Ferrellgas Partners Reports 9% Revenue Increase to $560.8 Million for Quarter Ended April 30, 2025

Ferrellgas Partners, L.P. reported a total revenue of $560.8 million for the three months ended April 30, 2025, marking a 9% increase from $515.8 million in the same period last year. The increase was primarily driven by higher propane and other gas liquids sales, which rose to $533.5 million from $490.1 million. For the nine months ending April 30, 2025, total revenues reached $1.6 billion, up from $1.5 billion in the prior year. The company’s net earnings attributable to Ferrellgas Partners, L.P. also increased to $59.1 million for the quarter, compared to $52.8 million in the previous year, while net earnings for the nine-month period fell to $11.3 million from $131.0 million, largely due to a significant legal accrual.

The financial performance reflects a notable shift in operational costs, with total costs and expenses for the three months rising to $473.6 million from $439.0 million year-over-year. This included a $16.9 million increase in gross margin, which was partially offset by higher operating expenses, particularly in personnel and vehicle costs. The company reported an operating income of $87.3 million for the quarter, up from $76.7 million, despite a significant increase in interest expenses, which rose to $28.1 million from $24.7 million.

In terms of operational metrics, Ferrellgas reported a decrease in retail customer counts to 631,841 from 640,885, while tank exchange selling locations also fell to 66,782 from 68,536. Propane sales volumes increased by 6% year-over-year, with retail sales to end users rising to 171.1 million gallons, up from 162.3 million gallons. The company attributed the increase in sales volume to favorable weather conditions, although it noted that average temperatures were warmer than normal.

Strategically, Ferrellgas has been focusing on managing its capital structure amid ongoing challenges. The company has engaged external advisors to assist in restructuring its capital and refinancing its debt, particularly in light of recent downgrades in its credit ratings. As of April 30, 2025, Ferrellgas had total liquidity of $263.2 million, comprised of $109.3 million in cash and $153.9 million available under its credit facility. However, there remains substantial doubt about the company’s ability to continue as a going concern due to the timing of debt maturities and outstanding letters of credit.

Looking ahead, Ferrellgas anticipates that its operational performance will continue to be influenced by seasonal demand for propane, market conditions, and the effectiveness of its risk management strategies. The company is committed to enhancing its operational efficiencies and maintaining compliance with its debt covenants while navigating the complexities of the propane distribution market.