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.



FERRELLGAS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
(in thousands)
	As of January 31, 2018
	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	$	13,954		$	1	$	216		$	—		$	—		$	14,171
Accounts and notes receivable, net	(3,004		)	—		23,832			235,150			—			255,978
Intercompany receivables	37,988			—		—			—			(37,988		)	—
Inventories	95,097			—		14,995			—			—			110,092
Assets held for sale	—			—		52,200			—			—			52,200
Prepaid expenses and other current assets	33,630			—		7,762			1			—			41,393
Total current assets	177,665			1		99,005			235,151			(37,988		)	473,834

Property, plant and equipment, net	547,441			—		98,886			—			—			646,327
Goodwill, net	246,098			—		—			—			—			246,098
Intangible assets, net	127,316			—		115,763			—			—			243,079
Intercompany receivables	450,000			—		—			—			(450,000		)	—
Investments in consolidated subsidiaries	(80,685		)	—		—			—			80,685			—
Other assets, net	39,847			—		37,432			433			—			77,712
Total assets	$	1,507,682		$	1	$	351,086		$	235,584		$	(407,303	)	$	1,687,050

LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Current liabilities:
Accounts payable	$	78,054		$	—	$	3,926		$	92		$	—		$	82,072
Short-term borrowings	261,200			—		—			—			—			261,200
Collateralized note payable	—			—		—			166,000			—			166,000
Intercompany payables	—			—		44,259			(6,271		)	(37,988		)	—
Other current liabilities	132,047			—		4,074			470			—			136,591
Total current liabilities	471,301			—		52,259			160,291			(37,988		)	645,863

Long-term debt	1,462,936			—		450,037			—			(450,000		)	1,462,973
Other liabilities	30,653			—		4,769			—			—			35,422
Contingencies and commitments

Partners' capital (deficit):
Partners' equity	(481,801		)	1		(155,979		)	75,293			80,685			(481,801		)
Accumulated other comprehensive income	24,593			—		—			—			—			24,593
Total partners' capital (deficit)	(457,208		)	1		(155,979		)	75,293			80,685			(457,208		)
Total liabilities and partners' capital (deficit)	$	1,507,682		$	1	$	351,086		$	235,584		$	(407,303	)	$	1,687,050



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, net	(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, net	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 January 31, 2018
	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	$	592,275		$	—		$	(36	)	$	—		$	—		$	592,239
Midstream operations	—			—			117,276			—			—			117,276
Other	22,707			—			22,934			—			—			45,641
Total revenues	614,982			—			140,174			—			—			755,156

Costs and expenses:
Cost of sales - propane and other gas liquids sales	362,927			—			(9		)	—			—			362,918
Cost of sales - midstream operations	—			—			107,067			—			—			107,067
Cost of sales - other	2,853			—			17,934			—			—			20,787
Operating expense	114,096			—			9,795			1,833			(2,008		)	123,716
Depreciation and amortization expense	18,521			—			6,893			71			—			25,485
General and administrative expense	13,833			3			1,054			—			—			14,890
Equipment lease expense	6,862			—			92			—			—			6,954
Non-cash employee stock ownership plan compensation charge	4,031			—			—			—			—			4,031
Asset impairments	—			—			10,005			—			—			10,005
Loss on asset sales and disposals	555			—			38,694			—			—			39,249

Operating income (loss)	91,304			(3		)	(51,351		)	(1,904		)	2,008			40,054

Interest expense	(21,212		)	—			(11,739		)	(1,107		)	—			(34,058		)
Other income (expense), net	408			—			276			2,008			(2,008		)	684

Earnings (loss) before income taxes	70,500			(3		)	(62,814		)	(1,003		)	—			6,680

Income tax expense (benefit)	82			—			(249		)	—			—			(167		)
Equity in earnings (loss) of subsidiary	(63,571		)	—			—			—			63,571			—

Net earnings (loss)	6,847			(3		)	(62,565		)	(1,003		)	63,571			6,847

Other comprehensive loss	(8,671		)	—			—			—			—			(8,671		)

Comprehensive income (loss)	$	(1,824	)	$	(3	)	$	(62,565	)	$	(1,003	)	$	63,571		$	(1,824	)



FERRELLGAS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(in thousands)

	For the three months ended January 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	$	437,375		$	—		$	—		$	—		$	—		$	437,375
Midstream operations	—			—			96,787			—			—			96,787
Other	21,609			—			23,479			—			—			45,088
Total revenues	458,984			—			120,266			—			—			579,250

Costs and expenses:
Cost of sales - propane and other gas liquids sales	235,029			—			—			—			—			235,029
Cost of sales - midstream operations	—			—			87,024			—			—			87,024
Cost of sales - other	2,571			—			18,086			—			—			20,657
Operating expense	103,986			—			9,642			539			(1,091		)	113,076
Depreciation and amortization expense	18,014			—			7,527			66			—			25,607
General and administrative expense	11,093			3			1,182			—			—			12,278
Equipment lease expense	7,267			—			149			—			—			7,416
Non-cash employee stock ownership plan compensation charge	2,945			—			—			—			—			2,945
Loss on asset sales and disposals	73			—			(28		)	—			—			45

Operating income (loss)	78,006			(3		)	(3,316		)	(605		)	1,091			75,173

Interest expense	(21,089		)	—			(11,002		)	(657		)	—			(32,748		)
Other income (expense), net	304			—			459			1,091			(1,091		)	763

Earnings (loss) before income taxes	57,221			(3		)	(13,859		)	(171		)	—			43,188

Income tax expense	103			—			485			—			—			588
Equity in earnings (loss) of subsidiary	(14,518		)	—			—			—			14,518			—

Net earnings (loss)	42,600			(3		)	(14,344		)	(171		)	14,518			42,600

Other comprehensive income	15,776			—			—			—			—			15,776

Comprehensive income (loss)	$	58,376		$	(3	)	$	(14,344	)	$	(171	)	$	14,518		$	58,376



FERRELLGAS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(in thousands)

	For the six months ended January 31, 2018
	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	$	894,392		$	—		$	605		$	—		$	—		$	894,997
Midstream operations	—			—			238,036			—			—			238,036
Other	39,384			—			37,394			—			—			76,778
Total revenues	933,776			—			276,035			—			—			1,209,811

Costs and expenses:
Cost of sales - propane and other gas liquids sales	541,746			—			687			—			—			542,433
Cost of sales - midstream operations	—			—			215,192			—			—			215,192
Cost of sales - other	5,562			—			28,927			—			—			34,489
Operating expense	215,328			—			19,058			3,015			(3,223		)	234,178
Depreciation and amortization expense	36,868			—			14,206			143			—			51,217
General and administrative expense	24,588			5			3,461			—			—			28,054
Equipment lease expense	13,510			—			185			—			—			13,695
Non-cash employee stock ownership plan compensation charge	7,993			—			—			—			—			7,993
Asset impairments	—			—			10,005			—			—			10,005
Loss on asset sales and disposals	1,463			—			38,681			—			—			40,144

Operating income (loss)	86,718			(5		)	(54,367		)	(3,158		)	3,223			32,411

Interest expense	(41,606		)	—			(22,924		)	(1,724		)	—			(66,254		)
Other income (expense), net	623			—			572			3,223			(3,223		)	1,195

Earnings (loss) before income taxes	45,735			(5		)	(76,719		)	(1,659		)	—			(32,648		)

Income tax expense	72			—			132			—			—			204
Equity in earnings (loss) of subsidiary	(78,515		)	—			—			—			78,515			—

Net earnings (loss)	(32,852		)	(5		)	(76,851		)	(1,659		)	78,515			(32,852		)

Other comprehensive income	9,829			—			—			—			—			9,829

Comprehensive income (loss)	$	(23,023	)	$	(5	)	$	(76,851	)	$	(1,659	)	$	78,515		$	(23,023	)



FERRELLGAS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(in thousands)

	For the six months ended January 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	$	679,774		$	—		$	—		$	—		$	—		$	679,774
Midstream operations	—			—			204,831			—			—			204,831
Other	38,935			—			35,252			—			—			74,187
Total revenues	718,709			—			240,083			—			—			958,792

Costs and expenses:
Cost of sales - propane and other gas liquids sales	354,241			—			—			—			—			354,241
Cost of sales - midstream operations	—			—			181,666			—			—			181,666
Cost of sales - other	5,001			—			27,402			—			—			32,403
Operating expense	201,641			—			19,888			(1,566		)	(1,801		)	218,162
Depreciation and amortization expense	36,291			—			15,399			119			—			51,809
General and administrative expense	23,956			5			2,586			—			—			26,547
Equipment lease expense	14,477			—			288			—			—			14,765
Non-cash employee stock ownership plan compensation charge	6,699			—			—			—			—			6,699
Loss on asset sales and disposals	1,520			—			4,948			—			—			6,468

Operating income (loss)	74,883			(5		)	(12,094		)	1,447			1,801			66,032

Interest expense	(41,441		)	—			(21,675		)	(1,027		)	(3		)	(64,146		)
Other income (expense), net	257			—			1,014			1,798			(1,798		)	1,271

Earnings (loss) before income taxes	33,699			(5		)	(32,755		)	2,218			—			3,157

Income tax expense (benefit)	74			—			(77		)	—			—			(3		)
Equity in earnings (loss) of subsidiary	(30,465		)	—			—			—			30,465			—

Net earnings (loss)	3,160			(5		)	(32,678		)	2,218			30,465			3,160

Other comprehensive income	25,152			—			—			—			—			25,152

Comprehensive income (loss)	$	28,312		$	(5	)	$	(32,678	)	$	2,218		$	30,465		$	28,312



FERRELLGAS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
(in thousands)

	For the six months ended January 31, 2018
	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	$	(57,734	)	$	(5	)	$	13,335		$	120,563		$	(97,000	)	$	(20,841	)

Cash flows from investing activities:
Business acquisitions, net of cash acquired	(14,862		)	—			—			—			—			(14,862		)
Capital expenditures	(34,391		)	—			(1,302		)	—			—			(35,693		)
Proceeds from sale of assets	4,207			—			—			—			—			4,207
Cash collected for purchase of interest in accounts receivable	—			—			—			574,783			(574,783		)	—
Cash remitted to Ferrellgas, L.P for accounts receivable	—			—			—			(671,783		)	671,783			—
Net changes in advances with consolidated entities	132,748			—			—			—			(132,748		)	—
Net cash provided by (used in) investing activities	87,702			—			(1,302		)	(97,000		)	(35,748		)	(46,348		)

Cash flows from financing activities:
Distributions	(35,380		)	—			—			—			—			(35,380		)
Proceeds from increase in long-term debt	23,580			—			—			—			—			23,580
Payments on long-term debt	(1,267		)	—			—			—			—			(1,267		)
Net reductions in short-term borrowings	(7,879		)	—			—			—			—			(7,879		)
Net additions to collateralized short-term borrowings	—			—			—			97,000			—			97,000
Net changes in advances with parent	—			5			(12,190		)	(120,563		)	132,748			—
Cash paid for financing costs	(395		)	—			—			—			—			(395		)
Net cash provided by (used in) financing activities	(21,341		)	5			(12,190		)	(23,563		)	132,748			75,659

Increase (decrease) in cash and cash equivalents	8,627			—			(157		)	—			—			8,470
Cash and cash equivalents - beginning of year	5,327			1			373			—			—			5,701
Cash and cash equivalents - end of year	$	13,954		$	1		$	216		$	—		$	—		$	14,171



FERRELLGAS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
(in thousands)

	For the six months ended January 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	$	85,916		$	(5	)	$	(47,221	)	$	75,611		$	(69,000	)	$	45,301

Cash flows from investing activities:
Capital expenditures	(19,686		)	—			(82		)	—			—			(19,768		)
Proceeds from sale of assets	4,591			—			—			—			—			4,591
Cash collected for purchase of interest in accounts receivable	—			—			—			469,600			(469,600		)	—
Cash remitted to Ferrellgas, L.P for accounts receivable	—			—			—			(538,600		)	538,600			—
Net changes in advances with consolidated entities	28,408			—			—			—			(28,408		)	—
Other	(37		)	—			—			—			—			(37		)
Net cash provided by (used in) investing activities	13,276			—			(82		)	(69,000		)	40,592			(15,214		)

Cash flows from financing activities:
Distributions	(84,500		)	—			—			—			—			(84,500		)
Contributions from Partners	167,640			—			—			—			—			167,640
Proceeds from increase in long-term debt	36,444			—			—			—			—			36,444
Payments on long-term debt	(172,790		)	—			—			—			—			(172,790		)
Net reductions in short-term borrowings	(35,692		)	—			—			—			—			(35,692		)
Net additions to collateralized short-term borrowings	—			—			—			69,000			—			69,000
Net changes in advances with parent	—			5			47,198			(75,611		)	28,408			—
Cash paid for financing costs	(1,422		)	—			—			—			—			(1,422		)
Net cash provided by (used in) financing activities	(90,320		)	5			47,198			(6,611		)	28,408			(21,320		)

Increase (decrease) in cash and cash equivalents	8,872			—			(105		)	—			—			8,767
Cash and cash equivalents - beginning of year	4,472			1			417			—			—			4,890
Cash and cash equivalents - end of year	$	13,344		$	1		$	312		$	—		$	—		$	13,657