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Yahoo
07-05-2025
- Business
- Yahoo
UGI Reports Second Quarter Results and Increases Fiscal 2025 Guidance
EARNINGS CALL AND WEBCAST UGI Corporation will hold a live Internet Audio Webcast of its conference call to discuss the quarterly earnings and other current activities at 9:00 AM ET on Thursday, May 8, 2025. Interested parties may listen to the audio webcast both live and in replay on the Internet at or by visiting the company website and clicking on Investors and then Presentations. A replay of the webcast will be available after the event through to 11:59 PM ET May 7, 2026. "Looking ahead, our natural gas businesses continue to be our primary growth engine, with strategic infrastructure investments predominantly in the regulated utilities businesses, driving rate base expansion. At AmeriGas, the redesign of our business processes and operational practices are underway, as we prioritize enhanced service quality that leads to higher levels of customer retention. Internationally, our disciplined approach is generating strong cash flows that support our corporate priorities. Through focused capital allocation, infrastructure modernization, and strategic portfolio optimization, we are well positioned to create incremental value for our stakeholders." "We delivered strong second quarter results with adjusted diluted EPS rising 12% year-over-year," said Bob Flexon, President and Chief Executive Officer. "Solid operational execution enabled us to effectively meet the higher demand from colder weather while maintaining cost efficiency. Our year-to-date results demonstrate the company's ability to meet evolving market conditions while maintaining our commitment to operational excellence and improving UGI's financial profile. Available liquidity of approximately $1.9 billion as of March 31, 2025. Year-to-date reportable segments earnings before interest expense and income taxes 1 ("EBIT") of $1,112 million compared to $1,073 million in the prior-year period. Year-to-date GAAP diluted EPS of $3.93 and adjusted diluted EPS of $3.58 compared to GAAP diluted EPS of $2.74 and adjusted diluted EPS of $3.16 in the prior-year period. Q2 GAAP diluted EPS of $2.19 and adjusted diluted EPS of $2.21 compared to GAAP diluted EPS of $2.30 and adjusted diluted EPS of $1.97 in the prior-year period. VALLEY FORGE, Pa., May 07, 2025 --( BUSINESS WIRE )--UGI Corporation (NYSE: UGI) today reported financial results for the fiscal quarter ended March 31, 2025. Story Continues ABOUT UGI UGI Corporation (NYSE: UGI) is a distributor and marketer of energy products and services in the US and Europe. UGI offers safe, reliable, affordable, and sustainable energy solutions to customers through its subsidiaries, which provide natural gas transmission and distribution, electric generation and distribution, midstream services, propane distribution, renewable natural gas generation, distribution and marketing, and energy marketing services. Comprehensive information about UGI Corporation is available on the Internet at USE OF NON-GAAP MEASURES Management uses "adjusted net income attributable to UGI Corporation" and "adjusted diluted earnings per share," both of which are non-GAAP financial measures, when evaluating UGI's overall performance. Management believes that these non-GAAP measures provide meaningful information to investors about UGI's performance because they eliminate the impacts of (1) gains and losses on commodity and certain foreign currency derivative instruments not associated with current-period transactions and (2) other significant discrete items that can affect the comparison of period-over-period results. Volatility in net income attributable to UGI can occur as a result of gains and losses on commodity and certain foreign currency derivative instruments not associated with current-period transactions but included in earnings in accordance with U.S. generally accepted accounting principles ("GAAP"). Non-GAAP financial measures are not in accordance with, or an alternative to, GAAP and should be considered in addition to, and not as a substitute for, the comparable GAAP measures. The tables on the last page of this press release reconcile net income attributable to UGI Corporation, the most directly comparable GAAP measure, to adjusted net income attributable to UGI Corporation, and diluted earnings per share, the most comparable GAAP measure, to adjusted diluted earnings per share, to reflect the adjustments referred to above. 1 Reportable segments' EBIT represents an aggregate of our reportable operating segment level EBIT, as determined in accordance with GAAP. 2 Because we are unable to predict certain potentially material items affecting diluted earnings per share on a GAAP basis, principally mark-to-market gains and losses on commodity and certain foreign currency derivative instruments, we cannot reconcile fiscal year 2025 adjusted diluted earnings per share, a non-GAAP measure, to diluted earnings per share, the most directly comparable GAAP measure, in reliance on the "unreasonable efforts" exception set forth in SEC rules. USE OF FORWARD-LOOKING STATEMENTS This press release contains statements, estimates and projections that are forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended). Such statements use forward-looking words such as "believe," "plan," "anticipate," "continue," "estimate," "expect," "may," or other similar words and terms of similar meaning, although not all forward-looking statements contain such words. These statements discuss plans, strategies, events or developments that we expect or anticipate will or may occur in the future. Management believes that these are reasonable as of today's date only. Actual results may differ significantly because of risks and uncertainties that are difficult to predict and many of which are beyond management's control; accordingly, there is no assurance that results will be realized. You should read UGI's Annual Report on Form 10-K for a more extensive list of factors that could affect results. We undertake no obligation (and expressly disclaim any obligation) to update publicly any forward-looking statement, whether as a result of new information or future events, except as required by the federal securities laws. SEGMENT RESULTS ($ in millions, except where otherwise indicated) Utilities For the fiscal quarter ended March 31, 2025 2024 (Decrease) Increase Revenues $ 773 $ 646 $ 127 20 % Total margin (a) $ 385 $ 363 $ 22 6 % Operating and administrative expenses $ 103 $ 97 $ 6 6 % Operating income $ 240 $ 225 $ 15 7 % Earnings before interest expense and income taxes $ 241 $ 226 $ 15 7 % Gas Utility system throughput - billions of cubic feet Core market 53 45 8 18 % Total 128 121 7 6 % Gas Utility degree days—% colder (warmer) than normal (b) 0.3 % (16.4 )% Capital expenditures $ 100 $ 91 $ 9 10 % Gas Utility service territory experienced temperatures that were 15% colder than the prior-year period. Core market volumes increased 18% largely due to colder than prior-year weather. Total margin increased $22 million primarily resulting from higher core market volumes and continued growth in core market customers, partially offset by the effects of the weather normalization adjustments. Operating and administrative expenses increased $6 million primarily reflecting, among other things, higher maintenance expenses and higher uncollectible accounts expenses. Operating income increased $15 million due to the higher total margin ($22 million), partially offset by higher operating and administrative expenses ($6 million) and increased depreciation expense ($3 million) from continued distribution system capital expenditure activity. Midstream & Marketing For the fiscal quarter ended March 31, 2025 2024 (Decrease) Increase Revenues $ 587 $ 483 $ 104 22 % Total margin (a) $ 202 $ 200 $ 2 1 % Operating and administrative expenses $ 31 $ 29 $ 2 7 % Operating income $ 151 $ 151 $ — — % Earnings before interest expense and income taxes $ 154 $ 153 $ 1 1 % Heating degree days - % colder (warmer) than normal (b) 2.5 % (13.4 )% Capital expenditures $ 27 $ 33 $ (6 ) (18 )% Temperatures were 15% colder than the prior-year period. Total margin increased $2 million largely due to higher margins from capacity management ($5 million) and gas marketing activities ($3 million), partially offset by lower midstream margins ($5 million) which arose mainly from lower natural gas gathering and processing activities and the absence of power generation margin associated with the sale of Hunlock Creek in September 2024. Operating income was consistent with the prior-year period as higher total margin ($2 million) was offset by increased operating and administrative expenses ($2 million). UGI International For the fiscal quarter ended March 31, 2025 2024 (Decrease) Increase Revenues $ 650 $ 673 $ (23 ) (3 )% Total margin (a) $ 302 $ 305 $ (3 ) (1 )% Operating and administrative expenses (a) $ 142 $ 155 $ (13 ) (8 )% Operating income $ 139 $ 124 $ 15 12 % Earnings before interest expense and income taxes $ 143 $ 131 $ 12 9 % LPG retail gallons sold (millions) 213 221 (8 ) (4 )% Heating degree days - % (warmer) than normal (b) (2.2 )% (13.2 )% Capital expenditures $ 17 $ 19 $ (2 ) (11 )% UGI International base-currency results are translated into U.S. dollars based upon exchange rates experienced during the reporting periods. Differences in these translation rates affect the comparison of line item amounts presented in the table above. The functional currency of a significant portion of our UGI International results is the euro and, to a much lesser extent, the British pound sterling. During the 2025 and 2024 three-month periods, the average unweighted euro-to-dollar translation rates were approximately $1.05 and $1.09, respectively, and the average unweighted British pound sterling-to-dollar translation rates were approximately $1.26 and $1.27, respectively. Temperatures were 2% warmer than normal and 10% colder than the prior-year period. Retail volumes were 4% lower than the prior-year period largely due to continued structural conservation and the absence of certain customers who previously converted from natural gas to LPG, substantially offset by the effects of colder weather. Total margin decreased $3 million primarily due to lower LPG volumes and the translation effects of the weaker foreign currencies (~$9 million), substantially offset by higher LPG unit margins. Operating and administrative expenses decreased $13 million reflecting lower personnel-related, maintenance and distribution expenses and the translation effects of the weaker foreign currencies (~$6 million). Operating income increased $15 million reflecting lower operating and administrative expenses ($13 million) and higher other operating income, partially offset by lower total margin ($3 million). Earnings before interest expense and income taxes increased $12 million due to the higher operating income, partially offset by lower realized gains on foreign currency exchange contracts ($3 million). AmeriGas Propane For the fiscal quarter ended March 31, 2025 2024 (Decrease) Increase Revenues $ 848 $ 795 $ 53 7 % Total margin (a) $ 446 $ 433 $ 13 3 % Operating and administrative expenses $ 257 $ 258 $ (1 ) — % Operating income / earnings before interest expense and income taxes $ 154 $ 138 $ 16 12 % Retail gallons sold (millions) 269 261 8 3 % Heating degree days - % colder (warmer) than normal (b) 2.8 % (8.6 )% Capital expenditures $ 16 $ 24 $ (8 ) (33 )% Temperatures were 3% colder than normal and 11% colder than the prior-year period. Retail gallons increased 3% due to the impact of the colder weather, partially offset by the effect of net customer attrition. Total margin increased $13 million due to higher LPG volumes and increased LPG unit margins ($7 million), partially offset by lower fee income ($4 million) primarily attributable to lower fuel recovery fee and tank rental income. Operating income increased $16 million largely reflecting increased total margin ($13 million) and higher gain from asset sales ($4 million). (a) Total margin represents total revenue less total cost of sales. In the case of Utilities, total margin is also reduced by certain revenue-related taxes. (b) Deviation from average heating degree days is determined on a 10-year period utilizing volume-weighted weather data. REPORT OF EARNINGS – UGI CORPORATION (Millions of dollars, except per share) (Unaudited) Three Months Ended March 31, Six Months Ended March 31, Twelve Months Ended March 31, 2025 2024 2025 2024 2025 2024 Revenues: Utilities $ 773 $ 646 $ 1,258 $ 1,139 $ 1,717 $ 1,627 Midstream & Marketing 587 483 954 877 1,446 1,417 UGI International 650 673 1,288 1,398 2,169 2,538 AmeriGas Propane 848 795 1,475 1,424 2,322 2,372 Corporate & Other (a) (192 ) (130 ) (279 ) (250 ) (336 ) (303 ) Total revenues $ 2,666 $ 2,467 $ 4,696 $ 4,588 $ 7,318 $ 7,651 Earnings before interest expense and income taxes: Utilities 241 226 $ 382 $ 361 $ 421 $ 393 Midstream & Marketing 154 153 249 255 307 334 UGI International 143 131 253 248 328 288 AmeriGas Propane 154 138 228 209 161 229 Total reportable segments 692 648 1,112 1,073 1,217 1,244 Corporate & Other (a) 4 81 103 (124 ) (217 ) (779 ) Total earnings before interest expense and income taxes 696 729 1,215 949 1,000 465 Interest expense: Utilities (25 ) (24 ) (51 ) (47 ) (97 ) (87 ) Midstream & Marketing (12 ) (9 ) (24 ) (20 ) (45 ) (43 ) UGI International (11 ) (11 ) (21 ) (22 ) (43 ) (43 ) AmeriGas Propane (37 ) (40 ) (70 ) (81 ) (145 ) (162 ) Corporate & Other, net (a) (17 ) (16 ) (38 ) (30 ) (68 ) (59 ) Total interest expense (102 ) (100 ) (204 ) (200 ) (398 ) (394 ) Income before income taxes 594 629 1,011 749 602 71 Income tax expense (115 ) (133 ) (157 ) (159 ) (69 ) (139 ) Net income (loss) attributable to UGI Corporation $ 479 $ 496 $ 854 $ 590 $ 533 $ (68 ) Earnings (loss) per share attributable to UGI shareholders: Basic $ 2.23 $ 2.36 $ 3.97 $ 2.81 $ 2.49 $ (0.32 ) Diluted $ 2.19 $ 2.30 $ 3.93 $ 2.74 $ 2.46 $ (0.32 ) Weighted Average common shares outstanding (thousands): Basic 214,976 209,826 214,965 209,789 213,897 210,347 Diluted 218,944 215,245 217,331 215,393 216,319 210,347 Supplemental information: Net income (loss) attributable to UGI Corporation: Utilities $ 166 $ 155 $ 255 $ 241 $ 251 $ 236 Midstream & Marketing 150 120 239 212 265 262 UGI International 93 91 193 174 281 209 AmeriGas Propane 25 37 (21 ) 53 (97 ) 2 Total reportable segments 434 403 666 680 700 709 Corporate & Other (a) 45 93 188 (90 ) (167 ) (777 ) Total net income (loss) attributable to UGI Corporation $ 479 $ 496 $ 854 $ 590 $ 533 $ (68 ) (a) Corporate & Other includes specific items attributable to our reportable segments that are not included in profit measures used by our Chief Operating Decision Maker in assessing our reportable segments' performance or allocating resources. These specific items are shown in the section titled "Non-GAAP Financial Measures - Adjusted Net Income (Loss) Attributable to UGI and Adjusted Diluted Earnings Per Share" below. Corporate & Other also includes the elimination of certain intercompany transactions. Non-GAAP Financial Measures - Adjusted Net Income Attributable to UGI and Adjusted Diluted Earnings Per Share. The following tables reconcile net income attributable to UGI Corporation, the most directly comparable GAAP measure, to adjusted net income attributable to UGI Corporation, and reconcile diluted earnings per share, the most comparable GAAP measure, to adjusted diluted earnings per share, to reflect the adjustments referred to previously: Three Months Ended March 31, Six Months Ended March 31, Twelve Months Ended March 31, 2025 2024 2025 2024 2025 2024 Adjusted net income attributable to UGI Corporation (millions): Net income (loss) attributable to UGI Corporation $ 479 $ 496 $ 854 $ 590 $ 533 $ (68 ) Net gains on commodity derivative instruments not associated with current-period transactions (net of tax of $15, $19, $29, $1, $45 and $11, respectively) (5 ) (110 ) (69 ) (33 ) (96 ) (42 ) Unrealized losses (gains) on foreign currency derivative instruments (net of tax of $(3), $0, $3, $(6), $0 and $(3), respectively) 10 (1 ) (6 ) 13 3 4 Loss associated with impairment of AmeriGas Propane goodwill (net of tax of $0, $0, $0, $0, $(3), and $4, respectively) — — — — 192 660 Loss on extinguishment of debt (net of tax of $0, $0, $0, $0, $(3) and $(2), respectively) — — — — 6 7 Impairment of equity method investments and assets (net of tax of $0, $(2), $0, $(2), $(1) and $(2), respectively) — 5 — 5 25 5 Business transformation expenses (net of tax of $0, $0, $0, $0, $0, and $(2), respectively) — — — — — 4 Costs associated with exit of the UGI International energy marketing business (net of tax of $0, $(1), $0, $(14), $(1) and $(17), respectively) — 1 — 66 3 77 AmeriGas operations enhancement for growth project (net of tax of $0, $(1), $0, $(3), $(3) and $(6), respectively) — 5 — 10 9 18 Restructuring costs (net of tax of $0, $(9), $0, $(10), $(10) and $(10), respectively) — 27 — 30 26 30 Net gain on sale of UGI headquarters building (net of tax of $0, $0, $0, $0, $0 and $4, respectively) — — — — — (10 ) Loss on disposal of UGID (net of tax of $0, $0, $0, $0, $(11), and $0, respectively) — — — — 55 — Total adjustments (1) 5 (73 ) (75 ) 91 223 753 Adjusted net income attributable to UGI Corporation $ 484 $ 423 $ 779 $ 681 $ 756 $ 685 Adjusted diluted earnings per share: UGI Corporation earnings (loss) per share — diluted (2) $ 2.19 $ 2.30 $ 3.93 $ 2.74 $ 2.46 $ (0.32 ) Net gains on commodity derivative instruments not associated with current-period transactions (0.03 ) (0.50 ) (0.32 ) (0.16 ) (0.44 ) (0.29 ) Unrealized losses (gains) on foreign currency derivative instruments 0.05 — (0.03 ) 0.06 0.01 0.02 Loss associated with impairment of AmeriGas Propane goodwill — — — — 0.89 3.14 Loss on extinguishment of debt — — — — 0.03 0.03 Impairment of equity method investments and assets — 0.02 — 0.02 0.12 0.02 Business transformation expenses — — — — — 0.02 Costs associated with the exit of the UGI International energy marketing business — — — 0.31 0.01 0.37 AmeriGas operations enhancement for growth project — 0.02 — 0.05 0.04 0.09 Restructuring costs — 0.13 — 0.14 0.12 0.14 Net gain on sale of UGI headquarters building — — — — — (0.05 ) Loss on disposal of UGID — — — — 0.25 — Total adjustments (2) 0.02 (0.33 ) (0.35 ) 0.42 1.03 3.49 Adjusted diluted earnings per share (2) $ 2.21 $ 1.97 $ 3.58 $ 3.16 $ 3.49 $ 3.17 (1) Income taxes associated with pre-tax adjustments determined using statutory business unit tax rates. (2) The loss per share for the twelve months ended March 31, 2024, was determined excluding the effect of 5.76 million dilutive shares as the impact of such shares would have been antidilutive to the net loss for the period. Adjusted earnings per share for the twelve months ended March 31, 2024, was determined based upon fully diluted shares of 216.11 million. View source version on Contacts INVESTOR RELATIONS Tel: +1 610-337-1000 Tameka Morris, ext. 6297 Arnab Mukherjee, ext. 7498
Yahoo
06-05-2025
- Business
- Yahoo
UGI Corporation (UGI) Benefited From Improved Leadership
Diamond Hill Capital, an investment management company, released its 'Small Cap Fund' first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q1, markets were uneven due to the new presidential administration's activity, leading to concern about the future. The Russell 3000 Index fell by 4.7% in Q1, the first quarterly loss since Q3 2023. Diamond Hill Small Cap Fund returned -11.56% in Q1, trailing the Russell 2000 Index's -9.48% return. For more information on the fund's top picks in 2025, please check its top five holdings. In its first-quarter 2025 investor letter, Diamond Hill Small Cap Fund highlighted stocks such as UGI Corporation (NYSE:UGI). UGI Corporation (NYSE:UGI) engages in the marketing and distribution of energy products and services. UGI Corporation's (NYSE:UGI) one-month return was 11.07%, and its shares gained 36.54% of their value over the last 52 weeks. On May 5, 2025, UGI Corporation (NYSE:UGI) stock closed at $33.52 per share with a market capitalization of $7.201 billion. Diamond Hill Small Cap Fund stated the following regarding UGI Corporation (NYSE:UGI) in its Q1 2025 investor letter: "On an individual holdings basis, among our top contributors in Q1 were Mr. Cooper Group and UGI Corporation (NYSE:UGI. Natural gas and electric power utility UGI is benefiting from improved leadership under experienced, new CEO Bob Flexon, who has a solid strategy for improving UGI's underperforming US propane business. We have confidence Flexon can maximize the value of each of UGI's business segments and maintain our conviction in the company's ability to shift its portfolio into more sustainable fuel types over the long term, allowing it to capitalize on its advantage in delivering alternative fuels to rural locations not easily served by gas pipelines." UGI Corporation (UGI): Among the Cheap Dividend Stocks Being Targeted by Short Sellers A view of the skyline from an electricity pylon, to show the ubiquity of the companies energy products. UGI Corporation (NYSE:UGI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held UGI Corporation (NYSE:UGI) at the end of the fourth quarter, compared to 26 in the third quarter. While we acknowledge the potential of UGI Corporation (NYSE:UGI) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Yahoo
05-02-2025
- Business
- Yahoo
UGI Reports Fiscal 2025 First Quarter Results
VALLEY FORGE, Pa., February 05, 2025--(BUSINESS WIRE)--UGI Corporation (NYSE: UGI) today reported financial results for the fiscal quarter ended December 31, 2024. HIGHLIGHTS Q1 GAAP diluted EPS of $1.74 and adjusted diluted EPS of $1.37 compared to GAAP diluted EPS of $0.44 and adjusted diluted EPS of $1.20 in the prior-year period. Q1 reportable segments earnings before interest expense and income taxes1 ("EBIT") of $420 million compared to $425 million in the prior-year period. Available liquidity of approximately $1.5 billion as of December 31, 2024. Filed a gas base rate case for UGI Utilities with the PA Public Utility Commission on January 27, 2025, requesting an overall distribution rate increase of approximately $110 million. On February 5, 2025, AmeriGas Partners, L.P. and AmeriGas Finance Corp issued a notice of redemption to fully redeem their outstanding 2025 Senior Notes. The redemption will be funded by a two-year unsecured intercompany loan between UGI International and AmeriGas, which AmeriGas expects to repay using its free cash flow. "Disciplined execution within our natural gas and international propane businesses along with a renewed focus on the operational performance at AmeriGas led to a 14% increase in adjusted diluted EPS over the prior year," said Bob Flexon, President and Chief Executive Officer. "Our natural gas businesses benefited from strong gas demand and higher gas rates at the West Virginia gas utility, while our Global LPG businesses realized relatively comparable volumes and reduced operating and administrative expenses when compared to the prior-year period. The solid underlying performance by our reportable segments, coupled with benefits from our continuing tax planning strategies, led to the strong fiscal first quarter results." "At UGI, we are strengthening our foundation through renewed focus on our people and culture, and driving operational improvements, particularly at AmeriGas Propane where we must significantly enhance our business processes, commercial practices, and service quality. These operational improvements along with disciplined capital allocation, strategic portfolio optimization, and strong balance sheet management will better position UGI to deliver consistent growth and greater value for its shareholders." EARNINGS CALL AND WEBCAST UGI Corporation will hold a live Internet Audio Webcast of its conference call to discuss the quarterly earnings and other current activities at 9:00 AM ET on Thursday, February 6, 2025. Interested parties may listen to the audio webcast both live and in replay on the Internet at or by visiting the company website and clicking on Investors and then Presentations. A replay of the webcast will be available after the event through to 11:59 PM ET February 5, 2026. ABOUT UGI UGI Corporation (NYSE: UGI) is a distributor and marketer of energy products and services in the US and Europe. UGI offers safe, reliable, affordable, and sustainable energy solutions to customers through its subsidiaries, which provide natural gas transmission and distribution, electric generation and distribution, midstream services, propane distribution, renewable natural gas generation, distribution and marketing, and energy marketing services. Comprehensive information about UGI Corporation is available on the Internet at USE OF NON-GAAP MEASURES Management uses "adjusted net income attributable to UGI Corporation" and "adjusted diluted earnings per share," both of which are non-GAAP financial measures, when evaluating UGI's overall performance. Management believes that these non-GAAP measures provide meaningful information to investors about UGI's performance because they eliminate the impacts of (1) gains and losses on commodity and certain foreign currency derivative instruments not associated with current-period transactions and (2) other significant discrete items that can affect the comparison of period-over-period results. Volatility in net income attributable to UGI can occur as a result of gains and losses on commodity and certain foreign currency derivative instruments not associated with current-period transactions but included in earnings in accordance with U.S. generally accepted accounting principles ("GAAP"). Non-GAAP financial measures are not in accordance with, or an alternative to, GAAP and should be considered in addition to, and not as a substitute for, the comparable GAAP measures. The tables on the last page of this press release reconcile net income attributable to UGI Corporation, the most directly comparable GAAP measure, to adjusted net income attributable to UGI Corporation, and diluted earnings per share, the most comparable GAAP measure, to adjusted diluted earnings per share, to reflect the adjustments referred to above. 1 Reportable segments' EBIT represents an aggregate of our reportable operating segment level EBIT, as determined in accordance with GAAP. USE OF FORWARD-LOOKING STATEMENTS This press release contains statements, estimates and projections that are forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended). Such statements use forward-looking words such as "believe," "plan," "anticipate," "continue," "estimate," "expect," "may," or other similar words and terms of similar meaning, although not all forward-looking statements contain such words. These statements discuss plans, strategies, events or developments that we expect or anticipate will or may occur in the future. Management believes that these are reasonable as of today's date only. Actual results may differ significantly because of risks and uncertainties that are difficult to predict and many of which are beyond management's control; accordingly, there is no assurance that results will be realized. You should read UGI's Annual Report on Form 10-K for a more extensive list of factors that could affect results. We undertake no obligation (and expressly disclaim any obligation) to update publicly any forward-looking statement, whether as a result of new information or future events, except as required by the federal securities laws. SEGMENT RESULTS ($ in millions, except where otherwise indicated) Utilities For the fiscal quarter ended December 31, 2024 2023 (Decrease) Increase Revenues $ 485 $ 493 $ (8 ) (2 )% Total margin (a) $ 274 $ 265 $ 9 3 % Operating and administrative expenses $ 91 $ 88 $ 3 3 % Operating income $ 138 $ 134 $ 4 3 % Earnings before interest expense and income taxes $ 141 $ 135 $ 6 4 % Gas Utility system throughput - billions of cubic feet Core market 31 30 1 3 % Total 98 104 (6 ) (6 )% Gas Utility heating degree days - % (warmer) than normal (b) (3.2 )% (11.0 )% Capital expenditures $ 106 $ 82 $ 24 29 % Gas Utility service territory experienced temperatures that were 3% colder than the prior-year period. Core market volumes increased 3% largely due to colder than prior-year weather. Total margin increased $9 million primarily resulting from higher gas rates at the West Virginia gas utility. Operating and administrative expenses increased $3 million primarily reflecting, among other things, higher personnel expenses and higher uncollectible accounts expenses. Operating income increased $4 million due to the higher total margin ($9 million) and lower operating and administrative expenses ($3 million), partially offset by higher depreciation expense ($3 million) from continued distribution system capital expenditure activity. Midstream & Marketing For the fiscal quarter ended December 31, 2024 2023 (Decrease) Increase Revenues $ 367 $ 394 $ (27 ) (7 )% Total margin (a) $ 138 $ 155 $ (17 ) (11 )% Operating and administrative expenses $ 29 $ 31 $ (2 ) (6 )% Operating income $ 91 $ 99 $ (8 ) (8 )% Earnings before interest expense and income taxes $ 95 $ 102 $ (7 ) (7 )% Heating degree days - % (warmer) than normal (b) (3.9 )% (6.8 )% Capital expenditures $ 32 $ 19 $ 13 68 % Temperatures were 4% colder than the prior-year period. Total margin decreased $17 million largely due to lower midstream margins ($10 million) which arose mainly from lower natural gas gathering and processing activities, the absence of power generation margin associated with the sale of Hunlock Creek in September 2024 ($4 million), and lower capacity management margins. Operating and administrative expenses decreased $2 million largely reflecting lower personnel-related expenses. Operating income decreased $8 million as lower total margin ($17 million) was partially offset by reduced operating and administrative expenses, lower depreciation expense and higher other operating income ($6 million). UGI International For the fiscal quarter ended December 31, 2024 2023 (Decrease) Increase Revenues $ 638 $ 725 $ (87 ) (12 )% Total margin (a) $ 264 $ 279 $ (15 ) (5 )% Operating and administrative expenses (a) $ 134 $ 147 $ (13 ) (9 )% Operating income $ 106 $ 113 $ (7 ) (6 )% Earnings before interest expense and income taxes $ 110 $ 117 $ (7 ) (6 )% LPG retail gallons sold (millions) 218 214 4 2 % Heating degree days - % (warmer) than normal (b) (3.5 )% (12.0 )% Capital expenditures $ 14 $ 12 $ 2 17 % UGI International base-currency results are translated into U.S. dollars based upon exchange rates experienced during the reporting periods. Differences in these translation rates affect the comparison of line item amounts presented in the table above. The functional currency of a significant portion of our UGI International results is the euro and, to a much lesser extent, the British pound sterling. During the 2024 and 2023 three-month periods, the average unweighted euro-to-dollar translation rates were approximately $1.07 and $1.08, respectively, and the average unweighted British pound sterling-to-dollar translation rates were approximately $1.28 and $1.24, respectively. Temperatures were 4% warmer than normal and 8% colder than the prior-year period. Retail volumes were 2% higher than the prior-year period largely due to higher volumes from crop drying campaigns and the effects of colder weather. Total margin decreased $15 million primarily due to lower margin from the non-core energy marketing activities and, to a lesser extent, lower LPG unit margins partially offset by higher LPG volumes. Operating and administrative expenses decreased $13 million reflecting lower personnel-related and maintenance expenses, and the effect of exiting substantially all of the non-core energy marketing business. Operating income decreased $7 million reflecting lower total margin ($15 million) and lower foreign currency transaction gains ($2 million), partially offset by lower operating and administrative expenses ($13 million). AmeriGas Propane For the fiscal quarter ended December 31, 2024 2023 (Decrease) Increase Revenues $ 627 $ 629 $ (2 ) — % Total margin (a) $ 347 $ 346 $ 1 — % Operating and administrative expenses $ 236 $ 243 $ (7 ) (3 )% Operating income /earnings before interest expense and income taxes $ 74 $ 71 $ 3 4 % Retail gallons sold (millions) 204 206 (2 ) (1 )% Heating degree days - % (warmer) colder than normal (b) (6.3 )% (6.4 )% Capital expenditures $ 23 $ 20 $ 3 15 % Temperatures were 6% warmer than normal and comparable to the prior-year period. Retail gallons decreased 1% as the effect of net customer attrition was partially offset by weather that was colder than the prior December period. Total margin was fairly consistent as higher LPG unit margins ($7 million) offset the impact of a modest decline in retail volume ($3 million) and lower fee income. Operating and administrative expenses decreased $7 million largely reflecting lower compensation. Operating income increased $3 million as lower operating and administrative expenses were partially reduced by lower gain from asset sales. (a) Total margin represents total revenue less total cost of sales. In the case of Utilities, total margin is also reduced by certain revenue-related taxes.(b) Deviation from average heating degree days is determined on a 10-year period utilizing volume-weighted weather data. REPORT OF EARNINGS – UGI CORPORATION(Millions of dollars, except per share)(Unaudited) Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 Revenues: Utilities $ 485 $ 493 $ 1,590 $ 1,755 Midstream & Marketing 367 394 1,342 1,572 UGI International 638 725 2,192 2,813 AmeriGas Propane 627 629 2,269 2,444 Corporate & Other (a) (87 ) (120 ) (274 ) (294 ) Total revenues $ 2,030 $ 2,121 $ 7,119 $ 8,290 Earnings (loss) before interest expense and income taxes: Utilities $ 141 $ 135 $ 406 $ 372 Midstream & Marketing 95 102 306 286 UGI International 110 117 316 285 AmeriGas Propane 74 71 145 229 Total reportable segments 420 425 1,173 1,172 Corporate & Other (a) 99 (205 ) (140 ) (1,179 ) Total earnings (loss) before interest expense and income taxes 519 220 1,033 (7 ) Interest expense: Utilities (26 ) (23 ) (96 ) (84 ) Midstream & Marketing (12 ) (11 ) (42 ) (45 ) UGI International (10 ) (11 ) (43 ) (41 ) AmeriGas Propane (33 ) (41 ) (148 ) (161 ) Corporate & Other, net (a) (21 ) (14 ) (67 ) (56 ) Total interest expense (102 ) (100 ) (396 ) (387 ) Income (loss) before income taxes 417 120 637 (394 ) Income tax expense (42 ) (26 ) (87 ) (60 ) Net income (loss) attributable to UGI Corporation $ 375 $ 94 $ 550 $ (454 ) Earnings (loss) per share attributable to UGI shareholders: Basic $ 1.74 $ 0.45 $ 2.58 $ (2.16 ) Diluted $ 1.74 $ 0.44 $ 2.55 $ (2.16 ) Weighted Average common shares outstanding (thousands): Basic 214,933 209,782 213,204 209,778 Diluted 215,695 215,570 215,875 209,778 Supplemental information: Net income (loss) attributable to UGI Corporation: Utilities $ 89 $ 86 $ 240 $ 224 Midstream & Marketing 89 92 235 208 UGI International 100 83 279 210 AmeriGas Propane (46 ) 16 (85 ) 38 Total reportable segments 232 277 669 680 Corporate & Other (a) 143 (183 ) (119 ) (1,134 ) Total net income (loss) attributable to UGI Corporation $ 375 $ 94 $ 550 $ (454 ) (a) Corporate & Other includes specific items attributable to our reportable segments that are not included in profit measures used by our Chief Operating Decision Maker in assessing our reportable segments' performance or allocating resources. These specific items are shown in the section titled "Non-GAAP Financial Measures - Adjusted Net Income (Loss) Attributable to UGI and Adjusted Diluted Earnings Per Share" below. Corporate & Other also includes the elimination of certain intercompany transactions. Non-GAAP Financial Measures - Adjusted Net Income Attributable to UGI and Adjusted Diluted Earnings Per Share. The following tables reconcile net income attributable to UGI Corporation, the most directly comparable GAAP measure, to adjusted net income attributable to UGI Corporation, and reconcile diluted earnings per share, the most comparable GAAP measure, to adjusted diluted earnings per share, to reflect the adjustments referred to previously: Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 Adjusted net income attributable to UGI Corporation (millions): Net income (loss) attributable to UGI Corporation $ 375 $ 94 $ 550 $ (454 ) Net (gains) losses on commodity derivative instruments not associated with current-period transactions (net of tax of $14, $(18), $49 and $(74), respectively) (64 ) 77 (201 ) 303 Unrealized (gains) losses on foreign currency derivative instruments (net of tax of $6, $(6), $3 and $(6), respectively) (16 ) 14 (8 ) 12 Loss associated with impairment of AmeriGas Propane goodwill (net of tax of $0, $0, $(3), and $4, respectively) — — 192 660 Loss on extinguishment of debt (net of tax of $0, $0, $(3) and $(2), respectively) — — 6 7 Impairment of equity method investments and assets (net of tax of $0, $0, $(3) and $0, respectively) — — 30 — Business transformation expenses (net of tax of $0, $0, $0, and $(2), respectively) — — — 6 Costs associated with exit of the UGI International energy marketing business (net of tax of $0, $(13), $(2) and $(12), respectively) — 65 4 80 AmeriGas operations enhancement for growth project (net of tax of $0, $(2), $(4) and $(6), respectively) — 5 14 18 Restructuring costs (net of tax of $0, $(1), $(19) and $(1), respectively) — 3 53 3 Net gain on sale of UGI headquarters building (net of tax of $0, $0, $0 and $4, respectively) — — — (10 ) Loss on disposal of UGID (net of tax of $0, $0, $(11), and $0, respectively) — — 55 — Total adjustments (1) (80 ) 164 145 1,079 Adjusted net income attributable to UGI Corporation $ 295 $ 258 $ 695 $ 625 Adjusted diluted earnings per share: UGI Corporation earnings (loss) per share — diluted (2) $ 1.74 $ 0.44 $ 2.55 $ (2.16 ) Net (gains) losses on commodity derivative instruments not associated with current-period transactions (0.30 ) 0.37 (0.93 ) 1.36 Unrealized (gains) losses on foreign currency derivative instruments (0.07 ) 0.06 (0.04 ) 0.06 Loss associated with impairment of AmeriGas Propane goodwill — — 0.89 3.15 Loss on extinguishment of debt — — 0.03 0.03 Impairment of equity method investments and assets — — 0.14 — Business transformation expenses — — — 0.03 Costs associated with the exit of the UGI International energy marketing business — 0.30 0.02 0.38 AmeriGas operations enhancement for growth project — 0.02 0.06 0.09 Restructuring costs — 0.01 0.25 0.01 Net gain on sale of UGI headquarters building — — — (0.05 ) Loss on disposal of UGID — — 0.25 — Total adjustments (2) (0.37 ) 0.76 0.67 5.06 Adjusted diluted earnings per share (2) $ 1.37 $ 1.20 $ 3.22 $ 2.90 (1) Income taxes associated with pre-tax adjustments determined using statutory business unit tax rates. (2) The loss per share for the twelve months ended December 31, 2023, was determined excluding the effect of 5.97 million dilutive shares as the impact of such shares would have been antidilutive to the net loss for the period. Adjusted earnings per share for the twelve months ended December 31, 2023, was determined based upon fully diluted shares of 215.75 million. View source version on Contacts INVESTOR RELATIONSTel: +1 610-337-1000Tameka Morris, ext. 6297Arnab Mukherjee, ext. 7498 Sign in to access your portfolio
