Ferrellgas Partners L P
Ferrellgas Partners L.P. is a U.S. propane distribution partnership whose operating business sells propane, related equipment, and propane-related services through a national retail network. The partnership itself is a holding entity; substantially all operating activity is conducted through its operating partnership, including the Blue Rhino portable tank exchange business.
Fiscal year 2026 · change from previous year
Development 2021–2026
Business
Share of revenueDelivery and sale of propane to residential, commercial, industrial, agricultural, and wholesale customers.
Nationwide Blue Rhino exchange of prefilled propane cylinders through owned and partner retail locations.
Propane appliances, parts, fittings, and other propane-related consumer products sold at distribution sites.
Additional fuel sales and related energy products sold alongside propane operations.
Transportation and carrier services supporting propane delivery and distribution.
Products
Reported · share of revenue- Retail64.6 %
- Wholesale Sales to Resellers28.8 %
- Other5.8 %
- Other Gas Sales0.8 %
Source: 10-K FY2026, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
Ferrellgas sells to a broad mix of end users, including residential households, industrial and commercial accounts, agricultural customers, wholesale buyers, and portable tank exchange consumers. Residential and agricultural demand is concentrated in rural areas, while industrial/commercial and cylinder-exchange activity is more suburban and retail-oriented. Customer retention is supported by tank ownership or rental arrangements, safety requirements, and the convenience of Ferrellgas's delivery and exchange network.
Households buying propane for heating and home energy use, often with rented or owned tanks that encourage recurring deliveries.
Businesses buying bulk propane for operations where reliable delivery and service coverage matter.
Retail consumers and small businesses exchanging cylinders through Blue Rhino for grilling and portable use.
Farm customers buying propane for crop drying, heating, and other seasonal farm applications.
Larger buyers purchasing propane volumes for resale or distribution through other channels.
Strategy
Ferrellgas focuses on delivery efficiency, safety, and customer service to defend its propane customer base and support recurring demand. It also uses its national distributor network and technology-enabled support model to strengthen Blue Rhino and other retail propane channels. The business remains centered on cash generation from propane distribution and on maintaining customer stickiness through tank ownership, rental, and service infrastructure.
Delivery cost and service reliability are central to margins and customer retention in a route-based propane business.
Propane is a regulated, safety-sensitive product, so service quality and incident prevention are competitive differentiators.
Cylinder exchange broadens retail reach and provides a national consumer-facing brand with recurring demand.
Geography
Ferrellgas operates across all 50 U.S. states, the District of Columbia, and Puerto Rico, giving it a broad national footprint rather than a concentrated regional base. The business is exposed to local weather patterns, rural delivery density, and seasonal demand swings, which affect both propane volumes and cylinder exchange activity. The company does not disclose country-level revenue in the provided excerpts, so geography is best understood through its U.S.-centric operating network.
Risks
Ferrellgas is exposed to weather-driven demand swings, especially warm winters and poor grilling or harvest seasons that reduce propane consumption. As a holding partnership with limited direct assets, it also depends on distributions from the operating partnership to meet obligations and pay unitholders, while litigation, operating incidents, and commodity price volatility can affect results and liquidity. Because propane demand is seasonal and tied to local conditions, earnings and cash flow can vary materially from period to period.
- Weather-driven demand volatilityImpact: HighLikelihood: Medium
Propane consumption is highly seasonal and sensitive to winter temperatures and grilling/harvest weather.
Exposure - Commodity price volatilityImpact: HighLikelihood: Medium
Propane prices move with crude oil and natural gas markets, affecting customer demand and gross margin dynamics.
Exposure: Propane sales volumes and pricing
- Holding-company liquidity dependenceImpact: HighLikelihood: Low
Ferrellgas Partners has no material operations and relies on operating partnership distributions.
Exposure: Debt service and partner distributions
- Insurance and litigation exposureImpact: MediumLikelihood: High
Operating incidents or legal claims may create costs that exceed insurance coverage.
Exposure
Accounting
Judgemental itemsTank and equipment lives drive depreciation expense and can shift reported earnings if assumptions change.
Impact: Customer and bulk storage tanks are depreciated over estimated useful lives up to 30 years
Residual value assumptions reduce depreciable basis and affect long-term expense recognition.
Impact: Changes would alter depreciation expense prospectively
The company has one reporting unit and must test goodwill annually, creating impairment risk if fair value declines.
Impact: A write-down would reduce earnings and equity
Fair value estimates and claim reserves affect liabilities and can move with market and loss assumptions.
Impact: Impacts other noncurrent liabilities and earnings volatility
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Last updated: 24/09/2026