Ferrellgas Partners Finance 8K Ferrellgas Partners Reports Second-quarter Results | SEC 11 Mar 11

Exhibit 99.1

FERRELLGAS PARTNERS REPORTS SECOND-QUARTER RESULTS

OVERLAND PARK, KAN., March 11, 2011/PR Newswire-First Call — Ferrellgas Partners, L.P. (NYSE:FGP), one of the largest distributors of propane, today reported earnings for the fiscal second quarter ended January 31.

Revenues grew 8% in the quarter to $841.0 million from $777.9 million the year before on propane sales volumes that trailed prior year results by approximately 7%. Propane sales volumes for the quarter were 328.4 million gallons, impacted in part by an 8% increase in the wholesale cost of propane from a year-ago levels.

President and Chief Executive Officer Steve Wambold explained, “The rise in wholesale propane costs combined with a slow start to the winter heating season impacted sales in the quarter. Year to date nationwide temperatures were materially consistent with that of a year ago, but October’s exceptional warmth along with warmer than normal temperatures in November and early-December significantly delayed the start of the winter heating season. That delay could not be offset by the colder temperatures experienced in late-December and throughout January.”

Wambold further commented, “Weakness in our first quarter’s demand for agricultural sales continued this quarter resulting from this year’s abnormally dry harvest season in comparison to last year’s abnormally wet harvest season.”

Gross profit in the quarter was $243.1 million, a modest decline of 2%, while operating expense savings was offset by a non-recurring general liability settlement in the quarter. Net income totaled $22.4 million and excluding the $36.4 million loss on the extinguishment of debt, net earnings per unit were $0.82, compared to $1.10 the year before.

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In November, the partnership refinanced its $450 million, 6.75% debt due 2014 through the issuance of $500 million, 6.5% debt due 2021. Following this transaction, the partnership has no material debt maturities prior to November 2012 and no public debt maturities until 2017. Adjusted EBITDA for the quarter was $121.0 million compared to $130.1 million in the second quarter of last year.

Wambold pointed out “Not to be overlooked is the continued, strong performance of our Blue Rhino brand, which not only posted a 6% gain in transactions this quarter, but also positioned itself for significant growth in the next grilling season. Blue Rhino signed two major contracts, Walgreens and Safeway, which will increase locations by more than 2,800 locations nationwide.”

Wambold also cited the progress of the partnership’s acquisition program. “We continue to focus on accretive acquisitions to supplement our organic growth efforts,” he said. “During the second quarter we acquired Kings River Propane and Bennett Gas Company and earlier this week we announced the acquisition of Ram Propane in Dubois, WY.”

Ferrellgas Partners, L.P., through its operating partnership, Ferrellgas, L.P., serves approximately one million customers in all 50 states, the District of Columbia and Puerto Rico. Ferrellgas employees indirectly own more than 20 million common units of the partnership through an employee stock ownership plan. More information about the partnership can be found online at www.ferrellgas.com.

Statements in this release concerning expectations for the future are forward-looking statements. A variety of known and unknown risks, uncertainties and other factors could cause results, performance and expectations to differ materially from anticipated results, performance and expectations. These risks, uncertainties and other factors are discussed in the Form 10-K of Ferrellgas Partners, L.P., Ferrellgas Partners Finance Corp., Ferrellgas, L.P., and Ferrellgas Finance Corp. for the fiscal year ended July 31, 2010, and other documents filed from time to time by these entities with the Securities and Exchange Commission.

Contact:

Tom Colvin, Investor Relations, (913) 661-1530

Jim Saladin, Media Relations, (913) 661-1833

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FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except unit data)

(unaudited)

	January 31, 2011			July 31, 2010

ASSETS

Current Assets:
Cash and cash equivalents	$	25,489		$	11,401
Accounts and notes receivable, net (including $233,120 and $0 of accounts receivable pledged as collateral at January 31, 2011 and July 31, 2010, respectively)	326,432			89,234
Inventories	155,413			166,911
Prepaid expenses and other current assets	31,503			13,842
Total Current Assets	538,837			281,388

Property, plant and equipment, net	641,452			652,768
Goodwill	248,939			248,939
Intangible assets, net	213,792			221,057
Other assets, net	41,431			38,199
Total Assets	$	1,684,451		$	1,442,351

LIABILITIES AND PARTNERS’ CAPITAL

Current Liabilities:
Accounts payable	$	142,612		$	48,658
Short term borrowings	54,482			67,203
Collateralized note payable	145,000			—
Other current liabilities (a)	112,454			108,054
Total Current Liabilities	454,548			223,915

Long-term debt (a)	1,140,026			1,111,088
Other liabilities	21,770			21,446
Contingencies and commitments	—			—

Partners’ Capital:
Common unitholders (70,827,760 and 69,521,818 units outstanding at January 31, 2011 and July 31, 2010, respectively)	115,469			141,281
General partner unitholder (715,432 and 702,241 units outstanding at January 31, 2011 and July 31, 2010, respectively)	(58,905		)	(58,644		)
Accumulated other comprehensive income (loss)	8,040			(415		)
Total Ferrellgas Partners, L.P. Partners’ Capital	64,604			82,222
Noncontrolling Interest	3,503			3,680
Total Partners’ Capital	68,107			85,902
Total Liabilities and Partners’ Capital	$	1,684,451		$	1,442,351

(a) The principal difference between the Ferrellgas Partners, L.P. balance sheet and that of Ferrellgas, L.P., is $280 million of 8.625% notes which are liabilities of Ferrellgas Partners, L.P. and not of Ferrellgas, L.P.

FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE THREE, SIX AND TWELVE MONTHS ENDED JANUARY 31, 2011 AND 2010

(in thousands, except per unit data)

(unaudited)

	Three months ended						Six months ended						Twelve months ended
	January 31						January 31						January 31
	2011			2010			2011			2010			2011			2010
Revenues:
Propane and other gas liquids sales	$	774,179		$	724,348		$	1,142,802		$	1,052,014		$	1,991,106		$	1,797,243
Other	66,813			53,504			98,382			77,908			219,216			206,502
Total revenues	840,992			777,852			1,241,184			1,129,922			2,210,322			2,003,745

Cost of product sold:
Propane and other gas liquids sales	559,416			503,980			815,902			704,900			1,368,536			1,165,996
Other	38,500			25,208			51,358			31,388			128,608			123,802

Gross profit	243,076			248,664			373,924			393,634			713,178			713,947

Operating expense	107,562			104,436			202,822			200,570			409,112			398,741
Depreciation and amortization expense	19,990			20,647			40,365			41,174			81,682			82,133
General and administrative expense	11,005			11,047			21,392			22,830			44,657			42,347
Equipment lease expense	3,543			3,127			7,192			6,901			13,732			15,171
Non-cash employee stock ownership plan compensation charge	2,932			2,261			5,376			4,263			10,435			7,613
Non-cash stock and unit-based compensation charge (c)	11,068			413			12,081			3,164			16,748			4,819
Loss on disposal of assets and other	603			1,122			371			2,784			6,072			9,225

Operating income	86,373			105,611			84,325			111,948			130,740			153,898

Interest expense	(26,395		)	(26,216		)	(53,272		)	(48,911		)	(105,645		)	(91,367		)
Loss on extinguishment of debt	(36,449		)	0			(36,449		)	(17,308		)	(39,857		)	(17,308		)
Other income (expense), net	88			(863		)	266			(556		)	(286		)	(716		)

Earnings (loss) before income taxes	23,617			78,532			(5,130		)	45,173			(15,048		)	44,507

Income tax expense	1,198			674			716			252			2,380			1,678

Net earnings (loss)	22,419			77,858			(5,846		)	44,921			(17,428		)	42,829

Net earnings attributable to noncontrolling interest (a)	290			847			68			575			123			676

Net earnings (loss) attributable to Ferrellgas Partners, L.P.	22,129			77,011			(5,914		)	44,346			(17,551		)	42,153

Less: General partner’s interest in net earnings (loss)	221			12,614			(59		)	443			(176		)	421

Common unitholders’ interest in net earnings (loss)	$	21,908		$	64,397		$	(5,855	)	$	43,903		$	(17,375	)	$	41,732

Earnings (loss) Per Unit
Basic and diluted net earnings (loss) per common unitholders’ interest	$	0.31		$	0.93		$	(0.08	)	$	0.64		$	(0.25	)	$	0.61
Dilutive effect of two-class method (b)	—			0.17			—			—			—			—
Adjusted net earnings (loss) per unit available to common unitholders	$	0.31		$	1.10		$	(0.08	)	$	0.64		$	(0.25	)	$	0.61

Weighted average common units outstanding	70,668.8			69,450.3			70,114.2			68,979.1			69,813.9			68,493.2

Supplemental Data and Reconciliation of Non-GAAP Items:

	Three months ended						Six months ended						Twelve months ended
	January 31						January 31						January 31
	2011			2010			2011			2010			2011			2010

Net earnings (loss) attributable to Ferrellgas Partners, L.P.	$	22,129		$	77,011		$	(5,914	)	$	44,346		$	(17,551	)	$	42,153
Income tax expense	1,198			674			716			252			2,380			1,678
Interest expense	26,395			26,216			53,272			48,911			105,645			91,367
Depreciation and amortization expense	19,990			20,647			40,365			41,174			81,682			82,133
EBITDA	69,712			124,548			88,439			134,683			172,156			217,331
Loss on extinguishment of debt	36,449			0			36,449			17,308			39,857			17,308
Non-cash employee stock ownership plan compensation charge	2,932			2,261			5,376			4,263			10,435			7,613
Non-cash stock and unit-based compensation charge (c)	11,068			413			12,081			3,164			16,748			4,819
Loss on disposal of assets and other	603			1,122			371			2,784			6,072			9,225
Other income (expense), net	(88		)	863			(266		)	556			286			716
Net earnings attributable to noncontrolling interest	290			847			68			575			123			676
Adjusted EBITDA (d)	120,966			130,054			142,518			163,333			245,677			257,688
Net cash interest expense (e)	(24,660		)	(25,355		)	(48,382		)	(46,679		)	(96,617		)	(88,665		)
Maintenance capital expenditures (f)	(3,436		)	(1,296		)	(7,848		)	(11,409		)	(16,407		)	(20,633		)
Cash refund (paid) for taxes	168			(332		)	85			(332		)	(1,133		)	(1,512		)
Proceeds from asset sales	1,122			1,228			3,200			3,161			9,259			6,455
Distributable cash flow to equity investors (g)	$	94,160		$	104,299		$	89,573		$	108,074		$	140,779		$	153,333

Propane gallons sales
Retail - Sales to End Users	249,227			269,801			369,788			402,275			648,476			682,668
Wholesale - Sales to Resellers	79,156			83,882			126,932			130,956			237,537			239,224
Total propane gallons sales	328,383			353,683			496,720			533,231			886,013			921,892

(a) Amounts allocated to the general partner for its 1.0101% interest in the operating partnership, Ferrellgas, L.P.

(b) FASB guidance regarding participating securities and the two-class method requires the calculation of net earnings (loss) per common unitholders’ interest for each period presented according to distributions declared and participation rights in undistributed earnings, as if all of the earnings or loss for the period had been distributed. In periods with undistributed earnings above certain levels, the calculation according to the two-class method results in an increased allocation of undistributed earnings to the general partner and a dilution of the earnings to the limited partners. Due to the seasonality of the propane business, the dilution effect of the guidance on the two-class method typically impacts only the three months ending January 31. This guidance did not result in a dilutive effect for the three months ended January 31, 2011 or for the six and twelve months ended January 31, 2011 and 2010.

	Three months ended				Six months ended				Twelve months ended
	January 31				January 31				January 31
	2011		2010		2011		2010		2011		2010
Operating expense	$	3,126	$	114	$	3,262	$	870	$	4,546	$	1,507
General and administrative expense	7,942		299		8,819		2,294		12,202		3,312
Total	$	11,068	$	413	$	12,081	$	3,164	$	16,748	$	4,819

(d) Adjusted EBITDA is calculated as earnings (loss) before income tax expense, interest expense, depreciation and amortization expense, loss on extinguishment of debt, employee stock ownership plan compensation charge, stock and unit-based compensation charge, loss on disposal of assets and other, other income (expense), net and net earnings attributable to noncontrolling interest. Management believes the presentation of this measure is relevant and useful because it allows investors to view the partnership’s performance in a manner similar to the method management uses, adjusted for items management believes makes it easier to compare its results with other companies that have different financing and capital structures. This method of calculating Adjusted EBITDA may not be consistent with that of other companies and should be viewed in conjunction with measurements that are computed in accordance with GAAP.

(e) Net cash interest expense is the sum of interest expense less non-cash interest expense and other income (expense), net. This amount includes interest expense related to the accounts receivable securitization facility.

(f) Maintenance capital expenditures include capitalized expenditures for betterment and replacement of property, plant and equipment.

(g) Management considers Distributable cash flow to equity investors a meaningful non-GAAP measure of the partnership’s ability to declare and pay quarterly distributions to common unitholders. Distributable cash flow to equity investors, as management defines it, may not be comparable to distributable cash flow or similarly titled measures used by other corporations and partnerships.

Ferrellgas Partners Finance 8-KFerrellgas Partners Reports Second-quarter Results