Ferrellgas Partners (FGPR) 8-K Ferrellgas Partners Reports Third-quarter Results

Exhibit 99.1

FERRELLGAS PARTNERS REPORTS THIRD-QUARTER RESULTS

OVERLAND PARK, KAN., June 7, 2011/PR Newswire-First Call — Ferrellgas Partners, L.P. (NYSE:FGP), one of the largest distributors of propane, today reported operating results for the fiscal third quarter ended April 30.

Revenues rose 19% to $732.4 million while gross profit declined to $189.2 million reflecting the impact of sharply higher commodity prices resulting in lower margins and customer demand.  Despite a 21% increase in the wholesale cost of propane, third-quarter propane sales volumes still grew 2%.

Operating expense declined more than 2% to $103.8 million and general and administrative expense declined by nearly 30%, excluding a $10.0 million litigation reserve recorded during the quarter.  Equipment lease expense, as expected, increased slightly to $3.7 million.

Common unitholder’s interest in net earnings, after absorbing a $10.5 million loss on extinguishment of debt and the $10.0 million litigation reserve, was $3.1 million or $0.04 per unit.  Excluding the non-recurring charge for the extinguishment of debt and the litigation reserve, earnings per unit would have been $0.32 in this fiscal year’s third quarter.  Adjusted EBITDA was $73.9 million compared with $88.2 million achieved the year before.

President and Chief Executive Officer Steve Wambold commented, “Third-quarter results reflected similar dynamics from the first half of the fiscal year, notably sharply higher wholesale propane prices that drove customer conservation.”

Wambold pointed out, “On a positive note, we were successful in flexing our operating expenses, further evidencing management’s focus on driving shareholder value.  In addition, our Blue Rhino brand turned in a solid quarter, even though inclement weather adversely affected early-season tank exchange sales volumes.  More important, Blue Rhino is very well positioned

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for the all-important grilling season, strengthened by the addition of more than 2,800 Walgreens and Safeway locations this year.  As the industry leader, Blue Rhino is fast approaching 50,000 sales locations.”

Wambold concluded, “During the third quarter, our financial team continued to strengthen our balance sheet through the issuance of more than 5 million common units, which the partnership used to reduce long-term borrowings of more than $116.0 million.”

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)

	April 30, 2011			July 31, 2010
ASSETS
Current Assets:
Cash and cash equivalents	$	13,351		$	11,401
Accounts and notes receivable, net (including $163,897 and $0 of accounts receivable pledged as collateral at April 30, 2011 and July 31, 2010, respectively)	235,692			89,234
Inventories	119,724			166,911
Prepaid expenses and other current assets	33,821			13,842
Total Current Assets	402,588			281,388
Property, plant and equipment, net	645,278			652,768
Goodwill	248,944			248,939
Intangible assets, net	208,425			221,057
Other assets, net	38,372			38,199
Total Assets	$	1,543,607		$	1,442,351
LIABILITIES AND PARTNERS’ CAPITAL
Current Liabilities:
Accounts payable	$	81,517		$	48,658
Short term borrowings	40,464			67,203
Collateralized note payable	84,000			—
Other current liabilities (a)	101,254			108,054
Total Current Liabilities	307,235			223,915
Long-term debt (a)	1,037,913			1,111,088
Other liabilities	22,117			21,446
Contingencies and commitments	—			—
Partners’ Capital:
Common unitholders (75,900,760 and 69,521,818 units outstanding at April 30, 2011 and July 31, 2010, respectively)	214,744			141,281
General partner unitholder (766,674 and 702,241 units outstanding at April 30, 2011 and July 31, 2010, respectively)	(57,902		)	(58,644		)
Accumulated other comprehensive income (loss)	15,843			(415		)
Total Ferrellgas Partners, L.P. Partners’ Capital	172,685			82,222
Noncontrolling Interest	3,657			3,680
Total Partners’ Capital	176,342			85,902
Total Liabilities and Partners’ Capital	$	1,543,607		$	1,442,351

(a) The principal difference between the Ferrellgas Partners, L.P. balance sheet and that of Ferrellgas, L.P., is $182 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, NINE AND TWELVE MONTHS ENDED APRIL 30, 2011 AND 2010

(in thousands, except per unit data)

(unaudited)

	Three months ended						Nine months ended						Twelve months ended
	April 30						April 30						April 30
	2011			2010			2011			2010			2011			2010
Revenues:
Propane and other gas liquids sales	$	647,709		$	536,024		$	1,790,511		$	1,588,038		$	2,102,791		$	1,871,417
Other	84,664			79,266			183,046			157,174			224,614			186,485
Total revenues	732,373			615,290			1,973,557			1,745,212			2,327,405			2,057,902
Cost of product sold:
Propane and other gas liquids sales	483,101			355,316			1,299,003			1,060,216			1,496,321			1,225,431
Other	60,074			51,132			111,432			82,520			137,550			99,220
Gross profit	189,198			208,842			563,122			602,476			693,534			733,251
Operating expense	103,813			106,278			306,635			306,848			406,647			410,201
Depreciation and amortization expense	20,030			20,848			60,395			62,022			80,864			82,346
General and administrative expense	17,879			11,151			39,271			33,981			51,385			45,255
Equipment lease expense	3,650			3,259			10,842			10,160			14,123			14,148
Non-cash employee stock ownership plan compensation charge	2,591			2,698			7,967			6,961			10,328			8,851
Non-cash stock and unit-based compensation charge (b)	1,628			1,024			13,709			4,188			17,352			5,391
Loss on disposal of assets and other	463			2,696			834			5,480			3,839			9,598
Operating income	39,144			60,888			123,469			172,836			108,996			157,461
Interest expense	(24,933		)	(25,933		)	(78,205		)	(74,844		)	(104,645		)	(95,273		)
Loss on extinguishment of debt	(10,513		)	(3,408		)	(46,962		)	(20,716		)	(46,962		)	(20,716		)
Other income (expense), net	243			(529		)	509			(1,085		)	486			(1,055		)
Earnings (loss) before income taxes	3,941			31,018			(1,189		)	76,191			(42,125		)	40,417
Income tax expense	572			1,754			1,288			2,006			1,198			1,585
Net earnings (loss)	3,369			29,264			(2,477		)	74,185			(43,323		)	38,832
Net earnings (loss) attributable to noncontrolling interest (a)	196			401			264			976			(82		)	680
Net earnings (loss) attributable to Ferrellgas Partners, L.P.	3,173			28,863			(2,741		)	73,209			(43,241		)	38,152
Less: General partner’s interest in net earnings (loss)	32			289			(27		)	732			(432		)	382
Common unitholders’ interest in net earnings (loss)	$	3,141		$	28,574		$	(2,714	)	$	72,477		$	(42,809	)	$	37,770
Earnings (loss) Per Unit
Basic and diluted net earnings (loss) per common unitholders’ interest	$	0.04		$	0.41		$	(0.04	)	$	1.05		$	(0.61	)	$	0.55
Weighted average common units outstanding	73,145.6			69,495.2			71,102.5			69,147.4			70,704.0			68,904.3

Supplemental Data and Reconciliation of Non-GAAP Items:

	Three months ended						Nine months ended						Twelve months ended
	April 30						April 30						April 30
	2011			2010			2011			2010			2011			2010
Net earnings (loss) attributable to Ferrellgas Partners, L.P.	$	3,173		$	28,863		$	(2,741	)	$	73,209		$	(43,241	)	$	38,152
Income tax expense	572			1,754			1,288			2,006			1,198			1,585
Interest expense	24,933			25,933			78,205			74,844			104,645			95,273
Depreciation and amortization expense	20,030			20,848			60,395			62,022			80,864			82,346
EBITDA	48,708			77,398			137,147			212,081			143,466			217,356
Loss on extinguishment of debt	10,513			3,408			46,962			20,716			46,962			20,716
Non-cash employee stock ownership plan compensation charge	2,591			2,698			7,967			6,961			10,328			8,851
Non-cash stock and unit-based compensation charge (b)	1,628			1,024			13,709			4,188			17,352			5,391
Loss on disposal of assets and other	463			2,696			834			5,480			3,839			9,598
Other income (expense), net	(243		)	529			(509		)	1,085			(486		)	1,055
Litigation reserve	10,000			0			10,000			0			10,000			0
Net earnings (loss) attributable to noncontrolling interest	196			401			264			976			(82		)	680
Adjusted EBITDA (c)	73,856			88,154			216,374			251,487			231,379			263,647
Net cash interest expense (d)	(23,011		)	(26,422		)	(71,393		)	(73,101		)	(93,206		)	(93,540		)
Maintenance capital expenditures (e)	(4,073		)	(4,174		)	(11,921		)	(15,583		)	(16,306		)	(20,022		)
Cash paid for taxes	(119		)	(610		)	(34		)	(942		)	(642		)	(1,585		)
Proceeds from asset sales	1,073			1,436			4,273			4,597			8,896			5,918
Distributable cash flow to equity investors (f)	$	47,726		$	58,384		$	137,299		$	166,458		$	130,121		$	154,418
Propane gallons sales
Retail - Sales to End Users	190,009			188,630			559,797			590,905			649,855			687,615
Wholesale - Sales to Resellers	62,441			58,916			189,373			189,872			241,062			242,617
Total propane gallons sales	252,450			247,546			749,170			780,777			890,917			930,232

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

(b)  Non-cash stock and unit-based compensation charges consist of the following:

	Three months ended				Nine months ended				Twelve months ended
	April 30				April 30				April 30
	2011		2010		2011		2010		2011		2010
Operating expense	$	570	$	282	$	3,832	$	1,152	$	4,834	$	1,614
General and administrative expense	1,058		742		9,877		3,036		12,518		3,777
Total	$	1,628	$	1,024	$	13,709	$	4,188	$	17,352	$	5,391

(c)Adjusted EBITDA is calculated as earnings (loss) before income tax expense, interest expense, depreciation and amortization expense, loss on extinguishment of debt, non-cash employee stock ownership plan compensation charge, non-cash stock and unit-based compensation charge, loss on disposal of assets and other, other income (expense), net, a litigation reserve of $10.0 million and net earnings (loss) 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.

(d)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.

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

(f)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.