Slide 1: 2015 Q2 Earnings Conference Call
May 5, 2015 2015 Q2 Earnings Conference Call May 5, 2015
Slide 2: About This Presentation
May 5, 2015 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. Y
Slide 3: Presenters
May 5, 2015 John Walsh President & CEO, UGI Kirk Oliver Chief Financial Officer, UGI Jerry Sheridan President & CEO, AmeriGas
Slide 4: 2015 Q2 Results
May 5, 2015 4 $1.27 $1.23 $0.00 $0.50 $1.00 $1.50 Q2-14 Q2-15 • Q2-15 GAAP EPS was $1.40 • Q2-15 Adjusted EPS includes $0.03 of acquisition related expenses Increasing FY 2015 Adjusted EPS Guidance Range: $2.00 – $2.10 * See appendix for Adjusted EPS reconciliation. Adjusted EPS* 2015 Q2 Results
Slide 5: Operating Performance & Strategic Milestones
May 5, 2015 5 Operating Performance & Strategic Milestones Midstream & Marketing • Benefited from strong capacity demand as underlying demand for natural gas continues to outpace new pipeline capacity • This “infrastructure gap” creates significant opportunities for UGI • Our existing asset portfoli
Slide 6: Kirk Oliver, Chief Financial Officer
May 5, 2015 Kirk Oliver Chief Financial Officer
Slide 7: 2015 Q2 Financial Results
May 5, 2015 7 2015 Q2 Financial Results Three Months Ended March 31, (Millions of dollars, except per share amounts) 2015 2014 Adjusted net income attributable to UGI Corporation: Net income attributable to UGI Corporation $ 246.5 $214.4 Net after-tax (gains) losses on commodity derivative instrumen
Slide 8: Weather vs. Normal
May 5, 2015 8 Antargaz Flaga Gas Utility AmeriGas COL D E R (W A R M E R ) * HDD = Percent change in Heating Degree Days versus prior year FY Q2 Weather vs. Normal 0.3% -0.6% -10.9% 22.1% 8.1% -16.5% -18.1% 19.3% 2015 2014 (7.2%) HDD 19.0% HDD 8.8% HDD 2.3% HDD
Slide 9: Q2 Financial Highlights
May 5, 2015 9 Q2 Financial Highlights • Very strong quarter • High peaking and capacity management margins in Midstream & Marketing • Record-high throughput and margins at Utilities • Strong unit margins in the International business • Focus on cost management at AmeriGas
Slide 10: Q2 Basis Differentials
May 5, 2015 10 Q2 Basis Differentials (W A R M E R ) Spot Price Comparison Location – Texas Eastern Zone M-3 $ /mc f Less extreme price volatility in FY15 vs. FY14 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 1/1 1/8 1/15 1/22 1/29 2/5 2/12 2/19 2/26 3/5 3/12 3/19 3/26 FY 2012 FY 2013 FY 2014 FY 2015
Slide 11: AmeriGas
May 5, 2015 11 284.8 296.9 10.7 2.3 24.0 1.1 $0 $50 $100 $150 $200 $250 $300 $350 2014 Q2 Retail Propane Wholesale / Ancillary Sales & Svces Opex & Other D&A 2015 Q2 Operating Income, $ MM Opex includes all operating expenses, net of miscellaneous income. Excludes impact of mark-to- market changes i
Slide 12: UGI International
May 5, 2015 12 UGI International MARGIN Weaker Euro and British Pound Sterling Colder weather than prior year Increased unit margin in local currency OPEX Weaker Euro and British Pound Sterling Expenses related to proposed acquisition of Totalgaz in France * Opex includes all operating exp
Slide 13: Gas Utility
May 5, 2015 13 Gas Utility MARGIN Colder weather Customer Growth OPEX Higher distribution system maintenance Higher employee benefit and information technology expenses Higher depreciation expense * Opex includes all operating expenses, net of miscellaneous income. Total Margin represents
Slide 14: Midstream & Marketing
May 5, 2015 14 120.4 101.4 13.2 10.3 1.0 4.4 0.6 0.5 $0 $25 $50 $75 $100 $125 2014 Q2 Natural Gas Peaking & Capacity Mgmt Retail Power Opex & Other D&A Int. Expense 2015 Q2 Income Before Taxes, $ MM Midstream & Marketing MARGIN Timing of natural gas basis margins associated with fixed- basis custo
Slide 15: Liquidity and Guidance
May 5, 2015 15 Liquidity and Guidance Total AmeriGas UGI International Utilities Midstream Corporate & Other Cash on Hand $445.6 $21.4 $189.4 $16.0 $15.0 $203.7 Revolving Credit Facilities $525.0 $105.2 $300.0 $240.0 NA Accounts Receivable Facility NA NA NA 96.9 NA Drawn on Facilities 55.0 0.0 30.5
Slide 16: Jerry Sheridan, CEO of AmeriGas
May 5, 2015 Jerry Sheridan CEO of AmeriGas
Slide 17: Q2 Adjusted EBITDA
May 5, 2015 17 Q2 Adjusted EBITDA * See appendix for Adjusted EBITDA reconciliation $331 $342 $0 $50 $100 $150 $200 $250 $300 $350 $400 Q2 2014 Q2 2015 Adjusted EBITDA*, $ Millions Record level of Adjusted EBITDA in Q2
Slide 18: Operational Highlights
May 5, 2015 18 • Retail volume decreased 5.7% (27 million gallons) on weather that was 7% warmer than the prior year • Mt. Belvieu cost was 30% lower than Q1 and 60% lower than the prior year period • Sold off remaining higher cost inventory and reduced average selling price by approximately 20% whi
Slide 19: Growth Initiatives
May 5, 2015 19 Growth Initiatives • The AmeriGas Propane Exchange program’s volume increased 3% in the quarter • National Accounts program increased 14% in the quarter • Pipeline of acquisition opportunities remains strong; completed one small scale acquisition in the quarter • Stability of lower pr
Slide 20: John Walsh, President & CEO
May 5, 2015 John Walsh President & CEO
Slide 21: Operational Highlights
May 5, 2015 21 Operational Highlights PennEast • ~$1bn project expected to deliver one bcf of gas per day • Currently progressing through the FERC pre-approval process • Expected to be on-stream in late calendar year 2017 Announced Two Marcellus Pipeline Projects • Midstream & Marketing segment anno
Slide 22: In Conclusion
May 5, 2015 22 In Conclusion • This quarter demonstrated the strength of our earnings capacity across our balanced portfolio • Made significant progress on both our capital projects and acquisitions • Weather, increased volatility, and focus on operations drove this quarter’s results • The “infrastr
Slide 23: Q&A
May 5, 2015 Q&A
Slide 24: Appendix
May 5, 2015 Appendix
Slide 25: UGI Supplemental Information: Footnotes
May 5, 2015 25 UGI Supplemental Information: Footnotes Management uses "adjusted net income attributable to UGI" and "adjusted diluted earnings per share," both of which are non-GAAP financial measures, when evaluating UGI's overall performance. Adjusted net income attributable to UGI is net incom
Slide 26: Adjusted Net Income and EPS
May 5, 2015 26 Adjusted Net Income and EPS Three Months Ended March 31 2015 2014 Adjusted net income attributable to UGI Corporation: Net income attributable to UGI Corporation 246.5$ 214.4$ Net after-tax losses (gains) on commodity derivative instruments not associated with current period transacti
Slide 27: AmeriGas Supplemental Information: Footnotes
May 5, 2015 27 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 o
Slide 28: AmeriGas Partners EBITDA Reconciliation
May 5, 2015 28 AmeriGas Partners EBITDA Reconciliation 2015 2014 EBITDA and Adjusted EBITDA: Net income attributable to AmeriGas Partners, L.P. 326,055$ 240,103$ Income tax expense (benefit) 806 (74) Interest expense 41,096 42,046 Depreciation 37,402 38,353 Amortization 10,713 10,804 EBITDA 416,072
Slide 29: AmeriGas Partners Adj. EBITDA Guidance Reconciliation
May 5, 2015 29 AmeriGas Partners Adj. EBITDA Guidance Reconciliation Forecast Fiscal Year Ending September 30, 2015 Adjusted net income attributable to AmeriGas Partners, L.P. (estimate) (d) 286,000$ Interest expense (estimate) 163,000 Income tax expense (estimate) 4,000 Depreciation (estimate) 154,
Slide 30: Investor Relations
May 5, 2015 Investor Relations: Will Ruthrauff 610-456-6571 ruthrauffw@ugicorp.com