Ferrellgas Partners LP
) continues to expand its operations through strategic
acquisitions. The partnership announced its third acquisition in
fiscal year 2014, taking the tally to approximately 245 to date.
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On this occasion, Ferrellgas Partners acquired Country Boys Gas
for an undisclosed amount. Commerce, GA-based Country Boys Gas is
an independent propane company.
In fiscal year 2014, Ferrellgas Partners acquired Manitowoc and
Sheboygan, WI-based Motor Propane Service in Dec 2013 and
KS-based KanGas Corporation in Nov 2013.
Ferrellgas Partners continues with its acquisition plan of buying
assets having the similar line of operations. As Country Boys Gas
has significant presence in the state of Georgia and provides
reliable services to its customers, the transaction is expected
to be accretive in terms of adding new customers and experiencing
It is evident from past records that Ferrellgas Partners is
strengthening its domestic operations, particularly in the
Midwest, Southwest, Southeast, Northeast and Central regions of
the U.S., to tap the growing demand. In fiscal 2013, the amount
invested by the partnership to purchase new assets was up around
180% from the previous fiscal.
We remind investors that acquisitions in the past have helped
Ferrellgas Partners to expand its core offerings and contributed
significantly to its financial performance. In 2004, the
partnership acquired Blue Rhino Corporation ("Blue Rhino"). The
partnership's Blue Rhino operations reported double-digit volume
gains on the back of colder weather in the second quarter of
Ferrellgas Partners has a stable liquidity position, including
$18.3 million of cash and cash equivalents and available fund of
$500 million under its secured credit facility. A favorable
financial position supports Ferrellgas Partners systematic
inorganic growth strategy.
Ferrellgas Partners currently has a Zacks Rank #3 (Hold). Other
better-ranked stocks in this industry include
Murphy USA Inc.
Valero Energy Corporation
Marathon Petroleum Corporation
). While Murphy USA and Valero Energy hold a Zacks Rank #1
(Strong Buy), Marathon Petroleum carries a Zacks Rank #2