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