Ferrellgas Partners, L.P. · OTC:FGPR
Ferrellgas Partners, L.P — 2013 Citi MLP/Midstream Infrastructure Conference
28 slides from Ferrellgas Partners, L.P's conference presentation, August 2013
Slide 1: 2013 Citi MLP/Midstream Infrastructure Conference
2013 Citi MLP/Midstream Infrastructure Conference August 2013 1
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: Executive Management
Executive Management Steve Wambold President and Chief Executive Officer Ryan VanWinkle Executive Vice President & Chief Financial Officer Boyd McGathey Executive Vice President & Chief Operating Officer Tod Brown Executive Vice President; President – Blue Rhino 3
Slide 4: Meeting Agenda
Meeting Agenda Company Overview Organizational Structure Business Overview Financial Performance 4
Slide 5: Company Overview
Company Overview 5
Slide 6: What is Ferrellgas Partners, L.P.
What is Ferrellgas Partners, L.P. Founded in 1939 as a single location, family-owned business In 1994, Ferrellgas Partners, L.P. became the first publicly traded propane master limited partnership (NYSE: FGP) Engaged primarily in the distribution and sale of propane and related equipment and s
Slide 7: Our History…Rich in the Propane Industry
Our History…Rich in the Propane Industry 7
Slide 8: Our Key Brands…Well Established in the Market
Our Key Brands…Well Established in the Market Traditional Retail Propane Business Tank Exchange Business Logistics, Risk Management and Wholesale Consumer Products Business 8
Slide 9: Organizational Structure
Organizational Structure eee ep YS)
Slide 10: An Overview of our Organizational Structure
An Overview of our Organizational Structure Ferrellgas, L.P. (the Operating Limited Partnership or “OLP”) Owns all of the operating assets/cash flow of the propane business Maintains working capital facility and other subordinated high yield bonds totaling approximately $942 million as of Apri
Slide 11: Significant Management Ownership; 35% by Long-term Investors
Significant Management Ownership; 35% by Long-term Investors Employee Stock Ownership Trust 29% employee ownership (“ESOT”) Stable, Long-term through ESOP 100% Ownership Base 6% ownership by Ferrell Companies, Inc. (“FCI”) Chairman James E. Ferrell 21,716,554Common Units Significant ownership
Slide 12: Business Overview
Business Overview 12
Slide 13: Significant Recent Events
Significant Recent Events Sustained, historically warm nationwide temperatures and unstable wholesale propane prices caused significant change in the propane industry in FY12 Significant industry consolidation has occurred over the last year reducing the number of national providers Organic gr
Slide 14: Significant Recent Events, cont’d
Significant Recent Events, cont’d We anticipated seeing significant Adjusted EBITDA improvement in the first 9 months of the fiscal year…achieved despite warmer than normal temperatures 43% increase year to date April 30; 39% increase in the third fiscal quarter Significant increase in Distrib
Slide 15: Ferrellgas’ Keys To Continued Success
Ferrellgas’ Keys To Continued Success Capitalize on organic growth Opportunities are at their peak resulting from large scale mergers and a challenging operating environment Blue Rhino tank exchange volumes continue to grow through new strategic accounts and same store sales Wholesale opport
Slide 16: 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 consu
Slide 17: Nationwide Footprint – A True Competitive Advantage
Nationwide Footprint – A True Competitive Advantage 17
Slide 18: 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…propane and related products businesses Significant operating synergies among our tank exchange operations and our traditional retail business Blue Rhin
Slide 19: Significant Consolidation Opportunities Continue to Exist in Retail Propane
Significant Consolidation Opportunities Continue to Exist in Retail Propane 5,000+ Independent Retailers 68% NGL 1% Suburban 7% Amerigas 15% Ferrellgas 9% Top 3 Propane Retailers Serve Just Over 30% of the Market 19
Slide 20: Recent Acquisitions
Recent Acquisitions Ferrellgas continues to be active in the market with a keen eye for quality operations, achieving geographic and product diversity 20
Slide 21: Financial Performance
Financial Performance 21
Slide 22: Historical Warmth Drove 2012 Performance
Historical Warmth Drove 2012 Performance Extreme nationwide warmth significantly impacted retail sales in fiscal 2012 for the propane industry 22
Slide 23: Wholesale Propane Prices Didn’t Respond to Industry Demand in 2012
Wholesale Propane Prices Didn’t Respond to Industry Demand in 2012 $1.65 $1.55 $1.45 $1.35 $1.25 $1.15 cpg $1.05 $0.95 $0.85 $0.75 $0.65 $0.55 $0.45 10 010 010 010 010 011 011 011 011 011 011 011 011 011 011 011 011 012 012 012 012 012 012 012 012 012 012 012 012 013 013 013 013 20 2 2 /2 /2 2 2 2 2
Slide 24: Fiscal 2013 Results Reflective of More Seasonal Temperatures and Wholesale Pricing
Fiscal 2013 Results Reflective of More Seasonal Temperatures and Wholesale Pricing Thanks to a much colder Spring, nationwide temperatures were closer to normal in fiscal 2013 yet still 4% warmer than normal Wholesale propane costs down nearly 35% to prior year 24
Slide 25: A Return to More Historical Financial Performance
A Return to More Historical Financial Performance ($ and gallons in millions) Fiscal year ended July 31, TTM 2008 2009 2010 2011 2012 Apr 2013 Gallons Retail - Sales to End Users 656.8 652.8 681.0 655.4 619.3 637.7 Wholesale - Sales to Resellers 182.0 222.0 241.6 244.3 258.8 258.2 Total 838.8 874.8
Slide 26: Debt Maturity Schedule; Structured for the Long-Term
Debt Maturity Schedule; Structured for the Long-Term Debt maturity schedule ($ in millions) Calendar year Principal Amount 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Ferrellgas, L.P. Senior Credit Facility $400.0 ***** AR Securitization factiliy 225.0 ***** 6.50% Senior notes due 2021 500.0 5
Slide 27: Our Path to Success Continues…
Our Path to Success Continues… 350.0 98% 99% 96% 97% 96% 300.0 $272.5 $266.5 $264.3 81% $251.1 250.0 $227.6 $221.9 $193.1 200.0 $1.53 150.0 $1.35 1.13x $1.25 1.10x 1.13x 1.08x .92x 100.0 $1.09 .85x $0.89 $0.88 .60x 50.0 0.0 Fy08 Fy09 Fy10 Fy11 Fy12 TMM Apr - Fy13 FY13 - Mid point guidance Adjusted E
Slide 28: Questions
Questions 28
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