Core Viewpoint - Ferrellgas, L.P. successfully completed an offering of $650 million in senior notes, enhancing its financial flexibility and supporting long-term growth initiatives [1][4]. Group 1: Senior Notes Offering - The company issued $650 million in 9.250% senior notes due 2031 at an offering price of 100% of the principal [1]. - The notes are senior obligations guaranteed by Ferrellgas, Inc. and its subsidiaries, with proceeds used to redeem existing 5.375% senior notes due 2026 [2]. Group 2: Credit Agreement Amendment - Ferrellgas entered into a Seventh Amendment to its Credit Agreement, extending maturity to October 2028 and increasing borrowing capacity to $350 million [3]. - The amendment includes an accordion feature allowing for an additional $50 million in borrowing under certain conditions [3]. Group 3: Management Commentary - The CEO highlighted the significance of these transactions for financial flexibility and long-term strategic growth, emphasizing the trust and hard work of employees [4]. Group 4: Company Overview - Ferrellgas Partners, L.P. provides propane services across all 50 states, the District of Columbia, and Puerto Rico [5].

Core Viewpoint - Ferrellgas, L.P. and its subsidiary announced the pricing of a $650 million offering of 9.250% senior notes due 2031, expected to close around October 27, 2025 [1][2] Group 1: Offering Details - The offering consists of $650 million aggregate principal amount of senior notes priced at 100% of the principal [1] - The notes will be senior obligations guaranteed by Ferrellgas, Inc. and its existing and future subsidiaries [2] - The net proceeds will be used to redeem all of the Issuers' 5.375% Senior Notes due 2026, contingent upon the completion of the offering and an amendment to the credit agreement [2] Group 2: Regulatory Information - The notes have not been registered under the Securities Act of 1933 and may not be offered or sold in the U.S. without registration or an exemption [3] - The offering is limited to qualified institutional buyers and certain non-U.S. persons [3] Group 3: Company Overview - Ferrellgas Partners, L.P. serves propane customers across all 50 states, the District of Columbia, and Puerto Rico through its operating partnership and subsidiaries [4]

Core Viewpoint - Ferrellgas, L.P. plans to offer $650 million in senior notes due 2031 to refinance existing debt and improve financial flexibility [1][2]. Group 1: Offering Details - The senior notes will be guaranteed on a senior unsecured basis by Ferrellgas, Inc. and its subsidiaries, with certain exceptions [2]. - The proceeds from the offering will be used to redeem all of the existing 5.375% Senior Notes due 2026, contingent upon the successful completion of the offering and an amendment to the credit agreement [2]. Group 2: Regulatory Information - The notes will not be registered under the Securities Act of 1933 and will be offered only to qualified institutional buyers and certain non-U.S. persons [3]. Group 3: Company Overview - Ferrellgas Partners, L.P. provides propane services across all 50 states, the District of Columbia, and Puerto Rico through its operating partnership and subsidiaries [4].

Core Insights - Ferrellgas Partners, L.P. reported growth in annual sales volume, revenue, gross profit, and adjusted EBITDA for fiscal year 2025, despite a decrease in adjusted EBITDA for the fourth quarter [2][5]. Financial Highlights - For the fourth fiscal quarter, adjusted EBITDA decreased by $10.5 million, or 31%, to $23.1 million compared to $33.6 million in the prior year quarter, primarily due to increased general and administrative expenses and operating expenses [3][4]. - For fiscal 2025, adjusted EBITDA increased by $13.3 million, or 4%, to $330.7 million compared to $317.4 million in fiscal 2024, driven by a $39.7 million increase in gross profit [5][6]. - Gross profit for fiscal 2025 reached over $1.0 billion, a 4% increase, attributed to a $101.2 million increase in revenues, partially offset by a $61.5 million increase in cost of product [6][10]. Operational Highlights - Gallons sold for the fourth fiscal quarter decreased by 3.3 million gallons, or 2%, but increased by 20.4 million gallons, or 3%, for fiscal 2025 [12]. - Retail sales increased by $2.9 million, or 2%, for the fourth fiscal quarter and $48.3 million, or 4%, for fiscal 2025, with growth across all customer types except agricultural customers [13]. - Wholesale sales increased by $0.4 million, or 0.2%, for the fourth fiscal quarter and $41.6 million, or 8%, for fiscal 2025 [14]. Expense Analysis - The increase in operating expenses for fiscal 2025 was $24.7 million, driven by increases in plant and other expenses and personnel costs [5][7]. - Interest expense increased by $9.8 million, primarily due to higher amortization of debt issuance costs and other interest charges [8]. Net Loss - The company recognized a net loss attributable to Ferrellgas Partners, L.P. of $26.8 million for the fourth fiscal quarter and $15.6 million for fiscal 2025, compared to net earnings of $110.2 million in fiscal 2024 [9][22].

Core Insights - Ferrellgas continues its commitment to educational advancement through the Ferrellgas Scholarship Program, supporting 14 students in their higher education journeys [1][2][3] Group 1: Scholarship Program Overview - The Ferrellgas Scholarship Program, now in its fourth decade, provides financial support to children of Ferrellgas and Blue Rhino employees, focusing on academic achievement, community involvement, leadership, and financial need [2] - This initiative is part of the Ferrellgas Century Project, which aims to give back to youth and communities as the company approaches its 100th anniversary in 2039 [2] Group 2: Scholarship Recipients - The 2025 scholarship recipients will study various fields including nursing, mechanical engineering, finance, psychology, and environmental conservation at colleges across the country [3][6] - The program reflects Ferrellgas's values of hard work, integrity, service, and a vision for a better future [3] Group 3: Company Background - Ferrellgas Partners, L.P. serves propane customers in all 50 states, the District of Columbia, and Puerto Rico, with its Blue Rhino brand available at over 65,000 locations nationwide [4] - Employees indirectly own 1.1 million Class A Units of the partnership through an employee stock ownership plan [4]

Financial Data and Key Metrics Changes - The net loss for Q3 was $10.8 million or $0.17 per common unit, compared to a net loss of $8 million or $0.12 per common unit in the prior year [11] - Adjusted EBITDA for Q3 was $27 million, consistent with the prior year [11] - Total gross margin for Q3 was $163.5 million, unchanged from the prior year [13] - The consolidated leverage ratio improved to 4.33 times compared to 4.54 times at the end of the second quarter [14] Business Line Data and Key Metrics Changes - Retail propane gallons sold in Q3 were 71.9 million gallons, in line with the prior year [12] - Average wholesale propane prices increased by 4.7% compared to the prior year [12] - Average daily RNG injection declined slightly compared to the prior year due to operational downtime [8] Market Data and Key Metrics Changes - Propane inventories at the end of Q3 were at 75.7 million barrels, flat compared to June 2024 and roughly 10% higher than historical averages [13] - California LCFS credit prices increased by 30% since the amendments were finalized in late June 2025, while average Federal D3 RIN prices were down 21% year over year [10] Company Strategy and Development Direction - The long-term strategic growth plan focuses on fostering the growth of the core propane business while investing in lower carbon renewable energy alternatives [18] - The company is advancing capital projects at RNG facilities in Columbus, Ohio, and Upstate New York, expected to increase overall RNG sales once operational [8] Management's Comments on Operating Environment and Future Outlook - Management noted strong cash flow generation in Q3 due to collections on receivables and highlighted the impact of warm temperatures on propane volumes [7][10] - The company remains focused on operational improvements and strategic growth initiatives, including potential M&A opportunities [18][29] Other Important Information - The quarterly distribution declared was $0.0325 per common unit, equating to an annualized rate of $1.3 per common unit, with a distribution coverage of 2.16 times [16] - The company is actively monitoring regulatory developments related to RNG tax credits and the OBVA bill [22][25] Q&A Session Summary Question: Update on RNG rulemaking and tax credits - Management indicated no credits recognized under 45Z until final regulations are released, expected by the end of the calendar year [22] Question: Timing of New York and Columbus projects - Columbus and Upstate New York projects are on track for late this calendar year into early next year, while Arizona improvements are ongoing with no major timeline [27] Question: Size of insurance payout benefit and O&M trends - The insurance payout benefit was less than $2 million, offsetting inflation impacts, with expected inflation around 3% going forward [28] Question: M&A activity - The company is seeing a typical pipeline of M&A opportunities and remains focused on strategic growth through acquisitions [29]

Company Overview - Flame King Holdings, LLC is a leading supplier of propane storage solutions and accessories, founded in 1998 and headquartered in Commerce, California [2] - The company serves a diverse customer base, including retailers, propane tank exchangers, RV OEMs, and eCommerce platforms, catering to recreational, commercial, and industrial customers [2] - Flame King offers a complete line of steel and aluminum propane cylinders, with sizes ranging from 1 lb. to 420 lbs., designed for various residential, recreational, and industrial applications [2] Investment Details - Main Street Capital Corporation has completed a follow-on portfolio investment of $66.0 million to facilitate the minority recapitalization of Flame King [1] - The investment consists of first-lien, senior secured term debt and includes a revolving line of credit to support Flame King's growth initiatives and working capital needs [1] - Main Street initially invested in Flame King in October 2021, indicating a continued commitment to the company's growth [1] Main Street Capital Corporation Overview - Main Street Capital Corporation is a principal investment firm that provides customized long-term debt and equity capital solutions primarily to lower middle market companies [3] - The firm typically invests in management buyouts, recapitalizations, growth financings, refinancings, and acquisitions across diverse industry sectors [3] - Main Street's lower middle market portfolio companies generally have annual revenues between $10 million and $150 million, while its private loan portfolio companies have annual revenues between $25 million and $500 million [3]

Core Viewpoint - Ferrellgas Partners, L.P. reported strong financial performance for the third fiscal quarter of 2025, with notable growth in sales, gross profit, and net earnings, driven by favorable market conditions and operational efficiencies [2][3][5]. Financial Highlights - Revenue increased by 9% year-over-year, reaching $560.8 million, with retail and wholesale sales growing by 9% and 8% respectively [3][22]. - Gross profit rose by $16.9 million, or 6%, to $289.2 million, influenced by a $45.1 million increase in revenues, partially offset by a $28.1 million rise in cost of products [4][22]. - Net earnings attributable to Ferrellgas Partners, L.P. were $59.1 million, up from $52.8 million in the prior year, reflecting a $6.3 million increase primarily due to higher gross profit [5][22]. Operational Highlights - Propane sales volumes increased by 13.4 million gallons, or 6%, compared to the prior year, with residential sales volume growing by 12% [9][10]. - The company gained six new national account customers through a three-year deal, expected to add 1.6 million gallons of new business [13]. - Blue Rhino, the tank exchange business, is preparing for the peak summer selling season, with capital projects underway to enhance efficiency [12]. Cost and Expense Analysis - Operating expenses increased by $8.8 million, driven by higher costs in plant operations, personnel, and vehicle expenses [6][22]. - Interest expense rose by $3.5 million, primarily due to debt issuance costs and lease-related charges [7][22]. Adjusted EBITDA - Adjusted EBITDA increased by $10.8 million, or 10%, to $114.8 million, supported by the rise in gross profit and a decrease in general and administrative expenses [8][24]. Debt Refinancing - The company is actively working on refinancing its $308.8 million revolving credit facility and $650.0 million senior unsecured notes, with completion anticipated before maturity [16].

Core Message - Blue Rhino, a brand of Ferrellgas Partners, L.P., is collaborating with the International Rhino Foundation (IRF) to launch the "Keep the Five Alive" campaign aimed at protecting the world's five remaining rhino species from extinction [1][2][3] Group 1: Campaign Details - The campaign will commence on May 5, 2025, highlighting the urgent threats to the Javan, Sumatran, Greater One-Horned, Black, and White rhinos, with a total wild population of fewer than 28,000 [2] - Some species, such as the Javan and Sumatran rhinos, are critically endangered, with only dozens remaining in the wild [2] Group 2: Company Commitment - Blue Rhino is enhancing its commitment by matching all donations made from May 1-7, up to $35,000, and unveiling a limited-edition tank sleeve featuring the endangered Black rhino [8] - The company is also launching giveaways to promote awareness and engaging customers through social media and email campaigns [8] Group 3: Company Background - Ferrellgas Partners, L.P. serves propane customers across all 50 states, the District of Columbia, and Puerto Rico, with Blue Rhino propane exchange available at over 60,000 locations [4] - The company has an employee stock ownership plan, with employees indirectly owning 1.1 million Class A Units of the partnership [4] Group 4: International Rhino Foundation Overview - The IRF focuses on conservation initiatives for threatened rhino populations, investing over $25 million in rhino conservation and research over the past decade [5]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q1 2025 was $75.3 million, essentially flat compared to the prior year [6][10] - Net income for Q1 2025 was $38 million or $0.59 per common unit, down from $40.4 million or $0.63 per common unit in the prior year [10][12] - Total gross margin for Q1 2025 was $222.5 million, a decrease of $1 million or 0.5% compared to the prior year [11][12] Business Line Data and Key Metrics Changes - Retail propane gallons sold were 105.7 million, down 0.8% from the prior year, primarily due to lower heat-related demand [10][11] - Renewable natural gas (RNG) injection was lower than the prior year due to a planned shutdown for maintenance and upgrades [8][9] Market Data and Key Metrics Changes - Average temperatures during Q1 2025 were 7% warmer than normal, impacting propane demand [11] - Average wholesale propane prices increased by 15% to $0.77 per gallon compared to the prior year [11] Company Strategy and Development Direction - The company focuses on growing its core propane business and expanding its renewable energy platform through strategic investments [18][22] - Over the past five years, the company has invested approximately $320 million in renewable fuels, hydrogen, and RNG [18][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in handling increased demand due to colder weather in early 2025, stating that the company is well-prepared [7][23] - The company anticipates that its leverage metric will improve as growth projects are completed and earnings increase [16][33] Other Important Information - The quarterly distribution was declared at $0.325 per common unit, with a coverage ratio of 1.87 times for the trailing twelve months [17] - The company recognized impairment charges of $19.8 million related to investments in Oberon Fuels and Independence Hydrogen [19][20] Q&A Session Summary Question: How is the system handling the colder weather and pricing aspects? - Management stated that the platform is built for cold weather and is effectively managing increased demand and pricing volatility [26][29] Question: Can you expand on the leverage and timing for production tax credits? - Management indicated that liquidity is not an issue and that leverage will improve as new RNG assets come online and production tax credits are monetized [32][33][36]