Ferrellgas Partners, L.P. · OTC:FGPR
Ferrellgas Partners, L.P — 2012 Wells Fargo Securities Pipeline, Energy and MLP Symposium
22 slides from Ferrellgas Partners, L.P's conference presentation, 2012
Slide 1: 2012 Wells Fargo Securities Pipeline, Energy and MLP Symposium
2012 Wells Fargo Securities Pipeline, Energy and MLP Symposium
Slide 2: Forward Looking Statement Disclaimer
Forward Looking Statement Disclaimer The following information contains, or may be deemed to contain, forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the fut
Slide 3: Management Presenters
Management Presenters Steve Wambold President and Chief Executive Officer Tod Brown Executive Vice President; President Blue Rhino Operations 3
Slide 4: Key Investment Highlights
Key Investment Highlights • Historically Strong, Stable Cash Flows • Add-on Margin Distribution Business • Vast Geographic Presence/Economies of Scale • State of the Art Technology Platform/Operational Excellence • Captive/Growing Customer Base • Strong Management Ownership • Diversification Through
Slide 5: Business Overview
Business Overview
Slide 6: What is Ferrellgas Partners
What is Ferrellgas Partners • Founded in 1939; a publicly traded master limited partnership since 1994 (NYSE: FGP); an equity market value of approximately $1.5 billion • A leading distributor of retail propane and related equipment and supplies primarily in the United States • Approximately 1 milli
Slide 7: Our Brands Are Household Names In Propane
Our Brands Are Household Names In Propane Traditional Retail Operations Tank Exchange Operations Logistics and Wholesale Operations 7
Slide 8: Significant Recent Events
Significant Recent Events • Sustained, historically warm nationwide temperatures and unstable wholesale propane prices have caused significant change in the propane industry • Significant industry consolidation has occurred over the last year reducing the number of national providers • Organic growt
Slide 9: Significant Recent Events (cont'd)
Significant Recent Events (cont’d) • Significantly improved cash flows…and more to come • FY12 3Q distributable cash flow in line with prior year results despite temperatures that were 23% warmer than prior year • Record FY12 4Q adjusted EBITDA and distributable cash flow; a 78% improvement in adjus
Slide 10: Ferrellgas' Keys To Continued Success
Ferrellgas’ Keys To Continued Success • Capitalize on organic growth – Retail - Opportunities are at their peak resulting from large scale mergers and a challenging operating environment – Tank Exchange - Volume continues to grow through new strategic accounts and same store sales growth – FNA - Who
Slide 11: Keys To Continued Success (cont'd)
Keys To Continued Success (cont’d) • Achieve operating efficiencies through technology – Significant synergies have occurred over the last 12 months, made possible by our advanced technology platforms – Blue Rhino operation integration, improved optimization of traditional retail deliveries to custo
Slide 12: Nationwide Footprint – A True Competitive Advantage
Nationwide Footprint – A True Competitive Advantage 12
Slide 13: Diversification Through Tank Exchange Market
Diversification Through Tank Exchange Market • Our Blue Rhino operations help to mitigate seasonality and provide a further catalyst for growth • Blue Rhino tank exchange is the undisputed leader in brand awareness by customers – over 45,000 distribution locations nationwide • Tank exchange operatio
Slide 14: Retail Propane – An Industry Ripe for Consolidation
Retail Propane – An Industry Ripe for Consolidation Top 3 Propane Retailers Serve Just Over 30% of the Market 14
Slide 15: Significant Management Ownership; More than 35% by Long-term Investors
Significant Management Ownership; More than 35% by Long-term Investors Employee Stock Ownership Trust • 30% employee ownership (“ESOT”) Stable, Long-term through ESOP 100% Ownership Base • 6% ownership by Chairman Ferrell Companies, Inc. (“FCI”) James E. Ferrell 21,716,554Common Units • Significant
Slide 16: Financial Overview
Financial Overview
Slide 17: Weather and Commodity Prices…External Factors that Impact Year to Year Performance
Weather and Commodity Prices…External Factors that Impact Year to Year Performance October 2011 – March 2012 was the second warmest winter in recorded history… 18% warmer than normal 17
Slide 18: Weather and Commodity Prices... (cont'd)
Weather and Commodity Prices... (cont’d) Despite supply/demand economics, wholesale propane prices peaked in the inventory build season of fiscal year 2012 putting pressure on retail margins 18
Slide 19: A Stable Cash Flow Business
A Stable Cash Flow Business Prior year results heavily impacted by record warmth and commodity prices; more recent wholesale pricing, lower cost structure and likely cooler temperatures should drive financial performance more in line with historic performance 19
Slide 20: Debt Maturity Schedule; Structured for the Long-Term
Debt Maturity Schedule; Structured for the Long-Term Debt maturity schedule ($ in millions) ******* Actual amount depends on loan balance outstanding in the future Ferrellgas’ capital structure is positioned for the long- term benefit of investors 20
Slide 21: Key Investment Highlights
Key Investment Highlights • Historically Strong, Stable Cash Flows • Add-on Margin Distribution Business • Vast Geographic Presence/Economies of Scale • State of the Art Technology Platform/Operational Excellence • Captive/Growing Customer Base • Strong Management Ownership • Diversification Through
Slide 22: Questions and Answers
Questions and Answers
Ferrellgas Partners — 2012 Wells Fargo Securities Pipeline, Energy and MLP Symposium on 6ix