x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended October 31, 2017 | |
or | |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to |
Delaware Delaware Delaware Delaware | 43-1698480 43-1742520 43-1698481 14-1866671 | |
(States or other jurisdictions of incorporation or organization) | (I.R.S. Employer Identification Nos.) | |
7500 College Boulevard, Suite 1000, Overland Park, Kansas | 66210 | |
(Address of principal executive office) | (Zip Code) |
Ferrellgas Partners, L.P.: | ||||||
Large accelerated filer x | Accelerated filer o | Non-accelerated filer o (do not check if a smaller reporting company) | Smaller reporting company o | |||
Emerging growth company ☐ |
Ferrellgas Partners Finance Corp, Ferrellgas, L.P. and Ferrellgas Finance Corp.: | ||||||
Large accelerated filer o | Accelerated filer o | Non-accelerated filer x (do not check if a smaller reporting company) | Smaller reporting company o | |||
Emerging growth company ☐ |
Ferrellgas Partners, L.P. | 97,152,665 | Common Units | ||
Ferrellgas Partners Finance Corp. | 1,000 | Common Stock | ||
Ferrellgas, L.P. | n/a | n/a | ||
Ferrellgas Finance Corp. | 1,000 | Common Stock |
Page | ||||
FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(in thousands, except unit data) | ||||||||
(unaudited) | ||||||||
October 31, 2017 | July 31, 2017 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 7,100 | $ | 5,760 | ||||
Accounts and notes receivable, net (including $137,244 and $109,407 of accounts receivable pledged as collateral at October 31, 2017 and July 31, 2017, respectively) | 191,428 | 165,084 | ||||||
Inventories | 112,338 | 92,552 | ||||||
Prepaid expenses and other current assets | 68,068 | 33,388 | ||||||
Total current assets | 378,934 | 296,784 | ||||||
Property, plant and equipment, net | 738,729 | 731,923 | ||||||
Goodwill, net | 256,103 | 256,103 | ||||||
Intangible assets (net of accumulated amortization of $444,447 and $436,428 at October 31, 2017 and July 31, 2017, respectively) | 250,629 | 251,102 | ||||||
Other assets, net | 80,559 | 74,057 | ||||||
Total assets | $ | 1,704,954 | $ | 1,609,969 | ||||
LIABILITIES AND PARTNERS' DEFICIT | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 99,198 | $ | 85,561 | ||||
Short-term borrowings | 263,200 | 59,781 | ||||||
Collateralized note payable | 88,000 | 69,000 | ||||||
Other current liabilities | 200,879 | 126,224 | ||||||
Total current liabilities | 651,277 | 340,566 | ||||||
Long-term debt | 1,812,155 | 1,995,795 | ||||||
Other liabilities | 34,799 | 31,118 | ||||||
Contingencies and commitments (Note J) | ||||||||
Partners' deficit: | ||||||||
Common unitholders (97,152,665 units outstanding at October 31, 2017 and July 31, 2017) | (754,456 | ) | (701,188 | ) | ||||
General partner unitholder (989,926 units outstanding at October 31, 2017 and July 31, 2017) | (67,528 | ) | (66,991 | ) | ||||
Accumulated other comprehensive income | 32,915 | 14,601 | ||||||
Total Ferrellgas Partners, L.P. partners' deficit | (789,069 | ) | (753,578 | ) | ||||
Noncontrolling interest | (4,208 | ) | (3,932 | ) | ||||
Total partners' deficit | (793,277 | ) | (757,510 | ) | ||||
Total liabilities and partners' deficit | $ | 1,704,954 | $ | 1,609,969 | ||||
See notes to condensed consolidated financial statements. |
FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES | |||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
(in thousands, except unit data) | |||||||||
(unaudited) | |||||||||
For the three months ended October 31, | |||||||||
2017 | 2016 | ||||||||
Revenues: | |||||||||
Propane and other gas liquids sales | $ | 302,758 | $ | 242,399 | |||||
Midstream operations | 120,760 | 108,044 | |||||||
Other | 31,137 | 29,099 | |||||||
Total revenues | 454,655 | 379,542 | |||||||
Costs and expenses: | |||||||||
Cost of sales - propane and other gas liquids sales | 179,515 | 119,212 | |||||||
Cost of sales - midstream operations | 108,125 | 94,642 | |||||||
Cost of sales - other | 13,702 | 11,746 | |||||||
Operating expense | 110,462 | 105,086 | |||||||
Depreciation and amortization expense | 25,732 | 26,202 | |||||||
General and administrative expense | 13,164 | 14,269 | |||||||
Equipment lease expense | 6,741 | 7,349 | |||||||
Non-cash employee stock ownership plan compensation charge | 3,962 | 3,754 | |||||||
Loss on asset sales and disposal | 895 | 6,423 | |||||||
Operating loss | (7,643 | ) | (9,141 | ) | |||||
Interest expense | (40,807 | ) | (35,428 | ) | |||||
Other income, net | 511 | 508 | |||||||
Loss before income taxes | (47,939 | ) | (44,061 | ) | |||||
Income tax (benefit) expense | 377 | (590 | ) | ||||||
Net loss | (48,316 | ) | (43,471 | ) | |||||
Net loss attributable to noncontrolling interest | (401 | ) | (398 | ) | |||||
Net loss attributable to Ferrellgas Partners, L.P. | (47,915 | ) | (43,073 | ) | |||||
Less: General partner's interest in net loss | (479 | ) | (431 | ) | |||||
Common unitholders' interest in net loss | $ | (47,436 | ) | $ | (42,642 | ) | |||
Basic and diluted net loss per common unit | $ | (0.49 | ) | $ | (0.44 | ) | |||
Cash distributions declared per common unit | $ | 0.10 | $ | 0.10 | |||||
See notes to condensed consolidated financial statements. |
FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES | |||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||
(in thousands) | |||||||||
(unaudited) | |||||||||
For the three months ended October 31, | |||||||||
2017 | 2016 | ||||||||
Net loss | $ | (48,316 | ) | $ | (43,471 | ) | |||
Other comprehensive income: | |||||||||
Change in value of risk management derivatives | 22,449 | 5,138 | |||||||
Reclassification of (gains) losses on derivatives to earnings, net | (3,949 | ) | 4,238 | ||||||
Other comprehensive income | 18,500 | 9,376 | |||||||
Comprehensive loss | (29,816 | ) | (34,095 | ) | |||||
Less: Comprehensive loss attributable to noncontrolling interest | (215 | ) | (304 | ) | |||||
Comprehensive loss attributable to Ferrellgas Partners, L.P. | $ | (29,601 | ) | $ | (33,791 | ) | |||
See notes to condensed consolidated financial statements. |
FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES | |||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF PARTNERS' DEFICIT | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Number of units | Accumulated other comprehensive income | Total Ferrellgas Partners, L.P. partners' deficit | Total partners' deficit | ||||||||||||||||||||||||||
Common unitholders | General partner unitholder | Common unitholders | General partner unitholder | Non-controlling interest | |||||||||||||||||||||||||
Balance at July 31, 2017 | 97,152.7 | 989.9 | $ | (701,188 | ) | $ | (66,991 | ) | $ | 14,601 | $ | (753,578 | ) | $ | (3,932 | ) | $ | (757,510 | ) | ||||||||||
Contributions in connection with non-cash ESOP and stock-based compensation charges | — | — | 3,883 | 40 | — | 3,923 | 39 | 3,962 | |||||||||||||||||||||
Distributions | — | — | (9,715 | ) | (98 | ) | — | (9,813 | ) | (100 | ) | (9,913 | ) | ||||||||||||||||
Net loss | — | — | (47,436 | ) | (479 | ) | — | (47,915 | ) | (401 | ) | (48,316 | ) | ||||||||||||||||
Other comprehensive income | — | — | — | — | 18,314 | 18,314 | 186 | 18,500 | |||||||||||||||||||||
Balance at October 31, 2017 | 97,152.7 | 989.9 | $ | (754,456 | ) | $ | (67,528 | ) | $ | 32,915 | $ | (789,069 | ) | $ | (4,208 | ) | $ | (793,277 | ) | ||||||||||
See notes to condensed consolidated financial statements. |
FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(in thousands) | |||||||
(unaudited) | |||||||
For the three months ended October 31, | |||||||
2017 | 2016 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (48,316 | ) | $ | (43,471 | ) | |
Reconciliation of net loss to net cash provided by operating activities: | |||||||
Depreciation and amortization expense | 25,732 | 26,202 | |||||
Non-cash employee stock ownership plan compensation charge | 3,962 | 3,754 | |||||
Non-cash stock-based compensation charge | — | 1,881 | |||||
Loss on asset sales and disposal | 895 | 6,423 | |||||
Unrealized gain on derivative instruments | 1,607 | — | |||||
Provision for doubtful accounts | 693 | 9 | |||||
Deferred income tax expense | 364 | 143 | |||||
Other | 2,238 | 1,302 | |||||
Changes in operating assets and liabilities, net of effects from business acquisitions: | |||||||
Accounts and notes receivable, net of securitization | (23,862 | ) | 1,310 | ||||
Inventories | (33,160 | ) | (9,702 | ) | |||
Prepaid expenses and other current assets | (6,936 | ) | 8,032 | ||||
Accounts payable | 13,496 | 7,049 | |||||
Accrued interest expense | 32,438 | 28,495 | |||||
Other current liabilities | 39,550 | 21,251 | |||||
Other assets and liabilities | (768 | ) | 1,872 | ||||
Net cash provided by operating activities | 7,933 | 54,550 | |||||
Cash flows from investing activities: | |||||||
Business acquisitions, net of cash acquired | (13,867 | ) | — | ||||
Capital expenditures | (20,154 | ) | (10,005 | ) | |||
Proceeds from sale of assets | 1,208 | 2,279 | |||||
Net cash used in investing activities | (32,813 | ) | (7,726 | ) | |||
Cash flows from financing activities: | |||||||
Distributions | (9,813 | ) | (50,294 | ) | |||
Proceeds from issuance of long-term debt | 23,580 | 25,626 | |||||
Payments on long-term debt | (281 | ) | (2,261 | ) | |||
Net reductions in short-term borrowings | (5,879 | ) | (4,467 | ) | |||
Net additions to collateralized short-term borrowings | 19,000 | 10,000 | |||||
Cash paid for financing costs | (287 | ) | (1,390 | ) | |||
Noncontrolling interest activity | (100 | ) | (513 | ) | |||
Repurchase of common units | — | (15,851 | ) | ||||
Net cash provided by (used in) financing activities | 26,220 | (39,150 | ) | ||||
Net change in cash and cash equivalents | 1,340 | 7,674 | |||||
Cash and cash equivalents - beginning of period | 5,760 | 4,965 | |||||
Cash and cash equivalents - end of period | $ | 7,100 | $ | 12,639 | |||
See notes to condensed consolidated financial statements. |
• | Propane operations and related equipment sales consists of the distribution of propane and related equipment and supplies. The propane distribution market is seasonal because propane is used primarily for heating in residential and commercial buildings. Ferrellgas serves residential, industrial/commercial, portable tank exchange, agricultural, wholesale and other customers in all 50 states, the District of Columbia, and Puerto Rico. |
• | Midstream operations consists of crude oil logistics and water solutions. Crude oil logistics primarily generates income by providing crude oil transportation and logistics services on behalf of producers and end-users of crude oil. Water solutions generates income primarily through the operation of salt water disposal wells in the Eagle Ford shale region of south Texas. |
October 31, 2017 | July 31, 2017 | |||||||
Propane gas and related products | $ | 79,196 | $ | 67,049 | ||||
Crude oil | 7,921 | 724 | ||||||
Appliances, parts and supplies | 25,221 | 24,779 | ||||||
Inventories | $ | 112,338 | $ | 92,552 |
October 31, 2017 | July 31, 2017 | |||||||
Note receivable - Jamex, less current portion | $ | 30,000 | $ | 32,500 | ||||
Other | 50,559 | 41,557 | ||||||
Other assets, net | $ | 80,559 | $ | 74,057 |
October 31, 2017 | July 31, 2017 | |||||||
Accrued interest | $ | 51,109 | $ | 18,671 | ||||
Customer deposits and advances | 42,599 | 25,541 | ||||||
Other | 107,171 | 82,012 | ||||||
Other current liabilities | $ | 200,879 | $ | 126,224 |
For the three months ended October 31, | ||||||||
2017 | 2016 | |||||||
Operating expense | $ | 43,314 | $ | 41,810 | ||||
Depreciation and amortization expense | 1,112 | 1,026 | ||||||
Equipment lease expense | 6,069 | 6,666 | ||||||
Total shipping and handling expenses | $ | 50,495 | $ | 49,502 |
For the three months ended October 31, | ||||||||
2017 | 2016 | |||||||
Cash paid for: | ||||||||
Interest | $ | 6,129 | $ | 5,631 | ||||
Income taxes | $ | 6 | $ | 1 | ||||
Non-cash investing and financing activities: | ||||||||
Liabilities incurred in connection with acquisitions | $ | 1,232 | $ | — | ||||
Change in accruals for property, plant and equipment additions | $ | 140 | $ | (189 | ) |
October 31, 2017 | July 31, 2017 | |||||||
Accounts receivable pledged as collateral | $ | 137,244 | $ | 109,407 | ||||
Accounts receivable | 46,318 | 47,346 | ||||||
Note receivable - Jamex, current portion | 10,000 | 10,000 | ||||||
Other | 294 | 307 | ||||||
Less: Allowance for doubtful accounts | (2,428 | ) | (1,976 | ) | ||||
Accounts and notes receivable, net | $ | 191,428 | $ | 165,084 |
Date | Maximum leverage ratio | ||
October 31, 2017 | 7.75 | ||
January 31, 2018 | 7.75 | ||
April 30, 2018 | 7.75 | ||
July 31, 2018 & thereafter | 5.50 |
Date | Minimum consolidated interest coverage ratio | ||
October 31, 2017 | 1.75 | ||
January 31, 2018 | 1.75 | ||
April 30, 2018 | 1.75 | ||
July 31, 2018 & thereafter | 2.50 |
Date | Maximum leverage ratio | ||
October 31, 2017 | 7.75 | ||
January 31, 2018 | 7.75 | ||
April 30, 2018 | 7.75 | ||
July 31, 2018 & thereafter | 5.50 |
Date | Minimum consolidated interest coverage ratio | ||
October 31, 2017 | 1.75 | ||
January 31, 2018 | 1.75 | ||
April 30, 2018 | 1.75 | ||
July 31, 2018 & thereafter | 2.50 |
October 31, 2017 | July 31, 2017 | |||||
Public common unitholders | 69,612,939 | 69,612,939 | ||||
Ferrell Companies (1) | 22,529,361 | 22,529,361 | ||||
FCI Trading Corp. (2) | 195,686 | 195,686 | ||||
Ferrell Propane, Inc. (3) | 51,204 | 51,204 | ||||
James E. Ferrell (4) | 4,763,475 | 4,763,475 |
For the three months ended October 31, | ||||||||
2017 | 2016 | |||||||
Public common unitholders | $ | 6,961 | $ | 35,678 | ||||
Ferrell Companies | 2,253 | 11,546 | ||||||
FCI Trading Corp. | 20 | 100 | ||||||
Ferrell Propane, Inc. | 5 | 26 | ||||||
James E. Ferrell | 476 | 2,441 | ||||||
General partner | 98 | 503 | ||||||
$ | 9,813 | $ | 50,294 |
Ferrell Companies | $ | 2,253 | ||
FCI Trading Corp. | 20 | |||
Ferrell Propane, Inc. | 5 | |||
James E. Ferrell | 476 | |||
General partner | 98 |
Asset (Liability) | ||||||||||||||||
Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | Total | |||||||||||||
October 31, 2017: | ||||||||||||||||
Assets: | ||||||||||||||||
Derivative financial instruments: | ||||||||||||||||
Interest rate swap agreements | $ | — | $ | 298 | $ | — | $ | 298 | ||||||||
Commodity derivatives | $ | — | $ | 35,000 | $ | — | $ | 35,000 | ||||||||
Liabilities: | ||||||||||||||||
Derivative financial instruments: | ||||||||||||||||
Interest rate swap agreements | $ | — | $ | (984 | ) | $ | — | $ | (984 | ) | ||||||
Commodity derivatives | $ | — | $ | (3,464 | ) | $ | — | $ | (3,464 | ) | ||||||
July 31, 2017: | ||||||||||||||||
Assets: | ||||||||||||||||
Derivative financial instruments: | ||||||||||||||||
Interest rate swap agreements | $ | — | $ | 583 | $ | — | $ | 583 | ||||||||
Commodity derivatives | $ | — | $ | 16,212 | $ | — | $ | 16,212 | ||||||||
Liabilities: | ||||||||||||||||
Derivative financial instruments: | ||||||||||||||||
Interest rate swap agreements | $ | — | $ | (707 | ) | $ | — | $ | (707 | ) | ||||||
Commodity derivatives | $ | — | $ | (1,258 | ) | $ | — | $ | (1,258 | ) |
October 31, 2017 | ||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||
Derivative Instrument | Location | Fair value | Location | Fair value | ||||||||
Derivatives designated as hedging instruments | ||||||||||||
Commodity derivatives-propane | Prepaid expenses and other current assets | $ | 25,938 | Other current liabilities | $ | 1,209 | ||||||
Commodity derivatives-propane | Other assets, net | 8,789 | Other liabilities | 284 | ||||||||
Interest rate swap agreements | Prepaid expenses and other current assets | 298 | Other current liabilities | 284 | ||||||||
Interest rate swap agreements | Other assets, net | — | Other liabilities | 700 | ||||||||
Derivatives not designated as hedging instruments | ||||||||||||
Commodity derivatives-crude oil | Prepaid expenses and other current assets | 273 | Other current liabilities | 1,971 | ||||||||
Total | $ | 35,298 | Total | $ | 4,448 | |||||||
July 31, 2017 | ||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||
Derivative Instrument | Location | Fair value | Location | Fair value | ||||||||
Derivatives designated as hedging instruments | ||||||||||||
Commodity derivatives-propane | Prepaid expenses and other current assets | $ | 11,061 | Other current liabilities | $ | 415 | ||||||
Commodity derivatives-propane | Other assets, net | 4,413 | Other liabilities | 15 | ||||||||
Interest rate swap agreements | Prepaid expenses and other current assets | 583 | Other current liabilities | 595 | ||||||||
Interest rate swap agreements | Other assets, net | — | Other liabilities | 112 | ||||||||
Derivatives not designated as hedging instruments | ||||||||||||
Commodity derivatives-crude oil | Prepaid expenses and other current assets | 738 | Other current liabilities | 828 | ||||||||
Total | $ | 16,795 | Total | $ | 1,965 |
October 31, 2017 | ||||||||||||
Assets | Liabilities | |||||||||||
Description | Location | Amount | Location | Amount | ||||||||
Margin Balances | Prepaid expenses and other current assets | $ | 3,723 | Other current liabilities | $ | 19,696 | ||||||
Other assets, net | 1,461 | Other liabilities | 5,945 | |||||||||
$ | 5,184 | $ | 25,641 |
July 31, 2017 | ||||||||||||
Assets | Liabilities | |||||||||||
Description | Location | Amount | Location | Amount | ||||||||
Margin Balances | Prepaid expenses and other current assets | $ | 1,778 | Other current liabilities | $ | 7,729 | ||||||
Other assets, net | 1,631 | Other liabilities | 3,073 | |||||||||
$ | 3,409 | $ | 10,802 |
Amount of Gain Recognized on Derivative | Amount of Interest Expense Recognized on Fixed-Rated Debt (Related Hedged Item) | |||||||||||||||||
Derivative Instrument | Location of Amounts Recognized on Derivative | For the three months ended October 31, | For the three months ended October 31, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||
Interest rate swap agreements | Interest expense | $ | 138 | $ | 420 | $ | (2,275 | ) | $ | (2,275 | ) | |||||||
For the three months ended October 31, 2017 | ||||||||||||||
Derivative Instrument | Amount of Gain (Loss) Recognized in AOCI | Location of Gain (Loss) Reclassified from AOCI into Income | Amount of Gain (Loss) Reclassified from AOCI into Income | |||||||||||
Effective portion | Ineffective portion | |||||||||||||
Commodity derivatives | $ | 22,323 | Cost of sales-propane and other gas liquids sales | $ | 4,132 | $ | — | |||||||
Interest rate swap agreements | 126 | Interest expense | (183 | ) | — | |||||||||
$ | 22,449 | $ | 3,949 | $ | — | |||||||||
For the three months ended October 31, 2016 | ||||||||||||||
Derivative Instrument | Amount of Gain (Loss) Recognized in AOCI | Location of Gain (Loss) Reclassified from AOCI into Income | Amount of Gain (Loss) Reclassified from AOCI into Income | |||||||||||
Effective portion | Ineffective portion | |||||||||||||
Commodity derivatives | $ | 4,873 | Cost of sales-propane and other gas liquids sales | $ | (3,596 | ) | $ | — | ||||||
Interest rate swap agreements | 265 | Interest expense | (642 | ) | — | |||||||||
$ | 5,138 | $ | (4,238 | ) | $ | — | ||||||||
For the three months ended October 31, 2017 | ||||||
Derivatives Not Designated as Hedging Instruments | Amount of Gain (Loss) Recognized in Income | Location of Gain (Loss) Recognized in Income | ||||
Commodity derivatives - crude oil | $ | (1,390 | ) | Cost of sales - midstream operations | ||
For the three months ended October 31, 2016 | ||||||
Derivatives Not Designated as Hedging Instruments | Amount of Gain (Loss) Recognized in Income | Location of Gain (Loss) Recognized in Income | ||||
Commodity derivatives - crude oil | $ | (1,241 | ) | Cost of sales - midstream operations | ||
Commodity derivatives - vehicle fuel | $ | 1,027 | Operating expense | |||
For the three months ended October 31, | ||||||||
Gains and losses on derivatives included in AOCI | 2017 | 2016 | ||||||
Beginning balance | $ | 14,648 | $ | (9,815 | ) | |||
Change in value of risk management commodity derivatives | 22,323 | 4,873 | ||||||
Reclassification of (gains) and losses on commodity hedges to cost of sales - propane and other gas liquids sales, net | (4,132 | ) | 3,596 | |||||
Change in value of risk management interest rate derivatives | 126 | 265 | ||||||
Reclassification of (gains) and losses on interest rate hedges to interest expense | 183 | 642 | ||||||
Ending balance | $ | 33,148 | $ | (439 | ) |
For the three months ended October 31, | ||||||||
2017 | 2016 | |||||||
Operating expense | $ | 57,351 | $ | 55,714 | ||||
General and administrative expense | $ | 7,508 | $ | 8,583 |
Ratio of total distributions payable to: | ||||||
Quarterly distribution per common unit | Common unitholder | General partner | ||||
$0.56 to $0.63 | 86.9 | % | 13.1 | % | ||
$0.64 to $0.82 | 76.8 | % | 23.2 | % | ||
$0.83 and above | 51.5 | % | 48.5 | % |
For the three months ended October 31, | ||||||||
2017 | 2016 | |||||||
(in thousands, except per unitholders' interest amounts) | ||||||||
Common unitholders’ interest in net loss | $ | (47,436 | ) | $ | (42,642 | ) | ||
Weighted average common units outstanding - basic and diluted | 97,152.7 | 97,457.6 | ||||||
Basic and diluted net loss per common unitholders’ interest | $ | (0.49 | ) | $ | (0.44 | ) |
Three months ended October 31, 2017 | ||||||||||||||||
Propane operations and related equipment sales | Midstream operations | Corporate | Total | |||||||||||||
Segment revenues | $ | 333,895 | $ | 120,760 | $ | — | $ | 454,655 | ||||||||
Direct costs (1) | 303,329 | 113,901 | 11,209 | 428,439 | ||||||||||||
Adjusted EBITDA | $ | 30,566 | $ | 6,859 | $ | (11,209 | ) | $ | 26,216 | |||||||
Three months ended October 31, 2016 | ||||||||||||||||
Propane operations and related equipment sales | Midstream operations | Corporate | Total | |||||||||||||
Segment revenues | $ | 271,498 | $ | 108,044 | $ | — | $ | 379,542 | ||||||||
Direct costs (1) | 237,014 | 102,773 | 10,736 | 350,523 | ||||||||||||
Adjusted EBITDA | $ | 34,484 | $ | 5,271 | $ | (10,736 | ) | $ | 29,019 | |||||||
Three months ended October 31, | ||||||||
2017 | 2016 | |||||||
Net loss attributable to Ferrellgas Partners, L.P. | $ | (47,915 | ) | $ | (43,073 | ) | ||
Income tax expense (benefit) | 377 | (590 | ) | |||||
Interest expense | 40,807 | 35,428 | ||||||
Depreciation and amortization expense | 25,732 | 26,202 | ||||||
EBITDA | 19,001 | 17,967 | ||||||
Non-cash employee stock ownership plan compensation charge | 3,962 | 3,754 | ||||||
Non-cash stock-based compensation charge | — | 1,881 | ||||||
Loss on asset sales and disposal | 895 | 6,423 | ||||||
Other income, net | (511 | ) | (508 | ) | ||||
Severance costs | 1,663 | 1,469 | ||||||
Unrealized (non-cash) loss (gain) on changes in fair value of derivatives not designated as hedging instruments | 1,607 | (1,569 | ) | |||||
Net loss attributable to noncontrolling interest | (401 | ) | (398 | ) | ||||
Adjusted EBITDA | $ | 26,216 | $ | 29,019 |
Assets | October 31, 2017 | July 31, 2017 | ||||||
Propane operations and related equipment sales | $ | 1,292,686 | $ | 1,194,905 | ||||
Midstream operations | 397,653 | 399,356 | ||||||
Corporate and unallocated | 14,615 | 15,708 | ||||||
Total consolidated assets | $ | 1,704,954 | $ | 1,609,969 |
Three months ended October 31, 2017 | ||||||||||||||||
Propane operations and related equipment sales | Midstream operations | Corporate | Total | |||||||||||||
Capital expenditures: | ||||||||||||||||
Maintenance | $ | 8,351 | $ | 3 | $ | 239 | $ | 8,593 | ||||||||
Growth | 9,688 | 664 | — | 10,352 | ||||||||||||
Total | $ | 18,039 | $ | 667 | $ | 239 | $ | 18,945 | ||||||||
Three months ended October 31, 2016 | ||||||||||||||||
Propane operations and related equipment sales | Midstream operations | Corporate | Total | |||||||||||||
Capital expenditures: | ||||||||||||||||
Maintenance | $ | 1,831 | $ | 127 | $ | 1,306 | $ | 3,264 | ||||||||
Growth | 5,414 | — | — | 5,414 | ||||||||||||
Total | $ | 7,245 | $ | 127 | $ | 1,306 | $ | 8,678 |
FERRELLGAS PARTNERS FINANCE CORP. | |||||||
(a wholly-owned subsidiary of Ferrellgas Partners, L.P.) | |||||||
CONDENSED BALANCE SHEETS | |||||||
(unaudited) | |||||||
October 31, 2017 | July 31, 2017 | ||||||
ASSETS | |||||||
Cash | $ | 1,000 | $ | 1,000 | |||
Total assets | $ | 1,000 | $ | 1,000 | |||
Contingencies and commitments (Note B) | |||||||
STOCKHOLDER'S EQUITY | |||||||
Common stock, $1.00 par value; 2,000 shares authorized; 1,000 shares issued and outstanding | $ | 1,000 | $ | 1,000 | |||
Additional paid in capital | 25,105 | 25,055 | |||||
Accumulated deficit | (25,105 | ) | (25,055 | ) | |||
Total stockholder's equity | $ | 1,000 | $ | 1,000 | |||
See notes to condensed financial statements. |
FERRELLGAS PARTNERS FINANCE CORP. | ||||||||
(a wholly-owned subsidiary of Ferrellgas Partners, L.P.) | ||||||||
CONDENSED STATEMENTS OF OPERATIONS | ||||||||
(unaudited) | ||||||||
For the three months ended October 31, | ||||||||
2017 | 2016 | |||||||
General and administrative expense | $ | 50 | $ | 92 | ||||
Net loss | $ | (50 | ) | $ | (92 | ) | ||
See notes to condensed financial statements. |
FERRELLGAS PARTNERS FINANCE CORP. | |||||||
(a wholly-owned subsidiary of Ferrellgas Partners, L.P.) | |||||||
CONDENSED STATEMENTS OF CASH FLOWS | |||||||
(unaudited) | |||||||
For the three months ended October 31, | |||||||
2017 | 2016 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (50 | ) | $ | (92 | ) | |
Cash used in operating activities | (50 | ) | (92 | ) | |||
Cash flows from financing activities: | |||||||
Capital contribution | 50 | 92 | |||||
Cash provided by financing activities | 50 | 92 | |||||
Net change in cash | — | — | |||||
Cash - beginning of period | 1,000 | 1,000 | |||||
Cash - end of period | $ | 1,000 | $ | 1,000 | |||
See notes to condensed financial statements. |
FERRELLGAS, L.P. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(in thousands) | |||||||
(unaudited) | |||||||
October 31, 2017 | July 31, 2017 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 7,098 | $ | 5,701 | |||
Accounts and notes receivable, net (including $137,244 and $109,407 of accounts receivable pledged as collateral at October 31, 2017 and July 31, 2017, respectively) | 191,428 | 165,084 | |||||
Inventories | 112,338 | 92,552 | |||||
Prepaid expenses and other current assets | 68,055 | 33,426 | |||||
Total current assets | 378,919 | 296,763 | |||||
Property, plant and equipment, net | 738,729 | 731,923 | |||||
Goodwill, net | 256,103 | 256,103 | |||||
Intangible assets (net of accumulated amortization of $444,447 and $436,428 at October 31, 2017 and July 31, 2017, respectively) | 250,629 | 251,102 | |||||
Other assets, net | 80,559 | 74,057 | |||||
Total assets | $ | 1,704,939 | $ | 1,609,948 | |||
LIABILITIES AND PARTNERS' DEFICIT | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 99,198 | $ | 85,561 | |||
Short-term borrowings | 263,200 | 59,781 | |||||
Collateralized note payable | 88,000 | 69,000 | |||||
Other current liabilities | 189,261 | 122,016 | |||||
Total current liabilities | 639,659 | 336,358 | |||||
Long-term debt | 1,464,429 | 1,649,270 | |||||
Other liabilities | 34,799 | 31,118 | |||||
Contingencies and commitments (Note J) | |||||||
Partners' deficit: | |||||||
Limited partner | (462,655 | ) | (417,467 | ) | |||
General partner | (4,557 | ) | (4,095 | ) | |||
Accumulated other comprehensive income | 33,264 | 14,764 | |||||
Total partners' deficit | (433,948 | ) | (406,798 | ) | |||
Total liabilities and partners' deficit | $ | 1,704,939 | $ | 1,609,948 | |||
See notes to condensed consolidated financial statements. |
FERRELLGAS, L.P. AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
For the three months ended October 31, | ||||||||
2017 | 2016 | |||||||
Revenues: | ||||||||
Propane and other gas liquids sales | $ | 302,758 | $ | 242,399 | ||||
Midstream operations | 120,760 | 108,044 | ||||||
Other | 31,137 | 29,099 | ||||||
Total revenues | 454,655 | 379,542 | ||||||
Costs and expenses: | ||||||||
Cost of sales - propane and other gas liquids sales | 179,515 | 119,212 | ||||||
Cost of sales - midstream operations | 108,125 | 94,642 | ||||||
Cost of sales - other | 13,702 | 11,746 | ||||||
Operating expense | 110,462 | 105,086 | ||||||
Depreciation and amortization expense | 25,732 | 26,202 | ||||||
General and administrative expense | 13,164 | 14,269 | ||||||
Equipment lease expense | 6,741 | 7,349 | ||||||
Non-cash employee stock ownership plan compensation charge | 3,962 | 3,754 | ||||||
Loss on asset sales and disposal | 895 | 6,423 | ||||||
Operating loss | (7,643 | ) | (9,141 | ) | ||||
Interest expense | (32,196 | ) | (31,398 | ) | ||||
Other income, net | 511 | 508 | ||||||
Loss before income taxes | (39,328 | ) | (40,031 | ) | ||||
Income tax (benefit) expense | 371 | (591 | ) | |||||
Net loss | $ | (39,699 | ) | $ | (39,440 | ) | ||
See notes to condensed consolidated financial statements. |
FERRELLGAS, L.P. AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
For the three months ended October 31, | ||||||||
2017 | 2016 | |||||||
Net loss | $ | (39,699 | ) | $ | (39,440 | ) | ||
Other comprehensive income: | ||||||||
Change in value of risk management derivatives | 22,449 | 5,138 | ||||||
Reclassification of (gains) losses on derivatives to earnings, net | (3,949 | ) | 4,238 | |||||
Other comprehensive income | 18,500 | 9,376 | ||||||
Comprehensive loss | $ | (21,199 | ) | $ | (30,064 | ) | ||
See notes to condensed consolidated financial statements. |
FERRELLGAS, L.P. AND SUBSIDIARIES | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF PARTNERS' DEFICIT | |||||||||||||||
(in thousands) | |||||||||||||||
(unaudited) | |||||||||||||||
Accumulated | |||||||||||||||
other | Total | ||||||||||||||
Limited | General | comprehensive | partners' | ||||||||||||
partner | partner | income | deficit | ||||||||||||
Balance at July 31, 2017 | $ | (417,467 | ) | $ | (4,095 | ) | $ | 14,764 | $ | (406,798 | ) | ||||
Contributions in connection with non-cash ESOP and stock-based compensation charges | 3,923 | 39 | — | 3,962 | |||||||||||
Distributions | (9,813 | ) | (100 | ) | — | (9,913 | ) | ||||||||
Net loss | (39,298 | ) | (401 | ) | — | (39,699 | ) | ||||||||
Other comprehensive income | — | — | 18,500 | 18,500 | |||||||||||
Balance at October 31, 2017 | $ | (462,655 | ) | $ | (4,557 | ) | $ | 33,264 | $ | (433,948 | ) | ||||
See notes to condensed consolidated financial statements. |
FERRELLGAS, L.P. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(in thousands) | |||||||
(unaudited) | |||||||
For the three months ended October 31, | |||||||
2017 | 2016 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (39,699 | ) | $ | (39,440 | ) | |
Reconciliation of net loss to net cash provided by operating activities: | |||||||
Depreciation and amortization expense | 25,732 | 26,202 | |||||
Non-cash employee stock ownership plan compensation charge | 3,962 | 3,754 | |||||
Non-cash stock-based compensation charge | — | 1,881 | |||||
Loss on asset sales and disposal | 895 | 6,423 | |||||
Unrealized gain on derivative instruments | 1,607 | — | |||||
Provision for doubtful accounts | 693 | 9 | |||||
Deferred income tax expense | 364 | 143 | |||||
Other | 1,325 | 1,197 | |||||
Changes in operating assets and liabilities, net of effects from business acquisitions: | |||||||
Accounts and notes receivable, net of securitization | (23,862 | ) | 1,310 | ||||
Inventories | (33,160 | ) | (9,702 | ) | |||
Prepaid expenses and other current assets | (6,885 | ) | 8,031 | ||||
Accounts payable | 13,496 | 7,049 | |||||
Accrued interest expense | 24,740 | 24,571 | |||||
Other current liabilities | 39,839 | 21,251 | |||||
Other assets and liabilities | (1,057 | ) | 1,872 | ||||
Net cash provided by operating activities | 7,990 | 54,551 | |||||
Cash flows from investing activities: | |||||||
Business acquisitions, net of cash acquired | (13,867 | ) | — | ||||
Capital expenditures | (20,154 | ) | (10,005 | ) | |||
Proceeds from sale of assets | 1,208 | 2,279 | |||||
Net cash used in investing activities | (32,813 | ) | (7,726 | ) | |||
Cash flows from financing activities: | |||||||
Distributions | (9,913 | ) | (66,658 | ) | |||
Proceeds from issuance of long-term debt | 23,580 | 25,626 | |||||
Payments on long-term debt | (281 | ) | (2,261 | ) | |||
Net reductions in short-term borrowings | (5,879 | ) | (4,467 | ) | |||
Net additions to collateralized short-term borrowings | 19,000 | 10,000 | |||||
Cash paid for financing costs | (287 | ) | (1,390 | ) | |||
Net cash provided by (used in) financing activities | 26,220 | (39,150 | ) | ||||
Net change in cash and cash equivalents | 1,397 | 7,675 | |||||
Cash and cash equivalents - beginning of period | 5,701 | 4,890 | |||||
Cash and cash equivalents - end of period | $ | 7,098 | $ | 12,565 | |||
See notes to condensed consolidated financial statements. |
• | Propane operations and related equipment sales consists of the distribution of propane and related equipment and supplies. The propane distribution market is seasonal because propane is used primarily for heating in residential and commercial buildings. Ferrellgas, L.P. serves residential, industrial/commercial, portable tank exchange, agricultural, wholesale and other customers in all 50 states, the District of Columbia, and Puerto Rico. |
• | Midstream operations consists of crude oil logistics and water solutions. Crude oil logistics primarily generates income by providing crude oil transportation and logistics services on behalf of producers and end-users of crude oil. Water solutions generates income primarily through the operation of salt water disposal wells in the Eagle Ford shale region of south Texas. |
October 31, 2017 | July 31, 2017 | |||||||
Propane gas and related products | $ | 79,196 | $ | 67,049 | ||||
Crude oil | 7,921 | 724 | ||||||
Appliances, parts and supplies | 25,221 | 24,779 | ||||||
Inventories | $ | 112,338 | $ | 92,552 |
October 31, 2017 | July 31, 2017 | |||||||
Note receivable - Jamex, less current portion | $ | 30,000 | $ | 32,500 | ||||
Other | 50,559 | 41,557 | ||||||
Other assets, net | $ | 80,559 | $ | 74,057 |
October 31, 2017 | July 31, 2017 | |||||||
Accrued interest | $ | 39,477 | $ | 14,737 | ||||
Customer deposits and advances | 42,599 | 25,541 | ||||||
Other | 107,185 | 81,738 | ||||||
Other current liabilities | $ | 189,261 | $ | 122,016 |
For the three months ended October 31, | ||||||||
2017 | 2016 | |||||||
Operating expense | $ | 43,314 | $ | 41,810 | ||||
Depreciation and amortization expense | 1,112 | 1,026 | ||||||
Equipment lease expense | 6,069 | 6,666 | ||||||
Total shipping and handling expenses | $ | 50,495 | $ | 49,502 |
For the three months ended October 31, | ||||||||
2017 | 2016 | |||||||
Cash paid for: | ||||||||
Interest | $ | 6,129 | $ | 5,630 | ||||
Non-cash investing and financing activities: | ||||||||
Liabilities incurred in connection with acquisitions | $ | 1,232 | $ | — | ||||
Change in accruals for property, plant and equipment additions | $ | 140 | $ | (189 | ) |
October 31, 2017 | July 31, 2017 | |||||||
Accounts receivable pledged as collateral | $ | 137,244 | $ | 109,407 | ||||
Accounts receivable | 46,318 | 47,346 | ||||||
Note receivable - Jamex, current portion | 10,000 | 10,000 | ||||||
Other | 294 | 307 | ||||||
Less: Allowance for doubtful accounts | (2,428 | ) | (1,976 | ) | ||||
Accounts and notes receivable, net | $ | 191,428 | $ | 165,084 |
Date | Maximum leverage ratio | ||
October 31, 2017 | 7.75 | ||
January 31, 2018 | 7.75 | ||
April 30, 2018 | 7.75 | ||
July 31, 2018 & thereafter | 5.50 |
Date | Minimum consolidated interest coverage ratio | ||
October 31, 2017 | 1.75 | ||
January 31, 2018 | 1.75 | ||
April 30, 2018 | 1.75 | ||
July 31, 2018 & thereafter | 2.50 |
Date | Maximum leverage ratio | ||
October 31, 2017 | 7.75 | ||
January 31, 2018 | 7.75 | ||
April 30, 2018 | 7.75 | ||
July 31, 2018 & thereafter | 5.50 |
Date | Minimum consolidated interest coverage ratio | ||
October 31, 2017 | 1.75 | ||
January 31, 2018 | 1.75 | ||
April 30, 2018 | 1.75 | ||
July 31, 2018 & thereafter | 2.50 |
For the three months ended October 31, | ||||||||
2017 | 2016 | |||||||
Ferrellgas Partners | $ | 9,813 | $ | 66,145 | ||||
General partner | 100 | 513 | ||||||
$ | 9,913 | $ | 66,658 |
Asset (Liability) | ||||||||||||||||
Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | Total | |||||||||||||
October 31, 2017: | ||||||||||||||||
Assets: | ||||||||||||||||
Derivative financial instruments: | ||||||||||||||||
Interest rate swap agreements | $ | — | $ | 298 | $ | — | $ | 298 | ||||||||
Commodity derivatives | $ | — | $ | 35,000 | $ | — | $ | 35,000 | ||||||||
Liabilities: | ||||||||||||||||
Derivative financial instruments: | ||||||||||||||||
Interest rate swap agreements | $ | — | $ | (984 | ) | $ | — | $ | (984 | ) | ||||||
Commodity derivatives | $ | — | $ | (3,464 | ) | $ | — | $ | (3,464 | ) | ||||||
July 31, 2017: | ||||||||||||||||
Assets: | ||||||||||||||||
Derivative financial instruments: | ||||||||||||||||
Interest rate swap agreements | $ | — | $ | 583 | $ | — | $ | 583 | ||||||||
Commodity derivatives | $ | — | $ | 16,212 | $ | — | $ | 16,212 | ||||||||
Liabilities: | ||||||||||||||||
Derivative financial instruments: | ||||||||||||||||
Interest rate swap agreements | $ | — | $ | (707 | ) | $ | — | $ | (707 | ) | ||||||
Commodity derivatives | $ | — | $ | (1,258 | ) | $ | — | $ | (1,258 | ) |
October 31, 2017 | ||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||
Derivative Instrument | Location | Fair value | Location | Fair value | ||||||||
Derivatives designated as hedging instruments | ||||||||||||
Commodity derivatives-propane | Prepaid expenses and other current assets | $ | 25,938 | Other current liabilities | $ | 1,209 | ||||||
Commodity derivatives-propane | Other assets, net | 8,789 | Other liabilities | 284 | ||||||||
Interest rate swap agreements | Prepaid expenses and other current assets | 298 | Other current liabilities | 284 | ||||||||
Interest rate swap agreements | Other assets, net | — | Other liabilities | 700 | ||||||||
Derivatives not designated as hedging instruments | ||||||||||||
Commodity derivatives-crude oil | Prepaid expenses and other current assets | 273 | Other current liabilities | 1,971 | ||||||||
Total | $ | 35,298 | Total | $ | 4,448 | |||||||
July 31, 2017 | ||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||
Derivative Instrument | Location | Fair value | Location | Fair value | ||||||||
Derivatives designated as hedging instruments | ||||||||||||
Commodity derivatives | Prepaid expenses and other current assets | $ | 11,061 | Other current liabilities | $ | 415 | ||||||
Commodity derivatives | Other assets, net | 4,413 | Other liabilities | 15 | ||||||||
Interest rate swap agreements | Prepaid expenses and other current assets | 583 | Other current liabilities | 595 | ||||||||
Interest rate swap agreements | Other assets, net | — | Other liabilities | 112 | ||||||||
Derivatives not designated as hedging instruments | ||||||||||||
Commodity derivatives-crude oil | Prepaid expenses and other current assets | 738 | Other current liabilities | 828 | ||||||||
Total | $ | 16,795 | Total | $ | 1,965 |
October 31, 2017 | ||||||||||||
Assets | Liabilities | |||||||||||
Description | Location | Amount | Location | Amount | ||||||||
Margin Balances | Prepaid expenses and other current assets | $ | 3,723 | Other current liabilities | $ | 19,696 | ||||||
Other assets, net | 1,461 | Other liabilities | 5,945 | |||||||||
$ | 5,184 | $ | 25,641 |
July 31, 2017 | ||||||||||||
Assets | Liabilities | |||||||||||
Description | Location | Amount | Location | Amount | ||||||||
Margin Balances | Prepaid expenses and other current assets | $ | 1,778 | Other current liabilities | $ | 7,729 | ||||||
Other assets, net | 1,631 | Other liabilities | 3,073 | |||||||||
$ | 3,409 | $ | 10,802 |
Amount of Gain Recognized on Derivative | Amount of Interest Expense Recognized on Fixed-Rated Debt (Related Hedged Item) | |||||||||||||||||
Derivative Instrument | Location of Amounts Recognized on Derivative | For the three months ended October 31, | For the three months ended October 31, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||
Interest rate swap agreements | Interest expense | $ | 138 | $ | 420 | $ | (2,275 | ) | $ | (2,275 | ) | |||||||
For the three months ended October 31, 2017 | ||||||||||||||
Derivative Instrument | Amount of Gain (Loss) Recognized in AOCI | Location of Gain (Loss) Reclassified from AOCI into Income | Amount of Gain (Loss) Reclassified from AOCI into Income | |||||||||||
Effective portion | Ineffective portion | |||||||||||||
Commodity derivatives | $ | 22,323 | Cost of sales-propane and other gas liquids sales | $ | 4,132 | $ | — | |||||||
Interest rate swap agreements | 126 | Interest expense | (183 | ) | — | |||||||||
$ | 22,449 | $ | 3,949 | $ | — | |||||||||
For the three months ended October 31, 2016 | ||||||||||||||
Derivative Instrument | Amount of Gain (Loss) Recognized in AOCI | Location of Gain (Loss) Reclassified from AOCI into Income | Amount of Gain (Loss) Reclassified from AOCI into Income | |||||||||||
Effective portion | Ineffective portion | |||||||||||||
Commodity derivatives | $ | 4,873 | Cost of sales-propane and other gas liquids sales | $ | (3,596 | ) | $ | — | ||||||
Interest rate swap agreements | 265 | Interest expense | (642 | ) | — | |||||||||
$ | 5,138 | $ | (4,238 | ) | $ | — | ||||||||
For the three months ended October 31, 2017 | ||||||
Derivatives Not Designated as Hedging Instruments | Amount of Gain (Loss) Recognized in Income | Location of Gain (Loss) Recognized in Income | ||||
Commodity derivatives - crude oil | $ | (1,390 | ) | Cost of sales - midstream operations | ||
For the three months ended October 31, 2016 | ||||||
Derivatives Not Designated as Hedging Instruments | Amount of Gain (Loss) Recognized in Income | Location of Gain (Loss) Recognized in Income | ||||
Commodity derivatives - crude oil | $ | (1,241 | ) | Cost of sales - midstream operations | ||
Commodity derivatives - vehicle fuel | $ | 1,027 | Operating expense | |||
For the three months ended October 31, | ||||||||
Gains and losses on derivatives included in AOCI | 2017 | 2016 | ||||||
Beginning balance | $ | 14,648 | $ | (9,815 | ) | |||
Change in value of risk management commodity derivatives | 22,323 | 4,873 | ||||||
Reclassification of (gains) and losses on commodity hedges to cost of sales - propane and other gas liquids sales, net | (4,132 | ) | 3,596 | |||||
Change in value of risk management interest rate derivatives | 126 | 265 | ||||||
Reclassification of (gains) and losses on interest rate hedges to interest expense | 183 | 642 | ||||||
Ending balance | $ | 33,148 | $ | (439 | ) |
For the three months ended October 31, | ||||||||
2017 | 2016 | |||||||
Operating expense | $ | 57,351 | $ | 55,714 | ||||
General and administrative expense | $ | 7,508 | $ | 8,583 |
Three months ended October 31, 2017 | ||||||||||||||||
Propane operations and related equipment sales | Midstream operations | Corporate | Total | |||||||||||||
Segment revenues | $ | 333,895 | $ | 120,760 | $ | — | $ | 454,655 | ||||||||
Direct costs (1) | 303,329 | 113,901 | 11,209 | 428,439 | ||||||||||||
Adjusted EBITDA | $ | 30,566 | $ | 6,859 | $ | (11,209 | ) | $ | 26,216 | |||||||
Three months ended October 31, 2016 | ||||||||||||||||
Propane operations and related equipment sales | Midstream operations | Corporate | Total | |||||||||||||
Segment revenues | $ | 271,498 | $ | 108,044 | $ | — | $ | 379,542 | ||||||||
Direct costs (1) | 237,014 | 102,773 | 10,736 | 350,523 | ||||||||||||
Adjusted EBITDA | $ | 34,484 | $ | 5,271 | $ | (10,736 | ) | $ | 29,019 | |||||||
Three months ended October 31, | ||||||||
2017 | 2016 | |||||||
Net loss | $ | (39,699 | ) | $ | (39,440 | ) | ||
Income tax expense (benefit) | 371 | (591 | ) | |||||
Interest expense | 32,196 | 31,398 | ||||||
Depreciation and amortization expense | 25,732 | 26,202 | ||||||
EBITDA | 18,600 | 17,569 | ||||||
Non-cash employee stock ownership plan compensation charge | 3,962 | 3,754 | ||||||
Non-cash stock-based compensation charge | — | 1,881 | ||||||
Loss on asset sales and disposal | 895 | 6,423 | ||||||
Other income, net | (511 | ) | (508 | ) | ||||
Severance costs | 1,663 | 1,469 | ||||||
Unrealized (non-cash) loss (gain) on changes in fair value of derivatives not designated as hedging instruments | 1,607 | (1,569 | ) | |||||
Adjusted EBITDA | $ | 26,216 | $ | 29,019 |
Assets | October 31, 2017 | July 31, 2017 | ||||||
Propane operations and related equipment sales | $ | 1,292,686 | $ | 1,194,905 | ||||
Midstream operations | 397,653 | 399,356 | ||||||
Corporate and unallocated | 14,600 | 15,687 | ||||||
Total consolidated assets | $ | 1,704,939 | $ | 1,609,948 |
Three months ended October 31, 2017 | ||||||||||||||||
Propane operations and related equipment sales | Midstream operations | Corporate | Total | |||||||||||||
Capital expenditures: | ||||||||||||||||
Maintenance | $ | 8,351 | $ | 3 | $ | 239 | $ | 8,593 | ||||||||
Growth | 9,688 | 664 | — | 10,352 | ||||||||||||
Total | $ | 18,039 | $ | 667 | $ | 239 | $ | 18,945 | ||||||||
Three months ended October 31, 2016 | ||||||||||||||||
Propane operations and related equipment sales | Midstream operations | Corporate | Total | |||||||||||||
Capital expenditures: | ||||||||||||||||
Maintenance | $ | 1,831 | $ | 127 | $ | 1,306 | $ | 3,264 | ||||||||
Growth | 5,414 | — | — | 5,414 | ||||||||||||
Total | $ | 7,245 | $ | 127 | $ | 1,306 | $ | 8,678 |
FERRELLGAS, L.P. AND SUBSIDIARIES | |||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
As of October 31, 2017 | |||||||||||||||||||||||
Ferrellgas, L.P. (Parent and Co-Issuer) | Ferrellgas Finance Corp. (Co-Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 6,852 | $ | 1 | $ | 245 | $ | — | $ | — | $ | 7,098 | |||||||||||
Accounts and notes receivable | (2,343 | ) | — | 60,692 | 133,079 | — | 191,428 | ||||||||||||||||
Intercompany receivables | 40,190 | — | — | — | (40,190 | ) | — | ||||||||||||||||
Inventories | 90,812 | — | 21,526 | — | — | 112,338 | |||||||||||||||||
Prepaid expenses and other current assets | 61,140 | — | 6,909 | 6 | — | 68,055 | |||||||||||||||||
Total current assets | 196,651 | 1 | 89,372 | 133,085 | (40,190 | ) | 378,919 | ||||||||||||||||
Property, plant and equipment, net | 547,489 | — | 191,240 | — | — | 738,729 | |||||||||||||||||
Goodwill | 246,098 | — | 10,005 | — | — | 256,103 | |||||||||||||||||
Intangible assets, net | 131,322 | — | 119,307 | — | — | 250,629 | |||||||||||||||||
Intercompany receivables | 450,000 | — | — | — | (450,000 | ) | — | ||||||||||||||||
Investments in consolidated subsidiaries | (48,341 | ) | — | — | — | 48,341 | — | ||||||||||||||||
Other assets, net | 39,918 | — | 40,136 | 505 | — | 80,559 | |||||||||||||||||
Total assets | $ | 1,563,137 | $ | 1 | $ | 450,060 | $ | 133,590 | $ | (441,849 | ) | $ | 1,704,939 | ||||||||||
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Accounts payable | $ | 56,610 | $ | — | $ | 42,167 | $ | 421 | $ | — | $ | 99,198 | |||||||||||
Short-term borrowings | 263,200 | — | — | — | — | 263,200 | |||||||||||||||||
Collateralized note payable | — | — | — | 88,000 | — | 88,000 | |||||||||||||||||
Intercompany payables | — | — | 42,952 | (2,762 | ) | (40,190 | ) | — | |||||||||||||||
Other current liabilities | 182,794 | — | 6,238 | 229 | — | 189,261 | |||||||||||||||||
Total current liabilities | 502,604 | — | 91,357 | 85,888 | (40,190 | ) | 639,659 | ||||||||||||||||
Long-term debt | 1,464,344 | — | 450,085 | — | (450,000 | ) | 1,464,429 | ||||||||||||||||
Other liabilities | 30,137 | — | 4,662 | — | — | 34,799 | |||||||||||||||||
Contingencies and commitments | |||||||||||||||||||||||
Partners' capital (deficit): | |||||||||||||||||||||||
Partners' equity | (467,212 | ) | 1 | (96,044 | ) | 47,702 | 48,341 | (467,212 | ) | ||||||||||||||
Accumulated other comprehensive income | 33,264 | — | — | — | — | 33,264 | |||||||||||||||||
Total partners' capital (deficit) | (433,948 | ) | 1 | (96,044 | ) | 47,702 | 48,341 | (433,948 | ) | ||||||||||||||
Total liabilities and partners' capital (deficit) | $ | 1,563,137 | $ | 1 | $ | 450,060 | $ | 133,590 | $ | (441,849 | ) | $ | 1,704,939 | ||||||||||
FERRELLGAS, L.P. AND SUBSIDIARIES | |||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
As of July 31, 2017 | |||||||||||||||||||||||
Ferrellgas, L.P. (Parent and Co-Issuer) | Ferrellgas Finance Corp. (Co-Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 5,327 | $ | 1 | $ | 373 | $ | — | $ | — | $ | 5,701 | |||||||||||
Accounts and notes receivable | (3,132 | ) | — | 58,618 | 109,598 | — | 165,084 | ||||||||||||||||
Intercompany receivables | 39,877 | — | — | — | (39,877 | ) | — | ||||||||||||||||
Inventories | 78,963 | — | 13,589 | — | — | 92,552 | |||||||||||||||||
Prepaid expenses and other current assets | 26,106 | — | 7,314 | 6 | — | 33,426 | |||||||||||||||||
Total current assets | 147,141 | 1 | 79,894 | 109,604 | (39,877 | ) | 296,763 | ||||||||||||||||
Property, plant and equipment, net | 537,582 | — | 194,341 | — | — | 731,923 | |||||||||||||||||
Goodwill | 246,098 | — | 10,005 | — | — | 256,103 | |||||||||||||||||
Intangible assets, net | 128,209 | — | 122,893 | — | — | 251,102 | |||||||||||||||||
Intercompany receivables | 450,000 | — | — | — | (450,000 | ) | — | ||||||||||||||||
Investments in consolidated subsidiaries | (53,915 | ) | — | — | — | 53,915 | — | ||||||||||||||||
Other assets, net | 35,862 | — | 37,618 | 577 | — | 74,057 | |||||||||||||||||
Total assets | $ | 1,490,977 | $ | 1 | $ | 444,751 | $ | 110,181 | $ | (435,962 | ) | $ | 1,609,948 | ||||||||||
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Accounts payable | $ | 44,026 | $ | — | $ | 41,345 | $ | 190 | $ | — | $ | 85,561 | |||||||||||
Short-term borrowings | 59,781 | — | — | — | — | 59,781 | |||||||||||||||||
Collateralized note payable | — | — | — | 69,000 | — | 69,000 | |||||||||||||||||
Intercompany payables | — | — | 41,645 | (1,768 | ) | (39,877 | ) | — | |||||||||||||||
Other current liabilities | 118,039 | — | 3,776 | 201 | — | 122,016 | |||||||||||||||||
Total current liabilities | 221,846 | — | 86,766 | 67,623 | (39,877 | ) | 336,358 | ||||||||||||||||
Long-term debt | 1,649,139 | — | 450,131 | — | (450,000 | ) | 1,649,270 | ||||||||||||||||
Other liabilities | 26,790 | — | 4,300 | 28 | — | 31,118 | |||||||||||||||||
Contingencies and commitments | |||||||||||||||||||||||
Partners' capital (deficit): | |||||||||||||||||||||||
Partners' equity | (421,562 | ) | 1 | (96,446 | ) | 42,530 | 53,915 | (421,562 | ) | ||||||||||||||
Accumulated other comprehensive income | 14,764 | — | — | — | — | 14,764 | |||||||||||||||||
Total partners' capital (deficit) | (406,798 | ) | 1 | (96,446 | ) | 42,530 | 53,915 | (406,798 | ) | ||||||||||||||
Total liabilities and partners' capital (deficit) | $ | 1,490,977 | $ | 1 | $ | 444,751 | $ | 110,181 | $ | (435,962 | ) | $ | 1,609,948 | ||||||||||
FERRELLGAS, L.P. AND SUBSIDIARIES | |||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
For the three months ended October 31, 2017 | |||||||||||||||||||||||
Ferrellgas, L.P. (Parent and Co-Issuer) | Ferrellgas Finance Corp. (Co-Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Propane and other gas liquids sales | $ | 302,117 | $ | — | $ | 641 | $ | — | $ | — | $ | 302,758 | |||||||||||
Midstream operations | — | — | 120,760 | — | — | 120,760 | |||||||||||||||||
Other | 16,677 | — | 14,460 | — | — | 31,137 | |||||||||||||||||
Total revenues | 318,794 | — | 135,861 | — | — | 454,655 | |||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Cost of sales - propane and other gas liquids sales | 178,819 | — | 696 | — | — | 179,515 | |||||||||||||||||
Cost of sales - midstream operations | — | — | 108,125 | — | — | 108,125 | |||||||||||||||||
Cost of sales - other | 2,709 | — | 10,993 | — | — | 13,702 | |||||||||||||||||
Operating expense | 101,232 | — | 9,263 | 1,182 | (1,215 | ) | 110,462 | ||||||||||||||||
Depreciation and amortization expense | 18,347 | — | 7,313 | 72 | — | 25,732 | |||||||||||||||||
General and administrative expense | 10,755 | 2 | 2,407 | — | — | 13,164 | |||||||||||||||||
Equipment lease expense | 6,648 | — | 93 | — | — | 6,741 | |||||||||||||||||
Non-cash employee stock ownership plan compensation charge | 3,962 | — | — | — | — | 3,962 | |||||||||||||||||
Loss on asset sales and disposal | 908 | — | (13 | ) | — | — | 895 | ||||||||||||||||
Operating income (loss) | (4,586 | ) | (2 | ) | (3,016 | ) | (1,254 | ) | 1,215 | (7,643 | ) | ||||||||||||
Interest expense | (20,394 | ) | — | (11,185 | ) | (617 | ) | — | (32,196 | ) | |||||||||||||
Other income (expense), net | 215 | — | 296 | 1,215 | (1,215 | ) | 511 | ||||||||||||||||
Loss before income taxes | (24,765 | ) | (2 | ) | (13,905 | ) | (656 | ) | — | (39,328 | ) | ||||||||||||
Income tax (benefit) expense | (10 | ) | — | 381 | — | — | 371 | ||||||||||||||||
Equity in earnings (loss) of subsidiary | (14,944 | ) | — | — | — | 14,944 | — | ||||||||||||||||
Net earnings (loss) | (39,699 | ) | (2 | ) | (14,286 | ) | (656 | ) | 14,944 | (39,699 | ) | ||||||||||||
Other comprehensive loss | 18,500 | — | — | — | — | 18,500 | |||||||||||||||||
Comprehensive income (loss) | $ | (21,199 | ) | $ | (2 | ) | $ | (14,286 | ) | $ | (656 | ) | $ | 14,944 | $ | (21,199 | ) | ||||||
FERRELLGAS, L.P. AND SUBSIDIARIES | |||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
For the three months ended October 31, 2016 | |||||||||||||||||||||||
Ferrellgas, L.P. (Parent and Co-Issuer) | Ferrellgas Finance Corp. (Co-Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Propane and other gas liquids sales | $ | 242,399 | $ | — | $ | — | $ | — | $ | — | $ | 242,399 | |||||||||||
Midstream operations | — | — | 108,044 | — | — | 108,044 | |||||||||||||||||
Other | 17,326 | — | 11,773 | — | — | 29,099 | |||||||||||||||||
Total revenues | 259,725 | — | 119,817 | — | — | 379,542 | |||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Cost of sales - propane and other gas liquids sales | 119,212 | — | — | — | — | 119,212 | |||||||||||||||||
Cost of sales - midstream operations | — | — | 94,642 | — | — | 94,642 | |||||||||||||||||
Cost of sales - other | 2,430 | — | 9,316 | — | — | 11,746 | |||||||||||||||||
Operating expense | 97,655 | — | 10,246 | (2,105 | ) | (710 | ) | 105,086 | |||||||||||||||
Depreciation and amortization expense | 18,277 | — | 7,872 | 53 | — | 26,202 | |||||||||||||||||
General and administrative expense | 12,863 | 2 | 1,404 | — | — | 14,269 | |||||||||||||||||
Equipment lease expense | 7,210 | — | 139 | — | — | 7,349 | |||||||||||||||||
Non-cash employee stock ownership plan compensation charge | 3,754 | — | — | — | — | 3,754 | |||||||||||||||||
Loss on asset sales and disposal | 1,447 | — | 4,976 | — | — | 6,423 | |||||||||||||||||
Operating income (loss) | (3,123 | ) | (2 | ) | (8,778 | ) | 2,052 | 710 | (9,141 | ) | |||||||||||||
Interest expense | (20,352 | ) | — | (10,673 | ) | (370 | ) | (3 | ) | (31,398 | ) | ||||||||||||
Other income (expense), net | (47 | ) | — | 555 | 707 | (707 | ) | 508 | |||||||||||||||
Earnings (loss) before income taxes | (23,522 | ) | (2 | ) | (18,896 | ) | 2,389 | — | (40,031 | ) | |||||||||||||
Income tax benefit | (29 | ) | — | (562 | ) | — | — | (591 | ) | ||||||||||||||
Equity in earnings (loss) of subsidiary | (15,947 | ) | — | — | — | 15,947 | — | ||||||||||||||||
Net earnings (loss) | (39,440 | ) | (2 | ) | (18,334 | ) | 2,389 | 15,947 | (39,440 | ) | |||||||||||||
Other comprehensive income | 9,376 | — | — | — | — | 9,376 | |||||||||||||||||
Comprehensive income (loss) | $ | (30,064 | ) | $ | (2 | ) | $ | (18,334 | ) | $ | 2,389 | $ | 15,947 | $ | (30,064 | ) | |||||||
FERRELLGAS, L.P. AND SUBSIDIARIES | |||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
For the three months ended October 31, 2017 | |||||||||||||||||||||||
Ferrellgas, L.P. (Parent and Co-Issuer) | Ferrellgas Finance Corp. (Co-Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 23,305 | $ | (2 | ) | $ | (22,294 | ) | $ | 25,981 | $ | (19,000 | ) | $ | 7,990 | ||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Business acquisitions, net of cash acquired | (13,867 | ) | — | — | — | — | (13,867 | ) | |||||||||||||||
Capital expenditures | (19,429 | ) | — | (725 | ) | — | — | (20,154 | ) | ||||||||||||||
Proceeds from sale of assets | 1,208 | — | — | — | — | 1,208 | |||||||||||||||||
Cash collected for purchase of interest in accounts receivable | — | — | — | 203,291 | (203,291 | ) | — | ||||||||||||||||
Cash remitted to Ferrellgas, L.P. for accounts receivable | — | — | — | (222,291 | ) | 222,291 | — | ||||||||||||||||
Net changes in advances with consolidated entities | 3,088 | — | — | — | (3,088 | ) | — | ||||||||||||||||
Net cash used in investing activities | (29,000 | ) | — | (725 | ) | (19,000 | ) | 15,912 | (32,813 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Distributions | (9,913 | ) | — | — | — | — | (9,913 | ) | |||||||||||||||
Proceeds from issuance of long-term debt | 23,580 | — | — | — | — | 23,580 | |||||||||||||||||
Payments on long-term debt | (281 | ) | — | — | — | — | (281 | ) | |||||||||||||||
Net reductions in short-term borrowings | (5,879 | ) | — | — | — | — | (5,879 | ) | |||||||||||||||
Net additions to collateralized short-term borrowings | — | — | — | 19,000 | — | 19,000 | |||||||||||||||||
Net changes in advances with parent | — | 2 | 22,891 | (25,981 | ) | 3,088 | — | ||||||||||||||||
Cash paid for financing costs | (287 | ) | — | — | — | — | (287 | ) | |||||||||||||||
Net cash provided by (used in) financing activities | 7,220 | 2 | 22,891 | (6,981 | ) | 3,088 | 26,220 | ||||||||||||||||
Increase (decrease) in cash and cash equivalents | 1,525 | — | (128 | ) | — | — | 1,397 | ||||||||||||||||
Cash and cash equivalents - beginning of period | 5,327 | 1 | 373 | — | — | 5,701 | |||||||||||||||||
Cash and cash equivalents - end of period | $ | 6,852 | $ | 1 | $ | 245 | $ | — | $ | — | $ | 7,098 | |||||||||||
FERRELLGAS, L.P. AND SUBSIDIARIES | |||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
For the three months ended October 31, 2016 | |||||||||||||||||||||||
Ferrellgas, L.P. (Parent and Co-Issuer) | Ferrellgas Finance Corp. (Co-Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 79,220 | $ | (2 | ) | $ | (15,354 | ) | $ | 687 | $ | (10,000 | ) | $ | 54,551 | ||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Capital expenditures | (10,000 | ) | — | (5 | ) | — | — | (10,005 | ) | ||||||||||||||
Proceeds from sale of assets | 2,279 | — | — | — | — | 2,279 | |||||||||||||||||
Cash collected for purchase of interest in accounts receivable | — | — | — | 183,939 | (183,939 | ) | — | ||||||||||||||||
Cash remitted to Ferrellgas, L.P. for accounts receivable | — | — | — | (193,939 | ) | 193,939 | — | ||||||||||||||||
Net changes in advances with consolidated entities | (14,453 | ) | — | — | — | 14,453 | — | ||||||||||||||||
Net cash provided by (used in) investing activities | (22,174 | ) | — | (5 | ) | (10,000 | ) | 24,453 | (7,726 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Distributions | (66,658 | ) | — | — | — | — | (66,658 | ) | |||||||||||||||
Proceeds from issuance of long-term debt | 25,626 | — | — | — | — | 25,626 | |||||||||||||||||
Payments on long-term debt | (2,261 | ) | — | — | — | — | (2,261 | ) | |||||||||||||||
Net reductions in short-term borrowings | (4,467 | ) | — | — | — | — | (4,467 | ) | |||||||||||||||
Net additions to collateralized short-term borrowings | — | — | — | 10,000 | — | 10,000 | |||||||||||||||||
Net changes in advances with parent | — | 2 | 15,138 | (687 | ) | (14,453 | ) | — | |||||||||||||||
Cash paid for financing costs | (1,390 | ) | — | — | — | — | (1,390 | ) | |||||||||||||||
Net cash provided by (used in) financing activities | (49,150 | ) | 2 | 15,138 | 9,313 | (14,453 | ) | (39,150 | ) | ||||||||||||||
Increase (decrease) in cash and cash equivalents | 7,896 | — | (221 | ) | — | — | 7,675 | ||||||||||||||||
Cash and cash equivalents - beginning of period | 4,472 | 1 | 417 | — | — | 4,890 | |||||||||||||||||
Cash and cash equivalents - end of period | $ | 12,368 | $ | 1 | $ | 196 | $ | — | $ | — | $ | 12,565 | |||||||||||
FERRELLGAS FINANCE CORP. | |||||||
(a wholly-owned subsidiary of Ferrellgas, L.P.) | |||||||
CONDENSED BALANCE SHEETS | |||||||
(unaudited) | |||||||
October 31, 2017 | July 31, 2017 | ||||||
ASSETS | |||||||
Cash | $ | 1,100 | $ | 1,100 | |||
Other current assets | — | 1,500 | |||||
Total assets | $ | 1,100 | $ | 2,600 | |||
Contingencies and commitments (Note B) | |||||||
STOCKHOLDER'S EQUITY | |||||||
Common stock, $1.00 par value; 2,000 shares authorized; 1,000 shares issued and outstanding | $ | 1,000 | $ | 1,000 | |||
Additional paid in capital | 67,386 | 67,336 | |||||
Accumulated deficit | (67,286 | ) | (65,736 | ) | |||
Total stockholder's equity | $ | 1,100 | $ | 2,600 | |||
See notes to condensed financial statements. |
FERRELLGAS FINANCE CORP. | ||||||||
(a wholly-owned subsidiary of Ferrellgas, L.P.) | ||||||||
CONDENSED STATEMENTS OF OPERATIONS | ||||||||
(unaudited) | ||||||||
For the three months ended October 31, | ||||||||
2017 | 2016 | |||||||
General and administrative expense | $ | 1,550 | $ | 1,550 | ||||
Net loss | $ | (1,550 | ) | $ | (1,550 | ) | ||
See notes to condensed financial statements. |
FERRELLGAS FINANCE CORP. | |||||||
(a wholly-owned subsidiary of Ferrellgas, L.P.) | |||||||
CONDENSED STATEMENTS OF CASH FLOWS | |||||||
(unaudited) | |||||||
For the three months ended October 31, | |||||||
2017 | 2016 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (1,550 | ) | $ | (1,550 | ) | |
Changes in operating assets and liabilities: | |||||||
Other current assets | 1,500 | 1,500 | |||||
Cash used in operating activities | (50 | ) | (50 | ) | |||
Cash flows from financing activities: | |||||||
Capital contribution | 50 | 50 | |||||
Cash provided by financing activities | 50 | 50 | |||||
Net change in cash | — | — | |||||
Cash - beginning of period | 1,100 | 1,100 | |||||
Cash - end of period | $ | 1,100 | $ | 1,100 | |||
See notes to condensed financial statements. |
ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | “us,” “we,” “our,” “ours,” “consolidated,” or "Ferrellgas" are references exclusively to Ferrellgas Partners, L.P. together with its consolidated subsidiaries, including Ferrellgas Partners Finance Corp., Ferrellgas, L.P. and Ferrellgas Finance Corp., except when used in connection with “common units,” in which case these terms refer to Ferrellgas Partners, L.P. without its consolidated subsidiaries; |
• | “Ferrellgas Partners” refers to Ferrellgas Partners, L.P. itself, without its consolidated subsidiaries; |
• | the “operating partnership” refers to Ferrellgas, L.P., together with its consolidated subsidiaries, including Ferrellgas Finance Corp.; |
• | our “general partner” refers to Ferrellgas, Inc.; |
• | “Ferrell Companies” refers to Ferrell Companies, Inc., the sole shareholder of our general partner; |
• | “unitholders” refers to holders of common units of Ferrellgas Partners; |
• | “retail sales” refers to Propane and other gas liquid sales: Retail - Sales to End Users or the volume of propane sold primarily to our residential, industrial/commercial and agricultural customers; |
• | “wholesale sales” refers to Propane and other gas liquid sales: Wholesale - Sales to Resellers or the volume of propane sold primarily to our portable tank exchange customers and bulk propane sold to wholesale customers; |
• | “other gas sales” refers to Propane and other gas liquid sales: Other Gas Sales or the volume of bulk propane sold to other third party propane distributors or marketers and the volume of refined fuel sold; |
• | “propane sales volume” refers to the volume of propane sold to our retail sales and wholesale sales customers; |
• | “water solutions revenues” refers to fees charged for the processing and disposal of salt water as well as the sale of skimming oil; |
• | "crude oil logistics revenues" refers to fees charged for crude oil transportation and logistics services on behalf of producers and end-users of crude oil; |
• | "crude oil sales" refers to crude oil purchased and sold in connection with crude oil transportation and logistics services on behalf of producers and end-users of crude oil; |
• | "crude oil hauled" refers to the crude oil volume in barrels transported through our operation of a fleet of trucks, tank trailers, rail cars and a barge; |
• | "Jamex" refers to Jamex Marketing, LLC; |
• | “salt water volume” refers to the number of barrels of salt water processed at our disposal sites; |
• | “skimming oil” refers to the oil collected from the process used at our salt water disposal wells through a combination of gravity and chemicals to separate crude oil that is dissolved in the salt water; |
• | “Notes” refers to the notes of the condensed consolidated financial statements of Ferrellgas Partners or the operating partnership, as applicable; |
• | "MBbls/d" refers to one thousand barrels per day; and |
• | because Ferrellgas Partners has outstanding $357.0 million in aggregate principal amount of 8.625% senior notes due fiscal 2020, the two partnerships incur different amounts of interest expense on their outstanding indebtedness; see the statements of operations in their respective condensed consolidated financial statements; and |
• | Ferrellgas Partners repurchased common units in fiscal 2017. |
• | Ferrellgas' ability to refinance or replace its secured credit facility; |
• | the effect of weather conditions on the demand for propane; |
• | the prices of wholesale propane, motor fuel and crude oil; |
• | disruptions to the supply of propane; |
• | competition from other industry participants and other energy sources; |
• | energy efficiency and technology advances; |
• | the termination or non-renewal of certain arrangements or agreements; |
• | adverse changes in our relationships with our national tank exchange customers; |
• | significant delays in the collection of, or uncollectibility of, accounts or notes receivable; |
• | customer, counterparty, supplier or vendor defaults; |
• | changes in demand for, and production of, hydrocarbon products; |
• | capacity overbuild of midstream energy infrastructure in our midstream operational areas; |
• | disruptions to railroad operations on the railroads we use; |
• | increased trucking and rail regulations; |
• | cost increases that exceed contractual rate increases for our logistics services; |
• | inherent operating and litigation risks in gathering, transporting, handling and storing propane and crude oil; |
• | our inability to complete acquisitions or to successfully integrate acquired operations; |
• | costs of complying with, or liabilities imposed under, environmental, health and safety laws; |
• | the impact of pending and future legal proceedings; |
• | the interruption, disruption, failure or malfunction of our information technology systems including due to cyber attack; |
• | the impact of changes in tax law that could adversely affect the tax treatment of Ferrellgas Partners for federal income tax purposes; |
• | economic and political instability, particularly in areas of the world tied to the energy industry; and |
• | disruptions in the capital and credit markets. |
Date | Maximum leverage ratio | ||
October 31, 2017 | 7.75 | ||
January 31, 2018 | 7.75 | ||
April 30, 2018 | 7.75 | ||
July 31, 2018 & thereafter | 5.50 |
Date | Minimum consolidated interest coverage ratio | ||
October 31, 2017 | 1.75 | ||
January 31, 2018 | 1.75 | ||
April 30, 2018 | 1.75 | ||
July 31, 2018 & thereafter | 2.50 |
Three months ended October 31, | ||||||||
(amounts in thousands) | 2017 | 2016 | ||||||
Total revenues | $ | 454,655 | $ | 379,542 | ||||
Total cost of sales | 301,342 | 225,600 | ||||||
Operating expense | 110,462 | 105,086 | ||||||
Depreciation and amortization expense | 25,732 | 26,202 | ||||||
General and administrative expense | 13,164 | 14,269 | ||||||
Equipment lease expense | 6,741 | 7,349 | ||||||
Non-cash employment stock ownership plan compensation charge | 3,962 | 3,754 | ||||||
Loss on asset sales and disposal | 895 | 6,423 | ||||||
Operating loss | (7,643 | ) | (9,141 | ) | ||||
Interest expense | (40,807 | ) | (35,428 | ) | ||||
Other income, net | 511 | 508 | ||||||
Loss before income taxes | (47,939 | ) | (44,061 | ) | ||||
Income tax expense (benefit) | 377 | (590 | ) | |||||
Net loss | (48,316 | ) | (43,471 | ) | ||||
Net loss attributable to noncontrolling interest | (401 | ) | (398 | ) | ||||
Net loss attributable to Ferrellgas Partners, L.P. | (47,915 | ) | (43,073 | ) | ||||
Less: General partner's interest in net loss | (479 | ) | (431 | ) | ||||
Common unitholders' interest in net loss | $ | (47,436 | ) | $ | (42,642 | ) |
Three months ended October 31, | ||||||||
(amounts in thousands) | 2017 | 2016 | ||||||
Net loss attributable to Ferrellgas Partners, L.P. | $ | (47,915 | ) | $ | (43,073 | ) | ||
Income tax expense (benefit) | 377 | (590 | ) | |||||
Interest expense | 40,807 | 35,428 | ||||||
Depreciation and amortization expense | 25,732 | 26,202 | ||||||
EBITDA | 19,001 | 17,967 | ||||||
Non-cash employee stock ownership plan compensation charge | 3,962 | 3,754 | ||||||
Non-cash stock-based compensation charge | — | 1,881 | ||||||
Loss on asset sales and disposals | 895 | 6,423 | ||||||
Other income, net | (511 | ) | (508 | ) | ||||
Severance costs | 1,663 | 1,469 | ||||||
Unrealized (non-cash) loss (gain) on changes in fair value of derivatives not designated as hedging instruments | 1,607 | (1,569 | ) | |||||
Net loss attributable to noncontrolling interest | (401 | ) | (398 | ) | ||||
Adjusted EBITDA | 26,216 | 29,019 | ||||||
Net cash interest expense (a) | (38,057 | ) | (33,618 | ) | ||||
Maintenance capital expenditures (b) | (8,704 | ) | (3,322 | ) | ||||
Cash paid for taxes | (6 | ) | (1 | ) | ||||
Proceeds from asset sales | 1,208 | 1,720 | ||||||
Distributable cash flow attributable to equity investors | (19,343 | ) | (6,202 | ) | ||||
Distributable cash flow attributable to general partner and non-controlling interest | (387 | ) | (124 | ) | ||||
Distributable cash flow attributable to common unitholders | (18,956 | ) | (6,078 | ) | ||||
Less: Distributions paid to common unitholders | 9,715 | 49,791 | ||||||
Distributable cash flow shortage (c) | $ | (28,671 | ) | $ | (55,869 | ) |
(a) | 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. |
(b) | Maintenance capital expenditures include capitalized expenditures for betterment and replacement of property, plant and equipment. |
(c) | Distributable cash flow excess is retained to establish reserves for future distributions, reduce debt, fund capital expenditures and for other partnership purposes. Distributable cash flow shortages are funded from previously established reserves, cash on hand or borrowings under our secured credit facility or accounts receivable securitization facility. |
(amounts in thousands) | |||||||||||||||
Three months ended October 31, | 2017 | 2016 | Increase (Decrease) | ||||||||||||
Propane sales volumes (gallons): | |||||||||||||||
Retail - Sales to End Users | 119,294 | 111,188 | 8,106 | 7 | % | ||||||||||
Wholesale - Sales to Resellers | 53,429 | 51,990 | 1,439 | 3 | % | ||||||||||
172,723 | 163,178 | 9,545 | 6 | % | |||||||||||
Revenues - | |||||||||||||||
Propane and other gas liquids sales: | |||||||||||||||
Retail - Sales to End Users | $ | 183,794 | $ | 148,617 | $ | 35,177 | 24 | % | |||||||
Wholesale - Sales to Resellers | 98,429 | 84,219 | 14,210 | 17 | % | ||||||||||
Other Gas Sales (a) | 20,535 | 9,563 | 10,972 | 115 | % | ||||||||||
Other (b) | 31,137 | 29,099 | 2,038 | 7 | % | ||||||||||
Propane and related equipment revenues | $ | 333,895 | $ | 271,498 | $ | 62,397 | 23 | % | |||||||
Gross Margin - | |||||||||||||||
Propane and other gas liquids sales: (c) | |||||||||||||||
Retail - Sales to End Users (a) | $ | 78,431 | $ | 81,385 | $ | (2,954 | ) | (4 | )% | ||||||
Wholesale - Sales to Resellers (a) | 44,812 | 41,802 | 3,010 | 7 | % | ||||||||||
Other (b) | 17,435 | 17,353 | 82 | — | % | ||||||||||
Propane and related equipment gross margin | 140,678 | 140,540 | 138 | — | % | ||||||||||
Operating, general and administrative expense (d) | 104,265 | 97,859 | 6,406 | 7 | % | ||||||||||
Equipment lease expense | 6,205 | 6,573 | (368 | ) | (6 | )% | |||||||||
Operating income | 11,212 | 16,528 | (5,316 | ) | (32 | )% | |||||||||
Depreciation and amortization expense | 18,088 | 18,133 | (45 | ) | — | % | |||||||||
Loss on asset sales and disposals | 908 | 1,447 | (539 | ) | (37 | )% | |||||||||
Severance costs | 358 | 253 | 105 | 42 | % | ||||||||||
Unrealized (non-cash) gains on changes in fair value of derivatives not designated as hedging instruments | — | (1,877 | ) | 1,877 | 100 | % | |||||||||
Adjusted EBITDA | $ | 30,566 | $ | 34,484 | $ | (3,918 | ) | (11 | )% |
(amounts in thousands) | |||||||||||||||
Three months ended October 31, | 2017 | 2016 | Increase (Decrease) | ||||||||||||
Volumes (barrels): | |||||||||||||||
Crude oil hauled | 12,150 | 11,264 | 886 | 8 | % | ||||||||||
Crude oil sold | 1,829 | 1,792 | 37 | 2 | % | ||||||||||
Salt water volume processed | 4,940 | 3,703 | 1,237 | 33 | % | ||||||||||
Revenues - | |||||||||||||||
Crude oil and other logistics | $ | 17,341 | $ | 21,130 | $ | (3,789 | ) | (18 | )% | ||||||
Crude oil sales | 99,019 | 84,687 | 14,332 | 17 | % | ||||||||||
Other | 4,400 | 2,227 | 2,173 | 98 | % | ||||||||||
$ | 120,760 | $ | 108,044 | $ | 12,716 | 12 | % | ||||||||
Gross margin - (a) | |||||||||||||||
Crude oil and other logistics | $ | 10,956 | $ | 7,165 | $ | 3,791 | 53 | % | |||||||
Crude oil sales | 649 | 5,403 | (4,754 | ) | (88 | )% | |||||||||
Other | 1,030 | 834 | 196 | 24 | % | ||||||||||
12,635 | 13,402 | (767 | ) | (6 | )% | ||||||||||
Operating, general, and administrative expenses (b) | 8,604 | 8,537 | 67 | 1 | % | ||||||||||
Equipment lease expense | 84 | 129 | (45 | ) | (35 | )% | |||||||||
Operating loss | (2,754 | ) | (7,547 | ) | 4,793 | (64 | )% | ||||||||
Depreciation and amortization expense | 6,714 | 7,307 | (593 | ) | (8 | )% | |||||||||
Loss (gain) on asset sales and disposals | (13 | ) | 4,976 | (4,989 | ) | (100 | )% | ||||||||
Severance costs | 1,305 | 227 | 1,078 | 475 | % | ||||||||||
Unrealized (non-cash) loss on changes in fair value of derivatives not designated as hedging instruments | 1,607 | 308 | 1,299 | NM | |||||||||||
Adjusted EBITDA | $ | 6,859 | $ | 5,271 | $ | 1,588 | 30 | % |
(amounts in thousands) | |||||||||||||||
Three months ended October 31, | 2017 | 2016 | Increase (Decrease) | ||||||||||||
Operating, general and administrative expense (a) | $ | 10,757 | $ | 12,959 | $ | (2,202 | ) | (17 | )% | ||||||
Equipment lease expense | 452 | 647 | (195 | ) | (30 | )% | |||||||||
Operating loss | (16,101 | ) | (18,122 | ) | 2,021 | 11 | % | ||||||||
Depreciation and amortization expense | 930 | 762 | 168 | 22 | % | ||||||||||
Non-cash employee stock ownership plan compensation charge | 3,962 | 3,754 | 208 | 6 | % | ||||||||||
Non-cash stock based compensation charge | — | 1,881 | (1,881 | ) | (100 | )% | |||||||||
Severance costs | — | 989 | (989 | ) | (100 | )% | |||||||||
Adjusted EBITDA | $ | (11,209 | ) | $ | (10,736 | ) | $ | (473 | ) | (4 | )% |
• | significantly warmer than normal temperatures during the winter heating season; |
• | significant and sustained increases in the wholesale cost of propane that we are unable to pass along to our customers; |
• | a more volatile energy commodity cost environment; |
• | an unexpected downturn in business operations; |
• | a significant delay in the collection of accounts or notes receivable; |
• | a failure to execute our debt and interest expense reduction initiatives; |
• | a change in customer retention or purchasing patterns due to economic or other factors in the United States; |
• | a material downturn in the credit and/or equity markets; or |
• | a large uninsured, unfavorable lawsuit judgment or settlement. |
Distributable Cash Flow to equity investors | Cash reserves (deficiency) approved by our General Partner | Cash distributions paid to equity investors | DCF ratio | |||||||||||
Three months ended October 31, 2017 | $ | (19,343 | ) | $ | (29,256 | ) | $ | 9,913 | ||||||
For the year ended July 31, 2017 | 77,182 | (3,601 | ) | 80,783 | ||||||||||
Less: Three months ended October 31, 2016 | (6,202 | ) | (57,009 | ) | 50,807 | |||||||||
Twelve months ended October 31, 2017 | $ | 64,041 | $ | 24,152 | $ | 39,889 | 1.61 | |||||||
Twelve months ended July 31, 2017 | 77,182 | (3,601 | ) | 80,783 | 0.96 | |||||||||
Change | $ | (13,141 | ) | $ | 27,753 | $ | (40,894 | ) | 0.65 |
• | Maintenance capital expenditures. These capital expenditures include expenditures for betterment and replacement of property, plant and equipment rather than to generate incremental distributable cash flow. Examples of maintenance capital expenditures include a routine replacement of a worn-out asset or replacement of major vehicle components; and |
• | Growth capital expenditures. These expenditures are undertaken primarily to generate incremental distributable cash flow. Examples include expenditures for purchases of both bulk and portable propane tanks and other equipment to facilitate expansion of our customer base and operating capacity. |
• | for Base Rate Loans or Swing Line Loans, the Base Rate, which is defined as the higher of (i) the federal funds rate plus 0.50%, (ii) Bank of America’s prime rate; or (iii) the Eurodollar Rate plus 1.00%; plus a margin varying from 0.75% to 3.00%; or |
• | for Eurodollar Rate Loans, the Eurodollar Rate, which is defined as the LIBOR Rate plus a margin varying from 1.75% to 4.00%. |
Common unit ownership at | Distributions (in thousands) paid during the three months ended | ||||||
October 31, 2017 | October 31, 2017 | ||||||
Ferrell Companies (1) | 22,529,361 | $ | 2,253 | ||||
FCI Trading Corp. (2) | 195,686 | 20 | |||||
Ferrell Propane, Inc. (3) | 51,204 | 5 | |||||
James E. Ferrell (4) | 4,763,475 | 476 |
Term | Notional Amount(s) (in thousands) | Type | ||
May 2021 | $140,000 | Pay a floating rate and receive a fixed rate of 6.50% | ||
Aug 2018 | $100,000 | Pay a fixed rate of 1.95% and receive a floating rate |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
Exhibit Number | Description | |||
3.1 | ||||
3.2 | ||||
3.3 | ||||
3.4 | ||||
3.5 | ||||
3.6 | ||||
3.7 | ||||
3.8 | ||||
3.9 | ||||
3.10 | ||||
3.11 | ||||
* | 3.12 | |||
* | 3.13 | |||
4.1 | ||||
4.2 | ||||
4.3 | ||||
4.4 | ||||
4.5 | ||||
4.6 | ||||
4.7 | ||||
4.8 |
4.9 | ||||
4.10 | ||||
4.11 | ||||
4.12 | ||||
4.13 | ||||
4.14 | ||||
10.1 | ||||
10.2 | ||||
10.3 | ||||
10.4 | ||||
10.5 | ||||
10.6 | ||||
10.7 | ||||
10.8 | ||||
10.9 | ||||
10.10 | ||||
# | 10.11 | |||
# | 10.12 | |||
# | 10.13 | |||
# | 10.14 | |||
# | 10.15 | |||
# | 10.16 |
# | 10.17 | |||
# | 10.18 | |||
# | 10.19 | . | ||
# | 10.20 | |||
# | 10.21 | |||
10.22 | ||||
# | 10.23 | |||
# | 10.24 | |||
+ | 10.25 | |||
10.26 | ||||
10.27 | ||||
10.28 | ||||
10.29 | ||||
10.30 | ||||
10.31 | ||||
10.32 | ||||
10.33 | ||||
10.34 | ||||
10.35 | ||||
10.36 | ||||
10.37 | ||||
10.38 | ||||
# | 10.39 | |||
# | 10.40 | |||
10.41 |
10.42 | ||||
10.43 | ||||
# | 10.44 | |||
* | 31.1 | |||
* | 31.2 | |||
* | 31.3 | |||
* | 31.4 | |||
* | 32.1 | |||
* | 32.2 | |||
* | 32.3 | |||
* | 32.4 | |||
* | 101.INS | XBRL Instance Document. | ||
* | 101.SCH | XBRL Taxonomy Extension Schema Document. | ||
* | 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | ||
* | 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | ||
* | 101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | ||
* | 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | ||
* | Filed herewith | |||
# | Management contracts or compensatory plans. | |||
+ | Confidential treatment has been granted with respect to certain portions of this exhibit. Omitted portions have been filed separately with the SEC. |
FERRELLGAS PARTNERS, L.P. | |||
By Ferrellgas, Inc. (General Partner) | |||
Date: | December 7, 2017 | By | /s/ Doran N. Schwartz |
Doran N. Schwartz | |||
Senior Vice President; Chief Financial Officer; Treasurer (Principal Financial and Accounting Officer) | |||
FERRELLGAS PARTNERS FINANCE CORP. | |||
Date: | December 7, 2017 | By | /s/ Doran N. Schwartz |
Doran N. Schwartz | |||
Chief Financial Officer and Sole Director | |||
FERRELLGAS, L.P. | |||
By Ferrellgas, Inc. (General Partner) | |||
Date: | December 7, 2017 | By | /s/ Doran N. Schwartz |
Doran N. Schwartz | |||
Senior Vice President; Chief Financial Officer; Treasurer (Principal Financial and Accounting Officer) | |||
FERRELLGAS FINANCE CORP. | |||
Date: | December 7, 2017 | By | /s/ Doran N. Schwartz |
Doran N. Schwartz | |||
Chief Financial Officer and Sole Director |
1. | I have reviewed this report on Form 10-Q for the period ended October 31, 2017 of Ferrellgas Partners, L.P. (the “Registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; |
4. | The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and |
5. | The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
1. | I have reviewed this report on Form 10-Q for the period ended October 31, 2017 of Ferrellgas Partners, L.P. (the “Registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; |
4. | The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and |
5. | The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
1. | I have reviewed this report on Form 10-Q for the period ended October 31, 2017 of Ferrellgas Partners Finance Corp. (the “Registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; |
4. | The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and |
5. | The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
1. | I have reviewed this report on Form 10-Q for the period ended October 31, 2017 of Ferrellgas Partners Finance Corp. (the “Registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; |
4. | The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and |
5. | The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
1. | I have reviewed this report on Form 10-Q for the period ended October 31, 2017 of Ferrellgas, L.P. (the “Registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; |
4. | The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and |
5. | The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
1. | I have reviewed this report on Form 10-Q for the period ended October 31, 2017 of Ferrellgas, L.P. (the “Registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; |
4. | The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and |
5. | The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
1. | I have reviewed this report on Form 10-Q for the period ended October 31, 2017 of Ferrellgas Finance Corp. (the “Registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; |
4. | The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and |
5. | The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
1. | I have reviewed this report on Form 10-Q for the period ended October 31, 2017 of Ferrellgas Finance Corp. (the “Registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; |
4. | The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and |
5) | The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Oct. 31, 2017 |
Jul. 31, 2017 |
---|---|---|
Accounts receivable pledged as collateral | $ 137,244 | $ 109,407 |
Intangible assets accumulated amortization | $ 444,447 | $ 436,428 |
Limited Partners' Capital Account, Units Outstanding | 97,152,665 | 97,152,665 |
General partner unitholder, units outstanding | 989,926 | 989,926 |
Ferrellgas Partners Finance Corp. [Member] | ||
Common stock, par value | $ 1.00 | $ 1.00 |
Common stock, shares authorized | 2,000 | 2,000 |
Common stock, shares issued | 1,000 | 1,000 |
Common stock, shares outstanding | 1,000 | 1,000 |
Ferrellgas, L.P. [Member] | ||
Accounts receivable pledged as collateral | $ 137,244 | $ 109,407 |
Intangible assets accumulated amortization | $ 444,447 | $ 436,428 |
Ferrellgas Finance Corp. [Member] | ||
Common stock, par value | $ 1.00 | $ 1.00 |
Common stock, shares authorized | 2,000 | 2,000 |
Common stock, shares issued | 1,000 | 1,000 |
Common stock, shares outstanding | 1,000 | 1,000 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Oct. 31, 2017 |
Oct. 31, 2016 |
|
Net loss | $ (48,316) | $ (43,471) |
Other comprehensive income (loss): | ||
Change in value of risk management derivatives | 22,449 | 5,138 |
Reclassification of derivative gains and losses to earnings | (3,949) | 4,238 |
Other comprehensive income (loss) | 18,500 | 9,376 |
Comprehensive income | (29,816) | (34,095) |
Less: Comprehensive income attributable to noncontrolling interest | (215) | (304) |
Comprehensive income attributable to Ferrellgas Partners, LP | (29,601) | (33,791) |
Ferrellgas, L.P. [Member] | ||
Net loss | (39,699) | (39,440) |
Other comprehensive income (loss): | ||
Change in value of risk management derivatives | 22,449 | 5,138 |
Reclassification of derivative gains and losses to earnings | (3,949) | 4,238 |
Other comprehensive income (loss) | 18,500 | 9,376 |
Comprehensive income | $ (21,199) | $ (30,064) |
Consolidated Statements Of Partners' Capital (Deficit) - 3 months ended Oct. 31, 2017 - USD ($) $ in Thousands |
Total |
Accumulated Other Comprehensive Income (Loss) |
Total Ferrellgas Partners, L.P. Partners' Capital (Deficit) [Member] |
Noncontrolling Interest [Member] |
Common Unitholders [Member] |
General Partner Unitholder [Member] |
Ferrellgas, L.P. [Member] |
Ferrellgas, L.P. [Member]
Accumulated Other Comprehensive Income (Loss)
|
Ferrellgas, L.P. [Member]
Common Unitholders [Member]
|
Ferrellgas, L.P. [Member]
General Partner Unitholder [Member]
|
---|---|---|---|---|---|---|---|---|---|---|
Partners' capital balance (in units) at Jul. 31, 2017 | 97,152,700 | 989,900 | ||||||||
Partners' capital balance at Jul. 31, 2017 | $ (757,510) | $ 14,601 | $ (753,578) | $ (3,932) | $ (701,188) | $ (66,991) | $ (406,798) | $ 14,764 | $ (417,467) | $ (4,095) |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||||
Contributions in connection with non-cash ESOP and stock and unit-based compensation charges | 3,962 | 0 | 3,923 | 39 | 3,883 | 40 | 3,962 | 0 | 3,923 | 39 |
Distributions | (9,913) | 0 | (9,813) | (100) | (9,715) | (98) | (9,913) | 0 | (9,813) | (100) |
Net loss | (48,316) | 0 | (47,915) | (401) | $ (47,436) | $ (479) | (39,699) | 0 | (39,298) | (401) |
Other comprehensive income (loss) | 18,500 | 18,314 | 18,314 | 186 | 18,500 | 18,500 | 0 | 0 | ||
Partners' capital balance (in units) at Oct. 31, 2017 | 97,152,700 | 989,900 | ||||||||
Partners' capital balance at Oct. 31, 2017 | $ (793,277) | $ 32,915 | $ (789,069) | $ (4,208) | $ (754,456) | $ (67,528) | $ (433,948) | $ 33,264 | $ (462,655) | $ (4,557) |
Partnership Organization And Formation |
3 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Oct. 31, 2017 | |||||||||
Partnership Organization And Formation | Ferrellgas Partners, L.P. (“Ferrellgas Partners”) was formed April 19, 1994, and is a publicly traded limited partnership, owning an approximate 99% limited partner interest in Ferrellgas, L.P. (the "operating partnership"). Ferrellgas Partners and the operating partnership, collectively referred to as “Ferrellgas,” are both Delaware limited partnerships and are governed by their respective partnership agreements. Ferrellgas Partners was formed to acquire and hold a limited partner interest in the operating partnership. As of October 31, 2017, Ferrell Companies, Inc. ("Ferrell Companies") beneficially owns 22.8 million Ferrellgas Partners common units. Ferrellgas, Inc. (the "general partner"), a wholly-owned subsidiary of Ferrell Companies, has retained an approximate 1% general partner interest in Ferrellgas Partners and also holds an approximate 1% general partner interest in the operating partnership, representing an effective 2% general partner interest in Ferrellgas on a combined basis. As general partner, it performs all management functions required by Ferrellgas. Unless contractually provided for, creditors of the operating partnership have no recourse with regards to Ferrellgas Partners. Ferrellgas Partners is a holding entity that conducts no operations and has two subsidiaries, Ferrellgas Partners Finance Corp. and the operating partnership. Ferrellgas Partners owns a 100% equity interest in Ferrellgas Partners Finance Corp., whose only business activity is to act as the co-issuer and co-obligor of debt issued by Ferrellgas Partners. The operating partnership is the only operating subsidiary of Ferrellgas Partners. Ferrellgas is engaged in the following primary businesses:
Due to seasonality, the results of operations for the three months ended October 31, 2017 are not necessarily indicative of the results to be expected for the full fiscal year ending July 31, 2018. The condensed consolidated financial statements of Ferrellgas reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the interim periods presented. All adjustments to the condensed consolidated financial statements were of a normal recurring nature. Certain prior period amounts have been reclassified to conform to the current period presentation. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with (i) the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and (ii) the consolidated financial statements and accompanying notes included in Ferrellgas' Annual Report on Form 10-K for fiscal 2017. |
||||||||
Ferrellgas Partners Finance Corp. [Member] | |||||||||
Partnership Organization And Formation | Formation Ferrellgas Partners Finance Corp. (the “Finance Corp.”), a Delaware corporation, was formed on March 28, 1996 and is a wholly-owned subsidiary of Ferrellgas Partners, L.P. (the “Partnership”). The condensed financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the interim periods presented. All adjustments to the condensed financial statements were of a normal recurring nature. The Finance Corp. has nominal assets, does not conduct any operations and has no employees. |
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Ferrellgas, L.P. [Member] | |||||||||
Partnership Organization And Formation | Partnership organization and formation Ferrellgas, L.P. is a limited partnership that owns and operates propane distribution and related assets, crude oil transportation and logistics related assets and salt water disposal wells in south Texas. Ferrellgas Partners, L.P. (“Ferrellgas Partners”), a publicly traded limited partnership, holds an approximate 99% limited partner interest in, and consolidates, Ferrellgas, L.P. Ferrellgas, Inc. (the “general partner”), a wholly-owned subsidiary of Ferrell Companies, Inc. (“Ferrell Companies”), holds an approximate 1% general partner interest in Ferrellgas, L.P. and performs all management functions required by Ferrellgas, L.P. Ferrellgas, L.P. owns a 100% equity interest in Ferrellgas Finance Corp., whose only business activity is to act as the co-issuer and co-obligor of debt issued by Ferrellgas, L.P. Ferrellgas, L.P. is engaged in the following primary businesses:
Due to seasonality, the results of operations for the three months ended October 31, 2017 are not necessarily indicative of the results to be expected for the full fiscal year ending July 31, 2018. The condensed consolidated financial statements of Ferrellgas, L.P. and subsidiaries reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the interim periods presented. All adjustments to the condensed consolidated financial statements were of a normal recurring nature. Certain prior period amounts have been reclassified to conform to the current period presentation. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with (i) the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and (ii) the consolidated financial statements and accompanying notes included in Ferrellgas, L.P.’s Annual Report on Form 10-K for fiscal 2017. |
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Ferrellgas Finance Corp. [Member] | |||||||||
Partnership Organization And Formation | Formation Ferrellgas Finance Corp. (the “Finance Corp.”), a Delaware corporation, was formed on January 16, 2003 and is a wholly-owned subsidiary of Ferrellgas, L.P. (the “Partnership”). The condensed financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the interim periods presented. All adjustments to the condensed financial statements were of a normal recurring nature. The Finance Corp. has nominal assets, does not conduct any operations and has no employees. |
Summary Of Significant Accounting Policies |
3 Months Ended |
---|---|
Oct. 31, 2017 | |
Significant Accounting Policies [Line Items] | |
Summary Of Significant Accounting Policies | Summary of significant accounting policies (1) Accounting estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from these estimates. Significant estimates impacting the consolidated financial statements include accruals that have been established for contingent liabilities, pending claims and legal actions arising in the normal course of business, useful lives of property, plant and equipment assets, residual values of tanks, capitalization of customer tank installation costs, amortization methods of intangible assets, valuation methods used to value sales returns and allowances, allowance for doubtful accounts, fair value of reporting units, recoverability of long-lived assets, assumptions used to value business combinations, fair values of derivative contracts and stock-based compensation calculations. (2) New accounting standards: FASB Accounting Standard Update No. 2014-09 In May 2014, the Financial Accounting Standards Board, ("FASB") issued Accounting Standard Update ("ASU") 2014-09, Revenue from Contracts with Customers. The issuance is part of a joint effort by the FASB and the International Accounting Standards Board ("IASB") to enhance financial reporting by creating common revenue recognition guidance for U.S. GAAP and International Financial Reporting Standards ("IFRS") and, thereby, improving the consistency of requirements, comparability of practices and usefulness of disclosures. The new standard will supersede much of the existing authoritative literature for revenue recognition. The standard and related amendments will be effective for Ferrellgas for its annual reporting period beginning August 1, 2018, including interim periods within that reporting period. Entities are allowed to transition to the new standard by either recasting prior periods or recognizing the cumulative effect. Ferrellgas is currently evaluating the newly issued guidance, including which transition approach will be applied and the estimated impact it will have on the consolidated financial statements. Ferrellgas has formed an implementation team, completed training on the new standard, prepared an initial assessment and is continuing to review its contracts with customers. FASB Accounting Standard Update No. 2015-11 In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330) - Simplifying the Measurement of Inventory, which requires that inventory within the scope of the guidance be measured at the lower of cost or net realizable value. We adopted ASU 2015-11 effective August 1, 2017. The adoption of this standard did not materially impact our consolidated financial statements. FASB Accounting Standard Update No. 2016-02 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Ferrellgas is currently evaluating the impact of its pending adoption of ASU 2016-02 on the consolidated financial statements. Ferrellgas has formed an implementation team, completed training on the new standard, and is working on an initial assessment. FASB Accounting Standard Update No. 2016-13 In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) which requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. This standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Entities will apply the standard's provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. Ferrellgas is currently evaluating the impact of its pending adoption of this standard on the consolidated financial statements. FASB Accounting Standard Update No. 2017-12 In August 2017, the FASB issued ASU 2017-12, Financial Instruments - Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting for Hedging Activities which is intended to improve the financial reporting for hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. This standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Ferrellgas is currently evaluating the impact of its pending adoption of this standard on the consolidated financial statements. |
Ferrellgas, L.P. [Member] | |
Significant Accounting Policies [Line Items] | |
Summary Of Significant Accounting Policies | Summary of significant accounting policies (1) Accounting estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from these estimates. Significant estimates impacting the consolidated financial statements include accruals that have been established for contingent liabilities, pending claims and legal actions arising in the normal course of business, useful lives of property, plant and equipment assets, residual values of tanks, capitalization of customer tank installation costs, amortization methods of intangible assets, valuation methods used to value sales returns and allowances, allowance for doubtful accounts, fair value of reporting units, recoverability of long-lived assets, assumptions used to value business combinations, fair values of derivative contracts and stock-based compensation calculations. (2) New accounting standards: FASB Accounting Standard Update No. 2014-09 In May 2014, the Financial Accounting Standards Board, ("FASB") issued Accounting Standard Update ("ASU") 2014-09, Revenue from Contracts with Customers. The issuance is part of a joint effort by the FASB and the International Accounting Standards Board ("IASB") to enhance financial reporting by creating common revenue recognition guidance for U.S. GAAP and International Financial Reporting Standards ("IFRS") and, thereby, improving the consistency of requirements, comparability of practices and usefulness of disclosures. The new standard will supersede much of the existing authoritative literature for revenue recognition. The standard and related amendments will be effective for Ferrellgas, L.P. for its annual reporting period beginning August 1, 2018, including interim periods within that reporting period. Entities are allowed to transition to the new standard by either recasting prior periods or recognizing the cumulative effect. Ferrellgas, L.P. is currently evaluating the newly issued guidance, including which transition approach will be applied and the estimated impact it will have on the consolidated financial statements. Ferrellgas, L.P. has formed an implementation team, completed training on the new standard, prepared an initial assessment and is continuing to review its contracts with customers. FASB Accounting Standard Update No. 2015-11 In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330) - Simplifying the Measurement of Inventory, which requires that inventory within the scope of the guidance be measured at the lower of cost or net realizable value. We adopted ASU 2015-11 effective August 1, 2017. The adoption of this standard did not materially impact our consolidated financial statements. FASB Accounting Standard Update No. 2016-02 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Ferrellgas, L.P. is currently evaluating the impact of our pending adoption of ASU 2016-02 on the consolidated financial statements. Ferrellgas, L.P. has formed an implementation team, completed training on the new standard, and is working on an initial assessment. FASB Accounting Standard Update No. 2016-13 In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) which requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. This standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Entities will apply the standard's provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. Ferrellgas, L.P. is currently evaluating the impact of its pending adoption of this standard on the consolidated financial statements. FASB Accounting Standard Update No. 2017-12 In August 2017, the FASB issued ASU 2017-12, Financial Instruments - Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting for Hedging Activities which is intended to improve the financial reporting for hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. This standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Ferrellgas, L.P. is currently evaluating the impact of its pending adoption of this standard on the consolidated financial statements. |
Supplemental Financial Statement Information |
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Oct. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Financial Statement Information | Supplemental financial statement information Inventories consist of the following:
In addition to inventories on hand, Ferrellgas enters into contracts primarily to buy propane for supply procurement purposes with terms up to 36 months. Most of these contracts call for payment based on market prices at the date of delivery. As of October 31, 2017, Ferrellgas had committed, for supply procurement purposes, to take delivery of approximately 119.3 million gallons of propane at fixed prices. Other assets, net consist of the following:
Other current liabilities consist of the following:
Shipping and handling expenses are classified in the following condensed consolidated statements of operations line items:
Certain cash flow and significant non-cash activities are presented below:
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Ferrellgas, L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Financial Statement Information | Supplemental financial statement information Inventories consist of the following:
In addition to inventories on hand, Ferrellgas, L.P. enters into contracts primarily to buy propane for supply procurement purposes with terms up to 36 months. Most of these contracts call for payment based on market prices at the date of delivery. As of October 31, 2017, Ferrellgas, L.P. had committed, for supply procurement purposes, to take delivery of approximately 119.3 million gallons of propane at fixed prices. Other assets, net consist of the following:
Other current liabilities consist of the following:
Shipping and handling expenses are classified in the following condensed consolidated statements of operations line items:
Certain cash flow and significant non-cash activities are presented below:
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Accounts And Notes Receivable, Net And Accounts Receivable Securitization |
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Accounts And Notes Receivable, Net And Accounts Receivable Securitization | Accounts and notes receivable, net and accounts receivable securitization Accounts and notes receivable, net consist of the following:
On April 28, 2017, Ferrellgas entered into a fifth amendment to its accounts receivable securitization facility to modify the maximum consolidated leverage ratio covenant and the consolidated interest coverage ratio covenant. Consolidated leverage ratio The consolidated leverage ratio is defined as the ratio of total debt of the operating partnership to trailing four quarters earnings before interest expense, income tax expense, depreciation and amortization expense ("EBITDA") (both as adjusted for certain, specified items) of the operating partnership, as detailed in Ferrellgas' secured credit facility and accounts receivable securitization facility. The current maximum consolidated leverage covenant ratios are as follows:
Ferrellgas' consolidated leverage ratio was 7.57x as of October 31, 2017. See additional disclosure about Ferrellgas' financial covenants in Note E - Debt. Consolidated interest coverage ratio The consolidated interest coverage ratio is defined as the ratio of trailing four quarters EBITDA to interest expense (both as adjusted for certain, specified items) of the operating partnership, as detailed in Ferrellgas' secured credit facility and accounts receivable securitization facility. The current minimum consolidated interest coverage ratios are as follows:
Ferrellgas' consolidated interest coverage ratio was 1.93x as of October 31, 2017; the margin allows for approximately $12.1 million of additional interest expense or approximately $21.1 million less EBITDA. See additional disclosure about Ferrellgas' financial covenants in Note E - Debt. At October 31, 2017, $137.2 million of trade accounts receivable were pledged as collateral against $88.0 million of collateralized notes payable due to the commercial paper conduit. At July 31, 2017, $109.4 million of trade accounts receivable were pledged as collateral against $69.0 million of collateralized notes payable due to the commercial paper conduit. These accounts receivable pledged as collateral are bankruptcy remote from the operating partnership. The operating partnership does not provide any guarantee or similar support to the collectability of these accounts receivable pledged as collateral. As of October 31, 2017, Ferrellgas had received cash proceeds of $88.0 million from trade accounts receivables securitized, with no remaining capacity to receive additional proceeds. As of July 31, 2017, Ferrellgas had received cash proceeds of $69.0 million from trade accounts receivables securitized, with no remaining capacity to receive additional proceeds. Borrowings under the accounts receivable securitization facility had a weighted average interest rate of 3.7% and 4.0% as of October 31, 2017 and July 31, 2017, respectively. |
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Ferrellgas, L.P. [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts And Notes Receivable, Net And Accounts Receivable Securitization | Accounts and notes receivable, net and accounts receivable securitization Accounts and notes receivable, net consist of the following:
On April 28, 2017, Ferrellgas, L.P. entered into a fifth amendment to its accounts receivable securitization facility to modify the maximum consolidated leverage ratio covenant and the consolidated interest coverage ratio covenant. Consolidated leverage ratio The consolidated leverage ratio is defined as the ratio of total debt of the operating partnership to trailing four quarters earnings before interest expense, income tax expense, depreciation and amortization expense ("EBITDA") (both as adjusted for certain, specified items) of the operating partnership, as detailed in Ferrellgas, L.P.'s secured credit facility and accounts receivable securitization facility. The current maximum consolidated leverage covenant ratios are as follows:
Ferrellgas, L.P.'s consolidated leverage ratio was 7.57x as of October 31, 2017. See additional disclosure about Ferrellgas' financial covenants in Note E - Debt. Consolidated interest coverage ratio The consolidated interest coverage ratio is defined as the ratio of trailing four quarters EBITDA to interest expense (both as adjusted for certain, specified items) of the operating partnership, as detailed in Ferrellgas, L.P.'s secured credit facility and accounts receivable securitization facility. The current minimum consolidated interest coverage ratios are as follows:
Ferrellgas L.P.'s consolidated interest coverage ratio was 1.93x as of October 31, 2017; the margin allows for approximately $12.1 million of additional interest expense or approximately $21.1 million less EBITDA. See additional disclosure about Ferrellgas' financial covenants in Note E - Debt. At October 31, 2017, $137.2 million of trade accounts receivable were pledged as collateral against $88.0 million of collateralized notes payable due to a commercial paper conduit. At July 31, 2017, $109.4 million of trade accounts receivable were pledged as collateral against $69.0 million of collateralized notes payable due to the commercial paper conduit. These accounts receivable pledged as collateral are bankruptcy remote from Ferrellgas, L.P. Ferrellgas, L.P. does not provide any guarantee or similar support to the collectability of these accounts receivable pledged as collateral. As of October 31, 2017, Ferrellgas, L.P. had received cash proceeds of $88.0 million from trade accounts receivables securitized, with no remaining capacity to receive additional proceeds. As of July 31, 2017, Ferrellgas, L.P. had received cash proceeds of $69.0 million from trade accounts receivables securitized, with no remaining capacity to receive additional proceeds. Borrowings under the accounts receivable securitization facility had a weighted average interest rate of 3.7% and 4.0% as of October 31, 2017 and July 31, 2017, respectively. |
Debt |
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Debt | Debt Short-term borrowings As of October 31, 2017, Ferrellgas classified all of its secured credit facility borrowings as short-term because the facility matures in October 2018. Prior to October 31, 2017, Ferrellgas classified as short-term the portion of its secured credit facility borrowings that were used to fund working capital needs that management intended to pay down within the 12 month period following the balance sheet date. As of October 31, 2017 and July 31, 2017, $263.2 million and $59.8 million, respectively, were classified as short-term borrowings. For further discussion see the secured credit facility section below. Financial covenants The indenture governing the outstanding notes of Ferrellgas Partners and the agreements governing the operating partnership’s indebtedness contain various covenants that limit Ferrellgas Partners' ability and the ability of specified subsidiaries to, among other things, make restricted payments and incur additional indebtedness. The general partner believes that the most restrictive of these covenants are the consolidated fixed charge coverage ratio, as defined in the indenture governing the outstanding notes of Ferrellgas Partners, and the consolidated leverage ratio and consolidated interest coverage ratio, as defined in the secured credit facility and the accounts receivable securitization facility. Before a restricted payment (as defined in the secured credit facility and the operating partnership indentures) can be made by the operating partnership, the operating partnership must be in compliance with the consolidated leverage ratio and consolidated interest coverage ratio covenants under the secured credit facility and accounts receivable securitization facility and in compliance with the covenants under the operating partnership's indentures. If the operating partnership is unable to make restricted payments, Ferrellgas Partners will not have the ability to make semi-annual interest payments on its $357.0 million 8.625% unsecured senior notes due 2020 or distributions to Ferrellgas Partners common unitholders. If Ferrellgas Partners does not make interest payments on its unsecured notes, that would constitute an event of default which would permit the acceleration of the obligations underlying the Ferrellgas Partners indenture, including all outstanding principal owed. The accelerated obligations would become immediately due and payable, which would in turn trigger cross acceleration of other debt. If Ferrellgas' debt obligations are accelerated, Ferrellgas may be unable to borrow sufficient funds to refinance debt in which case unitholders and investors in our debt instruments could experience a partial or total loss of their investment. Before a restricted payment (as defined in the Ferrellgas Partners indenture) can be made by Ferrellgas Partners, Ferrellgas Partners must be in compliance with the consolidated fixed charge coverage ratio covenant under the Ferrellgas Partners indenture. If Ferrellgas Partners is unable to make restricted payments, Ferrellgas Partners will not have the ability to make distributions to Ferrellgas Partners common unitholders. A breach of the consolidated leverage ratio covenant or the consolidated interest coverage ratio covenant under the secured credit facility and the accounts receivable securitization facility would result in an event of default under those facilities resulting in the operating partnership’s inability to obtain funds under those facilities and would give the lenders and receivables purchasers the right to accelerate the operating partnership's obligations under those facilities and to exercise remedies to collect the outstanding amounts under those facilities. If the lenders and receivables purchasers accelerated the operating partnership's obligations, that would constitute an event of default which would permit the acceleration of the obligations underlying the Ferrellgas Partners indenture, including all outstanding principal owed. The accelerated obligations would become immediately due and payable, which would in turn trigger cross acceleration of other debt. If Ferrellgas' debt obligations are accelerated, Ferrellgas may be unable to borrow sufficient funds to refinance debt in which case unitholders and investors in our debt instruments could experience a partial or total loss of their investment. Consolidated leverage ratio The consolidated leverage ratio is defined as the ratio of total debt of the operating partnership to trailing four quarters EBITDA (both as adjusted for certain, defined items) of the operating partnership, as detailed in Ferrellgas' secured credit facility and accounts receivable securitization facility. The current maximum consolidated leverage covenant ratios are as follows:
Ferrellgas' consolidated leverage ratio was 7.57x as of October 31, 2017; the margin allows for approximately $40.6 million of additional borrowing capacity or approximately $5.2 million less EBITDA. This covenant also restricts Ferrellgas' ability to make distribution payments as discussed above. Consolidated interest coverage ratio The consolidated interest coverage ratio is defined as the ratio of trailing four quarters EBITDA to interest expense (both as adjusted for certain, specified items) of the operating partnership, as detailed in Ferrellgas' secured credit facility and accounts receivable securitization facility. The current minimum consolidated interest coverage ratios are as follows:
Ferrellgas' consolidated interest coverage ratio was 1.93x at October 31, 2017; the margin allows for approximately $12.1 million of additional interest expense or approximately $21.1 million less EBITDA. Consolidated fixed charge coverage ratio The indenture governing the outstanding notes of Ferrellgas Partners includes a consolidated fixed charge coverage ratio test for the incurrence of debt and the making of restricted payments. This covenant requires that the ratio of trailing four quarters EBITDA to interest expense (both as adjusted for certain, specified items) of Ferrellgas Partners be at least 1.75x before a restricted payment (as defined in the indenture) can be made by Ferrellgas Partners. If this ratio were to drop below 1.75x, the indenture allows Ferrellgas Partners to make restricted payments of up to $50.0 million in total over a 16 quarter period while below this ratio. As of October 31, 2017, the ratio was 1.44x. As a result, the $9.8 million distribution to be paid to common unitholders on December 15, 2017 will be taken from the $50.0 million restricted payment limitation, which after considering the $9.8 million deduction taken as a result of the distribution paid in September 2017, leaves $30.4 million for future restricted payments. Unless the indenture governing the outstanding notes is amended or refinanced, if our consolidated fixed charge coverage ratio does not improve to at least 1.75x and we continue our current quarterly distribution rate of $0.10 per common unit, this covenant will not allow us to make common unit distributions for our quarter ending October 31, 2018 and beyond. Debt and interest expense reduction strategy Ferrellgas continues to execute on a strategy to reduce its debt and interest expense. This strategy may include issuance of equity, amending existing debt agreements, asset sales or a further reduction in Ferrellgas Partners' annual distribution, which was reduced during the quarter ended October 31, 2016 from an annualized rate of $2.05 to $0.40 per common unit. Ferrellgas believes any debt and interest expense reduction strategies would remain in effect until Ferrellgas' consolidated leverage ratio reaches 4.5x or a level Ferrellgas deems appropriate for its business. If Ferrellgas is unsuccessful with its strategy to reduce debt and interest expense, is unsuccessful in renegotiating its secured credit facility, which matures in October 2018, or is unable to secure alternative liquidity sources, it may not have the liquidity to fund its operations after that maturity date. Failure to maintain compliance with these and other covenants in our agreements or failure to renew or replace liquidity available under the secured credit facility could have a material, adverse effect on Ferrellgas' operating capacity and cash flows and could further restrict Ferrellgas' ability to incur debt, pay interest on the notes or to make cash distributions to unitholders. An inability to pay interest on the notes could result in an event of default that would permit the acceleration of all of Ferrellgas' indebtedness. The accelerated debt would become immediately due and payable, which would in turn trigger cross-acceleration under other debt. If the payment of Ferrellgas' debt is accelerated, Ferrellgas' assets may be insufficient to repay such debt in full and Ferrellgas may be unable to borrow sufficient funds to refinance debt, in which case investors in common units and our debt instruments could experience a partial or total loss of their investment. As a result of the October 2018 maturity date of Ferrellgas' secured credit facility, the entire balance outstanding at October 31, 2017 has been classified as a current liability in the condensed consolidated balance sheet as of October 31, 2017. The absence of a plan to renew or refinance this debt would raise substantial doubt about Ferrellgas' ability to continue as a going concern. Ferrellgas is working to renew or replace the secured credit facility. Potential options may include extending the current secured credit facility, entering into a new secured credit facility or securing alternative financing from a different source. Ferrellgas believes it is probable that it will be able to obtain sufficient capital to meet anticipated liquidity demands and, therefore, does not believe there is substantial doubt about our ability to continue as a going concern. Secured credit facility On April 28, 2017, Ferrellgas entered into a sixth amendment to its secured credit facility to modify the maximum consolidated leverage ratio covenant and the consolidated interest coverage ratio covenant. The amendment to our secured credit facility also (1) reduces the amounts available to be borrowed from $700 million to $575 million, (2) increases the pricing of loans when our leverage ratio is greater than or equal to 6.00x from LIBOR plus 3.50% to LIBOR plus 3.75% and when our leverage ratio is greater than or equal to 7.00x from LIBOR plus 3.50% to LIBOR plus 4.00%, (3) limits the amount of distributions (other than distributions to Ferrellgas Partners for payments of interest payable on its unsecured notes) that the operating partnership may make to Ferrellgas Partners to $10 million per quarter (Ferrellgas Partners' current distribution rate is $9.8 million per quarter) until the leverage ratio is less than 5.50x, (4) reduces the amount of investments we can make when our leverage ratio is greater than 5.50x from $200 million to $50 million, and (5) requires us to reduce our secured credit facility with 50% of the net cash proceeds received from any equity sale. As of October 31, 2017, Ferrellgas had total borrowings outstanding under its secured credit facility of $263.2 million, all of which was classified as short-term. Ferrellgas had $139.8 million of capacity under the secured credit facility as of October 31, 2017. However, the consolidated leverage ratio covenant under this facility limited additional borrowings to$40.6 million as of October 31, 2017. As of July 31, 2017, Ferrellgas had total borrowings outstanding under its secured credit facility of $245.5 million, of which $185.7 million was classified as long-term debt. Ferrellgas had $190.3 million of capacity under the secured credit facility as of July 31, 2017. However, the consolidated leverage ratio covenant under this facility limited additional borrowings to $67.5 million as of July 31, 2017. Borrowings outstanding at October 31, 2017 and July 31, 2017 under the secured credit facility had weighted average interest rates of 5.9% and 6.0%, respectively. The obligations under this credit facility are secured by substantially all assets of Ferrellgas, the general partner and certain subsidiaries of Ferrellgas but specifically excluding (a) assets that are subject to Ferrellgas’ accounts receivable securitization facility, (b) the general partner’s equity interest in Ferrellgas Partners and (c) equity interests in certain unrestricted subsidiaries. Such obligations are also guaranteed by the general partner and certain subsidiaries of Ferrellgas. Letters of credit outstanding at October 31, 2017 totaled $172.0 million and were used to secure commodity hedges, product purchases, and insurance arrangements. Letters of credit outstanding at July 31, 2017 totaled $139.2 million and were used to secure commodity hedges, product purchases, and insurance arrangements. At October 31, 2017, Ferrellgas had remaining letter of credit capacity of $28.0 million. At July 31, 2017, Ferrellgas had remaining letter of credit capacity of $60.8 million. |
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Ferrellgas, L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Short-term borrowings As of October 31, 2017, Ferrellgas, L.P. classified all of its secured credit facility borrowings as short-term because the facility matures in October 2018. Prior to October 31, 2017, Ferrellgas, L.P. classified as short-term the portion of its secured credit facility borrowings that were used to fund working capital needs that management intended to pay down within the 12 month period following the balance sheet date. As of October 31, 2017 and July 31, 2017, $263.2 million and $59.8 million, respectively, were classified as short-term borrowings. For further discussion see the secured credit facility section below. Financial covenants The agreements governing the operating partnership’s indebtedness contain various covenants that limit our ability and the ability of specified subsidiaries to, among other things, make restricted payments and incur additional indebtedness. Our general partner believes that the most restrictive of these covenants are the consolidated leverage ratio and consolidated interest coverage ratio, as defined in our secured credit facility and our accounts receivable securitization facility. Before a restricted payment (as defined in the secured credit facility and the operating partnership indentures) can be made by the operating partnership, the operating partnership must be in compliance with the consolidated leverage ratio and consolidated interest coverage ratio covenants under the secured credit facility and accounts receivable securitization facility and in compliance with the covenants under the operating partnerships indentures. If the operating partnership is unable to make restricted payments, Ferrellgas Partners will not have the ability to make semi-annual interest payments on its $357.0 million 8.625% unsecured senior notes due 2020 or distributions to Ferrellgas Partners common unitholders. If Ferrellgas Partners does not make interest payments on its unsecured notes, that would constitute an event of default which would permit the acceleration of the obligations underlying the Ferrellgas Partners indenture, including all outstanding principal owed. The accelerated obligations would become immediately due and payable, which would in turn trigger cross acceleration of other debt. If Ferrellgas, L.P.'s debt obligations are accelerated, Ferrellgas, L.P. may be unable to borrow sufficient funds to refinance debt in which case Ferrellgas Partners' unitholders and investors in our debt instruments could experience a partial or total loss of their investment. A breach of the consolidated leverage ratio covenant or the consolidated interest coverage ratio covenant under the secured credit facility and the accounts receivable securitization facility would result in an event of default under those facilities resulting in the operating partnership’s inability to obtain funds under those facilities and would give the lenders and receivables purchasers the right to accelerate the operating partnership’s obligations under those facilities and to exercise remedies to collect the outstanding amounts under those facilities. If the lenders and receivables purchasers accelerated the operating partnership's obligations, that would constitute an event of default which would permit the acceleration of the obligations underlying the Ferrellgas Partners indenture, including all outstanding principal owed. The accelerated obligations would become immediately due and payable, which would in turn trigger cross acceleration of other debt. If Ferrellgas, L.P.'s debt obligations are accelerated, Ferrellgas, L.P. may be unable to borrow sufficient funds to refinance debt in which case Ferrellgas Partners unitholders and investors in our debt instruments could experience a partial or total loss of their investment. Consolidated leverage ratio The consolidated leverage ratio is defined as the ratio of total debt of the operating partnership to trailing four quarters EBITDA (both as adjusted for certain, specified items) of the operating partnership, as detailed in Ferrellgas, L.P.'s secured credit facility and accounts receivable securitization facility. The current maximum consolidated leverage covenant ratios are as follows:
Ferrellgas, L.P.'s consolidated leverage ratio was 7.57x as of October 31, 2017; the margin allows for approximately $40.6 million of additional borrowing capacity or approximately $5.2 million less EBITDA. This covenant also restricts Ferrellgas L.P.'s ability to make payments to Ferrellgas Partners for purposes of funding distribution payments as discussed above. Consolidated interest coverage ratio The consolidated interest coverage ratio is defined as the ratio of trailing four quarters EBITDA to interest expense (both as adjusted for certain, specified items) of the operating partnership, as detailed in Ferrellgas' secured credit facility and accounts receivable securitization facility. The current minimum consolidated interest coverage ratios are as follows:
Ferrellgas L.P.'s consolidated interest coverage ratio was 1.93x at October 31, 2017; the margin allows for approximately $12.1 million of additional interest expense or approximately $21.1 million less EBITDA. Debt and interest expense reduction strategy Ferrellgas, L.P. continues to execute on a strategy to reduce its debt and interest expense. This strategy may include issuance of Ferrellgas Partners' equity, amending existing debt agreements, asset sales or a further reduction in the operating partnership's funding of Ferrellgas Partners' annual distribution, which was reduced during the quarter ended October 31, 2016 from an annualized rate of $2.05 to $0.40 per common unit. Ferrellgas, L.P. believes any debt and interest expense reduction strategies would remain in effect until Ferrellgas, L.P.'s consolidated leverage ratio reaches 4.5x or a level Ferrellgas, L.P. deems appropriate for its business. If Ferrellgas, L.P. is unsuccessful with its strategy to reduce debt and interest expense, or is unsuccessful in renegotiating its secured credit facility, which matures in October 2018, or is unable to secure alternative liquidity sources, it may not have the liquidity to fund its operations after that maturity date. Failure to maintain compliance with these and other covenants in our agreements or failure to renew or replace liquidity available under the secured credit facility could have a material, adverse effect on Ferrellgas, L.P.'s operating capacity and cash flows and could further restrict Ferrellgas, L.P.'s ability to incur debt, pay interest on the notes or to make cash distributions to its limited and general partners, which could result in an event of default that would permit the acceleration of all of Ferrellgas, L.P.'s indebtedness. The accelerated debt would become immediately due and payable, which would in turn trigger cross-acceleration under other debt. If the payment of Ferrellgas, L.P.'s debt is accelerated, Ferrellgas, L.P.'s assets may be insufficient to repay such debt in full and Ferrellgas, L.P. may be unable to borrow sufficient funds to refinance debt, in which case the limited and general partners and investors in our debt instruments could experience a partial or total loss of their investment. As a result of the October 2018 maturity date of Ferrellgas, L.P.'s secured credit facility, the entire balance outstanding at October 31, 2017 has been classified as a current liability in the condensed consolidated balance sheet as of October 31, 2017. The absence of a plan to renew or refinance this debt would raise substantial doubt about Ferrellgas, L.P.'s ability to continue as a going concern. Ferrellgas, L.P. is working to renew or replace the secured credit facility. Potential options may include extending the current secured credit facility, entering into a new secured credit facility or securing alternative financing from a different source. Ferrellgas, L.P. believes it is probable that it will be able to obtain sufficient capital to meet anticipated liquidity demands and, therefore, does not believe there is substantial doubt about our ability to continue as a going concern. Secured credit facility On April 28, 2017, Ferrellgas, L.P. entered into sixth amendment to its secured credit facility primarily to modify the maximum consolidated leverage ratio covenant and the consolidated interest coverage ratio covenant. The amendment to our secured credit facility also (1) reduces the amounts available to be borrowed from $700 million to $575 million, (2) increases the pricing of loans when our leverage ratio is greater than or equal to 6.00x from LIBOR plus 3.50% to LIBOR plus 3.75% and when our leverage ratio is greater than or equal to 7.00x from LIBOR plus 3.50% to LIBOR plus 4.00%, (3) limits the amount of distributions (other than distributions to Ferrellgas Partners for payments of interest payable on its unsecured notes) that the operating partnership may make to Ferrellgas Partners to $10 million per quarter (Ferrellgas Partners' current distribution rate is $9.8 million per quarter) until the leverage ratio is less than 5.50x, (4) reduces the amount of investments we can make when our leverage ratio is greater than 5.50x from $200 million to $50 million, and (5) requires us to reduce our secured credit facility with 50% of the net cash proceeds received from any equity sale. As of October 31, 2017, Ferrellgas, L.P. had total borrowings outstanding under its secured credit facility of $263.2 million, all of which was classified as short-term. Ferrellgas, L.P. had $139.8 million of capacity under the secured credit facility as of October 31, 2017. However, the consolidated leverage ratio covenant under this facility limited additional borrowings to $40.6 million as of October 31, 2017. As of July 31, 2017, Ferrellgas, L.P. had total borrowings outstanding under its secured credit facility of $245.5 million, of which $185.7 million was classified as long-term debt. Ferrellgas, L.P. had $190.3 million of capacity under our secured credit facility as of July 31, 2017. However, the consolidated leverage ratio covenant under this facility limited additional borrowings to $67.5 million as of July 31, 2017. Borrowings outstanding at October 31, 2017 and July 31, 2017 under the secured credit facility had weighted average interest rates of 5.9% and 6.0%, respectively. The obligations under this credit facility are secured by substantially all assets of Ferrellgas, L.P., the general partner and certain subsidiaries of Ferrellgas, L.P. but specifically excluding (a) assets that are subject to Ferrellgas, L.P.’s accounts receivable securitization facility, (b) the general partner’s equity interests in Ferrellgas Partners and (c) equity interest in certain unrestricted subsidiaries. Such obligations are also guaranteed by the general partner and certain subsidiaries of Ferrellgas, L.P. Letters of credit outstanding at October 31, 2017 totaled $172.0 million and were used to secure commodity hedges, product purchases, and insurance arrangements. Letters of credit outstanding at July 31, 2017 totaled $139.2 million and were used to secure commodity hedges, product purchases, and insurance arrangements. At October 31, 2017, Ferrellgas, L.P. had remaining letter of credit capacity of $28.0 million. At July 31, 2017 Ferrellgas, L.P. had remaining letter of credit capacity of $60.8 million. |
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Partners' Capital | Partners' deficit As of October 31, 2017 and July 31, 2017, Ferrellgas Partners limited partner units, which are listed on the New York Stock Exchange under the symbol “FGP,” were beneficially owned by the following:
(1) Ferrell Companies is the owner of the general partner and is an approximate 23% direct owner of Ferrellgas Partners' common units and thus a related party. Ferrell Companies also beneficially owns 195,686 and 51,204 common units of Ferrellgas Partners held by FCI Trading Corp. ("FCI Trading") and Ferrell Propane, Inc. ("Ferrell Propane"), respectively, bringing Ferrell Companies' beneficial ownership to 23.4% at October 31, 2017. (2) FCI Trading is an affiliate of the general partner and thus a related party. (3) Ferrell Propane is controlled by the general partner and thus a related party. (4) James E. Ferrell is the Interim Chief Executive Officer and President of the general partner; and is Chairman of the Board of Directors of the general partner and thus a related party. JEF Capital Management owns 4,758,859 of these common units and is wholly-owned by the James E. Ferrell Revocable Trust Two for which James E. Ferrell is the trustee and sole beneficiary. The remaining 4,616 common units are held by Ferrell Resources Holding, Inc., which is wholly-owned by the James E. Ferrell Revocable Trust One, for which James E. Ferrell is the trustee and sole beneficiary. Partnership distributions paid Ferrellgas Partners has paid the following distributions:
On November 16, 2017, Ferrellgas Partners declared a cash distribution of $0.10 per common unit for the three months ended October 31, 2017, which is expected to be paid on December 15, 2017. Included in this cash distribution are the following amounts to be paid to related parties:
See additional discussions about transactions with related parties in Note I – Transactions with related parties. Accumulated other comprehensive income (loss) (“AOCI”) See Note H – Derivative instruments and hedging activities – for details regarding changes in the fair value of risk management financial derivatives recorded within AOCI for the three months ended October 31, 2017 and 2016. General partner’s commitment to maintain its capital account Ferrellgas’ partnership agreements allow the general partner to have an option to maintain its effective 2% general partner interest concurrent with the issuance of other additional equity. During the three months ended October 31, 2017, the general partner made non-cash contributions of $0.1 million to Ferrellgas to maintain its effective 2% general partner interest. During the three months ended October 31, 2016, the general partner made non-cash contributions of $0.1 million to Ferrellgas to maintain its effective 2% general partner interest. |
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Ferrellgas, L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partners' Capital | Partners’ deficit Partnership distributions paid Ferrellgas, L.P. has paid the following distributions:
On November 16, 2017, Ferrellgas, L.P. declared distributions for the three months ended October 31, 2017 to Ferrellgas Partners and the general partner of $25.2 million and $0.3 million, respectively, which are expected to be paid on December 15, 2017. See additional discussions about transactions with related parties in Note I – Transactions with related parties. Accumulated other comprehensive income (loss) (“AOCI”) See Note H – Derivative instruments and hedging activities – for details regarding changes in the fair value of risk management financial derivatives recorded within AOCI for the three months ended October 31, 2017 and 2016. General partner’s commitment to maintain its capital account Ferrellgas, L.P.’s partnership agreement allows the general partner to have an option to maintain its 1.0101% general partner interest concurrent with the issuance of other additional equity. During the three months ended October 31, 2017, the general partner made non-cash contributions of $0.1 million to Ferrellgas, L.P. to maintain its 1.0101% general partner interest. During the three months ended October 31, 2016, the general partner made non-cash contributions of $0.1 million to Ferrellgas, L.P. to maintain its 1.0101% general partner interest. |
Fair Value Measurements |
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Fair Value Measurements | Fair value measurements Derivative financial instruments The following table presents Ferrellgas’ financial assets and financial liabilities that are measured at fair value on a recurring basis for each of the fair value hierarchy levels, including both current and noncurrent portions, as of October 31, 2017 and July 31, 2017:
Methodology The fair values of Ferrellgas’ non-exchange traded commodity derivative contracts are based upon indicative price quotations available through brokers, industry price publications or recent market transactions and related market indicators. The fair values of interest rate swap contracts are based upon third-party quotes or indicative values based on recent market transactions. Other financial instruments The carrying amounts of other financial instruments included in current assets and current liabilities (except for current maturities of long-term debt) approximate their fair values because of their short-term nature. The estimated fair value of the Jamex note receivable, a financial instrument classified in "Other assets, net" on the condensed consolidated balance sheet, is approximately $36.4 million, or $3.8 million less than its carrying amount as of October 31, 2017. The estimated fair value of the Jamex note receivable was calculated using a discounted cash flow method which relied on significant unobservable inputs. At October 31, 2017 and July 31, 2017, the estimated fair value of Ferrellgas’ long-term debt instruments was $1,704.4 million and $1,966.6 million, respectively. Ferrellgas estimates the fair value of long-term debt based on quoted market prices. The fair value of our consolidated debt obligations is a Level 2 valuation based on the observable inputs used for similar liabilities. Ferrellgas has other financial instruments such as trade accounts receivable which could expose it to concentrations of credit risk. The credit risk from trade accounts receivable is limited because of a large customer base which extends across many different U.S. markets. |
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Ferrellgas, L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair value measurements Derivative financial instruments The following table presents Ferrellgas, L.P.’s financial assets and financial liabilities that are measured at fair value on a recurring basis for each of the fair value hierarchy levels, including both current and noncurrent portions, as of October 31, 2017 and July 31, 2017:
Methodology The fair values of Ferrellgas, L.P.’s non-exchange traded commodity derivative contracts are based upon indicative price quotations available through brokers, industry price publications or recent market transactions and related market indicators. The fair values of interest rate swap contracts are based upon third-party quotes or indicative values based on recent market transactions. Other financial instruments The carrying amounts of other financial instruments included in current assets and current liabilities (except for current maturities of long-term debt) approximate their fair values because of their short-term nature. The estimated fair value of the Jamex note receivable, a financial instrument classified in "Other assets, net" on the condensed consolidated balance sheet, is approximately $36.4 million, or $3.8 million less than its carrying amount as of October 31, 2017. The estimated fair value of the Jamex note receivable was calculated using a discounted cash flow method which relied on significant unobservable inputs. At October 31, 2017 and July 31, 2017, the estimated fair value of Ferrellgas, L.P.’s long-term debt instruments was $1,386.6 million and $1,645.3 million, respectively. Ferrellgas estimates the fair value of long-term debt based on quoted market prices. The fair value of our consolidated debt obligations is a Level 2 valuation based on the observable inputs used for similar liabilities. Ferrellgas, L.P. has other financial instruments such as trade accounts receivable which could expose it to concentrations of credit risk. The credit risk from trade accounts receivable is limited because of a large customer base which extends across many different U.S. markets. |
Derivative Instruments and Hedging Activities |
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Derivative Instruments and Hedging Activities | Derivative instruments and hedging activities Ferrellgas is exposed to certain market risks related to its ongoing business operations. These risks include exposure to changing commodity prices as well as fluctuations in interest rates. Ferrellgas utilizes derivative instruments to manage its exposure to fluctuations in commodity prices. Of these, the propane commodity derivative instruments are designated as cash flow hedges. All other commodity derivative instruments do not qualify or are not designated as cash flow hedges, therefore, the change in their fair value are recorded currently in earnings. Ferrellgas also periodically utilizes derivative instruments to manage its exposure to fluctuations in interest rates. Derivative instruments and hedging activity During the three months ended October 31, 2017 and 2016, Ferrellgas did not recognize any gain or loss in earnings related to hedge ineffectiveness and did not exclude any component of financial derivative contract gains or losses from the assessment of hedge effectiveness related to commodity cash flow hedges. The following tables provide a summary of the fair value of derivatives in Ferrellgas’ condensed consolidated balance sheets as of October 31, 2017 and July 31, 2017:
Ferrellgas' exchange traded commodity derivative contracts require cash margin deposit as collateral for contracts that are in a negative mark-to-market position. These cash margin deposits will be returned if mark-to-market conditions improve or will be applied against cash settlement when the contracts are settled. Liabilities represent cash margin deposits received by Ferrellgas for contracts that are in a positive mark-to-market position. The following tables provide a summary of cash margin balances as of October 31, 2017 and July 31, 2017, respectively:
The following tables provide a summary of the effect on Ferrellgas' condensed consolidated statements of operations for the three months ended October 31, 2017 and 2016 due to derivatives designated as fair value hedging instruments:
The following tables provide a summary of the effect on Ferrellgas’ condensed consolidated statements of comprehensive income (loss) for the three months ended October 31, 2017 and 2016 due to derivatives designated as cash flow hedging instruments:
The following tables provide a summary of the effect on Ferrellgas' condensed consolidated statements of operations for the three months ended October 31, 2017 and 2016 due to the change in fair value of derivatives not designated as hedging instruments:
The changes in derivatives included in AOCI for the three months ended October 31, 2017 and 2016 were as follows:
Ferrellgas expects to reclassify net gains related to the risk management commodity derivatives of approximately $24.7 million to earnings during the next 12 months. These net gains are expected to be offset by decreased margins on propane sales commitments Ferrellgas has with its customers that qualify for the normal purchase normal sales exception. During the three months ended October 31, 2017, Ferrellgas had no reclassifications to operations resulting from the discontinuance of any cash flow hedges arising from the probability of the original forecasted transactions not occurring within the originally specified period of time defined within the hedging relationship. As of October 31, 2017, Ferrellgas had financial derivative contracts covering 3.2 million barrels of propane that were entered into as cash flow hedges of forward and forecasted purchases of propane. As of October 31, 2017, Ferrellgas had financial derivative contracts covering 0.3 million barrels of crude oil related to the hedging of crude oil line fill and inventory. Derivative financial instruments credit risk Ferrellgas is exposed to credit loss in the event of nonperformance by counterparties to derivative financial and commodity instruments. Ferrellgas’ counterparties principally consist of major energy companies and major U.S. financial institutions. Ferrellgas maintains credit policies with regard to its counterparties that it believes reduce its overall credit risk. These policies include evaluating and monitoring its counterparties’ financial condition, including their credit ratings, and entering into agreements with counterparties that govern credit limits. Certain of these agreements call for the posting of collateral by the counterparty or by Ferrellgas in the forms of letters of credit, parent guarantees or cash. Ferrellgas has concentrations of credit risk associated with derivative financial instruments held by certain derivative financial instrument counterparties. If these counterparties that make up the concentration failed to perform according to the terms of their contracts at October 31, 2017, the maximum amount of loss due to credit risk that, based upon the gross fair values of the derivative financial instruments, Ferrellgas would incur is $33.3 million. From time to time Ferrellgas enters into derivative contracts that have credit-risk-related contingent features which dictate credit limits based upon Ferrellgas' debt rating. There were no open derivative contracts with credit-risk-related contingent features as of October 31, 2017. |
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Ferrellgas, L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | Derivative instruments and hedging activities Ferrellgas, L.P. is exposed to certain market risks related to its ongoing business operations. These risks include exposure to changing commodity prices as well as fluctuations in interest rates. Ferrellgas, L.P. utilizes derivative instruments to manage its exposure to fluctuations in commodity prices. Of these, the propane commodity derivative instruments are designated as cash flow hedges. All other commodity derivative instruments do not qualify or are not designated as cash flow hedges, therefore, the change in their fair value are recorded currently in earnings. Ferrellgas, L.P. also periodically utilizes derivative instruments to manage its exposure to fluctuations in interest rates. Derivative instruments and hedging activities During the three months ended October 31, 2017 and 2016, Ferrellgas, L.P. did not recognize any gain or loss in earnings related to hedge ineffectiveness and did not exclude any component of financial derivative contract gains or losses from the assessment of hedge effectiveness related to commodity cash flow hedges. The following tables provide a summary of the fair value of derivatives in Ferrellgas, L.P.’s condensed consolidated balance sheets as of October 31, 2017 and July 31, 2017:
Ferrellgas, L.P.'s exchange traded commodity derivative contracts require cash margin deposit as collateral for contracts that are in a negative mark-to-market position. These cash margin deposits will be returned if mark-to-market conditions improve or will be applied against cash settlement when the contracts are settled. Liabilities represent cash margin deposits received by Ferrellgas, L.P. for contracts that are in a positive mark-to-market position. The following tables provide a summary of cash margin balances as of October 31, 2017 and July 31, 2017, respectively:
The following table provides a summary of the effect on Ferrellgas, L.P.’s condensed consolidated statements of operations for the three months ended October 31, 2017 and 2016 due to derivatives designated as fair value hedging instruments:
The following tables provide a summary of the effect on Ferrellgas, L.P.’s condensed consolidated statements of comprehensive income (loss) for the three months ended October 31, 2017 and 2016 due to derivatives designated as cash flow hedging instruments:
The following tables provide a summary of the effect on Ferrellgas, L.P.'s condensed consolidated statements of operations for the three months ended October 31, 2017 and 2016 due to the change in fair value of derivatives not designated as hedging instruments:
The changes in derivatives included in AOCI for the three months ended October 31, 2017 and 2016 were as follows:
Ferrellgas, L.P. expects to reclassify net gains related to the risk management commodity derivatives of approximately $24.7 million to earnings during the next 12 months. These net gains are expected to be offset by decreased margins on propane sales commitments Ferrellgas, L.P. has with its customers that qualify for the normal purchase normal sales exception. During the three months ended October 31, 2017 and 2016, Ferrellgas, L.P. had no reclassifications to operations resulting from the discontinuance of any cash flow hedges arising from the probability of the original forecasted transactions not occurring within the originally specified period of time defined within the hedging relationship. As of October 31, 2017, Ferrellgas, L.P. had financial derivative contracts covering 3.2 million barrels of propane that were entered into as cash flow hedges of forward and forecasted purchases of propane. As of October 31, 2017, Ferrellgas, L.P. financial derivative contracts covering 0.3 million barrels of crude oil related to the hedging of crude oil line fill and inventory. Derivative financial instruments credit risk Ferrellgas, L.P. is exposed to credit loss in the event of nonperformance by counterparties to derivative financial and commodity instruments. Ferrellgas, L.P.’s counterparties principally consist of major energy companies and major U.S. financial institutions. Ferrellgas, L.P. maintains credit policies with regard to its counterparties that it believes reduces its overall credit risk. These policies include evaluating and monitoring its counterparties’ financial condition, including their credit ratings, and entering into agreements with counterparties that govern credit limits. Certain of these agreements call for the posting of collateral by the counterparty or by Ferrellgas, L.P. in the forms of letters of credit, parent guarantees or cash. Ferrellgas, L.P. has concentrations of credit risk associated with derivative financial instruments held by certain derivative financial instrument counterparties. If these counterparties that make up the concentration failed to perform according to the terms of their contracts at October 31, 2017, the maximum amount of loss due to credit risk that, based upon the gross fair values of the derivative financial instruments, Ferrellgas, L.P. would incur is $33.3 million. From time to time Ferrellgas, L.P. enters into derivative contracts that have credit-risk-related contingent features which dictate credit limits based upon Ferrellgas, L.P.’s debt rating. There were no open derivative contracts with credit-risk-related contingent features as of October 31, 2017. |
Transactions With Related Parties |
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Transactions With Related Parties | Transactions with related parties Ferrellgas has no employees and is managed and controlled by its general partner. Pursuant to Ferrellgas’ partnership agreements, the general partner is entitled to reimbursement for all direct and indirect expenses incurred or payments it makes on behalf of Ferrellgas and all other necessary or appropriate expenses allocable to Ferrellgas or otherwise reasonably incurred by its general partner in connection with operating Ferrellgas’ business. These costs primarily include compensation and benefits paid to employees of the general partner who perform services on Ferrellgas’ behalf and are reported in the condensed consolidated statements of operations as follows:
See additional discussions about transactions with the general partner and related parties in Note F – Partners’ deficit. |
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Ferrellgas, L.P. [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transactions With Related Parties | Transactions with related parties Ferrellgas, L.P. has no employees and is managed and controlled by its general partner. Pursuant to Ferrellgas, L.P.’s partnership agreement, the general partner is entitled to reimbursement for all direct and indirect expenses incurred or payments it makes on behalf of Ferrellgas, L.P. and all other necessary or appropriate expenses allocable to Ferrellgas, L.P. or otherwise reasonably incurred by its general partner in connection with operating Ferrellgas, L.P.’s business. These costs primarily include compensation and benefits paid to employees of the general partner who perform services on Ferrellgas, L.P.’s behalf and are reported in the condensed consolidated statements of operations as follows:
See additional discussions about transactions with the general partner and related parties in Note F – Partners’ deficit. |
Contingencies And Commitments |
3 Months Ended |
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Oct. 31, 2017 | |
Contingencies And Commitments | Contingencies and commitments Litigation Ferrellgas’ operations are subject to all operating hazards and risks normally incidental to handling, storing, transporting and otherwise providing for use by consumers of combustible liquids such as propane and crude oil. As a result, at any given time, Ferrellgas can be threatened with or named as a defendant in various lawsuits arising in the ordinary course of business. Other than as discussed below, Ferrellgas is not a party to any legal proceedings other than various claims and lawsuits arising in the ordinary course of business. It is not possible to determine the ultimate disposition of these matters; however, management is of the opinion that there are no known claims or contingent claims that are reasonably expected to have a material adverse effect on the consolidated financial condition, results of operations and cash flows of Ferrellgas. Ferrellgas has been named as a defendant, along with a competitor, in putative class action lawsuits filed in multiple jurisdictions. The lawsuits, which were consolidated in the Western District of Missouri on October 16, 2014, allege that Ferrellgas and a competitor coordinated in 2008 to reduce the fill level in barbeque cylinders and combined to persuade a common customer to accept that fill reduction, resulting in increased cylinder costs to direct customers and end-user customers in violation of federal and certain state antitrust laws. The lawsuits seek treble damages, attorneys’ fees, injunctive relief and costs on behalf of the putative class. These lawsuits have been consolidated into one case by a multidistrict litigation panel. The Federal Court for the Western District of Missouri has dismissed all claims brought by direct and indirect customers other than state law claims of indirect customers under Wisconsin, Maine and Vermont law. The direct customer plaintiffs filed an appeal, which resulted in a reversal of the district court’s dismissal. We have filed a petition for a writ of certiorari with the U.S. Supreme Court. The direct customer plaintiffs have agreed to a stay of the case pending a decision on the petition and, if granted, the appeal. An appeal by the indirect customer plaintiffs remains pending. Ferrellgas believes it has strong defenses to the claims and intends to vigorously defend against the consolidated case. Ferrellgas does not believe loss is probable or reasonably estimable at this time related to the putative class action lawsuit. Ferrellgas has been named, along with several current and former officers, in several class action lawsuits alleging violations of certain securities laws based on alleged materially false and misleading statements in certain of our public disclosures. The lawsuits, the first of which was filed on October 6, 2016 in the Southern District of New York, seek unspecified compensatory damages. Derivative lawsuits with similar allegations have been filed naming Ferrellgas and several current and former officers and directors as defendants. Ferrellgas believes that it has defenses and will vigorously defend these cases. Ferrellgas does not believe loss is probable or reasonably estimable at this time related to the putative class action lawsuits or the derivative action. Ferrellgas and Bridger Logistics, LLC, have been named, along with two former officers, in a lawsuit filed by Eddystone Rail Company ("Eddystone") on February 2, 2017 in the Eastern District of Pennsylvania (the "EDPA Lawsuit"). Eddystone indicated that it has prevailed or settled an arbitration against Jamex Transfer Services (“JTS”), then named Bridger Transfer Services, a former subsidiary of Bridger Logistics, LLC (“Bridger”). The arbitration involved a claim against JTS for money due for deficiency payments under a contract for the use of an Eddystone facility used to offload crude from rail onto barges. Eddystone alleges that Ferrellgas transferred assets out of JTS prior to the sale of the membership interest in JTS to Jamex Transfer Holdings, and that those transfers should be avoided so that the assets can be used to satisfy the amount owed by JTS to Eddystone under the arbitration. Eddystone also alleges that JTS was an “alter ego” of Bridger and Ferrellgas. Ferrellgas believes that Ferrellgas and Bridger have valid defenses to these claims and to Eddystone’s primary claim against JTS on the contract claim. The lawsuit does not specify a specific amount of damages that Eddystone is seeking; however, Ferrellgas believes that the amount of such damage claims, if ultimately owed to Eddystone, could be material to Ferrellgas. Ferrellgas intends to vigorously defend this claim. The lawsuit is in its early stages; as such, management does not currently believe a loss is probable or reasonably estimable at this time. On August 24, 2017, Ferrellgas filed a third-party complaint against JTS, Jamex Transfer Holdings, and other related persons and entities (the "Third-Party Defendants"), asserting claims for breach of contract, indemnification of any losses in the EDPA Lawsuit, tortious interference with contract, and contribution. The Third-Party Defendants have filed motions to dismiss the third-party complaint for alleged lack of personal jurisdiction, failure to state claim, and forum non-conveniens. Ferrellgas is vigorously opposing these motions. |
Ferrellgas Partners Finance Corp. [Member] | |
Contingencies And Commitments | Contingencies and commitments The Finance Corp. serves as co-issuer and co-obligor for debt securities of the Partnership. The indenture governing the senior unsecured notes contains various restrictive covenants applicable to the Partnership and its subsidiaries, the most restrictive relating to additional indebtedness and restricted payments. As of October 31, 2017, the Partnership is in compliance with all requirements, tests, limitations and covenants related to this debt agreement, except for the consolidated fixed charge coverage ratio. The indenture governing the outstanding notes of the Partnership includes a consolidated fixed charge coverage ratio test for the incurrence of debt and the making of restricted payments. This covenant requires that the ratio of trailing four quarters EBITDA to interest expense (both as adjusted for certain, specified items) of the Partnership be at least 1.75x before a restricted payment (as defined in the indenture) can be made by the Partnership. If this ratio were to drop below 1.75x, the indenture allows the Partnership to make restricted payments of up to $50.0 million in total over a 16 quarter period while below this ratio. As of October 31, 2017, the ratio was 1.44x. As a result, the $9.8 million distribution to be paid to common unitholders on December 15, 2017 will be taken from the $50.0 million restricted payment limitation, which after considering the $9.8 million deduction taken as a result of the distribution paid in September 2017, leaves $30.4 million for future restricted payments. Unless the indenture governing the outstanding notes is amended or refinanced, if our consolidated fixed charge coverage ratio does not improve to at least 1.75x and we continue our current quarterly distribution rate of $0.10 per common unit, this covenant will not allow us to make common unit distributions for our quarter ending October 31, 2018 and beyond. |
Ferrellgas, L.P. [Member] | |
Contingencies And Commitments | Contingencies and commitments Litigation Ferrellgas, L.P.’s operations are subject to all operating hazards and risks normally incidental to handling, storing, transporting and otherwise providing for use by consumers of combustible liquids such as propane and crude oil. As a result, at any given time, Ferrellgas, L.P. can be threatened with or named as a defendant in various lawsuits arising in the ordinary course of business. Other than as discussed below, Ferrellgas, L.P. is not a party to any legal proceedings other than various claims and lawsuits arising in the ordinary course of business. It is not possible to determine the ultimate disposition of these matters; however, management is of the opinion that there are no known claims or contingent claims that are reasonably expected to have a material adverse effect on the consolidated financial condition, results of operations and cash flows of Ferrellgas, L.P. Ferrellgas, L.P. has been named as a defendant, along with a competitor, in putative class action lawsuits filed in multiple jurisdictions. The lawsuits, which were consolidated in the Western District of Missouri on October 16, 2014, allege that Ferrellgas, L.P. and a competitor coordinated in 2008 to reduce the fill level in barbeque cylinders and combined to persuade a common customer to accept that fill reduction, resulting in increased cylinder costs to direct customers and end-user customers in violation of federal and certain state antitrust laws. The lawsuits seek treble damages, attorneys’ fees, injunctive relief and costs on behalf of the putative class. These lawsuits have been consolidated into one case by a multidistrict litigation panel. The Federal Court for the Western District of Missouri has dismissed all claims brought by direct and indirect customers other than state law claims of indirect customers under Wisconsin, Maine and Vermont law. The direct customer plaintiffs filed an appeal, which resulted in a reversal of the district court’s dismissal. We have filed a petition for a writ of certiorari with the U.S. Supreme Court. The direct customer plaintiffs have agreed to a stay of the case pending a decision on the petition and, if granted, the appeal. An appeal by the indirect customer plaintiffs remains pending. Ferrellgas, L.P. believes it has strong defenses to the claims and intends to vigorously defend against the consolidated case. Ferrellgas, L.P. does not believe loss is probable or reasonably estimable at this time related to the putative class action lawsuit. Ferrellgas, L.P. has been named, along with several current and former officers, in several class action lawsuits alleging violations of certain securities laws based on alleged materially false and misleading statements in certain of our public disclosures. The lawsuits, the first of which was filed on October 6, 2016 in the Southern District of New York, seek unspecified compensatory damages. Derivative lawsuits with similar allegations have been filed naming Ferrellgas, L.P. and several current and former officers and directors as defendants. Ferrellgas, L.P. believes that it has defenses and will vigorously defend these cases. Ferrellgas, L.P. does not believe loss is probable or reasonably estimable at this time related to the putative class action lawsuits or the derivative action. Ferrellgas, L.P. and Bridger Logistics, LLC, have been named, along with two former officers, in a lawsuit filed by Eddystone Rail Company ("Eddystone") on February 2, 2017 in the Eastern District of Pennsylvania (the "EDPA Lawsuit"). Eddystone indicated that it has prevailed or settled an arbitration against Jamex Transfer Services (“JTS”), then named Bridger Transfer Services, a former subsidiary of Bridger Logistics, LLC (“Bridger”). The arbitration involved a claim against JTS for money due for deficiency payments under a contract for the use of an Eddystone facility used to offload crude from rail onto barges. Eddystone alleges that Ferrellgas, L.P. transferred assets out of JTS prior to the sale of the membership interest in JTS to Jamex Transfer Holdings, and that those transfers should be avoided so that the assets can be used to satisfy the amount owed by JTS to Eddystone under the arbitration. Eddystone also alleges that JTS was an “alter ego” of Bridger and Ferrellgas. Ferrellgas, L.P. believes that Ferrellgas, L.P. and Bridger have valid defenses to these claims and to Eddystone’s primary claim against JTS on the contract claim. The lawsuit does not specify a specific amount of damages that Eddystone is seeking; however, Ferrellgas, L.P. believes that the amount of such damage claims, if ultimately owed to Eddystone, could be material to Ferrellgas, L.P. Ferrellgas, L.P. intends to vigorously defend this claim. The lawsuit is in its early stages; as such, management does not currently believe a loss is probable or reasonably estimable at this time. On August 24, 2017, Ferrellgas, L.P. filed a third-party complaint against JTS, Jamex Transfer Holdings, and other related persons and entities (the "Third-Party Defendants"), asserting claims for breach of contract, indemnification of any losses in the EDPA Lawsuit, tortious interference with contract, and contribution. The Third-Party Defendants have filed motions to dismiss the third-party complaint for alleged lack of personal jurisdiction, failure to state claim, and forum non-conveniens. Ferrellgas, L.P. is vigorously opposing these motions. |
Ferrellgas Finance Corp. [Member] | |
Contingencies And Commitments | Contingencies and commitments The Finance Corp. serves as co-issuer and co-obligor for debt securities of the Partnership. The indentures governing the senior notes agreements contains various restrictive covenants applicable to the Partnership and its subsidiaries, the most restrictive relating to additional indebtedness and restricted payments. As of October 31, 2017, the Partnership is in compliance with all requirements, tests, limitations and covenants related to these debt agreements. |
Net Earnings (Loss) Per Common Unitholders' Interest |
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Net Earning Per Common Unitholders' Interest | Net earnings (loss) per common unitholders’ interest Below is a calculation of the basic and diluted net earnings (loss) per common unitholders’ interest in the condensed consolidated statements of operations for the periods indicated. Ferrellgas calculates 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 according to the incentive distribution rights in the Ferrellgas partnership agreement. Due to the seasonality of the propane business, the dilutive effect of the two-class method typically impacts only the three months ending January 31. 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 as follows:
There was no dilutive effect resulting from this method based on basic and diluted net earnings (loss) per common unitholders' interest for the three months ended October 31, 2017 or 2016. In periods with net losses, the allocation of the net losses to the limited partners and the general partner will be determined based on the same allocation basis specified in Ferrellgas Partners’ partnership agreement that would apply to periods in which there were no undistributed earnings. Additionally, there are no dilutive securities in periods with net losses.
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Segment Reporting Segment Reporting |
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Segment Reporting Disclosure | Segment reporting Ferrellgas has two primary operations that result in two reportable operating segments: propane operations and related equipment sales and midstream operations. Until April 2017, Ferrellgas utilized a structure that included two reportable segments which included propane operations and related equipment sales segment and the midstream operations - crude oil logistics segment. The results from midstream operations - water solutions segment were reported within Corporate and other. As a result of a change in the way management is evaluating results and allocating resources, results of the water solutions business are now included in the Midstream operations segment for all periods presented. Following is a summary of segment information for the three months ended October 31, 2017 and 2016:
(1) Direct costs are comprised of "cost of products sold-propane and other gas liquids sales", "cost of products sold-midstream operations", "cost of products sold-other", "operating expense", "general and administrative expense", and "equipment lease expense" less "non-cash stock-based compensation charge", "change in fair value of contingent consideration", "severance charge", "litigation accrual and related legal fees associated with a class action lawsuit", "unrealized (non-cash) loss (gain) on changes in fair value of derivatives not designated as hedging instruments" and "acquisition and transition expenses". Following is a reconciliation of Ferrellgas' total segment performance measure to condensed consolidated net earnings (loss):
Following are total assets by segment:
Following are capital expenditures by segment:
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Ferrellgas, L.P. [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Disclosure | Segment reporting Ferrellgas, L.P. has two primary operations that result in two reportable operating segments: propane operations and related equipment sales and midstream operations. Until April 2017, Ferrellgas, L.P. utilized a structure that included two reportable segments which included propane operations and related equipment sales segment and the midstream operations - crude oil logistics segment. The results from midstream operations - water solutions segment were reported within Corporate and other. As a result of a change in the way management is evaluating results and allocating resources, results of the water solutions business are now included in the Midstream operations segment for all periods presented. Following is a summary of segment information for the three months ended October 31, 2017 and 2016:
(1) Direct costs are comprised of "cost of sales-propane and other gas liquids sales", "cost of products sold-midstream operations", "cost of products sold-other", "operating expense", "general and administrative expense", and "equipment lease expense" less "non-cash stock-based compensation charge", "change in fair value of contingent consideration", "severance charge", "litigation accrual and related legal fees associated with a class action lawsuit", "unrealized (non-cash) loss (gain) on changes in fair value of derivatives not designated as hedging instruments" and "acquisition and transition expenses". Following is a reconciliation of Ferrellgas, L.P.'s total segment performance measure to condensed consolidated net earnings (loss):
Following are total assets by segment:
Following are capital expenditures by segment:
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Guarantor financial information |
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Ferrellgas, L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantor financial information | Guarantor financial information The $500.0 million aggregate principal amount of 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.
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Subsequent Events |
3 Months Ended |
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Oct. 31, 2017 | |
Subsequent Events | Subsequent events Ferrellgas evaluated events and transactions occurring after the balance sheet date through the date Ferrellgas' condensed consolidated financial statements were issued and concluded that there were no events or transactions occurring during this period that require recognition or disclosure in its condensed consolidated financial statements. |
Ferrellgas, L.P. [Member] | |
Subsequent Events | Subsequent events Ferrellgas, L.P. evaluated events and transactions occurring after the balance sheet date through the date Ferrellgas L.P.'s condensed consolidated financial statements were issued and concluded that there were no events or transactions occurring during this period that require recognition or disclosure in its condensed consolidated financial statements. |
Summary Of Significant Accounting Policies (Policy) |
3 Months Ended |
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Oct. 31, 2017 | |
Significant Accounting Policies [Line Items] | |
Accounting estimates | Accounting estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from these estimates. Significant estimates impacting the consolidated financial statements include accruals that have been established for contingent liabilities, pending claims and legal actions arising in the normal course of business, useful lives of property, plant and equipment assets, residual values of tanks, capitalization of customer tank installation costs, amortization methods of intangible assets, valuation methods used to value sales returns and allowances, allowance for doubtful accounts, fair value of reporting units, recoverability of long-lived assets, assumptions used to value business combinations, fair values of derivative contracts and stock-based compensation calculations. |
New Accounting Pronouncements | New accounting standards: FASB Accounting Standard Update No. 2014-09 In May 2014, the Financial Accounting Standards Board, ("FASB") issued Accounting Standard Update ("ASU") 2014-09, Revenue from Contracts with Customers. The issuance is part of a joint effort by the FASB and the International Accounting Standards Board ("IASB") to enhance financial reporting by creating common revenue recognition guidance for U.S. GAAP and International Financial Reporting Standards ("IFRS") and, thereby, improving the consistency of requirements, comparability of practices and usefulness of disclosures. The new standard will supersede much of the existing authoritative literature for revenue recognition. The standard and related amendments will be effective for Ferrellgas for its annual reporting period beginning August 1, 2018, including interim periods within that reporting period. Entities are allowed to transition to the new standard by either recasting prior periods or recognizing the cumulative effect. Ferrellgas is currently evaluating the newly issued guidance, including which transition approach will be applied and the estimated impact it will have on the consolidated financial statements. Ferrellgas has formed an implementation team, completed training on the new standard, prepared an initial assessment and is continuing to review its contracts with customers. FASB Accounting Standard Update No. 2015-11 In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330) - Simplifying the Measurement of Inventory, which requires that inventory within the scope of the guidance be measured at the lower of cost or net realizable value. We adopted ASU 2015-11 effective August 1, 2017. The adoption of this standard did not materially impact our consolidated financial statements. FASB Accounting Standard Update No. 2016-02 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Ferrellgas is currently evaluating the impact of its pending adoption of ASU 2016-02 on the consolidated financial statements. Ferrellgas has formed an implementation team, completed training on the new standard, and is working on an initial assessment. FASB Accounting Standard Update No. 2016-13 In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) which requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. This standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Entities will apply the standard's provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. Ferrellgas is currently evaluating the impact of its pending adoption of this standard on the consolidated financial statements. FASB Accounting Standard Update No. 2017-12 In August 2017, the FASB issued ASU 2017-12, Financial Instruments - Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting for Hedging Activities which is intended to improve the financial reporting for hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. This standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Ferrellgas is currently evaluating the impact of its pending adoption of this standard on the consolidated financial statements. |
Ferrellgas, L.P. [Member] | |
Significant Accounting Policies [Line Items] | |
Accounting estimates | Accounting estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from these estimates. Significant estimates impacting the consolidated financial statements include accruals that have been established for contingent liabilities, pending claims and legal actions arising in the normal course of business, useful lives of property, plant and equipment assets, residual values of tanks, capitalization of customer tank installation costs, amortization methods of intangible assets, valuation methods used to value sales returns and allowances, allowance for doubtful accounts, fair value of reporting units, recoverability of long-lived assets, assumptions used to value business combinations, fair values of derivative contracts and stock-based compensation calculations. |
New Accounting Pronouncements | New accounting standards: FASB Accounting Standard Update No. 2014-09 In May 2014, the Financial Accounting Standards Board, ("FASB") issued Accounting Standard Update ("ASU") 2014-09, Revenue from Contracts with Customers. The issuance is part of a joint effort by the FASB and the International Accounting Standards Board ("IASB") to enhance financial reporting by creating common revenue recognition guidance for U.S. GAAP and International Financial Reporting Standards ("IFRS") and, thereby, improving the consistency of requirements, comparability of practices and usefulness of disclosures. The new standard will supersede much of the existing authoritative literature for revenue recognition. The standard and related amendments will be effective for Ferrellgas, L.P. for its annual reporting period beginning August 1, 2018, including interim periods within that reporting period. Entities are allowed to transition to the new standard by either recasting prior periods or recognizing the cumulative effect. Ferrellgas, L.P. is currently evaluating the newly issued guidance, including which transition approach will be applied and the estimated impact it will have on the consolidated financial statements. Ferrellgas, L.P. has formed an implementation team, completed training on the new standard, prepared an initial assessment and is continuing to review its contracts with customers. FASB Accounting Standard Update No. 2015-11 In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330) - Simplifying the Measurement of Inventory, which requires that inventory within the scope of the guidance be measured at the lower of cost or net realizable value. We adopted ASU 2015-11 effective August 1, 2017. The adoption of this standard did not materially impact our consolidated financial statements. FASB Accounting Standard Update No. 2016-02 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Ferrellgas, L.P. is currently evaluating the impact of our pending adoption of ASU 2016-02 on the consolidated financial statements. Ferrellgas, L.P. has formed an implementation team, completed training on the new standard, and is working on an initial assessment. FASB Accounting Standard Update No. 2016-13 In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) which requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. This standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Entities will apply the standard's provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. Ferrellgas, L.P. is currently evaluating the impact of its pending adoption of this standard on the consolidated financial statements. FASB Accounting Standard Update No. 2017-12 In August 2017, the FASB issued ASU 2017-12, Financial Instruments - Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting for Hedging Activities which is intended to improve the financial reporting for hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. This standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Ferrellgas, L.P. is currently evaluating the impact of its pending adoption of this standard on the consolidated financial statements. |
Supplemental Financial Statement Information (Tables) |
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Oct. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | Inventories consist of the following:
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Other Assets Disclosure [Text Block] | Other assets, net consist of the following:
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Other Current Liabilities | Other current liabilities consist of the following:
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Shipping And Handling Expenses | Shipping and handling expenses are classified in the following condensed consolidated statements of operations line items:
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Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Certain cash flow and significant non-cash activities are presented below:
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Ferrellgas, L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | Inventories consist of the following:
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Other Assets Disclosure [Text Block] | Other assets, net consist of the following:
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Other Current Liabilities | Other current liabilities consist of the following:
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Shipping And Handling Expenses | Shipping and handling expenses are classified in the following condensed consolidated statements of operations line items:
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Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Certain cash flow and significant non-cash activities are presented below:
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Accounts And Notes Receivable, Net And Accounts Receivable Securitization (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts And Notes Receivable, Net | Accounts and notes receivable, net consist of the following:
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Ferrellgas, L.P. [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts And Notes Receivable, Net | Accounts and notes receivable, net consist of the following:
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Accounts And Notes Receivable, Net And Accounts Receivable Securitization Accounts And Notes Receivable, Net Accounts Receivable Securitization (Maximum Leverage Ratio table) (Tables) |
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Oct. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum Leverage Ratio Table | The current maximum consolidated leverage covenant ratios are as follows:
The current maximum consolidated leverage covenant ratios are as follows:
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Ferrellgas, L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum Leverage Ratio Table | The current maximum consolidated leverage covenant ratios are as follows:
The current maximum consolidated leverage covenant ratios are as follows:
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Accounts And Notes Receivable, Net And Accounts Receivable Securitization Accounts And Notes Receivable, Net And Accounts Receivable Securitization (Consolidated Interest Coverage Ratio) (Tables) |
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Oct. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Line of Credit Facilities [Table Text Block] | The current minimum consolidated interest coverage ratios are as follows:
The current minimum consolidated interest coverage ratios are as follows:
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Ferrellgas, L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Line of Credit Facilities [Table Text Block] | The current minimum consolidated interest coverage ratios are as follows:
The current minimum consolidated interest coverage ratios are as follows:
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Debt Debt (Tables) |
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Oct. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum Leverage Ratio Table | The current maximum consolidated leverage covenant ratios are as follows:
The current maximum consolidated leverage covenant ratios are as follows:
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Ferrellgas, L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum Leverage Ratio Table | The current maximum consolidated leverage covenant ratios are as follows:
The current maximum consolidated leverage covenant ratios are as follows:
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Debt Debt (Consolidated Interest Coverage Ratio) (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Line of Credit Facilities [Table Text Block] | The current minimum consolidated interest coverage ratios are as follows:
The current minimum consolidated interest coverage ratios are as follows:
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Ferrellgas, L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Line of Credit Facilities [Table Text Block] | The current minimum consolidated interest coverage ratios are as follows:
The current minimum consolidated interest coverage ratios are as follows:
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Partners' Capital (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Limited Partners' Capital Account by Class [Table Text Block] | As of October 31, 2017 and July 31, 2017, Ferrellgas Partners limited partner units, which are listed on the New York Stock Exchange under the symbol “FGP,” were beneficially owned by the following:
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Cash distributions | Ferrellgas Partners has paid the following distributions:
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Ferrellgas, L.P. [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash distributions | Ferrellgas, L.P. has paid the following distributions:
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Subsequent Event [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends expected to be paid to related parties | Included in this cash distribution are the following amounts to be paid to related parties:
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Fair Value Measurement (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair value assets and liabilities | The following table presents Ferrellgas’ financial assets and financial liabilities that are measured at fair value on a recurring basis for each of the fair value hierarchy levels, including both current and noncurrent portions, as of October 31, 2017 and July 31, 2017:
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Ferrellgas, L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair value assets and liabilities | The following table presents Ferrellgas, L.P.’s financial assets and financial liabilities that are measured at fair value on a recurring basis for each of the fair value hierarchy levels, including both current and noncurrent portions, as of October 31, 2017 and July 31, 2017:
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Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Derivatives Balance Sheet Locations | The following tables provide a summary of the fair value of derivatives in Ferrellgas’ condensed consolidated balance sheets as of October 31, 2017 and July 31, 2017:
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Schedule of Derivative Collateral | The following tables provide a summary of cash margin balances as of October 31, 2017 and July 31, 2017, respectively:
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Fair Value Hedge Derivative Effect on Earnings | The following tables provide a summary of the effect on Ferrellgas' condensed consolidated statements of operations for the three months ended October 31, 2017 and 2016 due to derivatives designated as fair value hedging instruments:
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Cash Flow Hedge Derivative Effect on Comprehensive Income | The following tables provide a summary of the effect on Ferrellgas’ condensed consolidated statements of comprehensive income (loss) for the three months ended October 31, 2017 and 2016 due to derivatives designated as cash flow hedging instruments:
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Derivatives not Designated as Hedging, Effect on Earnings | The following tables provide a summary of the effect on Ferrellgas' condensed consolidated statements of operations for the three months ended October 31, 2017 and 2016 due to the change in fair value of derivatives not designated as hedging instruments:
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Changes in Derivative Value Effect on Other Comprehensive Income (Loss) | The changes in derivatives included in AOCI for the three months ended October 31, 2017 and 2016 were as follows:
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Ferrellgas, L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Derivatives Balance Sheet Locations | The following tables provide a summary of the fair value of derivatives in Ferrellgas, L.P.’s condensed consolidated balance sheets as of October 31, 2017 and July 31, 2017:
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Schedule of Derivative Collateral | The following tables provide a summary of cash margin balances as of October 31, 2017 and July 31, 2017, respectively:
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Fair Value Hedge Derivative Effect on Earnings | The following table provides a summary of the effect on Ferrellgas, L.P.’s condensed consolidated statements of operations for the three months ended October 31, 2017 and 2016 due to derivatives designated as fair value hedging instruments:
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Cash Flow Hedge Derivative Effect on Comprehensive Income | The following tables provide a summary of the effect on Ferrellgas, L.P.’s condensed consolidated statements of comprehensive income (loss) for the three months ended October 31, 2017 and 2016 due to derivatives designated as cash flow hedging instruments:
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Derivatives not Designated as Hedging, Effect on Earnings | The following tables provide a summary of the effect on Ferrellgas, L.P.'s condensed consolidated statements of operations for the three months ended October 31, 2017 and 2016 due to the change in fair value of derivatives not designated as hedging instruments:
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Changes in Derivative Value Effect on Other Comprehensive Income (Loss) | The changes in derivatives included in AOCI for the three months ended October 31, 2017 and 2016 were as follows:
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Transactions With Related Parties (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Transactions With Related Parties | These costs primarily include compensation and benefits paid to employees of the general partner who perform services on Ferrellgas’ behalf and are reported in the condensed consolidated statements of operations as follows:
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Ferrellgas, L.P. [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Transactions With Related Parties | These costs primarily include compensation and benefits paid to employees of the general partner who perform services on Ferrellgas, L.P.’s behalf and are reported in the condensed consolidated statements of operations as follows:
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Net Earnings (Loss) Per Common Unitholders' Interest (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Distribution Allocation | 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 as follows:
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Schedule of Earnings Per Share | Additionally, there are no dilutive securities in periods with net losses.
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Segment Reporting Segment Reporting (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated | Following is a reconciliation of Ferrellgas' total segment performance measure to condensed consolidated net earnings (loss):
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Reconciliation of Assets from Segment to Consolidated | Following are total assets by segment:
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Ferrellgas, L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated | Following is a reconciliation of Ferrellgas, L.P.'s total segment performance measure to condensed consolidated net earnings (loss):
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Reconciliation of Assets from Segment to Consolidated | Following are total assets by segment:
|
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Profit Measure [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Following is a summary of segment information for the three months ended October 31, 2017 and 2016:
(1) Direct costs are comprised of "cost of products sold-propane and other gas liquids sales", "cost of products sold-midstream operations", "cost of products sold-other", "operating expense", "general and administrative expense", and "equipment lease expense" less "non-cash stock-based compensation charge", "change in fair value of contingent consideration", "severance charge", "litigation accrual and related legal fees associated with a class action lawsuit", "unrealized (non-cash) loss (gain) on changes in fair value of derivatives not designated as hedging instruments" and "acquisition and transition expenses". |
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Profit Measure [Member] | Ferrellgas, L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Following is a summary of segment information for the three months ended October 31, 2017 and 2016:
(1) Direct costs are comprised of "cost of sales-propane and other gas liquids sales", "cost of products sold-midstream operations", "cost of products sold-other", "operating expense", "general and administrative expense", and "equipment lease expense" less "non-cash stock-based compensation charge", "change in fair value of contingent consideration", "severance charge", "litigation accrual and related legal fees associated with a class action lawsuit", "unrealized (non-cash) loss (gain) on changes in fair value of derivatives not designated as hedging instruments" and "acquisition and transition expenses". |
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Capital Expenditures [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Following are capital expenditures by segment:
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Capital Expenditures [Member] | Ferrellgas, L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Following are capital expenditures by segment:
|
Guarantor financial information (Tables) - Ferrellgas, L.P. [Member] |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Balance Sheets |
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Condensed Consolidated Statements of Earnings |
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Condensed Consolidated Statements of Cash Flows |
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Supplemental Financial Statement Information (Narrative) (Details) |
3 Months Ended |
---|---|
Oct. 31, 2017
gal
| |
Maximum term of supply procurement contracts | 36 months |
Net procurement of fixed priced propane in gallons | 119,300,000 |
Ferrellgas, L.P. [Member] | |
Maximum term of supply procurement contracts | 36 months |
Net procurement of fixed priced propane in gallons | 119,300,000 |
Supplemental Financial Statement Information (Schedule Of Inventories) (Details) - USD ($) $ in Thousands |
Oct. 31, 2017 |
Jul. 31, 2017 |
---|---|---|
Propane gas and related products | $ 79,196 | $ 67,049 |
Energy Related Inventory, Petroleum | 7,921 | 724 |
Appliances, parts and supplies | 25,221 | 24,779 |
Inventories | 112,338 | 92,552 |
Ferrellgas, L.P. [Member] | ||
Propane gas and related products | 79,196 | 67,049 |
Energy Related Inventory, Petroleum | 7,921 | 724 |
Appliances, parts and supplies | 25,221 | 24,779 |
Inventories | $ 112,338 | $ 92,552 |
Supplemental Financial Statement Information Supplemental Financial Statement Information (Other Assets) (Details) - USD ($) $ in Thousands |
Oct. 31, 2017 |
Jul. 31, 2017 |
---|---|---|
Accounts Receivable, Related Parties, Noncurrent | $ 30,000 | $ 32,500 |
Other Assets | 50,559 | 41,557 |
Other Assets, Noncurrent | 80,559 | 74,057 |
Ferrellgas, L.P. [Member] | ||
Accounts Receivable, Related Parties, Noncurrent | 30,000 | 32,500 |
Other Assets | 50,559 | 41,557 |
Other Assets, Noncurrent | $ 80,559 | $ 74,057 |
Supplemental Financial Statement Information (Other Current Liabilities) (Details) - USD ($) $ in Thousands |
Oct. 31, 2017 |
Jul. 31, 2017 |
---|---|---|
Accrued interest | $ 51,109 | $ 18,671 |
Customer deposits and advances | 42,599 | 25,541 |
Other | 107,171 | 82,012 |
Other current liabilities | 200,879 | 126,224 |
Ferrellgas, L.P. [Member] | ||
Accrued interest | 39,477 | 14,737 |
Customer deposits and advances | 42,599 | 25,541 |
Other | 107,185 | 81,738 |
Other current liabilities | $ 189,261 | $ 122,016 |
Supplemental Financial Statement Information Supplemental financial statement information (Significant Cash and Non-Cash Activities) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Oct. 31, 2017 |
Oct. 31, 2016 |
|
Interest Paid | $ 6,129 | $ 5,631 |
Income Taxes Paid | 6 | 1 |
Noncash Investing and Financing Items [Abstract] | ||
Noncash or Part Noncash Acquisition, Value of Liabilities Assumed | 1,232 | 0 |
Property, Plant and Equipment, Additions | 140 | (189) |
Ferrellgas, L.P. [Member] | ||
Interest Paid | 6,129 | 5,630 |
Noncash Investing and Financing Items [Abstract] | ||
Noncash or Part Noncash Acquisition, Value of Liabilities Assumed | 1,232 | 0 |
Property, Plant and Equipment, Additions | $ 140 | $ (189) |
Accounts And Notes Receivable, Net And Accounts Receivable Securitization (Accounts And Notes Receivable) (Details) - USD ($) $ in Thousands |
Oct. 31, 2017 |
Jul. 31, 2017 |
---|---|---|
Accounts receivable pledged as collateral | $ 137,244 | $ 109,407 |
Accounts receivable | 46,318 | 47,346 |
Notes Receivable, Related Parties, Current | 10,000 | 10,000 |
Other | 294 | 307 |
Less: Allowance for doubtful accounts | (2,428) | (1,976) |
Accounts and notes receivable, net | 191,428 | 165,084 |
Ferrellgas, L.P. [Member] | ||
Accounts receivable pledged as collateral | 137,244 | 109,407 |
Accounts receivable | 46,318 | 47,346 |
Notes Receivable, Related Parties, Current | 10,000 | 10,000 |
Other | 294 | 307 |
Less: Allowance for doubtful accounts | (2,428) | (1,976) |
Accounts and notes receivable, net | $ 191,428 | $ 165,084 |
Accounts And Notes Receivable, Net And Accounts Receivable Securitization Accounts And Notes Receivcable, Net And Accounts Receivable Securitization (Maximum Leverage Ratio) (Details) |
3 Months Ended | |||
---|---|---|---|---|
Jul. 31, 2018 |
Apr. 30, 2018 |
Jan. 31, 2018 |
Oct. 31, 2017 |
|
required total leverage ratio | 550.00% | |||
Maximum [Member] | ||||
required total leverage ratio | 550.00% | 775.00% | 775.00% | 775.00% |
Ferrellgas, L.P. [Member] | ||||
required total leverage ratio | 550.00% | |||
Ferrellgas, L.P. [Member] | Maximum [Member] | ||||
required total leverage ratio | 550.00% | 775.00% | 775.00% | 775.00% |
Accounts And Notes Receivable, Net And Accounts Receivable Securitization Accounts And Notes Receiable, Net And Accounts Receivable Securitization (Consolidated Interest Coverage Ratio) (Details) - Maximum [Member] |
Jul. 31, 2018 |
Apr. 30, 2018 |
Jan. 31, 2018 |
Oct. 31, 2017 |
---|---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
required consolidated interest coverage ratio | 250.00% | 175.00% | 175.00% | 175.00% |
Ferrellgas, L.P. [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
required consolidated interest coverage ratio | 250.00% | 175.00% | 175.00% | 175.00% |
Debt (Short-Term Borrowings Narrative) (Details) - USD ($) $ in Thousands |
Oct. 31, 2017 |
Jul. 31, 2017 |
---|---|---|
Short-term borrowings | $ 263,200 | $ 59,781 |
Ferrellgas, L.P. [Member] | ||
Short-term borrowings | $ 263,200 | $ 59,781 |
Debt Debt (Maximum Leverage Ratio Schedule) (Details) |
3 Months Ended | |||
---|---|---|---|---|
Jul. 31, 2018 |
Apr. 30, 2018 |
Jan. 31, 2018 |
Oct. 31, 2017 |
|
Debt Instrument [Line Items] | ||||
required total leverage ratio | 550.00% | |||
Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
required total leverage ratio | 550.00% | 775.00% | 775.00% | 775.00% |
Ferrellgas, L.P. [Member] | ||||
Debt Instrument [Line Items] | ||||
required total leverage ratio | 550.00% | |||
Ferrellgas, L.P. [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
required total leverage ratio | 550.00% | 775.00% | 775.00% | 775.00% |
Debt Debt (Consolidated Interest Coverage Ratio) (Details) |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Oct. 31, 2017 |
Jul. 31, 2017 |
Jul. 31, 2018 |
Apr. 30, 2018 |
Jan. 31, 2018 |
|
Debt Instrument, Covenant Description | 5.2 | ||||
current consolidated interest coverage ratio | 193.00% | ||||
Debt Instrument, Covenant Compliance | 40.6 | 67.5 | |||
Maximum [Member] | |||||
required consolidated interest coverage ratio | 175.00% | 250.00% | 175.00% | 175.00% | |
Ferrellgas, L.P. [Member] | |||||
Debt Instrument, Covenant Description | 5.2 | ||||
current consolidated interest coverage ratio | 193.00% | ||||
Debt Instrument, Covenant Compliance | 40.6 | 67.5 | |||
Ferrellgas, L.P. [Member] | Maximum [Member] | |||||
required consolidated interest coverage ratio | 175.00% | 250.00% | 175.00% | 175.00% | |
Interest Coverage Covenant [Member] | |||||
Debt Instrument, Covenant Description | 21.1 | ||||
Debt Instrument, Covenant Compliance | 12.1 | ||||
Interest Coverage Covenant [Member] | Ferrellgas, L.P. [Member] | |||||
Debt Instrument, Covenant Description | 21.1 | ||||
Debt Instrument, Covenant Compliance | 12.1 |
Partners' Capital (Deficit) Partners' Capital (Limited Partner Units) (Details) - shares |
Oct. 31, 2017 |
Jul. 31, 2017 |
---|---|---|
Related Party Transaction [Line Items] | ||
Limited Partners' Capital Account, Units Outstanding | 97,152,665 | 97,152,665 |
Public Common Unitholders [Member] | ||
Related Party Transaction [Line Items] | ||
Limited Partners' Capital Account, Units Outstanding | 69,612,939 | 69,612,939 |
FCI Trading Corp. [Member] | ||
Related Party Transaction [Line Items] | ||
Limited Partners' Capital Account, Units Outstanding | 195,686 | 195,686 |
Subsidiary of Common Parent [Member] | ||
Related Party Transaction [Line Items] | ||
Limited Partners' Capital Account, Units Outstanding | 22,529,361 | 22,529,361 |
Ferrell Propane, Inc [Member] | ||
Related Party Transaction [Line Items] | ||
Limited Partners' Capital Account, Units Outstanding | 51,204 | 51,204 |
James E. Ferrell [Member] | ||
Related Party Transaction [Line Items] | ||
Limited Partners' Capital Account, Units Outstanding | 4,763,475 | 4,763,475 |
Fair Value Measurements Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Oct. 31, 2017 |
Jul. 31, 2017 |
|
Notes Receivable, Fair Value Disclosure | $ 36.4 | |
Increase (Decrease) in Notes Receivables | 3.8 | |
Long-term Debt, Fair Value | 1,704.4 | $ 1,966.6 |
Ferrellgas, L.P. [Member] | ||
Notes Receivable, Fair Value Disclosure | 36.4 | |
Increase (Decrease) in Notes Receivables | 3.8 | |
Long-term Debt, Fair Value | $ 1,386.6 | $ 1,645.3 |
Derivative Instruments and Hedging Activities (Fair Value Hedge Derivative Effect on Earnings) (Details) - Interest Rate Swap [Member] - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Oct. 31, 2017 |
Oct. 31, 2016 |
|
Derivative, Gain (Loss) on Derivative, Net | $ 138 | $ 420 |
Interest expense recognized on fixed-rate debt | (2,275) | (2,275) |
Ferrellgas, L.P. [Member] | ||
Derivative, Gain (Loss) on Derivative, Net | 138 | 420 |
Interest expense recognized on fixed-rate debt | $ (2,275) | $ (2,275) |
Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities (Derivatives Not Designated as Hedging Effect on Earnings) (Details) - Operating Expense [Member] - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Oct. 31, 2017 |
Oct. 31, 2016 |
|
Propane and related equipment sales [Member] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 1,027 | |
Propane and related equipment sales [Member] | Ferrellgas, L.P. [Member] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 1,027 | |
Midstream - Crude Oil Logistics [Member] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ (1,390) | (1,241) |
Midstream - Crude Oil Logistics [Member] | Ferrellgas, L.P. [Member] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ (1,390) | $ (1,241) |
Transactions With Related Parties (Narrative) (Details) |
Oct. 31, 2017
employee
|
---|---|
Number of employees | 0 |
Ferrellgas, L.P. [Member] | |
Number of employees | 0 |
Transactions With Related Parties (Schedule Of Transactions With Related Parties) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Oct. 31, 2017 |
Oct. 31, 2016 |
|
Related Party Transaction [Line Items] | ||
General and administrative expense | $ 13,164 | $ 14,269 |
Ferrellgas, L.P. [Member] | ||
Related Party Transaction [Line Items] | ||
General and administrative expense | 13,164 | 14,269 |
Compensation And Benefits [Member] | ||
Related Party Transaction [Line Items] | ||
Operating expense | 57,351 | 55,714 |
General and administrative expense | 7,508 | 8,583 |
Compensation And Benefits [Member] | Ferrellgas, L.P. [Member] | ||
Related Party Transaction [Line Items] | ||
Operating expense | 57,351 | 55,714 |
General and administrative expense | $ 7,508 | $ 8,583 |
Contingencies And Commitments (Narrative) (Details) - $ / shares |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Oct. 31, 2017 |
Oct. 31, 2016 |
Jul. 31, 2017 |
Jul. 31, 2016 |
|
Required fixed charge coverage ratio | 175.00% | |||
Current fixed charge coverage ratio | 144.00% | |||
Debt Instrument, Covenant Compliance | 40.6 | 67.5 | ||
Debt Instrument, Covenant Description | 5.2 | |||
Distribution Made to Limited Partner, Distributions Declared, Per Unit | $ 0.10 | $ 0.40 | $ 2.05 | |
Ferrellgas Partners Finance Corp. [Member] | ||||
Required fixed charge coverage ratio | 175.00% | |||
Debt Instrument, Restrictive Covenants | 50.0 | |||
Current fixed charge coverage ratio | 144.00% | |||
Debt Instrument, Covenant Compliance | 9.8 | |||
Debt Instrument, Covenant Description | 30.4 | |||
Distribution Made to Limited Partner, Distributions Declared, Per Unit | $ 0.10 | |||
Ferrellgas, L.P. [Member] | ||||
Debt Instrument, Covenant Compliance | 40.6 | 67.5 | ||
Debt Instrument, Covenant Description | 5.2 | |||
Distribution Made to Limited Partner, Distributions Declared, Per Unit | $ 0.40 | $ 2.05 |
Net Earnings Per Common Unitholders' Interest Net Earnings (Loss) Per Common Unitholders' Interest (Narrative) (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Oct. 31, 2017 |
Oct. 31, 2016 |
|
Earnings Per Share [Abstract] | ||
Dilutive effect on earnings per share | $ 0 | $ 0 |
Net Earnings (Loss) Per Common Unitholders' Interest (Schedule of Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Oct. 31, 2017 |
Oct. 31, 2016 |
|
Common unitholders' interest in net earnings | $ (47,436) | $ (42,642) |
Weighted average common units outstanding - diluted | 97,152,700 | 97,457,600 |
Basic and diluted net earnings per common unitholders' interest | $ (0.49) | $ (0.44) |
Guarantor financial information - Narrative (Details) - Ferrellgas, L.P. [Member] $ in Millions |
3 Months Ended |
---|---|
Oct. 31, 2017
USD ($)
| |
Condensed Financial Statements, Captions [Line Items] | |
Ownership interest in subsidiaries | 100.00% |
Fixed Rate Six Point Seven Five Due Two Thousand Twenty Three [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Debt issuance principal amount | $ 500.0 |
Debt interest rate | 6.75% |
Debt maturity year | 2023 |
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