FERRELLGAS: AN ENERGY SOURCE ACROSS THE NATION; COMPANY GROWS TO 850 FACILITIES IN 45 STATES

David Webb filled 33-pound forklift propane tanks at the Ferrellgas facility in Cape Girardeau.

A Ferrellgas delivery truck was filled at the Cape Girardeau facility.

Propane tanks of various sizes were ready for shipment to customers.

Ferrellgas, which started in Cape Girardeau scene almost a decade ago, commands a big portion of the propane market in Southeast Missouri.

Ferrellgas, a Missouri company founded more than a half-century ago at Liberty, is one of the top three companies in the retail and wholesale marketing of propane in the United States, sandwiched between national leader Amerigas and Suburban Propane.

"There's little difference in the top three companies in the U.S.," said James E. Ferrell, chairman and chief executive officer. "We're very close."

Ferrellgas has grown from a small, locally owned company, to a $750 million nationwide conglomerate with more than 850 facilities in 45 states and more than 4,500 employees.

The company, headquartered in Liberty, includes a number of outlets in Southeast Missouri, including Cape Girardeau. Ferrellgas purchased Buckeye Gas Products Co., 2112 William, in August 1987.

Ferrellgas is the sixth owner of the operation at Cape Girardeau, since it started as Uregas, said Roger A. Pierce, district manager. Uregas sold to Suburban. Other companies involved in the operation before purchase by Ferrellgas, were Williams, Energy and Buckeye.

Pierce, who works from the Cape Girardeau store, has more than 29 years in the propane gas industry. He previously worked with Buckeye.

"We have a number of satellite sites working out of the Cape Girardeau office," said Pierce. These include offices at Benton, Marble Hill and Perryville in Missouri and Anna, Ill., and Paducah, Ky.

Ferrellgas was established in 1939 by A.C. Ferrell. Today, his son, James E. Ferrell, keeps the company going. The younger Ferrell has played an integral part in the company's growth to its leadership position within the industry.

"We provide reliable delivery," said Ferrell, who was in Cape Girardeau to visit the local retail store. "Our nationwide supply and storage network allows us to keep product on hand and ready for delivery, even during peak demand."

Ferrellgas owns and operates its own trading, supply and transportation facilities and is a major shipper on all U.S. pipelines.

"We have a large procurement office in Houston," said Ferrell. "We buy propane from almost every producer in the U.S., Canada and some international companies. We have hundreds of sources for our product."

The company continues to expand.

"We have a very active acquisition program," said Ferrell. "This is an industry with many companies. There are several thousand propane companies."

Ferrellgas Partners, L.P., which is traded on the New York Stock Exchange, has a national market share of 9 to 10 percent, a shade above Suburban Propane, and a shade below Amerigas.

Ferrellgas has more than 600 retail districts and 250 satellite locations, with more than 900,000 customers, ranging from households to commercial accounts,

Ferrellgas commands as much as 30 to 35 percent of the market share in Southeast Missouri.

"There's been a big movement to rural areas, and this usually means propane gas or electric heat," said Ferrell.

As many as 20 percent of Americans use propane in some form.

"We have a big market in Southeast Missouri," said Ferrell. "A lot of people use propane for recreational and outdoor activities -- barbecue grills, etc.

More than 60 million people in the United States use about 15 billion gallons of propane annually.

The largest portion of propane -- 7.6 billion gallons -- is used for chemical industrial uses.

Other uses include internal combustion engines, 542 million gallons; residential/commercial usage, 5.3 billion gallons; agriculture, 1.4 billion gallons; utility/gas industry, 68.6 million

Propane gas was developed in 1910 by chemist Dr. Walter Snelling, who built a "still" that could separate gasoline into liquid an gaseous components.

A year later, propane gas was used to cook in homes. In 1912, the first propane-powered car was developed, and by 1915, propane was being used in torches to cut through metal. Propane was marketed for flame cutting and cooking applications by 1920.

In 1927, U.S. sales of propane were more than 1 million gallons, and after World War II the propane gas increased annually to its current 15 billion gallons.

Snelling sold his propane patent to Frank Phillips, founder of Phillips Petroleum, for $50,000.

Today, propane gas is an $8 billion industry in the United States and growing. More than 96,000 people are employed in the industry.

Propane is the fourth largest energy source, behind electricity, natural gas and fuel oil, and is an approved fuel by the 1990 Clean Air Act.

The top five retailers of propane is Amerigas, Ferrelgas, Suburban, Empire and Shel Gas, but as many as 8,000 retailers provide propane.