Slide 1: Fiscal 2017 Second Quarter Results
Fiscal 2017 Second Quarter Results John Walsh President & CEO, UGI Kirk Oliver Chief Financial Officer, UGI Jerry Sheridan President & CEO, AmeriGas 1
Slide 2: About This Presentation
About This Presentation 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
Slide 3: Second Quarter Recap
Second Quarter Recap John Walsh President & CEO, UGI 3
Slide 4: Q2 Earnings Recap
Q2 Earnings Recap • Solid results despite a warmer than normal heating season in all four of our businesses Adjusted EPS1 • Results reflect our investments in projects that are less dependent on weather, and focus on operational efficiency • Expecting full year adjusted EPS to be at the lower end, o
Slide 5: Q2 Market Recap
Q2 Market Recap • Completed construction of $60 million Manning LNG liquefaction facility • Gas Utility added 3,400 new residential heating and commercial customers, year-to-date total of 8,000 • Filed a $21.7 million rate case for our UGI Penn Natural Gas (PNG) utility • Increased volumes for ACE a
Slide 6: Second Quarter Financial Review
Second Quarter Financial Review Kirk Oliver Chief Financial Officer, UGI 6
Slide 7: Q2 Adjusted Earnings
Q2 Adjusted Earnings ($ millions) FY16-Q2 FY17-Q2 Net income attributable to UGI Corporation (GAAP) $233.2 $ 219.9 Net losses (gains) on commodity derivative instruments1 (22.4) 3.1 Unrealized losses on foreign currency derivative instruments1 - 0.8 Loss on extinguishment of debt1 - 3.6 Integration
Slide 8: Adjusted EPS
Q2 Results Recap Solid results across all business units despite warmer than normal temperatures $1.50 $1.311 $0.06 $0.02 $0.01 $0.00 $1.31 $1.241 $1.24 $(0.02) UGI Utilities $0.37 $0.36 Adjusted EPS 2.9% 1.3% 5.0% 3.3% warmer colder warmer warmer $0.26 Midstream & $0.28 Marketing $0.41 UGI $0.47 In
Slide 9: Financial Results – AmeriGas
Financial Results – AmeriGas Weather versus normal ($ millions) FY16-Q2 FY17-Q2 colder Adjusted EBITDA $295.4 Retail Volume (20.5) Total margin Wholesale and Other Total Margin (1.0) Operating and Administrative Expenses (1.5) FY16-Q2 FY17-Q2 Other Income and Expense, net (1.2) Adjusted EBITDA $271.
Slide 10: Financial Results – UGI International
Financial Results – UGI International ($ millions) FY16-Q2 FY17-Q2 Weather versus Income Before Taxes $105.0 normal Total Margin (0.1) colder Operating and Administrative Expenses 6.8 Depreciation and Amortization 0.7 Interest Expense 1.7 Other Income and Expense, net 2.1 FY16-Q2 FY17-Q2 Income Befo
Slide 11: Financial Results – Midstream & Marketing
Financial Results – Midstream & Marketing ($ millions) FY16-Q2 FY17-Q2 Weather versus normal Income Before Taxes $ 77.3 colder Total Margin 4.8 Operating and Administrative Expenses (0.4) Depreciation and Amortization (1.1) Interest Expense (0.2) FY16-Q2 FY17-Q2 Other Income and Expenses, net 3.4 In
Slide 12: Financial Results – Utilities
Financial Results – Utilities Gas Utility weather versus ($ millions) FY16-Q2 FY17-Q2 normal Income Before Taxes $105.2 colder Total Margin 11.0 Operating and Administrative Expenses (8.7) Depreciation and Amortization (0.7) Interest Expense (1.0) FY16-Q2 FY17-Q2 Other Income and Expense, net 0.3 -9
Slide 13: 2012 – 2017 Comparison
2012 – 2017 Comparison Adjusted EPS $2.50 $ 0.14 $ 0.05 $ 2.22 $ 0.27 $2.00 $ 0.37 $1.50 $ 1.32 $ 0.07 $1.00 $0.50 $- UGI Midstream & YTD 2012 AmeriGas UGI Utilities Corp & other YTD 2017 International Marketing UGI Corporation | Fiscal 2017 Second Quarter Results Adjusted EPS is a non-GAAP measure.
Slide 14: AmeriGas
AmeriGas Second Quarter Recap Jerry Sheridan President & CEO, AmeriGas
Slide 15: Q2 Earnings Recap
Q2 Earnings Recap Adjusted EBITDA1 • The quarter ended 13% warmer than normal $295.4 and 3% warmer than last year $271.2 • 2nd warmest Q2 on record • Retail volume sold in the quarter was 363 million gallons, 6% below last year • Unit margins up 2% despite increased propane costs • Operating expense
Slide 16: Growth Initiatives
Growth Initiatives Cylinder Exchange • Modest increase in volume despite the warmer weather • Over 1,250 new locations year-to-date National Accounts • Volume up 5% primarily due to new accounts Acquisitions • Completed two small scale acquisitions and anticipate closing on 3 additional deals in the
Slide 17: Maintaining A Strong Balance Sheet
Maintaining A Strong Balance Sheet Refinancing • Issued $525 million of 5.75% notes due May 2027 • Tendered for $378 million of 7.00% May 2022 notes • Redeeming remaining $102.5 million of 7.00% May 2022 notes • Completes refinancing of all long-term debt • No significant debt maturities until 2024
Slide 18: Conclusion and Q&A
Conclusion and Q&A John Walsh President & CEO, UGI 18
Slide 19: Clear Path to Growth
Clear Path to Growth MIDSTREAM & MARKETING UGI UTILITIES • Sunbury pipeline providing service to UGI and will • Company awaiting final order from PA PUC begin serving power generation facility in August authorizing an increase to the DSIC cap from 5.0% • Receive Final Environmental Impact Statement
Slide 20: Appendix
APPENDIX 20
Slide 21: UGI Supplemental Footnotes
UGI Supplemental Footnotes • 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
Slide 22: UGI Adjusted Net Income and EPS
UGI Adjusted Net Income and EPS AmeriGas UGI Midstream & Corporate & Three Months Ended March 31, 2017 Total UGI Utilities Propane International Marketing Other Adjusted net income attributable to UGI Corporation: Net income (loss) attributable to UGI Corporation $ 219.9 $ 32.0 $ 79.3 $ 50.2 $ 65.1
Slide 23: UGI Adjusted Net Income and EPS
UGI Adjusted Net Income and EPS AmeriGas UGI Midstream & Corporate & Six Months Ended March 31, 2017 Total UGI Utilities Propane International Marketing Other Adjusted net income attributable to UGI Corporation: Net income attributable to UGI Corporation $ 450.6 $ 48.6 $ 167.6 $ 80.1 $ 109.4 $ 44.9
Slide 24: AmeriGas Supplemental Footnotes
AmeriGas Supplemental 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 of performance or financial c
Slide 25: AmeriGas EBITDA and Adjusted EBITDA
AmeriGas EBITDA and Adjusted EBITDA Three Months Ended March 31, EBITDA and Adjusted EBITDA: FY16-Q2 FY17-Q2 Net income attributable to AmeriGas Partners, L.P. $ 245.9 $ 135.1 Income tax expense 0.3 0.6 Interest expense 40.8 40.0 Depreciation 36.5 34.4 Amortization 10.9 10.6 EBITDA 334.4 220.7 Add n
Slide 26: Investor Relations
Investor Relations: Will Ruthrauff 610-456-6571 ruthrauffw@ugicorp.com 26