Weather-driven demand volatility
Propane consumption is highly seasonal and sensitive to winter temperatures and grilling/harvest weather.
- Scope
- Residential heating, agricultural, and portable tank exchange demand
- Materiality
- high
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.
9,7 %
−0,8 %
+5,5 %
0.37
0.28
| % | |
|---|---|
| Retail propane distribution | 70% Delivery and sale of propane to residential, commercial, industrial, agricultural, and wholesale customers. |
| Portable tank exchange | 15% Nationwide Blue Rhino exchange of prefilled propane cylinders through owned and partner retail locations. |
| Equipment and related retail sales | 8% Propane appliances, parts, fittings, and other propane-related consumer products sold at distribution sites. |
| Refined fuels and other gas liquids | 4% Additional fuel sales and related energy products sold alongside propane operations. |
| Logistics and common carrier services | 3% Transportation and carrier services supporting propane delivery and distribution. |
Ferrellgas sells to a broad mix of end users, including residential households, industrial and commercial accounts,...
- Residential customersprimary
Households buying propane for heating and home energy use, often with rented or owned tanks that encourage recurring deliveries.
- Industrial and commercial customersprimary
Businesses buying bulk propane for operations where reliable delivery and service coverage matter.
- Portable tank exchange customersprimary
Retail consumers and small businesses exchanging cylinders through Blue Rhino for grilling and portable use.
- Agricultural customerssecondary
Farm customers buying propane for crop drying, heating, and other seasonal farm applications.
- Wholesale customerssecondary
Larger buyers purchasing propane volumes for resale or distribution through other channels.
Ferrellgas operates across all 50 U.S. states, the District of Columbia, and Puerto Rico, giving it a broad national...
- •Operations span all 50 states, the District of Columbia, and Puerto Rico
- •Blue Rhino uses a national retail distribution network
- •Residential and agricultural demand is concentrated in rural areas
- •Industrial/commercial and exchange demand is more suburban
- •Weather and seasonality vary by region and affect propane volumes
Ferrellgas focuses on delivery efficiency, safety, and customer service to defend its propane customer base and support...
01
Operational efficiency in propane deliveryshort-term
Delivery cost and service reliability are central to margins and customer retention in a route-based propane business.
02
Customer service and safety executionshort-term
Propane is a regulated, safety-sensitive product, so service quality and incident prevention are competitive differentiators.
03
Strengthen Blue Rhino portable tank exchangemedium-term
Cylinder exchange broadens retail reach and provides a national consumer-facing brand with recurring demand.
Ferrellgas is exposed to weather-driven demand swings, especially warm winters and poor grilling or harvest seasons...
Commodity price volatility
Propane prices move with crude oil and natural gas markets, affecting customer demand and gross margin dynamics.
- Scope
- Propane sales volumes and pricing
- Materiality
- high
Holding-company liquidity dependence
Ferrellgas Partners has no material operations and relies on operating partnership distributions.
- Scope
- Debt service and partner distributions
- Materiality
- high
Insurance and litigation exposure
Operating incidents or legal claims may create costs that exceed insurance coverage.
- Scope
- Field operations, delivery, and customer service activities
- Materiality
- medium
Depreciation of property, plant and equipment
Customer and bulk storage tanks are depreciated over estimated useful lives up to 30 years
Residual value of customer and storage tanks
Changes would alter depreciation expense prospectively
Goodwill impairment
A write-down would reduce earnings and equity
Derivative valuation and property/casualty liabilities
Impacts other noncurrent liabilities and earnings volatility
: 28.4.2026