October 11, 2016 – Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) has been investigating Ferrellgas Partners, L.P. ("Ferrellgas” or the "Company") (NYSE: FGP) for potential violations of the federal securities laws. Investors who purchased Ferrellgas securities between June 1, 2015 and September 28, 2016 (the “Class Period”) may be affected.
On June 1, 2015, Ferrellgas announced the acquisition of Bridger Logistics, LLC (“Bridger”), a provider of integrated crude oil midstream services, for a purchase price of approximately $837.5 million. The Company emphasized in the June 1, 2015 announcement that “[t]he move positions Ferrellgas to significantly expand its midstream platform and is expected to be immediately accretive to Ferrellgas and supportive of future distribution growth.”
On September 1, 2016, a Reuters article entitled “Ferrellgas shed rail terminal contract as oil prices fall” revealed problems with the Bridger acquisition. According to Reuters, the acquisition of Bridger allowed Ferrellgas to move at least 65,000 barrels of crude oil daily through a rail terminal in Eddystone, Pennsylvania. The contract for access to the rail terminal allegedly included a minimum volume commitment and a corresponding payment of $5 million per month for access to the rail terminal whether the terminal was used or not. At some point Ferrellgas, or another related company to which Ferrellgas transferred the contract, stopped making the $5 million per month payments. This led to termination of the contract for access to the rail terminal, and also left Ferrellgas with no means to deliver crude oil to its largest customer, Monroe Energy.
On September 28, 2016, Ferrellgas issued a press release announcing a net loss of $665.4 million for fiscal year 2016 compared to net earnings of $29.6 million in fiscal year 2015. The net loss of $665.4 million was the result of taking a “one-time non-cash impairment charge of $628.8 million in [Ferrellgas’] Midstream operations – Crude oil Logistics segment and another one-time non-cash impairment charge of $29.3 million in [Ferrellgas’] Other midstream operations – water solutions reporting unit.” According to J.P. Morgan and other analysts, the one-time impairment charge of approximately $630 million was a write-down of the majority of the value of the Bridger acquisition.
On the same day, September 28, 2016, the Company announced that Stephen L. Wambold, the Company’s CEO, “has stepped down from his roles as President and Chief Executive Officer and as a member of the Board.”
On September 28, 2016, Ferrellgas’ shares declined by $3.50 per share, or 21.2%, to close at $13 per share on heavy trading volume.
If you purchased Ferrellgas’ common stock or other securities and would like to discuss our investigation, please contact us by e-mailing
or by calling 800-290-1952.
Attorneys: Laurence D. King, Jeffrey P. Campisi, Pamela A. Mayer