FERRELLGAS FINANCE CORP

Ferrellgas Partners, L.P.

Overview and business model

• Structure: Ferrellgas Partners, L.P. is a Delaware limited partnership formed in 1994. It is a holding entity with two direct subsidiaries: the operating partnership (Ferrellgas, L.P.) and Ferrellgas Partners Finance Corp. The general partner is Ferrellgas, Inc. Ferrell Companies (owned by an ESOP) is the sole shareholder of the general partner.
• Core activities:
  • Retail distribution of propane and related equipment and supplies
  • Portable tank exchange business, branded nationally as Blue Rhino
  • Sale of refined fuels and provision of common carrier transportation services
• Market position: The company states it was the second-largest retail marketer of propane in the United States by retail volume in fiscal 2026 and a leading national provider of portable tank exchange.

Geographic coverage

• Operations across all 50 states, the District of Columbia, and Puerto Rico

Key products and services

• Propane distribution to residential, industrial/commercial, agricultural, and other customers
• Portable tank exchange services through Blue Rhino (network includes company-owned and independently owned distributors)
• Equipment sales related to propane (tanks, appliances, fittings) at select distribution locations
• Refined fuels and transportation services (common carrier)

Scale and footprint (as of July 31, 2026)

• Locations and network:
  • Total propane distribution locations: 1,055 (nationwide)
  • Service centers and units: 36 service centers and 664 service units
  • Portable tank exchange network: 135 company-owned distributors and 4 independently owned distributors
  • Blue Rhino production facilities: 12 company-owned facilities
• Storage and tanks:
  • Owned propane storage capacity: approximately 38.5 million gallons
  • Leased propane storage capacity (underground/storage facilities and pipelines): approximately 33.1 million gallons
  • Owned propane tanks: approximately 0.7 million
  • Portable propane cylinders: approximately 4.1 million
• Office and facilities:
  • Corporate headquarters office space: 1,728 square feet (Kansas City area); majority of workforce operates remotely
• Propane fleet and equipment:
  • Fleet includes truck tractors, propane transport trailers, portable tank delivery trucks/trailers, bulk delivery trucks, pickup/service trucks, railroad tank cars, and other assets; the filing shows varying percentages owned versus leased by asset category

People

• Employees: 3,934 full-time employees at the general partner as of July 31, 2026 (propane field operations and centralized corporate functions)

Customers and end markets

• Customer types: Residential, industrial/commercial, portable tank exchange, agricultural, wholesale, and other customers
• Residential metric: Approximately 70% of residential customers utilize company-provided equipment (as of July 31, 2026)

Financial snapshot and commercial metrics

• Propane sales volumes:
  • Fiscal 2026: 760 million gallons
  • Fiscal 2025: 784 million gallons
  • Fiscal 2024: 764 million gallons
• Gross margin concept: Gross margin from retail propane distribution is primarily driven by the cents-per-gallon difference between sales price and the costs to purchase and deliver product
• Corporate disclosures reference debt, distribution obligations, and a unit-based capital structure

Corporate and branding

• Public trading: Ferrellgas Partners Class A Units trade on the OTC Markets under the symbol FGPR
• Brand: Blue Rhino is the nationally branded portable tank exchange business
• Related parties: Ferrell Companies owns roughly 10% of outstanding Class A Units; Ferrell Companies is 100% owned by an ESOP

Strategic emphasis

• Growth strategy: Expand market share through disciplined acquisitions and organic growth; use national presence and economies of scale to improve cost and service metrics
• Technology: Invests in a centralized platform to route and schedule deliveries and to manage customer and administrative workflows; 36 service centers and 664 service units support operations
• Regulation and safety: Operations are subject to environmental, health, and safety regulations; risk management covers weather, commodity prices, supply, cybersecurity, and data privacy

Operating characteristics

• Seasonality: Heating-season demand (winter) drives the majority of propane sales; portable tank exchange volumes peak in spring and summer
• Weather sensitivity and pricing: Demand is affected by heating degree days and weather patterns; propane prices are linked to wholesale energy markets and the company uses hedging to manage price risk