OTC:FGPR
FERRELLGAS PARTNERS L P
A major US-based propane retailer and distributor facing significant financial headwinds despite a massive $1.94B annual revenue base.
Key Metrics
Investment Thesis
Bull Case
The company maintains strong operational cash generation of $136.3M which could support debt reduction if non-operating losses are resolved; Its extensive retail footprint provides essential infrastructure that competitors cannot easily replicate; Potential for margin expansion exists if the current revenue decline is temporary and market conditions improve.
Bear Case
The transition from profitability to a $16.4M loss represents a fundamental deterioration in financial health that contradicts its massive revenue scale; Substantial non-operating losses of over $100M and high debt levels create significant downside risk for shareholders; The declining revenue trend suggests the business model may be facing long-term structural challenges rather than cyclical downturns.
About FERRELLGAS PARTNERS L P
Ferrellgas Partners LP is a leading retail propane marketer serving residential, commercial, and industrial customers across North America. The company operates through its extensive network of Ferrellgas retail locations and wholesale distribution infrastructure, providing heating fuel and energy solutions to millions of homes and businesses. Key revenue streams include retail sales, wholesale supply agreements, and specialized products like natural gas liquids.
Analysis
Management Discussion
Despite generating a robust $136.3M cash flow from operations, Ferrellgas Partners recorded a significant net loss of $16.4M in 2025, marking a sharp reversal from previous profitable years of $137.6M and $110.7M. The company's operating profit of $90.1M masks substantial non-operating losses of $105.1M, while heavy capital expenditures of $80.0M and debt repayments of $2.5M strained liquidity, resulting in a net cash decrease of $27.3M year-over-year.
Industry Overview
The propane industry serves as a critical heating fuel source for North America, particularly in regions without access to natural gas pipelines. Market dynamics are influenced by crude oil prices, winter weather patterns, and regulatory changes affecting renewable energy adoption, creating a volatile but essential utility-like sector.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $2.03B | $1.84B | $1.94B |
| Cost of Revenue | $0 | $0 | $0 |
| Gross Profit | $2.03B | $1.84B | $1.94B |
| Operating Expenses | $1.79B | $1.63B | $1.85B |
| Operating Income | $233.7M | $205.1M | $90.1M |
| G&A | $70.7M | $50.3M | $178.6M |
| D&A | $93.4M | $98.5M | $98.4M |
| Depreciation | $72.0M | $76.7M | $74.5M |
| Amortization | $8.6M | $9.3M | $7.9M |
| Other OpEx | $1.72B | $1.58B | $1.67B |
| Non-Operating Income | $-95.1M | $-93.7M | $-105.1M |
| Pre-Tax Income | $138.6M | $111.4M | $-15.0M |
| Income Tax | $981.0K | $686.0K | $1.4M |
| Continuing Ops | $137.6M | $110.7M | $-16.4M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $137.6M | $110.7M | $-16.4M |
| Minority Interest | $740.0K | $461.0K | $-807.0K |
| Net to Common | $136.9M | $110.2M | $-15.6M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $435.9M | $375.2M | $342.7M |
| Cash & Equivalents | $126.2M | $113.5M | $96.9M |
| Inventory | $98.1M | $96.0M | $87.8M |
| Prepaid Expenses | $29.1M | $28.5M | $30.5M |
| Other Current Assets | $182.5M | $137.2M | $127.5M |
| Long-Term Assets | $1.10B | $1.08B | $1.07B |
| PP&E (Net) | $615.2M | $605.0M | $602.7M |
| Intangibles | $106.6M | $112.2M | $106.5M |
| Goodwill | $257.0M | $257.0M | $257.2M |
| Operating Leases | $57.8M | $47.6M | $39.0M |
| Other LT Assets | $58.8M | $61.8M | $68.7M |
| Total Assets | $1.53B | $1.46B | $1.42B |
| Current Liabilities | $259.3M | $242.8M | $914.5M |
| Accounts Payable | $35.1M | $33.8M | $31.1M |
| Current Debt | $2.6M | $2.5M | $652.2M |
| Current Leases | $24.6M | $22.4M | $16.1M |
| Other Current Liab | $179.6M | $166.5M | $197.9M |
| Long-Term Debt | $1.46B | $1.46B | $815.5M |
| LT Operating Leases | $34.2M | $26.0M | $24.1M |
| AOCI | $1.1M | $2.0M | $-95.0K |
| Total L&E | $1.53B | $1.46B | $1.42B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $137.6M | $110.7M | $-16.4M |
| Non-Cash Adjustments | $127.7M | $187.9M | $148.9M |
| Working Capital Changes | $-53.0M | $-53.0M | $3.8M |
| Cash from Operations | $212.3M | $245.6M | $136.3M |
| Capital Expenditures | $88.9M | $70.9M | $80.0M |
| Cash from Investing | $-110.8M | $-85.0M | $-80.8M |
| Debt Issuances | $0 | — | — |
| Debt Repayments | $1.8M | $2.6M | $2.5M |
| Cash from Financing | $-122.9M | $-173.7M | $-82.8M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $-21.4M | $-13.2M | $-27.3M |
| Beginning Cash | $158.7M | $137.3M | $124.2M |
| Ending Cash | $137.3M | $124.2M | $96.9M |
Frequently Asked Questions
How does FERRELLGAS PARTNERS L P make money?
Retail Propane Sales to residential and commercial customers via an extensive store network; Wholesale Distribution supplying other retailers, cooperatives, and industrial users; Specialty Products including natural gas liquids (NGLs) and alternative energy solutions for specific market segments.
What are the main risks for FGPR?
Severe profitability erosion indicated by a $16.4M net loss despite record revenue, raising concerns about margin compression or accounting adjustments; High leverage with $815.5M in long-term debt creating significant interest payment burdens and refinancing risks; Declining revenue trend from $2.03B to $1.84B over the last two years suggesting structural demand issues or competitive pricing pressure.
What is FGPR's competitive advantage?
Extensive physical distribution network with over 1,000 retail locations providing high barriers to entry; Deep customer relationships in the heating fuel sector ensuring stable cash flows; Vertical integration allowing better control over supply chain margins during volatile commodity cycles.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.