Form 4: Ferrellgas Director Eby Receives 8,492 Phantom Units

Ferrellgas Partners L.P. Director Joe Eby was granted 8,492 phantom units, increasing his total beneficial ownership to 21,221 units.

Summary

• Joe Eby, a Director of Ferrellgas Partners L.P., was granted 8,492 Phantom Units.
• The transaction date for this grant was October 9, 2025.
• 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 will vest on October 9, 2026.
• Upon vesting, each unit represents the right to receive a cash payment following the first to occur of: termination of service from the Board, a change of control, or the third anniversary of the grant date (October 9, 2028).
• 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 payment event.
• Following this transaction, Joe Eby beneficially owns a total of 21,221 Phantom Units.
• The transaction was made pursuant to a Rule 10b5-1(c) plan.

Sentiment

Score: 6

Explanation: Slightly positive as it indicates continued alignment of director interests with shareholder value through equity-based compensation, which is a standard corporate governance practice.

Positives

• The grant of phantom units aligns the director's financial interests with those of the shareholders, as the value of the units is tied to the performance of Class A Units.
• The transaction is part of a Rule 10b5-1(c) plan, indicating a pre-arranged and transparent compensation structure.

Negatives

• This transaction does not represent a direct purchase of shares by the director, meaning no personal capital was invested in the company's equity at this time.
• The units are phantom units, not actual equity, and will be settled in cash, which may not provide the same long-term equity ownership incentives as direct share grants.

Risks

• The value of the cash payment upon vesting is subject to the future market price fluctuations of Ferrellgas Partners L.P. Class A Units.
• The vesting of the units is contingent on continued service or specific corporate events, meaning the director may not realize the full value if these conditions are not met.

Future Outlook

The phantom units are scheduled to vest on October 9, 2026, with a cash payment expected upon the earliest of the director's service termination, a change of control, or October 9, 2028, based on the average closing price of Class A Units.

Industry Context

This insider transaction reflects a standard practice of executive and director compensation within publicly traded companies, aiming to align leadership incentives with long-term shareholder value. Such grants are common across various industries as a component of total compensation packages.

Stakeholder Impact

• Shareholders: The grant aligns the director's interests with shareholders by tying a portion of his compensation to the company's unit performance.
• Director (Joe Eby): Receives future compensation tied to company performance, subject to vesting conditions.

Next Steps

• Vesting of the 8,492 Phantom Units on October 9, 2026.
• Potential cash payment for vested units upon the occurrence of specific events (termination of service, change of control, or October 9, 2028).

Key Dates

Recommendation

This Form 4 reports a routine equity grant to a director as part of their compensation package. It does not contain information that would fundamentally alter the investment thesis for Ferrellgas Partners L.P. While it shows continued alignment of management interests, it's not a catalyst for a 'buy' or 'sell' recommendation based solely on this filing.

Keywords

Ferrellgas Partners, Joe Eby, Phantom Units, Insider Transaction, Form 4, Director Compensation, Equity Grant, Rule 10b5-1