Guarantor financial information | M. Guarantor financial information The $500.0 million aggregate principal amount of registered 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 October 31, 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 $ 296,890 $ 1 $ — $ 2,631 $ — $ 299,522 Accounts and notes receivable, net 15,547 — — 103,941 — 119,488 Intercompany receivables 87,191 — — — (87,191) — Inventories 78,980 — — — — 78,980 Prepaid expenses and other current assets 40,044 — — — — 40,044 Total current assets 518,652 1 — 106,572 (87,191) 538,034 Property, plant and equipment, net 592,132 — — — — 592,132 Goodwill, net 246,946 — — — — 246,946 Intangible assets, net 101,812 — — — — 101,812 Investments in consolidated subsidiaries 37,821 — — — (37,821) — Operating lease right-of-use assets 100,349 — — — — 100,349 Other assets, net 71,029 — 2,255 238 — 73,522 Total assets $ 1,668,741 $ 1 $ 2,255 $ 106,810 $ (125,012) $ 1,652,795 LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) Current liabilities: Accounts payable $ 44,641 $ — $ — $ — $ — $ 44,641 Intercompany payables — — — 87,191 (87,191) — Current portion of long-term debt 502,095 — — — — 502,095 Current operating lease liabilities 28,280 — — — — 28,280 Other current liabilities 175,856 — — (15,946) — 159,910 Total current liabilities 750,872 — — 71,245 (87,191) 734,926 Long-term debt 1,647,106 — — — — 1,647,106 Operating lease liabilities 83,337 — — — — 83,337 Other liabilities 49,543 — — — — 49,543 Contingencies and commitments Partners' capital (deficit): Partners' equity (867,721) 1 2,255 35,565 (37,821) (867,721) Accumulated other comprehensive income 5,604 — — — — 5,604 Total partners' capital (deficit) (862,117) 1 2,255 35,565 (37,821) (862,117) Total liabilities and partners' capital (deficit) $ 1,668,741 $ 1 $ 2,255 $ 106,810 $ (125,012) $ 1,652,795 FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS (in thousands) As of July 31, 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 $ 332,244 $ 1 $ — $ 1,510 $ — $ 333,755 Accounts and notes receivable, net 11,879 — 24 89,535 — 101,438 Intercompany receivables 69,980 — — — (69,980) — Inventories 72,664 — — — . 72,664 Prepaid expenses and other current assets 35,897 — — — — 35,897 Total current assets 522,664 1 24 91,045 (69,980) 543,754 Property, plant and equipment, net 591,042 — — — — 591,042 Goodwill, net 247,195 — — — — 247,195 Intangible assets, net 104,049 — — — — 104,049 Investments in consolidated subsidiaries 37,662 — — — (37,662) — Operating lease right-of-use assets 107,349 — — — — 107,349 Other assets, net 72,137 — 2,255 356 — 74,748 Total assets $ 1,682,098 $ 1 $ 2,279 $ 91,401 $ (107,642) $ 1,668,137 LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) Current liabilities: Accounts payable $ 33,944 $ — $ — $ — $ — $ 33,944 Intercompany payables — — — 69,980 (69,980) — Current portion of long-term debt 502,095 — — — — 502,095 Current operating lease liabilities 29,345 — — — — 29,345 Other current liabilities 162,097 — — (13,961) — 148,136 Total current liabilities 727,481 — — 56,019 (69,980) 713,520 Long-term debt 1,646,396 — — — — 1,646,396 Operating lease liabilities 89,022 — — — — 89,022 Other liabilities 51,190 — — — — 51,190 Contingencies and commitments Partners' capital (deficit): Partners' equity (829,678) 1 2,279 35,382 (37,662) (829,678) Accumulated other comprehensive income (2,313) — — — — (2,313) Total partners' capital (deficit) (831,991) 1 2,279 35,382 (37,662) (831,991) Total liabilities and partners' capital (deficit) $ 1,682,098 $ 1 $ 2,279 $ 91,401 $ (107,642) $ 1,668,137 FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (in thousands) For the three months ended October 31, 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 $ 281,049 $ — $ — $ — $ — $ 281,049 Other 19,845 — — — — 19,845 Total revenues 300,894 — — — — 300,894 Costs and expenses: Cost of sales - propane and other gas liquids sales 137,627 — — — — 137,627 Cost of sales - other 3,667 — — — — 3,667 Operating expense - personnel, vehicle, plant and other 109,027 — — 737 (737) 109,027 Operating expense - equipment lease expense 6,830 — — — — 6,830 Depreciation and amortization expense 21,390 — — — — 21,390 General and administrative expense 13,074 2 — — — 13,076 Non-cash employee stock ownership plan compensation charge 708 — — — — 708 Loss on asset sales and disposals 813 — — — — 813 Operating income (loss) 7,758 (2) — (737) 737 7,756 Interest expense (45,901) — — (627) — (46,528) Other income (expense), net 129 — (21) 1,679 (1,679) 108 Earnings (loss) before income taxes (38,014) (2) (21) 315 (942) (38,664) Income tax expense 87 — — — — 87 Equity in earnings (loss) of subsidiaries 292 — — — (292) — Net earnings (loss) (37,809) (2) (21) 315 (1,234) (38,751) Other comprehensive income 7,917 — — — — 7,917 Comprehensive income (loss) $ (29,892) $ (2) $ (21) $ 315 $ (1,234) $ (30,834) FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (in thousands) For the three months ended October 31, 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 $ 273,385 $ — $ — $ — $ — $ 273,385 Other 19,829 — — — — 19,829 Total revenues 293,214 — — — — 293,214 Costs and expenses: Cost of sales - propane and other gas liquids sales 134,028 — — — — 134,028 Cost of sales - other 3,681 — — — — 3,681 Operating expense - personnel, vehicle, plant and other 114,543 — — 885 (885) 114,543 Operating expense - equipment lease expense 8,388 — — — — 8,388 Depreciation and amortization expense 19,107 — — 112 — 19,219 General and administrative expense 9,695 1 — — — 9,696 Non-cash employee stock ownership plan compensation charge 795 — — — — 795 Loss on asset sales and disposals 2,235 — — — — 2,235 Operating income (loss) 742 (1) — (997) 885 629 Interest expense (35,691) — — (1,186) — (36,877) Other income (expense), net (132) — — 720 (720) (132) Earnings (loss) before income taxes (35,081) (1) — (1,463) 165 (36,380) Income tax expense 518 — — — — 518 Equity in earnings (loss) of subsidiary (1,464) — — — 1,464 — Net earnings (loss) (37,063) (1) — (1,463) 1,629 (36,898) Other comprehensive loss (6,148) — — — — (6,148) Comprehensive income (loss) $ (43,211) $ (1) $ — $ (1,463) $ 1,629 $ (43,046) FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (in thousands) For the three months ended October 31, 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 $ (9,925) $ (2) $ 3 $ (2,687) $ 1,121 $ (11,490) Cash flows from investing activities: Business acquisitions, net of cash acquired — — — — — — Capital expenditures (19,454) — — — — (19,454) Proceeds from sale of assets 1,407 — — — — 1,407 Cash collected for purchase of interest in accounts receivable — — — 153,131 (153,131) — Cash remitted to Ferrellgas, L.P. for accounts receivable — — — (152,010) 152,010 — Intercompany loan to affiliate (2,686) — — — 2,686 — Net cash provided by (used in) investing activities (20,733) — — 1,121 1,565 (18,047) Cash flows from financing activities: Payments on long-term debt (696) — — — — (696) Net changes in advances with consolidated entities — 2 (3) 2,687 (2,686) — Cash payments for principal portion of finance lease liability (1,703) — — — — (1,703) Cash paid for financing costs and other (2,297) — — — — (2,297) Net cash provided by (used in) financing activities (4,696) 2 (3) 2,687 (2,686) (4,696) Net change in cash and cash equivalents (35,354) — — 1,121 — (34,233) Cash and cash equivalents - beginning of year 332,244 1 — 1,510 — 333,755 Cash, cash equivalents and restricted cash - end of year $ 296,890 $ 1 $ — $ 2,631 $ — $ 299,522 FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (in thousands) For the three months ended October 31, 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 $ 21,350 $ (1) $ 506 $ (3,708) $ (11,000) $ 7,147 Cash flows from investing activities: Business acquisitions, net of cash acquired (6,400) — — — — (6,400) Capital expenditures (18,126) — — — — (18,126) Proceeds from sale of assets 835 — — — — 835 Cash collected for purchase of interest in accounts receivable — — — 161,600 (161,600) — Cash remitted to Ferrellgas, L.P. for accounts receivable — — — (172,600) 172,600 — Intercompany loan to affiliate (3,203) — — — 3,203 — Cash payment to construct assets in connection with future lease transactions (16,879) — — — — (16,879) Cash receipts in connection with leased vehicles 5,863 — — — — 5,863 Net cash provided by (used in) investing activities (37,910) — — (11,000) 14,203 (34,707) Cash flows from financing activities: Distributions (101) — — — — (101) Reductions in long-term debt (512) — — — — (512) Net additions to short-term borrowings 37,000 — — — — 37,000 Net additions to collateralized short-term borrowings — — — 11,000 — 11,000 Net changes in advances with consolidated entries — 1 (506) 3,708 (3,203) — Cash payments for principal portion of finance lease liability (38) — — — — (38) Cash paid for financing costs and other (1,102) — — — — (1,102) Net cash provided by (used in) financing activities 35,247 1 (506) 14,708 (3,203) 46,247 Net change in cash and cash equivalents 18,687 — — — — 18,687 Cash and cash equivalents - beginning of year 11,045 1 — — — 11,046 Cash and cash equivalents - end of year $ 29,732 $ 1 $ — $ — $ — $ 29,733 |