Guarantor financial information | M. Guarantor financial information The $500.0 million aggregate principal amount of registered 6.75% senior notes due 2023 co-issued by Ferrellgas, L.P. and Ferrellgas Finance Corp. are fully and unconditionally and jointly and severally guaranteed by all of Ferrellgas, L.P.’s 100% owned subsidiaries except: (i) Ferrellgas Finance Corp; (ii) certain special purposes subsidiaries formed for use in connection with our accounts receivable securitization; and (iii) foreign subsidiaries. Guarantees of these senior notes will be released under certain circumstances, including (i) in connection with any sale or other disposition of (a) all or substantially all of the assets of a guarantor or (b) all of the capital stock of such guarantor (including by way of merger or consolidation), in each case, to a person that is not Ferrellgas, L.P. or a restricted subsidiary of Ferrellgas, L.P., (ii) if Ferrellgas, L.P. designates any restricted subsidiary that is a guarantor as an unrestricted subsidiary, (iii) upon defeasance or discharge of the notes, (iv) upon the liquidation or dissolution of such guarantor, or (v) at such time as such guarantor ceases to guarantee any other indebtedness of either of the issuers and any other guarantor. The guarantor financial information discloses in separate columns the financial position, results of operations and the cash flows of Ferrellgas, L.P. (Parent), Ferrellgas Finance Corp. (co-issuer), Ferrellgas, L.P.’s guarantor subsidiaries on a combined basis, and Ferrellgas, L.P.’s non-guarantor subsidiaries on a combined basis. The dates and the periods presented in the guarantor financial information are consistent with the periods presented in Ferrellgas, L.P.’s condensed consolidated financial statements. FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS (in thousands) As of January 31, 2021 Ferrellgas, L.P. Ferrellgas (Parent and Finance Corp. Guarantor Non-Guarantor Co-Issuer) (Co-Issuer) Subsidiaries Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 300,436 $ 1 $ — $ 6,140 $ — $ 306,577 Accounts and notes receivable, net 5,837 — — 200,443 — 206,280 Intercompany receivables 169,668 — — — (169,668) — Inventories 90,473 — — — — 90,473 Prepaid expenses and other current assets 73,106 — — — — 73,106 Total current assets 639,520 1 — 206,583 (169,668) 676,436 Property, plant and equipment, net 587,870 — — — — 587,870 Goodwill, net 246,946 — — — — 246,946 Intangible assets, net 99,644 — — — — 99,644 Investments in consolidated subsidiaries 39,143 — — — (39,143) — Operating lease right-of-use assets 97,249 — — — — 97,249 Loan receivable - Ferrellgas Partners, L.P. 20,151 — — — — 20,151 Other assets, net 88,784 — 2,255 120 — 91,159 Total assets $ 1,819,307 $ 1 $ 2,255 $ 206,703 $ (208,811) $ 1,819,455 LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) Current liabilities: Accounts payable $ 79,224 $ — $ — $ — $ — $ 79,224 Intercompany payables — — — 169,668 (169,668) — Current portion of long-term debt 501,865 — — — — 501,865 Current operating lease liabilities 27,895 — — — — 27,895 Other current liabilities 190,560 — (3) 151 — 190,708 Total current liabilities 799,544 — (3) 169,819 (169,668) 799,692 Long-term debt 1,650,410 — — — — 1,650,410 Operating lease liabilities 80,901 — — — — 80,901 Other liabilities 49,541 — — — — 49,541 Partners' capital (deficit): Partners' equity (795,209) 1 2,258 36,884 (39,143) (795,209) Accumulated other comprehensive income 34,120 — — — — 34,120 Total partners' capital (deficit) (761,089) 1 2,258 36,884 (39,143) (761,089) Total liabilities and partners' capital (deficit) $ 1,819,307 $ 1 $ 2,255 $ 206,703 $ (208,811) $ 1,819,455 FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS (in thousands) As of July 31, 2020 Ferrellgas, L.P. Ferrellgas (Parent and Finance Corp. Guarantor Non-Guarantor Co-Issuer) (Co-Issuer) Subsidiaries Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 332,244 $ 1 $ — $ 1,510 $ — $ 333,755 Accounts and notes receivable, net 11,879 — 24 89,535 — 101,438 Intercompany receivables 69,980 — — — (69,980) — Inventories 72,664 — — — . 72,664 Prepaid expenses and other current assets 35,897 — — — — 35,897 Total current assets 522,664 1 24 91,045 (69,980) 543,754 Property, plant and equipment, net 591,042 — — — — 591,042 Goodwill, net 247,195 — — — — 247,195 Intangible assets, net 104,049 — — — — 104,049 Investments in consolidated subsidiaries 37,662 — — — (37,662) — Operating lease right-of-use assets 107,349 — — — — 107,349 Other assets, net 72,137 — 2,255 356 — 74,748 Total assets $ 1,682,098 $ 1 $ 2,279 $ 91,401 $ (107,642) $ 1,668,137 LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) Current liabilities: Accounts payable $ 33,944 $ — $ — $ — $ — $ 33,944 Intercompany payables — — — 69,980 (69,980) — Current portion of long-term debt 502,095 — — — — 502,095 Current operating lease liabilities 29,345 — — — — 29,345 Other current liabilities 162,097 — — (13,961) — 148,136 Total current liabilities 727,481 — — 56,019 (69,980) 713,520 Long-term debt 1,646,396 — — — — 1,646,396 Operating lease liabilities 89,022 — — — — 89,022 Other liabilities 51,190 — — — — 51,190 Contingencies and commitments Partners' capital (deficit): Partners' equity (829,678) 1 2,279 35,382 (37,662) (829,678) Accumulated other comprehensive income (2,313) — — — — (2,313) Total partners' capital (deficit) (831,991) 1 2,279 35,382 (37,662) (831,991) Total liabilities and partners' capital (deficit) $ 1,682,098 $ 1 $ 2,279 $ 91,401 $ (107,642) $ 1,668,137 FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (in thousands) For the three months ended January 31, 2021 Ferrellgas, L.P. Ferrellgas (Parent and Finance Corp. Guarantor Non-Guarantor Co-Issuer) (Co-Issuer) Subsidiaries Subsidiaries Eliminations Consolidated Revenues: Propane and other gas liquids sales $ 528,434 $ — $ — $ — $ — $ 528,434 Other 25,126 — — — — 25,126 Total revenues 553,560 — — — — 553,560 Costs and expenses: Cost of sales - propane and other gas liquids sales 270,777 — — — — 270,777 Cost of sales - other 3,504 — — — — 3,504 Operating expense - personnel, vehicle, plant and other 115,247 — — 2,437 (2,437) 115,247 Operating expense - equipment lease expense 6,862 — — — — 6,862 Depreciation and amortization expense 21,249 — — — — 21,249 General and administrative expense 20,254 — — — — 20,254 Non-cash employee stock ownership plan compensation charge 762 — — — — 762 Loss on asset sales and disposals 80 — — — — 80 Operating income (loss) 114,825 — — (2,437) 2,437 114,825 Interest expense (45,958) — — (564) — (46,522) Other income (expense), net 3,774 — (15) 1,614 (1,614) 3,759 Earnings (loss) before income taxes 72,641 — (15) (1,387) 823 72,062 Income tax expense 312 — — — — 312 Equity in earnings (loss) of subsidiaries (1,402) — — — 1,402 — Net earnings (loss) 70,927 — (15) (1,387) 2,225 71,750 Other comprehensive income 28,516 — — — — 28,516 Comprehensive income (loss) $ 99,443 $ — $ (15) $ (1,387) $ 2,225 $ 100,266 FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (in thousands) For the three months ended January 31, 2020 Ferrellgas, L.P. Ferrellgas (Parent and Finance Corp. Guarantor Non-Guarantor Co-Issuer) (Co-Issuer) Subsidiaries Subsidiaries Eliminations Consolidated Revenues: Propane and other gas liquids sales $ 485,247 $ — $ — $ — $ — $ 485,247 Other 25,586 — — — — 25,586 Total revenues 510,833 — — — — 510,833 Costs and expenses: Cost of sales - propane and other gas liquids sales 237,843 — — — — 237,843 Cost of sales - other 3,353 — — — — 3,353 Operating expense - personnel, vehicle, plant and other 128,233 — — 1,050 (1,050) 128,233 Operating expense - equipment lease expense 8,261 — — — — 8,261 Depreciation and amortization expense 19,684 — — 111 — 19,795 General and administrative expense 14,082 3 — — — 14,085 Non-cash employee stock ownership plan compensation charge 630 — — — — 630 Loss on asset sales and disposals 2,148 — — — — 2,148 Operating income (loss) 96,599 (3) — (1,161) 1,050 96,485 Interest expense (37,778) — — (912) — (38,690) Other income (expense), net 76 — — 1,882 (1,882) 76 Earnings (loss) before income taxes 58,897 (3) — (191) (832) 57,871 Income tax expense 115 — — — — 115 Equity in earnings (loss) of subsidiary (194) — — — 194 — Net earnings (loss) 58,588 (3) — (191) (638) 57,756 Other comprehensive loss (2,555) — — — — (2,555) Comprehensive income (loss) $ 56,033 $ (3) $ — $ (191) $ (638) $ 55,201 FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (in thousands) For the six months ended January 31, 2021 Ferrellgas, L.P. Ferrellgas (Parent and Finance Corp. Guarantor Non-Guarantor Co-Issuer) (Co-Issuer) Subsidiaries Subsidiaries Eliminations Consolidated Revenues: Propane and other gas liquids sales $ 809,483 $ — $ — $ — $ — $ 809,483 Other 44,971 — — — — 44,971 Total revenues 854,454 — — — — 854,454 Costs and expenses: Cost of sales - propane and other gas liquids sales 408,404 — — — — 408,404 Cost of sales - other 7,171 — — — — 7,171 Operating expense - personnel, vehicle, plant and other 224,274 — — 3,174 (3,174) 224,274 Operating expense - equipment lease expense 13,692 — — — — 13,692 Depreciation and amortization expense 42,639 — — — — 42,639 General and administrative expense 33,328 2 — — — 33,330 Non-cash employee stock ownership plan compensation charge 1,470 — — — — 1,470 Loss on asset sales and disposals 893 — — — — 893 Operating income (loss) 122,583 (2) — (3,174) 3,174 122,581 Interest expense (91,859) — — (1,191) — (93,050) Other income (expense), net 3,903 — (36) 3,293 (3,293) 3,867 Earnings (loss) before income taxes 34,627 (2) (36) (1,072) (119) 33,398 Income tax expense 399 — — — — 399 Equity in earnings (loss) of subsidiary (1,110) — — — 1,110 — Net earnings (loss) 33,118 (2) (36) (1,072) 991 32,999 Other comprehensive loss 36,433 — — — — 36,433 Comprehensive income (loss) $ 69,551 $ (2) $ (36) $ (1,072) $ 991 $ 69,432 FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (in thousands) For the six months ended January 31, 2020 Ferrellgas, L.P. Ferrellgas (Parent and Finance Corp. Guarantor Non-Guarantor Co-Issuer) (Co-Issuer) Subsidiaries Subsidiaries Eliminations Consolidated Revenues: Propane and other gas liquids sales $ 758,632 $ — $ — $ — $ — $ 758,632 Other 45,415 — — — — 45,415 Total revenues 804,047 — — — — 804,047 Costs and expenses: Cost of sales - propane and other gas liquids sales 371,871 — — — — 371,871 Cost of sales - other 7,034 — — — — 7,034 Operating expense - personnel, vehicle, plant and other 242,776 — — 1,935 (1,935) 242,776 Operating expense - equipment lease expense 16,649 — — — — 16,649 Depreciation and amortization expense 38,791 — — 223 — 39,014 General and administrative expense 23,777 4 — — — 23,781 Non-cash employee stock ownership plan compensation charge 1,425 — — — — 1,425 Loss on asset sales and disposals 4,383 — — — — 4,383 Operating income (loss) 97,341 (4) — (2,158) 1,935 97,114 Interest expense (73,469) — — (2,098) — (75,567) Other income (expense), net (56) — — 2,602 (2,602) (56) Earnings (loss) before income taxes 23,816 (4) — (1,654) (667) 21,491 Income tax expense 633 — — — — 633 Equity in earnings (loss) of subsidiaries (1,658) — — — 1,658 — Net earnings (loss) 21,525 (4) — (1,654) 991 20,858 Other comprehensive loss (8,703) — — — — (8,703) Comprehensive income (loss) $ 12,822 $ (4) $ — $ (1,654) $ 991 $ 12,155 FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (in thousands) For the six months ended January 31, 2021 Ferrellgas, L.P. Ferrellgas (Parent and Finance Corp. Guarantor Non-Guarantor Co-Issuer) (Co-Issuer) Subsidiaries Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ 44,691 $ (6) $ (9) $ (4,856) $ 4,631 $ 44,451 Cash flows from investing activities: Capital expenditures (35,333) — — — — (35,333) Proceeds from sale of assets 3,144 — — — — 3,144 Cash collected for purchase of interest in accounts receivable — — — 422,498 (422,498) — Cash remitted to Ferrellgas, L.P. for accounts receivable — — — (417,867) 417,867 — Intercompany loan to affiliate (4,870) 4,870 Other - Loan to MLP (19,900) — — — — (19,900) Net cash provided by (used in) investing activities (56,959) — — 4,631 239 (52,089) Cash flows from financing activities: Payments on long-term debt (1,120) — — — — (1,120) Net changes in advances with consolidated entities — 6 9 4,855 (4,870) — Cash payments for principal portion of finance lease liability (3,460) — — — — (3,460) Cash paid for financing costs and other (14,960) — — — — (14,960) Net cash provided by (used in) financing activities (19,540) 6 9 4,855 (4,870) (19,540) Net change in cash and cash equivalents (31,808) — — 4,630 — (27,178) Cash and cash equivalents - beginning of year 332,244 1 — 1,510 — 333,755 Cash, cash equivalents and restricted cash - end of year $ 300,436 $ 1 $ — $ 6,140 $ — $ 306,577 FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (in thousands) For the six months ended January 31, 2020 Ferrellgas, L.P. Ferrellgas (Parent and Finance Corp. Guarantor Non-Guarantor Co-Issuer) (Co-Issuer) Subsidiaries Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ 80,433 $ (4) $ 512 $ (5,941) $ (59,000) $ 16,000 Cash flows from investing activities: Business acquisitions, net of cash acquired (6,400) — — — — (6,400) Capital expenditures (33,422) — — — — (33,422) Proceeds from sale of assets 1,659 — — — — 1,659 Cash collected for purchase of interest in accounts receivable — — — 416,325 (416,325) — Cash remitted to Ferrellgas, L.P. for accounts receivable — — — (475,325) 475,325 — Intercompany loan to affiliate (5,433) — — — 5,433 — Cash payment to construct assets in connection with future lease transactions (30,307) — — — — (30,307) Cash receipts in connection with leased vehicles 19,929 — — — — 19,929 Net cash provided by (used in) investing activities (53,974) — — (59,000) 64,433 (48,541) Cash flows from financing activities: Distributions (15,654) — — — — (15,654) Reductions in long-term debt (972) — — — — (972) Net reductions to short-term borrowings (3,000) — — — — (3,000) Net additions to collateralized short-term borrowings — — — 59,000 — 59,000 Net changes in advances with consolidated entries — 4 (512) 5,941 (5,433) — Cash paid for financing costs and other (4,236) — — — — (4,236) Net cash provided by (used in) financing activities (23,862) 4 (512) 64,941 (5,433) 35,138 Net change in cash and cash equivalents 2,597 — — — — 2,597 Cash and cash equivalents - beginning of year 11,045 1 — — — 11,046 Cash and cash equivalents - end of year $ 13,642 $ 1 $ — $ — $ — $ 13,643 |