Ferrellgas Partners Reports $669.8M Revenue, $47.8M Net Loss for Six Months Ended January 31, 2025

Ferrellgas Partners, L.P. reported a total revenue of $669.8 million for the three months ended January 31, 2025, marking an increase of 9.8% from $609.9 million in the same period last year. For the six months ended January 31, 2025, total revenues reached $1.03 billion, up from $980.9 million in the prior year. The company attributed this growth primarily to increased sales in propane and other gas liquids, which rose to $637.0 million from $584.2 million year-over-year. However, the company experienced a net loss of $47.8 million for the six months, a significant decline from net earnings of $78.2 million in the previous year, largely due to a $125 million legal accrual related to a settlement agreement.

In terms of operational metrics, Ferrellgas reported a decrease in retail customers to 639,058 from 652,906, while tank exchange selling locations slightly declined to 67,274 from 67,709. Propane sales volumes increased by 10.2 million gallons, or 2%, compared to the prior year, with retail sales to end users contributing $678.4 million, a 2% increase from the previous year. The wholesale segment also saw a notable increase, with sales to resellers rising by 13% to $279.7 million. The company’s gross margin for propane and other gas liquids sales increased by $19.1 million, despite a decrease in retail gross margin.

Ferrellgas has made strategic moves, including a settlement agreement related to a lawsuit that resulted in a $125 million payment, which is to be made in three installments. The first payment of $50 million was completed on January 15, 2025, with two additional payments of $37.5 million due by June 16, 2025, and January 15, 2026. This settlement has led to an increase in general and administrative expenses, impacting the company's profitability for the period.

The company’s liquidity position remains stable, with total liquidity of $237.3 million as of January 31, 2025, consisting of $39.4 million in cash and $197.9 million available under its credit facility. However, Ferrellgas Partners is currently unable to make distributions to its Class A and Class B unitholders due to restrictions in its credit agreement. The company did not declare or pay any distributions during the six months ended January 31, 2025, or the same period in 2024.

Looking ahead, Ferrellgas anticipates that its performance will be influenced by seasonal weather conditions, which significantly affect propane demand. The company is focused on managing its operational costs and improving efficiencies, particularly in its delivery systems. Despite the challenges posed by the legal settlement and market conditions, Ferrellgas remains committed to enhancing its operational performance and maintaining liquidity to support future growth initiatives.