M. 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 April 30, 2020
	Ferrellgas, L.P.		Ferrellgas
	(Parent and		Finance Corp.		Guarantor		Non-Guarantor
	Co-Issuer)		(Co-Issuer)		Subsidiaries		Subsidiaries		Eliminations		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	318,836	$	1	$	—	$	—	$	—	$	318,837
Accounts and notes receivable, net		10,642		—		24		132,286		—		142,952
Intercompany receivables		99,362		—		—		—		(99,362)		—
Inventories		65,209		—		—		—		—		65,209
Prepaid expenses and other current assets		47,175		—		—		—		—		47,175
Total current assets		541,224		1		24		132,286		(99,362)		574,173

Property, plant and equipment, net		596,978		—		—		—		—		596,978
Goodwill, net		247,195		—		—		—		—		247,195
Intangible assets, net		103,966		—		—		—		—		103,966
Investments in consolidated subsidiaries		37,505		—		—		—		(37,505)		—
Operating lease right-of-use assets		110,497		—		—		—		—		110,497
Other assets, net		84,772		—		2,255		445		—		87,472
Total assets	$	1,722,137	$	1	$	2,279	$	132,731	$	(136,867)	$	1,720,281

LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Current liabilities:
Accounts payable	$	37,025	$	—	$	—	$	—	$	—	$	37,025
Intercompany payables		—		—		—		99,362		(99,362)		—
Current portion of long-term debt		2,050		—		—		—		—		2,050
Current operating lease liabilities		31,914		—		—						31,914
Other current liabilities		165,047		—		12		(1,868)		—		163,191
Total current liabilities		236,036		—		12		97,494		(99,362)		234,180

Long-term debt		2,146,044		—		—		—		—		2,146,044
Operating lease liabilities		76,133		—		—		—		—		76,133
Other liabilities		52,167		—		—		—		—		52,167
Contingencies and commitments

Partners' capital (deficit):
Partners' equity		(767,465)		1		2,267		35,237		(37,505)		(767,465)
Accumulated other comprehensive loss		(20,778)		—		—		—		—		(20,778)
Total partners' capital (deficit)		(788,243)		1		2,267		35,237		(37,505)		(788,243)
Total liabilities and partners' capital (deficit)	$	1,722,137	$	1	$	2,279	$	132,731	$	(136,867)	$	1,720,281

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEETS

(in thousands)


	As of July 31, 2019
	Ferrellgas, L.P.		Ferrellgas
	(Parent and		Finance Corp.		Guarantor		Non-Guarantor
	Co-Issuer)		(Co-Issuer)		Subsidiaries		Subsidiaries		Eliminations		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	11,045	$	1	$	—	$	—	$	—	$	11,046
Accounts and notes receivable, net		(3,912)		—		35		111,473		—		107,596
Intercompany receivables		(5,650)		—		—		—		5,650		—
Inventories		80,454		—		—		—		—		80,454
Prepaid expenses and other current assets		42,158		—		(1)		—		—		42,157
Total current assets		124,095		1		34		111,473		5,650		241,253

Property, plant and equipment, net		596,724		—		(1)		—		—		596,723
Goodwill, net		247,195		—		—		—		—		247,195
Intangible assets, net		108,557		—		—		—		—		108,557
Investments in consolidated subsidiaries		52,999		—		—		—		(52,999)		—
Other assets, net		65,447		—		2,875		783		—		69,105
Total assets	$	1,195,017	$	1	$	2,908	$	112,256	$	(47,349)	$	1,262,833

LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Current liabilities:
Accounts payable	$	33,252	$	—	$	—	$	112	$	—	$	33,364
Short-term borrowings		43,000		—		—		—		—		43,000
Collateralized note payable		—		—		—		62,000		—		62,000
Intercompany payables		—		—		(192)		(5,458)		5,650		—
Current portion of long-term debt		277,029		—		—		—		—		277,029
Other current liabilities		128,666		—		20		5,617		—		134,303
Total current liabilities		481,947		—		(172)		62,271		5,650		549,696

Long-term debt		1,457,004		—		—		—		—		1,457,004
Other liabilities		36,469		—		67		—		—		36,536
Contingencies and commitments

Partners' capital (deficit):
Partners' equity		(765,756)		1		3,013		49,985		(52,999)		(765,756)
Accumulated other comprehensive income		(14,647)		—		—		—		—		(14,647)
Total partners' capital (deficit)		(780,403)		1		3,013		49,985		(52,999)		(780,403)
Total liabilities and partners' capital (deficit)	$	1,195,017	$	1	$	2,908	$	112,256	$	(47,349)	$	1,262,833

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(in thousands)


	For the three months ended April 30, 2020
	Ferrellgas, L.P.		Ferrellgas
	(Parent and		Finance Corp.		Guarantor		Non-Guarantor
	Co-Issuer)		(Co-Issuer)		Subsidiaries		Subsidiaries		Eliminations		Consolidated

Revenues:
Propane and other gas liquids sales	$	391,745	$	—	$	—	$	—	$	—	$	391,745
Other		20,385		—		—		—		—		20,385
Total revenues		412,130		—		—		—		—		412,130

Costs and expenses:
Cost of sales - propane and other gas liquids sales		176,265		—		—		—		—		176,265
Cost of sales - other		2,740		—		—		—		—		2,740
Operating expense - personnel, vehicle, plant and other		121,558		—		—		1,314		(1,314)		121,558
Operating expense - equipment lease expense		8,075		—		—		—		—		8,075
Depreciation and amortization expense		20,252		—		—		114		—		20,366
General and administrative expense		12,555		—		—		—		—		12,555
Non-cash employee stock ownership plan compensation charge		757		—		—		—		—		757
Loss on asset sales and disposals		1,859		—		—		—		—		1,859

Operating income (loss)		68,069		—		—		(1,428)		1,314		67,955

Interest expense		(36,943)		—		—		(1,063)		—		(38,006)
Loss on extinguishment of debt		(37,399)		—		—		—		—		(37,399)
Other income (expense), net		(158)		—		—		1,351		(1,351)		(158)

Earnings (loss) before income taxes		(6,431)		—		—		(1,140)		(37)		(7,608)

Income tax expense		112		—		—		—		—		112
Equity in earnings (loss) of subsidiaries		(1,140)		—		—		—		1,140		—

Net earnings (loss)		(7,683)		—		—		(1,140)		1,103		(7,720)

Other comprehensive income		2,572		—		—		—		—		2,572

Comprehensive income (loss)	$	(5,111)	$	—	$	—	$	(1,140)	$	1,103	$	(5,148)

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(in thousands)


	For the three months ended April 30, 2019
	Ferrellgas, L.P.		Ferrellgas
	(Parent and		Finance Corp.		Guarantor		Non-Guarantor
	Co-Issuer)		(Co-Issuer)		Subsidiaries		Subsidiaries		Eliminations		Consolidated

Revenues:
Propane and other gas liquids sales	$	459,556	$	—	$	—	$	—	$	—	$	459,556
Other		20,069		—		—		—		—		20,069
Total revenues		479,625		—		—		—		—		479,625

Costs and expenses:
Cost of sales - propane and other gas liquids sales		250,389		—		—		—		—		250,389
Cost of sales - other		2,320		—		—		—		—		2,320
Operating expense - personnel, vehicle, plant and other		124,078		—		(3)		968		(5,052)		119,991
Operating expense - equipment lease expense		8,319		—		—		—		—		8,319
Depreciation and amortization expense		20,506		—		—		111		—		20,617
General and administrative expense		11,511		1		—		—		—		11,512
Non-cash employee stock ownership plan compensation charge		(4)		—		—		—		—		(4)
Loss on asset sales and disposals		1,683		—		—		—		—		1,683

Operating income (loss)		60,823		(1)		3		(1,079)		5,052		64,798

Interest expense		(34,206)		—		—		(1,189)		—		(35,395)
Other income (expense), net		278		—		(27)		2,834		(2,834)		251

Earnings (loss) before income taxes		26,895		(1)		(24)		566		2,218		29,654

Income tax expense (benefit)		(49)		—		149		—		—		100
Equity in earnings (loss) of subsidiary		392		—		—		—		(392)		—

Net earnings (loss)		27,336		(1)		(173)		566		1,826		29,554

Other comprehensive loss		8,286		—		—		—		—		8,286

Comprehensive income (loss)	$	35,622	$	(1)	$	(173)	$	566	$	1,826	$	37,840

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(in thousands)


	For the nine months ended April 30, 2020
	Ferrellgas, L.P.		Ferrellgas
	(Parent and		Finance Corp.		Guarantor		Non-Guarantor
	Co-Issuer)		(Co-Issuer)		Subsidiaries		Subsidiaries		Eliminations		Consolidated

Revenues:
Propane and other gas liquids sales	$	1,150,377	$	—	$	—	$	—	$	—	$	1,150,377
Other		65,800		—		—		—		—		65,800
Total revenues		1,216,177		—		—		—		—		1,216,177

Costs and expenses:
Cost of sales - propane and other gas liquids sales		548,136		—		—		—		—		548,136
Cost of sales - other		9,774		—		—		—		—		9,774
Operating expense - personnel, vehicle, plant and other		364,334		—		—		—		—		364,334
Operating expense - equipment lease expense		24,724		—		—		3,249		(3,249)		24,724
Depreciation and amortization expense		59,043		—		—		337		—		59,380
General and administrative expense		36,332		4		—		—		—		36,336
Non-cash employee stock ownership plan compensation charge		2,182		—		—		—		—		2,182
Loss on asset sales and disposals		6,242		—		—		—		—		6,242

Operating income (loss)		165,410		(4)		—		(3,586)		3,249		165,069

Interest expense		(110,412)		—		—		(3,161)		—		(113,573)
Loss on extinguishment of debt		(37,399)		—		—		—		—		(37,399)
Other income (expense), net		(214)		—		—		3,953		(3,953)		(214)

Earnings (loss) before income taxes		17,385		(4)		—		(2,794)		(704)		13,883

Income tax expense		745		—		—		—		—		745
Equity in earnings (loss) of subsidiary		(2,798)		—		—		—		2,798		—

Net earnings (loss)		13,842		(4)		—		(2,794)		2,094		13,138

Other comprehensive loss		(6,131)		—		—		—		—		(6,131)

Comprehensive income (loss)	$	7,711	$	(4)	$	—	$	(2,794)	$	2,094	$	7,007

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(in thousands)


	For the nine months ended April 30, 2019
	Ferrellgas, L.P.		Ferrellgas
	(Parent and		Finance Corp.		Guarantor		Non-Guarantor
	Co-Issuer)		(Co-Issuer)		Subsidiaries		Subsidiaries		Eliminations		Consolidated

Revenues:
Propane and other gas liquids sales	$	1,344,634	$	—	$	—	$	—	$	—	$	1,344,634
Other		60,628		—		49		—		—		60,677
Total revenues		1,405,262		—		49		—		—		1,405,311

Costs and expenses:
Cost of sales - propane and other gas liquids sales		766,056		—		—		—		—		766,056
Cost of sales - other		8,675		—		114		—		—		8,789
Operating expense - personnel, vehicle, plant and other		355,589		—		36		3,869		(7,953)		351,541
Operating expense - equipment lease expense		24,597		—		—		—		—		24,597
Depreciation and amortization expense		58,880		—		—		334		—		59,214
General and administrative expense		42,022		6		—		—		—		42,028
Non-cash employee stock ownership plan compensation charge		4,688		—		—		—		—		4,688
Loss on asset sales and disposals		5,724		—		2,679		—		—		8,403

Operating income (loss)		139,031		(6)		(2,780)		(4,203)		7,953		139,995

Interest expense		(103,209)		—		(38)		(3,493)		—		(106,740)
Other income (expense), net		393		—		(37)		7,953		(7,953)		356

Earnings (loss) before income taxes		36,215		(6)		(2,855)		257		—		33,611

Income tax expense		105		—		149		—		—		254
Equity in earnings (loss) of subsidiaries		(2,753)		—		—		—		2,753		—

Net earnings (loss)		33,357		(6)		(3,004)		257		2,753		33,357

Other comprehensive loss		(21,574)		—		—		—		—		(21,574)

Comprehensive income (loss)	$	11,783	$	(6)	$	(3,004)	$	257	$	2,753	$	11,783

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(in thousands)


	For the nine months ended April 30, 2020
	Ferrellgas, L.P.		Ferrellgas
	(Parent and		Finance Corp.		Guarantor		Non-Guarantor
	Co-Issuer)		(Co-Issuer)		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	60,132	$	(4)	$	513	$	(8,862)	$	62,000	$	113,779

Cash flows from investing activities:
Business acquisitions, net of cash acquired		(6,400)		—		—		—		—		(6,400)
Capital expenditures		(57,251)		—		—		—		—		(57,251)
Proceeds from sale of assets		2,510		—		—		—		—		2,510
Cash collected for purchase of interest in accounts receivable		—		—		—		685,640		(685,640)		—
Cash remitted to Ferrellgas, L.P. for accounts receivable		—		—		—		(623,640)		623,640		—
Intercompany loan to affiliate		(8,353)		—		—		—		8,353		—
Cash payments to construct assets in connection with future lease transactions		(37,042)		—		—		—		—		(37,042)
Cash receipts in connection with leased vehicles		21,995		—		—		—		—		21,995
Net cash provided by (used in) investing activities		(84,541)		—		—		62,000		(53,647)		(76,188)

Cash flows from financing activities:
Distributions		(15,654)		—		—		—		—		(15,654)
Proceeds from increase in long-term debt		703,750		—		—		—		—		703,750
Reductions in long-term debt		(285,285)		—		—		—		—		(285,285)
Net reductions to short-term borrowings		(43,000)		—		—		—		—		(43,000)
Net additions to collateralized short-term borrowings		—		—		—		(62,000)		—		(62,000)
Net changes in advances with consolidated entities		—		4		(513)		8,862		(8,353)		—
Cash paid for financing costs and other		(27,611)		—		—		—		—		(27,611)
Net cash provided by (used in) financing activities		332,200		4		(513)		(53,138)		(8,353)		270,200

Net change in cash and cash equivalents		307,791		—		—		—		—		307,791
Cash and cash equivalents - beginning of year		11,045		1		—		—		—		11,046
Cash, cash equivalents and restricted cash - end of year	$	318,836	$	1	$	—	$	—	$	—	$	318,837

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(in thousands)


	For the nine months ended April 30, 2019
	Ferrellgas, L.P.		Ferrellgas
	(Parent and		Finance Corp.		Guarantor		Non-Guarantor
	Co-Issuer)		(Co-Issuer)		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	111,008	$	(6)	$	24,589	$	(45,384)	$	(4,000)	$	86,207

Cash flows from investing activities:
Business acquisitions, net of cash acquired		(11,351)		—		—		—		—		(11,351)
Capital expenditures		(94,660)		—		—		—		—		(94,660)
Proceeds from sale of assets		2,416		—		—		—		—		2,416
Cash collected for purchase of interest in accounts receivable		—		—		—		1,052,947		(1,052,947)		—
Cash remitted to Ferrellgas, L.P. for accounts receivable		—		—		—		(1,056,947)		1,056,947		—
Intercompany loan to affiliate		(20,638)		—		—		—		20,638		—
Other		—		—		—		—		—		—
Net cash provided by (used in) investing activities		(124,233)		—		—		(4,000)		24,638		(103,595)

Cash flows from financing activities:
Distributions		(25,568)		—		—		—		—		(25,568)
Reductions in long-term debt		(1,656)		—		—		—		—		(1,656)
Net reductions in short-term borrowings		(32,800)		—		—		—		—		(32,800)
Net additions to collateralized short-term borrowings		—		—		—		4,000		—		4,000
Net changes in advances with consolidated entries		—		6		(24,763)		45,395		(20,638)		—
Cash paid for financing costs		(520)		—		—		(11)		—		(531)
Net cash provided by (used in) financing activities		(60,544)		6		(24,763)		49,384		(20,638)		(56,555)

Net change in cash and cash equivalents		(73,769)		—		(174)		—		—		(73,943)
Cash and cash equivalents - beginning of year		119,133		1		174		—		—		119,308
Cash and cash equivalents - end of year	$	45,364	$	1	$	—	$	—	$	—	$	45,365