Ferrellgas Partners is a publicly traded Delaware limited partnership primarily engaged in the retail distribution of propane and related equipment sales. The company operates as a holding entity with two direct subsidiaries, conducting substantially all operations through its operating partnership. Ferrellgas Partners serves residential, industrial/commercial, portable tank exchange, agricultural, wholesale, and other customers across all 50 states, the District of…
Ferrellgas Partners is a publicly traded Delaware limited partnership primarily engaged in the retail distribution of propane and related equipment sales. The company operates as a holding entity with two direct subsidiaries, conducting substantially all operations through its operating partnership. Ferrellgas Partners serves residential, industrial/commercial, portable tank exchange, agricultural, wholesale, and other customers across all 50 states, the District of Columbia, and Puerto Rico. It is recognized as the second largest retail marketer of propane in the United States by retail sales volume and a leading national provider of propane by portable tank exchange.
Ferrellgas Partners generates revenue principally from the distribution and sale of propane and related equipment and supplies. Revenue is derived from transporting propane purchased from third parties to distribution locations and then to customer tanks or portable propane tanks delivered to retailers. Additional revenue comes from portable tank exchanges branded under the name Blue Rhino, delivered through partnership-owned and independently-owned distribution outlets. The company also generates income from the retail sale of propane appliances, parts, fittings, and related services, as well as refined fuels and common carrier services. Gross margin from propane sales is primarily based on the cents-per-gallon difference between customer sales prices and the cost to purchase and deliver propane.
The company operates through the following segments: Propane Operations and Related Equipment Sales.
- Propane Operations and Related Equipment Sales: This segment encompasses the core activities of distributing and selling propane and related equipment and supplies to a diverse customer base. It includes the management of bulk propane delivery to residential, industrial/commercial, and agricultural customers via a fleet of bulk delivery trucks. The segment also oversees the portable tank exchange business, which delivers propane for outdoor cooking using gas grills under the nationally recognized Blue Rhino brand. Additional activities within this segment involve the retail sale of propane appliances, parts, and fittings, as well as the provision of refined fuels and common carrier services. The company leverages its national distribution network, technology platform, and risk management strategies to support operations across this segment, including the use of financial derivative instruments and forward contracts to mitigate commodity price risks.
Ferrellgas Partners holds a strong competitive position as the second largest retail marketer of propane in the United States by volume and a leading provider in the portable tank exchange market. The company benefits from a national footprint of 1,057 propane distribution locations as of July 31, 2025, enabling economies of scale in procurement, transportation, fleet management, and administration. Its competitive advantages include a robust technology platform that optimizes delivery routing, customer service, and operational efficiency, supported by 24/7 emergency customer call capabilities. The firm also emphasizes safety, employee training, and a broad geographic presence that mitigates exposure to regional weather and economic fluctuations.
Ferrellgas Partners serves a diverse customer base including residential, industrial/commercial, portable tank exchange, agricultural, wholesale, and other customers. Residential customers primarily use propane for space heating, water heating, and cooking, while industrial and commercial clients utilize it for heating, manufacturing processes, and as an engine fuel for vehicles and forklifts. Agricultural customers rely on propane for crop drying, space heating, irrigation, and weed control. The portable tank exchange segment serves customers using propane for outdoor cooking via gas grills, serviced through the Blue Rhino brand. The company does not disclose specific customer names in its filing, focusing instead on broad customer categories served nationwide.