Slide 1: Fiscal 2016 Second Quarter Results
1 Fiscal 2016 Second Quarter Results John Walsh President & CEO, UGI Kirk Oliver Chief Financial Officer, UGI Jerry Sheridan President & CEO, AmeriGas
Slide 2: About This Presentation
2 This presentation contains certain forward-looking statements that management believes to be 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. You should re
Slide 3: Second Quarter Recap
3 Second Quarter Recap John Walsh President & CEO, UGI
Slide 4: Second Quarter Earnings Recap
4 Second Quarter Earnings Recap 1 Q2-16 GAAP was EPS $1.33; Q2-15 GAAP EPS was $1.40. See appendix for Adjusted EPS reconciliation. $1.24 $1.26 $0.00 $0.50 $1.00 $1.50 Q2-16 Q2-15 Adjusted EPS1 Weather vs. Prior Year (24)% (25)% (13)% (7)% (30.0)% (15.0)% 0.0% UGI Utilities Midstream & Marketing Ame
Slide 5: Key Accomplishments
5 Key Accomplishments • UGI Gas filed a $58 million rate case, its first in 21 years; Expected to be finalized in Q1-17 • Strong demand for peaking service driven by increased peak requirements, customer growth, and migration from interruptible to firm service • Integration of Finagaz has gone excee
Slide 6: Financial Review
6 Financial Review Kirk Oliver Chief Financial Officer, UGI
Slide 7: Q2 Adjusted Earnings
7 Q2 Adjusted Earnings 1 Not associated with current period 2 Related to the Finagaz acquisition Three Months Ended March 31, 2016 2015 Net income attributable to UGI Corporation $233.2 $246.5 Net after-tax (gains) on commodity derivative instruments1 (22.4) (30.8) Net after-tax acquisition and inte
Slide 8: Weather – Q2
8 1Percent change in Heating Degree Days. (23.6)% Warmer (13.3)% Warmer Weather – Q2 (6.7)% Warmer VERSUS NORMAL1 VERSUS PRIOR YEAR1 (25.1)% Warmer
Slide 9: Financial Results – AmeriGas
9 FY 2015 FY 2016 Q2 Operating Income $ 296.9 Retail Volume $ (75.1) Retail Unit Margin $ 11.2 Wholesale and Other Total Margin $ (1.9) Operating and Administrative Expenses $ 18.9 Depreciation and Amortization $ 0.7 Other $ (0.3) Q2 Operating Income $ 250.4 Financial Results – AmeriGas 13.3% warmer
Slide 10: Financial Results – UGI International
10 Financial Results – UGI International 6.7% warmer than prior year • Higher total margin, operating expenses, and depreciation due to Finagaz acquisition as well as smaller acquisitions • LPG costs 32% lower than prior year contributed to higher unit margins • Finagaz synergies on track to meet or
Slide 11: Financial Results – UGI Utilities
11 Financial Results – UGI Utilities • 24% warmer weather than prior year drove 23% lower core market throughput and lower margin • Lower margin partially offset by lower operating and administrative expenses 23.6% warmer than prior year vs. Normal Gas Utility Weather (millions) • Rate case filed in
Slide 12: Financial Results – Midstream & Marketing
12 Financial Results – Midstream & Marketing • Weather that was 25% warmer than the prior year led to lower capacity management, retail gas, power marketing, and electric generation margin • Lower volatility in capacity values drove decrease in capacity management margins • Asset and fee-based busin
Slide 13: Comparison of YTD FY16 vs. YTD FY12
13 Comparison of YTD FY16 vs. YTD FY12 $225.7 $15.4 $5.2 $38.8 $38.7 $0M $50M $100M $150M $200M $250M $300M $350M YTD 2012 AmeriGas Gas Utility UGI International Energy Services YTD 2016 $328.62 1 See appendix for reconciliation of adjusted net income to GAAP net income. 2 Includes $4.7 million in C
Slide 14: Liquidity and Guidance
14 Liquidity and Guidance • $466 million of cash on hand • Adequate bank capacity • $400 million private placement Delayed draw feature Repay existing maturities Fund capital expenditures Liquidity • Updating guidance range due to warm weather • Expect adjusted earnings per share of $1.95 to $
Slide 15: Second Quarter Recap
15 Second Quarter Recap Jerry Sheridan President & CEO, AmeriGas
Slide 16: Second Quarter Recap
16 Second Quarter Recap March quarter was the second warmest on record which led to lower volume Unit margins $0.03 higher than the prior year Operating expenses $19mm, or 7%, lower than the prior year Adjusted EBITDA(1) 1. See appendix for reconciliation of Adjusted EBITDA to Net Income. $295
Slide 17: Comparison of YTD FY16 vs. YTD FY12 Adjusted EBITDA
17 $414 $473 $200M $300M $400M $500M YTD 2012 YTD 2016 (15.0)% (15.2)% (25.0)% (15.0)% (5.0)% 5.0% 15.0% 25.0% YTD 2012 YTD 2016 warmer than normal colder than normal 14% Higher Adjusted EBITDA Comparison of YTD FY16 vs. YTD FY12 Comparable Weather
Slide 18: Growth Initiatives and Distribution
18 Growth Initiatives and Distribution Cylinder Exchange • Weather-related volume decline due to lower patio heater utilization rates • Added 2,500 locations in the quarter bringing the total to approximately 51,000 National Accounts • Volume down ~8.4% in the quarter on warm weather • Have added 31
Slide 19: Conclusion
19 Conclusion John Walsh President & CEO, UGI
Slide 20: Strategic Investments Update
20 Strategic Investments Update Midstream & Marketing • Received FERC certificate for the Sunbury pipeline on April 29, 2016 and preparing for the field execution phase • PennEast received the Notice of Schedule from the FERC that set December 16, 2016 for the completion of its environmental review
Slide 21: Conclusion
21 Conclusion • Revised guidance is related to warm weather • Solid results year-to-date demonstrate benefits of our balanced portfolio • Continue driving growth through organic investments in our Midstream and Utility businesses, and acquisitions in the U.S. and Europe • Underlying weather-adjusted
Slide 22: Appendix
CORPORATION
Slide 23: Non-GAAP financial measures
23 Management uses "adjusted net income attributable to UGI" and "adjusted diluted earnings per share," both of which are non-GAAP financial measures, when evaluating UGI's overall performance. For the periods presented, adjusted net income attributable to UGI is net income attributable to UGI Cor
Slide 24: UGI Adjusted Net Income and EPS
24 UGI Adjusted Net Income and EPS Three Months Ended Six Months Ended Twelve Months Ended March 31 March 31 March 31 2016 2015 2016 2015 Adjusted net income attributable to UGI Corporation: Net income attributable to UGI Corporation 233.2$ 246.5$ 347.8$ 280.6$ Net after-tax (gains) losses on commod
Slide 25: UGI Q2 YTD FY12 Adjusted Net Income
25 UGI Q2 YTD FY12 Adjusted Net Income Six Months Ended March 31, 2012 Adjusted net income attributable to UGI Corporation: GAAP Net Income Attributable to UGI Corporation 211.2$ Net after-tax (gains) losses on commodity derivative instruments not associated with current period transactions 9.9 Net
Slide 26: AmeriGas non-GAAP financial measures
26 The Partnership’s management uses certain non-GAAP financial measures, including adjusted total margin, EBITDA, adjusted EBITDA and adjusted net income attributable to AmeriGas Partners, L.P., when evaluating the Partnership’s overall performance. These financial measures are not in accordance
Slide 27: AmeriGas Adjusted EBITDA
27 AmeriGas Adjusted EBITDA 2016 2015 2016 2015 Adjusted total margin: Total revenues 827,487$ 1,100,317$ 1,471,585$ 1,989,109$ Cost of sales - propane (241,621) (411,745) (469,543) (990,286) Cost of sales - other (17,161) (18,822) (38,028) (40,862) Total margin 568,705 669,750 964,014 957,961 (Subt
Slide 28: AmeriGas 2012 Pro Forma Adjusted EBITDA
28 AmeriGas 2012 Pro Forma Adjusted EBITDA Six Months Ended March 31, 2012 Pro Forma Net Income attributable to AmeriGas Partners, L.P. 196,362 Pro Forma Tax Expense 3,231 Pro forma Interest Expense 94,304 Pro Forma Amortization expense 20,991 Pro Forma depreciation Expense 73,895 Pro Forma EBITDA 3
Slide 29: Investor Relations
29 Investor Relations: Will Ruthrauff 610-456-6571 ruthrauffw@ugicorp.com