Form 4: Ferrellgas Director Carney Hawks Granted 12,729 Phantom Units

Ferrellgas Partners L.P. Director Carney Hawks was granted 12,729 phantom units, which vest on September 25, 2025, and represent the economic equivalent of Class A Units.

Summary

• Director Carney Hawks of Ferrellgas Partners L.P. was granted 12,729 Phantom Units on July 1, 2025.
• Each Phantom Unit represents the economic equivalent of one Class A Unit of Ferrellgas Partners L.P.
• The Phantom Units accrue dividend equivalent rights.
• The units are scheduled to vest on September 25, 2025.
• Upon vesting, each Phantom Unit grants the right to receive a cash payment.
• The cash payment will be triggered by the first to occur of: termination of service from the Board of Directors, a change of control, or the third anniversary of the July 1, 2025 grant date.
• The payment amount will be equal to the average closing price of a Class A Unit for the 10 trading days immediately preceding the payment trigger event.

Sentiment

Score: 7

Explanation: The grant of phantom units to a director is a routine compensation event, generally viewed as a positive for aligning management interests with shareholders, but it does not reflect new operational or financial performance.

Positives

• Director Carney Hawks was granted 12,729 phantom units, which aligns his interests with those of the shareholders.
• The phantom units accrue dividend equivalent rights, providing additional potential value to the holder.

Risks

• The value of the cash payment for the vested phantom units is dependent on the future trading price of Ferrellgas Class A Units, which is subject to market fluctuations.

Future Outlook

The phantom units are set to vest on September 25, 2025, and will be paid out in cash upon specific future events: termination of service from the Board, a change of control, or the third anniversary of the grant date (July 1, 2025).

Industry Context

This filing reflects a common practice in corporate governance where executive and director compensation includes equity-linked incentives, such as phantom units, to align their interests with long-term shareholder value. This is standard across many industries, including the energy sector where Ferrellgas operates.

Comparison to Industry Standards

• The grant of phantom units as a form of equity compensation for directors is a common practice across publicly traded companies, including those in the energy distribution sector.
• While specific compensation packages vary, the use of performance-based or time-vesting equity awards is a standard mechanism to incentivize long-term commitment and performance.
• Without specific details on peer company compensation structures, a direct quantitative comparison of the size or terms of this grant to industry benchmarks is not feasible from this document alone.

Related Party Transactions

• The grant of 12,729 phantom units to Director Carney Hawks constitutes a related-party transaction, which is a standard compensation practice disclosed in this filing.

Stakeholder Impact

• Shareholders: The grant aligns the director's interests with shareholder value through equity-linked compensation.
• Management: Director Carney Hawks receives additional compensation in the form of equity-linked units.

Next Steps

• The 12,729 phantom units are scheduled to vest on September 25, 2025.
• Payment for vested units will occur upon termination of service from the Board, a change of control, or the third anniversary of the grant date (July 1, 2025).

Key Dates

Keywords

Ferrellgas Partners L.P., FGP, Carney Hawks, Director, Phantom Units, SEC Form 4, Insider Transaction, Equity Compensation, Executive Compensation, Class A Units