Ferrellgas Partners (FGP) Posts Wider-Than-Expected Q4 Loss

Zacks

Ferrellgas Partners LP FGP reported fourth-quarter fiscal 2018 adjusted loss of 63 cents per unit, wider than the Zacks Consensus Estimate loss of 41 cents.

Total Revenues

In the reported quarter, Ferrellgas Partners’ total revenues were $347.5 million, which missed the Zacks Consensus Estimate of $365 million by 4.8%. Also, the top line declined 19.8% from $433.4 million in the prior-year quarter.

Revenues declined primarily due to lower sales in the Midstream operations segment, which slumped 84% from the prior-year quarter’s tally. The partnership exited from the midstream and the Global Sourcing businesses in the fiscal fourth quarter, which caused the decline.

Ferrellgas Partners, L.P. Price, Consensus and EPS Surprise

Sales in the Propane and other gas liquids segment improved 10.2% year over year. Other segment reported slightly higher sales compared with year-ago quarter’s levels.

In fiscal 2018, the partnership delivered revenues worth $2,073.1 million, up from $1,930.2 million in fiscal 2017.

Highlights of the Release

In the reported quarter, nearly 148.1 million gallons of propane were sold, up from 147.9 million gallons in the prior-year quarter. Customer base increased 2.2% year over year. The partnership’s current Blue Rhino tank exchange sales locations exceeded 53,000, up more than 10% from the beginning of fiscal 2018 levels.

Operating expenses amounted $121 million, up 10.5% from $109.5 million in the prior-year quarter.

General and administrative expenses amounted to $14.7 million, up from $13.0 million in the prior-year quarter.

Interest expenses were $44.6 million, up from $40.4 million in the prior-year quarter.

The partnership continues to expand operations through acquisitions. It completed five accretive propane acquisitions during fiscal 2018.

Financial Position

Ferrellgas Partners’ cash and cash equivalents were $119.3 million as of Jul 31, 2018 compared with $5.8 million as of Jul 31, 2017.

Long-term debt was $2,078.6 million as of Jul 31, 2018 compared with $1,995.8 million as of Jul 31, 2017.

Zacks Rank

Ferrellgas Partners currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

Sunoco LP SUN reported second-quarter 2018 adjusted earnings of 90 cents per unit, which beat the Zacks Consensus Estimate of 56 cents by 60.71%.

Targa Resources, Inc TRGP reported second-quarter 2018 earnings of 35 cents per share, which beat the Zacks Consensus Estimate of a loss of 5 cents.

Calumet Specialty Products Partners, L.P. CLMT reported second-quarter 2018 earnings of 8 cents per unit, which surpassed the Zacks Consensus Estimate of 6 cents by 33.33%.

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