Ferrellgas Partners (FGPR) 8-K Expects Improved Fourth-quarter Results

EXHIBIT 99.1

FERRELLGAS PARTNERS REPORTS SOLID THIRD-QUARTER EARNINGS;

EXPECTS IMPROVED FOURTH-QUARTER RESULTS

OVERLAND PARK, KS, June 8, 2012- Ferrellgas Partners, L.P. (NYSE:FGP), one of the nation’s largest distributors of propane, today reported operating results for its fiscal third quarter ended April 30, 2012.

Propane sales for the quarter outperformed operating conditions declining 11% to 226 million gallons despite temperatures that were 23% warmer than in the prior year’s quarter.  Revenues and gross profit directionally followed sales volumes declining to $629.6 million and $179.0 million, respectively while gross profit margins in the quarter improved nearly 6% to $0.79 per gallon sold reflecting lower wholesale prices.

Operating expense improved to $95.8 million, compared to $103.8 million in the prior year’s quarter on lesser sales volumes and management’s focus on long-term cost reductions.  General and administrative expense improved to $9.0 million, contrasted with $17.9 million the year prior (which included $10.5 million in litigation reserves and related legal fees, partially offset by incentive accrual reversals).  Excluding these prior year adjustments, G&A expense declined approximately $1 million this quarter primarily reflecting management’s ongoing cost-reduction efforts. Equipment leasing expense of $3.8 million was materially in line with prior year levels while prior year financings reduced interest expense in the quarter by nearly $1.5 million to $23.5 million.

For the quarter, net earnings improved to $21.1 million, or $0.26 per unit, compared with $3.4 million, or $0.04 per unit, which included a loss on extinguishment of debt of $10.5 million, or $0.14 per unit.  And while Adjusted EBITDA declined modestly to $70.8 million from $74.3 million in the prior year quarter, distributable cash flow was practically unchanged at $48.0 million.

“While the past winter proved to be most challenging for the propane industry with temperatures the second warmest in recorded history, several encouraging signs appeared in the third quarter,” commented President and Chief Executive Officer Steve Wambold.  “Positive momentum is carrying over into the fourth quarter and we expect to report improved operating results in the quarters to follow.”

Wambold explained, “Although the warm temperatures adversely affected retail propane sales, they did spark an early start to the grilling season. Our Blue Rhino tank exchange posted strong same-store sales gains with large retailers and across all trades.”

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Also contributing to the optimistic outlook are the continued progress of the company’s cost-reduction program and the recent decline in wholesale propane costs. “We are increasingly confident that we will reach, if not exceed, our goal of more than $20 million in annualized cost savings by the end of fiscal 2013,” Wambold pointed out. “And, propane costs are currently 53% below year-ago levels.”

Year-to-date, revenues were practically unchanged at $2 billion. Total propane gallon sales declined 3% to 727 million despite temperatures that were 18% warmer than in the prior year. Gross profit was $511.9 million, compared with $563.1 million. Operating expense decreased to $299.0 million from $306.6 million, general and administrative expense totaled $28.7 million compared with $39.3 million. Equipment lease expense was unchanged at $10.8 million. Interest expense of $70.9 million was $7.3 million less than a year ago. Net earnings were $25.0 million, or $0.32 per unit, contrasted with a net loss of $2.5 million, or $0.04 per unit during the prior year period.  Adjusted EBITDA was $175.0 million and $217.5 million for the fiscal 2012 and 2011 nine-month periods, respectively.

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 nearly 22 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)

	April 30, 2012			July 31, 2011
ASSETS
Current Assets:
Cash and cash equivalents	$	11,873		$	7,437
Accounts and notes receivable, net (including $194,762 and $112,509 of accounts receivable pledged as collateral at April 30, 2012 and July 31, 2011, respectively)	193,016			159,532
Inventories	131,854			136,139
Prepaid expenses and other current assets	18,285			23,885
Total Current Assets	355,028			326,993
Property, plant and equipment, net	635,881			642,205
Goodwill	248,944			248,944
Intangible assets, net	194,420			204,136
Other assets, net	39,967			38,308
Total Assets	$	1,474,240		$	1,460,586
LIABILITIES AND PARTNERS’ CAPITAL
Current Liabilities:
Accounts payable	$	67,503		$	67,541
Short-term borrowings	58,291			64,927
Collateralized note payable	134,000			61,000
Other current liabilities (a)	97,871			104,813
Total Current Liabilities	357,665			298,281
Long-term debt (a)	1,044,187			1,050,920
Other liabilities	23,622			23,068
Contingencies and commitments	—			—
Partners’ Capital:
Common unitholders (78,965,469 and 75,966,353 units outstanding at April 30, 2012 and July 31, 2011, respectively)	111,336			139,614
General partner unitholder (797,631 and 767,337 units outstanding at April 30, 2012 and July 31, 2011, respectively)	(58,947		)	(58,660		)
Accumulated other comprehensive income (loss)	(5,993		)	4,633
Total Ferrellgas Partners, L.P. Partners’ Capital	46,396			85,587
Noncontrolling Interest	2,370			2,730
Total Partners’ Capital	48,766			88,317
Total Liabilities and Partners’ Capital	$	1,474,240		$	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, NINE AND TWELVE MONTHS ENDED APRIL 30, 2012 AND 2011

(in thousands, except per unit data)

(unaudited)

	Three months ended						Nine months ended						Twelve months ended
	April 30						April 30						April 30
	2012			2011			2012			2011			2012			2011
Revenues:
Propane and other gas liquids sales	$	556,644		$	647,709		$	1,850,430		$	1,790,511		$	2,272,176		$	2,102,791
Other	72,975			84,664			146,887			183,046			174,799			224,614
Total revenues	629,619			732,373			1,997,317			1,973,557			2,446,975			2,327,405
Cost of product sold:
Propane and other gas liquids sales	401,521			483,101			1,405,243			1,299,003			1,715,584			1,496,321
Other	49,117			60,074			80,211			111,432			93,249			137,550
Gross profit	178,981			189,198			511,863			563,122			638,142			693,534
Operating expense (including $277, $500 and $500 of non-recurring severance charges for the three, nine and twelve month periods ended April 30, 2012, respectively)	95,822			103,813			298,974			306,635			399,620			406,647
Depreciation and amortization expense	21,123			20,030			62,839			60,395			84,930			80,864
General and administrative expense (including $113, $263 and $263 of non-recurring severance charges for the three, nine and twelve month periods ended April 30, 2012, respectively)	8,963			17,879			28,671			39,271			41,560			51,385
Equipment lease expense	3,789			3,650			10,846			10,842			14,439			14,123
Non-cash employee stock ownership plan compensation charge	2,203			2,591			6,719			7,967			8,909			10,328
Non-cash stock and unit-based compensation charge (b)	385			1,628			4,867			13,709			4,646			17,352
Loss on disposal of assets and other	1,220			463			2,052			834			4,851			3,839
Operating income	45,476			39,144			96,895			123,469			79,187			108,996
Interest expense	(23,471		)	(24,933		)	(70,904		)	(78,205		)	(94,584		)	(104,645		)
Loss on extinguishment of debt	—			(10,513		)	—			(46,962		)	—			(46,962		)
Other income, net	201			243			248			509			306			486
Earnings (loss) before income taxes	22,206			3,941			26,239			(1,189		)	(15,091		)	(42,125		)
Income tax expense	1,144			572			1,285			1,288			1,238			1,198
Net earnings (loss)	21,062			3,369			24,954			(2,477		)	(16,329		)	(43,323		)
Net earnings (loss) attributable to noncontrolling interest (a)	255			196			377			264			1			(82		)
Net earnings (loss) attributable to Ferrellgas Partners, L.P.	20,807			3,173			24,577			(2,741		)	(16,330		)	(43,241		)
Less: General partner’s interest in net earnings (loss)	208			32			246			(27		)	(163		)	(432		)
Common unitholders’ interest in net earnings (loss)	$	20,599		$	3,141		$	24,331		$	(2,714	)	$	(16,167	)	$	(42,809	)
Earnings (loss) Per Unit
Basic and diluted net earnings (loss) per common unitholders’ interest	$	0.26		$	0.04		$	0.32		$	(0.04	)	$	(0.21	)	$	(0.61	)
Weighted average common units outstanding	78,960.0			73,145.6			77,095.8			71,102.5			76,797.1			70,704.0

Supplemental Data and Reconciliation of Non-GAAP Items:

	Three months ended						Nine months ended						Twelve months ended
	April 30						April 30						April 30
	2012			2011			2012			2011			2012			2011
Net earnings (loss) attributable to Ferrellgas Partners, L.P.	$	20,807		$	3,173		$	24,577		$	(2,741	)	$	(16,330	)	$	(43,241	)
Income tax expense	1,144			572			1,285			1,288			1,238			1,198
Interest expense	23,471			24,933			70,904			78,205			94,584			104,645
Depreciation and amortization expense	21,123			20,030			62,839			60,395			84,930			80,864
EBITDA	66,545			48,708			159,605			137,147			164,422			143,466
Loss on extinguishment of debt	—			10,513			—			46,962			—			46,962
Non-cash employee stock ownership plan compensation charge	2,203			2,591			6,719			7,967			8,909			10,328
Non-cash stock and unit-based compensation charge (b)	385			1,628			4,867			13,709			4,646			17,352
Loss on disposal of assets and other	1,220			463			2,052			834			4,851			3,839
Other income, net	(201		)	(243		)	(248		)	(509		)	(306		)	(486		)
Nonrecurring severance costs	390			—			763			—			763			—
Nonrecurring litigation reserve and related legal fees	—			10,466			892			11,133			1,879			11,133
Net earnings (loss) attributable to noncontrolling interest	255			196			377			264			1			(82		)
Adjusted EBITDA (c)	70,797			74,322			175,027			217,507			185,165			232,512
Net cash interest expense (d)	(22,018		)	(23,011		)	(66,773		)	(71,393		)	(88,733		)	(93,206		)
Maintenance capital expenditures (e)	(2,680		)	(4,073		)	(11,518		)	(11,921		)	(15,034		)	(16,306		)
Cash paid for taxes	(10		)	(119		)	(100		)	(34		)	(657		)	(642		)
Proceeds from asset sales	1,940			1,073			4,314			4,273			6,035			8,896
Distributable cash flow to equity investors (f)	$	48,029		$	48,192		$	100,950		$	138,432		$	86,776		$	131,254
Propane gallons sales
Retail - Sales to End Users	167,462			190,009			524,287			559,797			619,898			649,855
Wholesale - Sales to Resellers	58,421			62,441			202,971			189,373			257,873			241,062
Total propane gallons sales	225,883			252,450			727,258			749,170			877,771			890,917

(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
	2012		2011		2012		2011		2012		2011
Operating expense	$	112	$	570	$	1,952	$	3,832	$	1,877	$	4,834
General and administrative expense	273		1,058		2,915		9,877		2,769		12,518
Total	$	385	$	1,628	$	4,867	$	13,709	$	4,646	$	17,352

(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, net, nonrecurring severance costs, nonrecurring 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.