Why 2017 was a Year to Forget for Ferrellgas Partners, L.P.
Ferrellgas Partners, L.P. (NYSE: FGP) has long operated in the propane delivery space. That's a boring corner of the energy world, driven by bolt on acquisitions that build reach and scale and offset the slow attrition that plagues the industry. A move to expand beyond this niche, however, has taken a big toll on Ferrellgas. While the pain started in 2016, the full impact of this move really hit home in 2017. Here's why 2017 was a year to forget for Ferrellgas Partners and its unitholders, and what it tells us about the future.
On the surface, Ferrellgas' idea of expanding beyond propane made complete sense. It would increase the partnership's diversification with assets that appeared to be complementary to its core energy business. The expansion into midstream oil and natural gas really started to take shape under CEO Steve Wambold with the 2014 acquisition of Sable Environmental, a purchase that led to the creation of Ferrellgas' midstream oil and gas division.
Image source: Getty Images
Source: Fool.com