	$	(107,642)	$	1,668,137

LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Current liabilities:
Accounts payable	$	33,944	$	—	$	—	$	—	$	—	$	33,944
Intercompany payables		—		—		—		69,980		(69,980)		—
Current portion of long-term debt		502,095		—		—		—		—		502,095
Current operating lease liabilities		29,345		—		—		—		—		29,345
Other current liabilities		162,097		—		—		(13,961)		—		148,136
Total current liabilities		727,481		—		—		56,019		(69,980)		713,520

Long-term debt		1,646,396		—		—		—		—		1,646,396
Operating lease liabilities		89,022		—		—		—		—		89,022
Other liabilities		51,190		—		—		—		—		51,190
Contingencies and commitments

Partners' capital (deficit):
Partners' equity		(829,678)		1		2,279		35,382		(37,662)		(829,678)
Accumulated other comprehensive loss		(2,313)		—		—		—		—		(2,313)
Total partners' capital (deficit)		(831,991)		1		2,279		35,382		(37,662)		(831,991)
Total liabilities and partners' capital (deficit)	$	1,682,098	$	1	$	2,279	$	91,401	$	(107,642)	$	1,668,137

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 year ended July 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	$	1,415,791	$	—	$	—	$	—	$	—	$	1,415,791
Other		82,035		—		—		—		—		82,035
Total revenues		1,497,826		—		—		—		—		1,497,826

Costs and expenses:
Cost of sales - propane and other gas liquids sales		673,053		—		—		—		—		673,053
Cost of sales - other		13,003		—		—		—		—		13,003
Operating expense - personnel, vehicle, plant and other		493,055		—		—		3,950		(3,950)		493,055
Operating expense - equipment lease expense		33,017		—		—		—		—		33,017
Depreciation and amortization expense		80,025		—		—		456		—		80,481
General and administrative expense		45,630		6		—		—		—		45,636
Non-cash employee stock ownership plan compensation charge		2,871		—		—		—		—		2,871
Loss on asset sales and disposals		7,924		—		—		—		—		7,924

Operating income (loss)		149,248		(6)		—		(4,406)		3,950		148,786

Interest expense		(156,286)		—		—		(3,603)		—		(159,889)
Loss on extinguishment of debt		(37,399)		—		—		—		—		(37,399)
Other income (expense), net		(360)		—		(100)		5,671		(5,671)		(460)

Earnings (loss) before income taxes		(44,797)		(6)		(100)		(2,338)		(1,721)		(48,962)

Income tax expense		802		—		—		—		—		802
Equity in earnings (loss) of subsidiary		(2,444)		—		—		—		2,444		—

Net earnings (loss)		(48,043)		(6)		(100)		(2,338)		723		(49,764)

Other comprehensive loss		12,334		—		—		—		—		12,334

Comprehensive income (loss)	$	(35,709)	$	(6)	$	(100)	$	(2,338)	$	723	$	(37,430)

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 - personnel, vehicle, plant and other		469,652		—		37		3,589		(4,410)		468,868
Operating expense - equipment lease expense		33,073		—		—		—		—		33,073
Depreciation and amortization expense		78,400		—		—		446		—		78,846
General and administrative expense		59,974		6		—		—		—		59,980
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 (benefit)		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 - personnel, vehicle, plant and other		436,962		—		37,617		4,755		(7,586)		471,748
Operating expense - equipment lease expense		27,939		—		333		—		—		28,272
Depreciation and amortization expense		75,163		—		26,317		315		—		101,795
General and administrative expense		48,337		5		5,922		—		—		54,264
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 subsidiaries		(256,337)		—		—		—		256,337		—

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

Other comprehensive loss		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 CASH FLOWS

(in thousands)


	For the year ended July 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	$	75,882	$	(6)	$	425	$	(11,480)	$	63,510	$	128,331

Cash flows from investing activities:
Business acquisitions, net of cash acquired		(10,195)		—		—		—		—		(10,195)
Capital expenditures		(70,455)		—		—		—		—		(70,455)
Proceeds from sale of assets		4,472		—		—		—		—		4,472
Cash collected for purchase of interest in accounts receivable		—		—		—		841,142		(841,142)		—
Cash remitted to Ferrellgas, L.P. for accounts receivable		—		—		—		(777,632)		777,632		—
Intercompany loan to affiliate		(11,061)		—		—		—		11,061		—
Cash payments to construct assets in connection with future lease transactions		(37,042)		—		—		—		—		(37,042)
Cash receipts in connection with leased vehicles		41,924		—		—		—		—		41,924
Net cash provided by (used in) investing activities		(82,357)		—		—		63,510		(52,449)		(71,296)

Cash flows from financing activities:
Distributions		(15,654)		—		—		—		—		(15,654)
Proceeds from increase in long-term debt		703,750		—		—		—		—		703,750
Payments on long-term debt		(285,857)		—		—		—		—		(285,857)
Net reductions to short-term borrowings		(43,000)		—		—		—		—		(43,000)
Net reduction in collateralized short-term borrowings		—		—		—		(62,000)		—		(62,000)
Net changes in advances with consolidated entities		—		6		(425)		11,480		(11,061)		—
Cash paid for financing costs		(29,449)		—		—		—		—		(29,449)
Cash payments for principal portion of finance lease liability		(2,116)		—		—		—		—		(2,116)
Net cash provided by (used in) financing activities		327,674		6		(425)		(50,520)		(11,061)		265,674

Net change in cash and cash equivalents		321,199		—		—		1,510		—		322,709
Cash and cash equivalents - beginning of year		11,045		1		—		—		—		11,046
Cash, cash equivalents and restricted cash - end of year	$	332,244	$	1	$	—	$	1,510	$	—	$	333,755

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		—
Net changes in advances with consolidated entities		—		—		—		—		—		—
Intercompany loan to affiliate		24,328		—		—		—		(24,328)		—
Cash payment 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 provided by (used in) investing activities		(99,999)		—		—		(4,000)		(20,328)		(124,327)

Cash flows from financing activities:
Distributions		(41,121)		—		—		—		—		(41,121)
Payments on long-term debt		(2,428)		—		—		—		—		(2,428)
Net additions in short-term borrowings		10,200		—		—		—		—		10,200
Net additions to collateralized short-term borrowings		—		—		—		4,000		—		4,000
Net changes in advances with consolidated entries		—		6		(25,063)		729		24,328		—
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)		—		—		(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	$	—	$	—	$	—	$	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 of long-term debt		323,680		—		—		—		—		323,680
Payments on long-term debt		(212,920)		—		—		—		—		(212,920)
Net reductions to short-term borrowings		(51,379)		—		—		—		—		(51,379)
Net additions in 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