Ferrellgas (OTC: FGPR) lifts Q2 profit and converts Class B units

Filing Impact

(High)

Filing Sentiment

(Neutral)

Form Type

8-K

Rhea-AI Filing Summary

Ferrellgas Partners, L.P. reported stronger results for the quarter ended January 31, 2026. Revenue slipped to $641.4 million from $669.8 million, but gross profit edged up to $350.4 million as lower propane costs expanded margins.

Net earnings attributable to the partnership rose to $102.2 million from $98.8 million, and Adjusted EBITDA increased to $166.1 million from $157.0 million, helped by lower general and administrative and lease expenses. Margin per gallon improved about 6%, driving roughly 13% higher operating income per gallon.

The board declared a cash distribution of $82.32 per Class B Unit, about $107.0 million in total, payable in March 2026. After this payment, Ferrellgas intends to convert all 1.3 million Class B Units into Class A Units on a 5-for-1 basis, adding 6.5 million Class A Units and simplifying its capital structure.

Positive

None.

Negative

Significant equity dilution risk: After paying a roughly $107.0 million Class B distribution, Ferrellgas plans to convert 1.3 million Class B Units into 6.5 million Class A Units (5-for-1), materially increasing Class A Units outstanding and potentially diluting existing holders.

Insights

Ferrellgas posts modest margin-driven growth and plans a large Class B-to-A unit conversion.

Ferrellgas delivered slightly higher profitability despite lower propane prices and revenue. Net earnings attributable to the partnership rose to $102.2 million and Adjusted EBITDA reached $166.1 million, as cost of product fell faster than sales and overhead spending declined.

Operationally, the business benefited from winter demand, higher margin per gallon and efficiency gains, including lower lease expenses after refinancing certain equipment leases. Retail gross profit grew while wholesale volumes were softer without hurricane-related activity, showing some sensitivity to weather-driven events.

The most structural change is the board’s declaration of an $82.32 per Class B Unit cash distribution, about $107.0 million total, and the intent to convert 1.3 million Class B Units into Class A Units at a 5-for-1 ratio shortly thereafter. That conversion will significantly increase Class A Units outstanding, so the long‑term impact depends on how higher unit count interacts with future earnings and cash distributions.

03/05/2026 - 06:30 AM

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): March 5, 2026

Ferrellgas Partners, L.P.

(Exact name of registrant as specified in its charter)


Delaware	001-11331	43-1698480
(State or other jurisdiction	(Commission	(I.R.S. Employer
of incorporation)	File Number)	Identification No.)

One Liberty Plaza,

Liberty, Missouri

64068

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: 816-792-1600

Not Applicable

Former name or former address, if changed since last report

Ferrellgas Partners Finance Corp.

(Exact name of registrant as specified in its charter)


Delaware	333-06693-02	43-1742520
(State or other jurisdiction	(Commission	(I.R.S. Employer
of incorporation)	File Number)	Identification No.)

One Liberty Plaza,

Liberty, Missouri

64068

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: 816-792-1600

n/a

Former name or former address, if changed since last report

Ferrellgas, L.P.

(Exact name of registrant as specified in its charter)


Delaware	000-50182	43-1698481
(State or other jurisdiction	(Commission	(I.R.S. Employer
of incorporation)	File Number)	Identification No.)

One Liberty Plaza,

Liberty, Missouri

64068

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: 816-792-1600

n/a

Former name or former address, if changed since last report

Ferrellgas Finance Corp.

(Exact name of registrant as specified in its charter)


Delaware	000-50183	14-1866671
(State or other jurisdiction	(Commission	(I.R.S. Employer
of incorporation)	File Number)	Identification No.)

One Liberty Plaza,

Liberty, Missouri

64068

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: 816-792-1600

n/a

Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Ferrellgas Partners, L.P.

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Ferrellgas Partners Finance Corp.

Emerging growth company ☐

Ferrellgas, L.P.

Emerging growth company ☐

Ferrellgas Finance Corp.

Emerging growth company ☐

Securities registered pursuant to Section 12(b) of the Act:


Title of each class		Trading Symbol(s)		Name of each exchange on which registered
N/A		N/A		N/A

Item 2.02 Results of Operations and Financial Condition.

The information included in Item 7.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.02 of this Current Report on Form 8-K.

Item 7.01 Regulation FD Disclosure.

On March 5, 2026, Ferrellgas Partners, L.P. (OTC Markets: “FGPR”) (“Ferrellgas”) issued a press release regarding its financial results for the second fiscal quarter ended January 31, 2026. A copy of this press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

On March 5, 2026, the Company will conduct a teleconference on the Internet at https://edge.media-server.com/mmc/p/2dyvibp4 to discuss the results of operations for the second fiscal quarter ended January 31, 2026. The webcast of the teleconference will begin at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). Questions may be submitted via the investor relations e-mail box at InvestorRelations@ferrellgas.com.

Item 9.01 Financial Statements and Exhibits

Exhibit 99.1 — Press release of Ferrellgas Partners, L.P. dated March 5, 2026, reporting its financial results for the second fiscal quarter ended January 31, 2026.

Limitation on Materiality and Incorporation by Reference

The information in this Current Report on Form 8-K related to Items 2.02 and 7.01, including Exhibit 99.1 furnished herewith, is being furnished to the SEC pursuant to Item 2.02 and Item 7.01 of Form 8-K and is not deemed to be "filed" with the SEC for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of Section 18. In addition, such information is not to be incorporated by reference into any registration statement of Ferrellgas Partners, L.P., Ferrellgas Partners Finance Corp., Ferrellgas, L.P. or Ferrellgas Finance Corp. or other filings of such entities made pursuant to the Exchange Act or the Securities Act, unless specifically identified as being incorporated therein by reference.

The furnishing of particular information in this Current Report, including Exhibit 99.1 furnished herewith, pursuant to Item 7.01 of Form 8-K is not intended to, and does not, constitute a determination or admission by Ferrellgas Partners, L.P., Ferrellgas Partners Finance Corp., Ferrellgas, L.P. or Ferrellgas Finance Corp. as to the materiality or completeness of any such information that is required to be disclosed solely by Regulation FD of the Exchange Act.


Exhibit No.		Description
99.1		Press release of Ferrellgas Partners, L.P. dated March 5, 2026, reporting its financial results for the second fiscal quarter ended January 31, 2026.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	FERRELLGAS PARTNERS, L.P.
	By:	Ferrellgas, Inc., its general partner

Date: March 5, 2026	By:	/s/ Tamria A. Zertuche
		Chief Executive Officer and President

	FERRELLGAS PARTNERS FINANCE CORP.

Date: March 5, 2026	By:	/s/ Tamria A. Zertuche
		Chief Executive Officer, President, and Sole Director

	FERRELLGAS, L.P.
	By:	Ferrellgas, Inc., its general partner

Date: March 5, 2026	By:	/s/ Tamria A. Zertuche
		Chief Executive Officer and President


	FERRELLGAS FINANCE CORP.

Date: March 5, 2026	By:	/s/ Tamria A. Zertuche
		Chief Executive Officer, President, and Sole Director

Exhibit 99.1

FERRELLGAS PARTNERS, L.P. REPORTS

SECOND QUARTER FISCAL YEAR 2026 RESULTS

Liberty, MO., March 5, 2026 (GLOBE NEWSWIRE) – Ferrellgas Partners, L.P. (OTC: FGPR) (“Ferrellgas” or the “Company”) today reported financial results for its 2026 second fiscal quarter ended January 31, 2026.

“Our team’s preparation at the beginning of fiscal 2026 enabled us to achieve strong second-quarter results,” said Tamria Zertuche, President and CEO. “Extended cold weather across much of the eastern region, combined with warmer conditions in the west, created both challenges and opportunities for the beginning of the winter heating season. Our employee-owners showed exceptional adaptability by reallocating personnel and resources to meet increased demand while continuing to drive growth and manage expenses. As a result, we achieved expanded margins, increased profit and are well positioned for the upcoming quarter and the rest of the fiscal year.”

Financial Highlights:

Gross profit increased by $3.0 million, or approximately 1%, during the quarter as compared to the prior-year period. Average propane prices (based on Mont Belvieu, Texas) declined 21.7% in the second quarter of fiscal 2026 compared to the prior-year period. A $28.4 million, or approximately 4%, decline in revenue was more than offset by a $31.3 million, or approximately 10%, reduction in cost of product. Net earnings attributable to the Company increased by $3.3 million, or approximately 3%, to $102.2 million in the second quarter of fiscal 2026, compared to $98.8 million in the prior-year period, primarily driven by the increase in gross profit.

Adjusted EBITDA, a non-GAAP financial measure, rose by $9.1 million, or approximately 6%, to $166.1 million, compared to $157.0 million in the second quarter of the prior year. The improvement was driven by a $4.6 million reduction in general and administrative expenses, a $1.6 million decrease in operating expenses related to equipment leases, and a $3.0 million increase in gross profit. Lower general and administrative expenses were driven by changes in personnel expenses and reduced legal costs. The decrease in operating lease expenses were driven by the refinancing of several operating leases into finance leases during the quarter.

Preparation efforts in the prior quarter positioned the Company well to meet winter demand from residential customers, resulting in a $7.1 million, or approximately 3%, increase in gross profit for our retail business. This was partially offset by softer wholesale performance, as no hurricane related events occurred during the first six months of fiscal 2026. Margin per gallon continued to benefit from operational efficiencies, increasing approximately 6% as the Company reduced unproductive deliveries and skipped stops. These improvements contributed to a roughly 13% increase in operating income per gallon.

Operational Highlights:

As part of our winter readiness efforts, we upgraded our supply infrastructure to enhance inventory visibility and deploy predictive analytics, enabling more disciplined planning and reliable execution throughout the season. We realized the benefits in the second fiscal quarter, successfully meeting elevated customer demand while maintaining strong operational efficiency. Winter conditions arrived later in the quarter after unseasonably warm weather in November and December of fiscal 2026, particularly across the western half of the country. Average temperatures (measured by heating degree days) were 16% warmer than normal (based on AccuWeather’s ten-year average) and 27% warmer than the prior year quarter in the western half of the country. The above average temperatures in the west were partially offset by the cold in the east. By late January, Winter Storm Fern and other significant weather events in the eastern United States prompted widespread emergency declarations. Our national footprint allowed us to reposition drivers and equipment from west to east to meet increased demand.

The Retail teams continued to deliver profitable growth from tank sets with increases of 7.2% in all customer segments. Our residential conversion rate increased 3.4% over prior year quarter. While responding to heightened winter consumer demand, our Customer Service team maintained outbound sales initiatives that are expected to generate approximately one million additional gallons. Our National Sales team also secured six new national account customers during the quarter. The Company also transitioned 0.9% of our existing Will Call network, just over 6,100 locations, to Auto Fill delivery. This shift improves route density and overall efficiency, enhances demand forecasting, and contributes to stronger margin performance. By broadening our Auto Fill footprint, we are better equipped to serve customers proactively and dependably during periods of heightened winter demand. These wins underscore the strength of our national platform, combining dedicated account management, focused customer support, and dependable local operations to deliver a consistent and high-quality customer experience. Our continued emphasis on safety is also delivering measurable results with our Total Recordable Incident Rate improving 10% compared to the prior quarter.

Our Wholesale team’s prior quarter’s capital and operational investments included increases in drivers and trucks. In addition, the team opened seven new distribution service locations, enabling it to meet winter demand in the second quarter. The Company expanded capacity at one of our tank exchange production facilities to support strategic growth, seeing an approximate 25% throughput increase in the south central region of the country during periods of elevated seasonal demand. This allowed us to deliver more cylinders during Winter Storm Fern than any other two week period during the traditional summer peak months. The Company also donated filled propane tanks during Winter Storm Fern to nearly a dozen charities from Mississippi to North Carolina, fueling a variety of appliances and helping to keep storm victims warm and fed in the midst of widespread power outages, supporting our commitment to the communities we serve.

Our continued investment in telematics has strengthened our operational discipline by enhancing real-time visibility, improving driver safety performance, and achieving measurable gains in fuel efficiency and fleet productivity across the enterprise. Driven by strong financial and operational performance this quarter, the Company is poised to accelerate strategic growth, expand our customer base, and advance targeted efficiency investments that enhance margins and asset productivity. These tangible gains, combined with our disciplined focus on continuous improvement, position us to deliver consistent earnings growth, sustainable cash flow generation, and long-term value creation for our stakeholders.

On March 4, 2026, the board of directors of Ferrellgas, Inc., in its capacity as the general partner of the Company, declared a cash distribution on the Company’s Class B Units of $82.32 per Class B Unit, or approximately $107.0 million in the aggregate. The distribution is payable on or about March 13, 2026, to Class B Unitholders of record as of the close of business on March 6, 2026. Upon payment of this distribution, the Company will have met the “Class B Conversion Threshold” as defined in the Company’s partnership agreement.

On March 4, 2026, the board of directors of Ferrellgas, Inc., in its capacity as the general partner of the Company, approved the Company’s intent to elect, by written notice to the holders of the Class B Units, to convert all 1.3 million outstanding Class B Units into Class A Units shortly after the payment of the distribution. Upon the making of such election, each Class B Unit will be converted into five Class A Units in accordance with the Company’s partnership Agreement.

On Thursday, March 5, 2026, the Company will conduct a teleconference on the Internet at https://edge.media-server.com/mmc/p/2dyvibp4 to discuss the results of operations for the second fiscal quarter ended January 31, 2026. The webcast of the teleconference will begin at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). Questions may be submitted via the investor relations e-mail box at InvestorRelations@ferrellgas.com.

About Ferrellgas

Ferrellgas Partners, L.P., through its operating partnership, Ferrellgas, L.P., and subsidiaries, serves propane customers in all 50 states, the District of Columbia, and Puerto Rico. Its Blue Rhino propane exchange brand is sold at over 64,000 locations nationwide. Ferrellgas employees indirectly own 1.1 million Class A Units of the partnership, through an employee stock ownership plan. Ferrellgas Partners, L.P. filed an Annual Report on Form 10-K for the fiscal year ended July 31, 2025, with the Securities and Exchange Commission on October 15, 2025. Investors can request a hard copy of this filing free of charge and obtain more information about the partnership online at www.ferrellgas.com. For more information, follow Ferrellgas on Facebook, X, LinkedIn, and Instagram.

Cautionary Note Regarding Forward-Looking Statements

Statements included in this release concerning current estimates, expectations, projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are forward-looking statements as defined under federal securities laws. These statements often use words such as “anticipate,” “believe,” “intend,” “plan,” “projection,” “forecast,” “strategy,” “position,” “continue,” “estimate,” “expect,” “may,” “will,” or the negative of those terms or other variations of them or comparable terminology. A variety of known and unknown risks, uncertainties and other factors could cause results, performance, and expectations to differ materially from anticipated results, performance, and expectations, including the effect of weather conditions on the demand for propane; the prices of wholesale propane, motor fuel and crude oil; disruptions to the supply of propane; competition from other industry participants and other energy sources; energy efficiency and technology advances; significant delays in the collection of accounts or notes receivable; customer, counterparty, supplier or vendor defaults; changes in demand for, and production of, hydrocarbon products; inherent operating and litigation risks in gathering, transporting, handling and storing propane; costs of complying with, or liabilities imposed under, environmental, health and safety laws; the impact of pending and future legal proceedings; the interruption, disruption, failure or malfunction of our information technology systems including due to cyber-attack; economic and political instability, particularly in areas of the world tied to the energy industry, including the ongoing conflicts between Russia and Ukraine and in the Middle East; disruptions in the capital and credit markets, related to the evolving global tariff environment or otherwise; and access to available capital to meet our operating and debt-service requirements. These risks, uncertainties, and other factors also include those discussed in the Annual Report on Form 10-K of Ferrellgas Partners, L.P., Ferrellgas, L.P., Ferrellgas Partners Finance Corp., and Ferrellgas Finance Corp. for the fiscal year ended July 31, 2025, and in other documents filed from time to time by these entities with the Securities and Exchange Commission. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this release are made only as of the date hereof. Ferrellgas disclaims any intention or obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.

Contacts

Investor Relations – InvestorRelations@ferrellgas.com

FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per unit data)

(unaudited)


	Three months ended				Six months ended				Twelve months ended
	January 31,				January 31,				January 31,
	2026		2025		2026		2025		2026		2025
Revenues:
Propane and other gas liquids sales	$	601,723	$	637,027	$	931,037	$	973,825	$	1,785,305	$	1,782,121
Other		39,691		32,749		65,566		60,036		115,774		107,966
Total revenues		641,414		669,776		996,603		1,033,861		1,901,079		1,890,087

Cost of sales:
Propane and other gas liquids sales		286,951		318,706		443,296		483,062		862,306		874,534
Other		4,073		3,665		7,758		8,111		13,096		12,421

Gross profit		350,390		347,405		545,549		542,688		1,025,677		1,003,132

Operating expense - personnel, vehicle, plant & other		170,317		170,740		320,082		318,914		632,002		616,232
Operating expense - equipment lease expense		3,389		4,996		7,581		10,500		15,801		21,366
Depreciation and amortization expense		26,522		24,345		51,742		48,670		101,498		98,302
General and administrative expense		11,676		16,714		23,690		154,640		47,667		174,963
Non-cash employee stock ownership plan compensation charge		952		703		1,868		1,556		3,455		3,170
Loss on asset sales and disposals		1,372		2,264		2,551		3,691		1,817		4,793

Operating income		136,162		127,643		138,035		4,717		223,437		84,306

Interest expense		(33,192)		(27,893)		(59,843)		(53,974)		(113,933)		(103,677)
Loss on extinguishment of debt		—		—		(3,003)		—		(3,003)		—
Other income, net		434		321		1,017		1,178		2,783		3,484

Earnings (loss) before income tax expense		103,404		100,071		76,206		(48,079)		109,284		(15,887)

Income tax expense		330		385		496		565		1,303		780

Net earnings (loss)		103,074		99,686		75,710		(48,644)		107,981		(16,667)

Net earnings (loss) attributable to noncontrolling interest⁽¹⁾		886		843		449		(819)		461		(825)

Net earnings (loss) attributable to Ferrellgas Partners, L.P.	$	102,188	$	98,843	$	75,261	$	(47,825)	$	107,520	$	(15,842)

Class A unitholders' interest in net earnings (loss)	$	12,195	$	11,660	$	6,032	$	(79,810)	$	6,363	$	(141,891)

Net earnings (loss) per unitholders' interest
Basic and diluted net earnings (loss) per Class A Unit	$	2.51	$	2.40	$	1.24	$	(16.43)	$	1.31	$	(29.21)
Weighted average Class A Units outstanding - basic and diluted		4,858		4,858		4,858		4,858		4,858		4,858

(1)	Amounts allocated to the general partner for its 1.0101% interest (excluding the economic interest attributable to the preferred unitholders) in the operating partnership, Ferrellgas, L.P.

Supplemental Data and Reconciliation of Non-GAAP Items:


	Three months ended				Six months ended				Twelve months ended
	January 31,				January 31,				January 31,
	2026		2025		2026		2025		2026		2025
Net earnings (loss) attributable to Ferrellgas Partners, L.P.	$	102,188	$	98,843	$	75,261	$	(47,825)	$	107,520	$	(15,842)
Income tax expense		330		385		496		565		1,303		780
Interest expense		33,192		27,893		59,843		53,974		113,933		103,677
Depreciation and amortization expense		26,522		24,345		51,742		48,670		101,498		98,302
EBITDA		162,232		151,466		187,342		55,384		324,254		186,917
Non-cash employee stock ownership plan compensation charge		952		703		1,868		1,556		3,455		3,170
Loss on extinguishment of debt		—		—		3,003		—		3,003		—
Loss on asset sales and disposal		1,372		2,264		2,551		3,691		1,817		4,793
Other income, net		(434)		(321)		(1,017)		(1,178)		(2,783)		(3,484)
Legal fees and settlements related to non-core businesses		—		1,768		—		129,154		1,481		130,987
Legal fees and settlements related to core businesses		—		500		—		4,540		—		4,540
Acquisition and related costs ⁽¹⁾		—		(798)		—		(798)		—		1,371
Compliance costs ⁽²⁾		704		—		704		—		704		—
Business transformation costs ⁽³⁾		435		615		556		1,321		907		2,966
Net earnings (loss) attributable to noncontrolling interest ⁽⁴⁾		886		843		449		(819)		461		(825)
Adjusted EBITDA ⁽⁵⁾		166,147		157,040		195,456		192,851		333,299		330,435
Net cash interest expense⁽⁶⁾		(31,004)		(23,431)		(54,919)		(45,904)		(101,080)		(88,778)
Maintenance capital expenditures⁽⁷⁾		(9,214)		(8,727)		(15,502)		(19,141)		(28,428)		(32,261)
Cash paid for income taxes		(244)		(333)		(323)		(410)		(1,258)		(750)
Proceeds from certain asset sales		495		655		893		1,211		2,640		2,141
Distributable cash flow attributable to equity investors⁽⁸⁾		126,180		125,204		125,605		128,607		205,173		210,787
Less: Distributions accrued or paid to preferred unitholders		15,802		16,231		32,283		32,463		63,888		64,740
Distributable cash flow attributable to general partner and non-controlling interest		(2,524)		(2,504)		(2,512)		(2,572)		(4,104)		(4,216)
Distributable cash flow attributable to Class A and B Unitholders ⁽⁹⁾		107,854		106,469		90,810		93,572		137,181		141,831
Less: Distributions paid to Class A and B Unitholders ⁽¹⁰⁾		—		—		—		—		—		99,996
Distributable cash flow excess ⁽¹¹⁾	$	107,854	$	106,469	$	90,810	$	93,572	$	137,181	$	41,835

Propane gallons sales
Retail - Sales to End Users		202,343		205,975		307,406		312,706		561,648		559,097
Wholesale - Sales to Resellers		61,611		69,490		105,233		120,730		201,682		214,857
Total propane gallons sales		263,954		275,465		412,639		433,436		763,330		773,954

(1)	Non-recurring due diligence related to potential acquisition activities, restructuring costs, and other adjustments.

(2)	Non-recurring compliance costs included in “Operating, general and administrative expense”.

(3)	Non-recurring costs included in “Operating, general and administrative expense” related to the implementation of business transformation initiatives.

(4)	Amounts allocated to the general partner for its 1.0101% interest (excluding the economic interest attributable to the preferred unitholders) in the operating partnership, Ferrellgas, L.P.

(5)

Adjusted EBITDA is calculated as net earnings (loss) attributable to Ferrellgas Partners, L.P., plus the sum of the following: income tax expense, interest expense, depreciation and amortization expense, non-cash employee stock ownership plan compensation charge, loss on extinguishment of debt, loss on asset sales and disposals, other income, net, legal fees and settlements related to non-core businesses, legal fees and settlements related to core businesses, acquisition and related costs, compliance costs, business transformation costs, and net earnings (loss) attributable to noncontrolling interest. Management believes the presentation of this measure is relevant and useful because it allows investors to view the partnership's performance in a manner similar to the method management uses, adjusted for items management believes make it easier to compare its results with other companies that have different financing and capital structures. Adjusted EBITDA, as management defines it, may not be comparable to similarly titled measurements used by other companies. Items added into our calculation of Adjusted EBITDA that will not occur on a continuing basis may have associated cash payments. Adjusted EBITDA should be viewed in conjunction with measurements that are computed in accordance with GAAP.

(6)	Net cash interest expense is the sum of interest expense less non-cash interest expense and other income, net.

(7)	Maintenance capital expenditures include capitalized expenditures for betterment and replacement of property, plant and equipment, and may from time to time include the purchase of assets that are typically leased.

(8)

Distributable cash flow attributable to equity investors is calculated as Adjusted EBITDA minus net cash interest expense, maintenance capital expenditures and cash paid for income taxes plus proceeds from certain asset sales. Management considers distributable cash flow attributable to equity investors a meaningful measure of the partnership’s ability to declare and pay quarterly distributions to equity investors, including holders of the operating partnership’s Preferred Units. Distributable cash flow attributable to equity investors, as management defines it, may not be comparable to similarly titled measurements used by other companies. Items added into our calculation of distributable cash flow attributable to equity investors that will not occur on a continuing basis may have associated cash payments. Distributable cash flow attributable to equity investors should be viewed in conjunction with measurements that are computed in accordance with GAAP.

(9)

Distributable cash flow attributable to Class A and B Unitholders is calculated as Distributable cash flow attributable to equity investors minus distributions accrued or paid on the Preferred Units and distributable cash flow attributable to general partner and noncontrolling interest. Management considers distributable cash flow attributable to Class A and B Unitholders a meaningful measure of the partnership’s ability to declare and pay quarterly distributions to Class A and B Unitholders. Distributable cash flow attributable to Class A and B Unitholders, as management defines it, may not be comparable to similarly titled measurements used by other companies. Items added to our calculation of distributable cash flow attributable to Class A and B Unitholders that will not occur on a continuing basis may have associated cash payments. Distributable cash flow attributable to Class A and B Unitholders should be viewed in conjunction with measurements that are computed in accordance with GAAP.

(10)	The Company did not pay any distributions to Class A Unitholders during any of the periods in fiscal 2026 or fiscal 2025.

(11)

Distributable cash flow excess is calculated as Distributable cash flow attributable to Class A and B Unitholders minus Distributions paid to Class A and B Unitholders. Distributable cash flow excess, if any, is retained to establish reserves, to reduce debt, to fund capital expenditures and for other partnership purposes, and any shortage is funded from previously established reserves, cash on hand or borrowings under our Credit Facility. Management considers Distributable cash flow excess a meaningful measure of the partnership’s ability to effectuate those purposes. Distributable cash flow excess, as management defines it, may not be comparable to similarly titled measurements used by other companies. Items added into our calculation of distributable cash flow excess that will not occur on a continuing basis may have associated cash payments. Distributable cash flow excess should be viewed in conjunction with measurements that are computed in accordance with GAAP.

FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except unit data)

(unaudited)


ASSETS		January 31, 2026		July 31, 2025

Current assets:
Cash and cash equivalents		$	88,386	$	96,883
Accounts and notes receivable (net of allowance for expected credit losses of $4,982 and $4,330 at January 31, 2026 and July 31, 2025, respectively)			238,645		127,510
Inventories			85,484		87,807
Prepaid expenses and other current assets			40,948		30,471
Total current assets			453,463		342,671

Property, plant and equipment, net			598,832		602,692
Goodwill, net			257,155		257,155
Intangible assets (net of accumulated amortization of $370,481 and $366,817 at January 31, 2026 and July 31, 2025, respectively)			102,786		106,451
Operating lease right-of-use assets			35,886		39,045
Other assets, net			95,187		68,702
Total assets		$	1,543,309	$	1,416,716


LIABILITIES, MEZZANINE EQUITY AND DEFICIT

Current liabilities:
Accounts payable		$	74,503	$	31,083
Short-term borrowing			62,500		—
Current portion of long-term debt			1,717		652,178
Current operating lease liabilities			15,375		16,082
Other current liabilities			196,681		215,154
Total current liabilities			350,776		914,497

Long-term debt			1,453,882		815,462
Operating lease liabilities			21,749		24,079
Other liabilities			55,915		40,457

Contingencies and commitments

Mezzanine equity:
Senior preferred units, net of issue discount and offering costs (700,000 units outstanding at January 31, 2026 and July 31, 2025)			651,349		651,349

Deficit:
Limited partner unitholders
Class A (4,857,605 Units outstanding at January 31, 2026 and July 31, 2025)			(1,288,325)		(1,332,704)
Class B (1,300,000 Units outstanding at January 31, 2026 and July 31, 2025)			383,012		383,012
General partner Unitholder (49,496 Units outstanding at January 31, 2026 and July 31, 2025)			(70,397)		(70,845)
Accumulated other comprehensive loss			(6,558)		(95)
Total Ferrellgas Partners, L.P. deficit			(982,268)		(1,020,632)
Noncontrolling interest			(8,094)		(8,496)
Total deficit			(990,362)		(1,029,128)
Total liabilities, mezzanine equity and deficit		$	1,543,309	$	1,416,716

Source: View Original Filing on SEC EDGAR

FAQ

How did Ferrellgas Partners (FGPR) perform in its Q2 fiscal 2026 results?

Ferrellgas reported higher profit in Q2 fiscal 2026. Net earnings attributable to the partnership rose to $102.2 million from $98.8 million, while Adjusted EBITDA increased to $166.1 million from $157.0 million, driven by lower product costs and reduced operating expenses.

What happened to Ferrellgas Partners’ revenue and margins in Q2 fiscal 2026?

Revenue declined but margins improved in Q2 fiscal 2026. Total revenues fell to $641.4 million from $669.8 million, yet gross profit inched up to $350.4 million, and margin per gallon rose about 6%, supporting roughly 13% growth in operating income per gallon.

What is Ferrellgas Partners doing with its Class B Units after Q2 fiscal 2026?

Ferrellgas plans a major Class B Unit conversion. After paying a cash distribution of $82.32 per Class B Unit (about $107.0 million total), it intends to convert all 1.3 million Class B Units into Class A Units on a 5-for-1 basis.

How much did Ferrellgas Partners’ Adjusted EBITDA increase in Q2 fiscal 2026?

Adjusted EBITDA rose by about 6% year over year. It reached $166.1 million for the quarter ended January 31, 2026, up from $157.0 million, helped by lower general and administrative expenses, reduced equipment lease costs, and a $3.0 million increase in gross profit.

How did propane prices affect Ferrellgas Partners’ Q2 fiscal 2026 results?

Lower propane prices supported margin expansion. Average propane prices based on Mont Belvieu declined 21.7% versus the prior-year quarter. Revenue decreased by $28.4 million, but cost of product fell by $31.3 million, lifting gross profit and contributing to higher net earnings.

What cash distribution did Ferrellgas declare on its Class B Units in March 2026?

The board declared a sizable Class B distribution. On March 4, 2026, it approved a cash distribution of $82.32 per Class B Unit, totaling approximately $107.0 million, payable around March 13, 2026, to Class B Unitholders of record as of March 6, 2026.

What were Ferrellgas Partners’ key volume and operational trends in Q2 fiscal 2026?

Ferrellgas saw mixed volume but better efficiency. Total propane gallons for the quarter were 263.954 million, down from 275.465 million, yet retail gross profit rose, margin per gallon improved about 6%, and operating income per gallon increased roughly 13% on better routing and cost control.

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Ferrellgas (OTC: FGPR) lifts Q2 profit and converts Class B units