Ferrellgas Enhances Propane Assets - Analyst Blog
October 21 2011 - 1:15PM
Zacks
Ferrellgas Partners L.P. (FGP) continued with
its acquisition-driven expansion strategy. The partnership has now
acquired Federal Petroleum Company, an independent propane
retailer, operating in Weslasco and Brownsville, Texas. This is the
second acquisition for the company this fiscal year, starting
August 1, 2011.
This acquisition will give the partnership access to
Brownsville, a gateway for the Mexican markets. It will also be
able to cater to the strong residential demand in that area. The
long-term strategy of the partnership is to acquire new assets and
integrate the same with its existing business. The Ferrellgas
history of acquisition speaks for itself. To date, in its 70 years
of operation, the partnership has successfully completed 230
acquisitions.
The first purchase by the company this fiscal year was Lakeport,
California-based retailer Economy Propane Inc. This acquisition
provided the partnership access to the lucrative markets of
California.
Ferrellgas reported higher-than-expected losses during the
recently concluded fourth quarter and fiscal year 2011. The results
of the partnership reflected the impacts of the seasonal retail
propane distribution business, and the historical nature of the
partnership’s performance during the first and fourth quarters of
the fiscal year.
The Zacks Consensus Estimates for first-quarter fiscal 2012,
fiscal year 2012 and fiscal year 2013 are (30) cents per unit, 66
cents per unit and 88 cents per unit, respectively.
Overland Park, Kansas-based Ferrellgas Partners L.P. is a
leading distributor of propane and equipment in the U.S. The
partnership provides propane services to residential, industrial,
Portable Tank Exchange, agricultural and wholesale customers. The
major competitors of the partnership are AmeriGas Partners
L.P. (APU), Energy Transfer Partners L.P.
(ETP) and Suburban Propane Partners L.P.
(SPH).
AMERIGAS PARTNR (APU): Free Stock Analysis Report
ENERGY TRAN PTR (ETP): Free Stock Analysis Report
FERRELLGAS -LP (FGP): Free Stock Analysis Report
SUBURB PROPANE (SPH): Free Stock Analysis Report
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