LP Gas, April 2013

NEWS BRIEFS INDUSTRY NEWS NUMBERS California leader again in propane sales though declines persist nationally in 2011 U S gallon sales of odorized propane declined for the fourth straight year according to the latest report from the American Petroleum Institute API In the 24th annual report released in February Latest API report shows U S propane gallon sales falling for 4th year in row and titled 2011 Sales of Natural Gas Liquids and Liquefied Refinery Gases retail sales fell 3 percent from 2010 to about 89 billion gallons The recent downtrend started after 2007 when sales measured across residential commercial agricultural internal combustion and industrial sectors of the industry totaled about 103 billion gallons Propane sales in 2000 had reached 12 billion gallons The data reflects a host of well documented challenges plaguing the propane industry including warmer than average winters energy competition customer conservation and advances in energy efficient appliances Among other highlights in the report that tracks regional and national trends California sold the most odorized propane 576 million gallons for the fourth straight year in 2011 The state has recorded similar sales figures over the last two years of available data down only 61000 gallons from 2010 The obvious size of California gives it an edge in propane sales but other factors are also at play in the state according to Ferrellgas announces two acquisitions Ferrellgas purchased New York based Mr Bar B Q and the propane operations of Western Petroleum in Roosevelt Utah the nations second largest propane marketer announced Steve Wambold Ferrellgas president and CEO admits Mr Bar B Q doesnt represent the typical Ferrellgas acquisition but he says the tools accessories and parts providers products fit nicely into Ferrellgas portfolio As we marry the Mr Bar B Q brand with Blue Rhino consumers will be able to exchange for our tanks at the front of the store and then find our propane powered products and barbecue accessories elsewhere in that same store Wambold explains in a company press release Ferrellgas says the acquisition of Western Petroleums propane unit strengthens the retailers presence in portions of the country it has long targeted for growth Western Petroleum has a solid residential and customer base in northeast Utah northwest Colorado and Wyoming The acquisition also allows Ferrellgas to add its first retail location in Utah Terms of the acquisitions Ferrellgas fourth and fifth in its fiscal year were not disclosed Continued on page 10 PROPANE MASTER LIMITED PARTNERSHIP COMPARISON Fiscal Recent Total Units Year Quarter Price Current Current Est Tax Debt Outstanding Company End End 3 13 13 Distribution Yield Deferral Capital millions AmeriGas APU Sept Dec 4320 320 74 75 61 928 Ferrellgas FGP July Jan 2032 200 98 90 99 790 NGL Energy Partners NGL March Dec 2477 180 73 90 47 456 Suburban Propane SPH Sept Dec 4235 341 81 80 56 571 Average 81 66 LAST TWELVE MONTHS Gross Gross Gross Profit Gross Profit Retail Gallons Sold Percent Gross Profit Company Revenue Profit Margin Per employee millions Change Per gallon AmeriGas 2837 1195 42 138010 1147 37 096 Ferrellgas 1602 624 39 179862 609 5 073 NGL Energy Partners 1002 147 15 165716 122 111 017 Suburban Propane 996 515 52 124213 363 27 142 Average 37 151950 42 082 4IBSPO VJ o BOBMZTU 8FMMT BSHP 4FDVSJUJFT Source FactSet partnership reports and Wells Fargo Securities LLC t PMMBS öHVSFT JO NJMMJPOT FYDFQU GPS QFS VOJU EBUB t 3FWFOVF BOE HSPTT QSPöU EBUB BSF CBTFE PO UPUBM QSPQBOF HBMMPOT TPME t NQMPZFF EBUB JT CBTFE PO NPTU SFDFOUMZ DPNQMFUFE öTDBM ZFBS t T SFWFOVF BOE HSPTT QSPöU EBUB JODMVEF UIF TBMF PG EJTUJMMBUFT BOE PUIFS OBUVSBM HBT MJRVJET 8 LPGas April 2013 www LPGasmagazine com