Net (loss) earnings per Unitholders' interest

12 Months Ended

Jul. 31, 2025

Net (loss) earnings per Unitholders' interest

Net (loss) earnings per Unitholders' interest

S.       Net (loss) earnings per Unitholders’ interest

Below is a calculation of the basic and diluted net (loss) earnings per Class A Unitholders’ interest in the consolidated statements of operations for the periods indicated. In accordance with guidance issued by the FASB regarding participating securities and the two-class method, Ferrellgas calculates net (loss) earnings per Class A 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. Due to the seasonality of Ferrellgas’ business, the dilutive effect of the two-class method typically impacts only the three months ended January 31.

There was not a dilutive effect resulting from this guidance on basic and diluted net (loss) earnings per Class A Unitholders’ interest for fiscal 2025, 2024 and 2023.

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, in periods with net losses, there are no dilutive securities.

Calculation of basic and diluted net (loss) earnings per Class A Units

	For the year ended July 31,
	2025		2024		2023
	(in thousands, except per unit amounts)
Net (loss) earnings attributable to Ferrellgas Partners, L.P.	$	(15,566)	$	110,216	$	136,881
Less: Distributions to preferred unitholders		64,068		64,778		64,314
Less: Distributions to Class B unitholders		—		99,996		49,998
Less: Allocation of undistributed net earnings to Class B units		—		—		11,030
Less: General partner’s interest in net (loss) earnings		(155)		1,102		1,368
Undistributed net (loss) earnings attributable to Class A unitholders	$	(79,479)	$	(55,660)	$	10,171
Weighted average Class A Units outstanding (in thousands)		4,857.6		4,857.6		4,857.6
Basic and diluted net (loss) earnings per Class A Unit	$	(16.36)	$	(11.46)	$	2.09

Class B Units considerations

The Class B Units meet the definition of a participating security and the two-class method is required. For any periods in which earnings are recognized, the earnings will be allocated between the Class B Units and the Class A Units on a six-to-one basis. For any periods in which losses are recognized, no effect is given to the Class B Units as they do not contractually participate in the losses of Ferrellgas.

In addition, Ferrellgas has the option to redeem all, but not less than all, of the Class B Units outstanding at any time on or prior to March 30, 2026 for cash. This call option does not impact the dilutive effect of net loss per Class A Unit due to the cash-only redemption provision, which is assumed, and therefore there would be no dilutive effect.