Slide 1: Third Quarter 2013 Earnings Conference Call
July 31, 2013 Third Quarter 2013 Earnings Conference Call July 31, 2013
Slide 2: About This Presentation
July 31, 2013 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.
Slide 3: Presenters
July 31, 2013 John Walsh President & CEO, UGI Kirk Oliver Chief Financial Officer, UGI Jerry Sheridan President & CEO, AmeriGas
Slide 4: Third Quarter EPS
July 31, 2013 4 Third Quarter EPS Almost $15 MM of net income this quarter versus a $6 MM loss in Q3 of FY12 ($0.06) $0.13 ($0.10) ($0.05) $0.00 $0.05 $0.10 $0.15 2 0 1 2 2 0 1 3 GAAP EPS
Slide 5: Weather vs Normal
July 31, 2013 5 Weather vs Normal 0.5% -23.8% 19.7% -3.5% -7.2% -20.4% -7.1% -19.0% -25% -15% -5% 5% 15% 25% FY2013 FY2012 AmeriGas Antargaz Flaga Utility (W A R M E R ) COL D E R (W A R M E R )
Slide 6: AmeriGas
July 31, 2013 6 AmeriGas VOLUME Colder weather ACE and National Accounts MARGIN Higher unit margins OPEX Synergies Lower self-insured liability/casualty expenses Lower transition expenses than prior-year period Total Margin (48.4) 6.6 19.8 20.5 (2.2) 19.9 (3.0) -$60 -$40 -$20 $0 $20 2 0
Slide 7: UGI International
July 31, 2013 7 UGI International VOLUME Colder weather MARGIN Higher unit margins at Antargaz OPEX Antargaz operating expenses (compensation, benefits, and delivery expense) (6.4) 7.4 22.2 (7.9) (1.9) 0.2 -$10 -$5 $0 $5 $10 $15 $20 $25 2 0 1 2 Pr o p an e V o lu m e U n it Mar gi n s O p ex &
Slide 8: Gas Utility
July 31, 2013 8 Gas Utility MARGIN Colder weather than prior-year period Conversions from heating oil OPEX Higher uncollectable accounts, pension, and distribution system expenses Total Margin 12.6 6.9 1.3 2.1 (9.0) (0.8) 0.7 $0 $4 $8 $12 $16 $20 2 0 1 2 C o re M ar ket M ar gi n Ot h er Mar g
Slide 9: Midstream & Marketing
July 31, 2013 9 Midstream & Marketing MARGIN Higher electric generation total margin Lower power marketing margins Higher peaking, capacity management, and storage margin Opex Higher operating and depreciation expenses associated with midstream assets and planned outages at Conemaugh 3.7 (2.
Slide 10: Liquidity and Guidance
July 31, 2013 10 Liquidity and Guidance Total AmeriGas Int'l Propane Utilities Midstream Corporate / Other Cash on Hand $401.8 $16.5 $186.0 $82.0 $9.3 $108.0 Revolving Credit Facilities $525.0 $127.4 $300.0 $240.0 NA Accounts Receivable Facility NA NA NA 41.2 NA Drawn on Facilities 80.0 4.4 0.0 45.5
Slide 11: Jerry Sheridan, CEO of AmeriGas
July 31, 2013 Jerry Sheridan CEO of AmeriGas
Slide 12: Q3 Adjusted EBITDA
July 31, 2013 12 Q3 Adjusted EBITDA $16.8 $69.0 $0 $20 $40 $60 $80 2 0 1 2 2 0 1 3 Adjusted EBITDA*, $ Millions A four-fold increase * See appendix for Adjusted EBITDA reconciliation
Slide 13: Operational Update
July 31, 2013 13 Operational Update Operations • Volume increase up over 10% versus last year’s quarter • Significant decrease in operating expenses: • $18.5 MM decrease from Q3 of fiscal 2012 ($13.3 MM decrease excluding the impact of $5.2 MM in lower transition expenses) Growth Initiatives • Ameri
Slide 14: Guidance & Heritage Update
July 31, 2013 14 Guidance & Heritage Update • FY13 Guidance remains $620MM - $635MM • Completed final stages of Heritage integration: Consolidation of over 200 stores • Merged operating partnerships into one legal entity, streamlining operations • ETP sold 7.5MM APU units on July 12
Slide 15: John Walsh, President & CEO
July 31, 2013 John Walsh President & CEO
Slide 16: Operational Update: AmeriGas and UGI International
July 31, 2013 16 Operational Update AmeriGas and UGI International • Acquisition integration essentially complete; US and European management teams can now focus on other opportunities provided by extended distribution network and increased customer densities • AmeriGas: Reduced operating expenses v
Slide 17: Operational Update: Gas Utility and Midstream & Marketing
July 31, 2013 17 Operational Update Gas Utility • Infrastructure replacement on schedule; infrastructure capex for fiscal 2013 expected to be approximately 25% above fiscal 2012 level • Strong demand for natural gas: Expect to add almost 17,000 new customers in fiscal 2013 Midstream & Marketing • Au
Slide 18: Q&A
July 31, 2013 Q&A
Slide 19: Appendix
July 31, 2013 Appendix
Slide 20: AmeriGas Supplemental Information: Footnotes
July 31, 2013 20 AmeriGas Supplemental Information: Footnotes The enclosed supplemental information contains a reconciliation of earnings before interest expense, income taxes, depreciation and amortization ("EBITDA") and Adjusted EBITDA to Net Income. EBITDA and Adjusted EBITDA are not measures
Slide 21: AmeriGas Propane EBITDA Reconciliation
July 31, 2013 21 AmeriGas Propane EBITDA Reconciliation 2013 2012 2013 2012 2013 2012 Net (loss) income attributable to AmeriGas Partners, L.P. (34,595)$ (89,382)$ 275,278$ 87,028$ 199,275$ 41,833$ Income tax (benefit) expense (59) (208) 516 1,006 1,441 909 Intere t expense 41,247 41,853 124,219 103
Slide 22: Investor Relations
July 31, 2013 Investor Relations: 610-337-1000 Simon Bowman (x3645) bowmans@ugicorp.com