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 January 31, 2021
	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	$	300,436	$	1	$	—	$	6,140	$	—	$	306,577
Accounts and notes receivable, net		5,837		—		—		200,443		—		206,280
Intercompany receivables		169,668		—		—		—		(169,668)		—
Inventories		90,473		—		—		—		—		90,473
Prepaid expenses and other current assets		73,106		—		—		—		—		73,106
Total current assets		639,520		1		—		206,583		(169,668)		676,436

Property, plant and equipment, net		587,870		—		—		—		—		587,870
Goodwill, net		246,946		—		—		—		—		246,946
Intangible assets, net		99,644		—		—		—		—		99,644
Investments in consolidated subsidiaries		39,143		—		—		—		(39,143)		—
Operating lease right-of-use assets		97,249		—		—		—		—		97,249
Loan receivable - Ferrellgas Partners, L.P.		20,151		—		—		—		—		20,151
Other assets, net		88,784		—		2,255		120		—		91,159
Total assets	$	1,819,307	$	1	$	2,255	$	206,703	$	(208,811)	$	1,819,455

LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Current liabilities:
Accounts payable	$	79,224	$	—	$	—	$	—	$	—	$	79,224
Intercompany payables		—		—		—		169,668		(169,668)		—
Current portion of long-term debt		501,865		—		—		—		—		501,865
Current operating lease liabilities		27,895		—		—		—		—		27,895
Other current liabilities		190,560		—		(3)		151		—		190,708
Total current liabilities		799,544		—		(3)		169,819		(169,668)		799,692

Long-term debt		1,650,410		—		—		—		—		1,650,410
Operating lease liabilities		80,901		—		—		—		—		80,901
Other liabilities		49,541		—		—		—		—		49,541

Partners' capital (deficit):
Partners' equity		(795,209)		1		2,258		36,884		(39,143)		(795,209)
Accumulated other comprehensive income		34,120		—		—		—		—		34,120
Total partners' capital (deficit)		(761,089)		1		2,258		36,884		(39,143)		(761,089)
Total liabilities and partners' capital (deficit)	$	1,819,307	$	1	$	2,255	$	206,703	$	(208,811)	$	1,819,455

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 January 31, 2021
	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	$	528,434	$	—	$	—	$	—	$	—	$	528,434
Other		25,126		—		—		—		—		25,126
Total revenues		553,560		—		—		—		—		553,560

Costs and expenses:
Cost of sales - propane and other gas liquids sales		270,777		—		—		—		—		270,777
Cost of sales - other		3,504		—		—		—		—		3,504
Operating expense - personnel, vehicle, plant and other		115,247		—		—		2,437		(2,437)		115,247
Operating expense - equipment lease expense		6,862		—		—		—		—		6,862
Depreciation and amortization expense		21,249		—		—		—		—		21,249
General and administrative expense		20,254		—		—		—		—		20,254
Non-cash employee stock ownership plan compensation charge		762		—		—		—		—		762
Loss on asset sales and disposals		80		—		—		—		—		80

Operating income (loss)		114,825		—		—		(2,437)		2,437		114,825

Interest expense		(45,958)		—		—		(564)		—		(46,522)
Other income (expense), net		3,774		—		(15)		1,614		(1,614)		3,759

Earnings (loss) before income taxes		72,641		—		(15)		(1,387)		823		72,062

Income tax expense		312		—		—		—		—		312
Equity in earnings (loss) of subsidiaries		(1,402)		—		—		—		1,402		—

Net earnings (loss)		70,927		—		(15)		(1,387)		2,225		71,750

Other comprehensive income		28,516		—		—		—		—		28,516

Comprehensive income (loss)	$	99,443	$	—	$	(15)	$	(1,387)	$	2,225	$	100,266

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
Operating expense - equipment lease expense		8,261		—		—		—		—		8,261
Depreciation and amortization expense		19,684		—		—		111		—		19,795
General and administrative expense		14,082		3		—		—		—		14,085
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 subsidiary		(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 six months ended January 31, 2021
	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	$	809,483	$	—	$	—	$	—	$	—	$	809,483
Other		44,971		—		—		—		—		44,971
Total revenues		854,454		—		—		—		—		854,454

Costs and expenses:
Cost of sales - propane and other gas liquids sales		408,404		—		—		—		—		408,404
Cost of sales - other		7,171		—		—		—		—		7,171
Operating expense - personnel, vehicle, plant and other		224,274		—		—		3,174		(3,174)		224,274
Operating expense - equipment lease expense		13,692		—		—		—		—		13,692
Depreciation and amortization expense		42,639		—		—		—		—		42,639
General and administrative expense		33,328		2		—		—		—		33,330
Non-cash employee stock ownership plan compensation charge		1,470		—		—		—		—		1,470
Loss on asset sales and disposals		893		—		—		—		—		893

Operating income (loss)		122,583		(2)		—		(3,174)		3,174		122,581

Interest expense		(91,859)		—		—		(1,191)		—		(93,050)
Other income (expense), net		3,903		—		(36)		3,293		(3,293)		3,867

Earnings (loss) before income taxes		34,627		(2)		(36)		(1,072)		(119)		33,398

Income tax expense		399		—		—		—		—		399
Equity in earnings (loss) of subsidiary		(1,110)		—		—		—		1,110		—

Net earnings (loss)		33,118		(2)		(36)		(1,072)		991		32,999

Other comprehensive loss		36,433		—		—		—		—		36,433

Comprehensive income (loss)	$	69,551	$	(2)	$	(36)	$	(1,072)	$	991	$	69,432

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
Operating expense - equipment lease expense		16,649		—		—		—		—		16,649
Depreciation and amortization expense		38,791		—		—		223		—		39,014
General and administrative expense		23,777		4		—		—		—		23,781
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 subsidiaries		(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 CASH FLOWS

(in thousands)


	For the six months ended January 31, 2021
	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	$	44,691	$	(6)	$	(9)	$	(4,856)	$	4,631	$	44,451

Cash flows from investing activities:
Capital expenditures		(35,333)		—		—		—		—		(35,333)
Proceeds from sale of assets		3,144		—		—		—		—		3,144
Cash collected for purchase of interest in accounts receivable		—		—		—		422,498		(422,498)		—
Cash remitted to Ferrellgas, L.P. for accounts receivable		—		—		—		(417,867)		417,867		—
Intercompany loan to affiliate		(4,870)								4,870
Other - Loan to MLP		(19,900)		—		—		—		—		(19,900)
Net cash provided by (used in) investing activities		(56,959)		—		—		4,631		239		(52,089)

Cash flows from financing activities:
Payments on long-term debt		(1,120)		—		—		—		—		(1,120)
Net changes in advances with consolidated entities		—		6		9		4,855		(4,870)		—
Cash payments for principal portion of finance lease liability		(3,460)		—		—		—		—		(3,460)
Cash paid for financing costs and other		(14,960)		—		—		—		—		(14,960)
Net cash provided by (used in) financing activities		(19,540)		6		9		4,855		(4,870)		(19,540)

Net change in cash and cash equivalents		(31,808)		—		—		4,630		—		(27,178)
Cash and cash equivalents - beginning of year		332,244		1		—		1,510		—		333,755
Cash, cash equivalents and restricted cash - end of year	$	300,436	$	1	$	—	$	6,140	$	—	$	306,577

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 payment 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 provided by (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 entries		—		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