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Confidential: Ferrellgas, LP

Propane AutogasUnparalleled Value


~30% Employee Owned

Started in 1939 by A.C. Ferrell

Fortune 300 Propane Retailer

More than 5,000 employees

Over 600+ retail outlets

185,000,000 Gallons of Storage Across the USA

Fleet of more than 4,000 vehicles

Serving nearly 1 million Customers

Delivering nearly 1,000,000,000 (1 Billion) gallons per year

NYSE listed: FGP

Confidential © Ferrellgas, L.P


Procurement

– Ferrell NorthAmerica

– Comprehensive

Procurement

Management

– Risk Protection

– Supply Management

– Wholesale

– National Distribution

– 146 Transport

Tractors

Cylinder Exchange

– Blue Rhino

– Largest LPG tank

exchange company in

the U.S.

– Over 46,000 retail

selling locations

nationally

– Acquired Mr. Bar-B-

Q, a leading provider

of high quality bbq

tools

– Builds Allocation

Sable Environmental

– Headquartered in TX

– Midstream Energy

– Saltwater Disposal

Facilities

– Permitted Throughput

of 150,000 bbl / day


Bridger Logistics

– Headquartered in TX

– “2014 Midstream

Energy Co. of the

Year” – O&G Awards

– Services include

trucking, terminaling,

pipeline, rail, and

maritime.

– Inc. Magazine’s

“Fastest Growing

Energy Company” in

2013

Midstream OperationsTraditional Operations

Retail

– Ferrellgas

– Largest Division

– Retail / End User

Sales & Support

– Residential, Ag,

Industrial,

Commercial,

National Accounts,

Autogas

– Full Service Installer

– Full Service Supplier

– 1,600 Bobtails


Why Do Fleets Use Propane Autogas?


Clean. Domestic. Abundant. Safe. Inexpensive.


Clean

Clean Burning

– 24% reduction in Greenhouse Gas (GHG) emissions.

– 20% reduction in Nitrogen Oxide (NOx) emissions.

– 60% reduction in Carbon Monoxide (CO) emissions.


Clean Infrastructure

– Non-EPA Regulated

– Non-Carcinogenic

– Not a Groundwater Contaminate

– Zero Emission Fill Nozzle

– Zero Risk of Spillage


Domestic• 98% USA Produced

• ~70% Sourced from Wet Natural Gas

• ~30% Sourced from Crude Oil



Abundant

• Net Exporter of Propane

– Billions of gallons exported each year due to vast supply

• Propane Inventory

– We have more gallons in storage than ANY nation in the world



Abundant & Growing SupplyIncrease in Natural Gas Liquids Production From U.S.

and Canada Shale Gas (Million Gallons per year)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Propane

Ethane

Butane

Pentanes +

3.6 Billion Gallons of New Supply Expected between 2015 and 2020

1/ Haynesville production includes production from other shales in the vicinity, e.g., the Bossier Shale

U.S. and Canada Shale Gas Production (Bcfd)

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

Western Canada

All Other US

Eagle Ford

Bakken

Utica

Marcellus

Haynesville /1

Fayetteville

Barnett

Woodford

Source: ICF Consulting



Safe• Tank Strength

– 20x More Puncture Resistant than Gas/Diesel Tanks

• Low Operating Pressure

– 120-300 psi

– Comparable to the pressure of brake lines

• Narrow Flammability Range

– Ratios for air to fuel ignition (rich limit ÷ lean limit):

– Propane: 4.5:1

– Diesel: 12.5:1

– Gasoline: 5.5:1

• Auto ignition Temp (in Farenheit):

– Propane: 850°

– Diesel: 600°

– Gasoline: 495°

Source: PERC



Minimal Investment / Maximum Savings



Historically Inexpensive


The current commodity market is unlike anything we’ve seen in years. With this environment, all commodity values are significantly depressed. Propane is currently around 47% less expensive than diesel and 40% less expensive than gasoline.

• Average 60 Month Savings vs. Gasoline: 49% less expensive

• Average 60 Month Savings vs. Diesel: 56% less expensive


Stay in the Green

$0.00 $0.50 $1.00 $1.50 $2.00 $2.50

Gas Comparison

Diesel Comparison Propane: $0.95

Propane$0.95

Diesel: $2.50

Gasoline: $2.20


Savings vs. Gasoline

$27,000+ per Vehicle

Annual Miles 20,000.00 20,000.00

Years in Service 10 10

Total Miles over Service Life 200,000.00 200,000.00

Average MPG 8.00 6.80

Gallons Consumed Annually 2,500.00 2,941.18

Gallons Consumed Total 25,000.00 29,411.76

Gasoline Price Per Gallon $2.20

Propane Price per Gallon $0.95

Oil Interval 6,000.00 6,000.00

Oil Capacity 7.00 7.00

Oil Filter Cost $20.00 $20.00

Oil Cost per Quart $1.50 $1.50

PM's Over Life 33 33

Labor Hours per PM 1 1

Hourly Labor Cost $30.00 $30.00

Fuel Filter Change Interval 12,000 50,000

Fuel Filter Cost $20.00 $50.00

Total Filter Changes 17 4

TOTAL Cost to Operate $57,350.00 $30,157.84

Minimum Operational Savings $27,192.16

GasolinePropane

Autogas

Fuel Consumption

Maintenance Comparison

Operating Costs

Absolute Savings


Savings vs. Diesel

$37,000+ per Vehicle

Annual Miles 15,000.00 15,000.00

Years in Service 12 12

Total Miles over Service Life 180,000.00 180,000.00

Average MPG 6.00 4.00

Gallons Consumed Annually 2,500.00 3,750.00

Gallons Consumed Total 30,000.00 45,000.00

Diesel Price Per Gallon $2.50

Propane Price per Gallon $0.95

Oil Interval 3,500.00 6,000.00

Oil Capacity 30.00 7.00

Oil Filter Cost $28.00 $5.00

Oil Cost per Quart $1.50 $1.50

DEF Gallons (2%) 600.00 0.00

DEF Cost per Gallon $2.50 $0.00

PM's Over Life 51 30

Labor Hours per PM 1 1

Hourly Labor Cost $30.00 $30.00

Fuel Filter Change Interval 12,000 50,000

Fuel Filter Cost $20.00 $100.00

Total Filter Changes 15 4

TOTAL Cost to Operate $82,097.14 $44,475.00

Minimum Operational Savings $37,622.14

DieselPropane

Autogas

Fuel Consumption

Maintenance Comparison

Operating Costs

Absolute Savings


Additional Considerations



Implementation MatrixTask Responsibility Estimated Timeframe

Select Tank & Dispenser Location FGP & Customer 1 Day

Finalize Supply & Equipment

AgreementFGP & Customer 1 Week for Review

Order Dispenser Equipment & Tanks FGP 4 Week lead Time

Submit Blueprints &/or

Obtain site permitsFGP & Customer 4-8 Weeks

Contract with and manage subs for

crash bollards and electricFGP 1 Day

Install pad Subcontractor 1 Week

Install bollards Subcontractor 1 Week

Install autogas dispenser & Tank FGP 1 - 2 Weeks

Obtain electric permits Electric subcontractor 2 – 4 Weeks

Complete electric hookups Electric subcontractor 1 Week

Train on safety and system

operations. FGP 1-2 Days

Total Estimated Timing 16 – 22 Weeks


Setback Requirements


Container Size Distance Requirement

501-2,000 gallonsAt least 25 feet from Important Buildings, or

property lines that can be built upon.

More than 2,000 gallonsAt least 50 feet from important buildings, or

property lines that can be built upon.

Condition Action to Take

Combustible Materials (ex: woodpiles, dry grass /

tall weeds, brush or chaparral)Maintain at least 10’ clearance around container

Exterior Sources of Ignition (ex: opening into

direct vent appliances, mechanical ventilation air

intakes, etc)

Maintain at least 10’ clearance around container

Overhead electric Lines more than 600 volts

-typical electric wires from poles to buildings are

230 volts

Maintain 6’ Horizontal clearance from container.

(imagine dropping a plumb bob straight down to

the ground, now measure 6’ away from this point.

The container must be at least this far back. )


Dispensing Station Footprint


Site Prep• Fleet Responsibility

• Concrete Pad

• Electrical: 3 Phase

• Crash Bollards

• Supplier Responsibility

• Permitting

• Maximize Space

• Optimal Tank Sizing

• Delivery Schedule

Average Large Transit Bus: 40’7” L x 8’6” W

Average ParaTransit (PT) Bus: 23’L x 8’W


Comparing to CNG

Serviceability: Shop Enhancements / Certification

Added Weight: Average 300-900 additional lbs.

Track Record: 13M Worldwide / 145k in US

Cost of Conversion: 1.5x More

Operating Pressure: 3,600 psi

Station Downtime: Contingency Plan / Availability

Fueling Station Cost: $500k - $1.5M+

LPG: 46 Usable Gallons CNG: 20 GGE



Scalability

One (1) 1,000 Gal Tank One (1) 2,000 Gal Tank

One (1) 2,700 Gal Tank One (1) 30,000 Gal Tank


Contingency PlanningAutogas Contingency / Emergency Plan

1. Equipment Failure Identified by Customer

2. Call put into Call Center or Emergency Contact

a. Your 24/7, Live Emergency Contact will be provided at launch

3. Emergency Call Center to Dispatch Most Effective and Timely Fuel Support a. Example: Temporary Fueling Solution

b. Example: Splash Fill from Bobtail or Transport Vehicle (Wet-Hose)

c. Example: Local Public Fueling Site / Service Center

4. We have the ability to employ emergency filling services until your equipment is back in operation or until this service is deemed no longer necessary by Customer and FerrellAutogas officials.

• You’ll Be Prepared For:

– Natural Disasters

– Power Outages

– Emergency Evacuations

– Fuel Supply Shortages


• 19 out of 25– Nearly 80% of the Nations 25 Largest School Districts Rely on Propane

• 560,000– The approximate number of students riding propane buses every day in 2015

• 24,000,000 (24 Million)

– LP Gallons estimated to be Consumed by Schools for Transportation each year

• $28,800,000 (28.8 Million)

– Dollars Saved in 2015 by Schools running Propane Buses

Industry Estimates:

PERC Estimates 8,000 LPG Buses in US

Average 70 passenger capacity

Average 3,000 gallons per bus, per year

Average savings $1.20 per gallon

Proven Technology – Fact Check



Robert C. Little

Autogas Sales Manager

469-571-4970

[email protected]


Decisive Value in Propane Autogas

mailto:[email protected]

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