Master limited partner, Ferrellgas Partners L.P. (FGP) has acquired Augusta, Georgia-based propane company, the Bennett Gas Company. Bennett Gas is an independent propane retailer serving the propane needs of residential and industrial customers in eastern Georgia and western South Carolinas.

Ferrellgas' strategy has been relatively simple: achieve operating efficiencies through the utilization of technology; capitalize on its national presence and economies of scale; expand its operations through disciplined acquisitions and internal growth; and align employee interest with investors through significant employee ownership.

Acquisitions have played an important growth catalyst for Ferrellgas for more than 40 years. Having completed more than 225 acquisitions, Ferrellgas has grown from a single-location, independently-owned propane retailer to a publicly-traded company, which is now one of the largest propane companies in the United States.

Over the years, Ferrellgas has added some of the best assets to its credit – namely ProAm, Blue Rhino, Vanson LLC, etc. and retail propane operators in eastern Kansas and southern Missouri. These acquisitions are expected to complement the partnership's existing operations.

Ferrellgas currently has a Zacks #4 Rank (short-term Sell rating). Although the partnership has grown through acquisition, its highly levered balance sheet and lack of near-term catalysts prompt us to maintain a long-term ‘Neutral' rating on the stock.