Ferrellgas Partners (FGPR) investor relations material

Executive summary

• Achieved 9% revenue growth and 12% net earnings growth in Q3 FY2025, driven by strong field performance and residential market expansion.

• Net earnings attributable to Ferrellgas Partners, L.P. were $59.1 million for Q3 FY2025, up from $52.8 million in Q3 FY2024, with growth supported by increased gross margin and operational efficiency.

• Named one of Newsweek's Most Trustworthy Companies in America, reflecting operational excellence and employee dedication.

• Well positioned for the upcoming peak grilling season, with new national accounts secured through multi-year contracts.

• Continued investment in infrastructure and technology, including telematics for fleet management and automation in Blue Rhino tank refurbishment.

Financial highlights

• Q3 FY2025 revenue rose 9% to $560.8 million, with retail and wholesale sales up 9% and 8% year-over-year, respectively.

• Gross profit increased by $16.9 million (6%) to $289.2 million, offset by a 12% rise in cost of products sold due to higher propane prices.

• Adjusted EBITDA grew 10% to $114.8 million, driven by higher gross profit and lower general and administrative expenses.

• Distributable cash flow attributable to equity investors was $85.6 million for Q3 FY2025, with $68.3 million excess for the quarter.

• Net cash provided by operating activities for the nine months was $116.6 million, down from $175.9 million in the prior year, mainly due to a legal settlement and higher working capital requirements.

Outlook and guidance

• Anticipates strong performance in the upcoming peak grilling season, supported by new national account wins and expanded Blue Rhino operations.

• Management has developed and internally approved a plan to restructure capital, refinance, and/or extend the maturity of the Credit Facility and 2026 Notes, with external advisors engaged.

• Expects to complete refinancing of $308.8 million revolving credit facility and $650 million senior unsecured notes before their 2025 and 2026 maturities.

• There is substantial doubt about the ability to continue as a going concern due to upcoming debt maturities and letters of credit, but management expects the refinancing plan to alleviate this risk.

• Positioned to meet increased demand for home-based leisure activities during economic uncertainty, leveraging a robust supply network and customer-focused service.