M. 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 condensed consolidated financial statements.

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEETS

(in thousands)


	As of October 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	$	296,890	$	1	$	—	$	2,631	$	—	$	299,522
Accounts and notes receivable, net		15,547		—		—		103,941		—		119,488
Intercompany receivables		87,191		—		—		—		(87,191)		—
Inventories		78,980		—		—		—		—		78,980
Prepaid expenses and other current assets		40,044		—		—		—		—		40,044
Total current assets		518,652		1		—		106,572		(87,191)		538,034

Property, plant and equipment, net		592,132		—		—		—		—		592,132
Goodwill, net		246,946		—		—		—		—		246,946
Intangible assets, net		101,812		—		—		—		—		101,812
Investments in consolidated subsidiaries		37,821		—		—		—		(37,821)		—
Operating lease right-of-use assets		100,349		—		—		—		—		100,349
Other assets, net		71,029		—		2,255		238		—		73,522
Total assets	$	1,668,741	$	1	$	2,255	$	106,810	$	(125,012)	$	1,652,795

LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Current liabilities:
Accounts payable	$	44,641	$	—	$	—	$	—	$	—	$	44,641
Intercompany payables		—		—		—		87,191		(87,191)		—
Current portion of long-term debt		502,095		—		—		—		—		502,095
Current operating lease liabilities		28,280		—		—		—		—		28,280
Other current liabilities		175,856		—		—		(15,946)		—		159,910
Total current liabilities		750,872		—		—		71,245		(87,191)		734,926

Long-term debt		1,647,106		—		—		—		—		1,647,106
Operating lease liabilities		83,337		—		—		—		—		83,337
Other liabilities		49,543		—		—		—		—		49,543
Contingencies and commitments

Partners' capital (deficit):
Partners' equity		(867,721)		1		2,255		35,565		(37,821)		(867,721)
Accumulated other comprehensive income		5,604		—		—		—		—		5,604
Total partners' capital (deficit)		(862,117)		1		2,255		35,565		(37,821)		(862,117)
Total liabilities and partners' capital (deficit)	$	1,668,741	$	1	$	2,255	$	106,810	$	(125,012)	$	1,652,795

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 income		(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 STATEMENTS OF OPERATIONS

(in thousands)


	For the three months ended October 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	$	281,049	$	—	$	—	$	—	$	—	$	281,049
Other		19,845		—		—		—		—		19,845
Total revenues		300,894		—		—		—		—		300,894

Costs and expenses:
Cost of sales - propane and other gas liquids sales		137,627		—		—		—		—		137,627
Cost of sales - other		3,667		—		—		—		—		3,667
Operating expense - personnel, vehicle, plant and other		109,027		—		—		737		(737)		109,027
Operating expense - equipment lease expense		6,830		—		—		—		—		6,830
Depreciation and amortization expense		21,390		—		—		—		—		21,390
General and administrative expense		13,074		2		—		—		—		13,076
Non-cash employee stock ownership plan compensation charge		708		—		—		—		—		708
Loss on asset sales and disposals		813		—		—		—		—		813

Operating income (loss)		7,758		(2)		—		(737)		737		7,756

Interest expense		(45,901)		—		—		(627)		—		(46,528)
Other income (expense), net		129		—		(21)		1,679		(1,679)		108

Earnings (loss) before income taxes		(38,014)		(2)		(21)		315		(942)		(38,664)

Income tax expense		87		—		—		—		—		87
Equity in earnings (loss) of subsidiaries		292		—		—		—		(292)		—

Net earnings (loss)		(37,809)		(2)		(21)		315		(1,234)		(38,751)

Other comprehensive income		7,917		—		—		—		—		7,917

Comprehensive income (loss)	$	(29,892)	$	(2)	$	(21)	$	315	$	(1,234)	$	(30,834)

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(in thousands)


	For the three months ended October 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	$	273,385	$	—	$	—	$	—	$	—	$	273,385
Other		19,829		—		—		—		—		19,829
Total revenues		293,214		—		—		—		—		293,214

Costs and expenses:
Cost of sales - propane and other gas liquids sales		134,028		—		—		—		—		134,028
Cost of sales - other		3,681		—		—		—		—		3,681
Operating expense - personnel, vehicle, plant and other		114,543		—		—		885		(885)		114,543
Operating expense - equipment lease expense		8,388		—		—		—		—		8,388
Depreciation and amortization expense		19,107		—		—		112		—		19,219
General and administrative expense		9,695		1		—		—		—		9,696
Non-cash employee stock ownership plan compensation charge		795		—		—		—		—		795
Loss on asset sales and disposals		2,235		—		—		—		—		2,235

Operating income (loss)		742		(1)		—		(997)		885		629

Interest expense		(35,691)		—		—		(1,186)		—		(36,877)
Other income (expense), net		(132)		—		—		720		(720)		(132)

Earnings (loss) before income taxes		(35,081)		(1)		—		(1,463)		165		(36,380)

Income tax expense		518		—		—		—		—		518
Equity in earnings (loss) of subsidiary		(1,464)		—		—		—		1,464		—

Net earnings (loss)		(37,063)		(1)		—		(1,463)		1,629		(36,898)

Other comprehensive loss		(6,148)		—		—		—		—		(6,148)

Comprehensive income (loss)	$	(43,211)	$	(1)	$	—	$	(1,463)	$	1,629	$	(43,046)

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(in thousands)


	For the three months ended October 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	$	(9,925)	$	(2)	$	3	$	(2,687)	$	1,121	$	(11,490)

Cash flows from investing activities:
Business acquisitions, net of cash acquired		—		—		—		—		—		—
Capital expenditures		(19,454)		—		—		—		—		(19,454)
Proceeds from sale of assets		1,407		—		—		—		—		1,407
Cash collected for purchase of interest in accounts receivable		—		—		—		153,131		(153,131)		—
Cash remitted to Ferrellgas, L.P. for accounts receivable		—		—		—		(152,010)		152,010		—
Intercompany loan to affiliate		(2,686)		—		—		—		2,686		—
Net cash provided by (used in) investing activities		(20,733)		—		—		1,121		1,565		(18,047)

Cash flows from financing activities:
Payments on long-term debt		(696)		—		—		—		—		(696)
Net changes in advances with consolidated entities		—		2		(3)		2,687		(2,686)		—
Cash payments for principal portion of finance lease liability		(1,703)		—		—		—		—		(1,703)
Cash paid for financing costs and other		(2,297)		—		—		—		—		(2,297)
Net cash provided by (used in) financing activities		(4,696)		2		(3)		2,687		(2,686)		(4,696)

Net change in cash and cash equivalents		(35,354)		—		—		1,121		—		(34,233)
Cash and cash equivalents - beginning of year		332,244		1		—		1,510		—		333,755
Cash, cash equivalents and restricted cash - end of year	$	296,890	$	1	$	—	$	2,631	$	—	$	299,522

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(in thousands)


	For the three months ended October 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	$	21,350	$	(1)	$	506	$	(3,708)	$	(11,000)	$	7,147

Cash flows from investing activities:
Business acquisitions, net of cash acquired		(6,400)		—		—		—		—		(6,400)
Capital expenditures		(18,126)		—		—		—		—		(18,126)
Proceeds from sale of assets		835		—		—		—		—		835
Cash collected for purchase of interest in accounts receivable		—		—		—		161,600		(161,600)		—
Cash remitted to Ferrellgas, L.P. for accounts receivable		—		—		—		(172,600)		172,600		—
Intercompany loan to affiliate		(3,203)		—		—		—		3,203		—
Cash payment to construct assets in connection with future lease transactions		(16,879)		—		—		—		—		(16,879)
Cash receipts in connection with leased vehicles		5,863		—		—		—		—		5,863
Net cash provided by (used in) investing activities		(37,910)		—		—		(11,000)		14,203		(34,707)

Cash flows from financing activities:
Distributions		(101)		—		—		—		—		(101)
Reductions in long-term debt		(512)		—		—		—		—		(512)
Net additions to short-term borrowings		37,000		—		—		—		—		37,000
Net additions to collateralized short-term borrowings		—		—		—		11,000		—		11,000
Net changes in advances with consolidated entries		—		1		(506)		3,708		(3,203)		—
Cash payments for principal portion of finance lease liability		(38)		—		—		—		—		(38)
Cash paid for financing costs and other		(1,102)		—		—		—		—		(1,102)
Net cash provided by (used in) financing activities		35,247		1		(506)		14,708		(3,203)		46,247

Net change in cash and cash equivalents		18,687		—		—		—		—		18,687
Cash and cash equivalents - beginning of year		11,045		1		—		—		—		11,046
Cash and cash equivalents - end of year	$	29,732	$	1	$	—	$	—	$	—	$	29,733