FERRELLGAS PARTNERS, L.P. Announces Sale of Bridger Energy, LLC
January 17 2018 - 9:00AM
Ferrellgas Partners, L.P. (NYSE:FGP) (“Ferrellgas” or the
“Company”) announced the sale of Bridger Energy, LLC, a subsidiary
of Bridger Logistics, which is a subsidiary of Ferrellgas, L.P. The
sale was to an undisclosed buyer and terms of the transaction were
not announced.
“This transaction is a clear example of Ferrellgas’ commitment
to debt reduction,” said James E. Ferrell, Interim Chief Executive
Officer and President. “The sale significantly reduces our interest
expense, improves our credit metrics, and lessens the Company’s
reliance on its credit facility as we move forward with growth
efforts. In addition, today’s announcement lowers the risk profile
of our business while only minimally impacting EBITDA.”
With the sale, the Company will exit Bridger Energy’s oil
purchase and sale activity, and as a result will be able to realize
a near-term reduction in letters of credit issued to support
Bridger Energy from its current credit facility of approximately
$80 million. On an annualized basis, the interest expense savings
associated with the reduction in issued letters of credit and
surety bonding of the business will be approximately $4.5
million.
Said Ferrell, “As we work toward the renewal of our working
capital facilities, this sale reduces the amount of credit support
we will need from those renewed facilities with a more than
adequate level of liquidity available to us to run our business.
Strategically, we will continue to execute on objectives that raise
cash and reduce expenses, particularly initiatives that are not
weather dependent. We have excellent momentum, our employees remain
focused on providing excellent service to our customers, and we
continue to see solid progress towards our goals.”
About Ferrellgas Ferrellgas Partners,
L.P., through its operating partnership, Ferrellgas, L.P., and
subsidiaries, serves propane customers in all 50 states,
the District of Columbia, and Puerto Rico, and provides
midstream services to major energy companies in the United
States. Ferrellgas employees indirectly own 22.8 million
common units of the partnership, through an employee stock
ownership plan. Ferrellgas Partners, L.P. filed a Form
10-K with the Securities and Exchange
Commission on September 28, 2017. Investors can request a
hard copy of this filing free of charge and obtain more information
about the partnership online at www.ferrellgas.com.
Forward Looking Statements Statements in
this release concerning expectations for the future are
forward-looking statements. A variety of known and unknown risks,
uncertainties and other factors could cause results, performance
and expectations to differ materially from anticipated results,
performance and expectations. These risks, uncertainties and other
factors include those discussed in the Form 10-K of Ferrellgas
Partners, L.P., Ferrellgas Partners Finance
Corp., Ferrellgas, L.P., and Ferrellgas Finance
Corp. for the fiscal year ended July 31, 2017, the
Form 10-Q of these entities for the fiscal quarter ended
October 31, 2017, and in other documents filed from time to
time by these entities with the Securities and Exchange
Commission.
Contacts Jim Saladin, Media Relations
– jimsaladin@ferrellgas.com, 913-661-1833 Bill Ruisinger,
Investor Relations – billruisinger@ferrellgas.com,
816-792-7914
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