SCHEDULE: Ares Entities Boost Ferrellgas Stake to 13.8% via Unit Conversion

Ares Management and its affiliates have significantly increased their beneficial ownership in Ferrellgas Partners, L.P. to 13.8% following the conversion of Class B Units to Class A Units.

Summary

• Ares Management LLC and its affiliates (the "Reporting Persons") have filed a Schedule 13D, disclosing their increased beneficial ownership in Ferrellgas Partners, L.P.
• The Reporting Persons acquired 1,563,690 Class A Units of Ferrellgas Partners, L.P. as a result of a unit conversion.
• This acquisition stemmed from the conversion of 312,738 Class B Units into Class A Units at a 5:1 ratio, which took effect on March 16, 2026.
• The original Class B Units were purchased using working capital for an aggregate consideration of $75,036,400.
• The Reporting Persons now collectively beneficially own 13.8% of the outstanding Class A Units.
• The total outstanding Class A Units after the conversion event are 11,357,605.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a moderately positive development, indicating a significant, long-term investment by a major financial institution, which could lead to strategic engagement and potential value creation, though it also introduces uncertainty regarding future corporate actions.

Positives

• Ares Management's increased stake suggests continued confidence in Ferrellgas Partners, L.P. as an investment.
• The conversion of Class B Units to Class A Units simplifies the capital structure for these investors, potentially improving transparency.

Risks

• The Reporting Persons may acquire additional securities, or retain or sell all or a portion of their holdings, which could impact market liquidity and share price.
• They may engage in discussions with management and the Board regarding extraordinary corporate transactions, including mergers, reorganizations, take-private transactions, security offerings/repurchases, asset sales, changes to capitalization or dividend policy, or changes in management or Board composition, which could introduce uncertainty.
• The potential for de-listing or de-registration of Class A Units exists if a take-private transaction is pursued.

Future Outlook

The Reporting Persons acquired the securities for investment purposes and will continuously review their investment. They may acquire or sell additional securities, enter into financial instruments, or engage in discussions with the Issuer's management and Board regarding potential extraordinary corporate transactions, including mergers, reorganizations, take-private transactions, security offerings, asset sales, or changes to capitalization, dividend policy, management, or Board composition.

Industry Context

StockSavvy.ai notes that significant ownership stakes by large investment managers like Ares Management often signal a belief in long-term value, but also introduce the potential for activist investor behavior or strategic shifts. Such filings are common for investment firms seeking to influence or monitor their portfolio companies.

Comparison to Industry Standards

• NA

Management Changes

Corporate Governance

Stakeholder Impact

• Shareholders: Potential for increased shareholder value if Ares' strategic engagement leads to positive corporate actions; conversely, uncertainty from potential extraordinary transactions (e.g., take-private) could affect minority shareholders.
• Management/Board: Increased scrutiny and potential for strategic influence from a significant institutional investor, potentially leading to changes in corporate strategy or leadership.

Next Steps

• Reporting Persons will continue to review their investment in Ferrellgas Partners, L.P. on an ongoing basis.
• They may acquire or sell additional securities of the Issuer in the open market or privately negotiated transactions.
• They may enter into financial instruments or other agreements to increase or decrease their economic exposure.
• They may engage in discussions with management, the Board, other securityholders, and relevant parties regarding potential extraordinary corporate transactions.
• They may retain consultants and advisors and enter into discussions with potential sources of capital and other third parties to facilitate consideration of such matters.

Key Dates

Recommendation

The filing indicates a significant, strategic investment by Ares Management, suggesting potential for future corporate actions or value creation. However, the specific nature and outcome of these potential actions are uncertain, warranting a 'hold' position to observe developments rather than an immediate 'buy' or 'sell'.

Keywords

Ferrellgas Partners, Ares Management, Schedule 13D, Class A Units, Class B Units, Beneficial Ownership, Investment Management, SEC Filing, Corporate Governance, Equity Stake, Unit Conversion