UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the quarterly period ended October 31, 2022


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the transition period from to

Commission file numbers: 001-11331, 000-50182, 333-06693-02 and 000-50183

Ferrellgas Partners, L.P.

Ferrellgas, L.P.

Ferrellgas Partners Finance Corp.

Ferrellgas Finance Corp.

(Exact name of registrants as specified in their charters)

Delaware		43-1698480
Delaware		43-1698481
Delaware		43-1742520
Delaware		14-1866671
(States or other jurisdictions of incorporation or organization)		(I.R.S. Employer Identification Nos.)

One Liberty Plaza, Liberty, Missouri		64068
(Address of principal executive office)		(Zip Code)

Registrants’ telephone number, including area code: (816) 792-1600

Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrants have submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrants were required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “Large Accelerated Filer,” “Accelerated Filer,” “Smaller Reporting Company,” and “Emerging Growth Company” in Rule 12b-2 of the Exchange Act.

Ferrellgas Partners, L.P.:
Large Accelerated Filer ☐	Accelerated Filer ☐	Non-accelerated Filer ☒	Smaller Reporting Company ☒
			Emerging Growth Company ☐

Ferrellgas, L.P., Ferrellgas Partners Finance Corp. and Ferrellgas Finance Corp.:
Large Accelerated Filer ☐	Accelerated Filer ☐	Non-accelerated Filer ☒	Smaller Reporting Company ☒
			Emerging Growth Company ☐

If an Emerging Growth Company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Ferrellgas Partners, L.P. and Ferrellgas, L.P. ☐

Ferrellgas Partners Finance Corp. and Ferrellgas Finance Corp. ☐

Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act).

Ferrellgas Partners, L.P. and Ferrellgas, L.P. Yes ☐ No ☒

Ferrellgas Partners Finance Corp. and Ferrellgas Finance Corp. Yes ☒ No ☐

Indicate by check mark whether the registrants have filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

Ferrellgas Partners, L.P. and Ferrellgas Partners Finance Corp. Yes ☒ No ☐

Ferrellgas, L.P. and Ferrellgas Finance Corp. N/A

Securities registered pursuant to Section 12(b) of the Act:


Title of each class:	Trading Symbol	Name of each exchange on which registered:
N/A	N/A	N/A

At November 30, 2022, the registrants had Class A Units, Class B Units or shares of common stock outstanding as follows:

Ferrellgas Partners, L.P.	4,857,605	Class A Units
	1,300,000	Class B Units
Ferrellgas, L.P.	n/a	n/a
Ferrellgas Partners Finance Corp.	1,000	Common Stock
Ferrellgas Finance Corp.	1,000	Common Stock

Documents Incorporated by Reference: None

EACH OF FERRELLGAS PARTNERS FINANCE CORP. AND FERRELLGAS FINANCE CORP. MEET THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(A) AND (B) OF FORM 10-Q AND ARE THEREFORE, WITH RESPECT TO EACH SUCH REGISTRANT, FILING THIS FORM 10-Q WITH THE REDUCED DISCLOSURE FORMAT.

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EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the quarter ended October 31, 2022 of Ferrellgas Partners, L.P. together with its consolidated subsidiaries, including Ferrellgas, L.P., Ferrellgas Partners Finance Corp., and Ferrellgas Finance Corp. Unless stated otherwise or the context otherwise requires, references to “Ferrellgas Partners” refers to Ferrellgas Partners, L.P. itself, without its consolidated subsidiaries. References to the “operating partnership” mean Ferrellgas, L.P., together (except where the context indicates otherwise) with its consolidated subsidiaries, including Ferrellgas Finance Corp. The terms “us,” “we,” “our,” “ours,” “consolidated,” the “Company” or “Ferrellgas” refer to Ferrellgas Partners, L.P. together with its consolidated subsidiaries, including Ferrellgas, L.P., Ferrellgas Partners Finance Corp. and Ferrellgas Finance Corp., except when used in connection with “Class A Units” or “Class B Units,” in which case these terms refer to Ferrellgas Partners, L.P. without its consolidated subsidiaries.

Ferrellgas Partners is a publicly traded Delaware limited partnership formed in 1994 and is primarily engaged in the retail distribution of propane and related equipment sales. Our Class A Units are traded on the OTC Pink Market under the symbol “FPGR.” The operating partnership was formed on April 22, 1994, and accounts for substantially all of our consolidated assets, sales and operating earnings.

Ferrellgas Partners is a holding entity that conducts no operations and has two direct subsidiaries, the operating partnership and Ferrellgas Partners Finance Corp. Our activities are primarily conducted through the operating partnership. Ferrellgas Partners and the Preferred Unitholders are the only limited partners of the operating partnership. Ferrellgas, Inc. is the sole general partner of Ferrellgas Partners and the operating partnership and, excluding the economic interests attributable to the Class B Units and the Preferred Units, owns an approximate 1% general partner economic interest in each, and, therefore, an effective 2% general partner economic interest in the operating partnership. Excluding the economic interests attributable to the Preferred Units, Ferrellgas Partners owns an approximate 99% limited partner interest in the operating partnership.

Our general partner performs all management functions for us. The parent company of our general partner, Ferrell Companies, currently beneficially owns approximately 23.4% of our outstanding Class A Units. Ferrell Companies is owned 100% by an employee stock ownership trust.

We believe that combining the quarterly reports on Form 10-Q for these entities provides the following benefits:

●

enhances investors’ understanding of Ferrellgas Partners and the operating partnership by enabling investors to view the business as a whole in the same manner that management views and operates the business;

●

eliminates duplicative disclosure and provides a more streamlined and readable presentation, since a substantial portion of the disclosure applies to both Ferrellgas Partners and the operating partnership; and

●

creates time and cost efficiencies through the preparation of a combined presentation.

To help investors understand the differences between Ferrellgas Partners and the operating partnership, this report provides separate condensed consolidated financial statements for Ferrellgas Partners and the operating partnership. Noncontrolling interests, Class A Units, Class B Units, shareholders' equity (deficit) and partners' capital (deficit) are the main areas of difference between the condensed consolidated financial statements of Ferrellgas Partners and those of the operating partnership. A single set of notes to condensed consolidated financial statements is presented that includes separate discussions for Ferrellgas Partners and the operating partnership, when applicable. A combined Management's Discussion and Analysis of Financial Condition and Results of Operations section is also included that presents combined information and discrete information related to each entity, as applicable.

In order to highlight the differences between Ferrellgas Partners and the operating partnership, this report includes the following sections that provide separate financial information for Ferrellgas Partners and the operating partnership:

●

condensed consolidated financial statements; and

●

certain accompanying notes to condensed consolidated financial statements, which denote “Ferrellgas Partners” and “The operating partnership” in sections where applicable.

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FERRELLGAS PARTNERS, L.P.

FERRELLGAS PARTNERS FINANCE CORP.

FERRELLGAS, L.P.

FERRELLGAS FINANCE CORP.

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		Page
PART I - FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS (unaudited)

	Ferrellgas Partners, L.P. and Subsidiaries
	Condensed Consolidated Balance Sheets – October 31, 2022 and July 31, 2022	4
	Condensed Consolidated Statements of Operations – Three months ended October 31, 2022 and 2021	5
	Condensed Consolidated Statements of Comprehensive Income (Loss) – Three months ended October 31, 2022 and 2021	6
	Condensed Consolidated Statement of Equity – Three months ended October 31, 2022 and 2021	7
	Condensed Consolidated Statements of Cash Flows – Three months ended October 31, 2022 and 2021	8

	Ferrellgas, L.P. and Subsidiaries
	Condensed Consolidated Balance Sheets – October 31, 2022 and July 31, 2022	9
	Condensed Consolidated Statements of Operations – Three months ended October 31, 2022 and 2021	10
	Condensed Consolidated Statements of Comprehensive Income (Loss) – Three months ended October 31, 2022 and 2021	11
	Condensed Consolidated Statement of Partners’ Deficit – Three months ended October 31, 2022 and 2021	12
	Condensed Consolidated Statements of Cash Flows – Three months ended October 31, 2022 and 2021	13

	Ferrellgas Partners, L.P. and Subsidiaries and Ferrellgas, L.P. and Subsidiaries
	Notes to Condensed Consolidated Financial Statements	14

	Ferrellgas Partners Finance Corp.
	Condensed Balance Sheets – October 31, 2022 and July 31, 2022	33
	Condensed Statements of Operations – Three months ended October 31, 2022 and 2021	34
	Condensed Statements of Cash Flows – Three months ended October 31, 2022 and 2021	35
	Notes to Condensed Financial Statements	36

	Ferrellgas Finance Corp.
	Condensed Balance Sheets – October 31, 2022 and July 31, 2022	37
	Condensed Statements of Operations – Three months ended October 31, 2022 and 2021	38
	Condensed Statements of Cash Flows – Three months ended October 31, 2022 and 2021	39
	Notes to Condensed Financial Statements	40

ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	41
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	56
ITEM 4.	CONTROLS AND PROCEDURES	57

PART II - OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	57
ITEM 1A.	RISK FACTORS	58
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	58
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	58
ITEM 4.	MINE SAFETY DISCLOSURES	58
ITEM 5.	OTHER INFORMATION	58
ITEM 6.	EXHIBITS	59

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PART I - FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS (unaudited)

FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except unit data)

(unaudited)


	October 31, 2022		July 31, 2022
ASSETS
Current assets:
Cash and cash equivalents (including $11,132 and $11,208 of restricted cash at October 31, 2022 and July 31, 2022, respectively)	$	55,305	$	158,737
Accounts and notes receivable, net		158,674		150,395
Inventories		120,145		115,187
Price risk management asset		24,944		43,015
Prepaid expenses and other current assets		68,530		30,764
Total current assets		427,598		498,098

Property, plant and equipment, net		608,101		603,148
Goodwill, net		257,006		257,099
Intangible assets (net of accumulated amortization of $343,110 and $440,121 at October 31, 2022 and July 31, 2022, respectively)		105,924		97,638
Operating lease right-of-use assets		67,814		72,888
Other assets, net		71,151		79,244
Total assets	$	1,537,594	$	1,608,115

LIABILITIES, MEZZANINE AND EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$	60,787	$	57,586
Broker margin deposit liability		20,108		32,805
Short-term borrowing		15,000		—
Current portion of long-term debt		2,442		1,792
Current operating lease liabilities		25,334		25,824
Other current liabilities		187,696		185,805
Total current liabilities		311,367		303,812

Long-term debt		1,451,659		1,450,016
Operating lease liabilities		43,009		47,231
Other liabilities		37,279		43,518
Contingencies and commitments (Note L)

Mezzanine equity:
Senior preferred units, net of issue discount and offering costs (700,000 units outstanding at October 31, 2022 and July 31, 2022)		651,349		651,349

Equity (Deficit):
Limited partner unitholders
Class A (4,857,605 units outstanding at October 31, 2022 and July 31, 2022)		(1,249,702)		(1,229,823)
Class B (1,300,000 units outstanding at October 31, 2022 and July 31, 2022)		383,012		383,012
General partner unitholder (49,496 units outstanding at October 31, 2022 and July 31, 2022)		(71,521)		(71,320)
Accumulated other comprehensive (loss) income		(10,571)		37,907
Total Ferrellgas Partners, L.P. deficit		(948,782)		(880,224)
Noncontrolling interest		(8,287)		(7,587)
Total deficit		(957,069)		(887,811)
Total liabilities, mezzanine and deficit	$	1,537,594	$	1,608,115

See notes to condensed consolidated financial statements.

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FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per unit data)

(unaudited)


	For the three months ended October 31,
	2022		2021
Revenues:
Propane and other gas liquids sales	$	385,844	$	372,704
Other		27,445		21,802
Total revenues		413,289		394,506

Costs and expenses:
Cost of sales - propane and other gas liquids sales		213,081		220,538
Cost of sales - other		4,776		3,610
Operating expense - personnel, vehicle, plant and other		129,740		117,112
Operating expense - equipment lease expense		6,024		5,690
Depreciation and amortization expense		22,631		20,295
General and administrative expense		14,833		12,575
Non-cash employee stock ownership plan compensation charge		723		909
Loss on asset sales and disposals		1,680		1,410

Operating income		19,801		12,367

Interest expense		(25,009)		(25,395)
Other income, net		469		4,264

Loss before income taxes		(4,739)		(8,764)

Income tax expense		18		96

Net loss		(4,757)		(8,860)

Net loss attributable to noncontrolling interest		(212)		(254)

Net loss attributable to Ferrellgas Partners, L.P.	$	(4,545)	$	(8,606)

Class A unitholders' interest in net loss (Note M)	$	(20,751)	$	(25,525)

Basic and diluted net loss per Class A Unit (Note M)	$	(4.27)	$	(5.25)

See notes to condensed consolidated financial statements.

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FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands)

(unaudited)


	For the three months ended October 31,
	2022		2021

Net loss	$	(4,757)	$	(8,860)
Other comprehensive (loss) income:
Change in value of risk management derivatives		(36,185)		72,932
Reclassification of gains on derivatives to earnings, net		(12,788)		(22,610)
Other comprehensive (loss) income		(48,973)		50,322
Comprehensive (loss) income		(53,730)		41,462
Comprehensive loss attributable to noncontrolling interest		707		509
Comprehensive (loss) income attributable to Ferrellgas Partners, L.P.	$	(53,023)	$	41,971

See notes to condensed consolidated financial statements.

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FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF EQUITY (DEFICIT)

(in thousands)

(unaudited)



	Number of units									Accumulated		Total Ferrellgas
			General					General		other		Partners, L.P.
	Class A	Class B	partner	Class A		Class B		partner		comprehensive		partners'		Non-controlling		Total partners'
	unitholders	unitholders	unitholder	unitholders		unitholders		unitholder		income (loss)		deficit		interest		deficit
Balance at July 31, 2022	4,857.6	1,300.0	49.5	$	(1,229,823)	$	383,012	$	(71,320)	$	37,907	$	(880,224)	$	(7,587)	$	(887,811)
Contributions in connection with non-cash ESOP compensation charges	—	—	—		709		—		7		—		716		7		723
Net earnings allocated to preferred units	—	—	—		(16,088)		—		(163)		—		(16,251)		—		(16,251)
Net loss	—	—	—		(4,500)		—		(45)		—		(4,545)		(212)		(4,757)
Other comprehensive loss	—	—	—		—		—		—		(48,478)		(48,478)		(495)		(48,973)
Balance at October 31, 2022	4,857.6	1,300.0	49.5	$	(1,249,702)	$	383,012	$	(71,521)	$	(10,571)	$	(948,782)	$	(8,287)	$	(957,069)



	Number of units									Accumulated		Total Ferrellgas
			General					General		other		Partners, L.P.
	Class A	Class B	partner	Class A		Class B		partner		comprehensive		partners’		Non-controlling		Total partners’
	unitholders	unitholders	unitholder	unitholders		unitholders		unitholder		income		deficit		interest		deficit
Balance at July 31, 2021	4,857.6	1,300.0	49.5	$	(1,214,813)	$	383,012	$	(72,178)	$	88,866	$	(815,113)	$	(7,966)	$	(823,079)
Contributions in connection with non-cash ESOP compensation charges	—	—	—		892		—		8		—		900		9		909
Distributions to Class B unitholders	—	—	—		—		(49,998)		—		—		(49,998)		—		(49,998)
Net earnings allocated to preferred units	—	—	—		(16,835)		—		(170)		—		(17,005)		—		(17,005)
Net loss	—	—	—		(8,520)		—		(86)		—		(8,606)		(254)		(8,860)
Other comprehensive income	—	—	—		—				—		49,813		49,813		509		50,322
Balance at October 31, 2021	4,857.6	1,300.0	49.5	$	(1,239,276)	$	333,014	$	(72,426)	$	138,679	$	(840,009)	$	(7,702)	$	(847,711)

See notes to condensed consolidated financial statements.

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FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)


	For the three months ended October 31,
	2022		2021
Cash flows from operating activities:
Net loss	$	(4,757)	$	(8,860)
Reconciliation of net loss to net cash used in operating activities:
Depreciation and amortization expense		22,631		20,295
Non-cash employee stock ownership plan compensation charge		723		909
Loss on asset sales and disposals		1,680		1,410
Provision for expected credit losses		321		640
Other		2,000		1,904
Changes in operating assets and liabilities, net of effects from business acquisitions:
Accounts and notes receivable		(8,600)		(32,539)
Inventories		(4,958)		(42,901)
Prepaid expenses and other current assets		(37,766)		(20,507)
Accounts payable		3,373		32,119
Accrued interest expense		(20,268)		(20,627)
Other current liabilities		(16,344)		52,376
Other assets and liabilities		(4,821)		520
Net cash used in operating activities		(66,786)		(15,261)

Cash flows from investing activities:
Business acquisitions, net of cash acquired		(13,290)		(9,758)
Capital expenditures		(22,247)		(20,440)
Proceeds from sale of assets		752		641
Net cash used in investing activities		(34,785)		(29,557)

Cash flows from financing activities:
Preferred unit distributions		(15,580)		(15,673)
Distributions to Class B unitholders		—		(49,998)
Payments on long-term debt		(979)		(595)
Proceeds from short-term borrowings		30,000		—
Repayments of short-term borrowings		(15,000)		—
Cash paid for financing costs		—		(319)
Cash payments for principal portion of lease liability		(302)		(1,698)
Net cash used in financing activities		(1,861)		(68,283)

Net change in cash, cash equivalents and restricted cash		(103,432)		(113,101)
Cash, cash equivalents and restricted cash - beginning of period		158,737		281,952
Cash, cash equivalents and restricted cash - end of period	$	55,305	$	168,851

See notes to condensed consolidated financial statements.

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FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)


	October 31, 2022		July 31, 2022
ASSETS
Current assets:
Cash and cash equivalents (including $11,132 and $11,208 of restricted cash at October 31, 2022 and July 31, 2022, respectively)	$	55,033	$	158,466
Accounts and notes receivable, net		158,674		150,395
Inventories		120,145		115,187
Price risk management asset		24,944		43,015
Prepaid expenses and other current assets		68,509		30,743
Total current assets		427,305		497,806

Property, plant and equipment, net		608,101		603,148
Goodwill, net		257,006		257,099
Intangible assets (net of accumulated amortization of $343,110 and $440,121 at October 31, 2022 and July 31, 2022, respectively)		105,924		97,638
Operating lease right-of-use assets		67,814		72,888
Other assets, net		71,151		79,244
Total assets	$	1,537,301	$	1,607,823

LIABILITIES, MEZZANINE AND DEFICIT

Current liabilities:
Accounts payable	$	60,787	$	57,586
Broker margin deposit liability		20,108		32,805
Short-term borrowing		15,000		—
Current portion of long-term debt		2,442		1,792
Current operating lease liabilities		25,334		25,824
Other current liabilities		187,417		185,528
Total current liabilities		311,088		303,535

Long-term debt		1,451,659		1,450,016
Operating lease liabilities		43,009		47,231
Other liabilities		37,279		43,518
Contingencies and commitments (Note L)

Mezzanine equity:
Senior preferred units, net of issue discount and offering costs (700,000 units outstanding at October 31, 2022 and July 31, 2022)		651,349		651,349

Deficit:
Limited partners		(938,225)		(918,146)
General partner		(8,192)		(7,987)
Accumulated other comprehensive (loss) income		(10,666)		38,307
Total deficit		(957,083)		(887,826)
Total liabilities, mezzanine and deficit	$	1,537,301	$	1,607,823

See notes to condensed consolidated financial statements.

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FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands)

(unaudited)


	For the three months ended October 31,
	2022		2021

Revenues:
Propane and other gas liquids sales	$	385,844	$	372,704
Other		27,445		21,802
Total revenues		413,289		394,506

Costs and expenses:
Cost of sales - propane and other gas liquids sales		213,081		220,538
Cost of sales - other		4,776		3,610
Operating expense - personnel, vehicle, plant and other		129,740		117,112
Operating expense - equipment lease expense		6,024		5,690
Depreciation and amortization expense		22,631		20,295
General and administrative expense		14,831		12,575
Non-cash employee stock ownership plan compensation charge		723		909
Loss on asset sales and disposals		1,680		1,410

Operating income		19,803		12,367

Interest expense		(25,009)		(25,395)
Other income, net		468		4,957

Loss before income taxes		(4,738)		(8,071)

Income tax expense		18		96

Net loss	$	(4,756)	$	(8,167)

See notes to condensed consolidated financial statements.

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FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands)

(unaudited)


	For the three months ended October 31,
	2022		2021

Net loss	$	(4,756)	$	(8,167)
Other comprehensive (loss) income:
Change in value of risk management derivatives		(36,185)		72,932
Reclassification of gains on derivatives to earnings, net		(12,788)		(22,610)
Other comprehensive (loss) income		(48,973)		50,322
Comprehensive (loss) income	$	(53,729)	$	42,155

See notes to condensed consolidated financial statements.

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FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF PARTNERS’ DEFICIT

(in thousands)

(unaudited)


					Accumulated
					other		Total
	Limited		General		comprehensive		partners’
	partner		partner		income (loss)		deficit
Balance at July 31, 2022	$	(918,146)	$	(7,987)	$	38,307	$	(887,826)
Contributions in connection with non-cash ESOP compensation charges		716		7		—		723
Net earnings allocated to preferred units		(16,251)		—		—		(16,251)
Net loss		(4,544)		(212)		—		(4,756)
Other comprehensive loss		—		—		(48,973)		(48,973)
Balance at October 31, 2022	$	(938,225)	$	(8,192)	$	(10,666)	$	(957,083)


					Accumulated
					other		Total
	Limited		General		comprehensive		partners’
	partner		partner		income		deficit
Balance at July 31, 2021	$	(887,043)	$	(8,886)	$	89,786	$	(806,143)
Contributions in connection with non-cash ESOP compensation charges		900		9		—		909
Distributions		(50,000)		—		—		(50,000)
Net earnings allocated to preferred units		(17,005)		—		—		(17,005)
Net loss		(7,913)		(254)		—		(8,167)
Other comprehensive income		—		—		50,322		50,322
Balance at October 31, 2021	$	(961,061)	$	(9,131)	$	140,108	$	(830,084)

See notes to condensed consolidated financial statements.

Table of Contents

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)


	For the three months ended October 31,
	2022		2021
Cash flows from operating activities:
Net loss	$	(4,756)	$	(8,167)
Reconciliation of net loss to net cash used in operating activities:
Depreciation and amortization expense		22,631		20,295
Non-cash employee stock ownership plan compensation charge		723		909
Loss on asset sales and disposals		1,680		1,410
Provision for expected credit losses		321		643
Other		2,000		1,901
Changes in operating assets and liabilities, net of effects from business acquisitions:
Accounts and notes receivable		(8,600)		(32,539)
Inventories		(4,958)		(42,901)
Prepaid expenses and other current assets