Table of Contents
Overview
Ferrellgas Partners L.P., a leading provider of propane and related equipment, recently released its quarterly report for the period ending April 30, 2023. The report highlights the company’s stable revenue from propane sales to end users and resellers.
Distributions
During the nine months ended April 30, 2023, Ferrellgas Partners did not declare or pay any distributions to its Class A Unitholders or the general partner. However, the company made cash distributions totaling approximately $49.9 million to its Class B Unitholders in April 2023 and October 2021.
Ownership
In terms of ownership, Class A Units of Ferrellgas Partners are beneficially owned by various entities, including public Class A Unitholders, James E. Ferrell, Ferrell Companies, FCI Trading Corp., and Ferrell Propane, Inc. Together, these Class A Units represent a 99% limited partner economic interest in Ferrellgas Partners.
Revenue Breakdown
Ferrellgas Partners reported revenue from contracts with customers, disaggregating revenues based on the type of customer and type of revenue. Retail propane sales to end users generated $431,538 for the three months ended April 30, 2023, while wholesale propane sales to resellers amounted to $123,532 during the same period. Other gas sales and additional revenues contributed to a total of $587,347 in propane and related equipment revenues.
Operating Partnership
The company’s operating partnership, which is responsible for recognizing partnership distributions, reported $50,000 in distributions paid by Ferrellgas Partners for the three months ended April 30, 2023. No distributions were reported for the general partner.
Fair Value Measurements
Ferrellgas Partners also disclosed its fair value measurements for derivative financial instruments. The company utilizes derivative instruments to manage its exposure to fluctuations in commodity prices. The fair values of these non-exchange traded commodity derivatives are based on indicative price quotations available through brokers, industry price publications, or recent market transactions. The fair values of Ferrellgas’ long-term debt instruments are estimated based on quoted market prices.
Derivative Instruments and Hedging Activities
During the nine months ended April 30, 2023, Ferrellgas did not recognize any gain or loss in earnings related to hedge ineffectiveness and did not exclude any component of financial derivative contract gains or losses from the assessment of hedge effectiveness. The fair value of derivative instruments and their effect on Ferrellgas’ condensed consolidated statements of comprehensive income are detailed in the quarterly report.
Remaining Performance Obligations
Ferrellgas also provided information regarding its remaining performance obligations, contract assets and liabilities, and accumulated other comprehensive income. The company’s remaining performance obligations are generally related to customers who have remitted payment but have not yet received deliveries of propane.
Conclusion
In conclusion, Ferrellgas Partners reported stable revenue from retail and wholesale propane sales, with total revenue for the three months ended April 30, 2023, amounting to $587,347. The company’s derivative instruments and hedging activities contributed to changes in its comprehensive income and were disclosed in its financial statements. The quarterly report provides valuable insights into the financial performance and operations of Ferrellgas Partners L.P.
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