Ferrellgas Partners LPwas formed on April 19, 1994. The Company is a publicly traded limited partnership, owning an approximate 99% limited partner interest in Ferrellgas, L.P. (operating partnership). Ferrellgas Partners and the operating partnership, collectively referred to as 'Ferrellgas,' are both Delaware limited partnerships and are governed by their respective partnership agreements. Ferrellgas Partners was formed to acquire and hold a limited partner interest in the operating partnership. The Company is a holding entity that conducts no operations and has two subsidiaries, Ferrellgas Partners Finance Corp. and the operating partnership. Ferrellgas Partners owns a 100% equity interest in Ferrellgas Partners Finance Corp., whose only business activity is to act as the co-issuer and co-obligor of any debt issued by Ferrellgas Partners. The operating partnership is the only operating subsidiary of Ferrellgas Partners. Ferrellgas is a single reportable operating segment. The operating partnership is engaged mainly in the distribution of propane and related equipment and supplies in the United States. The propane distribution market is seasonal because propane is used mainly for heating in residential and commercial buildings. The operating partnership serves approximately one million residential, industrial/commercial, portable tank exchange, agricultural, wholesale and other customers in all 50 states, the District of Columbia, and Puerto Rico. The Company competes with other companies engaged in the propane distribution business. Competition within the propane distribution industry stems from two types of participants: the larger, multi state marketers, including farmers' cooperatives, and the smaller, local independent marketers, including rural electric cooperatives. With respect to the transportation of propane by truck, the Company is subject to regulations promulgated under the Federal Motor Carrier Safety Act.
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