##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


FORM 10-K


|   |  |                                                                                             
|-- |  | --------------------------------------------------------------------------------------------
|þ  |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934    
|   |  | For the fiscal year ended July 31, 2005                                                     
|or
|  
|o  |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|  
|   |  | For the transition period
    from           to                                             

Commission file numbers: 001-11331, 333-06693, 000-50182 and
000-50183


Ferrellgas Partners, L.P.


Ferrellgas Partners Finance Corp.


Ferrellgas, L.P.


Ferrellgas Finance Corp.


(Exact name of registrants as specified in their charters)


|                                                                                                                    |  |                                                                                             
|------------------------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------
|Delaware
    Delaware
    Delaware
    Delaware(States or other jurisdictions of incorporation or
    organization) |  | 43-1698480
    43-1742520
    43-1698481
    14-1866671(I.R.S. Employer Identification Nos.)

7500 College Boulevard, Suite 1000, Overland Park,
Kansas 66210


(Address of principal executive
office)        (Zip
Code)


Registrants telephone number, including area code:
(913) 661-1500


Securities registered pursuant to Section 12(b) of the
Act:


|                                          |  |                                          
|----------------------------------------- |  | -----------------------------------------
|Title of Each Class                       |  | Name of Each Exchange on Which Registered
|                                          |  |                                          
|Common Units of Ferrellgas Partners, L.P. |  | New York Stock Exchange                  

Securities registered pursuant to section 12(g) of the
Act:


Limited Partner Interests of Ferrellgas, L.P.


Common Stock of Ferrellgas Finance Corp.


Title of class


þ o


þ




|                                                                                      |  |     |  |   |  |    |  |  
|------------------------------------------------------------------------------------- |  | --- |  | - |  | -- |  | -
|Ferrellgas Partners, L.P.:                                                            |  | Yes |  | þ |  | No |  | o
|Ferrellgas Partners Finance Corp., Ferrellgas, L.P. and
    Ferrellgas Finance Corp.: |  | Yes |  | o |  | No |  | þ





|                                  |  |            |  |             
|--------------------------------- |  | ---------- |  | ------------
|Ferrellgas Partners, L.P.         |  | 60,154,054 |  | Common Units
|Ferrellgas Partners Finance Corp. |  | 1,000      |  | Common Stock
|Ferrellgas, L.P.                  |  | n/a        |  | n/a         
|Ferrellgas Finance Corp.          |  | 1,000      |  | Common Stock

Documents Incorporated by Reference: None












---










FERRELLGAS PARTNERS, L.P.


FERRELLGAS PARTNERS FINANCE CORP.


FERRELLGAS, L.P.


FERRELLGAS FINANCE CORP.


2005 FORM 10-K ANNUAL REPORT


TABLE OF CONTENTS


|                                                                                    |  |                                                                                                                                     |  |      |    | 
|----------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------- |  | ---- | -- | 
|                                                                                    |  |                                                                                                                                     |  | Page |   
|                                                                                    |  |                                                                                                                                     |  |      |   
|PART I                                                                             
|                                                                                   
|ITEM 1.                                                                             |  | BUSINESS                                                                                                                            |  |      | 1  | 
|                                                                                   
|ITEM 2.                                                                             |  | PROPERTIES                                                                                                                          |  |      | 34 | 
|                                                                                   
|ITEM 3.                                                                             |  | LEGAL PROCEEDINGS                                                                                                                   |  |      | 35 | 
|                                                                                   
|ITEM 4.                                                                             |  | SUBMISSION OF MATTERS TO A VOTE OF SECURITY
    HOLDERS                                                                             |  |      | 35 | 
|PART II                                                                            
|                                                                                   
|ITEM 5.                                                                             |  | MARKET FOR REGISTRANTS COMMON EQUITY,
    RELATED UNITHOLDER AND STOCKHOLDER MATTERS AND ISSUER PURCHASES
    OF EQUITY SECURITIES |  |      | 35 | 
|                                                                                   
|ITEM 6.                                                                             |  | SELECTED FINANCIAL DATA                                                                                                             |  |      | 37 | 
|                                                                                   
|ITEM 7.                                                                             |  | MANAGEMENTS DISCUSSION AND ANALYSIS
    OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS                                           |  |      | 38 | 
|                                                                                   
|ITEM 7A.                                                                            |  | QUANTITATIVE AND QUALITATIVE DISCLOSURES
    ABOUT MARKET RISK                                                                      |  |      | 57 | 
|                                                                                   
|ITEM 8.                                                                             |  | FINANCIAL STATEMENTS AND SUPPLEMENTARY
    DATA                                                                                     |  |      | 58 | 
|                                                                                   
|ITEM 9.                                                                             |  | CHANGES IN AND DISAGREEMENTS WITH
    ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE                                            |  |      | 59 | 
|                                                                                   
|ITEM 9A.                                                                            |  | CONTROLS AND PROCEDURES                                                                                                             |  |      | 59 | 
|                                                                                   
|ITEM 9B.                                                                            |  | OTHER INFORMATION                                                                                                                   |  |      | 65 | 
|PART III                                                                           
|                                                                                   
|ITEM 10.                                                                            |  | DIRECTORS AND EXECUTIVE OFFICERS OF THE
    REGISTRANTS                                                                             |  |      | 65 | 
|                                                                                   
|ITEM 11.                                                                            |  | EXECUTIVE COMPENSATION                                                                                                              |  |      | 69 | 
|                                                                                   
|ITEM 12.                                                                            |  | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
    OWNERS AND MANAGEMENT AND RELATED UNITHOLDER MATTERS                                   |  |      | 73 | 
|                                                                                   
|ITEM 13.                                                                            |  | CERTAIN RELATIONSHIPS AND RELATED
    TRANSACTIONS                                                                                  |  |      | 75 | 
|                                                                                   
|ITEM 14.                                                                            |  | PRINCIPAL ACCOUNTANT FEES AND SERVICES                                                                                              |  |      | 76 | 
|PART IV                                                                            
|                                                                                   
|ITEM 15.                                                                            |  | EXHIBITS AND FINANCIAL STATEMENT
    SCHEDULES                                                                                      |  |      | 77 | 
|List of Subsidiaries                                                               
|Consent of Deloitte & Touche, LLP                                                  
|Consent of Deloitte & Touche, LLP                                                  
|Consent of Deloitte & Touche, LLP                                                  
|Consent of Deloitte & Touche, LLP                                                  
|Certification of Ferrellgas Partners, L.P. pursuant to Rule 13a-14a/15d-14a        
|Certification of Ferrellgas Partners Finance Corp. pursuant to Rule 13a-14a/15d-14a
|Certification of Ferrellgas, L.P. pursuant to Rule 13a-14a/15d-14a                 
|Certification of Ferrellgas Finance Corp. pursuant to Rule 13a-14a/15d-14a         
|Certification of Ferrellgas Partners, L.P. pursuant to Section 1350                
|Certification of Ferrellgas Partners Finance Corp. pursuant to Section 1350        
|Certification of Ferrellgas, L.P. pursuant to Section 1350                         
|Certification of Ferrellgas Finance Corp. pursuant to Section 1350                 







---



##### Table of Contents






PART I







|        |          
|------- | ---------
|ITEM 1. | BUSINESS.







| |   |                                                                                                                                                                                                                                                                                                                                                                                                                
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | us, we, our, or
    ours, refer to Ferrellgas Partners, L.P. together
    with its consolidated subsidiaries, including Ferrellgas
    Partners Finance Corp., Ferrellgas, L.P. and Ferrellgas Finance
    Corp., except when used in connection with common
    units or senior units, in which case these
    terms refer to Ferrellgas Partners, L.P. without its
    consolidated subsidiaries;
|
| |  | Ferrellgas Partners refers to Ferrellgas Partners,
    L.P. itself, without its consolidated subsidiaries;                                                                                                                                                                                                                                                                                                   
|
| |  | the operating partnership refers to Ferrellgas,
    L.P.; together with its consolidated subsidiaries, including
    Ferrellgas Finance Corp.                                                                                                                                                                                                                                                                
|
| |  | our general partner refers to Ferrellgas, Inc.;                                                                                                                                                                                                                                                                                                                                                              
|
| |  | Ferrell Companies refers to Ferrell Companies, Inc.,
    the sole shareholder of our general partner;                                                                                                                                                                                                                                                                                                        
|
| |  | unitholders refers to holders of common units of
    Ferrellgas Partners;                                                                                                                                                                                                                                                                                                                                    
|
| |  | customers refers to customers other than our
    wholesale customers or our other bulk propane distributors or
    marketers;                                                                                                                                                                                                                                                                                
|
| |  | propane sales volumes refers to the volume of
    propane sold to our customers and excludes any volumes of bulk
    propane sold to our wholesale customers and other bulk propane
    distributors or marketers; and                                                                                                                                                                                       
|
| |  | Notes refers to the notes of the consolidated
    financial statements of Ferrellgas Partners or the operating
    partnership, as applicable.                                                                                                                                                                                                                                                               









1



---



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General










|                  |  |               |     | 
|----------------- |  | ------------- | --- | 
|                  |  | Propane Sales |    
|Fiscal Year Ended |  | Volumes       |    
|                  |  |               |    
|                  |  | (In millions) |    
|July 31, 2005     |  |               | 898 | 
|July 31, 2004     |  |               | 874 | 
|July 31, 2003     |  |               | 899 | 





2



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Our History






|                |  |               |               |                   |          |  |     | 
|--------------- |  | ------------- | ------------- | ----------------- | -------- |  | --- | 
|                |  |               |               | Estimated Propane |         
|                |  |               |               | Sales Volumes     |         
|Company         |  | Date Acquired |               |                   | Acquired | 
|                |  |               |               |                   |          | 
|                |  |               |               | (In millions)     |         
|Thermogas       |  |               | December 1999 |                   |          |  | 270 | 
|Skelgas Propane |  |               | May 1996      |                   |          |  | 93  | 

Business Strategy






| |   |                                                                                        
| | - | ---------------------------------------------------------------------------------------
| |  | achieve operating efficiencies through the utilization of our
    technology platforms;
|
| |  | capitalize on our national presence and economies of scale;                            
|
| |  | expand our operations through disciplined acquisitions and
    internal growth; and    
|
| |  | align employee interest with our investors through significant
    employee ownership. 



| |                                                                                          
| | -----------------------------------------------------------------------------------------
| | Achieving operating efficiencies through the utilization
    of our technology platforms.







3



---



##### Table of Contents







| |                                                                  
| | -----------------------------------------------------------------
| | Capitalizing on our national presence and economies of
    scale.





| |   |                                     
| | - | ------------------------------------
| |  | product procurement;                
|
| |  | transportation;                     
|
| |  | fleet purchases;                    
|
| |  | propane customer administration; and
|
| |  | general administration.             







| |                                                                                
| | -------------------------------------------------------------------------------
| | Employing a disciplined acquisition strategy and achieving
    internal growth.





4



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| |                                                
| | -----------------------------------------------
| | Aligning employee interests with our investors.



Distribution of Propane and Related Equipment and Supplies






| |   |                                                                                                                                                                              
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | our efficiency in delivering propane to customers;                                                                                                                           
|
| |  | our employee training and safety programs;                                                                                                                                   
|
| |  | our enhanced customer service, facilitated by our new technology
    platform and our nationwide 24 hour/seven days a week
    retail customer call support capabilities; and
|
| |  | our national distributor network for our commercial and portable
    tank exchange customers.                                                                                







| |   |                        
| | - | -----------------------
| |  | residential;           
|
| |  | industrial/commercial; 
|
| |  | portable tank exchange;
|
| |  | agricultural; and      
|
| |  | other.                 



5



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| |                                  
| | ---------------------------------
| | Effect of Weather and Seasonality









| |                           
| | --------------------------
| | Risk Management Activities







6



---



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| |                                                                       
| | ----------------------------------------------------------------------
| | Risk management activities  supply procurement and
    transportation









| |                                   
| | ----------------------------------
| | Risk management trading activities



Industry




7



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Competition






Other Activities






| |   |                                              
| | - | ---------------------------------------------
| |  | common carrier services;                     
|
| |  | wholesale marketing of propane appliances;   
|
| |  | wholesale propane marketing and distribution;
|
| |  | the sale of refined fuels; and               
|
| |  | the sale of carbon dioxide.                  

8



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Employees






|                                              |       |  |       |       | 
|--------------------------------------------- | ----- |  | ----- | ----- | 
|Propane distribution locations                |       |  | 2,994 |      
|Risk management, transportation and wholesale |       |  | 256   |      
|Centralized corporate functions               |       |  | 454   |      
|                                              |       |  |      
|                                              | Total |  |       | 3,704 | 
|                                              |       |  |      



Governmental Regulation  Environmental and Safety
Matters










Trademarks and Service Marks






9



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tm tm tm tm


Businesses of Other Subsidiaries












10



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Risk factors




| |                                              
| | ---------------------------------------------
| | Risks Inherent in the Distribution of Propane



| |                                                                                                                                                             
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Weather conditions may reduce the demand for propane; our
    financial condition is vulnerable to warm winters and poor
    weather in the grilling season.







| |                                                                                                                                                       
| | ------------------------------------------------------------------------------------------------------------------------------------------------------
| | The impact of hurricanes Katrina and Rita could have a
    material adverse effect on our business, financial condition and
    results of operations.





| |                                                                                                                                                 
| | ------------------------------------------------------------------------------------------------------------------------------------------------
| | The propane distribution business is highly competitive,
    which may negatively affect our sales volumes and/or our results
    of operations.



11



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| |                                                                                   
| | ----------------------------------------------------------------------------------
| | The propane distribution industry is a mature one, which may
    limit our growth.





| |                                                                                                                                             
| | --------------------------------------------------------------------------------------------------------------------------------------------
| | The propane distribution business faces competition from
    other energy sources, which may reduce the existing demand for
    our propane.





| |                                                                                                                                                                                         
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Energy efficiency and technology advances may affect demand
    for propane; increases in propane prices may cause our
    residential customers to increase their conservation efforts.





| |                                                                                                                   
| | ------------------------------------------------------------------------------------------------------------------
| | Current economic and political conditions may harm the energy
    business disproportionately to other industries.





| |   |                                                                                                                     
| | - | --------------------------------------------------------------------------------------------------------------------
| |  | impair our ability to effectively market or acquire
    propane; or                                                 
|
| |  | impair our ability to raise equity or debt capital for
    acquisitions, capital expenditures or ongoing operations.



| |                                                                                                      
| | -----------------------------------------------------------------------------------------------------
| | Fuel prices are currently at high levels and rising fuel
    prices may adversely affect our profits.



12



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| |                                                                                                                                                                                   
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The revenues received from our portable tank exchange are
    concentrated with a limited number of retailers under
    non-exclusive arrangements that may be terminated at will.





| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If the distributors that our customers rely upon for the
    delivery of propane by portable tank exchange do not perform up
    to the expectations of such customers, if we encounter
    difficulties in managing the operations of these distributors or
    if we or these distributors are not able to manage growth
    effectively, our relationships with our customers may be
    adversely impacted and our delivery of propane by portable tank
    exchange may suffer.





| |                                                                                                                                                            
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------
| | If we are unable to manage the impact of overfill prevention
    device valve guidelines, our delivery of propane by portable
    tank exchange may suffer.



13



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| |                                                                                                                         
| | ------------------------------------------------------------------------------------------------------------------------
| | We depend on particular management information systems to
    effectively manage all aspects of our delivery of propane.





| |                                                                                                                                                                                                                                                                                    
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Potential retail partners may not be able to obtain necessary
    permits or may be substantially delayed in obtaining necessary
    permits, which may adversely impact our ability to increase our
    delivery of propane by portable tank exchange to new retail
    locations.





| |                               
| | ------------------------------
| | Risks Inherent to Our Business



| |                                                                                                                                              
| | ---------------------------------------------------------------------------------------------------------------------------------------------
| | Our substantial debt and other financial obligations could
    impair our financial condition and our ability to fulfill our
    obligations.





| |   |                                                                                                                                                                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | we had total indebtedness of approximately $971.3 million;                                                                                                                                                                                                                             
|
| |  | Ferrellgas Partners had partners capital of approximately
    $333.7 million;                                                                                                                                                                                                         
|
| |  | the operating partnership had availability under its bank credit
    facility of approximately $257.2 million; and                                                                                                                                                                     
|
| |  | we had aggregate future minimum rental commitments under
    non-cancelable operating leases of approximately
    $127.5 million; provided, however, if we elect to purchase
    the underlying assets at the end of the lease terms, such
    aggregate buyout would be $29.3 million.





| |   |                      
| | - | ---------------------
| |  | $58.0 million  2007;
|
| |  | $90.0 million  2008;
|
| |  | $52.0 million  2009;

14



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| |   |                          
| | - | -------------------------
| |  | $73.0 million  2010;    
|
| |  | $82.0 million  2011; and
|
| |  | $320.0 million  2014.   









| |   |                                                                                                                                                                                                                                                                                                           
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | make it more difficult for us to satisfy our obligations with
    respect to our securities;                                                                                                                                                                                                              
|
| |  | impair our ability to obtain additional financing in the future
    for working capital, capital expenditures, acquisitions, general
    corporate purposes or other purposes;                                                                                                                            
|
| |  | result in higher interest expense in the event of increases in
    interest rates since some of our debt is, and will continue to
    be, at variable rates of interest;                                                                                                                                  
|
| |  | impair our operating capacity and cash flows if we fail to
    comply with financial and restrictive covenants in our debt
    agreements and an event of default occurs as a result of that
    failure that is not cured or waived;                                                                     
|
| |  | require us to dedicate a substantial portion of our cash flow to
    payments on our indebtedness and other financial obligations,
    thereby reducing the availability of our cash flow to fund
    distributions, working capital, capital expenditures and other
    general partnership requirements;
|
| |  | limit our flexibility in planning for, or reacting to, changes
    in our business and the industry in which we operate; and                                                                                                                                                                              
|
| |  | place us at a competitive disadvantage compared to our
    competitors that have proportionately less debt.                                                                                                                                                                                               



| |                                                                                                                                                                          
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Ferrellgas Partners or the operating partnership may be
    unable to refinance their indebtedness or pay that indebtedness
    if it becomes due earlier than scheduled.





| |                                                                                                                                                 
| | ------------------------------------------------------------------------------------------------------------------------------------------------
| | Restrictive covenants in the agreements governing our
    indebtedness and other financial obligations may reduce our
    operating flexibility.



15



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| |   |                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------
| |  | incur additional indebtedness;                                                                                                                
|
| |  | make distributions to our unitholders;                                                                                                        
|
| |  | purchase or redeem our outstanding equity interests or
    subordinated debt;                                                                 
|
| |  | make specified investments;                                                                                                                   
|
| |  | create or incur liens;                                                                                                                        
|
| |  | sell assets;                                                                                                                                  
|
| |  | engage in specified transactions with affiliates;                                                                                             
|
| |  | restrict the ability of our subsidiaries to make specified
    payments, loans, guarantees and transfers of assets or interests
    in assets;
|
| |  | engage in sale-leaseback transactions;                                                                                                        
|
| |  | effect a merger or consolidation with or into other companies or
    a sale of all or substantially all of our properties or
    assets; and  
|
| |  | engage in other lines of business.                                                                                                            





| |   |                                                                                                
| | - | -----------------------------------------------------------------------------------------------
| |  | to obtain future financings;                                                                   
|
| |  | to make needed capital expenditures;                                                           
|
| |  | to withstand a future downturn in our business or the economy in
    general; or               
|
| |  | to conduct operations or otherwise take advantage of business
    opportunities that may arise.







| |                                                                                                                                                                                                                    
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our results of operations and our ability to make
    distributions or pay interest or principal on debt securities
    could be negatively impacted by price and inventory risk and
    management of these risks.



16



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17



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| |                                                                                                                              
| | -----------------------------------------------------------------------------------------------------------------------------
| | We are dependent on our principal suppliers, which increases
    the risks from an interruption in supply and transportation.





| |                                                                                                            
| | -----------------------------------------------------------------------------------------------------------
| | The availability of cash from our credit facilities may be
    impacted by many factors beyond our control.





| |   |                                                                                           
| | - | ------------------------------------------------------------------------------------------
| |  | a significant increase in the cost of propane;                                            
|
| |  | a significant delay in the collections of accounts receivable;                            
|
| |  | increased volatility in energy commodity prices related to risk
    management activities;
|
| |  | increased liquidity requirements imposed by insurance providers;                          
|
| |  | a significant downgrade in our credit rating;                                             
|
| |  | decreased trade credit; or                                                                
|
| |  | a significant acquisition.                                                                





| |                                                                                                                                                                                                                                                              
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We may not be successful in making acquisitions and any
    acquisitions we make may not result in our anticipated results;
    in either case, potentially limiting our growth, limiting our
    ability to compete and impairing our results of operations.



18



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| |   |                                                                                                                                                                                                                          
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | we will be able to acquire any of these candidates on
    economically acceptable terms;                                                                                                                                 
|
| |  | we will be able to successfully integrate acquired operations
    with any expected cost savings;                                                                                                                        
|
| |  | any acquisitions made will not be dilutive to our earnings and
    distributions;                                                                                                                                        
|
| |  | any additional equity we issue as consideration for an
    acquisition will not be dilutive to our unitholders; or                                                                                                       
|
| |  | any additional debt we incur to finance an acquisition will not
    affect the operating partnerships ability to make
    distributions to Ferrellgas Partners or service the operating
    partnerships existing debt.



| |                                                                                             
| | --------------------------------------------------------------------------------------------
| | We are subject to operating and litigation risks, which may
    not be covered by insurance.





| |                                                           
| | ----------------------------------------------------------
| | Risks Inherent to an Investment in Our Debt
    Securities



| |                                                                                                                                                                                                                                                                                                                                                                                                                 
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Ferrellgas Partners and the operating partnership are
    required to distribute all of their available cash to their
    equity holders and Ferrellgas Partners and the operating
    partnership are not required to accumulate cash for the purpose
    of meeting their future obligations to holders of their debt
    securities, which may limit the cash available to service those
    debt securities.





| |                                                                                                                                                                              
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Debt securities of Ferrellgas Partners will be structurally
    subordinated to all indebtedness and other liabilities of the
    operating partnership and its subsidiaries.





| |   |                                                                                                                                      
| | - | -------------------------------------------------------------------------------------------------------------------------------------
| |  | the lenders under the operating partnerships indebtedness;                                                                          
|
| |  | the claims of lessors under the operating partnerships
    operating leases;                                                        
|
| |  | the claims of the lenders and their affiliates under the
    operating partnerships accounts receivable securitization
    facility;

19



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| |   |                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------
| |  | debt securities, including any subordinated debt securities,
    issued by the operating partnership; and
|
| |  | all other possible future creditors of the operating partnership
    and its subsidiaries.               





| |                                                                                                                                                                                                   
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | All payments on any subordinated debt securities that we may
    issue will be subordinated to the payments of any amounts due on
    any senior indebtedness that we may have issued or incurred.





| |                                                                                                                                                                                                   
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Debt securities of Ferrellgas Partners are expected to be
    non-recourse to the operating partnership, which will limit
    remedies of the holders of Ferrellgas Partners debt
    securities.





| |                                                                                                                                                                                                            
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Ferrellgas Partners or the operating partnership may be
    unable to repurchase debt securities upon a change of control
    and it may be difficult to determine if a change of control has
    occurred.



20



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| |                                                                                                                                       
| | --------------------------------------------------------------------------------------------------------------------------------------
| | There may be no active trading market for our debt
    securities, which may limit a holders ability to sell our
    debt securities.





| |   |                                                                                        
| | - | ---------------------------------------------------------------------------------------
| |  | a liquid market for the debt securities will develop;                                  
|
| |  | a debt holder will be able to sell its debt securities; or                             
|
| |  | a debt holder will receive any specific price upon any sale of
    its debt securities.





| |                                                                   
| | ------------------------------------------------------------------
| | Risks Inherent to an Investment in Ferrellgas
    Partners Equity



| |                                                                                                                   
| | ------------------------------------------------------------------------------------------------------------------
| | Ferrellgas Partners may sell additional limited partner
    interests, diluting existing interests of unitholders.





| |                                                                                                             
| | ------------------------------------------------------------------------------------------------------------
| | Cash distributions are not guaranteed and may fluctuate with
    our performance and other external factors.



21



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| |   |                                                                                         
| | - | ----------------------------------------------------------------------------------------
| |  | cash flow generated by operations;                                                      
|
| |  | weather in our areas of operation;                                                      
|
| |  | borrowing capacity under our credit facilities;                                         
|
| |  | principal and interest payments made on our debt;                                       
|
| |  | the costs of acquisitions, including related debt service
    payments;                 
|
| |  | restrictions contained in debt instruments;                                             
|
| |  | issuances of debt and equity securities;                                                
|
| |  | fluctuations in working capital;                                                        
|
| |  | capital expenditures;                                                                   
|
| |  | adjustments in reserves made by our general partner in its
    discretion;              
|
| |  | prevailing economic conditions; and                                                     
|
| |  | financial, business and other factors, a number of which will be
    beyond our control.





| |                                                                                                                                                                                                                                                                                                                               
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our general partner has broad discretion to determine the
    amount of available cash for distribution to holders
    of our equity securities through the establishment and
    maintenance of cash reserves, thereby potentially lessening and
    limiting the amount of available cash eligible for
    distribution.





| |   |                                                                                                                                                                                                                                                              
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | to comply with the terms of any of our agreements or
    obligations, including the establishment of reserves to fund the
    payment of interest and principal in the future of any debt
    securities of Ferrellgas Partners or the operating partnership;
|
| |  | to provide for level distributions of cash notwithstanding the
    seasonality of our business; and                                                                                                                                                          
|
| |  | to provide for future capital expenditures and other payments
    deemed by our general partner to be necessary or advisable.                                                                                                                                



22



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| |                                                                                                                                                                      
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The debt agreements of Ferrellgas Partners and the operating
    partnership may limit their ability to make distributions to
    holders of their equity securities.





| |   |                                                                                                                                                                                                                                                                                                                                    
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | making any distributions to unitholders if an event of default
    exists or would exist when such distribution is made;                                                                                                                                                                                                           
|
| |  | if its consolidated fixed charge coverage ratio as defined in
    the indenture is greater than 1.75 to 1.00, distributing amounts
    in excess of 100% of available cash for the immediately
    preceding fiscal quarter; or                                                                                                    
|
| |  | if its consolidated fixed charge coverage ratio as defined in
    the indenture is less than or equal to 1.75 to 1.00,
    distributing amounts in excess of $25.0 million less any
    restricted payments made for the prior sixteen fiscal quarters
    plus the aggregate cash contributions made to us during that
    period.





| |                                                                                                               
| | --------------------------------------------------------------------------------------------------------------
| | The distribution priority to our common units owned by the
    public terminates no later than April 30, 2010.







| |                                                                                                                                                                                                            
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Persons owning 20% or more of Ferrellgas Partners
    common units cannot vote. This limitation does not apply to
    common units owned by Ferrell Companies, our general partner and
    its affiliates.





| |   |                                                                                                                   
| | - | ------------------------------------------------------------------------------------------------------------------
| |  | discourage a person or group from attempting to remove our
    general partner or otherwise change management; and
|
| |  | reduce the price at which our common units will trade under
    various circumstances.                            

23



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| |                                                                                           
| | ------------------------------------------------------------------------------------------
| | Risks Arising from Our Partnership Structure and
    Relationship with Our General Partner



| |                                                                                                                                                                                                                                                                                          
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Ferrellgas Partners is a holding entity and has no material
    operations or assets. Accordingly, Ferrellgas Partners is
    dependent on distributions from the operating partnership to
    service its obligations. These distributions are not guaranteed
    and may be restricted.







| |   |                                                                      
| | - | ---------------------------------------------------------------------
| |  | incur additional indebtedness;                                       
|
| |  | engage in transactions with affiliates;                              
|
| |  | create or incur liens;                                               
|
| |  | sell assets;                                                         
|
| |  | make restricted payments, loans and investments;                     
|
| |  | enter into business combinations and asset sale
    transactions; and
|
| |  | engage in other lines of business.                                   



| |                                                                                                                     
| | --------------------------------------------------------------------------------------------------------------------
| | The ownership of our general partner could change if Ferrell
    Companies defaults on its outstanding indebtedness.



24



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| |                                                                                                                                                                                                     
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Unitholders have limits on their voting rights; our general
    partner manages and operates us, thereby generally precluding
    the participation of our unitholders in operational
    decisions.







| |   |                                                                                                                                                                                                   
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the vote of the holders of at least
    662/3%
    of the outstanding units entitled to vote thereon, which
    includes the common units owned by our general partner and its
    affiliates; and
|
| |  | upon the election of a successor general partner by the vote of
    the holders of not less than a majority of the outstanding
    common units entitled to vote.                                 





| |                                                                                                                       
| | ----------------------------------------------------------------------------------------------------------------------
| | Our general partner has a limited call right with respect to
    the limited partner interests of Ferrellgas Partners.





| |                                                                                                                                 
| | --------------------------------------------------------------------------------------------------------------------------------
| | Unitholders may not have limited liability in specified
    circumstances and may be liable for the return of
    distributions.





| |   |                                                                                                                                  
| | - | ---------------------------------------------------------------------------------------------------------------------------------
| |  | remove or replace our general partner;                                                                                           
|
| |  | make specified amendments to our partnership agreements; or                                                                      
|
| |  | take other action pursuant to our partnership agreements that
    constitutes participation in the control of our
    business,



25



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##### Table of Contents







| |                                                                              
| | -----------------------------------------------------------------------------
| | Our general partners liability to us and our
    unitholders may be limited.





| |   |                                                                                                                                                                                                                                                                                       
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the general partner does not breach any duty to us or our
    unitholders by borrowing funds or approving any borrowing; our
    general partner is protected even if the purpose or effect of
    the borrowing is to increase incentive distributions to our
    general partner;   
|
| |  | our general partner does not breach any duty to us or our
    unitholders by taking any actions consistent with the standards
    of reasonable discretion outlined in the definitions of
    available cash and cash from operations contained in our
    partnership agreements; and
|
| |  | our general partner does not breach any standard of care or duty
    by resolving conflicts of interest unless our general partner
    acts in bad faith.                                                                                                                             





| |                                                                       
| | ----------------------------------------------------------------------
| | Our general partner and its affiliates may have conflicts
    with us.







| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | decisions of our general partner with respect to the amount and
    timing of our cash expenditures, borrowings, acquisitions,
    issuances of additional securities and changes in reserves in
    any quarter may affect the amount of incentive distributions we
    are obligated to pay our general partner;                                                                                                                        
|
| |  | borrowings do not constitute a breach of any duty owed by our
    general partner to our unitholders even if these borrowings have
    the purpose or effect of directly or indirectly enabling us to
    make distributions to the holder of our incentive distribution
    rights, currently our general partner, or to hasten the
    expiration of the deferral period with respect to the common
    units held by Ferrell Companies;

26



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##### Table of Contents





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | we do not have any employees and rely solely on employees of our
    general partner and its affiliates;                                                                                                                                                                                                                                                                                                                                                               
|
| |  | under the terms of our partnership agreements, we must reimburse
    our general partner and its affiliates for costs incurred in
    managing and operating us, including costs incurred in rendering
    corporate staff and support services to us;                                                                                                                                                                                                                 
|
| |  | our general partner is not restricted from causing us to pay it
    or its affiliates for any services rendered on terms that are
    fair and reasonable to us or causing us to enter into additional
    contractual arrangements with any of such entities;                                                                                                                                                                                                         
|
| |  | neither our partnership agreements nor any of the other
    agreements, contracts and arrangements between us, on the one
    hand, and our general partner and its affiliates, on the other,
    are or will be the result of arms-length negotiations;                                                                                                                                                                                                               
|
| |  | whenever possible, our general partner limits our liability
    under contractual arrangements to all or a portion of our
    assets, with the other party thereto having no recourse against
    our general partner or its assets;                                                                                                                                                                                                                                   
|
| |  | our partnership agreements permit our general partner to make
    these limitations even if we could have obtained more favorable
    terms if our general partner had not limited its liability;                                                                                                                                                                                                                                                                      
|
| |  | any agreements between us and our general partner or its
    affiliates will not grant to our unitholders, separate and apart
    from us, the right to enforce the obligations of our general
    partner or such affiliates in favor of us; therefore, our
    general partner will be primarily responsible for enforcing
    those obligations;                                                                                                                    
|
| |  | our general partner may exercise its right to call for and
    purchase common units as provided in the partnership agreement
    of Ferrellgas Partners or assign that right to one of its
    affiliates or to us;                                                                                                                                                                                                                                                   
|
| |  | our partnership agreements provide that it will not constitute a
    breach of our general partners fiduciary duties to us for
    its affiliates to engage in activities of the type conducted by
    us, other than retail propane sales to end users in the
    continental United States in the manner engaged in by our
    general partner immediately prior to our initial public
    offering, even if these activities are in direct competition
    with us;
|
| |  | our general partner and its affiliates have no obligation to
    present business opportunities to us;                                                                                                                                                                                                                                                                                                                                                                 
|
| |  | our general partner selects the attorneys, accountants and
    others who perform services for us. These persons may also
    perform services for our general partner and its affiliates. Our
    general partner is authorized to retain separate counsel for us
    or our unitholders, depending on the nature of the conflict that
    arises; and                                                                                                                
|
| |  | Mr. Ferrell is the President and Chief Executive Officer of
    our general partner and the Chairman of its Board of Directors.
    Mr. Ferrell also owns other companies with whom we conduct
    our ordinary business operations. Mr. Ferrells
    ownership of these entities may conflict with his duties as an
    officer and director of our general partner, including our
    relationship and conduct of business with any of
    Mr. Ferrells companies. 





| |                                                                                                                                                                                                                                  
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Ferrell Companies may transfer the ownership of our general
    partner which could cause a change of our management and affect
    the decisions made by our general partner regarding resolutions
    of conflicts of interest.



27



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| |                                                                                       
| | --------------------------------------------------------------------------------------
| | Our general partner may voluntarily withdraw or sell its
    general partner interest.





| |                                                         
| | --------------------------------------------------------
| | Our general partner can protect itself against dilution.





| |          
| | ---------
| | Tax Risks



| |                                                                                                                                                           
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------
| | The IRS could treat us as a corporation for tax purposes,
    which would substantially reduce the cash available for
    distribution to our unitholders.









| |                                                                                                                                                                                                                                                       
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | A successful IRS contest of the federal income tax positions
    we take may reduce the market value of our common units and the
    costs of any contest will be borne by us and therefore
    indirectly by our unitholders and our general partner.





| |   |                                                                                                                     
| | - | --------------------------------------------------------------------------------------------------------------------
| |  | our classification as a partnership for federal income tax
    purposes; or                                         
|
| |  | whether our propane operations generate qualifying
    income under Section 7704 of the Internal Revenue
    Code.



28



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##### Table of Contents







| |                                                                                                                                      
| | -------------------------------------------------------------------------------------------------------------------------------------
| | Unitholders may be required to pay taxes on income from us
    even if unitholders do not receive any cash distributions from
    us.





| |                                                                                                                                                                                           
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The ratio of taxable income to cash distributions could be
    higher or lower than our estimates, which could result in a
    material reduction of the market value of our common units.





| |                                                
| | -----------------------------------------------
| | There are limits on the deductibility of losses





| |                                                                                              
| | ---------------------------------------------------------------------------------------------
| | Tax gain or loss on the disposition of our common units could
    be different than expected.





| |                                                                                                                                                                                                                     
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Tax-exempt entities, regulated investment companies, and
    foreign persons face unique tax issues from owning common units
    that may result in additional tax liability or reporting
    requirements for them.



29



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| |                                                                                   
| | ----------------------------------------------------------------------------------
| | Our tax shelter registration could increase the risk of a
    potential IRS audit.





| |                                                                                                                                           
| | ------------------------------------------------------------------------------------------------------------------------------------------
| | Reporting of partnership tax information is complicated and
    subject to audits; we cannot guarantee conformity to IRS
    requirements.





| |                                                                                             
| | --------------------------------------------------------------------------------------------
| | Unitholders may lose tax benefits as a result of
    nonconforming depreciation conventions.





| |                                                                                                                                                                                           
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | As a result of investing in our common units, a unitholder
    will likely be subject to state and local taxes and return
    filing requirements in jurisdictions where it does not live.



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| |                                                                                                                                                                                                                                                                                           
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | States may subject partnerships to entity-level taxation in
    the future; thereby decreasing the amount of cash available to
    us for distributions and potentially causing a decrease in our
    distribution levels, including a decrease in the minimum
    quarterly distribution.





| |                                                                                             
| | --------------------------------------------------------------------------------------------
| | Unitholders may have negative tax consequences if we default
    on our debt or sell assets.





| |                                                                                                                                                                     
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Recently enacted tax legislation may make investments in
    corporations more attractive than they used to be when compared
    to investments in our common units.



Conflicts of Interest








| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | decisions of our general partner with respect to the amount and
    timing of our cash expenditures, borrowings, acquisitions,
    issuances of additional securities and changes in reserves in
    any quarter may affect the amount of incentive distributions we
    are obligated to pay our general partner;                                                                                                                        
|
| |  | borrowings do not constitute a breach of any duty owed by our
    general partner to our unitholders even if these borrowings have
    the purpose or effect of directly or indirectly enabling us to
    make distributions to the holder of our incentive distribution
    rights, currently our general partner, or to hasten the
    expiration of the deferral period with respect to the common
    units held by Ferrell Companies;

31



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | we do not have any employees and rely solely on employees of our
    general partner and its affiliates;                                                                                                                                                                                                                                                                                                                                                               
|
| |  | under the terms of our partnership agreements, we must reimburse
    our general partner and its affiliates for costs incurred in
    managing and operating us, including costs incurred in rendering
    corporate staff and support services to us;                                                                                                                                                                                                                 
|
| |  | our general partner is not restricted from causing us to pay it
    or its affiliates for any services rendered on terms that are
    fair and reasonable to us or causing us to enter into additional
    contractual arrangements with any of such entities;                                                                                                                                                                                                         
|
| |  | neither our partnership agreements nor any of the other
    agreements, contracts and arrangements between us, on the one
    hand, and our general partner and its affiliates, on the other,
    are or will be the result of arms-length negotiations;                                                                                                                                                                                                               
|
| |  | whenever possible, our general partner limits our liability
    under contractual arrangements to all or a portion of our
    assets, with the other party thereto having no recourse against
    our general partner or its assets;                                                                                                                                                                                                                                   
|
| |  | our partnership agreements permit our general partner to make
    these limitations even if we could have obtained more favorable
    terms if our general partner had not limited its liability;                                                                                                                                                                                                                                                                      
|
| |  | any agreements between us and our general partner or its
    affiliates will not grant to our unitholders, separate and apart
    from us, the right to enforce the obligations of our general
    partner or such affiliates in favor of us; therefore, our
    general partner will be primarily responsible for enforcing
    those obligations;                                                                                                                    
|
| |  | our general partner may exercise its right to call for and
    purchase common units as provided in the partnership agreement
    of Ferrellgas Partners or assign that right to one of its
    affiliates or to us;                                                                                                                                                                                                                                                   
|
| |  | our partnership agreements provide that it will not constitute a
    breach of our general partners fiduciary duties to us for
    its affiliates to engage in activities of the type conducted by
    us, other than retail propane sales to end users in the
    continental United States in the manner engaged in by our
    general partner immediately prior to our initial public
    offering, even if these activities are in direct competition
    with us;
|
| |  | our general partner and its affiliates have no obligation to
    present business opportunities to us;                                                                                                                                                                                                                                                                                                                                                                 
|
| |  | our general partner selects the attorneys, accountants and
    others who perform services for us. These persons may also
    perform services for our general partner and its affiliates. Our
    general partner is authorized to retain separate counsel for us
    or our unitholders, depending on the nature of the conflict that
    arises; and                                                                                                                
|
| |  | Mr. Ferrell is the President and Chief Executive Officer of
    our general partner and the Chairman of its Board of Directors.
    Mr. Ferrell also owns other companies with whom we conduct
    our ordinary business operations. Mr. Ferrells
    ownership of these entities may conflict with his duties as an
    officer and director of our general partner, including our
    relationship and conduct of business with any of
    Mr. Ferrells companies. 

Fiduciary Responsibilities




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33



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##### Table of Contents








|        |            
|------- | -----------
|ITEM 2. | PROPERTIES.



|                                         |  |       |       |  |        |  |     |       |  |  |       | 
|---------------------------------------- |  | ----- | ----- |  | ------ |  | --- | ----- |  |  | ----- | 
|                                         |  | Owned |       |  | Leased |  |     | Total | 
|                                         |  |       |       |  |        |  |     |       | 
|Truck tractors                           |  |       | 110   |  |        |  | 107 |       |  |  | 217   | 
|Propane transport trailers               |  |       | 330   |  |        |  |    |       |  |  | 330   | 
|Portable tank delivery trucks            |  |       | 279   |  |        |  | 310 |       |  |  | 589   | 
|Portable tank exchange delivery trailers |  |       | 95    |  |        |  | 83  |       |  |  | 178   | 
|Bulk propane delivery trucks             |  |       | 1,122 |  |        |  | 979 |       |  |  | 2,101 | 
|Pickup and service trucks                |  |       | 1,000 |  |        |  | 520 |       |  |  | 1,520 | 
|Railroad tank cars                       |  |       |      |  |        |  | 119 |       |  |  | 119   | 

















34



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##### Table of Contents










|        |                   
|------- | ------------------
|ITEM 3. | LEGAL PROCEEDINGS.








|        |                                                         
|------- | --------------------------------------------------------
|ITEM 4. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY
    HOLDERS.






PART II







|        |                                                                                                                                     
|------- | ------------------------------------------------------------------------------------------------------------------------------------
|ITEM 5. | MARKET FOR REGISTRANTS COMMON EQUITY, RELATED
    UNITHOLDER AND STOCKHOLDER MATTERS AND ISSUER PURCHASES OF
    EQUITY SECURITIES.

Common Units of Ferrellgas Partners




|               |  |              |       |  |               |   |       |          |  |   |      | 
|-------------- |  | ------------ | ----- |  | ------------- | - | ----- | -------- |  | - | ---- | 
|               |  | Common Unit  |       |  |              
|               |  | Price Ranges |       |  | Distributions |  
|               |  |              |       |  | Declared      |  
|2004           |  | High         |       |  | Low           |   |       | per Unit | 
|               |  |              |       |  |               |   |       |          | 
|First Quarter  |  | $            | 23.57 |  |               | $ | 21.41 |          |  | $ | 0.50 | 
|Second Quarter |  |              | 25.36 |  |               |   | 23.21 |          |  |   | 0.50 | 
|Third Quarter  |  |              | 25.80 |  |               |   | 21.88 |          |  |   | 0.50 | 
|Fourth Quarter |  |              | 22.74 |  |               |   | 20.00 |          |  |   | 0.50 | 

|               |  |   |       |  |  |   |       |  |  |   |      | 
|-------------- |  | - | ----- |  |  | - | ----- |  |  | - | ---- | 
|2005           |  |   |       |  |  |  
|               |  |   |       |  |  |  
|First Quarter  |  | $ | 22.14 |  |  | $ | 19.99 |  |  | $ | 0.50 | 
|Second Quarter |  |   | 21.32 |  |  |   | 19.40 |  |  |   | 0.50 | 
|Third Quarter  |  |   | 21.97 |  |  |   | 20.29 |  |  |   | 0.50 | 
|Fourth Quarter |  |   | 22.10 |  |  |   | 20.51 |  |  |   | 0.50 | 



35



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Recent Sales of Unregistered Securities




Ferrellgas Partners Tax Matters




Common Equity Of Other Registrants








Equity Compensation Plan Information




36



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##### Table of Contents








|        |                         
|------- | ------------------------
|ITEM 6. | SELECTED FINANCIAL DATA.



|                                                                                                                                                 |  |                                      |           |   |      |   |           |      |  |   |           |   |  |      |         |  |  |   |           | 
|------------------------------------------------------------------------------------------------------------------------------------------------ |  | ------------------------------------ | --------- | - | ---- | - | --------- | ---- |  | - | --------- | - |  | ---- | ------- |  |  | - | --------- | 
|                                                                                                                                                 |  | Ferrellgas Partners, L.P.            |          
|                                                                                                                                                 |  |                                      |          
|                                                                                                                                                 |  | Year Ended July 31,                  |          
|                                                                                                                                                 |  |                                      |          
|                                                                                                                                                 |  | 2005                                 |           |   | 2004 |   |           | 2003 |  |   | 2002      |   |  | 2001 |        
|                                                                                                                                                 |  |                                      |           |   |      |   |           |      |  |   |           |   |  |      |        
|                                                                                                                                                 |  | (In thousands, except per unit data) |          
|Income Statement Data:                                                                                                                           |  |                                      |           |   |      |   |           |      |  |   |           |   |  |      |         |  |  |   |           | 
|Total revenues                                                                                                                                   |  | $                                    | 1,754,114 |   |      | $ | 1,308,386 |      |  | $ | 1,165,678 |   |  | $    | 991,430 |  |  | $ | 1,395,135 | 
|Interest expense                                                                                                                                 |  |                                      | 91,518    |   |      |   | 74,467    |      |  |   | 63,664    |   |  |      | 59,608  |  |  |   | 61,544    | 
|Earnings (loss) before discontinued operations and cumulative
    effect of change in accounting principle                                       |  |                                      | (15,375   | ) |      |   | 20,501    |      |  |   | 52,970    |   |  |      | 54,542  |  |  |   | 55,815    | 
|Basic and diluted earnings (loss) per common unit before
    discontinued operations and cumulative effect of change in
    accounting principle |  | $                                    | (0.41     | ) |      | $ | 0.30      |      |  | $ | 1.15      |   |  | $    | 1.19    |  |  | $ | 1.17      | 
|Cash distributions declared per common unit                                                                                                      |  | $                                    | 2.00      |   |      | $ | 2.00      |      |  | $ | 2.00      |   |  | $    | 2.00    |  |  | $ | 2.00      | 
|Balance Sheet Data at end of period:                                                                                                             |  |                                      |           |   |      |   |           |      |  |   |           |   |  |      |         |  |  |   |           | 
|Working capital (deficit)                                                                                                                        |  | $                                    | 38,885    |   |      | $ | 46,137    |      |  | $ | (3,862    | ) |  | $    | 9,436   |  |  | $ | 22,062    | 
|Total assets                                                                                                                                     |  |                                      | 1,508,973 |   |      |   | 1,578,175 |      |  |   | 1,061,396 |   |  |      | 885,128 |  |  |   | 896,159   | 
|Long-term debt                                                                                                                                   |  |                                      | 948,977   |   |      |   | 1,153,652 |      |  |   | 888,226   |   |  |      | 703,858 |  |  |   | 704,782   | 
|Partners capital                                                                                                                                |  |                                      | 333,678   |   |      |   | 202,099   |      |  |   | 2,919     |   |  |      | 21,161  |  |  |   | 37,987    | 
|Operating Data:                                                                                                                                  |  |                                      |           |   |      |   |           |      |  |   |           |   |  |      |         |  |  |   |           | 
|Propane sales volumes (in thousands of gallons)                                                                                                  |  |                                      | 897,606   |   |      |   | 873,711   |      |  |   | 898,622   |   |  |      | 831,592 |  |  |   | 956,718   | 
|Capital expenditures:                                                                                                                            |  |                                      |           |   |      |   |           |      |  |   |           |   |  |      |         |  |  |   |           | 
|Maintenance                                                                                                                                      |  | $                                    | 17,259    |   |      | $ | 20,422    |      |  | $ | 14,187    |   |  | $    | 9,576   |  |  | $ | 11,996    | 
|Growth                                                                                                                                           |  |                                      | 25,089    |   |      |   | 12,270    |      |  |   | 4,123     |   |  |      | 4,826   |  |  |   | 3,152     | 
|Technology initiative                                                                                                                            |  |                                      | 10,466    |   |      |   | 8,688     |      |  |   | 14,699    |   |  |      | 30,070  |  |  |   | 100       | 
|Tank lease buyout                                                                                                                                |  |                                      |          |   |      |   |          |      |  |   | 154,129   |   |  |      |        |  |  |   |          | 
|Acquisition                                                                                                                                      |  |                                      | 31,699    |   |      |   | 438,326   |      |  |   | 41,310    |   |  |      | 10,962  |  |  |   | 1,417     | 
|                                                                                                                                                 |  |                                      |           |   |      |   |           |      |  |   |           |   |  |      |        
|Total                                                                                                                                            |  | $                                    | 84,513    |   |      | $ | 479,706   |      |  | $ | 228,448   |   |  | $    | 55,434  |  |  | $ | 16,665    | 
|                                                                                                                                                 |  |                                      |           |   |      |   |           |      |  |   |           |   |  |      |        

|                                                                                                    |  |                                      |           |  |      |   |           |      |  |   |           |  |  |      |         |  |  |   |           | 
|--------------------------------------------------------------------------------------------------- |  | ------------------------------------ | --------- |  | ---- | - | --------- | ---- |  | - | --------- |  |  | ---- | ------- |  |  | - | --------- | 
|                                                                                                    |  |                                      |          
|                                                                                                    |  | Ferrellgas, L.P.                     |          
|                                                                                                    |  |                                      |          
|                                                                                                    |  | Year Ended July 31,                  |          
|                                                                                                    |  |                                      |          
|                                                                                                    |  | 2005                                 |           |  | 2004 |   |           | 2003 |  |   | 2002      |  |  | 2001 |        
|                                                                                                    |  |                                      |           |  |      |   |           |      |  |   |           |  |  |      |        
|                                                                                                    |  | (In thousands, except per unit data) |          
|Income Statement Data:                                                                              |  |                                      |           |  |      |   |           |      |  |   |           |  |  |      |         |  |  |   |           | 
|Total revenues                                                                                      |  | $                                    | 1,754,114 |  |      | $ | 1,308,386 |      |  | $ | 1,165,678 |  |  | $    | 991,430 |  |  | $ | 1,395,135 | 
|Interest expense                                                                                    |  |                                      | 67,430    |  |      |   | 54,242    |      |  |   | 45,317    |  |  |      | 43,972  |  |  |   | 47,686    | 
|Earnings before discontinued operations and cumulative effect of
    change in accounting principle |  |                                      | 9,128     |  |      |   | 41,410    |      |  |   | 79,598    |  |  |      | 70,887  |  |  |   | 73,695    | 
|Balance Sheet Data at end of period:                                                                |  |                                      |           |  |      |   |           |      |  |   |           |  |  |      |         |  |  |   |           | 
|Working capital                                                                                     |  | $                                    | 41,078    |  |      | $ | 48,593    |      |  | $ | 7,792     |  |  | $    | 9,099   |  |  | $ | 23,831    | 
|Total assets                                                                                        |  |                                      | 1,504,271 |  |      |   | 1,570,990 |      |  |   | 1,055,691 |  |  |      | 882,233 |  |  |   | 892,778   | 

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|                                                |  |                                      |         |  |      |   |         |      |  |   |         |  |  |      |         |  |  |   |         | 
|----------------------------------------------- |  | ------------------------------------ | ------- |  | ---- | - | ------- | ---- |  | - | ------- |  |  | ---- | ------- |  |  | - | ------- | 
|                                                |  |                                      |        
|                                                |  | Ferrellgas, L.P.                     |        
|                                                |  |                                      |        
|                                                |  | Year Ended July 31,                  |        
|                                                |  |                                      |        
|                                                |  | 2005                                 |         |  | 2004 |   |         | 2003 |  |   | 2002    |  |  | 2001 |        
|                                                |  |                                      |         |  |      |   |         |      |  |   |         |  |  |      |        
|                                                |  | (In thousands, except per unit data) |        
|Long-term debt                                  |  |                                      | 678,367 |  |      |   | 882,662 |      |  |   | 668,657 |  |  |      | 543,858 |  |  |   | 544,782 | 
|Partners capital                               |  |                                      | 608,987 |  |      |   | 475,567 |      |  |   | 231,815 |  |  |      | 182,272 |  |  |   | 198,771 | 
|Operating Data:                                 |  |                                      |         |  |      |   |         |      |  |   |         |  |  |      |         |  |  |   |         | 
|Propane sales volumes (in thousands of gallons) |  |                                      | 897,606 |  |      |   | 873,711 |      |  |   | 898,622 |  |  |      | 831,592 |  |  |   | 956,718 | 
|Capital expenditures:                           |  |                                      |         |  |      |   |         |      |  |   |         |  |  |      |         |  |  |   |         | 
|Maintenance                                     |  | $                                    | 17,259  |  |      | $ | 20,422  |      |  | $ | 14,187  |  |  | $    | 9,576   |  |  | $ | 11,996  | 
|Growth                                          |  |                                      | 25,089  |  |      |   | 12,270  |      |  |   | 4,123   |  |  |      | 4,826   |  |  |   | 3,152   | 
|Technology initiative                           |  |                                      | 10,466  |  |      |   | 8,688   |      |  |   | 14,699  |  |  |      | 30,070  |  |  |   | 100     | 
|Tank lease buyout                               |  |                                      |        |  |      |   |        |      |  |   | 154,129 |  |  |      |        |  |  |   |        | 
|Acquisition                                     |  |                                      | 32,430  |  |      |   | 438,326 |      |  |   | 41,310  |  |  |      | 10,962  |  |  |   | 1,417   | 
|                                                |  |                                      |         |  |      |   |         |      |  |   |         |  |  |      |        
|Total                                           |  | $                                    | 85,244  |  |      | $ | 479,706 |      |  | $ | 228,448 |  |  | $    | 55,434  |  |  | $ | 16,665  | 
|                                                |  |                                      |         |  |      |   |         |      |  |   |         |  |  |      |        





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | maintenance capital expenditures, which include capitalized
    expenditures for betterment and replacement of property, plant
    and equipment;                                                                                                                                                                                                                                                                                                                                                 
|
| |  | growth capital expenditures, which include expenditures for
    purchases of both bulk and portable propane tanks and other
    equipment to facilitate expansion of our customer base and
    operating capacity;                                                                                                                                                                                                                                                                                
|
| |  | technology initiative capital expenditures, which include
    expenditures for purchases of computer hardware and software and
    the development of new software;                                                                                                                                                                                                                                                                                                                               
|
| |  | tank lease buyout expenditures, which are related to the
    purchase of bulk propane tanks and related assets during fiscal
    2003 that we previously leased; these bulk propane tanks were
    originally leased in connection with the Thermogas acquisition,
    which we completed in fiscal 2000; and                                                                                                                                                                                     
|
| |  | acquisition capital expenditures, which include expenditures
    related to the acquisition of retail distribution propane
    operations; acquisition capital expenditures represent the total
    cost of acquisitions less working capital acquired; fiscal 2001
    capital expenditures do not include a $4.6 million
    adjustment made in the second fiscal quarter of fiscal 2001 to
    working capital related to a final valuation adjustment to
    record the Thermogas acquisition.












|        |                                                                                           
|------- | ------------------------------------------------------------------------------------------
|ITEM 7. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF OPERATIONS.



38



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | because Ferrellgas Partners issued $268.0 million in
    aggregate principal amount of
    83/4% senior
    secured notes due fiscal 2012 during fiscal 2004 and 2003, the
    two partnerships incur different amounts of interest expense on
    their outstanding indebtedness; see the statements of earnings
    in their respective consolidated financial statements and
    Notes I  Long-term debt  in the
    respective notes to their consolidated financial statements;
|
| |  | Ferrellgas Partners issued common units in several transactions
    during fiscal 2005, 2004 and 2003;                                                                                                                                                                                                                                                                                                                                                                                
|
| |  | during fiscal 2003, Ferrellgas Partners incurred
    $7.1 million in expenses related to the early
    extinguishment of its debt; and                                                                                                                                                                                                                                                                                                                                                
|
| |  | during fiscal 2005 and 2004, Ferrellgas Partners paid
    $0.9 million and $8.5 million, respectively, in cash
    to an unrelated third-party pursuant to a short-term,
    non-interest bearing note related to an acquisition made in
    fiscal 2003.                                                                                                                                                                                                                             

Forward-looking statements










| |   |                                                                                                                                                                                                                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | whether the operating partnership will have sufficient funds to
    meet its obligations, including its obligations under its debt
    securities, and to enable it to distribute to Ferrellgas
    Partners sufficient funds to permit Ferrellgas Partners to meet
    its obligations with respect to its existing debt and equity
    securities;
|
| |  | whether Ferrellgas Partners and the operating partnership will
    continue to meet all of the quarterly financial tests required
    by the agreements governing their indebtedness; and                                                                                                                                                           

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| |   |                                                                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the expectation that propane and other liquid sales, cost of
    product sold, gross profit, operating income and net earnings
    will increase in fiscal 2006.







Results of Operations




| |         
| | --------
| | Overview









40



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| |   |                                                                                        
| | - | ---------------------------------------------------------------------------------------
| |  | achieve operating efficiencies through the utilization of our
    technology platforms;
|
| |  | capitalize on our national presence and economies of scale;                            
|
| |  | expand our operations through disciplined acquisitions and
    internal growth; and    
|
| |  | align employee interest with our investors through significant
    employee ownership. 







| |   |                                                                                                                                                                                                                                                                                                                                                                    
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Earnings from discontinued operations increased
    $96.1 million primarily due to the gain recognized on the
    sale of those operations. See Note D 
    Discontinued operations  to our consolidated
    financial statements;                                                                                                                               
|
| |  | Gross profit increased $71.8 million primarily due to
    increased sales resulting from the contribution from the Blue
    Rhino transaction and other retail acquisitions completed in
    fiscal 2004. This increase was somewhat offset by losses
    recognized on risk management trading activities;                                                        
|
| |  | Operating costs, which include operating expense, depreciation
    and amortization expense, general and administrative expense,
    equipment lease expense, and loss in disposal of assets and
    other collectively increased $85.1 million primarily due to
    the impact from contribution from the Blue Rhino transaction
    completed in fiscal 2004; and
|
| |  | Interest expense increased $17.1 million primarily due to
    the issuance of additional debt in April 2004 which was
    primarily used to fund the contribution from the Blue Rhino
    transaction.                                                                                                                                                             











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Fiscal Year Ended July 31, 2005 vs. July 31,
2004


|                                    |  |                        |           |  |      |          |           |            |            |   |         |   |  |  |       |   
|----------------------------------- |  | ---------------------- | --------- |  | ---- | -------- | --------- | ---------- | ---------- | - | ------- | - |  |  | ----- | --
|                                    |  |                        |           |  |      | Increase |           |            | Percentage |  
|                                    |  | 2005                   |           |  | 2004 |          |           | (Decrease) |            |   | Change  |  
|                                    |  |                        |           |  |      |          |           |            |            |   |         |  
|                                    |  | (Amounts in thousands) |           |  |     
|Propane sales volumes               |  | $                      | 897,606   |  |      | $        | 873,711   |            |            | $ | 23,895  |   |  |  | 2.7   | % 
|Propane and other gas liquids sales |  |                        | 1,592,325 |  |      |          | 1,210,564 |            |            |   | 381,761 |   |  |  | 31.5  | % 
|Gross profit                        |  |                        | 613,816   |  |      |          | 541,982   |            |            |   | 71,834  |   |  |  | 13.3  | % 
|Operating income                    |  |                        | 75,788    |  |      |          | 93,402    |            |            |   | (17,614 | ) |  |  | (18.9 | )%
|Interest expense                    |  |                        | 91,518    |  |      |          | 74,467    |            |            |   | 17,051  |   |  |  | 22.9  | % 













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| |                                              
| | ---------------------------------------------
| | Interest expense of the operating partnership





| |                            
| | ---------------------------
| | Forward looking statements.





| |   |                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------
| |  | our assumption that fiscal 2006 average propane prices will be
    higher than those in fiscal 2005;
|
| |  | our assumption that heating degree days will return to normal in
    fiscal 2006; and               
|
| |  | our assumption that interest rates will remain relatively stable
    in fiscal 2006.                



Fiscal Year Ended July 31, 2004 vs. July 31,
2003


|                                    |  |                        |           |  |      |          |           |            |            |   |         |   |  |  |       |   
|----------------------------------- |  | ---------------------- | --------- |  | ---- | -------- | --------- | ---------- | ---------- | - | ------- | - |  |  | ----- | --
|                                    |  |                        |           |  |      | Increase |           |            | Percentage |  
|                                    |  | 2004                   |           |  | 2003 |          |           | (Decrease) |            |   | Change  |  
|                                    |  |                        |           |  |      |          |           |            |            |   |         |  
|                                    |  | (Amounts in thousands) |           |  |     
|Propane sales volumes               |  | $                      | 873,711   |  |      | $        | 898,622   |            |            | $ | (24,911 | ) |  |  | (2.8  | )%
|Propane and other gas liquids sales |  |                        | 1,210,564 |  |      |          | 1,087,513 |            |            |   | 123,051 |   |  |  | 11.3  | % 
|Gross profit                        |  |                        | 541,982   |  |      |          | 520,825   |            |            |   | 21,157  |   |  |  | 4.1   | % 
|Operating income                    |  |                        | 93,402    |  |      |          | 123,199   |            |            |   | (29,797 | ) |  |  | (24.2 | )%
|Interest expense                    |  |                        | 74,467    |  |      |          | 63,664    |            |            |   | 10,803  |   |  |  | 17.0  | % 









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| |                                              
| | ---------------------------------------------
| | Interest expense of the operating partnership





| |                        
| | -----------------------
| | Discontinued operations



|                                                                                                                                         |  |                             |         |   |      |   |        |      |  |   |        | 
|---------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------------- | ------- | - | ---- | - | ------ | ---- |  | - | ------ | 
|                                                                                                                                         |  | For the Year Ended July 31, |        
|                                                                                                                                         |  |                             |        
|                                                                                                                                         |  | 2005                        |         |   | 2004 |   |        | 2003 | 
|                                                                                                                                         |  |                             |         |   |      |   |        |      | 
|                                                                                                                                         |  | (Amounts in thousands)      |        
|Total revenues                                                                                                                           |  | $                           | 89,339  |   |      | $ | 70,995 |      |  | $ | 55,961 | 
|Cost of product sold (exclusive of depreciation, shown with
    amortization below)                                                      |  |                             | 77,407  |   |      |   | 59,441 |      |  |   | 46,116 | 
|                                                                                                                                         |  |                             |         |   |      |   |        |      | 
|Gross profit                                                                                                                             |  |                             | 11,932  |   |      |   | 11,554 |      |  |   | 9,845  | 
|Operating expense                                                                                                                        |  |                             | 2,506   |   |      |   | 2,362  |      |  |   | 2,306  | 
|Depreciation and amortization expense                                                                                                    |  |                             | 1,189   |   |      |   | 1,004  |      |  |   | 921    | 
|Equipment lease expense                                                                                                                  |  |                             | 22      |   |      |   | 22     |      |  |   | 18     | 
|Loss on disposal of assets and other                                                                                                     |  |                             | (36     | ) |      |   | 35     |      |  |   |       | 
|                                                                                                                                         |  |                             |         |   |      |   |        |      | 
|Earnings before income taxes, minority interest, discontinued
    operations and cumulative effect of change in accounting
    principle |  |                             | 8,251   |   |      |   | 8,131  |      |  |   | 6,600  | 
|Minority interest                                                                                                                        |  |                             | 1,063   |   |      |   | 82     |      |  |   | 67     | 
|Gain on sale of discontinued operations                                                                                                  |  |                             | 97,001  |   |      |   |       |      |  |   |       | 
|                                                                                                                                         |  |                             |         |   |      |   |        |      | 
|Earnings from discontinued operations                                                                                                    |  | $                           | 104,189 |   |      | $ | 8,049  |      |  | $ | 6,533  | 
|                                                                                                                                         |  |                             |         |   |      |   |        |      | 

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##### Table of Contents



Liquidity and Capital Resources










| |   |                                                                
| | - | ---------------------------------------------------------------
| |  | continued significantly warmer than normal winter temperatures;
|
| |  | continued volatile energy commodity cost environment;          
|
| |  | an unexpected downturn in business operations; or              
|
| |  | a general economic downturn in the United States.              



45



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|     |       |  |          |                                      |         |   |         | 
|---- | ----- |  | -------- | ------------------------------------ | ------- | - | ------- | 
|     |       |  |          | Shelf                                |        
|     |       |  |          | Registration                         |        
|Date |       |  | Security |                                      | Balance |  
|     |       |  |          |                                      |         |  
|     |       |  |          | Beginning balance                    |         | $ | 500,000 | 
|     | 6/03  |  |          | 1,250,000 common units               |         |   | 28,188  | 
|     | 7/03  |  |          | 110,000 common units                 |         |   | 2,481   | 
|     | 12/03 |  |          | 2,000,000 common units               |         |   | 49,500  | 
|     | 4/04  |  |          | 7,000,000 common units               |         |   | 163,380 | 
|     | 6/04  |  |          | $50,000 principal amount senior debt |         |   | 50,000  | 
|     | 8/04  |  |          | 2,500,000 common units               |         |   | 47,875  | 
|     | 8/04  |  |          | 375,000 common units                 |         |   | 7,181   | 
|     | 6/05  |  |          | 1,950,000 common units               |         |   | 38,995  | 
|     | 6/05  |  |          | 177,000 common units                 |         |   | 3,502   | 
|     |       |  |          |                                      |         |  
|     |       |  |          | Remaining balance                    |         | $ | 108,898 | 
|     |       |  |          |                                      |         |  

Operating Activities






| |                                   
| | ----------------------------------
| | Accounts receivable securitization





46



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##### Table of Contents







| |                          
| | -------------------------
| | The operating partnership



Investing Activities






| |                                                  
| | -------------------------------------------------
| | Sale of assets related to discontinued operations





| |             
| | ------------
| | Acquisitions





| |                        
| | -----------------------
| | Blue Rhino contribution



47



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##### Table of Contents





| |                     
| | --------------------
| | Capital expenditures





Financing Activities






| |                               
| | ------------------------------
| | June 2005 common unit offering





| |                                                  
| | -------------------------------------------------
| | June 2005 senior units conversion to common units





| |                                                                  
| | -----------------------------------------------------------------
| | March 2005 public common unit distribution priority
    extension





| |                                   
| | ----------------------------------
| | November 2004 common unit offering



48



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##### Table of Contents





| |                                 
| | --------------------------------
| | August 2004 common unit offering







| |               
| | --------------
| | Long-term debt





| |              
| | -------------
| | Distributions





| |                     
| | --------------------
| | Bank credit facility







| |   |                                                                                                                                                                                                                                                       
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | a base rate, which is defined as the higher of the federal funds
    rate plus 0.50% or Bank of Americas prime rate (as of
    July 31, 2005, the federal funds rate and Bank of
    Americas prime rate were 3.31% and 6.25%,
    respectively); or
|
| |  | the Eurodollar Rate plus a margin varying from 1.50% to 2.50%
    (as of July 31, 2005, the one-month Eurodollar Rate was
    3.46%).                                                                                                                 





49



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##### Table of Contents







| |   |                                                                                           
| | - | ------------------------------------------------------------------------------------------
| |  | a significant increase in the wholesale cost of propane;                                  
|
| |  | a significant delay in the collections of accounts receivable;                            
|
| |  | increased volatility in energy commodity prices related to risk
    management activities;
|
| |  | increased liquidity requirements imposed by insurance providers;                          
|
| |  | a significant downgrade in our credit rating;                                             
|
| |  | decreased trade credit; or                                                                
|
| |  | a significant acquisition.                                                                





| |                          
| | -------------------------
| | The operating partnership





| |                                                
| | -----------------------------------------------
| | Distributions paid by the operating partnership





| |                                                    
| | ---------------------------------------------------
| | Contributions received by the operating partnership







Disclosures about Effects of Transactions with Related
Parties




50



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##### Table of Contents



















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##### Table of Contents



Contractual obligations






|                                             |                                  |                                                  |        |   |         |   |        |      |        |   |        |   |   |      |        |   |            |   |        |       |   |   |         |   |   |   |         |   |         | 
|-------------------------------------------- | -------------------------------- | ------------------------------------------------ | ------ | - | ------- | - | ------ | ---- | ------ | - | ------ | - | - | ---- | ------ | - | ---------- | - | ------ | ----- | - | - | ------- | - | - | - | ------- | - | ------- | 
|                                             |                                  | Payment or Settlement Due by Fiscal Year         |       
|                                             |                                  |                                                  |       
|                                             |                                  | 2006                                             |        |   | 2007    |   |        | 2008 |        |   | 2009   |   |   | 2010 |        |   | Thereafter |   |        | Total |  
|                                             |                                  |                                                  |        |   |         |   |        |      |        |   |        |   |   |      |        |   |            |   |        |       |  
|                                             |                                  | (In thousands)                                   |       
|Long-term debt, including current portion(1) |                                  | $                                                | 2,868  |   |         | $ | 59,880 |      |        | $ | 91,402 |   |   | $    | 52,866 |   |            | $ | 73,191 |       |   | $ | 670,200 |   |   | $ | 950,407 |  
|Capital lease obligations                    |                                  | $                                                | 137    |   |         | $ | 29     |      |        | $ | 25     |   |   | $    | 29     |   |            | $ |       |       |   | $ |        |   |   | $ | 220     |  
|Fixed rate interest obligations(3)           |                                  | $                                                | 73,987 |   |         | $ | 71,760 |      |        | $ | 65,586 |   |   | $    | 59,783 |   |            | $ | 51,725 |       |   | $ | 127,385 |   |   | $ | 450,226 |  
|Operating lease obligations(2)               |                                  | $                                                | 32,630 |   |         | $ | 27,365 |      |        | $ | 22,310 |   |   | $    | 15,687 |   |            | $ | 10,151 |       |   | $ | 19,383  |   |   | $ | 127,526 |  
|Operating lease buyouts(4)                   |                                  | $                                                | 4,857  |   |         | $ | 7,395  |      |        | $ | 2,610  |   |   | $    | 6,261  |   |            | $ | 2,105  |       |   | $ | 6,114   |   |   | $ | 29,342  |  
|Purchase obligations:(5)                     |                                  |                                                  |        |   |         |   |        |      |        |   |        |   |   |      |        |   |            |   |        |       |   |   |         |   |   |   |         |  
|                                             | Product purchase commitments:(6) |                                                  |        |   |         |   |        |      |        |   |        |   |   |      |        |   |            |   |        |       |   |   |         |   |   |   |         |   |        
|                                             |                                  | Estimated payment obligations                    |        | $ | 641,223 |   |        | $    | 76,459 |   |        | $ |  |      |        | $ |           |   |        | $     |  |   |         | $ |  |   |         | $ | 717,682 | 
|                                             |                                  | Underlying major volume commitments (in gallons) |        |   | 710,084 |   |        |      | 86,850 |   |        |   |  |      |        |   |           |   |        |       |  |   |         |   |  |   |         |   | 796,934 | 
|Capital expenditure commitments(7)           |                                  | $                                                | 5,981  |   |         | $ |       |      |        | $ |       |   |   | $    |       |   |            | $ |       |       |   | $ |        |   |   | $ | 5,981   |  








|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | We have long and short-term payment obligations under agreements
    such as our senior notes and credit facilities. Amounts shown in
    the table represent our scheduled future maturities of long-term
    debt (including current maturities thereof) for the periods
    indicated. For additional information regarding our debt
    obligations, please see Liquidity and Capital
    Resources  Financing Activities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   
|(2) | We lease certain property, plant and equipment under
    noncancelable and cancelable operating leases. Amounts shown in
    the table represent minimum lease payment obligations under our
    third-party operating leases with terms in excess of one year
    for the periods indicated.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   
|    | Our off-balance sheet arrangements include the leasing of
    transportation equipment, property, computer equipment and
    propane tanks. We account for these arrangements as operating
    leases. We believe these arrangements are a cost-effective
    method for financing our equipment needs. These off-balance
    sheet arrangements enable us to lease equipment from third
    parties rather than, among other options, purchasing the
    equipment using on-balance sheet financing.                                                                                                                                                                                                                                                                                                                                                                                                            
|   
|    | Most of the operating leases involving our transportation
    equipment contain residual value guarantees. These
    transportation equipment lease arrangements are scheduled to
    expire over the next seven years. Most of these arrangements
    provide that the fair value of the equipment will equal or
    exceed a guaranteed amount, or we will be required to pay the
    lessor the difference. Although the fair values at the end of
    the lease terms have historically exceeded these guaranteed
    amounts, the maximum potential amount of aggregate future
    payments we could be required to make under these leasing
    arrangements, assuming the equipment is worthless at the end of
    the lease term, is currently $13.1 million. We do not know
    of any event, demand, commitment, trend or uncertainty that
    would result in a material change to these arrangements.
|   
|(3) | Fixed rate interest obligations represent the amount of interest
    due on fixed rate long-term debt. These amounts do not include
    interest on our bank credit facility, a variable rate debt
    obligation. As of July 31, 2005, variable rate interest on
    our outstanding balance of variable rate debt of
    $19.8 million would be $1.2 million on an annual
    basis. Actual variable rate interest amounts will differ due to
    changes in interest rates and actual seasonal borrowings under
    our bank credit facility.                                                                                                                                                                                                                                                                                                                                                                 

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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(4) | Operating lease buyouts represent the maximum amount we would
    pay if we were to exercise our right to buyout the assets at the
    end of their lease term. Historically, we have been successful
    in renewing certain leases that are subject to buyouts. However,
    there is no assurance we will be successful in the future.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   
|(5) | We define a purchase obligation as an agreement to purchase
    goods or services that is enforceable and legally binding
    (unconditional) on us that specifies all significant terms,
    including: fixed or minimum quantities to be purchased; fixed,
    minimum or variable price provisions; and the approximate timing
    of the transactions.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   
|(6) | We have long and short-term product purchase obligations for
    propane and energy commodities with third-party suppliers. These
    purchase obligations are entered into at either variable or
    fixed prices. The purchase prices that we are obligated to pay
    under variable price contracts approximate market prices at the
    time we take delivery of the volumes. Our estimated future
    variable price contract payment obligations are based on the
    July 31, 2005 market price of the applicable commodity
    applied to future volume commitments. Actual future payment
    obligations may vary depending on market prices at the time of
    delivery. The purchase prices that we are obligated to pay under
    fixed price contracts are established at the inception of the
    contract. Our estimated future fixed price contract payment
    obligations are based on the contracted fixed price under each
    commodity contract. Quantities shown in the table represent our
    volume commitments and estimated payment obligations under these
    contracts for the periods indicated.
|   
|(7) | We have short-term payment obligations relating to capital
    projects we have initiated. These commitments represent
    unconditional payment obligations that we have agreed to pay
    vendors for services rendered or products purchased.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  



| |                          
| | -------------------------
| | The operating partnership



|                                             |  |                                          |        |  |      |   |        |      |  |   |        |  |  |      |        |  |            |   |        |       |  |   |         |  |  |   |         | 
|-------------------------------------------- |  | ---------------------------------------- | ------ |  | ---- | - | ------ | ---- |  | - | ------ |  |  | ---- | ------ |  | ---------- | - | ------ | ----- |  | - | ------- |  |  | - | ------- | 
|                                             |  | Payment or Settlement Due by Fiscal Year |       
|                                             |  |                                          |       
|                                             |  | 2006                                     |        |  | 2007 |   |        | 2008 |  |   | 2009   |  |  | 2010 |        |  | Thereafter |   |        | Total | 
|                                             |  |                                          |        |  |      |   |        |      |  |   |        |  |  |      |        |  |            |   |        |       | 
|                                             |  | (In thousands)                           |       
|Long-term debt, including current portion(1) |  | $                                        | 2,868  |  |      | $ | 59,880 |      |  | $ | 91,402 |  |  | $    | 52,866 |  |            | $ | 73,191 |       |  | $ | 402,200 |  |  | $ | 682,407 | 
|Fixed rate interest obligations(2)           |  | $                                        | 50,537 |  |      | $ | 48,310 |      |  | $ | 42,136 |  |  | $    | 36,333 |  |            | $ | 28,275 |       |  | $ | 80,485  |  |  | $ | 286,076 | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The operating partnership has long and short-term payment
    obligations under agreements such as the operating
    partnerships credit facilities. Amounts shown in the table
    represent the operating partnerships scheduled future
    maturities of long-term debt (including current maturities
    thereof) for the periods indicated. For additional information
    regarding the operating partnerships debt obligations,
    please see Liquidity and Capital Resources 
    Financing Activities.                          
|   
|(2) | Fixed rate interest obligations represent the amount of interest
    due on fixed rate long-term debt. These amounts do not include
    interest on our bank credit facility, a variable rate debt
    obligation. As of July 31, 2005, variable rate interest on
    our outstanding balance of variable rate debt of
    $19.8 million would be $1.2 million on an annual
    basis. Actual variable rate interest amounts will differ due to
    changes in interest rates and actual seasonal borrowings under
    our bank credit facility.

Off-balance sheet financing arrangements




53



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| |   |                                                                                                                                                                                                                                                                                             
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | made guarantees;                                                                                                                                                                                                                                                                            
|
| |  | a retained or a contingent interest in transferred assets;                                                                                                                                                                                                                                  
|
| |  | an obligation under derivative instruments classified as
    equity; or                                                                                                                                                                                                                     
|
| |  | any obligation arising out of a material variable interest in an
    unconsolidated entity that provides financing, liquidity, market
    risk or credit risk support to the company, or that engages in
    leasing, hedging or research and development arrangements with
    the company.



Adoption of New Accounting Standards




Earnings per
Share,




54



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Critical Accounting Policies and Estimates






Depreciation of property,
plant and equipment




Residual value of
customer and storage tanks




55



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##### Table of Contents





Valuation methods,
amortization methods and estimated useful lives of intangible
assets












Fair value of derivative
commodity contracts




56



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Disclosures about Risk Management Activities Accounted for at
Fair Value




|                                                                                                                   |  |                |        |  
|------------------------------------------------------------------------------------------------------------------ |  | -------------- | ------ | -
|                                                                                                                   |  | 2005           |       
|                                                                                                                   |  |                |       
|                                                                                                                   |  | (In thousands) |       
|Net fair value of contracts outstanding at the beginning of the
    period                                         |  | $              | 424    |  
|Contracts outstanding at the beginning of the period that were
    realized or otherwise settled during the period |  |                | (9,672 | )
|Fair value of new contracts entered into during the period                                                         |  |                | 9,364  |  
|                                                                                                                   |  |                |       
|Unrealized gains in fair value of contracts outstanding at end
    of period                                       |  | $              | 116    |  
|                                                                                                                   |  |                |       



|                                                      |  |                            |     |  |                  |   |   | 
|----------------------------------------------------- |  | -------------------------- | --- |  | ---------------- | - | - | 
|                                                      |  | Fair Value of Contracts at
|                                                      |  | Period-End                
|                                                      |  |                           
|                                                      |  | Maturity                   |     |  | Maturity Greater
|                                                      |  | Less                       |     |  | Than 1 year and 
|                                                      |  | Than                       |     |  | Less than 18    
|Source of Fair Value                                  |  | 1 Year                     |     |  | Months          
|                                                      |  |                            |     |  |                 
|                                                      |  | (In thousands)            
|Prices provided by external sources                   |  | $                          | 116 |  |                  | $ |  | 
|                                                      |  |                            |     |  |                  |  
|Total value of contracts outstanding at July 31, 2005 |  | $                          | 116 |  |                  | $ |  | 
|                                                      |  |                            |     |  |                  |  










|         |                                                                
|-------- | ---------------------------------------------------------------
|ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
    RISK.





57



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Market, Credit and Liquidity Risk.


Sensitivity Analysis.











|        |                                             
|------- | --------------------------------------------
|ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.



58



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|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
    ACCOUNTING AND FINANCIAL DISCLOSURE.








|         |                         
|-------- | ------------------------
|ITEM 9A. | CONTROLS AND PROCEDURES.

Disclosure Controls and Procedures






Managements Report on Internal Control Over Financial
Reporting


Internal
Control  Integrated Framework Internal Control  Integrated Framework,




Changes in Internal Control Over Financial Reporting




59



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60



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM








Internal
Control  Integrated Framework








Internal Control  Integrated Framework Internal Control  Integrated
Framework


61



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62



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM








Internal Control 
Integrated Framework








Internal Control  Integrated Framework Internal Control  Integrated
Framework


63



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64



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|         |                   
|-------- | ------------------
|ITEM 9B. | OTHER INFORMATION.






PART III







|         |                                                         
|-------- | --------------------------------------------------------
|ITEM 10. | DIRECTORS AND EXECUTIVE OFFICERS OF THE
    REGISTRANTS.

Directors and executive officers of our general partner




|                     |  |     |    |          |       |  |           |               |  |  |          |  |  |                                                                                       
|-------------------- |  | --- | -- | -------- | ----- |  | --------- | ------------- |  |  | -------- |  |  | --------------------------------------------------------------------------------------
|                     |  |     |    | Director |       |  | Executive |               |  | 
|Name                 |  | Age |    |          | Since |  |           | Officer Since |  |  | Position
|                     |  |     |    |          |       |  |           |               |  |  |         
|James E. Ferrell     |  |     | 65 |          |       |  | 1984      |               |  |  | 2000     |  |  | Chairman, Chief Executive Officer and President                                       
|Kenneth A. Heinz     |  |     | 41 |          |       |  | N/a       |               |  |  | 2001     |  |  | Senior Vice President, Corporate Development                                          
|Kevin T. Kelly       |  |     | 40 |          |       |  | N/a       |               |  |  | 1998     |  |  | Senior Vice President and Chief Financial Officer                                     
|Patrick J. Walsh     |  |     | 51 |          |       |  | N/a       |               |  |  | 2003     |  |  | Vice President and Chief Information Officer                                          
|Stephen L. Wambold   |  |     | 37 |          |       |  | N/a       |               |  |  | 2005     |  |  | Senior Vice President, Retail Operations                                              
|Jeffery B. Ward      |  |     | 41 |          |       |  | N/a       |               |  |  | 2005     |  |  | President of Blue Rhino operations, and Senior Vice President,
    Sales and Marketing
|William K. Hoskins   |  |     | 70 |          |       |  | 2003      |               |  |  | N/a      |  |  | Director                                                                              
|A. Andrew Levison    |  |     | 49 |          |       |  | 1994      |               |  |  | N/a      |  |  | Director                                                                              
|John R. Lowden       |  |     | 48 |          |       |  | 2003      |               |  |  | N/a      |  |  | Director                                                                              
|Michael F. Morrissey |  |     | 63 |          |       |  | 1999      |               |  |  | N/a      |  |  | Director                                                                              
|Billy D. Prim        |  |     | 49 |          |       |  | 2004      |               |  |  | 2004     |  |  | Director, Special Advisor to the Chief Executive Officer                              
|Elizabeth T. Solberg |  |     | 66 |          |       |  | 1998      |               |  |  | N/a      |  |  | Director                                                                              

James E. Ferrell


Kenneth A. Heinz


Kevin T. Kelly


65



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Patrick J. Walsh


Stephen L. Wambold


Jeffery B. Ward


William K. Hoskins


A. Andrew Levison


John R. Lowden


Michael F. Morrissey


Billy D. Prim 


Elizabeth T. Solberg


Corporate governance




66



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www.ferrellgas.com




Audit committee


www.ferrellgas.com


Limitation on directors participating on audit committees




Corporate Governance and Nominating Committee


www.ferrellgas.com


Compensation Committee


www.ferrellgas.com


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Disclosure about our security holders ability to
communicate with the Board of Directors of our general
partner
















Code of Ethics for principal executive and financial officers
and Code of Business Conduct and Ethics


www.ferrellgas.com




Compensation of our general partner






| |   |                                                                                                                        
| | - | -----------------------------------------------------------------------------------------------------------------------
| |  | distributions on its combined 2% general partner interest in
    Ferrellgas Partners and the operating partnership; and
|
| |  | reimbursement for:                                                                                                     



| |   |                                                                                                        
| | - | -------------------------------------------------------------------------------------------------------
| |  | all direct and indirect costs and expenses incurred on our
    behalf;                                 
|
| |  | all selling, general and administrative expenses incurred by our
    general partner on our behalf; and
|
| |  | all other expenses necessary or appropriate to the conduct of
    our business and allocable to us.    



Section 16(a) Beneficial Ownership Reporting
Compliance






68



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|         |                        
|-------- | -----------------------
|ITEM 11. | EXECUTIVE COMPENSATION.

Summary compensation table




|                            |                              |      |      |                     |     |              |                        |         |            |              |         |           |         |        |           |         |     |  |              |     |  |  |   |   |  |  |        |        | 
|--------------------------- | ---------------------------- | ---- | ---- | ------------------- | --- | ------------ | ---------------------- | ------- | ---------- | ------------ | ------- | --------- | ------- | ------ | --------- | ------- | --- |  | ------------ | --- |  |  | - | - |  |  | ------ | ------ | 
|                            |                              |      |      | Annual Compensation |     |              | Long-term Compensation |         |            |             
|                            |                              |      |      |                     |     |              |                        |         |            |             
|                            |                              |      |      |                     |     | Awards       |                        |         | Pay-Outs   |              |         |          
|                            |                              |      |      |                     |     | Securities   |                        |         | Long-Term  |              |         |          
|                            |                              |      |      |                     |     | Other Annual |                        |         | Underlying |              |         | Incentive |         |        | All Other |        
|                            |                              |      |      | Salary              |     |              | Bonus                  |         |            | Compensation |         |           | Options |        |           | Payouts |     |  | Compensation |    
|Name and Principal Position |                              | Year |      |                     | ($) |              |                        | (1)($)  |            |              | $(2)    |           |         | (#)(3) |           |         | ($) |  |              | ($) | 
|                            |                              |      |      |                     |     |              |                        |         |            |              |         |           |         |        |           |         |     |  |              |     | 
|James E. Ferrell            |                              |      | 2005 |                     |     |              | 635,000                |         |            |              |        |           |         |        |          |         |     |  |             |     |  |  |  |   |  |  | 11,040 | (4)   
|                            | Chairman, Chief Executive    |      |      | 2004                |     |              |                        | 635,000 |            |              |         | 110,000   |         |        |           |        |     |  |              |    |  |  |   |  |  |  |        | 8,329  | 
|                            | Officer and President        |      |      | 2003                |     |              |                        | 624,000 |            |              |         | 500,000   |         |        |           |        |     |  |              |    |  |  |   |  |  |  |        | 6,597  | 
|Kevin T. Kelly              |                              |      | 2005 |                     |     |              | 300,000                |         |            |              |        |           |         |        | 7,274     |         |     |  |             |     |  |  |  |   |  |  | 10,400 | (4)   
|                            | Senior Vice President and    |      |      | 2004                |     |              |                        | 298,000 |            |              |         | 110,000   |         |        |           | 6,405   |     |  |              |    |  |  |   |  |  |  |        | 12,696 | 
|                            | Chief Financial Officer      |      |      | 2003                |     |              |                        | 271,000 |            |              |         | 200,000   |         |        |           | 4,530   |     |  |              |    |  |  |   |  |  |  |        | 14,481 | 
|Billy D. Prim               |                              |      | 2005 |                     |     |              | 246,000                |         |            |              |        |           |         |        | 7,274     |         |     |  |             |     |  |  |  |   |  |  | 629    | (4)   
|                            | Special Advisor to the Chief |      |      | 2004                |     |              |                        | 185,000 |            |              |         |          |         |        |           |        |     |  |              |    |  |  |   |  |  |  |        | 69     | 
|                            | Executive Officer            |      |      |                     |     |              |                        |         |            |              |         |           |         |        |           |         |     |  |              |     |  |  |   |   |  |  |        |        | 
|Jeffery B. Ward             |                              |      | 2005 |                     |     |              | 244,000                |         |            |              |        |           |         |        | 3,749     |         |     |  | 20,000       |     |  |  |  |   |  |  | 779    | (4)   
|                            | President of Blue Rhino      |      |      |                     |     |              |                        |         |            |              |         |           |         |        |           |         |     |  |              |     |  |  |   |   |  |  |        |        | 
|                            | operations and Senior Vice   |      |      |                     |     |              |                        |         |            |              |         |           |         |        |           |         |     |  |              |     |  |  |   |   |  |  |        |        | 
|                            | President, Sales & Marketing |      |      |                     |     |              |                        |         |            |              |         |           |         |        |           |         |     |  |              |     |  |  |   |   |  |  |        |        | 
|Kenneth A. Heinz            |                              |      | 2005 |                     |     |              | 234,000                |         |            |              |        |           |         |        | 7,251     |         |     |  |             |     |  |  |  |   |  |  | 9,869  | (4)   
|                            | Senior Vice President,       |      |      | 2004                |     |              |                        | 225,000 |            |              |         | 110,000   |         |        |           | 6,375   |     |  |              |    |  |  |   |  |  |  |        | 13,831 | 
|                            | Corporate Development        |      |      | 2003                |     |              |                        | 219,000 |            |              |         | 130,000   |         |        |           | 4,530   |     |  |              |    |  |  |   |  |  |  |        | 14,694 | 
|Timothy E. Scronce(5)       |                              |      | 2005 |                     |     |              | 300,000                |         |            |              |        |           |         |        | 5,986     |         |     |  |             |     |  |  |  |   |  |  | 702    | (4)   
|Patrick J. Chesterman(6)    |                              |      | 2005 |                     |     |              | 354,000                |         |            |              |        |           |         |        | 7,274     |         |     |  |             |     |  |  |  |   |  |  | 12,303 | (4)   
|                            |                              |      | 2004 |                     |     |              | 350,000                |         |            |              | 210,000 |           |         |        | 6,405     |         |     |  |             |     |  |  |  |   |  |  | 13,648 |       
|                            |                              |      | 2003 |                     |     |              | 348,000                |         |            |              | 141,750 |           |         |        | 4,530     |         |     |  |             |     |  |  |  |   |  |  | 12,934 |       






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Awards under bonus plans are for the year reported, regardless
    of the year paid.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   
|(2) | All amounts represent the value of shares contributed to each
    individuals Employee Stock Ownership Plan account.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   
|(3) | The awards are grants of unit options from the Ferrellgas, Inc.
    Unit Option Plan and stock options from the Incentive
    Compensation Plan, a stock option plan of Ferrell Companies (see
    below for unit option and stock option grant tables).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   
|(4) | Includes for Mr. Ferrell contributions of $11,040 to the
    employees 401(k) and profit sharing plans. Includes for
    Mr. Kelly contributions of $10,400 to the employees
    401(k) and profit sharing plans. Includes for Mr. Prim
    contributions of $308 to the employees 401(k) and profit
    sharing plan and compensation of $321 resulting from the payment
    of life insurance premiums. Includes for Mr. Ward
    contributions of $692 to the employees 401(k) and profit
    sharing plans and compensation of $87 resulting from the payment
    of life insurance premiums Includes for Mr. Heinz
    contributions of $9,366 to the employees 401(k) and profit
    sharing plans and compensation of $503 resulting from the
    payment of life insurance premiums. Includes for
    Mr. Scronce contributions of $461 to the employees
    401(k) and profit sharing plans and compensation of $241
    resulting from the payment of life insurance premiums. Includes
    for Mr. Chesterman contributions of $11,400 to the
    employees 401(k) and profit sharing plans and compensation
    of $903 resulting from the payment of life insurance premiums.
|   
|(5) | Mr. Scronce left the Company in August 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   
|(6) | Mr. Chesterman left the Company in January 2005.
    Mr. Chesterman agreed to make himself available on a
    consulting basis to assist with the transition of his
    responsibilities for a period of one year, for a consulting fee
    of $29,167 per month.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

69



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Unit options










AGGREGATED FERRELLGAS UNIT OPTION EXERCISES IN LAST FISCAL
YEAR AND


FISCAL YEAR-END OPTION VALUES


|                      |  |                   |   |  |                    |                     |              |               |                     |              |               |  |  |  |                 | 
|--------------------- |  | ----------------- | - |  | ------------------ | ------------------- | ------------ | ------------- | ------------------- | ------------ | ------------- |  |  |  | --------------- | 
|                      |  |                   |   |  |                    | Number of           |              |               |                    
|                      |  |                   |   |  |                    | Securities          |              |               | Value of            |             
|                      |  |                   |   |  |                    | Underlying          |              |               | Unexercised in-the- |             
|                      |  |                   |   |  |                    | Unexercised Options |              |               | Money Options at    |             
|                      |  |                   |   |  |                    | at Fiscal Year End  |              |               | Fiscal Year End     |             
|                      |  |                   |   |  |                    | (#)                 |              |               | ($)                 |             
|                      |  |                   |   |  |                    |                     |              |               |                     |             
|                      |  | Units Acquired on |   |  |                    |                     | Exercisable/ |               |                     | Exercisable/ |              
|Name                  |  | Exercise (#)      |   |  | Value Realized ($) |                     |              | Unexercisable |                     |              | Unexercisable | 
|                      |  |                   |   |  |                    |                     |              |               |                     |              |               | 
|James E. Ferrell      |  |                   |  |  |                    |                     |             |               |                     |              | 60,000/60,000 |  |  |  | 127,200/127,200 | 
|Kevin T. Kelly        |  |                   |  |  |                    |                     |             |               |                     |              | 38,000/19,000 |  |  |  | 80,560/40,280   | 
|Kenneth A. Heinz      |  |                   |  |  |                    |                     |             |               |                     |              | 30,400/15,200 |  |  |  | 64,448/32,224   | 
|Patrick J. Chesterman |  |                   |  |  |                    |                     |             |               |                     |              | 18,000/-      |  |  |  | 38,160/-        | 

Employee Stock Ownership Plan




Incentive Compensation Plan






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AGGREGATE FERRELL COMPANIES STOCK OPTION GRANTS IN LAST
FISCAL YEAR


|                |  |                    |        |                    |                     |  |   |                |  |            |                  |  |                    |       |         |  |  |   |        | 
|--------------- |  | ------------------ | ------ | ------------------ | ------------------- |  | - | -------------- |  | ---------- | ---------------- |  | ------------------ | ----- | ------- |  |  | - | ------ | 
|                |  | Individual Grants  |        |                    |                     |  |   |                | 
|                |  |                    |        |                    |                     |  |   |                | 
|                |  |                    |        | % of total Options |                     |  |   |                |  |            | Grant Date Value | 
|                |  | Number of          |        |                    | Granted to          |  |   |                |  |            |                  |  |                   
|                |  | Securities         |        |                    | Employees in Fiscal |  |   |                |  | Expiration |                  |  | Grant Date Present |      
|Name            |  | Underlying Options |        |                    | Year                |  |   | Exercise Price |  |            | Date             |  |                    | Value |        
|                |  |                    |        |                    |                     |  |   |                |  |            |                  |  |                    |       |        
|Jeffery B. Ward |  |                    | 20,000 |                    |                     |  | 5 | %              |  | $          | 11.78            |  |                    |       | 9/15/14 |  |  | $ | 47,740 | 



AGGREGATED FERRELL COMPANIES STOCK OPTION EXERCISES IN LAST
FISCAL YEAR


AND FISCAL YEAR-END OPTION VALUES


|                      |  |              |   |  |          |                      |   |               |                        |  |                 |  |  |  |                     | 
|--------------------- |  | ------------ | - |  | -------- | -------------------- | - | ------------- | ---------------------- |  | --------------- |  |  |  | ------------------- | 
|                      |  |              |   |  |          | Number of Securities |   |               |                       
|                      |  |              |   |  |          | Underlying           |   |               |                       
|                      |  |              |   |  |          | Unexercised Options  |   |               | Value of Unexercised   | 
|                      |  |              |   |  |          | at Fiscal Year End   |   |               | in-the-Money Options   | 
|                      |  |              |   |  |          | (#)                  |   |               | at Fiscal Year End ($) | 
|                      |  | Shares       |   |  | Value    |                      |   |               |                        |  |                 | 
|                      |  | Acquired on  |   |  | Realized |                      |   | Exercisable/  |                        |  | Exercisable/    | 
|Name                  |  | Exercise (#) |   |  | ($)      |                      |   | Unexercisable |                        |  | Unexercisable   | 
|                      |  |              |   |  |          |                      |   |               |                        |  |                 | 
|James E Ferrell       |  |              |  |  |          |                      |  |               |                        |  | 375,000/375,000 |  |  |  | 3,195,000/3,195,000 | 
|Kevin T. Kelly        |  |              |  |  |          |                      |  |               |                        |  | 38,625/211,375  |  |  |  | 334,288/1,828,413   | 
|Kenneth A. Heinz      |  |              |  |  |          |                      |  |               |                        |  | 25,313/194,688  |  |  |  | 216,676/1,665,799   | 
|Billy D. Prim         |  |              |  |  |          |                      |  |               |                        |  | 6,250/243,750   |  |  |  | 6,375/248,625       | 
|Jeffery B. Ward       |  |              |  |  |          |                      |  |               |                        |  | /20,000        |  |  |  | /20,400            | 
|Patrick J. Chesterman |  |              |  |  |          |                      |  |               |                        |  | 80,000/        |  |  |  | 695,000/           | 

Profit Sharing Plan




Supplemental Savings Plan




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Employment agreements






| |   |                                                                                                                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | an annual bonus, the amount to be determined at the sole
    discretion of the independent members of the Board of Directors
    of our general partner; and                                                                           
|
| |  | an incentive bonus equal to 0.005 of the increase in the equity
    value of Ferrell Companies from July 31, 1998 to and
    including the date of the most recent appraisal of Ferrell
    Companies at the date the bonus is payable.















Compensation of directors




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|         |                                                                                                   
|-------- | --------------------------------------------------------------------------------------------------
|ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
    MANAGEMENT AND RELATED UNITHOLDER MATTERS.





| |   |                                                                                       
| | - | --------------------------------------------------------------------------------------
| |  | persons that own more than 5% of our common units;                                    
|
| |  | persons that are directors or named executive officers of our
    general partner; and
|
| |  | all directors and executive officers of our general partner as a
    group.           



Ferrellgas Partners, L.P.


|               |  |                                                 |  |              |            |  |            |  |      | 
|-------------- |  | ----------------------------------------------- |  | ------------ | ---------- |  | ---------- |  | ---- | 
|               |  |                                                 |  | Units        |            |  |           
|               |  |                                                 |  | Beneficially |            |  | Percentage | 
|Title of Class |  | Name and Address of Beneficial Owner            |  | Owned        |            |  | of Class   | 
|               |  |                                                 |  |              |            |  |            | 
|Common units   |  | Employee Stock Ownership Trust                  |  |              | 18,435,773 |  |            |  | 30.6 | 
|               |  | James E. Ferrell                                |  |              | 4,232,025  |  |            |  | 7.0  | 
|               |  | Kenneth A. Heinz                                |  |              | 30,700     |  |            |  | *    | 
|               |  | Kevin T. Kelly                                  |  |              | 38,700     |  |            |  | *    | 
|               |  | Patrick J. Walsh                                |  |              | 2,200      |  |            |  | *    | 
|               |  | Stephen L. Wambold                              |  |              |           |  |            |  | *    | 
|               |  | Jeffrey E. Ward                                 |  |              |           |  |            |  | *    | 
|               |  | William K. Hoskins                              |  |              | 15,000     |  |            |  | *    | 
|               |  | A. Andrew Levison                               |  |              | 39,300     |  |            |  | *    | 
|               |  | John R. Lowden                                  |  |              |           |  |            |  | *    | 
|               |  | Michael F. Morrissey                            |  |              | 1,000      |  |            |  | *    | 
|               |  | Billy D. Prim                                   |  |              | 812,155    |  |            |  | 1.3  | 
|               |  | Elizabeth T. Solberg                            |  |              | 8,431      |  |            |  | *    | 
|               |  | All Directors and Executive Officers as a Group |  |              | 5,179,511  |  |            |  | 8.6  | 






|  |                      
|- | ---------------------
|* | Less than one percent





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Securities authorized for issuance under equity compensation
plans




|                                                              |  |                    |         |  |                   |   |       |                                |  |  |         |    
|------------------------------------------------------------- |  | ------------------ | ------- |  | ----------------- | - | ----- | ------------------------------ |  |  | ------- | ---
|                                                              |  | Number of Common   |         |  | Weighted-Average  |   |       | Number of Common Units         | 
|                                                              |  | Units to be Issued |         |  | Exercise Price of |   |       | Remaining Available for Future | 
|                                                              |  | upon Exercise of   |         |  | Outstanding       |   |       | Issuance Under Equity          | 
|                                                              |  | Outstanding        |         |  | Options,          |   |       | Compensation Plans             | 
|                                                              |  | Options, Warrants  |         |  | Warrants and      |   |       | (Excluding Securities          | 
|Plan category                                                 |  | and Rights         |         |  | Rights            |   |       | Reflected in the First Column) | 
|                                                              |  |                    |         |  |                   |   |       |                                | 
|Equity compensation plans approved by security holders        |  |                    |        |  |                   |   |      |                                |  |  |        |    
|Equity compensation plans not approved by security holders(1) |  |                    | 344,676 |  |                   | $ | 18.52 |                                |  |  | 219,450 | (2)
|                                                              |  |                    |         |  |                   |   |       |                                | 
|Total                                                         |  |                    | 344,676 |  |                   | $ | 18.52 |                                |  |  | 219,450 |    
|                                                              |  |                    |         |  |                   |   |       |                                | 






|    |                                                                                                                  
|--- | -----------------------------------------------------------------------------------------------------------------
|(1) | The Second Amended and Restated Ferrellgas Unit Option Plan did
    not require approval by the security holders.
|   
|(2) | This number may be increased upon the occurrence of particular
    events. See narrative below.                  







| |   |                                                                                                                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | develop a proprietary interest in our growth and performance;                                                                                                                                              
|
| |  | generate an increased incentive to contribute to our future
    success and prosperity, thereby enhancing our value for the
    benefit of our common unitholders; and                                     
|
| |  | enhance our ability to attract and retain key individuals who
    are essential to our progress, growth and profitability, by
    giving these individuals the opportunity to acquire our common
    units.







| |   |                                                                                                                                  
| | - | ---------------------------------------------------------------------------------------------------------------------------------
| |  | designate the employees who are to be participants in the plan;                                                                  
|
| |  | determine the number of unit options to be granted to an
    employee;                                                           
|
| |  | determine the terms and conditions of any unit option;                                                                           
|
| |  | interpret, construe and administer the plan and any instrument
    or agreement relating to a unit option granted under the plan;

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| |   |                                                                                                                                                                  
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | establish, amend, suspend, or waive such rules and regulations
    and appoint such agents as it deems appropriate for the proper
    administration of the plan;
|
| |  | make a determination as to the right of any person to receive
    payment of (or with respect to) a unit option; and                                             
|
| |  | make any other determinations and take any other actions that
    the administrator deems necessary or desirable for the
    administration of the plan.         














|         |                                                
|-------- | -----------------------------------------------
|ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.



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##### Table of Contents



Certain business relationships




Indebtedness of management




Transactions with promoters









|         |                                       
|-------- | --------------------------------------
|ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES



|                                   |       |                |       |       |      |   |     |       | 
|---------------------------------- | ----- | -------------- | ----- | ----- | ---- | - | --- | ----- | 
|For the Fiscal Year Ended July 31, |       | 2005           |       |       | 2004 |  
|                                   |       |                |       |       |      |  
|                                   |       | (In thousands) |      
|Audit fees(1)                      |       | $              | 1,422 |       |      | $ | 712 |      
|Audit related fees(2)              |       |                | 17    |       |      |   | 329 |      
|Tax fees(3)                        |       |                | 16    |       |      |   | 19  |      
|All other fees(4)                  |       |                | 6     |       |      |   | 6   |      
|                                   |       |                |       |       |      |  
|                                   | Total |                | $     | 1,461 |      |   | $   | 1,066 | 
|                                   |       |                |       |       |      |  






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Audit fees consist of the aggregate fees billed for each of the
    last two fiscal years for professional services rendered by
    Deloitte & Touche LLP in connection with the audit of
    our annual financial statements and the review of financial
    statements included in our quarterly reports on Form 10-Q.
    In addition, these fees also covered those services that are
    normally provided by an accountant in connection with statutory
    and regulatory filings or engagements and services related to
    the audit of our internal controls over financial reporting.
|   
|(2) | Audit-related fees consist of the aggregate fees billed in each
    of the last two fiscal years for assurance and related services
    by Deloitte & Touche LLP that we believe are reasonably
    related to the performance of the audit or review of our
    financial statements and that would not normally be reported
    under Item 9(e)(1) of Schedule 14A. These services
    generally consisted of due diligence associated with acquisition
    transactions, financial accounting and reporting consultations
    and benefit plans audits.                                      
|   
|(3) | Tax fees consist of the aggregate fees billed in each of the
    last two fiscal years for professional services rendered by
    Deloitte & Touche LLP in connection with tax
    compliance, tax advice, and tax planning. These services
    included the review of our tax returns, tax research and tax
    consultation.                                                                                                                                                                                                                                                                   
|   
|(4) | All other fees consist the aggregate fees billed in each of the
    last two fiscal years for products and services provided by
    Deloitte & Touche LLP, other than the services that
    would normally be reported in Items 9(e)(1) through 9(e)(3)
    of Schedule 14A. These services consisted of subscription
    fees related to a web-based research tool provided by
    Deloitte & Touche LLP.                                                                                                                                                                                      



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PART IV







|         |                                            
|-------- | -------------------------------------------
|ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.

1.     Financial Statements.




2.     Financial Statement
Schedules.




3.     Exhibits.




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|        |   |             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|------- | - | ----------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |   |            
|Number  |   | Description
|        |   |            
|        | 2 | .1          |  | Contribution Agreement dated February 8, 2004, by and among
    FCI Trading Corp., Ferrellgas, Inc., Ferrellgas Partners, L.P.
    and Ferrellgas, L.P. Incorporated by reference to
    Exhibit 2.1 to our Current Report on Form 8-K filed
    February 12, 2004.                                                                                                                                                                                                                                                                                
|        | 3 | .1          |  | Fourth Amended and Restated Agreement of Limited Partnership of
    Ferrellgas Partners, L.P., dated as of February 18, 2003.
    Incorporated by reference to Exhibit 4.3 to our Current
    Report on Form 8-K filed February 18, 2003.                                                                                                                                                                                                                                                                                                          
|        | 3 | .2          |  | First Amendment to the Fourth Amended and Restated Agreement of
    Limited Partnership of Ferrellgas Partners, L.P., dated as of
    February 18, 2003. Incorporated by reference to
    Exhibit 3.1 to our Current Report on Form 8-K filed
    March 8, 2005.                                                                                                                                                                                                                                                                                   
|        | 3 | .3          |  | Second Amendment to the Fourth Amended and Restated Agreement of
    Limited Partnership of Ferrellgas Partners, L.P., dated as of
    June 29, 2005. Incorporated by reference to
    Exhibit 4.1 to our Current Report on Form 8-K filed
    June 30, 2005.                                                                                                                                                                                                                                                                                      
|        | 3 | .4          |  | Certificate of Incorporation for Ferrellgas Partners Finance
    Corp. Incorporated by reference to the same numbered Exhibit to
    our Quarterly Report on Form 10-Q filed June 13, 1997.                                                                                                                                                                                                                                                                                                                                                        
|        | 3 | .5          |  | Bylaws of Ferrellgas Partners Finance Corp. Incorporated by
    reference to the same numbered Exhibit to our Quarterly Report
    on Form 10-Q filed June 13, 1997.                                                                                                                                                                                                                                                                                                                                                                               
|        | 3 | .6          |  | Third Amended and Restated Agreement of Limited Partnership of
    Ferrellgas, L.P., dated as of April 7, 2004. Incorporated
    by reference to Exhibit 3.1 to our Current Report on
    Form 8-K filed April 22, 2004.                                                                                                                                                                                                                                                                                                                           
|        | 3 | .7          |  | Certificate of Incorporation of Ferrellgas Finance Corp.
    Incorporated by reference to Exhibit 4.1 to the Current
    Report on Form 8-K of Ferrellgas Partners, L.P. filed
    February 18, 2003.                                                                                                                                                                                                                                                                                                                                              
|        | 3 | .8          |  | Bylaws of Ferrellgas Finance Corp. Incorporated by reference to
    Exhibit 4.2 to the Current Report on Form 8-K of
    Ferrellgas Partners, L.P. filed February 18, 2003.                                                                                                                                                                                                                                                                                                                                                                        
|        | 4 | .1          |  | Specimen Certificate evidencing Common Units representing
    Limited Partner Interests (contained in Exhibit 3.1 hereto
    as Exhibit A thereto).                                                                                                                                                                                                                                                                                                                                                                                                
|        | 4 | .2          |  | Indenture, dated as of September 24, 2002, with form of
    Note attached, among Ferrellgas Partners, L.P., Ferrellgas
    Partners Finance Corp., and U.S. Bank National Association,
    as trustee, relating to
    83/4% Senior
    Notes due 2012. Incorporated by reference to Exhibit 4.1 to
    our Current Report on Form 8-K filed September 24,
    2002.                                                                                                                                                                               
|        | 4 | .3          |  | Indenture, dated as of April 20, 2004, with form of Note
    attached, among Ferrellgas Escrow LLC and Ferrellgas Finance
    Escrow Corporation and U.S. Bank National Association, as
    trustee, relating to
    63/4% Senior
    Notes due 2014. Incorporated by reference to Exhibit 4.1 to
    our Current Report on Form 8-K filed April 22, 2004.                                                                                                                                                                                         
|        | 4 | .4          |  | Ferrellgas, L.P., Note Purchase Agreement, dated as of
    July 1, 1998, relating to: $109,000,000 6.99% Senior
    Notes, Series A, due August 1, 2005, $37,000,000
    7.08% Senior Notes, Series B, due August 1, 2006,
    $52,000,000 7.12% Senior Notes, Series C, due
    August 1, 2008, $82,000,000 7.24% Senior Notes,
    Series D, due August 1, 2010, and $70,000,000
    7.42% Senior Notes, Series E, due August 1, 2013.
    Incorporated by reference to Exhibit 4.4 to our Annual
    Report on Form 10-K filed October 29, 1998.
|        | 4 | .5          |  | Ferrellgas, L.P., Note Purchase Agreement, dated as of
    February 28, 2000, relating to: $21,000,000
    8.68% Senior Notes, Series A, due August 1, 2006,
    $70,000,000 8.78% Senior Notes, Series B, due
    August 1, 2007, and $93,000,000 8.87% Senior Notes,
    Series C, due August 1, 2009. Incorporated by
    reference to Exhibit 4.2 to our Quarterly Report on
    Form 10-Q filed March 16, 2000.                                                                                                                               
|        | 4 | .6          |  | Registration Rights Agreement, dated as of December 17,
    1999, by and between Ferrellgas Partners, L.P. and Williams
    Natural Gas Liquids, Inc. Incorporated by reference to
    Exhibit 4.2 to our Current Report on Form 8-K filed
    December 29, 2000.                                                                                                                                                                                                                                                                                  
|        | 4 | .7          |  | First Amendment to the Registration Rights Agreement, dated as
    of March 14, 2000, by and between Ferrellgas Partners, L.P.
    and Williams Natural Gas Liquids, Inc. Incorporated by reference
    to Exhibit 4.1 to our Quarterly Report on Form 10-Q
    filed March 16, 2000.                                                                                                                                                                                                                                                              

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|        |    |             |  |                                                                                                                                                                                                                                                                                                                                                                                                                              
|------- | -- | ----------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |            
|Number  |    | Description
|        |    |            
|        | 4  | .8          |  | Second Amendment to the Registration Rights Agreement, dated as
    of April 6, 2001, by and between Ferrellgas Partners, L.P.
    and The Williams Companies, Inc. Incorporated by reference to
    Exhibit 10.3 to our Current Report on Form 8-K filed
    April 6, 2001.                                                                                                                                                 
|        | 4  | .9          |  | Third Amendment to the Registration Rights Agreement, dated as
    of June 29, 2005, between JEF Capital Management, Inc. and
    Ferrellgas Partners, L.P. Incorporated by reference to
    Exhibit 10.1 to our Current Report of Form 8-K filed
    June 30, 2005.                                                                                                                                                         
|        | 4  | .10         |  | Representations Agreement, dated as of December 17, 1999,
    by and among Ferrellgas Partners, L.P., Ferrellgas, Inc.,
    Ferrellgas, L.P. and Williams Natural Gas Liquids, Inc.
    Incorporated by reference to Exhibit 2.3 to our Current
    Report on Form 8-K filed December 29, 1999.                                                                                                                              
|        | 4  | .11         |  | First Amendment to Representations Agreement, dated as of
    April 6, 2001, by and among Ferrellgas Partners, L.P.,
    Ferrellgas, Inc., Ferrellgas, L.P. and The Williams Companies,
    Inc. Incorporated by reference to Exhibit 10.2 to our
    Current Report on Form 8-K filed April 6, 2001.                                                                                                                        
|        | 4  | .12         |  | Waiver and Acknowledgement of No Material Event dated
    November 20, 2003, by and among Ferrellgas Partners, L.P.,
    Ferrellgas, L.P., Ferrellgas, Inc. and JEF Capital Management,
    Inc. Incorporated by reference to Exhibit 4.1 to our
    Current Report on Form 8-K filed November 24, 2003.                                                                                                                     
|        | 4  | .13         |  | Extension of Waiver and Acknowledgement of No Material Event
    dated February 25, 2004, by and among Ferrellgas Partners,
    L.P., Ferrellgas, L.P., Ferrellgas, Inc. and JEF Capital
    Management, Inc. incorporated by reference to Exhibit 4.11
    to our Quarterly Report on Form 10-Q filed on
    March 10, 2004.                                                                                                
|        | 4  | .14         |  | Extension of Waiver and Acknowledgement of No Material Event
    dated June 9, 2005 by and among Ferrellgas Partners, L.P.,
    Ferrellgas, L.P., Ferrellgas Inc. and JEF Capital Management,
    Inc. Incorporated by reference to Exhibit 4.1 to our
    Current Report on Form 8-K filed June 10, 2005.                                                                                                                   
|        | 10 | .1          |  | Fourth Amended and Restated Credit Agreement, dated as of
    December 10, 2002, by and among Ferrellgas, L.P.,
    Ferrellgas, Inc., Bank of America National Trust and Savings
    Association, as agent, and the other financial institutions
    party. Incorporated by reference to Exhibit 10.3 to our
    Quarterly Report on Form 10-Q filed December 11, 2002.                                                      
|        | 10 | .2          |  | First Amendment to the Fourth Amended and Restated Credit
    Agreement, dated as of March 9, 2004, by and among
    Ferrellgas, L.P., Ferrellgas, Inc., Bank of America National
    Trust and Savings Association, as agent, and the other financial
    institutions party. Incorporated by reference to
    Exhibit 99.3 to our Current Report on Form 8-K/A filed
    April 2, 2004.                                    
|        | 10 | .3          |  | Second Amendment to the Fourth Amended and Restated Credit
    Agreement, dated as of September 3, 2004, by and among
    Ferrellgas, L.P., Ferrellgas, Inc., Bank of America National
    Trust and Savings Association, as agent, and the lenders party
    to the original agreement. Incorporated by reference to
    Exhibit 10.3 to our Annual Report on Form 10-K filed
    October 13, 2004.                         
|        | 10 | .4          |  | Third Amendment to the Fourth Amended and Restated Credit
    Agreement, dated October 26, 2004, among Ferrellgas, L.P.,
    Ferrellgas, Inc., Bank of America National Trust and Savings
    Association, as agent, and the lenders party to the original
    agreement. Incorporated by reference to Exhibit 10.2 to our
    Current Report on Form 8-K filed November 5, 2004.                                            
|        | 10 | .5          |  | Fifth Amended and Restated Credit Agreement dated as of
    April 22, 2005, by and among Ferrellgas, L.P. as the
    borrower, Ferrellgas, Inc. as the general partner of the
    borrower, Bank of America N.A., as administrative agent and
    swing line lender, and the lenders and L/C issuers party hereto.
    Incorporated by reference to Exhibit 10.5 to our Quarterly
    Report on Form 10-Q filed June 8, 2005.
|        | 10 | .6          |  | Receivable Interest Sale Agreement, dated as of
    September 26, 2000, by and between Ferrellgas, L.P., as
    originator, and Ferrellgas Receivables, L.L.C., as buyer.
    Incorporated by reference to Exhibit 10.17 to our Annual
    Report on Form 10-K filed October 26, 2000.                                                                                                                                       
|        | 10 | .7          |  | First Amendment to the Receivable Interest Sale Agreement dated
    as of January 17, 2001, by and between Ferrellgas, L.P., as
    originator, and Ferrellgas Receivables, L.L.C., as buyer.
    Incorporated by reference to Exhibit 10.5 to our Quarterly
    Report on Form 10-Q filed March 14, 2001.                                                                                                                   
|        | 10 | .8          |  | Amendment No. 2 to the Receivable Interest Sale Agreement
    dated November 1, 2004 between Ferrellgas, L.P., as
    Originator, and Ferrellgas Receivables, L.L.C., as buyer.
    Incorporated by reference to Exhibit 10.1 to our Current
    Report on Form 8-K filed November 45, 2004.                                                                                                                                 

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|        |    |             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|------- | -- | ----------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |            
|Number  |    | Description
|        |    |            
|        | 10 | .9          |  | Amendment No. 3 to the Receivable Interest Sale Agreement
    dated June 7, 2005 between Ferrellgas, L.P., as Originator,
    and Ferrellgas Receivables, L.L.C., as buyer. Incorporated by
    reference to Exhibit 10.9 to our Quarterly Report on
    Form 10-Q filed June 8, 2005.                                                                                                                                                                      
|        | 10 | .10         |  | Receivables Purchase Agreement, dated as of September 26,
    2000, by and among Ferrellgas Receivables, L.L.C., as seller,
    Ferrellgas, L.P., as servicer, Jupiter Securitization
    Corporation, the financial institutions from time to time party
    hereto, and Bank One, NA, main office Chicago, as agent.
    Incorporated by reference to Exhibit 10.18 to our Annual
    Report on Form 10-K filed October 26, 2000.                         
|        | 10 | .11         |  | First Amendment to the Receivables Purchase Agreement, dated as
    of January 17, 2001, by and among Ferrellgas Receivables,
    L.L.C., as seller, Ferrellgas, L.P., as servicer, Jupiter
    Securitization Corporation, the financial institutions from time
    to time party hereto, and Bank One, N.A., main office Chicago,
    as agent. Incorporated by reference to Exhibit 10.4 to our
    Quarterly Report on Form 10-Q filed March 14, 2001.  
|        | 10 | .12         |  | Second Amendment to the Receivables Purchase Agreement dated as
    of September 25, 2001, by and among Ferrellgas Receivables,
    L.L.C., as seller, Ferrellgas, L.P., as servicer, Jupiter
    Securitization Corporation, the financial institutions from time
    to time party hereto, and Bank One, N.A., main office Chicago,
    as agent. Incorporated by reference to Exhibit 10.29 to our
    Annual Report on Form 10-K filed October 25, 2001.
|        | 10 | .13         |  | Third Amendment to the Receivables Purchase Agreement, dated as
    of September 24, 2002, by and among Ferrellgas Receivables,
    L.L.C., as seller, Ferrellgas, L.P., as servicer, Jupiter
    Securitization Corporation, the financial institutions from time
    to time party hereto, and Bank One, NA, main office Chicago, as
    agent. Incorporated by reference to Exhibit 10.11 to our
    Annual Report on Form 10-K filed October 23, 2002.  
|        | 10 | .14         |  | Fourth Amendment to the Receivables Purchase Agreement, dated as
    of September 23, 2003, by and among Ferrellgas Receivables,
    L.L.C., as seller, Ferrellgas, L.P., as servicer, Jupiter
    Securitization Corporation, the financial institutions from time
    to time party hereto, and Bank One, NA, main office Chicago, as
    agent. Incorporated by reference to Exhibit 10.8 to our
    Annual Report on Form 10-K filed October 21, 2003.  
|        | 10 | .15         |  | Fifth Amendment to the Receivables Purchase Agreement, dated as
    of September 21, 2004, by and among Ferrellgas Receivables,
    L.L.C., as seller, Ferrellgas, L.P., as servicer, Jupiter
    Securitization Corporation, the financial institutions from time
    to time party hereto, and Bank One, NA, main office Chicago, as
    agent. Incorporated by reference to Exhibit 10.1 to our
    Current Report on Form 8-K filed September 24, 2004. 
|        | 10 | .16         |  | Sixth Amendment to the Receivables Purchase Agreement, dated as
    of June 7, 2005, by and among Ferrellgas Receivables,
    L.L.C., as seller, Ferrellgas, L.P., as servicer, Jupiter
    Securitization Corporation, the financial institutions from time
    to time party hereto, and Bank One, NA, main office Chicago, as
    agent. Incorporated by reference to Exhibit 10.16 to our
    Quarterly Report on Form 10-Q filed June 8, 2005.         
|        | 10 | .21         |  | Agreement and Plan of Merger dated as of February 8, 2004,
    by and among Blue Rhino Corporation, FCI Trading Corp., Diesel
    Acquisition, LLC and Ferrell Companies, Inc. Incorporated by
    reference to Exhibit 99.2 to our Current Report on
    Form 8-K filed February 13, 2004.                                                                                                                                                                 
|        | 10 | .22         |  | First amendment to the Agreement and Plan of Merger, dated as of
    March 16, 2004, by and among Blue Rhino Corporation, FCI
    Trading Corp., Diesel Acquisition, LLC, and Ferrell Companies,
    Inc. Incorporated by reference to Exhibit 99.1 to our
    Current Report on Form 8-K filed April 2, 2004.                                                                                                                                              
|        | 10 | .23         |  | Real Property Contribution Agreement, dated February 8,
    2004, between Ferrellgas Partners, L.P. and Billy D. Prim.
    Incorporated by reference to Exhibit 10.15 to our Quarterly
    Report on Form 10-Q filed June 14, 2004.                                                                                                                                                                                                                         
|        | 10 | .24         |  | Unit Purchase Agreement, dated February 8, 2004, between
    Ferrellgas Partners, L.P. and Billy D. Prim. Incorporated by
    reference to Exhibit 4.5 to our Form S-3 filed
    May 21, 2004.                                                                                                                                                                                                                                                              
|        | 10 | .25         |  | Unit Purchase Agreement dated February 8, 2004, between
    Ferrellgas Partners, L.P. and James E. Ferrell. Incorporated by
    reference to Exhibit 99.3 to our Current Report on
    Form 8-K filed February 12, 2004.                                                                                                                                                                                                                                    

E-3



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##### Table of Contents



|        |     |             |  |                                                                                                                                                                                                                                                                  
|------- | --- | ----------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |     |            
|Number  |     | Description
|        |     |            
|        | #10 | .26         |  | Ferrell Companies, Inc. Supplemental Savings Plan, restated
    January 1, 2000. Incorporated by reference to
    Exhibit 99.1 to our Current Report on Form 8-K filed
    February 18, 2003.                                                                    
|        | #10 | .27         |  | Second Amended and Restated Ferrellgas Unit Option Plan.
    Incorporated by reference to Exhibit 10.1 to our Current
    Report on Form 8-K filed June 5, 2001.                                                                                                 
|        | #10 | .28         |  | Ferrell Companies, Inc. 1998 Incentive Compensation Plan, as
    amended and restated effective October 11, 2004.
    Incorporated by reference to Exhibit 10.23 to our Annual
    Report on Form 10-K filed October 13, 2004.                                   
|        | #10 | .29         |  | Employment agreement between James E. Ferrell and Ferrellgas,
    Inc., dated July 31, 1998. Incorporated by reference to
    Exhibit 10.13 to our Annual Report on Form 10-K filed
    October 29, 1998.                                                        
|        | #10 | .30         |  | Amended and Restated Employment Agreement, dated
    October 11, 2004, by and among Ferrellgas, Inc., Ferrell
    Companies, Inc. and Billy D. Prim. Incorporated by reference to
    Exhibit 10.25 to our Annual Report on Form 10-K filed
    October 13, 2004.
|        | #10 | .31         |  | Arrangement dated June 4, 2003, between Ron M.
    Logan, Jr. and Ferrellgas, Inc. Incorporated by reference
    to Exhibit 10.26 to our Annual Report on Form 10-K
    filed October 13, 2004.                                                                  
|        | #10 | .32         |  | Arrangement dated February 6, 2004, between Timothy E.
    Scronce and Ferrellgas, Inc. Incorporated by reference to
    Exhibit 10.27 to our Annual Report on Form 10-K filed
    October 13, 2004.                                                             
|        | 10  | .33         |  | Asset Purchase Agreement dated as of June 22, 2005 by and
    among Ferrellgas, L.P., Ferrellgas, Inc. and Enterprise Products
    Operating L.P. Incorporated by reference to Exhibit 10.1 to
    our Current Report on Form 8-K filed on June 23, 2005.        
|        | *21 | .1          |  | List of subsidiaries                                                                                                                                                                                                                                             
|        | *23 | .1          |  | Consent of Deloitte & Touche, LLP, independent
    registered public accounting firm, for the certain use of its
    report appearing in the Annual Report on Form 10-K of
    Ferrellgas Partners, L.P. for the year ended July 31, 2005.                       
|        | *23 | .2          |  | Consent of Deloitte & Touche, LLP, independent
    registered public accounting firm, for the certain use of its
    report appearing in the Annual Report on Form 10-K of
    Ferrellgas Partners Finance Corp. for the year ended
    July 31, 2005.           
|        | *23 | .3          |  | Consent of Deloitte & Touche, LLP, independent
    registered public accounting firm, for the certain use of its
    report appearing in the Annual Report on Form 10-K of
    Ferrellgas, L.P. for the year ended July 31, 2005.                                
|        | *23 | .4          |  | Consent of Deloitte & Touche, LLP, independent
    registered public accounting firm, for the certain use of its
    report appearing in the Annual Report on Form 10-K of
    Ferrellgas Finance Corp. for the year ended July 31, 2005.                        
|        | *31 | .1          |  | Certification of Ferrellgas Partners, L.P. pursuant to
    Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act.                                                                                                                                                 
|        | *31 | .2          |  | Certification of Ferrellgas Partners Finance Corp. pursuant to
    Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act.                                                                                                                                         
|        | *31 | .3          |  | Certification of Ferrellgas, L.P. pursuant to
    Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act.                                                                                                                                                          
|        | *31 | .4          |  | Certification of Ferrellgas Finance Corp. pursuant to
    Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act.                                                                                                                                                  
|        | *32 | .1          |  | Certification of Ferrellgas Partners, L.P. pursuant to
    18 U.S.C. Section 1350.                                                                                                                                                                               
|        | *32 | .2          |  | Certification of Ferrellgas Partners Finance Corp. pursuant to
    18 U.S.C. Section 1350.                                                                                                                                                                       
|        | *32 | .3          |  | Certification of Ferrellgas, L.P. pursuant to 18 U.S.C.
    Section 1350.                                                                                                                                                                                        
|        | *32 | .4          |  | Certification of Ferrellgas Finance Corp. pursuant to
    18 U.S.C. Section 1350.                                                                                                                                                                                






|  |               
|- | --------------
|* | Filed herewith



|  |                                            
|- | -------------------------------------------
|# | Management contracts or compensatory plans.

E-4



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##### Table of Contents



SIGNATURES






| |                                      
| | -------------------------------------
| | FERRELLGAS PARTNERS, L.P.            
| | By Ferrellgas, Inc. (General Partner)



| |    |                      
| | -- | ---------------------
| | By | /s/ James. E. Ferrell

| |                                                
| | -----------------------------------------------
| |                                                
| | James E. Ferrell                               
| | Chairman, President and Chief Executive Officer



|                                                 |  |                                                                                                        |  |          |  | 
|------------------------------------------------ |  | ------------------------------------------------------------------------------------------------------ |  | -------- |  | 
|Signature                                        |  | Title                                                                                                  |  | Date    
|                                                 |  |                                                                                                        |  |         
|                                                
|/s/ James. E. FerrellJames
    E. Ferrell        |  | Chairman, President and Chief Executive Officer (Principal
    Executive Officer)                      |  | 10/11/05
|                                                
|/s/ William K. HoskinsWilliam
    K. Hoskins     |  | Director                                                                                               |  | 10/11/05
|                                                
|/s/ A. Andrew LevisonA.
    Andrew Levison       |  | Director                                                                                               |  | 10/11/05
|                                                
|/s/ John R. LowdenJohn
    R. Lowden             |  | Director                                                                                               |  | 10/11/05
|                                                
|/s/ Michael F. MorrisseyMichael
    F. Morrissey |  | Director                                                                                               |  | 10/11/05
|                                                
|/s/ Billy D. PrimBilly
    D. Prim               |  | Director                                                                                               |  | 10/11/05
|                                                
|/s/ Elizabeth T. SolbergElizabeth
    T. Solberg |  | Director                                                                                               |  | 10/11/05
|                                                
|/s/ Kevin T. KellyKevin
    T. Kelly             |  | Senior Vice President and Chief
    Financial Officer (Principal Financial and
    Accounting Officer) |  | 10/11/05



---



##### Table of Contents



SIGNATURES






| |                                  
| | ---------------------------------
| | FERRELLGAS PARTNERS FINANCE CORP.



| |    |                      
| | -- | ---------------------
| | By | /s/ James. E. Ferrell

| |                                      
| | -------------------------------------
| |                                      
| | James E. Ferrell                     
| | President and Chief Executive Officer



|                                          |  |                                                                                                                       |  |          |  | 
|----------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------- |  | -------- |  | 
|Signature                                 |  | Title                                                                                                                 |  | Date    
|                                          |  |                                                                                                                       |  |         
|                                         
|/s/ James. E. FerrellJames
    E. Ferrell |  | President and Chief Executive Officer (Principal Executive
    Officer)                                               |  | 10/11/05
|                                         
|/s/ Kevin T. KellyKevin
    T. Kelly      |  | Senior Vice President, Chief Financial
    Officer and sole director (Principal
    Financial and Accounting Officer) |  | 10/11/05

Supplemental Information to be Furnished With Reports Filed
Pursuant to Section 15(d) of the Act


by Registrants Which Have Not Registered Securities Pursuant
to Section 12 of the Act






---



##### Table of Contents



SIGNATURES






| |                                      
| | -------------------------------------
| | FERRELLGAS, L.P.                     
| | By Ferrellgas, Inc. (General Partner)



| |    |                      
| | -- | ---------------------
| | By | /s/ James. E. Ferrell

| |                                                
| | -----------------------------------------------
| |                                                
| | James E. Ferrell                               
| | Chairman, President and Chief Executive Officer



|                                                 |  |                                                                                                        |  |          |  | 
|------------------------------------------------ |  | ------------------------------------------------------------------------------------------------------ |  | -------- |  | 
|Signature                                        |  | Title                                                                                                  |  | Date    
|                                                 |  |                                                                                                        |  |         
|                                                
|/s/ James. E. FerrellJames
    E. Ferrell        |  | Chairman, President and Chief Executive Officer (Principal
    Executive Officer)                      |  | 10/11/05
|                                                
|/s/ William K. HoskinsWilliam
    K. Hoskins     |  | Director                                                                                               |  | 10/11/05
|                                                
|/s/ A. Andrew LevisonA.
    Andrew Levison       |  | Director                                                                                               |  | 10/11/05
|                                                
|/s/ John R. LowdenJohn
    R. Lowden             |  | Director                                                                                               |  | 10/11/05
|                                                
|/s/ Michael F. MorrisseyMichael
    F. Morrissey |  | Director                                                                                               |  | 10/11/05
|                                                
|/s/ Billy D. PrimBilly
    D. Prim               |  | Director                                                                                               |  | 10/11/05
|                                                
|/s/ Elizabeth T. SolbergElizabeth
    T. Solberg |  | Director                                                                                               |  | 10/11/05
|                                                
|/s/ Kevin T. KellyKevin
    T. Kelly             |  | Senior Vice President and Chief
    Financial Officer (Principal Financial
    and Accounting Officer) |  | 10/11/05



---



##### Table of Contents



SIGNATURES






| |                         
| | ------------------------
| | FERRELLGAS FINANCE CORP.



| |    |                      
| | -- | ---------------------
| | By | /s/ James. E. Ferrell

| |                                      
| | -------------------------------------
| |                                      
| | James E. Ferrell                     
| | President and Chief Executive Officer



|                                          |  |                                                                                                                   |  |          |  | 
|----------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------- |  | -------- |  | 
|Signature                                 |  | Title                                                                                                             |  | Date    
|                                          |  |                                                                                                                   |  |         
|                                         
|/s/ James. E. FerrellJames
    E. Ferrell |  | President and, Chief Executive Officer (Principal Executive
    Officer)                                          |  | 10/11/05
|                                         
|/s/ Kevin T. KellyKevin
    T. Kelly      |  | Senior Vice President, Chief Financial Officer and sole director
    (Principal Financial and Accounting Officer) |  | 10/11/05



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##### Table of Contents



INDEX TO FINANCIAL STATEMENTS


|                                           |                                                                                                                    |      |  |      | 
|------------------------------------------ | ------------------------------------------------------------------------------------------------------------------ | ---- |  | ---- | 
|                                           |                                                                                                                    | Page
|                                           |                                                                                                                    |     
|Ferrellgas Partners, L.P. and Subsidiaries |                                                                                                                    |      |  |     
|                                           | Report of Independent Registered Public
    Accounting Firm                                                        |      |  | F-2  | 
|                                           | Consolidated Balance Sheets 
    July 31, 2005 and 2004                                                           |      |  | F-3  | 
|                                           | Consolidated Statements of
    Earnings  Years ended July 31, 2005, 2004 and
    2003                             |      |  | F-4  | 
|                                           | Consolidated Statements of Partners
    Capital  Years ended July 31, 2005, 2004 and
    2003                    |      |  | F-5  | 
|                                           | Consolidated Statements of Cash
    Flows  Years ended July 31, 2005, 2004 and
    2003                           |      |  | F-6  | 
|                                           | Notes to Consolidated Financial
    Statements                                                                     |      |  | F-7  | 
|                                          
|Ferrellgas Partners Finance Corp.          |                                                                                                                    |      |  |     
|                                           | Report of Independent Registered Public
    Accounting Firm                                                        |      |  | F-38 | 
|                                           | Balance Sheets  July 31,
    2005 and 2004                                                                        |      |  | F-39 | 
|                                           | Statements of Earnings  Years
    ended July 31, 2005, 2004 and 2003                                              |      |  | F-40 | 
|                                           | Statements of Stockholders
    Equity  Years ended July 31, 2005, 2004 and
    2003                              |      |  | F-41 | 
|                                           | Statements of Cash Flows  Years
    ended July 31, 2005, 2004 and 2003                                            |      |  | F-42 | 
|                                           | Notes to Financial Statements                                                                                      |      |  | F-43 | 
|                                          
|Ferrellgas, L.P. and Subsidiaries          |                                                                                                                    |      |  |     
|                                           | Report of Independent Registered Public
    Accounting Firm                                                        |      |  | F-44 | 
|                                           | Consolidated Balance Sheets 
    July 31, 2005 and 2004                                                           |      |  | F-45 | 
|                                           | Consolidated Statements of
    Earnings  Years ended July 31, 2005, 2004 and
    2003                             |      |  | F-46 | 
|                                           | Consolidated Statements of Partners
    Capital  Years ended July 31, 2005, 2004 and
    2003                    |      |  | F-47 | 
|                                           | Consolidated Statements of Cash
    Flows  Years ended July 31, 2005, 2004 and
    2003                           |      |  | F-48 | 
|                                           | Notes to Consolidated Financial
    Statements                                                                     |      |  | F-49 | 
|                                          
|Ferrellgas Finance Corp.                   |                                                                                                                    |      |  |     
|                                           | Report of Independent Registered Public
    Accounting Firm                                                        |      |  | F-73 | 
|                                           | Balance Sheets  July 31,
    2005 and 2004                                                                        |      |  | F-74 | 
|                                           | Statements of Earnings  Year
    ended July 31, 2005, 2004 and from inception until
    July 31, 2003             |      |  | F-75 | 
|                                           | Statements of Stockholders
    Equity  Year ended July 31, 2005, 2004 and from
    inception until July 31, 2003 |      |  | F-76 | 
|                                           | Statements of Cash Flows  Year
    ended July 31, 2005, 2004 and from inception until
    July 31, 2003           |      |  | F-77 | 
|                                           | Notes to Financial Statements                                                                                      |      |  | F-78 | 

F-1



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##### Table of Contents






REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM














Accounting for
Asset Retirement Obligations


Internal Control 
Integrated Framework








F-2



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##### Table of Contents



FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES





CONSOLIDATED BALANCE SHEETS


|                                                   |                                                                                                                                        |                                         |         |         |           |  |           |         |           | 
|-------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------- | ------- | ------- | --------- |  | --------- | ------- | --------- | 
|                                                   |                                                                                                                                        | July 31,                                |        
|                                                   |                                                                                                                                        |                                         |        
|                                                   |                                                                                                                                        | 2005                                    |         |         | 2004      | 
|                                                   |                                                                                                                                        |                                         |         |         |           | 
|                                                   |                                                                                                                                        | (In thousands, except unit              |        
|                                                   |                                                                                                                                        | data)                                   |        
|ASSETS                                            
|Current assets:                                    |                                                                                                                                        |                                         |         |         |           |  |           |        
|                                                   | Cash and cash equivalents                                                                                                              |                                         | $       | 20,505  |           |  | $         | 15,428  |          
|                                                   | Accounts and notes receivable (net of allowance for doubtful
    accounts of $3,764 and $2,523 in 2005 and 2004, respectively)         |                                         |         | 107,778 |           |  |           | 110,389 |          
|                                                   | Inventories                                                                                                                            |                                         |         | 97,743  |           |  |           | 96,359  |          
|                                                   | Prepaid expenses and other current assets                                                                                              |                                         |         | 12,861  |           |  |           | 9,715   |          
|                                                   | Current assets of discontinued operations                                                                                              |                                         |         |        |           |  |           | 11,348  |          
|                                                   |                                                                                                                                        |                                         |         |         |           | 
|                                                   |                                                                                                                                        | Total current assets                    |         |         | 238,887   |  |           |         | 243,239   | 
|Property, plant and equipment, net                 |                                                                                                                                        |                                         | 766,765 |         |           |  | 776,507   |        
|Goodwill                                           |                                                                                                                                        |                                         | 234,142 |         |           |  | 230,604   |        
|Intangible assets, net                             |                                                                                                                                        |                                         | 255,277 |         |           |  | 264,427   |        
|Other assets, net                                  |                                                                                                                                        |                                         | 13,902  |         |           |  | 15,330    |        
|Non-current assets of discontinued operations      |                                                                                                                                        |                                         |        |         |           |  | 48,068    |        
|                                                   |                                                                                                                                        |                                         |         |         |           | 
|                                                   |                                                                                                                                        | Total assets                            |         | $       | 1,508,973 |  |           | $       | 1,578,175 | 
|                                                   |                                                                                                                                        |                                         |         |         |           | 
|                                                  
|LIABILITIES AND PARTNERS CAPITAL                 
|Current liabilities:                               |                                                                                                                                        |                                         |         |         |           |  |           |        
|                                                   | Accounts payable                                                                                                                       |                                         | $       | 108,667 |           |  | $         | 101,737 |          
|                                                   | Short-term borrowings                                                                                                                  |                                         |         | 19,800  |           |  |           |        |          
|                                                   | Other current liabilities                                                                                                              |                                         |         | 71,535  |           |  |           | 88,313  |          
|                                                   | Current liabilities of discontinued operations                                                                                         |                                         |         |        |           |  |           | 7,052   |          
|                                                   |                                                                                                                                        |                                         |         |         |           | 
|                                                   |                                                                                                                                        | Total current liabilities               |         |         | 200,002   |  |           |         | 197,102   | 
|Long-term debt                                     |                                                                                                                                        |                                         | 948,977 |         |           |  | 1,153,652 |        
|Other liabilities                                  |                                                                                                                                        |                                         | 20,165  |         |           |  | 17,052    |        
|Non-current liabilities of discontinued operations |                                                                                                                                        |                                         |        |         |           |  | 3,479     |        
|Contingencies and commitments (Note M)             |                                                                                                                                        |                                         |        |         |           |  |          |        
|Minority interest                                  |                                                                                                                                        |                                         | 6,151   |         |           |  | 4,791     |        
|Partners capital:                                 |                                                                                                                                        |                                         |         |         |           |  |           |        
|                                                   | Senior unitholder (0 and 1,994,146 units outstanding and
    liquidation preference $0 and $79,766 at 2005 and 2004,
    respectively) |                                         |         |        |           |  |           | 79,766  |          
|                                                   | Common unitholders (60,134,054 and 48,772,875 units
    outstanding at 2005 and 2004, respectively)                                    |                                         |         | 390,422 |           |  |           | 178,994 |          
|                                                   | General partner (607,415 and 512,798 units outstanding at
    2005 and 2004, respectively)                                             |                                         |         | (56,132 | )         |  |           | (57,391 | )        
|                                                   | Accumulated other comprehensive income (loss)                                                                                          |                                         |         | (612    | )         |  |           | 730     |          
|                                                   |                                                                                                                                        |                                         |         |         |           | 
|                                                   |                                                                                                                                        | Total partners capital                 |         |         | 333,678   |  |           |         | 202,099   | 
|                                                   |                                                                                                                                        |                                         |         |         |           | 
|                                                   |                                                                                                                                        | Total liabilities and partners capital |         | $       | 1,508,973 |  |           | $       | 1,578,175 | 
|                                                   |                                                                                                                                        |                                         |         |         |           | 



F-3



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##### Table of Contents



FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF EARNINGS


|                                                                                                                                                                                |                                     |                                      |           |           |           |   |         |           |           |   |         |           |           | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------- | ------------------------------------ | --------- | --------- | --------- | - | ------- | --------- | --------- | - | ------- | --------- | --------- | 
|                                                                                                                                                                                |                                     | For the Year Ended July 31,          |          
|                                                                                                                                                                                |                                     |                                      |          
|                                                                                                                                                                                |                                     | 2005                                 |           |           | 2004      |   |         | 2003      |          
|                                                                                                                                                                                |                                     |                                      |           |           |           |   |         |           |          
|                                                                                                                                                                                |                                     | (In thousands, except per unit data) |          
|Revenues:                                                                                                                                                                       |                                     |                                      |           |           |           |   |         |           |           |   |         |          
|                                                                                                                                                                                | Propane and other gas liquids sales |                                      | $         | 1,592,325 |           |   | $       | 1,210,564 |           |   | $       | 1,087,513 |          
|                                                                                                                                                                                | Other                               |                                      |           | 161,789   |           |   |         | 97,822    |           |   |         | 78,165    |          
|                                                                                                                                                                                |                                     |                                      |           |           |           |   |         |           |          
|                                                                                                                                                                                |                                     | Total revenues                       |           |           | 1,754,114 |   |         |           | 1,308,386 |   |         |           | 1,165,678 | 
|Cost of product sold (exclusive of depreciation, shown with
    amortization below)                                                                                             |                                     |                                      | 1,140,298 |           |           |   | 766,404 |           |           |   | 644,853 |          
|                                                                                                                                                                                |                                     |                                      |           |           |           |   |         |           |          
|Gross profit                                                                                                                                                                    |                                     |                                      | 613,816   |           |           |   | 541,982 |           |           |   | 520,825 |          
|Operating expense                                                                                                                                                               |                                     |                                      | 366,192   |           |           |   | 323,260 |           |           |   | 295,665 |          
|Depreciation and amortization expense                                                                                                                                           |                                     |                                      | 83,060    |           |           |   | 56,111  |           |           |   | 39,858  |          
|General and administrative expense                                                                                                                                              |                                     |                                      | 42,342    |           |           |   | 34,532  |           |           |   | 28,024  |          
|Equipment lease expense                                                                                                                                                         |                                     |                                      | 25,495    |           |           |   | 19,652  |           |           |   | 20,622  |          
|Employee stock ownership plan compensation charge                                                                                                                               |                                     |                                      | 12,266    |           |           |   | 7,892   |           |           |   | 6,778   |          
|Loss on disposal of assets and other                                                                                                                                            |                                     |                                      | 8,673     |           |           |   | 7,133   |           |           |   | 6,679   |          
|                                                                                                                                                                                |                                     |                                      |           |           |           |   |         |           |          
|Operating income                                                                                                                                                                |                                     |                                      | 75,788    |           |           |   | 93,402  |           |           |   | 123,199 |          
|Interest expense                                                                                                                                                                |                                     |                                      | (91,518   | )         |           |   | (74,467 | )         |           |   | (63,664 | )        
|Interest income                                                                                                                                                                 |                                     |                                      | 1,894     |           |           |   | 1,582   |           |           |   | 1,291   |          
|Early extinguishment of debt expense                                                                                                                                            |                                     |                                      |          |           |           |   |        |           |           |   | (7,052  | )        
|                                                                                                                                                                                |                                     |                                      |           |           |           |   |         |           |          
|Earnings (loss) before income taxes, minority interest,
    discontinued operations and cumulative effect of change in
    accounting principle                                 |                                     |                                      | (13,836   | )         |           |   | 20,517  |           |           |   | 53,774  |          
|Income tax expense (benefit)                                                                                                                                                    |                                     |                                      | 1,447     |           |           |   | (402    | )         |           |   |        |          
|Minority interest                                                                                                                                                               |                                     |                                      | 92        |           |           |   | 418     |           |           |   | 804     |          
|                                                                                                                                                                                |                                     |                                      |           |           |           |   |         |           |          
|Earnings (loss) from continuing operations before
    discontinued operations and cumulative effect of change in
    accounting principle                                       |                                     |                                      | (15,375   | )         |           |   | 20,501  |           |           |   | 52,970  |          
|Earnings from discontinued operations (including gain on sale in
    2005 of $97,001), net of minority interest of $1,063, $82 and
    $67 in 2005, 2004 and 2003, respectively |                                     |                                      | 104,189   |           |           |   | 8,049   |           |           |   | 6,533   |          
|Cumulative effect of change in accounting principle, net of
    minority interest of $28                                                                                        |                                     |                                      |          |           |           |   |        |           |           |   | (2,754  | )        
|                                                                                                                                                                                |                                     |                                      |           |           |           |   |         |           |          
|Net earnings                                                                                                                                                                    |                                     |                                      | 88,814    |           |           |   | 28,550  |           |           |   | 56,749  |          
|Distributions to senior unitholder                                                                                                                                              |                                     |                                      | 7,305     |           |           |   | 7,977   |           |           |   | 10,771  |          
|Net earnings available to general partner unitholder                                                                                                                            |                                     |                                      | 815       |           |           |   | 206     |           |           |   | 460     |          
|                                                                                                                                                                                |                                     |                                      |           |           |           |   |         |           |          
|Net earnings available to common unitholders                                                                                                                                    |                                     | $                                    | 80,694    |           |           | $ | 20,367  |           |           | $ | 45,518  |          
|                                                                                                                                                                                |                                     |                                      |           |           |           |   |         |           |          
|Basic and diluted earnings per common unit:                                                                                                                                     |                                     |                                      |           |           |           |   |         |           |           |   |         |          
|Earnings (loss) from continuing operations available to common
    unitholders before discontinued operations and cumulative effect
    of change in accounting principle       |                                     | $                                    | (0.41     | )         |           | $ | 0.30    |           |           | $ | 1.15    |          
|Earnings from discontinued operations                                                                                                                                           |                                     |                                      | 1.91      |           |           |   | 0.19    |           |           |   | 0.18    |          
|Cumulative effect of change in accounting principle                                                                                                                             |                                     |                                      |          |           |           |   |        |           |           |   | (0.08   | )        
|                                                                                                                                                                                |                                     |                                      |           |           |           |   |         |           |          
|Net earnings available to common unitholders                                                                                                                                    |                                     | $                                    | 1.50      |           |           | $ | 0.49    |           |           | $ | 1.25    |          
|                                                                                                                                                                                |                                     |                                      |           |           |           |   |         |           |          



F-4



---



##### Table of Contents



FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF PARTNERS CAPITAL


|                                                                                                               |                             |                                             |          |         |             |  |          |            |   |                                 |               |   |   |             |         |          |            |   |          |            |       |   |             |     |   |           |       |   |           |   |    |   |    |   |        |   |     |   |          |        |        |  
|-------------------------------------------------------------------------------------------------------------- | --------------------------- | ------------------------------------------- | -------- | ------- | ----------- |  | -------- | ---------- | - | ------------------------------- | ------------- | - | - | ----------- | ------- | -------- | ---------- | - | -------- | ---------- | ----- | - | ----------- | --- | - | --------- | ----- | - | --------- | - | -- | - | -- | - | ------ | - | --- | - | -------- | ------ | ------ | -
|                                                                                                               |                             |                                             |          |         |             |  |          |            |   | Accumulated Other Comprehensive |               |   |  
|                                                                                                               |                             | Number of Units                             |          |         |             |  |          |            |   |                                 | Income (Loss) |   |   |            
|                                                                                                               |                             |                                             |          |         |             |  |          |            |   |                                 |               |   |   |            
|                                                                                                               |                             |                                             |          | General |             |  |          |            |   |                                 | General       |   |   |             |         | Currency |            |   |          |            | Total |  
|                                                                                                               |                             | Senior                                      |          |         | Common      |  |          | Partner    |   |                                 | Senior        |   |   | Common      |         |          | Partner    |   |          | Risk       |       |   | Translation |     |   | Pension   |       |   | Partners |  
|                                                                                                               |                             | Unitholder                                  |          |         | Unitholders |  |          | Unitholder |   |                                 | Unitholder    |   |   | Unitholders |         |          | Unitholder |   |          | Management |       |   | Adjustments |     |   | Liability |       |   | Capital   |  
|                                                                                                               |                             |                                             |          |         |             |  |          |            |   |                                 |               |   |   |             |         |          |            |   |          |            |       |   |             |     |   |           |       |   |           |  
|                                                                                                               |                             | (In thousands)                              |         
|July 31, 2002                                                                                                  |                             |                                             | 2,782.2  |         |             |  | 36,081.2 |            |   |                                 | 392.6         |   |   | $           | 111,288 |          |            | $ | (28,320  | )          |       | $ | (59,035     | )   |   | $         | (153  | ) |           |   |   |   |    | $ | (2,619 | ) |     | $ | 21,161   |       
|Contribution in connection with ESOP compensation charge                                                       |                             |                                             |         |         |             |  |         |            |   |                                 |              |   |   |             |        |          |            |   | 6,643    |            |       |   | 67          |     |   |           |      |   |           |   |   |   |    |   |       |   |     |   | 6,710    |       
|Common unit distributions                                                                                      |                             |                                             |         |         |             |  |         |            |   |                                 |              |   |   |             |        |          |            |   | (72,322  | )          |       |   | (731        | )   |   |           |      |   |           |   |   |   |    |   |       |   |     |   | (73,053  | )     
|Senior unit distributions                                                                                      |                             |                                             |         |         |             |  |         |            |   |                                 |              |   |   |             |        |          |            |   | (10,665  | )          |       |   | (215        | )   |   |           |      |   |           |   |   |   |    |   |       |   |     |   | (10,880  | )     
|Redemption of senior units                                                                                     |                             |                                             | (788.1   | )       |             |  |         |            |   |                                 | (8.0          | ) |   |             | (31,522 | )        |            |   |         |            |       |   |            |     |   |           |      |   |           |   |   |   |    |   |       |   |     |   | (31,522  | )     
|Common units issued in public offering                                                                         |                             |                                             |         |         |             |  | 1,214.6  |            |   |                                 | 12.3          |   |   |             |        |          |            |   | 26,028   |            |       |   |            |     |   |           |      |   |           |   |   |   |    |   |       |   |     |   | 26,028   |       
|Common unit options exercised                                                                                  |                             |                                             |         |         |             |  | 368.9    |            |   |                                 | 3.7           |   |   |             |        |          |            |   | 6,658    |            |       |   | 67          |     |   |           |      |   |           |   |   |   |    |   |       |   |     |   | 6,725    |       
|Common units issued in connection with acquisitions                                                            |                             |                                             |         |         |             |  | 8.8      |            |   |                                 | 0.1           |   |   |             |        |          |            |   | 195      |            |       |   | 2           |     |   |           |      |   |           |   |   |   |    |   |       |   |     |   | 197      |       
|Comprehensive income:                                                                                          |                             |                                             |          |         |             |  |          |            |   |                                 |               |   |   |             |         |          |            |   |          |            |       |   |             |     |   |           |       |   |           |   |    |   |    |   |        |   |     |   |          |       
|                                                                                                               | Net earnings                |                                             |          |        |             |  |          |           |   |                                 |               |  |   |             |         |         |            |   |          | 56,181     |       |   |             | 568 |   |           |       |  |           |   |    |  |    |   |        |  |     |   |          | 56,749 |       
|                                                                                                               | Other comprehensive income: |                                             |          |         |             |  |          |            |   |                                 |               |   |   |             |         |          |            |   |          |            |       |   |             |     |   |           |       |   |           |   |    |   |    |   |        |   |     |   |          |        |       
|                                                                                                               |                             | Net gains on risk management derivatives    |          |         |            |  |          |            |  |                                 |               |   |  |             |         |          |           |   |          |            |      |   |             |     |  |           |       |   | 1,081     |   |    |   |   |   |        |   |    |   |          |        |        |  
|                                                                                                               |                             | Reclassification of derivatives to earnings |          |         |            |  |          |            |  |                                 |               |   |  |             |         |          |           |   |          |            |      |   |             |     |  |           |       |   | (928      | ) |    |   |   |   |        |   |    |   |          |        |        |  
|                                                                                                               |                             | Pension liability adjustment                |          |         |            |  |          |            |  |                                 |               |   |  |             |         |          |           |   |          |            |      |   |             |     |  |           |       |   |          |   |    |   |   |   |        |   | 651 |   |          |        | 804    |  
|                                                                                                               |                             |                                             |          |         |             |  |          |            |   |                                 |               |   |   |             |         |          |            |   |          |            |       |   |             |     |   |           |       |   |           |  
|Comprehensive income                                                                                           |                             |                                             |          |         |             |  |          |            |   |                                 |               |   |   |             |         |          |            |   |          |            |       |   |             |     |   |           |       |   |           |   |    |   |    |   |        |   |     |   | 57,553   |       
|                                                                                                               |                             |                                             |          |         |             |  |          |            |   |                                 |               |   |   |             |         |          |            |   |          |            |       |   |             |     |   |           |       |   |           |  
|July 31, 2003                                                                                                  |                             |                                             | 1,994.1  |         |             |  | 37,673.5 |            |   |                                 | 400.7         |   |   |             | 79,766  |          |            |   | (15,602  | )          |       |   | (59,277     | )   |   |           |      |   |           |   |   |   |    |   | (1,968 | ) |     |   | 2,919    |       
|Contribution in connection with ESOP compensation charge                                                       |                             |                                             |         |         |             |  |         |            |   |                                 |              |   |   |             |        |          |            |   | 7,734    |            |       |   | 78          |     |   |           |      |   |           |   |   |   |    |   |       |   |     |   | 7,812    |       
|Common unit distributions                                                                                      |                             |                                             |         |         |             |  |         |            |   |                                 |              |   |   |             |        |          |            |   | (82,988  | )          |       |   | (838        | )   |   |           |      |   |           |   |   |   |    |   |       |   |     |   | (83,826  | )     
|Senior unit distributions                                                                                      |                             |                                             |         |         |             |  |         |            |   |                                 |              |   |   |             |        |          |            |   | (7,896   | )          |       |   | (160        | )   |   |           |      |   |           |   |   |   |    |   |       |   |     |   | (8,056   | )     
|Common units issued in public offerings                                                                        |                             |                                             |         |         |             |  | 9,000.0  |            |   |                                 | 90.9          |   |   |             |        |          |            |   | 203,156  |            |       |   | 2,052       |     |   |           |      |   |           |   |   |   |    |   |       |   |     |   | 205,208  |       
|Common units issued in private offerings                                                                       |                             |                                             |         |         |             |  | 1,607.7  |            |   |                                 | 16.2          |   |   |             |        |          |            |   | 35,928   |            |       |   | 363         |     |   |           |      |   |           |   |   |   |    |   |       |   |     |   | 36,291   |       
|Common unit options exercised                                                                                  |                             |                                             |         |         |             |  | 233.9    |            |   |                                 | 2.4           |   |   |             |        |          |            |   | 4,223    |            |       |   | 43          |     |   |           |      |   |           |   |   |   |    |   |       |   |     |   | 4,266    |       
|Common units issued in connection with acquisitions                                                            |                             |                                             |         |         |             |  | 62.1     |            |   |                                 | 0.6           |   |   |             |        |          |            |   | 1,490    |            |       |   | 15          |     |   |           |      |   |           |   |   |   |    |   |       |   |     |   | 1,505    |       
|Common units issued to affiliate in connection with contribution
    of membership interests in Blue Rhino LLC |                             |                                             |         |         |             |  | 195.7    |            |   |                                 | 2.0           |   |   |             |        |          |            |   | 4,685    |            |       |   | 47          |     |   |           |      |   |           |   |   |   |    |   |       |   |     |   | 4,732    |       
|Comprehensive income:                                                                                          |                             |                                             |          |         |             |  |          |            |   |                                 |               |   |   |             |         |          |            |   |          |            |       |   |             |     |   |           |       |   |           |   |    |   |    |   |        |   |     |   |          |       
|                                                                                                               | Net earnings                |                                             |          |        |             |  |          |           |   |                                 |               |  |   |             |         |         |            |   |          | 28,264     |       |   |             | 286 |   |           |       |  |           |   |    |  |    |   |        |  |     |   |          | 28,550 |       
|                                                                                                               | Other comprehensive income: |                                             |          |         |             |  |          |            |   |                                 |               |   |   |             |         |          |            |   |          |            |       |   |             |     |   |           |       |   |           |   |    |   |    |   |        |   |     |   |          |        |       
|                                                                                                               |                             | Net gains on risk management derivatives    |          |         |            |  |          |            |  |                                 |               |   |  |             |         |          |           |   |          |            |      |   |             |     |  |           |       |   | 1,911     |   |    |   |   |   |        |   |    |   |          |        |        |  
|                                                                                                               |                             | Reclassification of derivatives to earnings |          |         |            |  |          |            |  |                                 |               |   |  |             |         |          |           |   |          |            |      |   |             |     |  |           |       |   | (139      | ) |    |   |   |   |        |   |    |   |          |        |        |  
|                                                                                                               |                             | Foreign currency translation adjustments    |          |         |            |  |          |            |  |                                 |               |   |  |             |         |          |           |   |          |            |      |   |             |     |  |           |       |   |          |   |    |   | 16 |   |        |   |    |   |          |        |        |  
|                                                                                                               |                             | Pension liability adjustment                |          |         |            |  |          |            |  |                                 |               |   |  |             |         |          |           |   |          |            |      |   |             |     |  |           |       |   |          |   |    |   |   |   |        |   | 910 |   |          |        | 2,698  |  
|                                                                                                               |                             |                                             |          |         |             |  |          |            |   |                                 |               |   |   |             |         |          |            |   |          |            |       |   |             |     |   |           |       |   |           |  
|Comprehensive income                                                                                           |                             |                                             |          |         |             |  |          |            |   |                                 |               |   |   |             |         |          |            |   |          |            |       |   |             |     |   |           |       |   |           |   |    |   |    |   |        |   |     |   | 31,248   |       
|                                                                                                               |                             |                                             |          |         |             |  |          |            |   |                                 |               |   |   |             |         |          |            |   |          |            |       |   |             |     |   |           |       |   |           |  
|July 31, 2004                                                                                                  |                             |                                             | 1,994.1  |         |             |  | 48,772.9 |            |   |                                 | 512.8         |   |   |             | 79,766  |          |            |   | 178,994  |            |       |   | (57,391     | )   |   |           | 1,772 |   |           |   | 16 |   |    |   | (1,058 | ) |     |   | 202,099  |       
|Contribution in connection with ESOP compensation charge                                                       |                             |                                             |         |         |             |  |         |            |   |                                 |              |   |   |             |        |          |            |   | 12,021   |            |       |   | 121         |     |   |           |      |   |           |   |   |   |    |   |       |   |     |   | 12,142   |       
|Common unit distributions                                                                                      |                             |                                             |         |         |             |  |         |            |   |                                 |              |   |   |             |        |          |            |   | (106,872 | )          |       |   | (1,079      | )   |   |           |      |   |           |   |   |   |    |   |       |   |     |   | (107,951 | )     
|Senior unit distributions                                                                                      |                             |                                             |         |         |             |  | 63.5     |            |   |                                 | 0.6           |   |   |             |        |          |            |   | (5,909   | )          |       |   | (133        | )   |   |           |      |   |           |   |   |   |    |   |       |   |     |   | (6,042   | )     
|Common units issued in public offerings                                                                        |                             |                                             |         |         |             |  | 5,002.0  |            |   |                                 | 50.5          |   |   |             |        |          |            |   | 97,230   |            |       |   | 981         |     |   |           |      |   |           |   |   |   |    |   |       |   |     |   | 98,211   |       
|Common units issued in private offerings                                                                       |                             |                                             |         |         |             |  | 2,098.6  |            |   |                                 | 21.2          |   |   |             |        |          |            |   | 39,800   |            |       |   | 405         |     |   |           |      |   |           |   |   |   |    |   |       |   |     |   | 40,205   |       
|Common unit options exercised                                                                                  |                             |                                             |         |         |             |  | 26.5     |            |   |                                 | 0.3           |   |   |             |        |          |            |   | 472      |            |       |   | 5           |     |   |           |      |   |           |   |   |   |    |   |       |   |     |   | 477      |       
|Common units issued in connection with acquisitions                                                            |                             |                                             |         |         |             |  | 341.2    |            |   |                                 | 3.5           |   |   |             |        |          |            |   | 6,994    |            |       |   | 71          |     |   |           |      |   |           |   |   |   |    |   |       |   |     |   | 7,065    |       
|Conversion of senior units to common units                                                                     |                             |                                             | (1,994.1 | )       |             |  | 3,829.4  |            |   |                                 | 18.5          |   |   |             | (79,766 | )        |            |   | 79,766   |            |       |   |            |     |   |           |      |   |           |   |   |   |    |   |       |   |     |   |         |       
|Comprehensive income:                                                                                          |                             |                                             |          |         |             |  |          |            |   |                                 |               |   |   |             |         |          |            |   |          |            |       |   |             |     |   |           |       |   |           |   |    |   |    |   |        |   |     |   |          |       
|                                                                                                               | Net earnings                |                                             |          |        |             |  |          |           |   |                                 |               |  |   |             |         |         |            |   |          | 87,926     |       |   |             | 888 |   |           |       |  |           |   |    |  |    |   |        |  |     |   |          | 88,814 |       
|                                                                                                               | Other comprehensive income: |                                             |          |         |             |  |          |            |   |                                 |               |   |   |             |         |          |            |   |          |            |       |   |             |     |   |           |       |   |           |   |    |   |    |   |        |   |     |   |          |        |       
|                                                                                                               |                             | Net loss on risk management derivatives     |          |         |            |  |          |            |  |                                 |               |   |  |             |         |          |           |   |          |            |      |   |             |     |  |           |       |   | 70        |   |    |   |   |   |        |   |    |   |          |        |        |  
|                                                                                                               |                             | Reclassification of derivatives to earnings |          |         |            |  |          |            |  |                                 |               |   |  |             |         |          |           |   |          |            |      |   |             |     |  |           |       |   | (1,772    | ) |    |   |   |   |        |   |    |   |          |        |        |  
|                                                                                                               |                             | Foreign currency translation adjustments    |          |         |            |  |          |            |  |                                 |               |   |  |             |         |          |           |   |          |            |      |   |             |     |  |           |       |   |          |   |    |   | 49 |   |        |   |    |   |          |        |        |  
|                                                                                                               |                             | Pension liability adjustment                |          |         |            |  |          |            |  |                                 |               |   |  |             |         |          |           |   |          |            |      |   |             |     |  |           |       |   |          |   |    |   |   |   |        |   | 311 |   |          |        | (1,342 | )
|                                                                                                               |                             |                                             |          |         |             |  |          |            |   |                                 |               |   |   |             |         |          |            |   |          |            |       |   |             |     |   |           |       |   |           |  
|Comprehensive income                                                                                           |                             |                                             |          |         |             |  |          |            |   |                                 |               |   |   |             |         |          |            |   |          |            |       |   |             |     |   |           |       |   |           |   |    |   |    |   |        |   |     |   | 87,472   |       
|                                                                                                               |                             |                                             |          |         |             |  |          |            |   |                                 |               |   |   |             |         |          |            |   |          |            |       |   |             |     |   |           |       |   |           |  
|July 31, 2005                                                                                                  |                             |                                             |         |         |             |  | 60,134.1 |            |   |                                 | 607.4         |   |   | $           |        |          |            | $ | 390,422  |            |       | $ | (56,132     | )   |   | $         | 70    |   |           | $ | 65 |   |    | $ | (747   | ) |     | $ | 333,678  |       
|                                                                                                               |                             |                                             |          |         |             |  |          |            |   |                                 |               |   |   |             |         |          |            |   |          |            |       |   |             |     |   |           |       |   |           |  



F-5



---



##### Table of Contents



FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                                                                                |                                                                                                  |                                           |                                                     |            |        |          |          |          |        |          |          |          |         |          |  
|--------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------ | ----------------------------------------- | --------------------------------------------------- | ---------- | ------ | -------- | -------- | -------- | ------ | -------- | -------- | -------- | ------- | -------- | -
|                                                                                                                |                                                                                                  | For the Year Ended July 31,               |                                                    
|                                                                                                                |                                                                                                  |                                           |                                                    
|                                                                                                                |                                                                                                  | 2005                                      |                                                     |            | 2004   |          |          | 2003     |       
|                                                                                                                |                                                                                                  |                                           |                                                     |            |        |          |          |          |       
|                                                                                                                |                                                                                                  | (In thousands)                            |                                                    
|Cash flows from operating activities:                                                                           |                                                                                                  |                                           |                                                     |            |        |          |          |          |        |          |          |         
|Net earnings                                                                                                    |                                                                                                  | $                                         | 88,814                                              |            |        | $        | 28,550   |          |        | $        | 56,749   |         
|Reconciliation of net earnings to net cash provided by operating
    activities:                                |                                                                                                  |                                           |                                                     |            |        |          |          |          |        |          |          |         
|Cumulative effect of change in accounting principle                                                             |                                                                                                  |                                           |                                                    |            |        |          |         |          |        |          | 2,754    |         
|Early extinguishment of debt expense                                                                            |                                                                                                  |                                           |                                                    |            |        |          |         |          |        |          | 1,854    |         
|Depreciation and amortization expense                                                                           |                                                                                                  |                                           | 84,249                                              |            |        |          | 57,115   |          |        |          | 40,779   |         
|Employee stock ownership plan compensation charge                                                               |                                                                                                  |                                           | 12,266                                              |            |        |          | 7,892    |          |        |          | 6,778    |         
|(Gain) loss on disposal of assets and discontinued operations                                                   |                                                                                                  |                                           | (91,494                                             | )          |        |          | 6,120    |          |        |          | 5,419    |         
|Minority interest                                                                                               |                                                                                                  |                                           | 1,155                                               |            |        |          | 500      |          |        |          | 871      |         
|Other                                                                                                           |                                                                                                  |                                           | 7,661                                               |            |        |          | 8,444    |          |        |          | 6,937    |         
|Changes in operating assets and liabilities, net of effects from
    business acquisitions:                     |                                                                                                  |                                           |                                                     |            |        |          |          |          |        |          |          |         
|                                                                                                                | Accounts and notes receivable, net of securitization                                             |                                           |                                                     | (43,246    | )      |          |          | (24,943  | )      |          |          | (16,308  | )      
|                                                                                                                | Inventories                                                                                      |                                           |                                                     | (2,421     | )      |          |          | (5,264   | )      |          |          | (17,097  | )      
|                                                                                                                | Prepaid expenses and other current assets                                                        |                                           |                                                     | (2,443     | )      |          |          | (224     | )      |          |          | 1,616    |        
|                                                                                                                | Accounts payable                                                                                 |                                           |                                                     | 4,505      |        |          |          | 17,299   |        |          |          | 4,910    |        
|                                                                                                                | Accrued interest expense                                                                         |                                           |                                                     | (4,662     | )      |          |          | 5,427    |        |          |          | 1,181    |        
|                                                                                                                | Other current liabilities                                                                        |                                           |                                                     | (5,074     | )      |          |          | (12,927  | )      |          |          | (1,180   | )      
|                                                                                                                | Other liabilities                                                                                |                                           |                                                     | 323        |        |          |          | 890      |        |          |          | 1,379    |        
|Accounts receivable securitization:                                                                             |                                                                                                  |                                           |                                                     |            |        |          |          |          |        |          |          |         
|                                                                                                                | Proceeds from new accounts receivable securitizations                                            |                                           |                                                     | 114,400    |        |          |          | 30,000   |        |          |          | 60,000   |        
|                                                                                                                | Proceeds from collections reinvested in revolving period
    accounts receivable securitizations |                                           |                                                     | 981,256    |        |          |          | 627,389  |        |          |          | 562,883  |        
|                                                                                                                | Remittances of amounts collected as servicer of accounts
    receivable securitizations          |                                           |                                                     | (1,051,356 | )      |          |          | (669,689 | )      |          |          | (588,883 | )      
|                                                                                                                |                                                                                                  |                                           |                                                     |            |        |          |          |          |       
|                                                                                                                |                                                                                                  | Net cash provided by operating activities |                                                     |            | 93,933 |          |          |          | 76,579 |          |          |          | 130,642 |         
|                                                                                                                |                                                                                                  |                                           |                                                     |            |        |          |          |          |       
|Cash flows from investing activities:                                                                           |                                                                                                  |                                           |                                                     |            |        |          |          |          |        |          |          |         
|Cash paid for assumed merger and related obligations                                                            |                                                                                                  |                                           |                                                    |            |        |          | (343,414 | )        |        |          |         |         
|Business acquisitions, net of cash acquired                                                                     |                                                                                                  |                                           | (23,904                                             | )          |        |          | (40,960  | )        |        |          | (39,138  | )       
|Cash paid for acquisition transaction fees                                                                      |                                                                                                  |                                           |                                                    |            |        |          | (1,476   | )        |        |          |         |         
|Capital expenditures  tank lease buyout                                                                        |                                                                                                  |                                           |                                                    |            |        |          |         |          |        |          | (155,600 | )       
|Capital expenditures  technology initiative                                                                    |                                                                                                  |                                           | (10,466                                             | )          |        |          | (8,688   | )        |        |          | (21,203  | )       
|Capital expenditures  other                                                                                    |                                                                                                  |                                           | (42,348                                             | )          |        |          | (32,692  | )        |        |          | (18,310  | )       
|Proceeds from sale of discontinued operations                                                                   |                                                                                                  |                                           | 144,000                                             |            |        |          |         |          |        |          |         |         
|Proceeds from sale of assets                                                                                    |                                                                                                  |                                           | 11,948                                              |            |        |          | 5,766    |          |        |          | 3,747    |         
|Other                                                                                                           |                                                                                                  |                                           | (4,030                                              | )          |        |          | (4,156   | )        |        |          | (864     | )       
|                                                                                                                |                                                                                                  |                                           |                                                     |            |        |          |          |          |       
|                                                                                                                |                                                                                                  |                                           | Net cash provided by (used in) investing activities |            |        | 75,200   |          |          |        | (425,620 | )        |          |         | (231,368 | )
|                                                                                                                |                                                                                                  |                                           |                                                     |            |        |          |          |          |       
|Cash flows from financing activities:                                                                           |                                                                                                  |                                           |                                                     |            |        |          |          |          |        |          |          |         
|Distributions                                                                                                   |                                                                                                  |                                           | (116,007                                            | )          |        |          | (91,882  | )        |        |          | (84,729  | )       
|Issuance of common units, net of issuance costs of $569, $676
    and $195 in 2005, 2004 and 2003, respectively |                                                                                                  |                                           | 136,824                                             |            |        |          | 236,029  |          |        |          | 26,153   |         
|Proceeds from issuance of debt                                                                                  |                                                                                                  |                                           | 44                                                  |            |        |          | 314,048  |          |        |          | 359,680  |         
|Principal payments on debt                                                                                      |                                                                                                  |                                           | (205,354                                            | )          |        |          | (58,710  | )        |        |          | (176,367 | )       
|Net additions (reductions) to short-term borrowings                                                             |                                                                                                  |                                           | 19,800                                              |            |        |          | (43,719  | )        |        |          |         |         
|Redemption of senior units                                                                                      |                                                                                                  |                                           |                                                    |            |        |          |         |          |        |          | (31,522  | )       
|Cash paid for financing costs                                                                                   |                                                                                                  |                                           | (1,405                                              | )          |        |          | (7,043   | )        |        |          | (7,416   | )       
|Minority interest activity                                                                                      |                                                                                                  |                                           | 60                                                  |            |        |          | (180     | )        |        |          | (1,033   | )       
|Proceeds from exercise of common unit options                                                                   |                                                                                                  |                                           | 472                                                 |            |        |          | 4,223    |          |        |          | 6,725    |         
|Cash contribution from general partner                                                                          |                                                                                                  |                                           | 1,461                                               |            |        |          | 533      |          |        |          | 608      |         
|                                                                                                                |                                                                                                  |                                           |                                                     |            |        |          |          |          |       
|                                                                                                                |                                                                                                  |                                           | Net cash provided by (used in) financing activities |            |        | (164,105 | )        |          |        | 353,299  |          |          |         | 92,099   |  
|                                                                                                                |                                                                                                  |                                           |                                                     |            |        |          |          |          |       
|Effect of exchange rate changes on cash                                                                         |                                                                                                  |                                           | 49                                                  |            |        |          | 16       |          |        |          |         |         
|Increase (decrease) in cash and cash equivalents                                                                |                                                                                                  |                                           | 5,077                                               |            |        |          | 4,274    |          |        |          | (8,627   | )       
|Cash and cash equivalents  beginning of year                                                                   |                                                                                                  |                                           | 15,428                                              |            |        |          | 11,154   |          |        |          | 19,781   |         
|                                                                                                                |                                                                                                  |                                           |                                                     |            |        |          |          |          |       
|Cash and cash equivalents  end of year                                                                         |                                                                                                  | $                                         | 20,505                                              |            |        | $        | 15,428   |          |        | $        | 11,154   |         
|                                                                                                                |                                                                                                  |                                           |                                                     |            |        |          |          |          |       
|Supplemental disclosures of cash flow information:                                                              |                                                                                                  |                                           |                                                     |            |        |          |          |          |        |          |          |         
|Cash paid for:                                                                                                  |                                                                                                  |                                           |                                                     |            |        |          |          |          |        |          |          |         
|Interest                                                                                                        |                                                                                                  | $                                         | 93,298                                              |            |        | $        | 66,240   |          |        | $        | 59,844   |         
|                                                                                                                |                                                                                                  |                                           |                                                     |            |        |          |          |          |       
|Income taxes                                                                                                    |                                                                                                  | $                                         | 1,359                                               |            |        | $        |         |          |        | $        |         |         
|                                                                                                                |                                                                                                  |                                           |                                                     |            |        |          |          |          |       



F-6



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##### Table of Contents



FERRELLGAS PARTNERS, L.P.


AND SUBSIDIARIES





NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


(Dollars in thousands, except per unit data, unless otherwise
designated)




|   |                                       
|-- | --------------------------------------
|A. | Partnership organization and formation













|   |                                           
|-- | ------------------------------------------
|B. | Summary of significant accounting policies

Nature of operations:


F-7



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##### Table of Contents



FERRELLGAS PARTNERS, L.P.


AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






Accounting estimates:


Principles of consolidation:


Cash and cash equivalents and non-cash
activities:


Inventories:


Accounts receivable securitization:


F-8



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##### Table of Contents



FERRELLGAS PARTNERS, L.P.


AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Property, plant and equipment:


Goodwill:


Intangible assets:


(10) Accounting for derivative commodity contracts:


F-9



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##### Table of Contents



FERRELLGAS PARTNERS, L.P.


AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




(11) Asset retirement obligation:


(12) Revenue recognition:


(13) Shipping and handling expenses:


(14) Cost of product sold:


(15) Operating expenses:


(16) Income taxes:


F-10



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##### Table of Contents



FERRELLGAS PARTNERS, L.P.


AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




(17) Net earnings per common unit:


(18) Unit and stock-based compensation:


|                                                                                                                                                                                       |  |                             |        |   |      |   |        |      |  |   |        |  
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------------- | ------ | - | ---- | - | ------ | ---- |  | - | ------ | -
|                                                                                                                                                                                       |  | For the Year Ended July 31, |       
|                                                                                                                                                                                       |  |                             |       
|                                                                                                                                                                                       |  | 2005                        |        |   | 2004 |   |        | 2003 | 
|                                                                                                                                                                                       |  |                             |        |   |      |   |        |      | 
|Net earnings available to common unitholders, as reported                                                                                                                              |  | $                           | 80,694 |   |      | $ | 20,367 |      |  | $ | 45,518 |  
|Deduct: Total stock-based employee compensation expenses
    determined under fair value based method for all awards                                                                   |  |                             | (247   | ) |      |   | (1,110 | )    |  |   | (942   | )
|                                                                                                                                                                                       |  |                             |        |   |      |   |        |      | 
|Pro forma net earnings available to common unitholders                                                                                                                                 |  | $                           | 80,447 |   |      | $ | 19,257 |      |  | $ | 44,576 |  
|                                                                                                                                                                                       |  |                             |        |   |      |   |        |      | 
|Basic and diluted earnings per common unit:                                                                                                                                            |  |                             |        |   |      |   |        |      |  |   |        |  
|Earnings (loss) from continuing operations available to common
    unitholders before discontinued operations and cumulative effect
    of change in accounting principle, as reported |  | $                           | (0.41  | ) |      | $ | 0.30   |      |  | $ | 1.15   |  
|Net earnings available to common unitholders, as reported                                                                                                                              |  |                             | 1.50   |   |      |   | 0.49   |      |  |   | 1.25   |  
|Earnings (loss) from continuing operations available to common
    unitholders before discontinued operations and cumulative effect
    of change in accounting principle, pro forma   |  |                             | (0.42  | ) |      |   | 0.27   |      |  |   | 1.13   |  
|Net earnings available to common unitholders, pro forma                                                                                                                                |  |                             | 1.49   |   |      |   | 0.46   |      |  |   | 1.22   |  



|                               |  |      |             |   |      |  |             |      |  |  |             |  
|------------------------------ |  | ---- | ----------- | - | ---- |  | ----------- | ---- |  |  | ----------- | -
|                               |  | 2005 |             |   | 2004 |  |             | 2003 | 
|                               |  |      |             |   |      |  |             |      | 
|Dividend percentage            |  |      | 1           | % |      |  | 1           | %    |  |  | 1           | %
|Average stock price volatility |  |      | 17.9        | % |      |  | 17.9        | %    |  |  | 18.6        | %
|Risk-free interest rate        |  |      | 4.1         | % |      |  | 3.8         | %    |  |  | 4.0         | %
|Expected life of option plans  |  |      | 5-12  years |   |      |  | 5-12  years |      |  |  | 5-12  years |  

F-11



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##### Table of Contents



FERRELLGAS PARTNERS, L.P.


AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




(19) Segment information:


(20) New accounting standards:


Earnings per
Share,






F-12



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##### Table of Contents



FERRELLGAS PARTNERS, L.P.


AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




(21) Reclassifications:




|   |                      
|-- | ---------------------
|C. | Business combinations







| |   |                                                                                                                                     
| | - | ------------------------------------------------------------------------------------------------------------------------------------
| |  | Kamps Propane, Inc., based in California, acquired August
    2004;                                                                
|
| |  | Suburban Propanes Upper Midwest Retail Operations, based
    in Minnesota, North Dakota and Wisconsin, acquired September
    2004;
|
| |  | Basin Propane, based in Washington, acquired September 2004;                                                                        
|
| |  | Econogas Service, Inc., based in Iowa, acquired September 2004;                                                                     
|
| |  | Land Propane Gas Service, based in Kentucky, acquired September
    2004;                                                           
|
| |  | Parsons Gas & Appliance, Inc., Parsons Gas, Inc., and
    Daves Gas, Inc., based in Kentucky, acquired December
    2004; and      
|
| |  | Commercial Propane Corporation, based in Wisconsin, acquired
    January 2005.                                                      





|                                   |  |   |        |  
|---------------------------------- |  | - | ------ | -
|Customer tanks, buildings and land |  | $ | 12,358 |  
|Non-compete agreements             |  |   | 2,914  |  
|Customer lists                     |  |   | 12,690 |  
|Goodwill                           |  |   | 4,016  |  
|Other assets                       |  |   | 453    |  
|Current liabilities                |  |   | (749   | )
|                                   |  |   |       
|                                   |  | $ | 31,682 |  
|                                   |  |   |       



F-13



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##### Table of Contents



FERRELLGAS PARTNERS, L.P.


AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |   |                                                                                                                        
| | - | -----------------------------------------------------------------------------------------------------------------------
| |  | Chapmans Propane Co., Inc, based in Illinois, acquired
    August 2003;                                               
|
| |  | Buds Propane Service, Inc., based in Oregon, acquired
    September 2003;                                             
|
| |  | Prairie Land Coop, based in Iowa, acquired October 2003;                                                               
|
| |  | Aeropres Propane, Inc., based in Louisiana and Arkansas,
    acquired December 2003;                                   
|
| |  | Suburban Propanes Midwest Retail Operations, based in
    Texas, Oklahoma, Missouri and Kansas, acquired January 2004;
|
| |  | Crows LP Gas Co., based in Iowa, acquired March 2004;                                                                 
|
| |  | Hilltop Supply Company, based in Southern California, acquired
    March 2004;                                         
|
| |  | Blue Ribbon Propane, based in Canada, acquired May 2004                                                                
|
| |  | C. Barron & Sons, Inc., based in Michigan, acquired
    June 2004; and                                                 
|
| |  | Tri-Counties Gas Companies, based in Northern California,
    acquired July 2004.                                      





|                                   |  |   |        |  
|---------------------------------- |  | - | ------ | -
|Customer tanks, buildings and land |  | $ | 24,576 |  
|Non-compete agreements             |  |   | 4,306  |  
|Customer lists                     |  |   | 14,183 |  
|Goodwill                           |  |   | 244    |  
|Other                              |  |   | (16    | )
|                                   |  |   |       
|                                   |  | $ | 43,293 |  
|                                   |  |   |       







| |   |                                                                                   
| | - | ----------------------------------------------------------------------------------
| |  | ProAm, Inc., based primarily in Georgia and Texas, acquired
    December 2002;    
|
| |  | a branch of Cenex Propane Partners Co., based in Iowa, acquired
    November 2002;
|
| |  | Northstar Propane, based in Nevada, acquired November 2002;                       
|
| |  | Pettit Oil Company, Inc., based in Washington, acquired May
    2003; and         
|
| |  | Wheelers Bottled Gas, Inc., based in Ohio, acquired July
    2003.               



F-14



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##### Table of Contents



FERRELLGAS PARTNERS, L.P.


AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                   |  |   |        |  
|---------------------------------- |  | - | ------ | -
|Current assets                     |  | $ | 8,835  |  
|Customer tanks, buildings and land |  |   | 28,451 |  
|Non-compete agreements             |  |   | 1,148  |  
|Customer lists                     |  |   | 11,650 |  
|Current liabilities                |  |   | (930   | )
|                                   |  |   |       
|                                   |  | $ | 49,154 |  
|                                   |  |   |       



Blue Rhino contribution






|                                                                        |  |   |         | 
|----------------------------------------------------------------------- |  | - | ------- | 
|Assumption of obligations under the contribution agreement              |  | $ | 343,414 | 
|Common units and general partner interest issued                        |  |   | 11,850  | 
|Assumption of Blue Rhinos bank credit facility outstanding
    balance |  |   | 43,719  | 
|Assumption of other liabilities and acquisition costs                   |  |   | 19,394  | 
|                                                                        |  |   |        
|                                                                        |  | $ | 418,377 | 
|                                                                        |  |   |        





F-15



---



##### Table of Contents



FERRELLGAS PARTNERS, L.P.


AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










|                                   |  |   |         |  
|---------------------------------- |  | - | ------- | -
|Current assets                     |  | $ | 53,912  |  
|Customer tanks, buildings and land |  |   | 96,160  |  
|Trademarks and tradenames          |  |   | 59,000  |  
|Non-compete agreements             |  |   | 3,300   |  
|Customer lists                     |  |   | 95,500  |  
|Goodwill                           |  |   | 136,408 |  
|Other intangibles                  |  |   | 5,300   |  
|Other assets                       |  |   | 1,375   |  
|Current liabilities                |  |   | (32,578 | )
|                                   |  |   |        
|                                   |  | $ | 418,377 |  
|                                   |  |   |        







F-16



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##### Table of Contents



FERRELLGAS PARTNERS, L.P.


AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Results of operations




|                                                                                                           |  |                             |           |   |      |   |           | 
|---------------------------------------------------------------------------------------------------------- |  | --------------------------- | --------- | - | ---- | - | --------- | 
|                                                                                                           |  | For the Year Ended July 31, |          
|                                                                                                           |  |                             |          
|                                                                                                           |  | 2004                        |           |   | 2003 |  
|                                                                                                           |  |                             |           |   |      |  
|Revenues                                                                                                   |  | $                           | 1,470,529 |   |      | $ | 1,423,900 | 
|Earnings before discontinued operations and cumulative effect of
    change in accounting principle        |  | $                           | 4,935     |   |      | $ | 51,004    | 
|Net earnings                                                                                               |  | $                           | 12,984    |   |      | $ | 54,783    | 
|Basic and diluted net earnings available to common unitholders:                                            |  |                             |           |   |      |   |           | 
|Earnings (loss) before discontinued operations and cumulative
    effect of change in accounting principle |  | $                           | (0.07     | ) |      | $ | 1.10      | 
|Net earnings                                                                                               |  | $                           | 0.12      |   |      | $ | 1.20      | 



|   |                        
|-- | -----------------------
|D. | Discontinued operations



F-17



---



##### Table of Contents



FERRELLGAS PARTNERS, L.P.


AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                    |                                         |                                                                                                                                          |        |        |         |   |        |      |       |   |        |    |       | 
|----------------------------------------------------------------------------------- | --------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------- | ------ | ------ | ------- | - | ------ | ---- | ----- | - | ------ | -- | ----- | 
|                                                                                    |                                         | For the Year Ended July 31,                                                                                                              |       
|                                                                                    |                                         |                                                                                                                                          |       
|                                                                                    |                                         | 2005                                                                                                                                     |        |        | 2004    |   |        | 2003 |      
|                                                                                    |                                         |                                                                                                                                          |        |        |         |   |        |      |      
|Total revenues                                                                      |                                         | $                                                                                                                                        | 89,339 |        |         | $ | 70,995 |      |       | $ | 55,961 |   
|Cost of product sold (exclusive of depreciation, shown with
    amortization below) |                                         |                                                                                                                                          | 77,407 |        |         |   | 59,441 |      |       |   | 46,116 |   
|                                                                                    |                                         |                                                                                                                                          |        |        |         |   |        |      |      
|Gross profit                                                                        |                                         |                                                                                                                                          | 11,932 |        |         |   | 11,554 |      |       |   | 9,845  |   
|Operating expense                                                                   |                                         |                                                                                                                                          | 2,506  |        |         |   | 2,362  |      |       |   | 2,306  |   
|Depreciation and amortization expense                                               |                                         |                                                                                                                                          | 1,189  |        |         |   | 1,004  |      |       |   | 921    |   
|Equipment lease expense                                                             |                                         |                                                                                                                                          | 22     |        |         |   | 22     |      |       |   | 18     |   
|Loss on disposal of assets and other                                                |                                         |                                                                                                                                          | (36    | )      |         |   | 35     |      |       |   |       |   
|                                                                                    |                                         |                                                                                                                                          |        |        |         |   |        |      |      
|                                                                                    |                                         | Earnings before income taxes, minority interest, discontinued
    operations and cumulative effect of change in accounting
    principle |        |        | 8,251   |   |        |      | 8,131 |   |        |    | 6,600 | 
|                                                                                    | Minority interest                       |                                                                                                                                          |        | 1,063  |         |   |        | 82   |       |   |        | 67 |      
|                                                                                    | Gain on sale of discontinued operations |                                                                                                                                          |        | 97,001 |         |   |        |     |       |   |        |   |      
|                                                                                    |                                         |                                                                                                                                          |        |        |         |   |        |      |      
|                                                                                    |                                         | Earnings from discontinued operations                                                                                                    |        | $      | 104,189 |   |        | $    | 8,049 |   |        | $  | 6,533 | 
|                                                                                    |                                         |                                                                                                                                          |        |        |         |   |        |      |      



|                                                    |                                           |                                                      |   |        |        | 
|--------------------------------------------------- | ----------------------------------------- | ---------------------------------------------------- | - | ------ | ------ | 
|                                                    |                                           | July 31,                                             |  
|                                                    |                                           | 2004                                                 |  
|                                                    |                                           |                                                      |  
|Current assets of discontinued operations:          |                                           |                                                      |   |       
|                                                    | Accounts and notes receivable, net        |                                                      | $ | 3,822  |       
|                                                    | Inventories                               |                                                      |   | 7,219  |       
|                                                    | Prepaid expenses and other current assets |                                                      |   | 307    |       
|                                                    |                                           |                                                      |  
|                                                    |                                           | Total current assets of discontinued operations      |   | $      | 11,348 | 
|                                                    |                                           |                                                      |  
|Non-current assets of discontinued operations:      |                                           |                                                      |   |       
|                                                    | Property, plant and equipment, net        |                                                      | $ | 15,929 |       
|                                                    | Goodwill                                  |                                                      |   | 31,164 |       
|                                                    | Intangibles assets, net                   |                                                      |   | 698    |       
|                                                    | Other assets                              |                                                      |   | 277    |       
|                                                    |                                           |                                                      |  
|                                                    |                                           | Total non-current assets of discontinued operations  |   | $      | 48,068 | 
|                                                    |                                           |                                                      |  
|Current liabilities of discontinued operations:     |                                           |                                                      |   |       
|                                                    | Accounts payable                          |                                                      | $ | 2,572  |       
|                                                    | Other current liabilities                 |                                                      |   | 4,480  |       
|                                                    |                                           |                                                      |  
|                                                    |                                           | Total current liabilities of discontinued operations |   | $      | 7,052  | 
|                                                    |                                           |                                                      |  
|Non-current liabilities of discontinued operations: |                                           |                                                      |   |       
|                                                    | Other liabilities                         |                                                      | $ | 3,479  |       
|                                                    |                                           |                                                      |  



F-18



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##### Table of Contents



FERRELLGAS PARTNERS, L.P.


AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                          
|-- | -----------------------------------------
|E. | Quarterly distributions of available cash









|   |                                             
|-- | --------------------------------------------
|F. | Supplemental financial statement information



|                                 |  |      |        |  |      |   |        | 
|-------------------------------- |  | ---- | ------ |  | ---- | - | ------ | 
|                                 |  | 2005 |        |  | 2004 |  
|                                 |  |      |        |  |      |  
|Propane gas and related products |  | $    | 70,380 |  |      | $ | 62,351 | 
|Appliances, parts and supplies   |  |      | 27,363 |  |      |   | 34,008 | 
|                                 |  |      |        |  |      |  
|                                 |  | $    | 97,743 |  |      | $ | 96,359 | 
|                                 |  |      |        |  |      |  



F-19



---



##### Table of Contents



FERRELLGAS PARTNERS, L.P.


AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                       |  |              |            |  |      |   |           |      |  |   |           | 
|-------------------------------------- |  | ------------ | ---------- |  | ---- | - | --------- | ---- |  | - | --------- | 
|                                       |  | Estimated    |            |  |      |   |          
|                                       |  | Useful Lives |            |  | 2005 |   |           | 2004 | 
|                                       |  |              |            |  |      |   |           |      | 
|Land                                   |  |              | indefinite |  |      | $ | 32,619    |      |  | $ | 35,144    | 
|Land improvements                      |  |              | 2-20       |  |      |   | 10,139    |      |  |   | 10,182    | 
|Buildings and improvements             |  |              | 20         |  |      |   | 61,192    |      |  |   | 60,791    | 
|Vehicles, including transport trailers |  |              | 8-20       |  |      |   | 90,215    |      |  |   | 89,385    | 
|Bulk equipment and district facilities |  |              | 5-30       |  |      |   | 96,047    |      |  |   | 85,888    | 
|Tanks and customer equipment           |  |              | 2-30       |  |      |   | 746,364   |      |  |   | 732,319   | 
|Computer and office equipment          |  |              | 2-5        |  |      |   | 104,773   |      |  |   | 88,243    | 
|Construction in progress               |  |              | n/a        |  |      |   | 8,136     |      |  |   | 11,658    | 
|                                       |  |              |            |  |      |   |           |      | 
|                                       |  |              |            |  |      |   | 1,149,485 |      |  |   | 1,113,610 | 
|Less: accumulated depreciation         |  |              |            |  |      |   | 382,720   |      |  |   | 337,103   | 
|                                       |  |              |            |  |      |   |           |      | 
|                                       |  |              |            |  |      | $ | 766,765   |      |  | $ | 776,507   | 
|                                       |  |              |            |  |      |   |           |      | 







|                  |  |      |        |  |      |   |        | 
|----------------- |  | ---- | ------ |  | ---- | - | ------ | 
|                  |  | 2005 |        |  | 2004 |  
|                  |  |      |        |  |      |  
|Accrued interest  |  | $    | 24,328 |  |      | $ | 28,990 | 
|Accrued payroll   |  |      | 13,816 |  |      |   | 16,989 | 
|Accrued insurance |  |      | 8,627  |  |      |   | 6,942  | 
|Note payable      |  |      |       |  |      |   | 1,546  | 
|Other             |  |      | 24,764 |  |      |   | 33,846 | 
|                  |  |      |        |  |      |  
|                  |  | $    | 71,535 |  |      | $ | 88,313 | 
|                  |  |      |        |  |      |  



|                                                                                              |  |                             |        |   |      |   |        |      |  |   |       |  
|--------------------------------------------------------------------------------------------- |  | --------------------------- | ------ | - | ---- | - | ------ | ---- |  | - | ----- | -
|                                                                                              |  | For the Year Ended July 31, |       
|                                                                                              |  |                             |       
|                                                                                              |  | 2005                        |        |   | 2004 |   |        | 2003 | 
|                                                                                              |  |                             |        |   |      |   |        |      | 
|Loss on disposal of assets                                                                    |  | $                           | 5,543  |   |      | $ | 6,085  |      |  | $ | 5,419 |  
|Loss on transfer of accounts receivable related to the accounts
    receivable securitization |  |                             | 5,894  |   |      |   | 2,454  |      |  |   | 2,222 |  
|Service income related to the accounts receivable securitization                              |  |                             | (2,764 | ) |      |   | (1,406 | )    |  |   | (962  | )
|                                                                                              |  |                             |        |   |      |   |        |      | 
|Loss on disposal of assets and other                                                          |  | $                           | 8,673  |   |      | $ | 7,133  |      |  | $ | 6,679 |  
|                                                                                              |  |                             |        |   |      |   |        |      | 

F-20



---



##### Table of Contents



FERRELLGAS PARTNERS, L.P.


AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                      |  |                             |         |  |      |   |         |      |  |   |         | 
|------------------------------------- |  | --------------------------- | ------- |  | ---- | - | ------- | ---- |  | - | ------- | 
|                                      |  | For the Year Ended July 31, |        
|                                      |  |                             |        
|                                      |  | 2005                        |         |  | 2004 |   |         | 2003 | 
|                                      |  |                             |         |  |      |   |         |      | 
|Operating expense                     |  | $                           | 147,942 |  |      | $ | 136,768 |      |  | $ | 126,452 | 
|Depreciation and amortization expense |  |                             | 6,427   |  |      |   | 6,396   |      |  |   | 5,522   | 
|Equipment lease expense               |  |                             | 20,202  |  |      |   | 15,232  |      |  |   | 11,354  | 
|                                      |  |                             |         |  |      |   |         |      | 
|                                      |  | $                           | 174,571 |  |      | $ | 158,396 |      |  | $ | 143,328 | 
|                                      |  |                             |         |  |      |   |         |      | 



|   |                                   
|-- | ----------------------------------
|G. | Accounts receivable securitization





|                                |  |      |        |  |      |   |        | 
|------------------------------- |  | ---- | ------ |  | ---- | - | ------ | 
|                                |  | 2005 |        |  | 2004 |  
|                                |  |      |        |  |      |  
|Retained interest               |  | $    | 15,710 |  |      | $ | 5,153  | 
|Accounts receivable transferred |  | $    | 82,500 |  |      | $ | 27,125 | 





|                                                               |  |                             |       |   |      |   |     |      |  |   |       |  
|-------------------------------------------------------------- |  | --------------------------- | ----- | - | ---- | - | --- | ---- |  | - | ----- | -
|                                                               |  | For the Year Ended July 31, |      
|                                                               |  |                             |      
|                                                               |  | 2005                        |       |   | 2004 |   |     | 2003 | 
|                                                               |  |                             |       |   |      |   |     |      | 
|Net non-cash activity                                          |  | $                           | 1,101 |   |      | $ | 664 |      |  | $ | 1,807 |  
|Bad debt expense                                               |  | $                           | 466   |   |      | $ | 289 |      |  | $ | 324   |  
|Weighted average discount rate used to value retained interest |  |                             | 4.3   | % |      |   | 2.0 | %    |  |   | 1.6   | %
|Average collection cycle days                                  |  |                             | 45    |   |      |   | 45  |      |  |   | 45    |  



F-21



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##### Table of Contents



FERRELLGAS PARTNERS, L.P.


AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                    
|-- | -----------------------------------
|H. | Goodwill and intangible assets, net



|                              |                         |                               |         |         |               |  |          |          |          |          |         |         |             |              |         |         |         |  |          |          |          |   |         |         |         | 
|----------------------------- | ----------------------- | ----------------------------- | ------- | ------- | ------------- |  | -------- | -------- | -------- | -------- | ------- | ------- | ----------- | ------------ | ------- | ------- | ------- |  | -------- | -------- | -------- | - | ------- | ------- | ------- | 
|                              |                         | July 31, 2005                 |         |         | July 31, 2004 | 
|                              |                         |                               |         |         |               | 
|                              |                         | Gross                         |         |         |               |  | Gross    |          |          |         
|                              |                         | Carrying                      |         |         | Accumulated   |  |          |          |          | Carrying |         |         | Accumulated |              |         |        
|                              |                         | Amount                        |         |         | Amortization  |  |          | Net      |          |          | Amount  |         |             | Amortization |         |         | Net     | 
|                              |                         |                               |         |         |               |  |          |          |          |          |         |         |             |              |         |         |         | 
|GOODWILL, NET                 |                         | $                             | 234,142 |         |               |  |         |          |          | $        | 234,142 |         |             | $            | 230,604 |         |         |  |         |          |          | $ | 230,604 |        
|INTANGIBLE ASSETS, NET        |                         |                               |         |         |               |  |          |          |          |          |         |         |             |              |         |         |         |  |          |          |          |   |         |        
|Amortized intangible assets   |                         |                               |         |         |               |  |          |          |          |          |         |         |             |              |         |         |         |  |          |          |          |   |         |        
|                              | Customer lists          |                               | $       | 335,557 |               |  | $        | (155,281 | )        |          | $       | 180,276 |             |              | $       | 324,567 |         |  | $        | (139,679 | )        |   | $       | 184,888 |        
|                              | Non-compete agreements  |                               |         | 34,270  |               |  |          | (21,803  | )        |          |         | 12,467  |             |              |         | 71,697  |         |  |          | (56,468  | )        |   |         | 15,229  |        
|                              | Other                   |                               |         | 5,470   |               |  |          | (2,010   | )        |          |         | 3,460   |             |              |         | 6,289   |         |  |          | (979     | )        |   |         | 5,310   |        
|                              |                         |                               |         |         |               |  |          |          |          |          |         |         |             |              |         |         |         | 
|                              |                         |                               | 375,297 |         |               |  | (179,094 | )        |          |          | 196,203 |         |             |              | 402,553 |         |         |  | (197,126 | )        |          |   | 205,427 |        
|Unamortized intangible assets |                         |                               |         |         |               |  |          |          |          |          |         |         |             |              |         |         |         |  |          |          |          |   |         |        
|                              | Tradenames & trademarks |                               |         | 59,074  |               |  |          |         |          |          |         | 59,074  |             |              |         | 59,000  |         |  |          |         |          |   |         | 59,000  |        
|                              |                         |                               |         |         |               |  |          |          |          |          |         |         |             |              |         |         |         | 
|                              |                         | Total intangibles assets, net |         | $       | 434,371       |  |          | $        | (179,094 | )        |         | $       | 255,277     |              |         | $       | 461,553 |  |          | $        | (197,126 | ) |         | $       | 264,427 | 
|                              |                         |                               |         |         |               |  |          |          |          |          |         |         |             |              |         |         |         | 







| |                                
| | -------------------------------
| | Aggregate amortization expense:

|                            |  |   |        | 
|--------------------------- |  | - | ------ | 
|For the Year Ended July 31, | 
|                            | 
|2005                        |  | $ | 22,987 | 
|2004                        |  |   | 15,893 | 
|2003                        |  |   | 12,539 | 



| |                                
| | -------------------------------
| | Estimated amortization expense:

|                            |  |   |        | 
|--------------------------- |  | - | ------ | 
|For the Year Ended July 31, |  |  
|                            |  |  
|2006                        |  | $ | 21,550 | 
|2007                        |  |   | 20,050 | 
|2008                        |  |   | 18,103 | 
|2009                        |  |   | 17,063 | 
|2010                        |  |   | 16,043 | 

F-22



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##### Table of Contents



FERRELLGAS PARTNERS, L.P.


AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |               
|-- | --------------
|I. | Long-term debt



|                                                                                                                                                                                                        |                                                                                                                    |      |         |         |      |   |           |         | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------ | ---- | ------- | ------- | ---- | - | --------- | ------- | 
|                                                                                                                                                                                                        |                                                                                                                    | 2005 |         |         | 2004 |  
|                                                                                                                                                                                                        |                                                                                                                    |      |         |         |      |  
|Senior notes                                                                                                                                                                                            |                                                                                                                    |      |         |         |      |   |           |        
|                                                                                                                                                                                                        | Fixed rate, Series A, 7.16% due 2005(1)                                                                            |      | $       |        |      |   | $         | 109,000 | 
|                                                                                                                                                                                                        | Fixed rate, Series B-E, 7.16% due 2006-2013(2)                                                                     |      |         | 241,000 |      |   |           | 241,000 | 
|                                                                                                                                                                                                        | Fixed rate, 8.75%, due 2012, net of unamortized premium of
    $2,610 and $2,990 at 2005 and 2004, respectively(3) |      |         | 270,610 |      |   |           | 270,990 | 
|                                                                                                                                                                                                        | Fixed rate, 8.87%, due 2006-2009(4)                                                                                |      |         | 184,000 |      |   |           | 184,000 | 
|                                                                                                                                                                                                        | Fixed rate, 6.75% due 2014, net of unaccreted discount of $791
    and $882 at 2005 and 2004, respectively(5)      |      |         | 249,209 |      |   |           | 249,118 | 
|Credit agreement,variable interest rates, expiring 2010                                                                                                                                                 |                                                                                                                    |      |        |         |      |   | 92,900    |        
|Notes payable,7.2% and 7.3% weighted average interest
    rates in 2005 and 2004, respectively, due 2005 to 2011, net of
    unamortized discount of $747 and $1,304 at 2005 and 2004,
    respectively |                                                                                                                    |      | 6,440   |         |      |   | 9,014     |        
|Capital lease obligations                                                                                                                                                                               |                                                                                                                    |      | 220     |         |      |   | 469       |        
|                                                                                                                                                                                                        |                                                                                                                    |      |         |         |      |  
|                                                                                                                                                                                                        |                                                                                                                    |      | 951,479 |         |      |   | 1,156,491 |        
|                                                                                                                                                                                                        | Less: current portion, included in other current liabilities on
    the consolidated balance sheets                |      |         | 2,502   |      |   |           | 2,839   | 
|                                                                                                                                                                                                        |                                                                                                                    |      |         |         |      |  
|                                                                                                                                                                                                        |                                                                                                                    | $    | 948,977 |         |      | $ | 1,153,652 |        
|                                                                                                                                                                                                        |                                                                                                                    |      |         |         |      |  






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The operating partnership fixed rate senior notes, issued in
    August 1998, are general unsecured obligations of the operating
    partnership and rank on an equal basis in right of payment with
    all senior indebtedness of the operating partnership and are
    senior to all subordinated indebtedness of the operating
    partnership. The outstanding principal amount of
    $109.0 million, due on August 1, 2005, was retired on
    July 29, 2005. Prepayment penalties associated with this
    transaction were not significant.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   
|(2) | The operating partnership fixed rate senior notes, issued in
    August 1998, are general unsecured obligations of the operating
    partnership and rank on an equal basis in right of payment with
    all senior indebtedness of the operating partnership and are
    senior to all subordinated indebtedness of the operating
    partnership. The outstanding principal amount of the
    series B, C, D and E notes are due on August 1, 2006,
    2008, 2010, and 2013, respectively. In general, the operating
    partnership does not have the option to prepay the notes prior
    to maturity without incurring prepayment penalties.                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   
|(3) | On September 24, 2002, Ferrellgas redeemed the Ferrellgas
    Partners fixed rate senior secured notes issued in April 1996,
    with the proceeds from $170.0 million of Ferrellgas
    Partners fixed rate senior notes. Ferrellgas recognized a
    $7.1 million charge to earnings related to the premium and
    other costs incurred to redeem the notes plus the write-off of
    financing costs related to the original issuance of the
    Ferrellgas Partners senior secured notes. On December 18,
    2002, Ferrellgas issued $48.0 million of Ferrellgas
    Partners fixed rate senior notes with a debt premium of
    $1.7 million that will be amortized to interest expense
    through 2012. On June 10, 2004 Ferrellgas issued
    $50.0 million of Ferrellgas Partners fixed rate senior
    secured notes with a debt premium of $1.6 million that will
    be amortized to interest expense through 2012. The Ferrellgas
    Partners senior notes bear interest from the date of issuance,
    payable semi-annually in arrears on June 15 and December 15 of
    each year.
|   
|(4) | The operating partnership fixed rate senior notes, issued in
    February 2000, are general unsecured obligations of the
    operating partnership and rank on an equal basis in right of
    payment with all senior                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

F-23



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##### Table of Contents



FERRELLGAS PARTNERS, L.P.


AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | indebtedness of the operating partnership and are senior to all
    subordinated indebtedness of the operating partnership. The
    outstanding principal amount of the series A, B and C notes
    are due on August 1, 2006, 2007 and 2009, respectively. In
    general, the operating partnership does not have the option to
    prepay the notes prior to maturity without incurring prepayment
    penalties.                                                                                                                                              
|   
|(5) | The operating partnership fixed rate senior notes, issued in
    April 2004 are general unsecured obligations of the operating
    partnership and rank on an equal basis in right of payment with
    all senior indebtedness of the operating partnership and are
    senior to all subordinated indebtedness of the operating
    partnership. The outstanding principal amount is due on
    May 1, 2014. In general, the operating partnership does not
    have the option to prepay the notes prior to maturity without
    incurring prepayment penalties.







| |   |                                                                                                                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the base rate, which is defined as the higher of the federal
    funds rate plus 0.50% or Bank of Americas prime rate (as
    of July 31, 2005, the federal funds rate and Bank of
    Americas prime rate were 3.31% and 6.25%,
    respectively); or
|
| |  | the Eurodollar Rate plus a margin varying from 1.50% to 2.50%
    (as of July 31, 2005, the one-month Eurodollar Rate was
    3.46%).                                                                                                                   







F-24



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##### Table of Contents



FERRELLGAS PARTNERS, L.P.


AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                            |  |                  |         | 
|--------------------------- |  | ---------------- | ------- | 
|                            |  | Scheduled        |        
|                            |  | Annual Principal |        
|For the year ended July 31, |  | Payments         |        
|                            |  |                  |        
|2006                        |  | $                | 2,868   | 
|2007                        |  |                  | 59,880  | 
|2008                        |  |                  | 91,402  | 
|2009                        |  |                  | 52,866  | 
|2010                        |  |                  | 73,191  | 
|Thereafter                  |  |                  | 670,200 | 
|                            |  |                  |        
|Total                       |  | $                | 950,407 | 
|                            |  |                  |        





|   |                  
|-- | -----------------
|J. | Partners capital



|             |  |      |            |  |      |  |            | 
|------------ |  | ---- | ---------- |  | ---- |  | ---------- | 
|             |  | 2005 |            |  | 2004 | 
|             |  |      |            |  |      | 
|Senior units |  |      |           |  |      |  | 1,994,146  | 
|Common units |  |      | 60,134,054 |  |      |  | 48,772,875 | 







F-25



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##### Table of Contents



FERRELLGAS PARTNERS, L.P.


AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




















| |   |                                                               
| | - | --------------------------------------------------------------
| |  | to Mr. Billy D. Prim (Mr. Prim),
    $15.0 million for cash;
|
| |  | to Mr. Prim $3.1 million in exchange for long-term
    assets;

F-26



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##### Table of Contents



FERRELLGAS PARTNERS, L.P.


AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |   |                                                                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | to Mr. Andrew J. Filipowski
    (Mr. Filipowski), brother-in-law of
    Mr. Prim, $15.0 million for cash; prior to the
    contribution of Blue Rhino Mr. Filipowski was the Vice
    Chairman of Blue Rhino Corporation;
|
| |  | to Mr. McQuilkin, the general partners President of
    Direct Imports, $1.0 million for cash; and                                                                                                                        
|
| |  | to Mr. Ferrell, Chairman, President and Chief Executive
    Officer of the general partner, $1.8 million for cash.                                                                                                         















F-27



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##### Table of Contents



FERRELLGAS PARTNERS, L.P.


AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|   |            
|-- | -----------
|K. | Derivatives





|                                                       |  |      |        |   |      |   |       |  
|------------------------------------------------------ |  | ---- | ------ | - | ---- | - | ----- | -
|                                                       |  | 2005 |        |   | 2004 |  
|                                                       |  |      |        |   |      |  
|Fair value adjustment classified as OCI                |  | $    | 70     |   |      | $ | 1,911 |  
|Reclassification of net gains to statement of earnings |  | $    | (1,772 | ) |      | $ | (139  | )





F-28



---



##### Table of Contents



FERRELLGAS PARTNERS, L.P.


AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|                                                                                                                   |  |                             |        |   |      |   |        |      |  |   |        |  
|------------------------------------------------------------------------------------------------------------------ |  | --------------------------- | ------ | - | ---- | - | ------ | ---- |  | - | ------ | -
|                                                                                                                   |  | For the Year Ended July 31, |       
|                                                                                                                   |  |                             |       
|                                                                                                                   |  | 2005                        |        |   | 2004 |   |        | 2003 | 
|                                                                                                                   |  |                             |        |   |      |   |        |      | 
|Net fair value of contracts outstanding at the beginning of the
    period                                         |  | $                           | 424    |   |      | $ | (1,718 | )    |  | $ | (4,569 | )
|Contracts outstanding at the beginning of the period that were
    realized or otherwise settled during the period |  |                             | (9,672 | ) |      |   | 458    |      |  |   | 5,921  |  
|Fair value of new contracts entered into during the period                                                         |  |                             | 9,364  |   |      |   | 1,684  |      |  |   | (3,070 | )
|                                                                                                                   |  |                             |        |   |      |   |        |      | 
|Unrealized gains in fair value of contracts                                                                        |  | $                           | 116    |   |      | $ | 424    |      |  | $ | (1,718 | )
|                                                                                                                   |  |                             |        |   |      |   |        |      | 



|                                                                             |  |                            |     |              |            |   |   | 
|---------------------------------------------------------------------------- |  | -------------------------- | --- | ------------ | ---------- | - | - | 
|                                                                             |  | Fair Value of Contracts at
|                                                                             |  | Period-End                
|                                                                             |  |                           
|                                                                             |  |                            |     | Maturity    
|                                                                             |  |                            |     | Greater Than
|                                                                             |  | Maturity                   |     |              | 1 Year and
|                                                                             |  | Less Than                  |     |              | Less Than 
|Source of Fair Value                                                         |  | 1 Year                     |     |              | 18 Months 
|                                                                             |  |                            |     |              |           
|Prices provided by external sources                                          |  | $                          | 116 |              |            | $ |  | 
|                                                                             |  |                            |     |              |            |  
|Unrealized gains in fair value of contracts outstanding at
    July 31, 2005 |  | $                          | 116 |              |            | $ |  | 
|                                                                             |  |                            |     |              |            |  
|Prices actively quoted                                                       |  | $                          | 151 |              |            | $ |  | 
|Prices provided by external sources                                          |  |                            | 273 |              |            |   |  | 
|                                                                             |  |                            |     |              |            |  
|Unrealized gains in fair value of contracts outstanding at
    July 31, 2004 |  | $                          | 424 |              |            | $ |  | 
|                                                                             |  |                            |     |              |            |  



|                                 |  |  |        | 
|-------------------------------- |  |  | ------ | 
|(In thousands)                   |  | 
|                                 |  | 
|For the year ended July 31, 2005 |  |  | 10,717 | 
|For the year ended July 31, 2004 |  |  | 18,206 | 
|For the year ended July 31, 2003 |  |  | 13,805 | 

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##### Table of Contents



FERRELLGAS PARTNERS, L.P.


AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|   |                                  
|-- | ---------------------------------
|L. | Transactions with related parties



| |                                    
| | -----------------------------------
| | General and administrative expenses



|                   |  |                             |         |  |      |   |         |      |  |   |         | 
|------------------ |  | --------------------------- | ------- |  | ---- | - | ------- | ---- |  | - | ------- | 
|                   |  | For the Year Ended July 31, |        
|                   |  |                             |        
|                   |  | 2005                        |         |  | 2004 |   |         | 2003 | 
|                   |  |                             |         |  |      |   |         |      | 
|Reimbursable costs |  | $                           | 231,635 |  |      | $ | 211,502 |      |  | $ | 201,333 | 



| |                          
| | -------------------------
| | Partnership distributions







|                    |  |                    |        |  |      |   |        | 
|------------------- |  | ------------------ | ------ |  | ---- | - | ------ | 
|                    |  | For the Year Ended |       
|                    |  | July 31,           |       
|                    |  |                    |       
|                    |  | 2005               |        |  | 2004 |  
|                    |  |                    |        |  |      |  
|Ferrell Companies   |  | $                  | 35,608 |  |      | $ | 35,608 | 
|FCI Trading         |  |                    | 391    |  |      |   | 98     | 
|Ferrell Propane     |  |                    | 102    |  |      |   | 102    | 
|The general partner |  |                    | 1,080  |  |      |   | 838    | 





F-30



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##### Table of Contents



FERRELLGAS PARTNERS, L.P.


AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |           
| | ----------
| | Operations



|                                            |  |                             |        |   |      |   |     |      |  |   |      |  
|------------------------------------------- |  | --------------------------- | ------ | - | ---- | - | --- | ---- |  | - | ---- | -
|                                            |  | For the Year Ended July 31, |       
|                                            |  |                             |       
|                                            |  | 2005                        |        |   | 2004 |   |     | 2003 | 
|                                            |  |                             |        |   |      |   |     |      | 
|Net receipts (disbursements)                |  | $                           | (2,699 | ) |      | $ | 328 |      |  | $ | (245 | )
|Receipts from providing accounting services |  |                             | 40     |   |      |   | 40  |      |  |   | 40   |  







|   |                              
|-- | -----------------------------
|M. | Contingencies and commitments



| |           
| | ----------
| | Litigation





| |                                   
| | ----------------------------------
| | Long-term debt-related commitments





| |                                        
| | ---------------------------------------
| | Operating lease commitments and buyouts





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FERRELLGAS PARTNERS, L.P.


AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|                            |  |                                                         |        |  |      |   |        |      |  |   |        |  |  |      |        |  |            |   |        |  |  |   |        | 
|--------------------------- |  | ------------------------------------------------------- | ------ |  | ---- | - | ------ | ---- |  | - | ------ |  |  | ---- | ------ |  | ---------- | - | ------ |  |  | - | ------ | 
|                            |  | Future Minimum Rental and Buyout Amounts by Fiscal Year |       
|                            |  |                                                         |       
|                            |  | 2006                                                    |        |  | 2007 |   |        | 2008 |  |   | 2009   |  |  | 2010 |        |  | Thereafter |  
|                            |  |                                                         |        |  |      |   |        |      |  |   |        |  |  |      |        |  |            |  
|Operating lease obligations |  | $                                                       | 32,630 |  |      | $ | 27,365 |      |  | $ | 22,310 |  |  | $    | 15,687 |  |            | $ | 10,151 |  |  | $ | 19,383 | 
|Operating lease buyouts     |  | $                                                       | 4,857  |  |      | $ | 7,395  |      |  | $ | 2,610  |  |  | $    | 6,261  |  |            | $ | 2,105  |  |  | $ | 6,114  | 
|Capital lease obligations   |  | $                                                       | 147    |  |      | $ | 33     |      |  | $ | 27     |  |  | $    | 30     |  |            | $ |       |  |  | $ |       | 





|   |                  
|-- | -----------------
|N. | Employee benefits







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FERRELLGAS PARTNERS, L.P.


AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|   |                                                                               
|-- | ------------------------------------------------------------------------------
|O. | Unit options of Ferrellgas Partners and stock options of
    Ferrell Companies



|                                   |  |           |           |   |                  |  |       | 
|---------------------------------- |  | --------- | --------- | - | ---------------- |  | ----- | 
|                                   |  | Number of |           |   | Weighted Average | 
|                                   |  | Units     |           |   | Exercise Price   | 
|                                   |  |           |           |   |                  | 
|Outstanding, August 1, 2002        |  |           | 1,075,400 |   |                  |  | 18.15 | 
|Exercised                          |  |           | (368,900  | ) |                  |  | 18.05 | 
|Forfeited                          |  |           | (2,400    | ) |                  |  | 18.80 | 
|                                   |  |           |           |   |                  | 
|Outstanding, July 31, 2003         |  |           | 704,100   |   |                  |  | 18.20 | 
|Exercised                          |  |           | (233,924  | ) |                  |  | 18.08 | 
|Forfeited                          |  |           |          |   |                  |  |      | 
|                                   |  |           |           |   |                  | 
|Outstanding, July 31, 2004         |  |           | 470,176   |   |                  |  | 18.26 | 
|Exercised                          |  |           | (26,450   | ) |                  |  | 17.91 | 
|Forfeited                          |  |           | (99,050   | ) |                  |  | 17.28 | 
|                                   |  |           |           |   |                  | 
|Outstanding, July 31, 2005         |  |           | 344,676   |   |                  |  | 18.52 | 
|                                   |  |           |           |   |                  | 
|Options exercisable, July 31, 2005 |  |           | 313,526   |   |                  |  | 18.38 | 
|                                   |  |           |           |   |                  | 
|Options exercisable, July 31, 2004 |  |           | 245,776   |   |                  |  | 18.52 | 
|                                   |  |           |           |   |                  | 
|Options exercisable, July 31, 2003 |  |           | 364,300   |   |                  |  | 18.43 | 
|                                   |  |           |           |   |                  | 

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FERRELLGAS PARTNERS, L.P.


AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                               |  |                |              | 
|---------------------------------------------- |  | -------------- | ------------ | 
|                                               |  | Options        |             
|                                               |  | Outstanding at |             
|                                               |  | July 31, 2005  |             
|                                               |  |                |             
|Range of option exercise prices at end of year |  | $              | 16.80-$21.67 | 
|Weighted average remaining contractual life    |  |                | 4.5 Years    | 





|   |                         
|-- | ------------------------
|P. | Earnings per common unit







F-34



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##### Table of Contents



FERRELLGAS PARTNERS, L.P.


AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                                                                                                                                                                                   |  |                             |          |   |      |   |          |      |  |   |          |  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | --------------------------- | -------- | - | ---- | - | -------- | ---- |  | - | -------- | -
|                                                                                                                                                                                                                   |  | For the Year Ended July 31, |         
|                                                                                                                                                                                                                   |  |                             |         
|                                                                                                                                                                                                                   |  | 2005                        |          |   | 2004 |   |          | 2003 | 
|                                                                                                                                                                                                                   |  |                             |          |   |      |   |          |      | 
|Net earnings (loss) available to common unitholders before
    discontinued operations and cumulative effect of change in
    accounting principle                                                                 |  | $                           | (22,453  | ) |      | $ | 12,399   |      |  | $ | 41,777   |  
|Earnings from discontinued operations (including gain on sale in
    2005 of $97,001), net of minority interest and general partner
    interest of $2,105, $163 and $133 in 2005, 2004 and 2003,
    respectively |  |                             | 103,147  |   |      |   | 7,968    |      |  |   | 6,467    |  
|Cumulative effect of change in accounting principle, net of
    minority interest and general partner interest of $56                                                                                              |  |                             |         |   |      |   |         |      |  |   | (2,726   | )
|                                                                                                                                                                                                                   |  |                             |          |   |      |   |          |      | 
|Net earnings available to common unitholders                                                                                                                                                                       |  | $                           | 80,694   |   |      | $ | 20,367   |      |  | $ | 45,518   |  
|                                                                                                                                                                                                                   |  |                             |          |   |      |   |          |      | 
|Weighted average common units outstanding (in thousands)                                                                                                                                                           |  |                             | 53,945.4 |   |      |   | 41,419.2 |      |  |   | 36,300.5 |  
|Basic and diluted earnings per common unit:                                                                                                                                                                        |  |                             |          |   |      |   |          |      |  |   |          |  
|Net earnings (loss) available to common unitholders before
    discontinued operations and cumulative change in accounting
    principle                                                                           |  | $                           | (0.41    | ) |      | $ | 0.30     |      |  | $ | 1.15     |  
|Earnings from discontinued operations (including gain sale in
    2005 of $97,001), net of minority interest and general partner
    interest of $2,105, $163 and $133 in 2005, 2004 and 2003,
    respectively    |  |                             | 1.91     |   |      |   | 0.19     |      |  |   | 0.18     |  
|Cumulative effect of change in accounting principle, net of
    minority interest and general partner interest of $56                                                                                              |  |                             |         |   |      |   |         |      |  |   | (0.08    | )
|                                                                                                                                                                                                                   |  |                             |          |   |      |   |          |      | 
|Net earnings available to common unitholders                                                                                                                                                                       |  | $                           | 1.50     |   |      | $ | 0.49     |      |  | $ | 1.25     |  
|                                                                                                                                                                                                                   |  |                             |          |   |      |   |          |      | 

F-35



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##### Table of Contents



FERRELLGAS PARTNERS, L.P.


AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                           
|-- | --------------------------
|Q. | Quarterly data (unaudited)





| |                                 
| | --------------------------------
| | For the year ended July 31, 2005

|                                                                              |                                                              |         |         |       |         |   |         |         |  |   |         |      |  |   |         |       |  
|----------------------------------------------------------------------------- | ------------------------------------------------------------ | ------- | ------- | ----- | ------- | - | ------- | ------- |  | - | ------- | ---- |  | - | ------- | ----- | -
|                                                                              |                                                              | First   |         |       | Second  |   |         | Third   |  |   | Fourth  |     
|                                                                              |                                                              | Quarter |         |       | Quarter |   |         | Quarter |  |   | Quarter |     
|                                                                              |                                                              |         |         |       |         |   |         |         |  |   |         |     
|Revenues                                                                      |                                                              | $       | 343,772 |       |         | $ | 621,891 |         |  | $ | 492,101 |      |  | $ | 296,350 |      
|Gross profit (exclusive of depreciation, shown with amortization)             |                                                              |         | 112,540 |       |         |   | 217,267 |         |  |   | 177,750 |      |  |   | 106,259 |      
|Earnings (loss) from continuing operations before discontinued
    operations |                                                              |         | (36,774 | )     |         |   | 53,522  |         |  |   | 18,267  |      |  |   | (50,390 | )    
|Earnings from discontinued operations net of minority interest                |                                                              |         | 1,785   |       |         |   | 3,596   |         |  |   | 1,781   |      |  |   | 97,027  |      
|Net earnings (loss)                                                           |                                                              |         | (34,989 | )     |         |   | 57,118  |         |  |   | 20,048  |      |  |   | 46,637  |      
|Net earnings (loss) available to common unitholders                           |                                                              |         | (36,613 | )     |         |   | 47,529  |         |  |   | 17,873  |      |  |   | 42,168  |      
|Basic earnings (loss) per common unit:                                        |                                                              |         |         |       |         |   |         |         |  |   |         |      |  |   |         |      
|                                                                              | From continuing operations available to common unitholders   |         | $       | (0.74 | )       |   | $       | 0.81    |  |   | $       | 0.30 |  |   | $       | (0.91 | )
|From discontinued operations available to common unitholders                  |                                                              |         | 0.03    |       |         |   | 0.07    |         |  |   | 0.03    |      |  |   | 1.66    |      
|                                                                              |                                                              |         |         |       |         |   |         |         |  |   |         |     
|Basic earnings (loss) per common unit available to common
    unitholders     |                                                              | $       | (0.71   | )     |         | $ | 0.88    |         |  | $ | 0.33    |      |  | $ | 0.75    |      
|                                                                              |                                                              |         |         |       |         |   |         |         |  |   |         |     
|Diluted earnings (loss) per common unit:                                      |                                                              |         |         |       |         |   |         |         |  |   |         |      |  |   |         |      
|                                                                              | From continuing operations available to common unitholders   |         | $       | (0.74 | )       |   | $       | 0.81    |  |   | $       | 0.30 |  |   | $       | (0.91 | )
|                                                                              | From discontinued operations available to common unitholders |         |         | 0.03  |         |   |         | 0.07    |  |   |         | 0.03 |  |   |         | 1.66  |  
|                                                                              |                                                              |         |         |       |         |   |         |         |  |   |         |     
|Diluted earnings (loss) per common unit available to common
    unitholders   |                                                              | $       | (0.71   | )     |         | $ | 0.88    |         |  | $ | 0.33    |      |  | $ | 0.75    |      
|                                                                              |                                                              |         |         |       |         |   |         |         |  |   |         |     

F-36



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##### Table of Contents



FERRELLGAS PARTNERS, L.P.


AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                 
| | --------------------------------
| | For the year ended July 31, 2004

|                                                                              |                                                              |         |         |       |         |   |         |         |  |   |         |      |  |   |         |       |  
|----------------------------------------------------------------------------- | ------------------------------------------------------------ | ------- | ------- | ----- | ------- | - | ------- | ------- |  | - | ------- | ---- |  | - | ------- | ----- | -
|                                                                              |                                                              | First   |         |       | Second  |   |         | Third   |  |   | Fourth  |     
|                                                                              |                                                              | Quarter |         |       | Quarter |   |         | Quarter |  |   | Quarter |     
|                                                                              |                                                              |         |         |       |         |   |         |         |  |   |         |     
|Revenues                                                                      |                                                              | $       | 241,489 |       |         | $ | 453,337 |         |  | $ | 370,008 |      |  | $ | 243,552 |      
|Gross profit (exclusive of depreciation, shown with amortization)             |                                                              |         | 93,937  |       |         |   | 189,842 |         |  |   | 153,947 |      |  |   | 104,256 |      
|Earnings (loss) from continuing operations before discontinued
    operations |                                                              |         | (20,077 | )     |         |   | 62,889  |         |  |   | 26,875  |      |  |   | (49,186 | )    
|Earnings from discontinued operations, net of minority interest               |                                                              |         | 1,431   |       |         |   | 4,166   |         |  |   | 1,037   |      |  |   | 1,415   |      
|Net earnings (loss)                                                           |                                                              |         | (18,646 | )     |         |   | 67,055  |         |  |   | 27,912  |      |  |   | (47,771 | )    
|Net earnings (loss) available to common unitholders                           |                                                              |         | (20,434 | )     |         |   | 48,348  |         |  |   | 25,659  |      |  |   | (49,269 | )    
|Basic earnings (loss) per common unit:                                        |                                                              |         |         |       |         |   |         |         |  |   |         |      |  |   |         |      
|From continuing operations available to common unitholders                    |                                                              | $       | (0.58   | )     |         | $ | 1.13    |         |  | $ | 0.60    |      |  | $ | (1.04   | )    
|From discontinued operations available to common unitholders                  |                                                              |         | 0.04    |       |         |   | 0.11    |         |  |   | 0.03    |      |  |   | 0.03    |      
|                                                                              |                                                              |         |         |       |         |   |         |         |  |   |         |     
|Basic earnings (loss) per common unit available to common
    unitholders     |                                                              | $       | (0.54   | )     |         | $ | 1.24    |         |  | $ | 0.63    |      |  | $ | (1.01   | )    
|                                                                              |                                                              |         |         |       |         |   |         |         |  |   |         |     
|Diluted earnings (loss) per common unit:                                      |                                                              |         |         |       |         |   |         |         |  |   |         |      |  |   |         |      
|                                                                              | From continuing operations available to common unitholders   |         | $       | (0.58 | )       |   | $       | 1.12    |  |   | $       | 0.60 |  |   | $       | (1.04 | )
|                                                                              | From discontinued operations available to common unitholders |         |         | 0.04  |         |   |         | 0.11    |  |   |         | 0.03 |  |   |         | 0.03  |  
|                                                                              |                                                              |         |         |       |         |   |         |         |  |   |         |     
|Diluted earnings (loss) per common unit available to common
    unitholders   |                                                              | $       | (0.54   | )     |         | $ | 1.23    |         |  | $ | 0.63    |      |  | $ | (1.01   | )    
|                                                                              |                                                              |         |         |       |         |   |         |         |  |   |         |     

F-37



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##### Table of Contents






REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM




















F-38



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##### Table of Contents



FERRELLGAS PARTNERS FINANCE CORP.


(a wholly-owned subsidiary of Ferrellgas Partners, L.P.)





BALANCE SHEETS


|                                                                                                |  |          |        |   |      |   |        |  
|----------------------------------------------------------------------------------------------- |  | -------- | ------ | - | ---- | - | ------ | -
|                                                                                                |  | July 31, |       
|                                                                                                |  |          |       
|                                                                                                |  | 2005     |        |   | 2004 |  
|                                                                                                |  |          |        |   |      |  
|ASSETS                                                                                         
|Cash                                                                                            |  | $        | 1,000  |   |      | $ | 1,000  |  
|                                                                                                |  |          |        |   |      |  
|Total assets                                                                                    |  | $        | 1,000  |   |      | $ | 1,000  |  
|                                                                                                |  |          |        |   |      |  
|                                                                                               
|STOCKHOLDERS EQUITY                                                                           
|                                                                                               
|Common stock, $1.00 par value; 2,000 shares
    authorized; 1,000 shares issued and outstanding |  | $        | 1,000  |   |      | $ | 1,000  |  
|Additional paid in capital                                                                      |  |          | 3,282  |   |      |   | 2,866  |  
|Accumulated deficit                                                                             |  |          | (3,282 | ) |      |   | (2,866 | )
|                                                                                                |  |          |        |   |      |  
|Total stockholders equity                                                                      |  | $        | 1,000  |   |      | $ | 1,000  |  
|                                                                                                |  |          |        |   |      |  



F-39



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##### Table of Contents



FERRELLGAS PARTNERS FINANCE CORP.


(a wholly-owned subsidiary of Ferrellgas Partners, L.P.)





STATEMENTS OF EARNINGS


|                                   |  |                    |      |   |      |   |      |      |  |   |      |  
|---------------------------------- |  | ------------------ | ---- | - | ---- | - | ---- | ---- |  | - | ---- | -
|                                   |  | For the Year Ended |     
|                                   |  |                    |     
|                                   |  | 2005               |      |   | 2004 |   |      | 2003 | 
|                                   |  |                    |      |   |      |   |      |      | 
|Revenues                           |  | $                  |     |   |      | $ |     |      |  | $ |     |  
|General and administrative expense |  |                    | 416  |   |      |   | 403  |      |  |   | 402  |  
|                                   |  |                    |      |   |      |   |      |      | 
|Net loss                           |  | $                  | (416 | ) |      | $ | (403 | )    |  | $ | (402 | )
|                                   |  |                    |      |   |      |   |      |      | 



F-40



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##### Table of Contents



FERRELLGAS PARTNERS FINANCE CORP.


(a wholly-owned subsidiary of Ferrellgas Partners, L.P.)





STATEMENTS OF STOCKHOLDERS EQUITY


|                     |  |              |       |  |            |   |       |         |  |   |               |  |  |        |        |   |  |   |       |  
|-------------------- |  | ------------ | ----- |  | ---------- | - | ----- | ------- |  | - | ------------- |  |  | ------ | ------ | - |  | - | ----- | -
|                     |  | Common Stock |       |  | Additional |   |       | Accum-  |  |   | Total         | 
|                     |  |              |       |  | Paid in    |   |       | ulated  |  |   | Stockholders | 
|                     |  | Shares       |       |  | Dollars    |   |       | Capital |  |   | Deficit       |  |  | Equity |       
|                     |  |              |       |  |            |   |       |         |  |   |               |  |  |        |       
|August 1, 2002       |  |              | 1,000 |  |            | $ | 1,000 |         |  | $ | 2,061         |  |  | $      | (2,061 | ) |  | $ | 1,000 |  
|Capital contribution |  |              |      |  |            |   |      |         |  |   | 402           |  |  |        |       |   |  |   | 402   |  
|Net loss             |  |              |      |  |            |   |      |         |  |   |              |  |  |        | (402   | ) |  |   | (402  | )
|                     |  |              |       |  |            |   |       |         |  |   |               |  |  |        |       
|July 31, 2003        |  |              | 1,000 |  |            |   | 1,000 |         |  |   | 2,463         |  |  |        | (2,463 | ) |  |   | 1,000 |  
|Capital contribution |  |              |      |  |            |   |      |         |  |   | 403           |  |  |        |       |   |  |   | 403   |  
|Net loss             |  |              |      |  |            |   |      |         |  |   |              |  |  |        | (403   | ) |  |   | (403  | )
|                     |  |              |       |  |            |   |       |         |  |   |               |  |  |        |       
|July 31, 2004        |  |              | 1,000 |  |            |   | 1,000 |         |  |   | 2,866         |  |  |        | (2,866 | ) |  |   | 1,000 |  
|Capital contribution |  |              |      |  |            |   |      |         |  |   | 416           |  |  |        |       |   |  |   | 416   |  
|Net loss             |  |              |      |  |            |   |      |         |  |   |              |  |  |        | (416   | ) |  |   | (416  | )
|                     |  |              |       |  |            |   |       |         |  |   |               |  |  |        |       
|July 31, 2005        |  |              | 1,000 |  |            | $ | 1,000 |         |  | $ | 3,282         |  |  | $      | (3,282 | ) |  | $ | 1,000 |  
|                     |  |              |       |  |            |   |       |         |  |   |               |  |  |        |       



F-41



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##### Table of Contents



FERRELLGAS PARTNERS FINANCE CORP.


(a wholly-owned subsidiary of Ferrellgas Partners, L.P.)





STATEMENTS OF CASH FLOWS


|                                      |                      |                                       |       |      |      |   |       |      |      |   |       |      |      |  
|------------------------------------- | -------------------- | ------------------------------------- | ----- | ---- | ---- | - | ----- | ---- | ---- | - | ----- | ---- | ---- | -
|                                      |                      | For the Year Ended                    |      
|                                      |                      | July 31,                              |      
|                                      |                      |                                       |      
|                                      |                      | 2005                                  |       |      | 2004 |   |       | 2003 |     
|                                      |                      |                                       |       |      |      |   |       |      |     
|Cash flows from operating activities: |                      |                                       |       |      |      |   |       |      |      |   |       |     
|                                      | Net loss             |                                       | $     | (416 | )    |   | $     | (403 | )    |   | $     | (402 | )   
|                                      |                      |                                       |       |      |      |   |       |      |     
|                                      |                      | Cash used by operating activities     |       |      | (416 | ) |       |      | (403 | ) |       |      | (402 | )
|Cash flows from financing activities: |                      |                                       |       |      |      |   |       |      |      |   |       |     
|                                      | Capital contribution |                                       |       | 416  |      |   |       | 403  |      |   |       | 402  |     
|                                      |                      |                                       |       |      |      |   |       |      |     
|                                      |                      | Cash provided by financing activities |       |      | 416  |   |       |      | 403  |   |       |      | 402  |  
|                                      |                      |                                       |       |      |      |   |       |      |     
|Change in cash                        |                      |                                       |      |      |      |   |      |      |      |   |      |     
|Cash  beginning of year              |                      |                                       | 1,000 |      |      |   | 1,000 |      |      |   | 1,000 |     
|                                      |                      |                                       |       |      |      |   |       |      |     
|Cash  end of year                    |                      | $                                     | 1,000 |      |      | $ | 1,000 |      |      | $ | 1,000 |     
|                                      |                      |                                       |       |      |      |   |       |      |     



F-42



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##### Table of Contents



FERRELLGAS PARTNERS FINANCE CORP.


(a wholly-owned subsidiary of Ferrellgas Partners, L.P.)





NOTES TO FINANCIAL STATEMENTS




|   |          
|-- | ---------
|A. | Formation







|   |           
|-- | ----------
|B. | Commitment

3 4






|   |             
|-- | ------------
|C. | Income taxes





F-43



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##### Table of Contents






REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM














Accounting for
Asset Retirement Obligations,


Internal Control 
Integrated Framework








F-44



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##### Table of Contents



FERRELLGAS, L.P. AND SUBSIDIARIES





CONSOLIDATED BALANCE SHEETS


|                                  |                                                                                                                                |                                         |   |         |           |  |   |         |           | 
|--------------------------------- | ------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------- | - | ------- | --------- |  | - | ------- | --------- | 
|                                  |                                                                                                                                | July 31,                                |  
|                                  |                                                                                                                                |                                         |  
|                                  |                                                                                                                                | 2005                                    |   |         | 2004      | 
|                                  |                                                                                                                                |                                         |   |         |           | 
|                                  |                                                                                                                                | (In thousands)                          |  
|ASSETS                           
|Current assets:                   |                                                                                                                                |                                         |   |         |           |  |   |        
|                                  | Cash and cash equivalents                                                                                                      |                                         | $ | 20,191  |           |  | $ | 13,751  |          
|                                  | Accounts and notes receivable (net of allowance for doubtful
    accounts of $3,764 and $2,523 in 2005 and 2004, respectively) |                                         |   | 107,778 |           |  |   | 110,389 |          
|                                  | Inventories                                                                                                                    |                                         |   | 97,743  |           |  |   | 96,359  |          
|                                  | Prepaid expenses and other current assets                                                                                      |                                         |   | 12,121  |           |  |   | 8,978   |          
|                                  | Current assets of discontinued operations                                                                                      |                                         |   |        |           |  |   | 11,348  |          
|                                  |                                                                                                                                |                                         |   |         |           | 
|                                  |                                                                                                                                | Total current assets                    |   |         | 237,833   |  |   |         | 240,825   | 
|                                  | Property, plant and equipment, net                                                                                             |                                         |   | 766,765 |           |  |   | 776,507 |          
|                                  | Goodwill                                                                                                                       |                                         |   | 234,142 |           |  |   | 230,604 |          
|                                  | Intangible assets, net                                                                                                         |                                         |   | 255,277 |           |  |   | 264,427 |          
|                                  | Other assets, net                                                                                                              |                                         |   | 10,254  |           |  |   | 10,559  |          
|                                  | Non-current assets of discontinued operations                                                                                  |                                         |   |        |           |  |   | 48,068  |          
|                                  |                                                                                                                                |                                         |   |         |           | 
|                                  |                                                                                                                                | Total assets                            |   | $       | 1,504,271 |  |   | $       | 1,570,990 | 
|                                  |                                                                                                                                |                                         |   |         |           | 
|                                 
|LIABILITIES AND PARTNERS CAPITAL
|Current liabilities:              |                                                                                                                                |                                         |   |         |           |  |   |        
|                                  | Accounts payable                                                                                                               |                                         | $ | 108,667 |           |  | $ | 101,590 |          
|                                  | Short-term borrowings                                                                                                          |                                         |   | 19,800  |           |  |   |        |          
|                                  | Other current liabilities                                                                                                      |                                         |   | 68,288  |           |  |   | 83,590  |          
|                                  | Current liabilities of discontinued operations                                                                                 |                                         |   |        |           |  |   | 7,052   |          
|                                  |                                                                                                                                |                                         |   |         |           | 
|                                  |                                                                                                                                | Total current liabilities               |   |         | 196,755   |  |   |         | 192,232   | 
|                                  | Long-term debt                                                                                                                 |                                         |   | 678,367 |           |  |   | 882,662 |          
|                                  | Other liabilities                                                                                                              |                                         |   | 20,162  |           |  |   | 17,050  |          
|                                  | Non-current liabilities of discontinued operations                                                                             |                                         |   |        |           |  |   | 3,479   |          
|                                  | Contingencies and commitments (Note M)                                                                                         |                                         |   |        |           |  |   |        |          
|Partners capital                 |                                                                                                                                |                                         |   |         |           |  |   |        
|                                  | Limited partner                                                                                                                |                                         |   | 603,448 |           |  |   | 470,046 |          
|                                  | General partner                                                                                                                |                                         |   | 6,151   |           |  |   | 4,791   |          
|                                  | Accumulated other comprehensive income (loss)                                                                                  |                                         |   | (612    | )         |  |   | 730     |          
|                                  |                                                                                                                                |                                         |   |         |           | 
|                                  |                                                                                                                                | Total partners capital                 |   |         | 608,987   |  |   |         | 475,567   | 
|                                  |                                                                                                                                |                                         |   |         |           | 
|                                  |                                                                                                                                | Total liabilities and partners capital |   | $       | 1,504,271 |  |   | $       | 1,570,990 | 
|                                  |                                                                                                                                |                                         |   |         |           | 



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FERRELLGAS, L.P. AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF EARNINGS


|                                                                                                                  |                                     |                             |           |           |           |   |         |           |           |   |         |           |           | 
|----------------------------------------------------------------------------------------------------------------- | ----------------------------------- | --------------------------- | --------- | --------- | --------- | - | ------- | --------- | --------- | - | ------- | --------- | --------- | 
|                                                                                                                  |                                     | For the Year Ended July 31, |          
|                                                                                                                  |                                     |                             |          
|                                                                                                                  |                                     | 2005                        |           |           | 2004      |   |         | 2003      |          
|                                                                                                                  |                                     |                             |           |           |           |   |         |           |          
|                                                                                                                  |                                     | (In thousands)              |          
|Revenues:                                                                                                         |                                     |                             |           |           |           |   |         |           |           |   |         |          
|                                                                                                                  | Propane and other gas liquids sales |                             | $         | 1,592,325 |           |   | $       | 1,210,564 |           |   | $       | 1,087,513 |          
|                                                                                                                  | Other                               |                             |           | 161,789   |           |   |         | 97,822    |           |   |         | 78,165    |          
|                                                                                                                  |                                     |                             |           |           |           |   |         |           |          
|                                                                                                                  |                                     | Total revenues              |           |           | 1,754,114 |   |         |           | 1,308,386 |   |         |           | 1,165,678 | 
|Cost of product sold (exclusive of depreciation, shown with
    amortization below)                               |                                     |                             | 1,140,298 |           |           |   | 766,404 |           |           |   | 644,853 |          
|                                                                                                                  |                                     |                             |           |           |           |   |         |           |          
|Gross profit                                                                                                      |                                     |                             | 613,816   |           |           |   | 541,982 |           |           |   | 520,825 |          
|Operating expense                                                                                                 |                                     |                             | 365,866   |           |           |   | 322,994 |           |           |   | 295,230 |          
|Depreciation and amortization expense                                                                             |                                     |                             | 83,060    |           |           |   | 56,111  |           |           |   | 39,858  |          
|General and administrative expense                                                                                |                                     |                             | 42,342    |           |           |   | 34,532  |           |           |   | 28,024  |          
|Equipment lease expense                                                                                           |                                     |                             | 25,495    |           |           |   | 19,652  |           |           |   | 20,622  |          
|Employee stock ownership plan compensation charge                                                                 |                                     |                             | 12,266    |           |           |   | 7,892   |           |           |   | 6,778   |          
|Loss on disposal of assets and other                                                                              |                                     |                             | 8,673     |           |           |   | 7,133   |           |           |   | 6,679   |          
|                                                                                                                  |                                     |                             |           |           |           |   |         |           |          
|Operating income                                                                                                  |                                     |                             | 76,114    |           |           |   | 93,668  |           |           |   | 123,634 |          
|Interest expense                                                                                                  |                                     |                             | (67,430   | )         |           |   | (54,242 | )         |           |   | (45,317 | )        
|Interest income                                                                                                   |                                     |                             | 1,891     |           |           |   | 1,582   |           |           |   | 1,281   |          
|                                                                                                                  |                                     |                             |           |           |           |   |         |           |          
|Earnings before income taxes, discontinued operations and
    cumulative effect of change in accounting principle |                                     |                             | 10,575    |           |           |   | 41,008  |           |           |   | 79,598  |          
|Income tax expense (benefit)                                                                                      |                                     |                             | 1,447     |           |           |   | (402    | )         |           |   |        |          
|                                                                                                                  |                                     |                             |           |           |           |   |         |           |          
|Earnings before discontinued operations and cumulative effect
    of change in accounting principle               |                                     |                             | 9,128     |           |           |   | 41,410  |           |           |   | 79,598  |          
|Earnings from discontinued operations (including gain on sale in
    2005 of $97,001)                             |                                     |                             | 105,252   |           |           |   | 8,131   |           |           |   | 6,600   |          
|Cumulative effect of change in accounting principle                                                               |                                     |                             |          |           |           |   |        |           |           |   | (2,782  | )        
|                                                                                                                  |                                     |                             |           |           |           |   |         |           |          
|Net earnings                                                                                                      |                                     | $                           | 114,380   |           |           | $ | 49,541  |           |           | $ | 83,416  |          
|                                                                                                                  |                                     |                             |           |           |           |   |         |           |          



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##### Table of Contents



FERRELLGAS, L.P. AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF PARTNERS CAPITAL


|                                                                                                          |                                             |                |          |         |         |                             |        |            |  |   |             |        |       |           |    |    |           |   |        |     |  |   |          |         |  
|--------------------------------------------------------------------------------------------------------- | ------------------------------------------- | -------------- | -------- | ------- | ------- | --------------------------- | ------ | ---------- |  | - | ----------- | ------ | ----- | --------- | -- | -- | --------- | - | ------ | --- |  | - | -------- | ------- | -
|                                                                                                          |                                             |                |          |         |         | Accumulated Other           |        |            | 
|                                                                                                          |                                             |                |          |         |         | Comprehensive Income (Loss) |        |            | 
|                                                                                                          |                                             |                |          |         |         |                             |        |            | 
|                                                                                                          |                                             |                |          |         |         |                             |        | Currency   |  |   |             |        | Total |          
|                                                                                                          |                                             | Limited        |          |         | General |                             |        | Risk       |  |   | Translation |        |       | Pension   |    |    | Partners |  
|                                                                                                          |                                             | Partner        |          |         | Partner |                             |        | Management |  |   | Adjustments |        |       | Liability |    |    | Capital   |  
|                                                                                                          |                                             |                |          |         |         |                             |        |            |  |   |             |        |       |           |    |    |           |  
|                                                                                                          |                                             | (In thousands) |         
|July 31, 2002                                                                                             |                                             | $              | 183,173  |         |         | $                           | 1,871  |            |  | $ | (153        | )      |       | $         |   |    |           | $ | (2,619 | )   |  | $ | 182,272  |        
|Contributions in connection with ESOP compensation charge                                                 |                                             |                | 6,710    |         |         |                             | 68     |            |  |   |            |        |       |           |   |    |           |   |       |     |  |   | 6,778    |        
|Quarterly distributions                                                                                   |                                             |                | (100,404 | )       |         |                             | (1,025 | )          |  |   |            |        |       |           |   |    |           |   |       |     |  |   | (101,429 | )      
|Cash contributed by Ferrellgas Partners and the general partner                                           |                                             |                | 17,576   |         |         |                             | 179    |            |  |   |            |        |       |           |   |    |           |   |       |     |  |   | 17,755   |        
|Net assets contributed by Ferrellgas Partners and the general
    partner in connection with acquisitions |                                             |                | 41,792   |         |         |                             | 427    |            |  |   |            |        |       |           |   |    |           |   |       |     |  |   | 42,219   |        
|Comprehensive income:                                                                                     |                                             |                |          |         |         |                             |        |            |  |   |             |        |       |           |    |    |           |   |        |     |  |   |          |        
|                                                                                                          | Net earnings                                |                |          | 82,573  |         |                             |        | 843        |  |   |             |       |       |           |    |   |           |   |        |    |  |   |          | 83,416  |  
|Other comprehensive income:                                                                               |                                             |                |          |         |         |                             |        |            |  |   |             |        |       |           |    |    |           |   |        |     |  |   |          |        
|                                                                                                          | Reclassification of derivatives to earnings |                |          |        |         |                             |        |           |  |   |             | 153    |       |           |    |   |           |   |        |    |  |   |          |         |  
|                                                                                                          | Pension liability adjustment                |                |          |        |         |                             |        |           |  |   |             |       |       |           |    |   |           |   |        | 651 |  |   |          | 804     |  
|                                                                                                          |                                             |                |          |         |         |                             |        |            |  |   |             |        |       |           |    |    |           |  
|Comprehensive income                                                                                      |                                             |                |          |         |         |                             |        |            |  |   |             |        |       |           |    |    |           |   |        |     |  |   | 84,220   |        
|                                                                                                          |                                             |                |          |         |         |                             |        |            |  |   |             |        |       |           |    |    |           |  
|July 31, 2003                                                                                             |                                             |                | 231,420  |         |         |                             | 2,363  |            |  |   |            |        |       |           |   |    |           |   | (1,968 | )   |  |   | 231,815  |        
|Contributions in connection with ESOP compensation charge                                                 |                                             |                | 7,812    |         |         |                             | 80     |            |  |   |            |        |       |           |   |    |           |   |       |     |  |   | 7,892    |        
|Quarterly distributions                                                                                   |                                             |                | (110,958 | )       |         |                             | (1,133 | )          |  |   |            |        |       |           |   |    |           |   |       |     |  |   | (112,091 | )      
|Cash contributed by Ferrellgas Partners and the general partner                                           |                                             |                | 88,937   |         |         |                             | 907    |            |  |   |            |        |       |           |   |    |           |   |       |     |  |   | 89,844   |        
|Net assets contributed by Ferrellgas Partners and the general
    partner in connection with acquisitions |                                             |                | 203,794  |         |         |                             | 2,074  |            |  |   |            |        |       |           |   |    |           |   |       |     |  |   | 205,868  |        
|Comprehensive income:                                                                                     |                                             |                |          |         |         |                             |        |            |  |   |             |        |       |           |    |    |           |   |        |     |  |   |          |        
|                                                                                                          | Net earnings                                |                |          | 49,041  |         |                             |        | 500        |  |   |             |       |       |           |    |   |           |   |        |    |  |   |          | 49,541  |  
|Other comprehensive income:                                                                               |                                             |                |          |         |         |                             |        |            |  |   |             |        |       |           |    |    |           |   |        |     |  |   |          |        
|                                                                                                          | Net gains on risk management derivatives    |                |          |        |         |                             |        |           |  |   |             | 1,911  |       |           |    |   |           |   |        |    |  |   |          |         |  
|                                                                                                          | Reclassification of derivatives to earnings |                |          |        |         |                             |        |           |  |   |             | (139   | )     |           |    |   |           |   |        |    |  |   |          |         |  
|                                                                                                          | Foreign currency translation adjustments    |                |          |         |         |                             |        |            |  |   |             |        |       |           |    | 16 |           |   |        |     |  |   |          |         |  
|                                                                                                          | Pension liability adjustment                |                |          |        |         |                             |        |           |  |   |             |       |       |           |    |   |           |   |        | 910 |  |   |          | 2,698   |  
|                                                                                                          |                                             |                |          |         |         |                             |        |            |  |   |             |        |       |           |    |    |           |  
|Comprehensive income                                                                                      |                                             |                |          |         |         |                             |        |            |  |   |             |        |       |           |    |    |           |   |        |     |  |   | 52,239   |        
|                                                                                                          |                                             |                |          |         |         |                             |        |            |  |   |             |        |       |           |    |    |           |  
|July 31, 2004                                                                                             |                                             |                | 470,046  |         |         |                             | 4,791  |            |  |   | 1,772       |        |       |           | 16 |    |           |   | (1,058 | )   |  |   | 475,567  |        
|Contributions in connection with ESOP compensation charge                                                 |                                             |                | 12,142   |         |         |                             | 124    |            |  |   |            |        |       |           |   |    |           |   |       |     |  |   | 12,266   |        
|Quarterly distributions                                                                                   |                                             |                | (137,643 | )       |         |                             | (1,406 | )          |  |   |            |        |       |           |   |    |           |   |       |     |  |   | (139,049 | )      
|Cash contributed by Ferrellgas Partners and the general partner                                           |                                             |                | 138,540  |         |         |                             | 1,413  |            |  |   |            |        |       |           |   |    |           |   |       |     |  |   | 139,953  |        
|Net assets contributed by Ferrellgas Partners and the general
    partner in connection with acquisitions |                                             |                | 7,138    |         |         |                             | 74     |            |  |   |            |        |       |           |   |    |           |   |       |     |  |   | 7,212    |        
|Comprehensive income:                                                                                     |                                             |                |          |         |         |                             |        |            |  |   |             |        |       |           |    |    |           |   |        |     |  |   |          |        
|                                                                                                          | Net earnings                                |                |          | 113,225 |         |                             |        | 1,155      |  |   |             |       |       |           |    |   |           |   |        |    |  |   |          | 114,380 |  
|Other comprehensive income:                                                                               |                                             |                |          |         |         |                             |        |            |  |   |             |        |       |           |    |    |           |   |        |     |  |   |          |        
|                                                                                                          | Net gains on risk management derivatives    |                |          |        |         |                             |        |           |  |   |             | 70     |       |           |    |   |           |   |        |    |  |   |          |         |  
|                                                                                                          | Reclassification of derivatives to earnings |                |          |        |         |                             |        |           |  |   |             | (1,772 | )     |           |    |   |           |   |        |    |  |   |          |         |  
|                                                                                                          | Foreign currency translation adjustments    |                |          |         |         |                             |        |            |  |   |             |        |       |           |    | 49 |           |   |        |     |  |   |          |         |  
|                                                                                                          | Pension liability adjustment                |                |          |        |         |                             |        |           |  |   |             |       |       |           |    |   |           |   |        | 311 |  |   |          | (1,342  | )
|                                                                                                          |                                             |                |          |         |         |                             |        |            |  |   |             |        |       |           |    |    |           |  
|Comprehensive income                                                                                      |                                             |                |          |         |         |                             |        |            |  |   |             |        |       |           |    |    |           |   |        |     |  |   | 113,038  |        
|                                                                                                          |                                             |                |          |         |         |                             |        |            |  |   |             |        |       |           |    |    |           |  
|July 31, 2005                                                                                             |                                             | $              | 603,448  |         |         | $                           | 6,151  |            |  | $ | 70          |        |       | $         | 65 |    |           | $ | (747   | )   |  | $ | 608,987  |        
|                                                                                                          |                                             |                |          |         |         |                             |        |            |  |   |             |        |       |           |    |    |           |  



F-47



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##### Table of Contents



FERRELLGAS, L.P. AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                   |                                                                                  |                                                                                             |                                                                                                  |                                                     |         |            |          |          |        |          |          |          |        |          |          |  
|-------------------------------------------------- | -------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------ | --------------------------------------------------- | ------- | ---------- | -------- | -------- | ------ | -------- | -------- | -------- | ------ | -------- | -------- | -
|                                                   |                                                                                  | For the Year Ended July 31,                                                                 |                                                                                                 
|                                                   |                                                                                  |                                                                                             |                                                                                                 
|                                                   |                                                                                  | 2005                                                                                        |                                                                                                  |                                                     | 2004    |            |          | 2003     |       
|                                                   |                                                                                  |                                                                                             |                                                                                                  |                                                     |         |            |          |          |       
|                                                   |                                                                                  | (In thousands)                                                                              |                                                                                                 
|Cash flows from operating activities:              |                                                                                  |                                                                                             |                                                                                                  |                                                     |         |            |          |          |        |          |          |         
|                                                   | Net earnings                                                                     |                                                                                             | $                                                                                                | 114,380                                             |         |            | $        | 49,541   |        |          | $        | 83,416   |       
|                                                   | Reconciliation of net earnings to net cash provided by operating
    activities: |                                                                                             |                                                                                                  |                                                     |         |            |          |          |        |          |          |          |       
|                                                   |                                                                                  | Cumulative effect of change in accounting principles                                        |                                                                                                  |                                                     |        |            |          |          |       |          |          |          | 2,782  |         
|                                                   |                                                                                  | Depreciation and amortization expense                                                       |                                                                                                  |                                                     | 84,249  |            |          |          | 57,115 |          |          |          | 40,779 |         
|                                                   |                                                                                  | Employee stock ownership plan compensation charge                                           |                                                                                                  |                                                     | 12,266  |            |          |          | 7,892  |          |          |          | 6,778  |         
|                                                   |                                                                                  | Loss (gain) on disposal of assets and discontinued
    operations                           |                                                                                                  |                                                     | (91,494 | )          |          |          | 6,120  |          |          |          | 5,419  |         
|                                                   |                                                                                  | Other                                                                                       |                                                                                                  |                                                     | 7,024   |            |          |          | 7,913  |          |          |          | 6,134  |         
|                                                   |                                                                                  | Changes in operating assets and liabilities, net of effects from
    business acquisitions: |                                                                                                  |                                                     |         |            |          |          |        |          |          |          |        |         
|                                                   |                                                                                  |                                                                                             | Accounts and notes receivable, net of securitization                                             |                                                     |         | (43,246    | )        |          |        | (24,943  | )        |          |        | (16,308  | )       
|                                                   |                                                                                  |                                                                                             | Inventories                                                                                      |                                                     |         | (2,421     | )        |          |        | (5,264   | )        |          |        | (17,097  | )       
|                                                   |                                                                                  |                                                                                             | Prepaid expenses and other current assets                                                        |                                                     |         | (2,443     | )        |          |        | (102     | )        |          |        | 1,616    |         
|                                                   |                                                                                  |                                                                                             | Accounts payable                                                                                 |                                                     |         | 4,505      |          |          |        | 17,227   |          |          |        | 4,910    |         
|                                                   |                                                                                  |                                                                                             | Accrued interest expense                                                                         |                                                     |         | (4,662     | )        |          |        | 4,868    |          |          |        | 661      |         
|                                                   |                                                                                  |                                                                                             | Other current liabilities                                                                        |                                                     |         | (4,963     | )        |          |        | (12,928  | )        |          |        | (1,202   | )       
|                                                   |                                                                                  |                                                                                             | Other liabilities                                                                                |                                                     |         | 323        |          |          |        | 890      |          |          |        | 1,379    |         
|                                                   |                                                                                  | Accounts receivable securitization:                                                         |                                                                                                  |                                                     |         |            |          |          |        |          |          |          |        |         
|                                                   |                                                                                  |                                                                                             | Proceeds from new accounts receivable securitizations                                            |                                                     |         | 114,400    |          |          |        | 30,000   |          |          |        | 60,000   |         
|                                                   |                                                                                  |                                                                                             | Proceeds from collections reinvested in revolving period
    accounts receivable securitizations |                                                     |         | 981,256    |          |          |        | 627,389  |          |          |        | 562,883  |         
|                                                   |                                                                                  |                                                                                             | Remittances of amounts collected as servicer of accounts
    receivable securitizations          |                                                     |         | (1,051,356 | )        |          |        | (669,689 | )        |          |        | (588,883 | )       
|                                                   |                                                                                  |                                                                                             |                                                                                                  |                                                     |         |            |          |          |       
|                                                   |                                                                                  |                                                                                             |                                                                                                  | Net cash provided by operating activities           |         |            | 117,818  |          |        |          | 96,029   |          |        |          | 153,267  |  
|                                                   |                                                                                  |                                                                                             |                                                                                                  |                                                     |         |            |          |          |       
|Cash flows from investing activities:              |                                                                                  |                                                                                             |                                                                                                  |                                                     |         |            |          |          |        |          |          |         
|                                                   | Cash paid for assumed merger and related obligations                             |                                                                                             |                                                                                                  |                                                    |         |            |          | (343,414 | )      |          |          |         |       
|                                                   | Business acquisitions, net of cash acquired                                      |                                                                                             |                                                                                                  | (23,779                                             | )       |            |          | (40,960  | )      |          |          | (7,139   | )     
|                                                   | Cash paid for acquisition transaction fees                                       |                                                                                             |                                                                                                  |                                                    |         |            |          | (1,476   | )      |          |          |         |       
|                                                   | Capital expenditures  tank lease buyout                                         |                                                                                             |                                                                                                  |                                                    |         |            |          |         |        |          |          | (155,600 | )     
|                                                   | Capital expenditures  technology initiative                                     |                                                                                             |                                                                                                  | (10,466                                             | )       |            |          | (8,688   | )      |          |          | (21,203  | )     
|                                                   | Capital expenditures  other                                                     |                                                                                             |                                                                                                  | (42,348                                             | )       |            |          | (32,692  | )      |          |          | (18,310  | )     
|                                                   | Proceeds from sale of discontinued operations                                    |                                                                                             |                                                                                                  | 144,000                                             |         |            |          |         |        |          |          |         |       
|                                                   | Proceeds from asset sales                                                        |                                                                                             |                                                                                                  | 11,948                                              |         |            |          | 5,766    |        |          |          | 3,747    |       
|                                                   | Other                                                                            |                                                                                             |                                                                                                  | (2,891                                              | )       |            |          | (4,023   | )      |          |          | (842     | )     
|                                                   |                                                                                  |                                                                                             |                                                                                                  |                                                     |         |            |          |          |       
|                                                   |                                                                                  |                                                                                             |                                                                                                  | Net cash provided by (used in) investing activities |         |            | 76,464   |          |        |          | (425,487 | )        |        |          | (199,347 | )
|                                                   |                                                                                  |                                                                                             |                                                                                                  |                                                     |         |            |          |          |       
|Cash flows from financing activities:              |                                                                                  |                                                                                             |                                                                                                  |                                                     |         |            |          |          |        |          |          |         
|                                                   | Distributions                                                                    |                                                                                             |                                                                                                  | (141,084                                            | )       |            |          | (112,092 | )      |          |          | (102,233 | )     
|                                                   | Contributions from partners                                                      |                                                                                             |                                                                                                  | 140,026                                             |         |            |          | 282,374  |        |          |          | 18,182   |       
|                                                   | Proceeds from issuance of debt                                                   |                                                                                             |                                                                                                  | 44                                                  |         |            |          | 262,423  |        |          |          | 140,000  |       
|                                                   | Principal payments on debt                                                       |                                                                                             |                                                                                                  | (205,354                                            | )       |            |          | (50,256  | )      |          |          | (16,367  | )     
|                                                   | Net additions (reductions) to short-term borrowings                              |                                                                                             |                                                                                                  | 19,800                                              |         |            |          | (43,719  | )      |          |          |         |       
|                                                   | Cash paid for financing costs                                                    |                                                                                             |                                                                                                  | (1,323                                              | )       |            |          | (6,353   | )      |          |          | (2,074   | )     
|                                                   |                                                                                  |                                                                                             |                                                                                                  |                                                     |         |            |          |          |       
|                                                   |                                                                                  |                                                                                             |                                                                                                  | Net cash provided by (used in) financing activities |         |            | (187,891 | )        |        |          | 332,377  |          |        |          | 37,508   |  
|                                                   |                                                                                  |                                                                                             |                                                                                                  |                                                     |         |            |          |          |       
|Effect of exchange rate changes on cash            |                                                                                  |                                                                                             | 49                                                                                               |                                                     |         |            | 16       |          |        |          |         |         
|Increase (decrease) in cash and cash equivalents   |                                                                                  |                                                                                             | 6,440                                                                                            |                                                     |         |            | 2,935    |          |        |          | (8,572   | )       
|Cash and cash equivalents  beginning of period    |                                                                                  |                                                                                             | 13,751                                                                                           |                                                     |         |            | 10,816   |          |        |          | 19,388   |         
|                                                   |                                                                                  |                                                                                             |                                                                                                  |                                                     |         |            |          |          |       
|Cash and cash equivalents  end of period          |                                                                                  | $                                                                                           | 20,191                                                                                           |                                                     |         | $          | 13,751   |          |        | $        | 10,816   |         
|                                                   |                                                                                  |                                                                                             |                                                                                                  |                                                     |         |            |          |          |       
|Supplemental disclosures of cash flow information: |                                                                                  |                                                                                             |                                                                                                  |                                                     |         |            |          |          |        |          |          |         
|Cash paid for:                                     |                                                                                  |                                                                                             |                                                                                                  |                                                     |         |            |          |          |        |          |          |         
|                                                   | Interest                                                                         |                                                                                             | $                                                                                                | 69,847                                              |         |            | $        | 47,325   |        |          | $        | 42,843   |       
|                                                   |                                                                                  |                                                                                             |                                                                                                  |                                                     |         |            |          |          |       
|                                                   | Income taxes                                                                     |                                                                                             | $                                                                                                | 1,359                                               |         |            | $        |         |        |          | $        |         |       
|                                                   |                                                                                  |                                                                                             |                                                                                                  |                                                     |         |            |          |          |       



F-48



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##### Table of Contents



FERRELLGAS, L.P. AND SUBSIDIARIES





NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


(Dollars in thousands, unless otherwise designated)




|   |                                       
|-- | --------------------------------------
|A. | Partnership organization and formation









|   |                                           
|-- | ------------------------------------------
|B. | Summary of significant accounting policies

(1) Nature of operations:


(2) Accounting estimates:


(3) Principles of consolidation:


F-49



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##### Table of Contents



FERRELLGAS, L.P. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


(4) Cash and cash equivalents and non-cash
activities:


(5) Inventories:


(6) Accounts receivable securitization:




(7) Property, plant and equipment:


(8) Goodwill:


F-50



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##### Table of Contents



FERRELLGAS, L.P. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


(9) Intangible assets:


(10) Accounting for derivative commodity contracts:


(11) Asset retirement obligation:


(12) Revenue recognition:


(13) Shipping and handling expenses:


F-51



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##### Table of Contents



FERRELLGAS, L.P. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




(14) Cost of product sold:


(15) Operating expenses:


(16) Income taxes:


(17) Unit and stock-based compensation:


|                                                                                                                     |  |      |         |   |      |   |        |      |  |   |        |  
|-------------------------------------------------------------------------------------------------------------------- |  | ---- | ------- | - | ---- | - | ------ | ---- |  | - | ------ | -
|                                                                                                                     |  | 2005 |         |   | 2004 |   |        | 2003 | 
|                                                                                                                     |  |      |         |   |      |   |        |      | 
|Net earnings as reported                                                                                             |  | $    | 114,380 |   |      | $ | 49,541 |      |  | $ | 83,416 |  
|Deduct: Total stock-based employee compensation expenses
    determined under fair value based method for all awards |  |      | (250    | ) |      |   | (1,133 | )    |  |   | (952   | )
|                                                                                                                     |  |      |         |   |      |   |        |      | 
|Pro forma net earnings                                                                                               |  | $    | 114,130 |   |      | $ | 48,408 |      |  | $ | 82,464 |  
|                                                                                                                     |  |      |         |   |      |   |        |      | 



|                               |  |      |            |   |      |  |            |      |  |  |            |  
|------------------------------ |  | ---- | ---------- | - | ---- |  | ---------- | ---- |  |  | ---------- | -
|                               |  | 2005 |            |   | 2004 |  |            | 2003 | 
|                               |  |      |            |   |      |  |            |      | 
|Dividend percentage            |  |      | 1          | % |      |  | 1          | %    |  |  | 1          | %
|Average stock price volatility |  |      | 17.9       | % |      |  | 17.9       | %    |  |  | 18.6       | %
|Risk-free interest rate        |  |      | 4.1        | % |      |  | 3.8        | %    |  |  | 4.0        | %
|Expected life of option plans  |  |      | 5-12 years |   |      |  | 5-12 years |      |  |  | 5-12 years |  



(18) Segment information:


F-52



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##### Table of Contents



FERRELLGAS, L.P. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


(19) New accounting standards:








SFAS No. 154.


(20) Reclassifications:




|   |                      
|-- | ---------------------
|C. | Business combinations



F-53



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##### Table of Contents



FERRELLGAS, L.P. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |   |                                                                                                                                     
| | - | ------------------------------------------------------------------------------------------------------------------------------------
| |  | Kamps Propane, Inc., based in California, acquired August
    2004;                                                                
|
| |  | Suburban Propanes Upper Midwest Retail Operations, based
    in Minnesota, North Dakota and Wisconsin, acquired September
    2004;
|
| |  | Basin Propane, based in Washington, acquired September 2004;                                                                        
|
| |  | Econogas Service, Inc., based in Iowa, acquired September 2004;                                                                     
|
| |  | Land Propane Gas Service, based in Kentucky, acquired September
    2004;                                                           
|
| |  | Parsons Gas & Appliance, Inc., Parsons Gas, Inc., and
    Daves Gas, Inc., based in Kentucky, acquired December
    2004; and      
|
| |  | Commercial Propane Corporation, based in Wisconsin, acquired
    January 2005.                                                      





|                                   |  |   |        |  
|---------------------------------- |  | - | ------ | -
|Customer tanks, buildings and land |  | $ | 12,358 |  
|Non-compete agreements             |  |   | 2,914  |  
|Customer lists                     |  |   | 12,690 |  
|Goodwill                           |  |   | 4,016  |  
|Other assets                       |  |   | 453    |  
|Current liabilities                |  |   | (749   | )
|                                   |  |   |       
|                                   |  | $ | 31,682 |  
|                                   |  |   |       







| |   |                                                                                                                        
| | - | -----------------------------------------------------------------------------------------------------------------------
| |  | Chapmans Propane Co., Inc., based in Illinois, acquired
    August 2003;                                              
|
| |  | Buds Propane Service, Inc., based in Oregon, acquired
    September 2003;                                             
|
| |  | Prairie Land Coop, based in Iowa, acquired October 2003;                                                               
|
| |  | Aeropres Propane, Inc., based in Louisiana and Arkansas,
    acquired December 2003;                                   
|
| |  | Suburban Propanes Midwest Retail Operations, based in
    Texas, Oklahoma, Missouri and Kansas, acquired January 2004;
|
| |  | Crows LP Gas Co., based in Iowa, acquired March 2004;                                                                 
|
| |  | Hilltop Supply Company, based in Southern California, acquired
    March 2004;                                         
|
| |  | Blue Ribbon Propane, based in Canada, acquired May 2004;                                                               

F-54



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##### Table of Contents



FERRELLGAS, L.P. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |   |                                                                                  
| | - | ---------------------------------------------------------------------------------
| |  | C. Barron & Sons, Inc., based in Michigan, acquired
    June 2004; and           
|
| |  | Tri-Counties Gas Companies, based in Northern California,
    acquired July 2004.





|                                   |  |   |        |  
|---------------------------------- |  | - | ------ | -
|Customer tanks, buildings and land |  | $ | 24,576 |  
|Non-compete agreements             |  |   | 4,306  |  
|Customer lists                     |  |   | 14,183 |  
|Goodwill                           |  |   | 244    |  
|Other                              |  |   | (16    | )
|                                   |  |   |       
|                                   |  | $ | 43,293 |  
|                                   |  |   |       







| |   |                                                                                   
| | - | ----------------------------------------------------------------------------------
| |  | ProAm, Inc., based primarily in Georgia and Texas, acquired
    December 2002;    
|
| |  | a branch of Cenex Propane Partners Co., based in Iowa, acquired
    November 2002;
|
| |  | Northstar Propane, based in Nevada, acquired November 2002;                       
|
| |  | Pettit Oil Company, Inc., based in Washington, acquired May
    2003; and         
|
| |  | Wheelers Bottled Gas, Inc., based in Ohio, acquired July
    2003.               





|                                   |  |   |        |  
|---------------------------------- |  | - | ------ | -
|Current assets                     |  | $ | 8,835  |  
|Customer tanks, buildings and land |  |   | 28,451 |  
|Non-compete agreements             |  |   | 1,148  |  
|Customer lists                     |  |   | 11,650 |  
|Current liabilities                |  |   | (930   | )
|                                   |  |   |       
|                                   |  | $ | 49,154 |  
|                                   |  |   |       



Blue Rhino contribution




F-55



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##### Table of Contents



FERRELLGAS, L.P. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                                                                        |  |   |         | 
|----------------------------------------------------------------------- |  | - | ------- | 
|Assumption of obligations under the contribution agreement              |  | $ | 343,414 | 
|Common units and general partner interest issued                        |  |   | 11,850  | 
|Assumption of Blue Rhinos bank credit facility outstanding
    balance |  |   | 43,719  | 
|Assumption of other liabilities and acquisition costs                   |  |   | 19,394  | 
|                                                                        |  |   |        
|                                                                        |  | $ | 418,377 | 
|                                                                        |  |   |        









F-56



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##### Table of Contents



FERRELLGAS, L.P. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                   |  |   |         |  
|---------------------------------- |  | - | ------- | -
|Current assets                     |  | $ | 53,912  |  
|Customer tanks, buildings and land |  |   | 96,160  |  
|Trademarks and tradenames          |  |   | 59,000  |  
|Non-compete agreements             |  |   | 3,300   |  
|Customer lists                     |  |   | 95,500  |  
|Goodwill                           |  |   | 136,408 |  
|Other intangibles                  |  |   | 5,300   |  
|Other assets                       |  |   | 1,375   |  
|Current liabilities                |  |   | (32,578 | )
|                                   |  |   |        
|                                   |  | $ | 418,377 |  
|                                   |  |   |        







Results of operations




|                                                                                                    |  |                             |           |  |      |   |           | 
|--------------------------------------------------------------------------------------------------- |  | --------------------------- | --------- |  | ---- | - | --------- | 
|                                                                                                    |  | For the year ended July 31, |          
|                                                                                                    |  |                             |          
|                                                                                                    |  | 2004                        |           |  | 2003 |  
|                                                                                                    |  |                             |           |  |      |  
|Revenues                                                                                            |  | $                           | 1,470,529 |  |      | $ | 1,423,900 | 
|Earnings before discontinued operations and cumulative effect of
    change in accounting principle |  | $                           | 25,663    |  |      | $ | 75,269    | 
|Net earnings                                                                                        |  | $                           | 33,794    |  |      | $ | 79,087    | 

F-57



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##### Table of Contents



FERRELLGAS, L.P. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                        
|-- | -----------------------
|D. | Discontinued operations





|                                                                                    |                                                                                                                   |                             |        |         |      |   |        |       |  |   |        |       | 
|----------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------- | --------------------------- | ------ | ------- | ---- | - | ------ | ----- |  | - | ------ | ----- | 
|                                                                                    |                                                                                                                   | For the Year Ended July 31, |       
|                                                                                    |                                                                                                                   |                             |       
|                                                                                    |                                                                                                                   | 2005                        |        |         | 2004 |   |        | 2003  | 
|                                                                                    |                                                                                                                   |                             |        |         |      |   |        |       | 
|Total revenues                                                                      |                                                                                                                   | $                           | 89,339 |         |      | $ | 70,995 |       |  | $ | 55,961 |      
|Cost of product sold (exclusive of depreciation, shown with
    amortization below) |                                                                                                                   |                             | 77,407 |         |      |   | 59,441 |       |  |   | 46,116 |      
|                                                                                    |                                                                                                                   |                             |        |         |      |   |        |       | 
|Gross profit                                                                        |                                                                                                                   |                             | 11,932 |         |      |   | 11,554 |       |  |   | 9,845  |      
|Operating expense                                                                   |                                                                                                                   |                             | 2,506  |         |      |   | 2,362  |       |  |   | 2,306  |      
|Depreciation and amortization expense                                               |                                                                                                                   |                             | 1,189  |         |      |   | 1,004  |       |  |   | 921    |      
|Equipment lease expense                                                             |                                                                                                                   |                             | 22     |         |      |   | 22     |       |  |   | 18     |      
|Loss on disposal of assets and other                                                |                                                                                                                   |                             | (36    | )       |      |   | 35     |       |  |   |       |      
|                                                                                    |                                                                                                                   |                             |        |         |      |   |        |       | 
|                                                                                    | Earnings before income taxes, discontinued operations and
    cumulative effect of change in accounting principle |                             |        | 8,251   |      |   |        | 8,131 |  |   |        | 6,600 | 
|                                                                                    | Gain on sale of discontinued operations                                                                           |                             |        | 97,001  |      |   |        |      |  |   |        |      | 
|                                                                                    |                                                                                                                   |                             |        |         |      |   |        |       | 
|                                                                                    | Earnings from discontinued operations                                                                             |                             | $      | 105,252 |      |   | $      | 8,131 |  |   | $      | 6,600 | 
|                                                                                    |                                                                                                                   |                             |        |         |      |   |        |       | 

F-58



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##### Table of Contents



FERRELLGAS, L.P. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                    |                                           |                                                      |   |        |        | 
|--------------------------------------------------- | ----------------------------------------- | ---------------------------------------------------- | - | ------ | ------ | 
|                                                    |                                           | July 31,                                             |  
|                                                    |                                           | 2004                                                 |  
|                                                    |                                           |                                                      |  
|Current assets of discontinued operations:          |                                           |                                                      |   |       
|                                                    | Accounts and notes receivable, net        |                                                      | $ | 3,822  |       
|                                                    | Inventories                               |                                                      |   | 7,219  |       
|                                                    | Prepaid expenses and other current assets |                                                      |   | 307    |       
|                                                    |                                           |                                                      |  
|                                                    |                                           | Total current assets of discontinued operations      |   | $      | 11,348 | 
|                                                    |                                           |                                                      |  
|Non-current assets of discontinued operations:      |                                           |                                                      |   |       
|                                                    | Property, plant and equipment, net        |                                                      | $ | 15,929 |       
|                                                    | Goodwill                                  |                                                      |   | 31,164 |       
|                                                    | Intangibles assets, net                   |                                                      |   | 698    |       
|                                                    | Other assets                              |                                                      |   | 277    |       
|                                                    |                                           |                                                      |  
|                                                    |                                           | Total non-current assets of discontinued operations  |   | $      | 48,068 | 
|                                                    |                                           |                                                      |  
|Current liabilities of discontinued operations:     |                                           |                                                      |   |       
|                                                    | Accounts payable                          |                                                      | $ | 2,572  |       
|                                                    | Other current liabilities                 |                                                      |   | 4,480  |       
|                                                    |                                           |                                                      |  
|                                                    |                                           | Total current liabilities of discontinued operations |   | $      | 7,052  | 
|                                                    |                                           |                                                      |  
|Non-current liabilities of discontinued operations: |                                           |                                                      |   |       
|                                                    | Other liabilities                         |                                                      | $ | 3,479  |       
|                                                    |                                           |                                                      |  





|   |                                          
|-- | -----------------------------------------
|E. | Quarterly distributions of available cash







|   |                                             
|-- | --------------------------------------------
|F. | Supplemental financial statement information



|                                 |  |      |        |  |      |   |        | 
|-------------------------------- |  | ---- | ------ |  | ---- | - | ------ | 
|                                 |  | 2005 |        |  | 2004 |  
|                                 |  |      |        |  |      |  
|Propane gas and related products |  | $    | 70,380 |  |      | $ | 62,351 | 
|Appliances, parts and supplies   |  |      | 27,363 |  |      |   | 34,008 | 
|                                 |  |      |        |  |      |  
|                                 |  | $    | 97,743 |  |      | $ | 96,359 | 
|                                 |  |      |        |  |      |  

F-59



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##### Table of Contents



FERRELLGAS, L.P. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                                       |  |           |            |  |      |   |           |      |  |   |           | 
|-------------------------------------- |  | --------- | ---------- |  | ---- | - | --------- | ---- |  | - | --------- | 
|                                       |  | Estimated |            |  |      |   |          
|                                       |  | Useful    |            |  |      |   |          
|                                       |  | Lives     |            |  | 2005 |   |           | 2004 | 
|                                       |  |           |            |  |      |   |           |      | 
|Land                                   |  |           | Indefinite |  |      | $ | 32,619    |      |  | $ | 35,144    | 
|Land improvements                      |  |           | 2-20       |  |      |   | 10,139    |      |  |   | 10,182    | 
|Buildings and improvements             |  |           | 20         |  |      |   | 61,192    |      |  |   | 60,791    | 
|Vehicles, including transport trailers |  |           | 8-20       |  |      |   | 90,215    |      |  |   | 89,385    | 
|Bulk equipment and district facilities |  |           | 5-30       |  |      |   | 96,047    |      |  |   | 85,888    | 
|Tanks and customer equipment           |  |           | 2-30       |  |      |   | 746,364   |      |  |   | 732,319   | 
|Computer and office equipment          |  |           | 2-5        |  |      |   | 104,773   |      |  |   | 88,243    | 
|Construction in progress               |  |           | n/a        |  |      |   | 8,136     |      |  |   | 11,658    | 
|                                       |  |           |            |  |      |   |           |      | 
|                                       |  |           |            |  |      |   | 1,149,485 |      |  |   | 1,113,610 | 
|Less: accumulated depreciation         |  |           |            |  |      |   | 382,720   |      |  |   | 337,103   | 
|                                       |  |           |            |  |      |   |           |      | 
|                                       |  |           |            |  |      | $ | 766,765   |      |  | $ | 776,507   | 
|                                       |  |           |            |  |      |   |           |      | 







|                  |  |      |        |  |      |   |        | 
|----------------- |  | ---- | ------ |  | ---- | - | ------ | 
|                  |  | 2005 |        |  | 2004 |  
|                  |  |      |        |  |      |  
|Accrued interest  |  | $    | 21,332 |  |      | $ | 25,994 | 
|Accrued payroll   |  |      | 13,816 |  |      |   | 16,989 | 
|Accrued insurance |  |      | 8,627  |  |      |   | 6,942  | 
|Other             |  |      | 24,513 |  |      |   | 33,665 | 
|                  |  |      |        |  |      |  
|                  |  | $    | 68,288 |  |      | $ | 83,590 | 
|                  |  |      |        |  |      |  



|                                                                                              |  |                             |        |   |      |   |        |      |  |   |       |  
|--------------------------------------------------------------------------------------------- |  | --------------------------- | ------ | - | ---- | - | ------ | ---- |  | - | ----- | -
|                                                                                              |  | For the Year Ended July 31, |       
|                                                                                              |  |                             |       
|                                                                                              |  | 2005                        |        |   | 2004 |   |        | 2003 | 
|                                                                                              |  |                             |        |   |      |   |        |      | 
|Loss on disposal of assets                                                                    |  | $                           | 5,543  |   |      | $ | 6,085  |      |  | $ | 5,419 |  
|Loss on transfer of accounts receivable related to the accounts
    receivable securitization |  |                             | 5,894  |   |      |   | 2,454  |      |  |   | 2,222 |  
|Service income related to the accounts receivable securitization                              |  |                             | (2,764 | ) |      |   | (1,406 | )    |  |   | (962  | )
|                                                                                              |  |                             |        |   |      |   |        |      | 
|Loss on disposal of assets and other                                                          |  | $                           | 8,673  |   |      | $ | 7,133  |      |  | $ | 6,679 |  
|                                                                                              |  |                             |        |   |      |   |        |      | 

F-60



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##### Table of Contents



FERRELLGAS, L.P. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                      |  |                             |         |  |      |   |         |      |  |   |         | 
|------------------------------------- |  | --------------------------- | ------- |  | ---- | - | ------- | ---- |  | - | ------- | 
|                                      |  | For the Year Ended July 31, |        
|                                      |  |                             |        
|                                      |  | 2005                        |         |  | 2004 |   |         | 2003 | 
|                                      |  |                             |         |  |      |   |         |      | 
|Operating expense                     |  | $                           | 147,942 |  |      | $ | 136,768 |      |  | $ | 126,452 | 
|Depreciation and amortization expense |  |                             | 6,427   |  |      |   | 6,396   |      |  |   | 5,522   | 
|Equipment lease expense               |  |                             | 20,202  |  |      |   | 15,232  |      |  |   | 11,354  | 
|                                      |  |                             |         |  |      |   |         |      | 
|                                      |  | $                           | 174,571 |  |      | $ | 158,396 |      |  | $ | 143,328 | 
|                                      |  |                             |         |  |      |   |         |      | 



|   |                                   
|-- | ----------------------------------
|G. | Accounts receivable securitization





|                                |  |      |        |  |      |   |        | 
|------------------------------- |  | ---- | ------ |  | ---- | - | ------ | 
|                                |  | 2005 |        |  | 2004 |  
|                                |  |      |        |  |      |  
|Retained interest               |  | $    | 15,710 |  |      | $ | 5,153  | 
|Accounts receivable transferred |  | $    | 82,500 |  |      | $ | 27,125 | 





|                                                               |  |                             |       |   |      |   |     |      |  |   |       |  
|-------------------------------------------------------------- |  | --------------------------- | ----- | - | ---- | - | --- | ---- |  | - | ----- | -
|                                                               |  | For the Year Ended July 31, |      
|                                                               |  |                             |      
|                                                               |  | 2005                        |       |   | 2004 |   |     | 2003 | 
|                                                               |  |                             |       |   |      |   |     |      | 
|Net non-cash activity                                          |  | $                           | 1,101 |   |      | $ | 664 |      |  | $ | 1,807 |  
|Bad debt expense                                               |  | $                           | 466   |   |      | $ | 289 |      |  | $ | 324   |  
|Weighted average discount rate used to value retained interest |  |                             | 4.3   | % |      |   | 2.0 | %    |  |   | 1.6   | %
|Average collection cycle days                                  |  |                             | 45    |   |      |   | 45  |      |  |   | 45    |  



F-61



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##### Table of Contents



FERRELLGAS, L.P. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                    
|-- | -----------------------------------
|H. | Goodwill and intangible assets, net



|                              |                        |                              |         |         |               |  |          |          |          |          |         |         |             |              |         |         |         |  |          |          |          |   |         |         |         | 
|----------------------------- | ---------------------- | ---------------------------- | ------- | ------- | ------------- |  | -------- | -------- | -------- | -------- | ------- | ------- | ----------- | ------------ | ------- | ------- | ------- |  | -------- | -------- | -------- | - | ------- | ------- | ------- | 
|                              |                        | July 31, 2005                |         |         | July 31, 2004 | 
|                              |                        |                              |         |         |               | 
|                              |                        | Gross                        |         |         |               |  | Gross    |          |          |         
|                              |                        | Carrying                     |         |         | Accumulated   |  |          |          |          | Carrying |         |         | Accumulated |              |         |        
|                              |                        | Amount                       |         |         | Amortization  |  |          | Net      |          |          | Amount  |         |             | Amortization |         |         | Net     | 
|                              |                        |                              |         |         |               |  |          |          |          |          |         |         |             |              |         |         |         | 
|GOODWILL, NET                 |                        | $                            | 234,142 |         |               |  |         |          |          | $        | 234,142 |         |             | $            | 230,604 |         |         |  |         |          |          | $ | 230,604 |        
|INTANGIBLE ASSETS, NET        |                        |                              |         |         |               |  |          |          |          |          |         |         |             |              |         |         |         |  |          |          |          |   |         |        
|Amortized intangible assets   |                        |                              |         |         |               |  |          |          |          |          |         |         |             |              |         |         |         |  |          |          |          |   |         |        
|                              | Customer lists         |                              | $       | 335,557 |               |  | $        | (155,281 | )        |          | $       | 180,276 |             |              | $       | 324,567 |         |  | $        | (139,679 | )        |   | $       | 184,888 |        
|                              | Non-compete agreements |                              |         | 34,270  |               |  |          | (21,803  | )        |          |         | 12,467  |             |              |         | 71,697  |         |  |          | (56,468  | )        |   |         | 15,229  |        
|                              | Other                  |                              |         | 5,470   |               |  |          | (2,010   | )        |          |         | 3,460   |             |              |         | 6,289   |         |  |          | (979     | )        |   |         | 5,310   |        
|                              |                        |                              |         |         |               |  |          |          |          |          |         |         |             |              |         |         |         | 
|                              |                        |                              | 375,297 |         |               |  | (179,094 | )        |          |          | 196,203 |         |             |              | 402,553 |         |         |  | (197,126 | )        |          |   | 205,427 |        
|Unamortized intangible assets |                        |                              |         |         |               |  |          |          |          |          |         |         |             |              |         |         |         |  |          |          |          |   |         |        
|Tradenames & trademarks       |                        |                              | 59,074  |         |               |  |         |          |          |          | 59,074  |         |             |              | 59,000  |         |         |  |         |          |          |   | 59,000  |        
|                              |                        |                              |         |         |               |  |          |          |          |          |         |         |             |              |         |         |         | 
|                              |                        | Total intangible assets, net |         | $       | 434,371       |  |          | $        | (179,094 | )        |         | $       | 255,277     |              |         | $       | 461,553 |  |          | $        | (197,126 | ) |         | $       | 264,427 | 
|                              |                        |                              |         |         |               |  |          |          |          |          |         |         |             |              |         |         |         | 







| |                                
| | -------------------------------
| | Aggregate amortization expense:

|                            |  |   |        | 
|--------------------------- |  | - | ------ | 
|For the year ended July 31, | 
|                            | 
|2005                        |  | $ | 22,987 | 
|2004                        |  |   | 15,893 | 
|2003                        |  |   | 12,539 | 

Estimated amortization
expense:


|                            |  |   |        | 
|--------------------------- |  | - | ------ | 
|For the year ended July 31, | 
|                            | 
|2006                        |  | $ | 21,550 | 
|2007                        |  |   | 20,050 | 
|2008                        |  |   | 18,103 | 
|2009                        |  |   | 17,063 | 
|2010                        |  |   | 16,043 | 

F-62



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##### Table of Contents



FERRELLGAS, L.P. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |               
|-- | --------------
|I. | Long-term debt



|                                                                                                                                                                                                        |                                                                                                                |      |         |         |      |   |         |         | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------- | ---- | ------- | ------- | ---- | - | ------- | ------- | 
|                                                                                                                                                                                                        |                                                                                                                | 2005 |         |         | 2004 |  
|                                                                                                                                                                                                        |                                                                                                                |      |         |         |      |  
|Senior notes                                                                                                                                                                                            |                                                                                                                |      |         |         |      |   |         |        
|                                                                                                                                                                                                        | Fixed rate, Series A, 7.16% due 2005(1)                                                                        |      | $       |        |      |   | $       | 109,000 | 
|                                                                                                                                                                                                        | Fixed rate, Series B-E, 7.16% due 2006-2013(2)                                                                 |      |         | 241,000 |      |   |         | 241,000 | 
|                                                                                                                                                                                                        | Fixed rate, 8.87%, due 2006-2009(3)                                                                            |      |         | 184,000 |      |   |         | 184,000 | 
|                                                                                                                                                                                                        | Fixed rate, 6.75% due 2014, net of unamortized discount of $791
    and $882 at 2005 and 2004, respectively(4) |      |         | 249,209 |      |   |         | 249,118 | 
|Credit agreement,variable interest rates, expiring 2010                                                                                                                                                 |                                                                                                                |      |        |         |      |   | 92,900  |        
|Notes payable,7.2% and 7.3% weighted average interest
    rates in 2005 and 2004, respectively, due 2005 to 2011, net of
    unamortized discount of $747 and $1,304 at 2005 and 2004,
    respectively |                                                                                                                |      | 6,440   |         |      |   | 9,014   |        
|Capital lease obligations                                                                                                                                                                               |                                                                                                                |      | 220     |         |      |   | 469     |        
|                                                                                                                                                                                                        |                                                                                                                |      |         |         |      |  
|                                                                                                                                                                                                        |                                                                                                                |      | 680,869 |         |      |   | 885,501 |        
|Less: current portion, included in other current liabilities on
    the consolidated balance sheets                                                                                                     |                                                                                                                |      | 2,502   |         |      |   | 2,839   |        
|                                                                                                                                                                                                        |                                                                                                                |      |         |         |      |  
|                                                                                                                                                                                                        |                                                                                                                | $    | 678,367 |         |      | $ | 882,662 |        
|                                                                                                                                                                                                        |                                                                                                                |      |         |         |      |  






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Ferrellgas, L.P. fixed rate senior notes, issued in August 1998,
    are general unsecured obligations of Ferrellgas, L.P. and rank
    on an equal basis in right of payment with all senior
    indebtedness of Ferrellgas, L.P. and senior to all subordinated
    indebtedness of Ferrellgas, L.P. The outstanding principal
    amounts of $109.0 million due on August 1, 2005, was
    retired on July 29, 2005. Prepayment penalties associated
    with this transaction were not significant.                                                                                          
|   
|(2) | Ferrellgas, L.P. fixed rate senior notes, issued in August 1998,
    are general unsecured obligations of Ferrellgas, L.P. and rank
    on an equal basis in right of payment with all senior
    indebtedness of Ferrellgas, L.P. and senior to all subordinated
    indebtedness of Ferrellgas, L.P. The outstanding principal
    amount of the series B, C, D and E notes shall be due on
    August 1, 2006, 2008, 2010, and 2013, respectively. In
    general, Ferrellgas, L.P. does not have the option to prepay the
    notes prior to maturity without incurring prepayment penalties.
|   
|(3) | Ferrellgas, L.P. fixed rate senior notes, issued in February
    2000, are general unsecured obligations of Ferrellgas, L.P. and
    rank on an equal basis in right of payment with all senior
    indebtedness of Ferrellgas, L.P. and senior to all subordinated
    indebtedness of Ferrellgas, L.P. The outstanding principal
    amount of the series A, B and C notes are due on
    August 1, 2006, 2007 and 2009, respectively. In general,
    Ferrellgas, L.P. does not have the option to prepay the notes
    prior to maturity without incurring prepayment penalties.             
|   
|(4) | On Ferrellgas, L.P. fixed rate senior notes, issued in April
    2004 are general unsecured obligations of the Ferrellgas, L.P.
    and rank on an equal basis in right of payment with all senior
    indebtedness of Ferrellgas, L.P. and senior to all subordinated
    indebtedness of Ferrellgas, L.P. The outstanding principal
    amount is due on May 1, 2014. In general, the Ferrellgas,
    L.P. does not have the option to prepay the notes prior to
    maturity without incurring prepayment penalties.                                                                          



F-63



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##### Table of Contents



FERRELLGAS, L.P. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








| |   |                                                                                                                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the base rate, which is defined as the higher of the federal
    funds rate plus 0.50% or Bank of Americas prime rate (as
    of July 31, 2005, the federal funds rate and Bank of
    Americas prime rate were 3.31% and 6.25%,
    respectively); or
|
| |  | the Eurodollar Rate plus a margin varying from 1.50% to 2.50%
    (as of July 31, 2005, the one-month Eurodollar Rate was
    3.46%).                                                                                                                   









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##### Table of Contents



FERRELLGAS, L.P. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                            |  |           |         | 
|--------------------------- |  | --------- | ------- | 
|                            |  | Scheduled |        
|                            |  | Annual    |        
|                            |  | Principal |        
|For the year ended July 31, |  | Payments  |        
|                            |  |           |        
|2006                        |  | $         | 2,868   | 
|2007                        |  |           | 59,880  | 
|2008                        |  |           | 91,402  | 
|2009                        |  |           | 52,866  | 
|2010                        |  |           | 73,191  | 
|Thereafter                  |  |           | 402,200 | 
|                            |  |           |        
|Total                       |  | $         | 682,407 | 
|                            |  |           |        





|   |                  
|-- | -----------------
|J. | Partners capital











|   |            
|-- | -----------
|K. | Derivatives



F-65



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##### Table of Contents



FERRELLGAS, L.P. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                                                       |  |      |        |   |      |   |       |  
|------------------------------------------------------ |  | ---- | ------ | - | ---- | - | ----- | -
|                                                       |  | 2005 |        |   | 2004 |  
|                                                       |  |      |        |   |      |  
|Fair value adjustment classified as OCI                |  | $    | 70     |   |      | $ | 1,911 |  
|Reclassification of net gains to statement of earnings |  | $    | (1,772 | ) |      | $ | (139  | )







F-66



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##### Table of Contents



FERRELLGAS, L.P. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                                                   |  |                             |        |   |      |   |        |      |  |   |        |  
|------------------------------------------------------------------------------------------------------------------ |  | --------------------------- | ------ | - | ---- | - | ------ | ---- |  | - | ------ | -
|                                                                                                                   |  | For the Year Ended July 31, |       
|                                                                                                                   |  |                             |       
|                                                                                                                   |  | 2005                        |        |   | 2004 |   |        | 2003 | 
|                                                                                                                   |  |                             |        |   |      |   |        |      | 
|Net fair value of contracts outstanding at the beginning of the
    period                                         |  | $                           | 424    |   |      | $ | (1,718 | )    |  | $ | (4,569 | )
|Contracts outstanding at the beginning of the period that were
    realized or otherwise settled during the period |  |                             | (9,672 | ) |      |   | 458    |      |  |   | 5,921  |  
|Fair value of new contracts entered into during the period                                                         |  |                             | 9,364  |   |      |   | 1,684  |      |  |   | (3,070 | )
|                                                                                                                   |  |                             |        |   |      |   |        |      | 
|Unrealized gains (losses) in fair value of contracts                                                               |  | $                           | 116    |   |      | $ | 424    |      |  | $ | (1,718 | )
|                                                                                                                   |  |                             |        |   |      |   |        |      | 



|                                                                             |  |                            |     |              |              |   |   | 
|---------------------------------------------------------------------------- |  | -------------------------- | --- | ------------ | ------------ | - | - | 
|                                                                             |  | Fair Value of Contracts at
|                                                                             |  | Period-End                
|                                                                             |  |                           
|                                                                             |  |                            |     | Maturity    
|                                                                             |  |                            |     | Greater Than
|                                                                             |  | Maturity                   |     |              | 1 Year and  
|                                                                             |  | Less Than                  |     |              | Less Than 18
|Source of Fair Value                                                         |  | 1 Year                     |     |              | Months      
|                                                                             |  |                            |     |              |             
|Prices provided by external sources                                          |  | $                          | 116 |              |              | $ |  | 
|                                                                             |  |                            |     |              |              |  
|Unrealized gains in fair value of contracts outstanding at
    July 31, 2005 |  | $                          | 116 |              |              | $ |  | 
|                                                                             |  |                            |     |              |              |  
|Prices actively quoted                                                       |  | $                          | 151 |              |              | $ |  | 
|Prices provided by external sources                                          |  |                            | 273 |              |              |   |  | 
|                                                                             |  |                            |     |              |              |  
|Unrealized gains in fair value of contracts outstanding at
    July 31, 2004 |  | $                          | 424 |              |              | $ |  | 
|                                                                             |  |                            |     |              |              |  



|                                 |  |                |        | 
|-------------------------------- |  | -------------- | ------ | 
|                                 |  | (In thousands) |       
|For the year ended July 31, 2005 |  |                | 10,717 | 
|For the year ended July 31, 2004 |  |                | 18,206 | 
|For the year ended July 31, 2003 |  |                | 13,805 | 





|   |                                  
|-- | ---------------------------------
|L. | Transactions with related parties



| |                                    
| | -----------------------------------
| | General and administrative expenses



F-67



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##### Table of Contents



FERRELLGAS, L.P. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                   |  |                             |         |  |      |   |         |      |  |   |         | 
|------------------ |  | --------------------------- | ------- |  | ---- | - | ------- | ---- |  | - | ------- | 
|                   |  | For the Year Ended July 31, |        
|                   |  |                             |        
|                   |  | 2005                        |         |  | 2004 |   |         | 2003 | 
|                   |  |                             |         |  |      |   |         |      | 
|Reimbursable costs |  | $                           | 231,635 |  |      | $ | 211,502 |      |  | $ | 201,333 | 



| |                               
| | ------------------------------
| | Partnership distributions paid





| |           
| | ----------
| | Operations



|                                            |  |                             |        |   |      |   |     |      |  |   |      |  
|------------------------------------------- |  | --------------------------- | ------ | - | ---- | - | --- | ---- |  | - | ---- | -
|                                            |  | For the Year Ended July 31, |       
|                                            |  |                             |       
|                                            |  | 2005                        |        |   | 2004 |   |     | 2003 | 
|                                            |  |                             |        |   |      |   |     |      | 
|Net receipts (disbursements)                |  | $                           | (2,699 | ) |      | $ | 328 |      |  | $ | (245 | )
|Receipts from providing accounting services |  |                             | 40     |   |      |   | 40  |      |  |   | 40   |  







|   |                              
|-- | -----------------------------
|M. | Contingencies and commitments



| |           
| | ----------
| | Litigation



F-68



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##### Table of Contents



FERRELLGAS, L.P. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                   
| | ----------------------------------
| | Long-term debt-related commitments





| |                                        
| | ---------------------------------------
| | Operating lease commitments and buyouts









|                            |  |                                                         |        |  |      |   |        |      |  |   |        |  |  |      |        |  |            |   |        |  |  |   |        | 
|--------------------------- |  | ------------------------------------------------------- | ------ |  | ---- | - | ------ | ---- |  | - | ------ |  |  | ---- | ------ |  | ---------- | - | ------ |  |  | - | ------ | 
|                            |  | Future Minimum Rental and Buyout Amounts by Fiscal Year |       
|                            |  |                                                         |       
|                            |  | 2006                                                    |        |  | 2007 |   |        | 2008 |  |   | 2009   |  |  | 2010 |        |  | Thereafter |  
|                            |  |                                                         |        |  |      |   |        |      |  |   |        |  |  |      |        |  |            |  
|Operating lease obligations |  | $                                                       | 32,630 |  |      | $ | 27,365 |      |  | $ | 22,310 |  |  | $    | 15,687 |  |            | $ | 10,151 |  |  | $ | 19,383 | 
|Operating lease buyouts     |  | $                                                       | 4,857  |  |      | $ | 7,395  |      |  | $ | 2,610  |  |  | $    | 6,261  |  |            | $ | 2,105  |  |  | $ | 6,114  | 
|Capital lease obligations   |  | $                                                       | 147    |  |      | $ | 33     |      |  | $ | 27     |  |  | $    | 30     |  |            | $ |       |  |  | $ |       | 





|   |                  
|-- | -----------------
|N. | Employee benefits





F-69



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##### Table of Contents



FERRELLGAS, L.P. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










|   |                                                                               
|-- | ------------------------------------------------------------------------------
|O. | Unit options of Ferrellgas Partners and stock options of
    Ferrell Companies



F-70



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##### Table of Contents



FERRELLGAS, L.P. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                   |  |           |           |   |                  |  |       | 
|---------------------------------- |  | --------- | --------- | - | ---------------- |  | ----- | 
|                                   |  | Number of |           |   | Weighted Average | 
|                                   |  | Units     |           |   | Exercise Price   | 
|                                   |  |           |           |   |                  | 
|Outstanding, August 1, 2002        |  |           | 1,075,400 |   |                  |  | 18.15 | 
|Exercised                          |  |           | (368,900  | ) |                  |  | 18.05 | 
|Forfeited                          |  |           | (2,400    | ) |                  |  | 18.80 | 
|                                   |  |           |           |   |                  | 
|Outstanding, July 31, 2003         |  |           | 704,100   |   |                  |  | 18.20 | 
|Exercised                          |  |           | (233,924  | ) |                  |  | 18.08 | 
|Forfeited                          |  |           |          |   |                  |  |      | 
|                                   |  |           |           |   |                  | 
|Outstanding, July 31, 2004         |  |           | 470,176   |   |                  |  | 18.26 | 
|Exercised                          |  |           | (26,450   | ) |                  |  | 17.91 | 
|Forfeited                          |  |           | (99,050   | ) |                  |  | 17.28 | 
|                                   |  |           |           |   |                  | 
|Outstanding, July 31, 2005         |  |           | 344,676   |   |                  |  | 18.52 | 
|                                   |  |           |           |   |                  | 
|Options exercisable, July 31, 2005 |  |           | 313,526   |   |                  |  | 18.38 | 
|                                   |  |           |           |   |                  | 
|Options exercisable, July 31, 2004 |  |           | 245,776   |   |                  |  | 18.52 | 
|                                   |  |           |           |   |                  | 
|Options exercisable, July 31, 2003 |  |           | 364,300   |   |                  |  | 18.43 | 
|                                   |  |           |           |   |                  | 

|                                               |  |                        |              | 
|---------------------------------------------- |  | ---------------------- | ------------ | 
|                                               |  | Options Outstanding at |             
|                                               |  | July 31, 2004          |             
|                                               |  |                        |             
|Range of option exercise prices at end of year |  | $                      | 16.80-$21.67 | 
|Weighted average remaining contractual life    |  |                        | 4.5 Years    | 





|   |                           
|-- | --------------------------
|P. | Quarterly data (unaudited)



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FERRELLGAS, L.P. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


For the year ended July 31, 2005


|                                                                              |  |         |         |   |         |   |         |         |  |   |         |  |  |   |         |  
|----------------------------------------------------------------------------- |  | ------- | ------- | - | ------- | - | ------- | ------- |  | - | ------- |  |  | - | ------- | -
|                                                                              |  | First   |         |   | Second  |   |         | Third   |  |   | Fourth  | 
|                                                                              |  | Quarter |         |   | Quarter |   |         | Quarter |  |   | Quarter | 
|                                                                              |  |         |         |   |         |   |         |         |  |   |         | 
|Revenues                                                                      |  | $       | 343,772 |   |         | $ | 621,891 |         |  | $ | 492,101 |  |  | $ | 296,350 |  
|Gross profit (exclusive of depreciation, shown with amortization)             |  |         | 112,540 |   |         |   | 217,267 |         |  |   | 177,750 |  |  |   | 106,259 |  
|Earnings (loss) from continuing operations before discontinued
    operations |  |         | (31,022 | ) |         |   | 60,263  |         |  |   | 24,595  |  |  |   | (44,708 | )
|Earnings from discontinued operations (including gain on sale of
    $97,001) |  |         | 1,803   |   |         |   | 3,633   |         |  |   | 1,799   |  |  |   | 98,017  |  
|Net earnings (loss)                                                           |  |         | (29,219 | ) |         |   | 63,896  |         |  |   | 26,394  |  |  |   | 53,309  |  

For the year ended July 31, 2004


|                                                                              |  |         |         |   |         |   |         |         |  |   |         |  |  |   |         |  
|----------------------------------------------------------------------------- |  | ------- | ------- | - | ------- | - | ------- | ------- |  | - | ------- |  |  | - | ------- | -
|                                                                              |  | First   |         |   | Second  |   |         | Third   |  |   | Fourth  | 
|                                                                              |  | Quarter |         |   | Quarter |   |         | Quarter |  |   | Quarter | 
|                                                                              |  |         |         |   |         |   |         |         |  |   |         | 
|Revenues                                                                      |  | $       | 241,489 |   |         | $ | 453,337 |         |  | $ | 370,008 |  |  | $ | 243,552 |  
|Gross profit (exclusive of depreciation, shown with amortization)             |  |         | 93,937  |   |         |   | 189,842 |         |  |   | 153,947 |  |  |   | 104,256 |  
|Earnings (loss) from continuing operations before discontinued
    operations |  |         | (15,137 | ) |         |   | 68,399  |         |  |   | 32,187  |  |  |   | (44,039 | )
|Earnings from discontinued operations                                         |  |         | 1,446   |   |         |   | 4,209   |         |  |   | 1,048   |  |  |   | 1,428   |  
|Net earnings (loss)                                                           |  |         | (13,691 | ) |         |   | 72,608  |         |  |   | 33,235  |  |  |   | (42,611 | )

F-72



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##### Table of Contents






REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM














/s/ Deloitte & Touche
LLP






F-73



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##### Table of Contents



FERRELLGAS FINANCE CORP.


(a wholly-owned subsidiary of Ferrellgas, L.P.)





BALANCE SHEETS


|                                                                                                |  |          |        |   |      |   |       |  
|----------------------------------------------------------------------------------------------- |  | -------- | ------ | - | ---- | - | ----- | -
|                                                                                                |  | July 31, |       
|                                                                                                |  |          |       
|                                                                                                |  | 2005     |        |   | 2004 |  
|                                                                                                |  |          |        |   |      |  
|ASSETS                                                                                         
|Cash                                                                                            |  | $        | 1,000  |   |      | $ | 1,000 |  
|                                                                                                |  |          |        |   |      |  
|Total assets                                                                                    |  | $        | 1,000  |   |      | $ | 1,000 |  
|                                                                                                |  |          |        |   |      |  
|STOCKHOLDERS EQUITY                                                                           
|Common stock, $1.00 par value; 2,000 shares
    authorized; 1,000 shares issued and outstanding |  | $        | 1,000  |   |      | $ | 1,000 |  
|Additional paid in capital                                                                      |  |          | 1,345  |   |      |   | 929   |  
|Accumulated deficit                                                                             |  |          | (1,345 | ) |      |   | (929  | )
|                                                                                                |  |          |        |   |      |  
|Total stockholders equity                                                                      |  | $        | 1,000  |   |      | $ | 1,000 |  
|                                                                                                |  |          |        |   |      |  



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##### Table of Contents



FERRELLGAS FINANCE CORP.


(a wholly-owned subsidiary of Ferrellgas, L.P.)





STATEMENTS OF EARNINGS


|                                   |  |            |      |   |            |   |      |              |  |   |      |  
|---------------------------------- |  | ---------- | ---- | - | ---------- | - | ---- | ------------ |  | - | ---- | -
|                                   |  | For the    |      |   | For the    |   |      | From         | 
|                                   |  | Year Ended |      |   | Year Ended |   |      | Inception to | 
|                                   |  | July 31,   |      |   | July 31,   |   |      | July 31,     | 
|                                   |  | 2005       |      |   | 2004       |   |      | 2003         | 
|                                   |  |            |      |   |            |   |      |              | 
|Revenues                           |  | $          |     |   |            | $ |     |              |  | $ |     |  
|General and administrative expense |  |            | 416  |   |            |   | 414  |              |  |   | 515  |  
|                                   |  |            |      |   |            |   |      |              | 
|Net loss                           |  | $          | (416 | ) |            | $ | (414 | )            |  | $ | (515 | )
|                                   |  |            |      |   |            |   |      |              | 



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FERRELLGAS FINANCE CORP.


(a wholly-owned subsidiary of Ferrellgas, L.P.)





STATEMENTS OF STOCKHOLDERS EQUITY


|                       |  |              |       |  |            |   |       |             |  |       |               |  |  |        |        |   |  |   |       |  
|---------------------- |  | ------------ | ----- |  | ---------- | - | ----- | ----------- |  | ----- | ------------- |  |  | ------ | ------ | - |  | - | ----- | -
|                       |  | Common Stock |       |  | Additional |   |       |             |  | Total |              
|                       |  |              |       |  | Paid in    |   |       | Accumulated |  |       | Stockholders | 
|                       |  | Shares       |       |  | Dollars    |   |       | Capital     |  |       | Deficit       |  |  | Equity |       
|                       |  |              |       |  |            |   |       |             |  |       |               |  |  |        |       
|January 16, 2003       |  |              |      |  |            | $ |      |             |  | $     |              |  |  | $      |       |   |  | $ |      |  
|Initial capitalization |  |              | 1,000 |  |            |   | 1,000 |             |  |       |              |  |  |        |       |   |  |   | 1,000 |  
|Capital contribution   |  |              |      |  |            |   |      |             |  |       | 515           |  |  |        |       |   |  |   | 515   |  
|Net loss               |  |              |      |  |            |   |      |             |  |       |              |  |  |        | (515   | ) |  |   | (515  | )
|                       |  |              |       |  |            |   |       |             |  |       |               |  |  |        |       
|July 31, 2003          |  |              | 1,000 |  |            |   | 1,000 |             |  |       | 515           |  |  |        | (515   | ) |  |   | 1,000 |  
|Capital contribution   |  |              |      |  |            |   |      |             |  |       | 414           |  |  |        |       |   |  |   | 414   |  
|Net loss               |  |              |      |  |            |   |      |             |  |       |              |  |  |        | (414   | ) |  |   | (414  | )
|                       |  |              |       |  |            |   |       |             |  |       |               |  |  |        |       
|July 31, 2004          |  |              | 1,000 |  |            |   | 1,000 |             |  |       | 929           |  |  |        | (929   | ) |  |   | 1,000 |  
|Capital contribution   |  |              |      |  |            |   |      |             |  |       | 416           |  |  |        |       |   |  |   | 416   |  
|Net loss               |  |              |      |  |            |   |      |             |  |       |              |  |  |        | (416   | ) |  |   | (416  | )
|                       |  |              |       |  |            |   |       |             |  |       |               |  |  |        |       
|July 31, 2005          |  |              | 1,000 |  |            | $ | 1,000 |             |  | $     | 1,345         |  |  | $      | (1,345 | ) |  | $ | 1,000 |  
|                       |  |              |       |  |            |   |       |             |  |       |               |  |  |        |       



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FERRELLGAS FINANCE CORP.


(a wholly-owned subsidiary of Ferrellgas, L.P.)





STATEMENTS OF CASH FLOWS


|                                      |                      |                                       |       |      |            |   |       |              |      |   |       |       |       |  
|------------------------------------- | -------------------- | ------------------------------------- | ----- | ---- | ---------- | - | ----- | ------------ | ---- | - | ----- | ----- | ----- | -
|                                      |                      | For the                               |       |      | For the    |   |       | From         |     
|                                      |                      | Year Ended                            |       |      | Year Ended |   |       | Inception to |     
|                                      |                      | July 31,                              |       |      | July 31,   |   |       | July 31,     |     
|                                      |                      | 2005                                  |       |      | 2004       |   |       | 2003         |     
|                                      |                      |                                       |       |      |            |   |       |              |     
|Cash flows from operating activities: |                      |                                       |       |      |            |   |       |              |      |   |       |      
|                                      | Net loss             |                                       | $     | (416 | )          |   | $     | (414         | )    |   | $     | (515  | )    
|                                      |                      |                                       |       |      |            |   |       |              |     
|                                      |                      | Cash used by operating activities     |       |      | (416       | ) |       |              | (414 | ) |       |       | (515  | )
|                                      |                      |                                       |       |      |            |   |       |              |     
|Cash flows from financing activities: |                      |                                       |       |      |            |   |       |              |      |   |       |      
|                                      | Capital contribution |                                       |       | 416  |            |   |       | 414          |      |   |       | 1,515 |      
|                                      |                      |                                       |       |      |            |   |       |              |     
|                                      |                      | Cash provided by financing activities |       |      | 416        |   |       |              | 414  |   |       |       | 1,515 |  
|                                      |                      |                                       |       |      |            |   |       |              |     
|Change in cash                        |                      |                                       |      |      |            |   |      |              |      |   | 1,000 |      
|Cash  beginning of year              |                      |                                       | 1,000 |      |            |   | 1,000 |              |      |   |      |      
|                                      |                      |                                       |       |      |            |   |       |              |     
|Cash  end of year                    |                      | $                                     | 1,000 |      |            | $ | 1,000 |              |      | $ | 1,000 |      
|                                      |                      |                                       |       |      |            |   |       |              |     



F-77



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##### Table of Contents



FERRELLGAS FINANCE CORP.


(a wholly-owned subsidiary of Ferrellgas, L.P.)





NOTES TO FINANCIAL STATEMENTS




|   |          
|-- | ---------
|A. | Formation





|   |           
|-- | ----------
|B. | Commitment

3 4




|   |             
|-- | ------------
|C. | Income Taxes



F-78



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##### Table of Contents



INDEX TO FINANCIAL STATEMENT SCHEDULES


|                                           |  |                                                                                                                                                            |  |      |     | 
|------------------------------------------ |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | --- | 
|                                           |  |                                                                                                                                                            |  | Page |    
|                                           |  |                                                                                                                                                            |  |      |    
|Ferrellgas Partners, L.P. and Subsidiaries |  |                                                                                                                                                            |  |     
|Schedule I                                 |  | Parent Only Balance Sheets as of
    July 31, 2005 and 2004 and Statements of Earnings and Cash
    Flows for the years ended July 31, 2005, 2004 and 2003 |  |      | S-2 | 
|Schedule II                                |  | Valuation and Qualifying Accounts for the
    years ended July 31, 2005, 2004 and 2003                                                                     |  |      | S-5 | 
|Ferrellgas, L.P. and Subsidiaries          |  |                                                                                                                                                            |  |     
|Schedule II                                |  | Valuation and Qualifying Accounts for the
    years ended July 31, 2005, 2004 and 2003                                                                     |  |      | S-6 | 

S-1



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##### Table of Contents



Schedule I


FERRELLGAS PARTNERS, L.P.


PARENT ONLY





BALANCE SHEETS


(In thousands, except unit data)


|                                          |                                                                                                                                        |                                         |         |         |         |   |         |         |         | 
|----------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------- | ------- | ------- | ------- | - | ------- | ------- | ------- | 
|                                          |                                                                                                                                        | July 31,                                |        
|                                          |                                                                                                                                        |                                         |        
|                                          |                                                                                                                                        | 2005                                    |         |         | 2004    |  
|                                          |                                                                                                                                        |                                         |         |         |         |  
|ASSETS                                   
|Cash and cash equivalents                 |                                                                                                                                        | $                                       | 314     |         |         | $ | 1,677   |        
|Prepaid expenses and other current assets |                                                                                                                                        |                                         | 740     |         |         |   | 737     |        
|Investment in Ferrellgas, L.P.            |                                                                                                                                        |                                         | 602,836 |         |         |   | 470,776 |        
|Other assets, net                         |                                                                                                                                        |                                         | 3,648   |         |         |   | 4,771   |        
|                                          |                                                                                                                                        |                                         |         |         |         |  
|                                          |                                                                                                                                        | Total assets                            |         | $       | 607,538 |   |         | $       | 477,961 | 
|                                          |                                                                                                                                        |                                         |         |         |         |  
|                                         
|LIABILITIES AND PARTNERS CAPITAL        
|Accounts payable                          |                                                                                                                                        | $                                       |        |         |         | $ | 147     |        
|Other current liabilities                 |                                                                                                                                        |                                         | 3,247   |         |         |   | 4,723   |        
|Long term debt                            |                                                                                                                                        |                                         | 270,610 |         |         |   | 270,989 |        
|Other liabilities                         |                                                                                                                                        |                                         | 3       |         |         |   | 3       |        
|Partners capital                         |                                                                                                                                        |                                         |         |         |         |   |         |        
|                                          | Senior unitholder (0 and 1,994,146 units outstanding and
    liquidation preference $0 and $79,766 at 2005 and 2004,
    respectively) |                                         |         |        |         |   |         | 79,766  |        
|                                          | Common unitholders (60,134,054 and 48,772,875 units
    outstanding in 2005 and 2004, respectively)                                    |                                         |         | 390,422 |         |   |         | 178,994 |        
|                                          | General partner (607,415 and 512,798 units outstanding at
    2005 and 2004, respectively)                                             |                                         |         | (56,132 | )       |   |         | (57,391 | )      
|                                          | Accumulated other comprehensive income (loss)                                                                                          |                                         |         | (612    | )       |   |         | 730     |        
|                                          |                                                                                                                                        |                                         |         |         |         |  
|                                          |                                                                                                                                        | Total partners capital                 |         |         | 333,678 |   |         |         | 202,099 | 
|                                          |                                                                                                                                        |                                         |         |         |         |  
|                                          |                                                                                                                                        | Total liabilities and partners capital |         | $       | 607,538 |   |         | $       | 477,961 | 
|                                          |                                                                                                                                        |                                         |         |         |         |  

S-2



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##### Table of Contents



Schedule I


FERRELLGAS PARTNERS, L.P.


PARENT ONLY


STATEMENTS OF EARNINGS


(In thousands)


|                                       |                  |                             |         |         |      |   |         |        |  |   |         |        | 
|-------------------------------------- | ---------------- | --------------------------- | ------- | ------- | ---- | - | ------- | ------ |  | - | ------- | ------ | 
|                                       |                  | For the Year Ended July 31, |        
|                                       |                  |                             |        
|                                       |                  | 2005                        |         |         | 2004 |   |         | 2003   | 
|                                       |                  |                             |         |         |      |   |         |        | 
|Equity in earnings of Ferrellgas, L.P. |                  | $                           | 114,380 |         |      | $ | 49,541  |        |  | $ | 82,573  |       
|Operating expense                      |                  |                             | 326     |         |      |   | 266     |        |  |   | 435     |       
|                                       |                  |                             |         |         |      |   |         |        | 
|                                       | Operating income |                             |         | 114,054 |      |   |         | 49,275 |  |   |         | 82,138 | 
|Interest expense                       |                  |                             | (23,798 | )       |      |   | (20,296 | )      |  |   | (18,205 | )     
|Interest income                        |                  |                             | 3       |         |      |   |        |        |  |   | 10      |       
|Early extinguishment of debt expense   |                  |                             |        |         |      |   |        |        |  |   | (7,052  | )     
|Other income (expense)                 |                  |                             | (290    | )       |      |   | 71      |        |  |   | (142    | )     
|                                       |                  |                             |         |         |      |   |         |        | 
|                                       | Net earnings     |                             | $       | 89,969  |      |   | $       | 29,050 |  |   | $       | 56,749 | 
|                                       |                  |                             |         |         |      |   |         |        | 

S-3



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##### Table of Contents



Schedule I


FERRELLGAS PARTNERS, L.P.


PARENT ONLY


STATEMENTS OF CASH FLOWS


(In thousands)


|                                                 |                                                                                                                 |                                                                              |                                        |                                                     |      |          |         |          |   |         |          |          |   |         |         |  
|------------------------------------------------ | --------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------- | -------------------------------------- | --------------------------------------------------- | ---- | -------- | ------- | -------- | - | ------- | -------- | -------- | - | ------- | ------- | -
|                                                 |                                                                                                                 | For the Year Ended July 31,                                                  |                                       
|                                                 |                                                                                                                 |                                                                              |                                       
|                                                 |                                                                                                                 | 2005                                                                         |                                        |                                                     | 2004 |          |         | 2003     |  
|                                                 |                                                                                                                 |                                                                              |                                        |                                                     |      |          |         |          |  
|Cash flows from operating activities:            |                                                                                                                 |                                                                              |                                        |                                                     |      |          |         |          |   |         |          |         
|                                                 | Net earnings                                                                                                    |                                                                              | $                                      | 89,969                                              |      |          | $       | 29,050   |   |         | $        | 56,749   |  
|                                                 | Early extinguishment of debt expenses                                                                           |                                                                              |                                        |                                                    |      |          |         | 0        |   |         |          | 1,854    |  
|                                                 |                                                                                                                 | Reconciliation of net earnings to net cash used in operating
    activities: |                                        |                                                     |      |          |         |          |   |         |          |          |   |        
|                                                 |                                                                                                                 |                                                                              | Other                                  |                                                     |      | (613     | )       |          |   | 1,232   |          |          |   | 1,202   |        
|                                                 |                                                                                                                 |                                                                              | Equity in earnings of Ferrellgas, L.P. |                                                     |      | (114,380 | )       |          |   | (49,541 | )        |          |   | (82,573 | )      
|                                                 |                                                                                                                 |                                                                              |                                        |                                                     |      |          |         |          |  
|                                                 |                                                                                                                 |                                                                              |                                        | Net cash used in operating activities               |      |          | (25,024 | )        |   |         | (19,259  | )        |   |         | (22,768 | )
|                                                 |                                                                                                                 |                                                                              |                                        |                                                     |      |          |         |          |  
|Cash flows from investing activities:            |                                                                                                                 |                                                                              |                                        |                                                     |      |          |         |          |   |         |          |         
|                                                 | Distributions received from Ferrellgas, L.P.                                                                    |                                                                              |                                        | 139,657                                             |      |          |         | 110,958  |   |         |          | 101,200  |  
|                                                 | Business acquisitions, net of cash acquired                                                                     |                                                                              |                                        | (125                                                | )    |          |         |         |   |         |          | (32,000  | )
|                                                 | Cash contributed to Ferrellgas, L.P.                                                                            |                                                                              |                                        | (138,539                                            | )    |          |         | (281,437 | ) |         |          | (17,576  | )
|                                                 |                                                                                                                 |                                                                              |                                        |                                                     |      |          |         |          |  
|                                                 |                                                                                                                 |                                                                              |                                        | Net cash provided by (used in) investing activities |      |          | 993     |          |   |         | (170,479 | )        |   |         | 51,624  |  
|                                                 |                                                                                                                 |                                                                              |                                        |                                                     |      |          |         |          |  
|Cash flows from financing activities:            |                                                                                                                 |                                                                              |                                        |                                                     |      |          |         |          |   |         |          |         
|                                                 | Distributions                                                                                                   |                                                                              |                                        | (116,007                                            | )    |          |         | (91,882  | ) |         |          | (84,729  | )
|                                                 | Proceeds from issuance of debt                                                                                  |                                                                              |                                        |                                                    |      |          |         | 51,625   |   |         |          | 219,680  |  
|                                                 | Principal payments on debt                                                                                      |                                                                              |                                        |                                                    |      |          |         | (8,454   | ) |         |          | (160,000 | )
|                                                 | Cash paid for financing costs                                                                                   |                                                                              |                                        | (82                                                 | )    |          |         | (690     | ) |         |          | (5,342   | )
|                                                 | Issuance of common units, net of issuance costs of $569, $676
    and $195 in 2005, 2004 and 2003, respectively |                                                                              |                                        | 136,824                                             |      |          |         | 236,029  |   |         |          | 26,153   |  
|                                                 | Redemption of senior units                                                                                      |                                                                              |                                        |                                                    |      |          |         |         |   |         |          | (31,522  | )
|                                                 | Proceeds from exercise of common unit options                                                                   |                                                                              |                                        | 472                                                 |      |          |         | 4,223    |   |         |          | 6,725    |  
|                                                 | Other                                                                                                           |                                                                              |                                        | 1,461                                               |      |          |         | 226      |   |         |          | 124      |  
|                                                 |                                                                                                                 |                                                                              |                                        |                                                     |      |          |         |          |  
|                                                 |                                                                                                                 |                                                                              |                                        | Net cash provided by (used in) financing activities |      |          | 22,668  |          |   |         | 191,077  |          |   |         | (28,911 | )
|                                                 |                                                                                                                 |                                                                              |                                        |                                                     |      |          |         |          |  
|Increase (decrease) in cash and cash equivalents |                                                                                                                 |                                                                              | (1,363                                 | )                                                   |      |          | 1,339   |          |   |         | (55      | )       
|Cash and cash equivalents  beginning of year    |                                                                                                                 |                                                                              | 1,677                                  |                                                     |      |          | 338     |          |   |         | 393      |         
|                                                 |                                                                                                                 |                                                                              |                                        |                                                     |      |          |         |          |  
|Cash and cash equivalents  end of year          |                                                                                                                 | $                                                                            | 314                                    |                                                     |      | $        | 1,677   |          |   | $       | 338      |         
|                                                 |                                                                                                                 |                                                                              |                                        |                                                     |      |          |         |          |  

S-4



---



##### Table of Contents



Schedule II


FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES





VALUATION AND QUALIFYING ACCOUNTS


(In thousands)


|                                |  |            |       |           |            |   |       |           |  |            |              |  |         |           |        |   |  |   |       | 
|------------------------------- |  | ---------- | ----- | --------- | ---------- | - | ----- | --------- |  | ---------- | ------------ |  | ------- | --------- | ------ | - |  | - | ----- | 
|                                |  |            |       | Additions |            |   |       |           | 
|                                |  |            |       |           |            |   |       |           | 
|                                |  | Balance at |       |           | Charged to |   |       |           |  | Deductions |              |  | Balance |          
|                                |  | Beginning  |       |           | Cost/      |   |       | Other     |  |            | (Amounts     |  |         | at End    |       
|Description                     |  | of Period  |       |           | Expenses   |   |       | Additions |  |            | Charged-Off) |  |         | of Period |       
|                                |  |            |       |           |            |   |       |           |  |            |              |  |         |           |       
|Year ended July 31, 2005        |  |            |       |           |            |   |       |           |  |            |              |  |         |           |        |   |  |   |       | 
|Allowance for doubtful accounts |  | $          | 2,523 |           |            | $ | 2,850 |           |  | $          | 0            |  |         | $         | (1,609 | ) |  | $ | 3,764 | 
|Year ended July 31, 2004        |  |            |       |           |            |   |       |           |  |            |              |  |         |           |        |   |  |   |       | 
|Allowance for doubtful accounts |  | $          | 2,672 |           |            | $ | 2,421 |           |  | $          | 0            |  |         | $         | (2,570 | ) |  | $ | 2,523 | 
|Year ended July 31, 2003        |  |            |       |           |            |   |       |           |  |            |              |  |         |           |        |   |  |   |       | 
|Allowance for doubtful accounts |  | $          | 1,467 |           |            | $ | 4,106 |           |  | $          | 0            |  |         | $         | (2,901 | ) |  | $ | 2,672 | 

S-5



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##### Table of Contents



Schedule II


FERRELLGAS, L.P. AND SUBSIDIARIES





VALUATION AND QUALIFYING ACCOUNTS


(In thousands)


|                                |  |            |       |           |            |   |       |           |  |            |              |  |         |           |        |   |  |   |       | 
|------------------------------- |  | ---------- | ----- | --------- | ---------- | - | ----- | --------- |  | ---------- | ------------ |  | ------- | --------- | ------ | - |  | - | ----- | 
|                                |  |            |       | Additions |            |   |       |           | 
|                                |  |            |       |           |            |   |       |           | 
|                                |  | Balance at |       |           | Charged to |   |       |           |  | Deductions |              |  | Balance |          
|                                |  | Beginning  |       |           | Cost/      |   |       | Other     |  |            | (Amounts     |  |         | at End    |       
|Description                     |  | of Period  |       |           | Expenses   |   |       | Additions |  |            | Charged-Off) |  |         | of Period |       
|                                |  |            |       |           |            |   |       |           |  |            |              |  |         |           |       
|Year ended July 31, 2005        |  |            |       |           |            |   |       |           |  |            |              |  |         |           |        |   |  |   |       | 
|Allowance for doubtful accounts |  | $          | 2,523 |           |            | $ | 2,850 |           |  | $          | 0            |  |         | $         | (1,609 | ) |  | $ | 3,764 | 
|Year ended July 31, 2004        |  |            |       |           |            |   |       |           |  |            |              |  |         |           |        |   |  |   |       | 
|Allowance for doubtful accounts |  | $          | 2,672 |           |            | $ | 2,421 |           |  | $          | 0            |  |         | $         | (2,570 | ) |  | $ | 2,523 | 
|Year ended July 31, 2003        |  |            |       |           |            |   |       |           |  |            |              |  |         |           |        |   |  |   |       | 
|Allowance for doubtful accounts |  | $          | 1,467 |           |            | $ | 4,106 |           |  | $          | 0            |  |         | $         | (2,901 | ) |  | $ | 2,672 | 

S-6



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##### Table of Contents



EXHIBIT INDEX


|        |   |             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|------- | - | ----------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |   |            
|Number  |   | Description
|        |   |            
|        | 2 | .1          |  | Contribution Agreement dated February 8, 2004, by and among
    FCI Trading Corp., Ferrellgas, Inc., Ferrellgas Partners, L.P.
    and Ferrellgas, L.P. Incorporated by reference to
    Exhibit 2.1 to our Current Report on Form 8-K filed
    February 12, 2004.                                                                                                                                                                                                                                                                                
|        | 3 | .1          |  | Fourth Amended and Restated Agreement of Limited Partnership of
    Ferrellgas Partners, L.P., dated as of February 18, 2003.
    Incorporated by reference to Exhibit 4.3 to our Current
    Report on Form 8-K filed February 18, 2003.                                                                                                                                                                                                                                                                                                          
|        | 3 | .2          |  | First Amendment to the Fourth Amended and Restated Agreement of
    Limited Partnership of Ferrellgas Partners, L.P., dated as of
    February 18, 2003. Incorporated by reference to
    Exhibit 3.1 to our Current Report on Form 8-K filed
    March 8, 2005.                                                                                                                                                                                                                                                                                   
|        | 3 | .3          |  | Second Amendment to the Fourth Amended and Restated Agreement of
    Limited Partnership of Ferrellgas Partners, L.P., dated as of
    June 29, 2005. Incorporated by reference to
    Exhibit 4.1 to our Current Report on Form 8-K filed
    June 30, 2005.                                                                                                                                                                                                                                                                                      
|        | 3 | .4          |  | Certificate of Incorporation for Ferrellgas Partners Finance
    Corp. Incorporated by reference to the same numbered Exhibit to
    our Quarterly Report on Form 10-Q filed June 13, 1997.                                                                                                                                                                                                                                                                                                                                                        
|        | 3 | .5          |  | Bylaws of Ferrellgas Partners Finance Corp. Incorporated by
    reference to the same numbered Exhibit to our Quarterly Report
    on Form 10-Q filed June 13, 1997.                                                                                                                                                                                                                                                                                                                                                                               
|        | 3 | .6          |  | Third Amended and Restated Agreement of Limited Partnership of
    Ferrellgas, L.P., dated as of April 7, 2004. Incorporated
    by reference to Exhibit 3.1 to our Current Report on
    Form 8-K filed April 22, 2004.                                                                                                                                                                                                                                                                                                                           
|        | 3 | .7          |  | Certificate of Incorporation of Ferrellgas Finance Corp.
    Incorporated by reference to Exhibit 4.1 to the Current
    Report on Form 8-K of Ferrellgas Partners, L.P. filed
    February 18, 2003.                                                                                                                                                                                                                                                                                                                                              
|        | 3 | .8          |  | Bylaws of Ferrellgas Finance Corp. Incorporated by reference to
    Exhibit 4.2 to the Current Report on Form 8-K of
    Ferrellgas Partners, L.P. filed February 18, 2003.                                                                                                                                                                                                                                                                                                                                                                        
|        | 4 | .1          |  | Specimen Certificate evidencing Common Units representing
    Limited Partner Interests (contained in Exhibit 3.1 hereto
    as Exhibit A thereto).                                                                                                                                                                                                                                                                                                                                                                                                
|        | 4 | .2          |  | Indenture, dated as of September 24, 2002, with form of
    Note attached, among Ferrellgas Partners, L.P., Ferrellgas
    Partners Finance Corp., and U.S. Bank National Association,
    as trustee, relating to
    83/4% Senior
    Notes due 2012. Incorporated by reference to Exhibit 4.1 to
    our Current Report on Form 8-K filed September 24,
    2002.                                                                                                                                                                               
|        | 4 | .3          |  | Indenture, dated as of April 20, 2004, with form of Note
    attached, among Ferrellgas Escrow LLC and Ferrellgas Finance
    Escrow Corporation and U.S. Bank National Association, as
    trustee, relating to
    63/4% Senior
    Notes due 2014. Incorporated by reference to Exhibit 4.1 to
    our Current Report on Form 8-K filed April 22, 2004.                                                                                                                                                                                         
|        | 4 | .4          |  | Ferrellgas, L.P., Note Purchase Agreement, dated as of
    July 1, 1998, relating to: $109,000,000 6.99% Senior
    Notes, Series A, due August 1, 2005, $37,000,000
    7.08% Senior Notes, Series B, due August 1, 2006,
    $52,000,000 7.12% Senior Notes, Series C, due
    August 1, 2008, $82,000,000 7.24% Senior Notes,
    Series D, due August 1, 2010, and $70,000,000
    7.42% Senior Notes, Series E, due August 1, 2013.
    Incorporated by reference to Exhibit 4.4 to our Annual
    Report on Form 10-K filed October 29, 1998.
|        | 4 | .5          |  | Ferrellgas, L.P., Note Purchase Agreement, dated as of
    February 28, 2000, relating to: $21,000,000
    8.68% Senior Notes, Series A, due August 1, 2006,
    $70,000,000 8.78% Senior Notes, Series B, due
    August 1, 2007, and $93,000,000 8.87% Senior Notes,
    Series C, due August 1, 2009. Incorporated by
    reference to Exhibit 4.2 to our Quarterly Report on
    Form 10-Q filed March 16, 2000.                                                                                                                               
|        | 4 | .6          |  | Registration Rights Agreement, dated as of December 17,
    1999, by and between Ferrellgas Partners, L.P. and Williams
    Natural Gas Liquids, Inc. Incorporated by reference to
    Exhibit 4.2 to our Current Report on Form 8-K filed
    December 29, 2000.                                                                                                                                                                                                                                                                                  
|        | 4 | .7          |  | First Amendment to the Registration Rights Agreement, dated as
    of March 14, 2000, by and between Ferrellgas Partners, L.P.
    and Williams Natural Gas Liquids, Inc. Incorporated by reference
    to Exhibit 4.1 to our Quarterly Report on Form 10-Q
    filed March 16, 2000.                                                                                                                                                                                                                                                              
|        | 4 | .8          |  | Second Amendment to the Registration Rights Agreement, dated as
    of April 6, 2001, by and between Ferrellgas Partners, L.P.
    and The Williams Companies, Inc. Incorporated by reference to
    Exhibit 10.3 to our Current Report on Form 8-K filed
    April 6, 2001.                                                                                                                                                                                                                                                                       



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##### Table of Contents



|        |    |             |  |                                                                                                                                                                                                                                                                                                                                                                                                                              
|------- | -- | ----------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |            
|Number  |    | Description
|        |    |            
|        | 4  | .9          |  | Third Amendment to the Registration Rights Agreement, dated as
    of June 29, 2005, between JEF Capital Management, Inc. and
    Ferrellgas Partners, L.P. Incorporated by reference to
    Exhibit 10.1 to our Current Report of Form 8-K filed
    June 30, 2005.                                                                                                                                                         
|        | 4  | .10         |  | Representations Agreement, dated as of December 17, 1999,
    by and among Ferrellgas Partners, L.P., Ferrellgas, Inc.,
    Ferrellgas, L.P. and Williams Natural Gas Liquids, Inc.
    Incorporated by reference to Exhibit 2.3 to our Current
    Report on Form 8-K filed December 29, 1999.                                                                                                                              
|        | 4  | .11         |  | First Amendment to Representations Agreement, dated as of
    April 6, 2001, by and among Ferrellgas Partners, L.P.,
    Ferrellgas, Inc., Ferrellgas, L.P. and The Williams Companies,
    Inc. Incorporated by reference to Exhibit 10.2 to our
    Current Report on Form 8-K filed April 6, 2001.                                                                                                                        
|        | 4  | .12         |  | Waiver and Acknowledgement of No Material Event dated
    November 20, 2003, by and among Ferrellgas Partners, L.P.,
    Ferrellgas, L.P., Ferrellgas, Inc. and JEF Capital Management,
    Inc. Incorporated by reference to Exhibit 4.1 to our
    Current Report on Form 8-K filed November 24, 2003.                                                                                                                     
|        | 4  | .13         |  | Extension of Waiver and Acknowledgement of No Material Event
    dated February 25, 2004, by and among Ferrellgas Partners,
    L.P., Ferrellgas, L.P., Ferrellgas, Inc. and JEF Capital
    Management, Inc. incorporated by reference to Exhibit 4.11
    to our Quarterly Report on Form 10-Q filed on
    March 10, 2004.                                                                                                
|        | 4  | .14         |  | Extension of Waiver and Acknowledgement of No Material Event
    dated June 9, 2005 by and among Ferrellgas Partners, L.P.,
    Ferrellgas, L.P., Ferrellgas Inc. and JEF Capital Management,
    Inc. Incorporated by reference to Exhibit 4.1 to our
    Current Report on Form 8-K filed June 10, 2005.                                                                                                                   
|        | 10 | .1          |  | Fourth Amended and Restated Credit Agreement, dated as of
    December 10, 2002, by and among Ferrellgas, L.P.,
    Ferrellgas, Inc., Bank of America National Trust and Savings
    Association, as agent, and the other financial institutions
    party. Incorporated by reference to Exhibit 10.3 to our
    Quarterly Report on Form 10-Q filed December 11, 2002.                                                      
|        | 10 | .2          |  | First Amendment to the Fourth Amended and Restated Credit
    Agreement, dated as of March 9, 2004, by and among
    Ferrellgas, L.P., Ferrellgas, Inc., Bank of America National
    Trust and Savings Association, as agent, and the other financial
    institutions party. Incorporated by reference to
    Exhibit 99.3 to our Current Report on Form 8-K/A filed
    April 2, 2004.                                    
|        | 10 | .3          |  | Second Amendment to the Fourth Amended and Restated Credit
    Agreement, dated as of September 3, 2004, by and among
    Ferrellgas, L.P., Ferrellgas, Inc., Bank of America National
    Trust and Savings Association, as agent, and the lenders party
    to the original agreement. Incorporated by reference to
    Exhibit 10.3 to our Annual Report on Form 10-K filed
    October 13, 2004.                         
|        | 10 | .4          |  | Third Amendment to the Fourth Amended and Restated Credit
    Agreement, dated October 26, 2004, among Ferrellgas, L.P.,
    Ferrellgas, Inc., Bank of America National Trust and Savings
    Association, as agent, and the lenders party to the original
    agreement. Incorporated by reference to Exhibit 10.2 to our
    Current Report on Form 8-K filed November 5, 2004.                                            
|        | 10 | .5          |  | Fifth Amended and Restated Credit Agreement dated as of
    April 22, 2005, by and among Ferrellgas, L.P. as the
    borrower, Ferrellgas, Inc. as the general partner of the
    borrower, Bank of America N.A., as administrative agent and
    swing line lender, and the lenders and L/C issuers party hereto.
    Incorporated by reference to Exhibit 10.5 to our Quarterly
    Report on Form 10-Q filed June 8, 2005.
|        | 10 | .6          |  | Receivable Interest Sale Agreement, dated as of
    September 26, 2000, by and between Ferrellgas, L.P., as
    originator, and Ferrellgas Receivables, L.L.C., as buyer.
    Incorporated by reference to Exhibit 10.17 to our Annual
    Report on Form 10-K filed October 26, 2000.                                                                                                                                       
|        | 10 | .7          |  | First Amendment to the Receivable Interest Sale Agreement dated
    as of January 17, 2001, by and between Ferrellgas, L.P., as
    originator, and Ferrellgas Receivables, L.L.C., as buyer.
    Incorporated by reference to Exhibit 10.5 to our Quarterly
    Report on Form 10-Q filed March 14, 2001.                                                                                                                   
|        | 10 | .8          |  | Amendment No. 2 to the Receivable Interest Sale Agreement
    dated November 1, 2004 between Ferrellgas, L.P., as
    Originator, and Ferrellgas Receivables, L.L.C., as buyer.
    Incorporated by reference to Exhibit 10.1 to our Current
    Report on Form 8-K filed November 45, 2004.                                                                                                                                 
|        | 10 | .9          |  | Amendment No. 3 to the Receivable Interest Sale Agreement
    dated June 7, 2005 between Ferrellgas, L.P., as Originator,
    and Ferrellgas Receivables, L.L.C., as buyer. Incorporated by
    reference to Exhibit 10.9 to our Quarterly Report on
    Form 10-Q filed June 8, 2005.                                                                                                                                       



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##### Table of Contents



|        |     |             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|------- | --- | ----------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |     |            
|Number  |     | Description
|        |     |            
|        | 10  | .10         |  | Receivables Purchase Agreement, dated as of September 26,
    2000, by and among Ferrellgas Receivables, L.L.C., as seller,
    Ferrellgas, L.P., as servicer, Jupiter Securitization
    Corporation, the financial institutions from time to time party
    hereto, and Bank One, NA, main office Chicago, as agent.
    Incorporated by reference to Exhibit 10.18 to our Annual
    Report on Form 10-K filed October 26, 2000.                         
|        | 10  | .11         |  | First Amendment to the Receivables Purchase Agreement, dated as
    of January 17, 2001, by and among Ferrellgas Receivables,
    L.L.C., as seller, Ferrellgas, L.P., as servicer, Jupiter
    Securitization Corporation, the financial institutions from time
    to time party hereto, and Bank One, N.A., main office Chicago,
    as agent. Incorporated by reference to Exhibit 10.4 to our
    Quarterly Report on Form 10-Q filed March 14, 2001.  
|        | 10  | .12         |  | Second Amendment to the Receivables Purchase Agreement dated as
    of September 25, 2001, by and among Ferrellgas Receivables,
    L.L.C., as seller, Ferrellgas, L.P., as servicer, Jupiter
    Securitization Corporation, the financial institutions from time
    to time party hereto, and Bank One, N.A., main office Chicago,
    as agent. Incorporated by reference to Exhibit 10.29 to our
    Annual Report on Form 10-K filed October 25, 2001.
|        | 10  | .13         |  | Third Amendment to the Receivables Purchase Agreement, dated as
    of September 24, 2002, by and among Ferrellgas Receivables,
    L.L.C., as seller, Ferrellgas, L.P., as servicer, Jupiter
    Securitization Corporation, the financial institutions from time
    to time party hereto, and Bank One, NA, main office Chicago, as
    agent. Incorporated by reference to Exhibit 10.11 to our
    Annual Report on Form 10-K filed October 23, 2002.  
|        | 10  | .14         |  | Fourth Amendment to the Receivables Purchase Agreement, dated as
    of September 23, 2003, by and among Ferrellgas Receivables,
    L.L.C., as seller, Ferrellgas, L.P., as servicer, Jupiter
    Securitization Corporation, the financial institutions from time
    to time party hereto, and Bank One, NA, main office Chicago, as
    agent. Incorporated by reference to Exhibit 10.8 to our
    Annual Report on Form 10-K filed October 21, 2003.  
|        | 10  | .15         |  | Fifth Amendment to the Receivables Purchase Agreement, dated as
    of September 21, 2004, by and among Ferrellgas Receivables,
    L.L.C., as seller, Ferrellgas, L.P., as servicer, Jupiter
    Securitization Corporation, the financial institutions from time
    to time party hereto, and Bank One, NA, main office Chicago, as
    agent. Incorporated by reference to Exhibit 10.1 to our
    Current Report on Form 8-K filed September 24, 2004. 
|        | 10  | .16         |  | Sixth Amendment to the Receivables Purchase Agreement, dated as
    of June 7, 2005, by and among Ferrellgas Receivables,
    L.L.C., as seller, Ferrellgas, L.P., as servicer, Jupiter
    Securitization Corporation, the financial institutions from time
    to time party hereto, and Bank One, NA, main office Chicago, as
    agent. Incorporated by reference to Exhibit 10.16 to our
    Quarterly Report on Form 10-Q filed June 8, 2005.         
|        | 10  | .21         |  | Agreement and Plan of Merger dated as of February 8, 2004,
    by and among Blue Rhino Corporation, FCI Trading Corp., Diesel
    Acquisition, LLC and Ferrell Companies, Inc. Incorporated by
    reference to Exhibit 99.2 to our Current Report on
    Form 8-K filed February 13, 2004.                                                                                                                                                                 
|        | 10  | .22         |  | First amendment to the Agreement and Plan of Merger, dated as of
    March 16, 2004, by and among Blue Rhino Corporation, FCI
    Trading Corp., Diesel Acquisition, LLC, and Ferrell Companies,
    Inc. Incorporated by reference to Exhibit 99.1 to our
    Current Report on Form 8-K filed April 2, 2004.                                                                                                                                              
|        | 10  | .23         |  | Real Property Contribution Agreement, dated February 8,
    2004, between Ferrellgas Partners, L.P. and Billy D. Prim.
    Incorporated by reference to Exhibit 10.15 to our Quarterly
    Report on Form 10-Q filed June 14, 2004.                                                                                                                                                                                                                         
|        | 10  | .24         |  | Unit Purchase Agreement, dated February 8, 2004, between
    Ferrellgas Partners, L.P. and Billy D. Prim. Incorporated by
    reference to Exhibit 4.5 to our Form S-3 filed
    May 21, 2004.                                                                                                                                                                                                                                                              
|        | 10  | .25         |  | Unit Purchase Agreement dated February 8, 2004, between
    Ferrellgas Partners, L.P. and James E. Ferrell. Incorporated by
    reference to Exhibit 99.3 to our Current Report on
    Form 8-K filed February 12, 2004.                                                                                                                                                                                                                                    
|        | #10 | .26         |  | Ferrell Companies, Inc. Supplemental Savings Plan, restated
    January 1, 2000. Incorporated by reference to
    Exhibit 99.1 to our Current Report on Form 8-K filed
    February 18, 2003.                                                                                                                                                                                                                                                               
|        | #10 | .27         |  | Second Amended and Restated Ferrellgas Unit Option Plan.
    Incorporated by reference to Exhibit 10.1 to our Current
    Report on Form 8-K filed June 5, 2001.                                                                                                                                                                                                                                                                                            



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##### Table of Contents



|        |     |             |  |                                                                                                                                                                                                                                                                  
|------- | --- | ----------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |     |            
|Number  |     | Description
|        |     |            
|        | #10 | .28         |  | Ferrell Companies, Inc. 1998 Incentive Compensation Plan, as
    amended and restated effective October 11, 2004.
    Incorporated by reference to Exhibit 10.23 to our Annual
    Report on Form 10-K filed October 13, 2004.                                   
|        | #10 | .29         |  | Employment agreement between James E. Ferrell and Ferrellgas,
    Inc., dated July 31, 1998. Incorporated by reference to
    Exhibit 10.13 to our Annual Report on Form 10-K filed
    October 29, 1998.                                                        
|        | #10 | .30         |  | Amended and Restated Employment Agreement, dated
    October 11, 2004, by and among Ferrellgas, Inc., Ferrell
    Companies, Inc. and Billy D. Prim. Incorporated by reference to
    Exhibit 10.25 to our Annual Report on Form 10-K filed
    October 13, 2004.
|        | #10 | .31         |  | Arrangement dated June 4, 2003, between Ron M.
    Logan, Jr. and Ferrellgas, Inc. Incorporated by reference
    to Exhibit 10.26 to our Annual Report on Form 10-K
    filed October 13, 2004.                                                                  
|        | #10 | .32         |  | Arrangement dated February 6, 2004, between Timothy E.
    Scronce and Ferrellgas, Inc. Incorporated by reference to
    Exhibit 10.27 to our Annual Report on Form 10-K filed
    October 13, 2004.                                                             
|        | 10  | .33         |  | Asset Purchase Agreement dated as of June 22, 2005 by and
    among Ferrellgas, L.P., Ferrellgas, Inc. and Enterprise Products
    Operating L.P. Incorporated by reference to Exhibit 10.1 to
    our Current Report on Form 8-K filed on June 23, 2005.        
|        | *21 | .1          |  | List of subsidiaries                                                                                                                                                                                                                                             
|        | *23 | .1          |  | Consent of Deloitte & Touche, LLP, independent
    registered public accounting firm, for the certain use of its
    report appearing in the Annual Report on Form 10-K of
    Ferrellgas Partners, L.P. for the year ended July 31, 2005.                       
|        | *23 | .2          |  | Consent of Deloitte & Touche, LLP, independent
    registered public accounting firm, for the certain use of its
    report appearing in the Annual Report on Form 10-K of
    Ferrellgas Partners Finance Corp. for the year ended
    July 31, 2005.           
|        | *23 | .3          |  | Consent of Deloitte & Touche, LLP, independent
    registered public accounting firm, for the certain use of its
    report appearing in the Annual Report on Form 10-K of
    Ferrellgas, L.P. for the year ended July 31, 2005.                                
|        | *23 | .4          |  | Consent of Deloitte & Touche, LLP, independent
    registered public accounting firm, for the certain use of its
    report appearing in the Annual Report on Form 10-K of
    Ferrellgas Finance Corp. for the year ended July 31, 2005.                        
|        | *31 | .1          |  | Certification of Ferrellgas Partners, L.P. pursuant to
    Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act.                                                                                                                                                 
|        | *31 | .2          |  | Certification of Ferrellgas Partners Finance Corp. pursuant to
    Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act.                                                                                                                                         
|        | *31 | .3          |  | Certification of Ferrellgas, L.P. pursuant to
    Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act.                                                                                                                                                          
|        | *31 | .4          |  | Certification of Ferrellgas Finance Corp. pursuant to
    Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act.                                                                                                                                                  
|        | *32 | .1          |  | Certification of Ferrellgas Partners, L.P. pursuant to
    18 U.S.C. Section 1350.                                                                                                                                                                               
|        | *32 | .2          |  | Certification of Ferrellgas Partners Finance Corp. pursuant to
    18 U.S.C. Section 1350.                                                                                                                                                                       
|        | *32 | .3          |  | Certification of Ferrellgas, L.P. pursuant to 18 U.S.C.
    Section 1350.                                                                                                                                                                                        
|        | *32 | .4          |  | Certification of Ferrellgas Finance Corp. pursuant to
    18 U.S.C. Section 1350.                                                                                                                                                                                






|  |               
|- | --------------
|* | Filed herewith



|  |                                            
|- | -------------------------------------------
|# | Management contracts or compensatory plans.