Slide 1: Fiscal 2016 First Quarter Results
1 Fiscal 2016 First 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: First Quarter Recap
3 First Quarter Recap John Walsh President & CEO, UGI
Slide 4: First Quarter Earnings Recap
4 First Quarter Earnings Recap Results impacted by significantly warmer weather than prior year primarily offset by: • Benefits of Midstream & Marketing investments and increased peaking activity • Accretion from Finagaz acquisition 1 Q1-16 GAAP was EPS $0.65, Q1-15 GAAP EPS was $0.19. See appendix
Slide 5: Market Recap
5 Market Recap • Increased our Peaking volumes with additional Temple LNG capacity • Completed foundation work of Manning LNG facility • Added 5,400 new Gas Utility customers in the quarter • Continued focus on unit margins, working capital, and operating expense control in LPG businesses • UGI Gas
Slide 6: Financial Review
6 Financial Review Kirk Oliver Chief Financial Officer, UGI
Slide 7: Q1 Adjusted Earnings
7 Q1 Adjusted Earnings Three Months Ended Twelve Months Ended December 31, December 31, 2015 2014 Adjusted net income attributable to UGI Corporation: GAAP Net income attributable to UGI Corporation 114.6$ 34.1$ Net after-tax (gains) losses on commodity derivative instruments not associated with cur
Slide 8: Weather – Q1
8 1Percent change in Heating Degree Days. (16.8)% Warmer (22.9)% Warmer Weather – Q1 (2.6)% Warmer VERSUS NORMAL1 VERSUS PRIOR YEAR1
Slide 9: Financial Results – AmeriGas
9 Financial Results – AmeriGas 16.8% warmer than prior year Weather Total Margin vs. Normal • Weather that was almost 17% warmer than the prior year led to lower volume • Higher unit margins partially offset lower volume • Focus on cost controls led to a $16mm decrease in operating and administrativ
Slide 10: Financial Results – UGI International
10 Financial Results – UGI International UGI France Weather Flaga Weather (2.6)% warmer than prior year 3.6% colder than prior year vs. Normal vs. Normal • Higher total margin, operating expenses, and depreciation due to Finagaz acquisition • Falling LPG costs contributed to higher unit margins • In
Slide 11: Financial Results – UGI Utilities
11 Financial Results – UGI Utilities • Unusually warm temperatures reduced core market throughput • Customer additions partially offset weather impact • Increased distribution system capex led to higher depreciation • Other includes a non-recurring charge related to the settlement of litigation • Fi
Slide 12: Financial Results – Midstream & Marketing
12 Financial Results – Midstream & Marketing • Lower capacity management total margin offset by higher gathering total margin as Auburn system came online, and higher peaking activity • Lower operating expenses due to prior year planned outages at Hunlock and Conemaugh • Higher depreciation associat
Slide 13: Comparison of Q1 FY16 vs. Q1 FY12
13 $0 $20 $40 $60 $80 $100 $120 $140 Comparison of Q1 FY16 vs. Q1 FY12 • Record warm weather has significantly impacted UGI’s businesses. • Growth from acquisitions and midstream investments more than offset weather impact. 1 See appendix for reconciliation of Adjusted Net Income numbers to GAAP inc
Slide 14: Liquidity
14 Liquidity Total AmeriGas UGI International Utilities Midstream & Marketing Corporate & Other Cash on Hand $403.0 $17.3 $305.6 $15.6 $20.3 $44.2 Revolving Credit Facilities $525.0 120.9 $300.0 $240.0 NA Accounts Receivable Facility NA NA NA 55.4 NA Drawn on Facilities 182.0 0.0 217.7 26.0 NA Lette
Slide 15: First Quarter Recap – AmeriGas
15 First Quarter Recap Jerry Sheridan President & CEO, AmeriGas
Slide 16: First Quarter Recap
16 First Quarter Recap Adjusted EBITDA down 6% with weather that was 20% warmer than normal and 24% warmer than normal in December Unit Margins up $0.10 Expenses $16mm lower than prior year $177.7 $188.5 MM 50MM 100MM 150MM 200MM Q1-16 Q1-15 Adjusted EBITDA(1) 1. See appendix for reconciliatio
Slide 17: Growth Initiatives
17 Growth Initiatives • Cylinder Exchange • Volume slightly below prior year • Secured new customers that will add ~2,500 new locations during the year • National Accounts • Volume approximately flat despite warmer weather • Added 21 new customer contracts • M&A • Closed 3 acquisitions that are expe
Slide 18: We Are a Unique MLP
18 We Are a Unique MLP Commodity Price Exposure No Need to Access Capital Markets to Fund Growth No Credit Fears No Customer Concentration Risk No Capital Intensity Modest Self-funded Weather Risk Yes
Slide 19: Conclusion
19 Conclusion John Walsh President & CEO, UGI
Slide 20: Conclusion
20 Conclusion • PennEast and Sunbury pipeline projects continue to progress through FERC approval process • Outstanding progress on Finagaz integration in first 8 months • Rate case filed on January 19, 2016 with anticipated completion in Fall 2016 We are a distributor and marketer of energy – can
Slide 21: UGI Corporation
CORPORATION
Slide 22: UGI non-GAAP measures explanation
22 Management uses "adjusted net income attributable to UGI" and "adjusted diluted earnings per share," both of which are non-GAAP financial measures, when evaluating UGI's overall performance. For the periods presented, adjusted net income attributable to UGI is net income attributable to UGI Cor
Slide 23: UGI Adjusted Net Income and EPS
23 UGI Adjusted Net Income and EPS Three Months Ended Twelve Months Ended December 31, December 31, 2015 2014 2015 2014 Adjusted net income attributable to UGI Corporation: Net income attributable to UGI Corporation 114.6$ 34.1$ 361.5$ 249.3$ Net after-tax (gains) losses on commodity derivative inst
Slide 24: UGI Adjusted Segment Results
24 UGI Adjusted Segment Results GAAP Mark-to- Finagaz Adjusted Net Income Market Transition Exp Net Income Net income attributable to UGI Corporation: AmeriGas Propane 18.6$ 18.6$ UGI International 46.4 1.4 47.8 UGI Utilities 23.4 23.4 Midstream & Marketing 24.6 24.6 Corporate & Other 1.6 (3.6) (2.0
Slide 25: UGI Q1 FY12 Adjusted Net Income
25 UGI Q1 FY12 Adjusted Net Income Three Months Ended December 31 2011 Adjusted net income attributable to UGI Corporation: GAAP Net income attributable to UGI Corporation 74.9$ Net after-tax (gains) losses on commodity derivative instruments not associated with current period transactions 11.3 Net
Slide 26: UGI Q1 FY12 Adjusted Segment Results
26 UGI Q1 FY12 Adjusted Segment Results Mark-to- Heritage Adjusted GAAP 1 Market Transition Exp Net Income Net income attributable to UGI Corporation: AmeriGas Propane 11.3$ 1.0 12.3$ UGI International 31.0 31.0 UGI Utilities 32.6 32.6 Midstream & Marketing 2.6 11.3 13.9 Corporate & Other (2.6) (2.6
Slide 27: UGI Q1 FY16 & Q1 FY12 Adjusted Net Income
27 UGI Q1 FY16 & Q1 FY12 Adjusted Net Income 1 See prior slides for reconciliation of Adjusted Net Income to GAAP Net Income for Q1 FY16 and Q1 FY12. Three Months Ended December 31, 2015 2011 Net income attributable to UGI Corporation: AmeriGas Propane 18.6$ 12.3$ UGI International 47.8 31.0 UGI Uti
Slide 28: AmeriGas non-GAAP measures explanation
28 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 29: AmeriGas Adjusted EBITDA
29 AmeriGas Adjusted EBITDA 2015 2014 EBITDA and Adjusted EBITDA: Net income (loss) attributable to AmeriGas Partners, L.P. 80,973$ (39,571)$ Income tax expense 910 870 Interest expense 41,025 41,034 Depreciation 38,606 38,682 Amortization 10,600 10,686 EBITDA 172,114 51,701 Add net losses (subtract
Slide 30: Investor Relations
30 Investor Relations: Will Ruthrauff 610-456-6571 ruthrauffw@ugicorp.com