Ferrellgas Partners (FGPR) investor relations material

Executive summary

• Achieved a strong operational start to the fiscal year, focusing on customer service, efficiency, and safety, while successfully refinancing $650 million in notes and expanding the revolving credit facility, resulting in credit rating upgrades from S&P Global and Moody's.

• Net loss attributable to partners was $26.9 million, a significant improvement from $146.7 million in the prior year, mainly due to the absence of a $125 million litigation settlement.

• Adjusted EBITDA decreased by $6.5 million (18%) to $29.3 million year-over-year, primarily due to higher operating and administrative expenses.

• Strategic priorities included organic growth, acquisitions, and safety investments, with progress in expanding the customer base and enhancing employee training.

• Distributable cash flow attributable to equity investors was negative $0.6 million, down from $3.4 million in the prior year, reflecting lower Adjusted EBITDA and higher net cash interest expense.

Financial highlights

• Total revenues for the quarter were $355.2 million, down 2% from $364.1 million year-over-year, driven by lower propane sales volumes and prices.

• Gross profit remained flat at $195.2 million compared to the prior year quarter.

• Margin per gallon increased 6% year-over-year; revenue decrease was offset by a $8.8 million (5%) decrease in product cost.

• Operating income was $1.9 million, compared to an operating loss of $122.9 million in the prior year.

• Net cash used in operating activities improved to $8.5 million from $34.3 million in the prior year.

Outlook and guidance

• Confident in continued disciplined growth, operational excellence, and customer focus to expand market share and achieve sustained long-term growth.

• Management expects liquidity from operating cash flows, cash on hand, and the credit facility to be sufficient for foreseeable capital and working capital needs.

• M&A pipeline remains healthy, with strategic acquisitions expected to resume post-winter season.

• No significant fluctuations in maintenance capital expenditures are anticipated, but growth capital expenditures may vary based on opportunities.

• Well positioned for the upcoming winter heating season and full fiscal year.