Ferrellgas sells Bridger Energy

Ferrellgas Partners sold Bridger Energy LLC, a subsidiary of Bridger Logistics, which is a subsidiary of Ferrellgas LP, to an undisclosed buyer. Terms of the transaction were not announced.

“This transaction is a clear example of Ferrellgas’ commitment to debt reduction,” says James Ferrell, interim CEO and president of Ferrellgas. “The sale significantly reduces our interest expense, improves our credit metrics and lessens the company’s reliance on its credit facility as we move forward with growth efforts. In addition, today’s announcement lowers the risk profile of our business while only minimally impacting earnings before interest, tax, depreciation and amortization.”

After the sale, the company says it will exit Bridger Energy’s oil purchase and sale activity, and as a result will realize a near-term reduction in letters of credit issued to support Bridger Energy from its current credit facility of about $80 million. On an annualized basis, the interest expense savings associated with the reduction in issued letters of credit and surety bonding of the business will be about $4.5 million. 

“As we work toward the renewal of our working capital facilities, this sale reduces the amount of credit support we will need from those renewed facilities with a more-than-adequate level of liquidity available to us to run our business,” Ferrell says. “Strategically, we will continue to execute on objectives that raise cash and reduce expenses, particularly initiatives that are not weather dependent. We have excellent momentum, our employees remain focused on providing excellent service to our customers, and we continue to see solid progress towards our goals.”