Businessweek

Ferrellgas Partners, L.P. engages in the distribution and sale of propane, and related equipment and supplies primarily in the United States. Ferrellgas, Inc. serves as the general partner of the company. The company serves approximately 1 million residential, industrial/commercial, portable tank exchange, agricultural, wholesale, and other customers in all 50 states, the District of Columbia, and Puerto Rico. As of July 31, 2012, the company distributed product to its propane customers from 924 propane distribution locations. Distribution of Propane and Related Equipment and Supplies The company’s propane distribution business consists principally of transporting propane purchased from third parties to its propane distribution locations and then to tanks on customers’ premises or to portable propane tanks delivered to nationwide and local retailers. Its portable tank exchange operations, nationally branded under the name Blue Rhino, are conducted through a network of independent and partnership-owned distribution outlets. The company’s market areas for its residential and agricultural customers are generally rural, and its market areas for its industrial/commercial and portable tank exchange customers are generally urban. The company’s retail deliveries of propane are typically transported from its retail propane distribution locations to its customers by its fleet of bulk delivery trucks, which are generally fitted with a 3,000 gallon tank. It also delivers propane to its industrial/commercial and portable tank exchange customers using its fleet of portable tank and portable tank exchange delivery trucks, truck tractors, and portable tank exchange delivery trailers. In the residential and industrial/commercial markets, propane is primarily used for space heating, water heating, cooking and other propane fueled appliances. In the portable tank exchange market, propane is used primarily for outdoor cooking using gas grills. In the agricultural market, propane is primarily used for crop drying, space heating, irrigation and weed control. In addition, propane is used for various industrial applications, including as an engine fuel which is burned in internal combustion engines that power vehicles and forklifts, and as a heating or energy source in manufacturing and drying processes. In addition, the company leases tanks to some of its independent distributors involved with its delivery of propane by portable tank exchange operations. Its owned and independent distributors provide portable tank exchange customers with a national delivery presence. Some of its propane distribution locations also conduct the retail sale of propane appliances and related parts and fittings, as well as other retail propane related services and consumer products. The company also sells gas grills, patio heaters, fireplace and garden accessories, mosquito traps and other outdoor products through Blue Rhino Global Sourcing, Inc. Other Activities The company’s other activities primarily include wholesale marketing of propane appliances; the sale of refined fuels; and common carrier services. Business Strategy The company’s business strategy is to expand its operations through disciplined acquisitions and internal growth; and capitalize on its national presence and economies of scale. Governmental Regulation - Environmental and Safety Matters With respect to the transportation of propane by truck, the company is subject to regulations promulgated under the Federal Motor Carrier Safety Act. Trademarks and Service Marks The company markets its goods and services under various trademarks and trade names, which it owns or has a right to use. Those trademarks and trade names include marks or pending marks before the United States Patent and Trademark Office, such as Ferrellgas, Ferrell North America, and Ferrellmeter. The company’s general partner has an option to purchase for a nominal value the trade names Ferrellgas and Ferrell North America and the trademark Ferrellmeter. Included in the registered and pending trademarks and service marks are the designations Blue Rhino, Blue Rhino & Design, Rhino Design, Grill Gas & Design, A Better Way, Spark Something Fun, America’s Choice for Grill Gas, RhinoTUFF, Tri-Safe, Drop, Swap and Go, Rhino Power, Uniflame, UniGrill, Patriot, Grill Aficionado, Skeetervac, Fine Tune, Vac & Tac, Wavedrawer, It’s Your Backyard. Enjoy It More With Skeetervac, Less Biting Insects. More Backyard Fun, DuraClay, Endless Summer, and Endless Summer Comfort. In addition, the company has patents issued for a Method for Reconditioning a Propane Gas Tank and an Overflow Protection Valve Assembly, which expire in 2017 and 2018, respectively, as well as various other patents and patent applications pending. Significant Events In April 2013, Ferrellgas Partners LP announced the acquisition of the propane operation of Western Petroleum of Roosevelt, Utah. History Ferrellgas Partners, L.P. was founded in 1939.