Form 4: Ferrellgas Director Stephen Clifford Granted 12,729 Phantom Units

Ferrellgas Partners L.P. Director Stephen M. Clifford was granted 12,729 phantom units, representing the economic equivalent of Class A Units, vesting on September 25, 2025.

Summary

• Stephen M. Clifford, a Director of Ferrellgas Partners L.P., was granted 12,729 phantom units.
• Each phantom unit represents the economic equivalent of one Class A Unit.
• The phantom units accrue dividend equivalent rights.
• The units are scheduled to vest on September 25, 2025.
• Upon vesting, each phantom unit represents the right to receive a cash payment.
• The cash payment will occur following 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 event.

Sentiment

Score: 7

Explanation: The grant of phantom units to a director is a positive sign of aligning management interests with shareholders, indicating a commitment to long-term value creation. It's a standard compensation practice.

Positives

• The grant of phantom units aligns the director's interests with those of shareholders, as the value is directly tied to the performance of Class A Units.
• The accrual of dividend equivalent rights provides additional incentive for long-term holding and performance, enhancing director retention and commitment.

Negatives

• The director does not receive an immediate cash benefit, as the phantom units are subject to a vesting schedule and specific payment triggers.

Future Outlook

The phantom units are structured to provide a future cash payment based on the Class A Unit price, aligning the director's future incentives with the company's long-term performance and shareholder value.

Industry Context

This transaction represents a standard practice in corporate governance where equity-linked compensation, such as phantom units, is granted to board members. This is common across various industries, including the energy and distribution sector where Ferrellgas Partners L.P. operates, to align the interests of directors with those of the company's shareholders.

Comparison to Industry Standards

• Granting equity-linked compensation to directors is a common practice in corporate governance across various industries, including energy and distribution, to incentivize long-term performance and retention.
• The specific number of units and vesting schedule would typically be benchmarked against peer companies in the midstream or energy distribution sector, such as AmeriGas Partners, LP (UGP) or Suburban Propane Partners, L.P. (SPH), though specific comparative data is not provided in this filing.

Corporate Governance

Stakeholder Impact

• Shareholders: The grant of phantom units aligns the director's interests with shareholders, potentially leading to better long-term performance and value creation.
• Director (Stephen M. Clifford): Receives performance-based compensation tied to the company's Class A Unit value, incentivizing long-term commitment and performance.

Next Steps

• The phantom units will vest on September 25, 2025.
• A cash payment will be made upon the earliest of termination of service from the Board, a change of control, or the third anniversary of the July 1, 2025 grant date.

Key Dates

Recommendation

Keywords

Ferrellgas Partners L.P., Stephen M. Clifford, Form 4, SEC Filing, Phantom Units, Director Compensation, Equity Grant, Class A Units, Vesting, Corporate Governance