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

Exhibit 99.1

FERRELLGAS PARTNERS REPORTS FIRST-QUARTER RESULTS

OVERLAND PARK, KS., December 9, 2011- Ferrellgas Partners, L.P. (NYSE:FGP), one of the nation’s largest distributors of propane, today reported operating results for the fiscal first quarter ended October 31, 2011.

Propane sales for the quarter rose 17% to 196.3 million gallons despite temperatures during the period that were 17% warmer than normal and customer conservation resulting from wholesale propane costs that rose more than 33%. Revenues grew 35% to $538.4 million from $400.2 million, reflecting both the increased gallon sales and the sales price to consumers resulting from the higher wholesale cost of propane.

“Our first quarter is traditionally slow due to the seasonality of the retail propane business, and that was certainly the case again this year,” President and Chief Executive Officer Steve Wambold said. “We were extremely pleased, however by our growth efforts which lead the industry helping to offset the continued impact of customer conservation on sales volumes and lesser retail margins resulting from sharply higher propane costs.”

Gross profit was $128.7 million, down $2.1 million while operating expenses were $99.4 million, improving $0.06 per gallon delivered.  General and administrative expenses were reduced 10% to $9.4 million primarily reflecting prior year reductions in back office expenses.  Equipment lease expense was materially unchanged at $3.5 million.

“Our focus remains on gaining market share through organic sales and marketing, supplemented by strategic acquisitions in retail propane” said Wambold.  “In the quarter, these efforts along with a continued focus on driving operational efficiencies allowed us to better utilize our fixed overhead while positioning us well for the upcoming winter heating season.”  Wambold concluded by saying, “As our Blue Rhino operations move into their offseason, we have continued to see growth in propane tank exchange as over the last 12 months we have increased our nation-wide footprint by adding 1,400 retail locations, growing sales by more than 4%.”

Adjusted EBITDA and the seasonal Net Loss for the quarter were $16.4 million and $32.9 million, respectively compared to $21.9 million and $28.3 million, respectively in the prior year’s quarter.

-more-

The partnership recently announced the extension of its $400 million secured credit facility to September 2016, in addition to two acquisitions of retail propane operations with customers in California and Texas.

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, 2011, and other documents filed from time to time by these entities with the Securities and Exchange Commission.

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Contact:

Tom Colvin, Investor Relations, 913-661-1530

Scott Brockelmeyer, Media Relations, 913-661-1830

FERRELLGAS PARTNERS, L.P.  AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except unit data)

(unaudited)

	October 31, 2011			July 31, 2011
ASSETS
Current Assets:
Cash and cash equivalents	$	13,134		$	7,437
Accounts and notes receivable, net (including $139,451 and $112,509 of accounts receivable pledged as collateral at October 31, 2011 and July 31, 2011, respectively)	205,608			159,532
Inventories	184,530			136,139
Prepaid expenses and other current assets	30,488			23,885
Total Current Assets	433,760			326,993
Property, plant and equipment, net	642,711			642,205
Goodwill	248,944			248,944
Intangible assets, net	202,778			204,136
Other assets, net	40,043			38,308
Total Assets	$	1,568,236		$	1,460,586
LIABILITIES AND PARTNERS’ CAPITAL
Current Liabilities:
Accounts payable	$	115,408		$	67,541
Short-term borrowings	126,071			64,927
Collateralized note payable	81,000			61,000
Other current liabilities (a)	135,317			104,813
Total Current Liabilities	457,796			298,281
Long-term debt (a)	1,069,430			1,050,920
Other liabilities	23,255			23,068
Contingencies and commitments	—			—
Partners’ Capital:
Common unitholders (75,966,353 units outstanding at both October 31, 2011 and July 31, 2011)	74,739			139,614
General partner unitholder (767,337 units outstanding at both October 31, 2011 and July 31, 2011)	(59,315		)	(58,660		)
Accumulated other comprehensive income	273			4,633
Total Ferrellgas Partners, L.P. Partners’ Capital	15,697			85,587
Noncontrolling Interest	2,058			2,730
Total Partners’ Capital	17,755			88,317
Total Liabilities and Partners’ Capital	$	1,568,236		$	1,460,586

(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 AND TWELVE MONTHS ENDED OCTOBER 31, 2011 AND 2010

(in thousands, except per unit data)

(unaudited)

	Three months ended						Twelve months ended
	October 31						October 31
	2011			2010			2011			2010
Revenues:
Propane and other gas liquids sales	$	514,219		$	368,623		$	2,357,853		$	1,941,275
Other	24,207			31,569			203,596			205,907
Total revenues	538,426			400,192			2,561,449			2,147,182
Cost of product sold:
Propane and other gas liquids sales	403,122			256,486			1,755,980			1,313,100
Other	6,626			12,858			118,238			115,316
Gross profit	128,678			130,848			687,231			718,766
Operating expense	99,411			95,260			411,432			405,986
Depreciation and amortization expense	20,674			20,375			82,785			82,339
General and administrative expense	9,364			10,387			51,137			44,699
Equipment lease expense	3,529			3,649			14,315			13,316
Non-cash employee stock ownership plan compensation charge	2,579			2,444			10,292			9,764
Non-cash stock and unit-based compensation charge (b)	2,917			1,013			15,392			6,093
Loss (gain) on disposal of assets and other	309			(232		)	4,174			6,591
Operating income (loss)	(10,105		)	(2,048		)	97,704			149,978
Interest expense	(23,387		)	(26,877		)	(98,395		)	(105,466		)
Loss on extinguishment of debt	—			—			(46,962		)	(3,408		)
Other income (expense), net	(33		)	178			356			(1,237		)
Earnings (loss) before income taxes	(33,525		)	(28,747		)	(47,297		)	39,867
Income tax expense (benefit)	(630		)	(482		)	1,093			1,856
Net earnings (loss)	(32,895		)	(28,265		)	(48,390		)	38,011
Net earnings (loss) attributable to noncontrolling interest (a)	(291		)	(222		)	(181		)	680
Net earnings (loss) attributable to Ferrellgas Partners, L.P.	(32,604		)	(28,043		)	(48,209		)	37,331
Less: General partner’s interest in net earnings (loss)	(326		)	(280		)	(482		)	373
Common unitholders’ interest in net earnings (loss)	$	(32,278	)	$	(27,763	)	$	(47,727	)	$	36,958
Earnings (loss) Per Unit
Basic and diluted net earnings (loss) per common unitholders’ interest	$	(0.42	)	$	(0.40	)	$	(0.65	)	$	0.53
Weighted average common units outstanding	75,966.4			69,559.6			73,928.5			69,506.8

Supplemental Data and Reconciliation of Non-GAAP Items:

	Three months ended						Twelve months ended
	October 31						October 31
	2011			2010			2011			2010
Net earnings (loss) attributable to Ferrellgas Partners, L.P.	$	(32,604	)	$	(28,043	)	$	(48,209	)	$	37,331
Income tax expense (benefit)	(630		)	(482		)	1,093			1,856
Interest expense	23,387			26,877			98,395			105,466
Depreciation and amortization expense	20,674			20,375			82,785			82,339
EBITDA	10,827			18,727			134,064			226,992
Loss on extinguishment of debt	—			—			46,962			3,408
Non-cash employee stock ownership plan compensation charge	2,579			2,444			10,292			9,764
Non-cash stock and unit-based compensation charge (b)	2,917			1,013			15,392			6,093
Loss (gain) on disposal of assets and other	309			(232		)	4,174			6,591
Other income (expense), net	33			(178		)	(356		)	1,237
Litigation reserve and related legal fees	—			332			11,788			332
Net earnings (loss) attributable to noncontrolling interest	(291		)	(222		)	(181		)	680
Adjusted EBITDA (c)	16,374			21,884			222,135			255,097
Net cash interest expense (d)	(22,031		)	(23,722		)	(91,662		)	(97,312		)
Maintenance capital expenditures (e)	(5,327		)	(4,412		)	(16,352		)	(14,267		)
Cash paid for taxes	(3		)	(83		)	(511		)	(1,633		)
Proceeds from asset sales	1,363			2,078			5,279			9,365
Distributable cash flow to equity investors (f)	$	(9,624	)	$	(4,255	)	$	118,889		$	151,250
Propane gallons sales
Retail - Sales to End Users	132,848			120,561			667,695			669,050
Wholesale - Sales to Resellers	63,421			47,776			259,920			242,263
Total propane gallons sales	196,269			168,337			927,615			911,313

(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				Twelve months ended
	October 31				October 31
	2011		2010		2011		2010
Operating expense	$	1,167	$	136	$	4,788	$	1,533
General and administrative expense	1,750		877		10,604		4,560
Total	$	2,917	$	1,013	$	15,392	$	6,093

(c)Adjusted EBITDA is calculated as earnings (loss) before income tax expense (benefit), 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 (gain) on disposal of assets and other, other income (expense), net, a litigation reserve and related legal fees 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.