Financial Analysis

K . Contingencies and commitments Litigation Ferrellgas policy is to expense litigation costs as incurred. Ferrellgas operations are subject to all operating hazards and risks normally incidental to the handling, storing, transporting and otherwise providing for use by consumers of combustible liquids such as propane. As a result, at any given time, we can be threatened with or named as a defendant in various lawsuits arising in the ordinary course of business. We are not a party to any legal proceedings other than various claims and lawsuits arising in the ordinary course of business. It is not possible to determine the ultimate disposition of these matters; however, management is of the opinion that there are no known claims or contingent claims that are reasonably expected to have a material adverse effect on our consolidated financial condition, results of operations and cash flows. Long-term debt related commitments Ferrellgas has long and short-term payment obligations under agreements such as the indentures governing its senior notes. See Note D Debt for a description of these debt obligations and a schedule of future maturities. …

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D. Debt Short-term borrowings The Company classified borrowings under its Credit Facility (as defined below) as short-term because they are primarily used to fund working capital needs that management intends to pay down within the 12-month period following the balance sheet date. As of April 30, 2026, we had $87.5 million in short-term borrowings. For further discussion, see the Senior secured revolving credit facility section below. Long-term debt Long-term debt consists of the following: April 30, 2026 July 31, 2025 Unsecured senior notes Fixed rate, 5.375%, due 2026 (1) $ $ 650,000 Fixed rate, 5.875%, due 2029 825,000 825,000 Fixed rate, 9.250%, due 2031 (2) 650,000 Notes payable 9.1% and 8.9% weighted average interest rate at April 30, 2026 and July 31, 2025, respectively, due 2026 to 2032, net of unamortized discount of $540 and $800 at April 30, 2026 and July 31, 2025, respectively 2,942 4,748 Total debt, excluding unamortized debt issuance and other costs 1,477,942 1,479,748 Unamortized debt issuance and other costs (21,388) (12,108) Less: current portion of long-term debt (3) 1,422 652,178 Long-term debt $ 1,455,132 $ 815,462 (1) The senior notes due 2026 were redeemed in full on October 27, 2025. See Senior unsecured notes section below. (2) The senior notes due 2031 were issued on October 27, 2025. See Senior unsecured notes section below. (3) As of July 31, 2025, this included the $650.0 million aggregate principal amount of 5.375% senior notes due April 1, 2026. …

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For the three months ended April 30, For the nine months ended April 30, 2026 2025 2026 2025 Retail - Sales to End Users $ 369,773 $ 400,006 $ 1,025,412 $ 1,078,412 Wholesale - Sales to Resellers 128,109 129,667 397,676 409,381 Other Gas Sales 7,628 3,873 13,459 19,578 Other 19,049 27,301 84,615 87,337 Propane and related equipment revenues $ 524,559 $ 560,847 $ 1,521,162 $ 1,594,708 …

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L. Unit-Based compensation Non-Employee Director Phantom Unit Plan The Board adopted the Non-Employee Director Phantom Unit Plan (Phantom Plan) in June 2025. Under the terms of the Phantom Plan, the Boards Compensation Committee may grant Phantom Unit awards annually to non-employee Directors for the right to receive cash compensation, once vested, equal to the fair market value of the Companys Class A Units, subject to any maximum payment value the Compensation Committee may set. Once vested, the grants will be paid on the first to occur of (i) termination of service without cause, (ii) a change of control, or (iii) the third anniversary of the grant date. The 2026 and 2025 grants are subject to an aggregate maximum payment value of $3.0 million and $2.6 million, respectively. The Company added an additional director in fiscal 2026. Grants awarded subsequent to fiscal 2025 will vest 100% on the first anniversary of the grant date or upon the grantees death (if before). Once vested, awards will be paid as noted above. In the event a grantee terminates his or her services as a director, unvested awards will be forfeited. In the event a grantees services terminate for cause, both vested and unvested awards will be forfeited. The table below summarizes activity related to the Phantom Plan as of April 30, 2026: Phantom Units Outstanding, July 31, 2025 (1) 89,103 Granted (2) 63,240 Outstanding, April 30, 2026 152,343 _____________ (1) July 2025 grants vested September 25, 2025. (2 …

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H. Fair value measurements Derivative financial instruments The following table presents Ferrellgas financial assets and financial liabilities that are measured at fair value on a recurring basis for each of the fair value hierarchy levels, including both current and noncurrent portions, as of April 30, 2026 and July 31, 2025: Asset (Liability) Quoted Prices in Active Markets for Identical Significant Other Assets and Liabilities Observable Inputs Unobservable Inputs (Level 1) (Level 2) (Level 3) Total April 30, 2026: Assets: Derivative financial instruments: Commodity derivatives $ $ 14,425 $ $ 14,425 Liabilities: Derivative financial instruments: Commodity derivatives $ $ (5,360) $ $ (5,360) July 31, 2025: Assets: Derivative financial instruments: Commodity derivatives $ $ 3,570 $ $ 3,570 Liabilities: Derivative financial instruments: Commodity derivatives $ $ (3,654) $ $ (3,654) Methodology The fair values of Ferrellgas non-exchange traded commodity derivative contracts are based upon indicative price quotations available through brokers, industry price publications or recent market transactions and related market indicators. There were no transfers between Levels 1, 2 or 3 during the nine months ended April 30, 2026 and the fiscal year ended July 31, 2025. Other financial instruments The carrying amounts of other financial instruments included in current assets and current liabilities (except for current maturities of long-term debt) approximate their fair values because …

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"B. Summary of significant accounting policies (1) Accounting estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from these estimates. Significant estimates impacting the condensed consolidated financial statements include accruals that have been established for contingent liabilities, pending claims and legal actions arising in the normal course of business, useful lives of property, plant and equipment, residual values of tanks, capitalization of customer tank installation costs, amortization methods of intangible assets, valuation methods used to value sales returns and allowances, allowance for expected credit losses, fair value of reporting unit, recoverability of long-lived assets, assumptions used to value business combinations, determination of incremental borrowing rate used to measure right-of-use assets (ROU assets) and lease liability, and fair values of derivative contracts. (2) Goodwill, net Goodwill is tested for impairment annually during the second fiscal quarter, or more frequently if events or changes in circumstances indicate that it is more likely than …

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J. Transactions with related parties Ferrellgas has no employees and is managed and controlled by its general partner. Pursuant to Ferrellgas partnership agreements, the general partner is entitled to reimbursement for all direct and indirect expenses incurred or payments it makes on behalf of Ferrellgas and all other necessary or appropriate expenses allocable to Ferrellgas or otherwise reasonably incurred by its general partner in connection with operating Ferrellgas business. These costs primarily include compensation and benefits paid to employees of the general partner who perform services on Ferrellgas behalf and are reported in the condensed consolidated statements of operations as follows: For the three months ended April 30, For the nine months ended April 30, 2026 2025 2026 2025 Operating expense $ 76,786 $ 75,078 $ 233,529 $ 237,704 General and administrative expense $ 10,955 $ 11,593 $ 33,984 $ 35,064 See additional discussions about transactions with related parties in Note F Equity (Deficit). …

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G. Revenue from contracts with customers Disaggregation of revenue Ferrellgas disaggregates revenues based upon the type of customer and on the type of revenue. The following table presents retail propane revenues, wholesale propane revenues and other revenues. Retail revenues result from sales to end use customers, wholesale revenues result from sales to or through resellers and all other revenues include sales of appliances and other materials, other fees charged to customers and equipment rental charges. For the three months ended April 30, For the nine months ended April 30, 2026 2025 2026 2025 Retail - Sales to End Users $ 369,773 $ 400,006 $ 1,025,412 $ 1,078,412 Wholesale - Sales to Resellers 128,109 129,667 397,676 409,381 Other Gas Sales 7,628 3,873 13,459 19,578 Other 19,049 27,301 84,615 87,337 Propane and related equipment revenues $ 524,559 $ 560,847 $ 1,521,162 $ 1,594,708 Contract assets and liabilities Ferrellgas performance obligations are generally limited to the delivery of propane for its retail and wholesale contracts. Ferrellgas performance obligations with respect to sales of appliances and other materials and other revenues are limited to the delivery of the agreed upon good or service. Ferrellgas does not have material performance obligations that are delivered over time, thus all of its revenue is recognized at the time the goods, including propane, are delivered or installed. Ferrellgas offers even pay and other billing programs that can create cust …

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N. Segment reporting Ferrellgas has one reportable segment, Propane operations and related equipment sales. The Propane operations and related equipment sales segment includes the distribution and sale of propane and related equipment throughout the United States. Sales from propane distribution are generated principally from transporting propane purchased from third parties to propane distribution locations and then to tanks on customers premises or to portable propane tanks delivered to nationwide and local retailers. The Companys Chief Operating Decision Maker (CODM) is the President and Chief Executive Officer. The CODM assesses segment performance and decides how to allocate resources based on Net earnings, a GAAP measure. The measure of segment assets is reported on the condensed consolidated balance sheets as Total assets and the measure of capital expenditures is reported on the condensed consolidated statements of cash flows as Capital expenditures in the investing activities section. Ferrellgas Partners Reconciliation of segment results to consolidated net earnings Three months ended April 30, Nine months ended April 30, 2026 2025 2026 2025 Revenues $ 524,559 $ 560,847 $ 1,521,162 $ 1,594,708 Less: Cost of sales 233,123 271,618 684,177 762,791 Operating expense - personnel, vehicle, plant and other: Personnel (1) 87,554 86,841 269,375 270,977 Vehicle (1) 32,149 28,499 87,483 82,501 Plant and other (1) 68,734 44,052 151,661 124,828 Operating expense - equipment lease …

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"B. Summary of significant accounting policies (1) Accounting estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from these estimates. Significant estimates impacting the condensed consolidated financial statements include accruals that have been established for contingent liabilities, pending claims and legal actions arising in the normal course of business, useful lives of property, plant and equipment, residual values of tanks, capitalization of customer tank installation costs, amortization methods of intangible assets, valuation methods used to value sales returns and allowances, allowance for expected credit losses, fair value of reporting unit, recoverability of long-lived assets, assumptions used to value business combinations, determination of incremental borrowing rate used to measure right-of-use assets (ROU assets) and lease liability, and fair values of derivative contracts. (2) Goodwill, net Goodwill is tested for impairment annually during the second fiscal quarter, or more frequently if events or changes in circumstances indicate that it is more likely than …

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O . Subsequent events Ferrellgas has evaluated events and transactions occurring from the balance sheet date through the date Ferrellgas condensed consolidated financial statements were issued and concluded there were no events or transactions occurring during this period that required recognition or disclosure in its condensed consolidated financial statements. …

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