Form 4: Ferrellgas Director Clifford Awarded Phantom Units

Ferrellgas Partners L P Director Stephen M. Clifford was granted 8,492 phantom units, representing the economic equivalent of Class A Units, vesting on October 9, 2026.

Summary

• Stephen M. Clifford, a Director of Ferrellgas Partners L P, reported the acquisition of derivative securities.
• The transaction occurred on October 9, 2025, involving the grant of 8,492 Phantom Units.
• Each Phantom Unit represents the economic equivalent of one Class A Unit of Ferrellgas Partners L P.
• These units accrue dividend equivalent rights.
• The Phantom Units are scheduled to vest on October 9, 2026.
• Upon vesting, each unit represents the right to receive a cash payment following the first to occur of (1) termination of service from the Board of Directors, (2) a change of control, or (3) the third anniversary of the October 9, 2025 grant date.
• The cash payment amount will be equal to the average closing price of a Class A Unit for the 10 trading days immediately preceding the triggering event.
• Following this transaction, Stephen M. Clifford beneficially owns 21,221 derivative securities (Phantom Units).

Sentiment

Score: 7

Explanation: The grant of phantom units to a director is a positive event for the individual, aligning their interests with unitholders and serving as a retention incentive. For the company, it's a routine compensation event with a generally neutral to slightly positive implication for governance.

Positives

• The grant of phantom units aligns the director's long-term interests with those of the unitholders.
• The units accrue dividend equivalent rights, providing an additional benefit to the director.

Negatives

• The value of the award is not guaranteed and depends on the future market price of Class A Units.
• Payment is deferred and contingent on vesting and future triggering events, not an immediate cash benefit.

Risks

• Market risk: The ultimate cash value of the phantom units is directly tied to the future trading price of Ferrellgas Class A Units, which can fluctuate.
• Service termination risk: The phantom units are subject to a vesting period until October 9, 2026, requiring continued service for the director to realize the benefit.

Future Outlook

The phantom unit award incentivizes the director for future performance and continued service, aligning their long-term interests with the company's success and unitholder value creation.

Industry Context

NA

Stakeholder Impact

• Shareholders/Unitholders: The director's interests are further aligned with the long-term performance and value creation for unitholders.
• Director: Receives future compensation tied to the company's performance and continued service, enhancing retention.

Next Steps

• Vesting of the 8,492 Phantom Units on October 9, 2026.
• Future cash payment to the director upon a triggering event (termination of service, change of control, or third anniversary of grant date) after vesting.

Key Dates

Recommendation

This Form 4 reports a routine grant of phantom units to a director as part of their compensation. While it aligns the director's interests with unitholders, it does not provide new material information that would fundamentally alter the investment outlook for Ferrellgas Partners L P. Investors should consider broader financial performance and strategic developments rather than this specific insider transaction for investment decisions.

Keywords

Ferrellgas, Stephen Clifford, Form 4, insider transaction, phantom units, director compensation, equity award, SEC filing