Slide 1: 2014 Q1 Earnings Conference Call
February 4, 2014 2014 Q1 Earnings Conference Call February 4, 2014
Slide 2: About This Presentation
February 4, 2014 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 contr
Slide 3: Presenters
February 4, 2014 John Walsh President & CEO, UGI Kirk Oliver Chief Financial Officer, UGI Jerry Sheridan President & CEO, AmeriGas
Slide 4: 2014 Q1 Results: GAAP EPS
February 4, 2014 4 2014 Q1 Results $0.90 $1.05 $0.80 $0.85 $0.90 $0.95 $1.00 $1.05 $1.10 2 0 1 3 2 0 1 4 GAAP EPS 17% increase in EPS, fully diluted
Slide 5: 2014 Q1 Results: Adjusted EPS
February 4, 2014 5 2014 Q1 Results $0.88 $1.06 $0.70 $0.75 $0.80 $0.85 $0.90 $0.95 $1.00 $1.05 $1.10 2 0 1 3 2 0 1 4 Adjusted EPS* * See reconciliation in appendix 21% increase in Adjusted EPS
Slide 6: Operating Performance & Strategic Milestones
February 4, 2014 6 Operating Performance & Strategic Milestones Strategic Milestones • Auburn II pipeline placed into service • Gas Utility new customer additions exceeded the record levels set in Q1 of FY13 • Successful integration of the BP Poland acquisition Unprecedented demand for natural gas •
Slide 7: 2014 Q1 Results: Adjusted EPS
February 4, 2014 7 2014 Q1 Results $0.88 $1.06 $0.70 $0.75 $0.80 $0.85 $0.90 $0.95 $1.00 $1.05 $1.10 2 0 1 3 2 0 1 4 Adjusted EPS* * See reconciliation in appendix 21% increase in Adjusted EPS
Slide 8: Weather vs Normal
February 4, 2014 8 Weather vs Normal 3.8% -9.0% -7.2% -7.7% -12.9% -3.2% 3.0% -3.6% -20% -10% 0% 10% 20% 2014 Q1 2013 Q1 AmeriGas Antargaz Flaga Utility (W A R M E R ) COL D E R (W A R M E R )
Slide 9: AmeriGas
February 4, 2014 9 AmeriGas VOLUME Colder weather ACE and National Accounts MARGIN Slightly higher unit margins OPEX No transition expenses versus prior-year period Synergies Total Margin 179.7 24.7 18.4 (2.6) 4.1 (2.2) $100 $120 $140 $160 $180 $200 2 0 1 3 Q 1 V o lu m e U n it Mar gi n s
Slide 10: UGI International
February 4, 2014 10 UGI International VOLUME BP Poland acquisition Warmer weather MARGIN BP Poland acquisition OPEX Flaga (BP Poland) and Antargaz (repair and maintenance expense) 12.2 2.1 (13.2) (2.0) 0.1 $10 $20 $30 $40 $50 $60 $70 2 0 1 3 Q 1 LPG V o lu m e U n it Mar gi n s O p ex & O th
Slide 11: Gas Utility
February 4, 2014 11 Gas Utility MARGIN Colder weather Conversions from heating oil OPEX Lower pension and benefits expense INTEREST Lower average interest rates Total Margin 60.2 73.7 8.0 3.4 1.7 (0.8) 1.2 $20 $30 $40 $50 $60 $70 $80 2 0 1 3 Q 1 C o re M ar ket M ar gi n Ot h er Mar gi n O p
Slide 12: Midstream & Marketing
February 4, 2014 12 Midstream & Marketing MARGIN Higher peaking, capacity management, and gas marketing margin Higher electric generation margin Lower power marketing margins 24.9 (2.9) 4.8 10.3 (0.8) (1.1) 0.0 $0 $5 $10 $15 $20 $25 $30 $35 $40 2 0 1 3 Q 1 M ar ketin g Ge n erati o n M id st r
Slide 13: Liquidity and Guidance
February 4, 2014 13 Liquidity and Guidance • Share repurchase program announced last week • FY14 Adjusted EPS guidance remains $2.60-$2.70 Total AmeriGas UGI Intl Utilities Midstream Corporate & Other Cash on Hand $418.1 $30.3 $173.3 $13.0 $9.0 $192.6 Revolving Credit Facilities $525.0 $134.7 $300.0
Slide 14: Jerry Sheridan, CEO of AmeriGas
February 4, 2014 Jerry Sheridan CEO of AmeriGas
Slide 15: Q1 Adjusted EBITDA
February 4, 2014 15 Q1 Adjusted EBITDA $193.3 $230.2 $170 $180 $190 $200 $210 $220 $230 $240 2 0 1 3 Q 1 2 0 1 4 Q 1 Adjusted EBITDA*, $ Millions * See appendix for Adjusted EBITDA reconciliation
Slide 16: Operational Update: Operations
February 4, 2014 16 Operational Update Operations • Volume increased 7% versus last year’s first quarter on weather that was 14% colder than last year • Volume in December was up 19% from last year on 22% colder weather • Operating expenses were $5.9 million below last year; Excluding transition exp
Slide 17: Operational Update: Growth Initiatives and Outlook
February 4, 2014 17 Operational Update Growth Initiatives • AmeriGas Cylinder Exchange (ACE): Volume growth of 9.8% from the prior-year quarter, 2,900 new outlets added • National Accounts: Volume increased 6 million gallons from the prior- year quarter and benefitted from both new accounts and the
Slide 18: John Walsh, President & CEO
February 4, 2014 John Walsh President & CEO
Slide 19: Operational Update: AmeriGas, UGI International, Gas Utility
February 4, 2014 19 Operational Update AmeriGas • Adjusted EBITDA up 19% on volume growth, unit margin management, and expense control • Strong performance at both ACE and National Accounts as well UGI International • Warmer weather than expected, offset by benefits of BP Poland acquisition Gas Util
Slide 20: Operational Update: Midstream & Marketing
February 4, 2014 20 Operational Update Midstream & Marketing • Strong performance from LNG business (both peaking and transport) as well as our midstream business • Auburn II placed into commercial service Recent Developments • Meeting service challenges is critically important during extreme weathe
Slide 21: Q&A
February 4, 2014 Q&A
Slide 22: Appendix
February 4, 2014 Appendix
Slide 23: UGI Supplemental Information: Footnotes
February 4, 2014 23 UGI Supplemental Information: Footnotes Management uses "adjusted net income attributable to UGI" and "adjusted diluted earnings per share," both of which are non-GAAP financial measures, when evaluating UGI's overall performance. Adjusted net income attributable to UGI is net
Slide 24: Adjusted EPS to GAAP EPS Reconciliation
February 4, 2014 24 Adjusted EPS to GAAP EPS Reconciliation Three Months Ended Twelve Months Ended December 31, December 31, 2013 2012 2013 2012 Adjusted diluted earnings per share: UGI Corporation earnings per share - diluted 1.05$ 0.90$ 2.56$ 2.09$ Adjust: Net unrealized (gains) losses on Midstrea
Slide 25: AmeriGas Supplemental Information: Footnotes
February 4, 2014 25 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 measu
Slide 26: AmeriGas Partners EBITDA Reconciliation
February 4, 2014 26 AmeriGas Partners EBITDA Reconciliation 2013 2012 Net income attributable to AmeriGas Partners, L.P. 134,898$ 96,665$ Income tax expense 1,431 627 Interest xpense 41,590 41,196 Depreciation 41,503 38,323 Amortization 10,819 11,028 EBITDA 230,241$ 187,839$ Heritage Propane acquisi
Slide 27: Investor Relations
February 4, 2014 Investor Relations: 610-337-1000 Simon Bowman (x3645) bowmans@ugicorp.com