Slide 1: 2015 Q1 Earnings Conference Call
February 5, 2015 2015 Q1 Earnings Conference Call February 5, 2015
Slide 2: About This Presentation
February 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 contr
Slide 3: Presenters
February 5, 2015 John Walsh President & CEO, UGI Kirk Oliver Chief Financial Officer, UGI Jerry Sheridan President & CEO, AmeriGas
Slide 4: 2015 Q1 Results
February 5, 2015 4 2015 Q1 Results * See appendix for Adjusted EPS reconciliation. Adjusted EPS* $0.71 $0.66 $0.00 $0.25 $0.50 $0.75 $1.00 Q1 - 14 Adjusted EPS Q1-15 Adjusted EPS
Slide 5: Operating Performance & Strategic Milestones
February 5, 2015 5 Operating Performance & Strategic Milestones Midstream & Marketing • Expansion of Temple LNG facility is on track FERC approved Expand liquefaction capacity by 50% Expect to be on-stream by Q3 • Continue to make progress on the Auburn Pipeline expansion Expect to be on-lin
Slide 6: Kirk Oliver, Chief Financial Officer
February 5, 2015 Kirk Oliver Chief Financial Officer
Slide 7: 2015 Q1 Financial Results
February 5, 2015 7 2015 Q1 Financial Results Three Months Ended December 31, 2014 2013 Adjusted net income attributable to UGI Corporation: Net income attributable to UGI Corporation 34.1$ 122.0$ Net after-tax losses (gains) on commodity derivative instruments not associated with current period tran
Slide 8: Fiscal Year Weather vs. Normal
February 5, 2015 8 (6.2)% (20.2)% (17.4)% (3.9)% 3.8% (7.2)% (12.9)% 3.0% 2015 2014 Antargaz Flaga Gas UtilityAmeriGas C O L D E R ( W A R M E R ) * HDD = Percent change in Heating Degree Days versus prior year vs. Normal (9.6%) HDD (14.0%) HDD (5.2%) HDD (6.7%) HDD Fiscal Year Weather vs. Normal
Slide 9: AmeriGas Operating Income
February 5, 2015 9 179.7 139.7 (37.0) 1.5 (1.2) (6.2) 2.9 $0 $40 $80 $120 $160 $200 2014 Q1 Volume Unit Margins Anc. Sales / services Opex & Other D&A 2015 Q1 Operating Income, $ MM Opex includes all operating expenses, net of miscellaneous income. Excludes impact of mark-to- market changes in commo
Slide 10: UGI International Income Before Taxes
February 5, 2015 10 49.2 45.9 15.3 13.1 4.6 11.5 9.0 $0 $10 $20 $30 $40 $50 $60 2014 Q1 Volume FX Impact Margin Unit Margin FX Impact Expenses Opex & Other 2015 Q1 Income Before Taxes, $ MM UGI International MARGIN Weaker Euro and British Pound Sterling Lower Antargaz and Flaga volumes Higher
Slide 11: Gas Utility
February 5, 2015 11 Gas Utility MARGIN Warmer 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 repres
Slide 12: Midstream & Marketing
February 5, 2015 12 35.2 44.9 13.1 2.2 (5.9) (1.1) 1.4 $0 $10 $20 $30 $40 $50 $60 2014 Q1 Capacity Mgmt Peaking & Other Opex & Other D&A Int. Expense 2015 Q1 Income Before Taxes, $ MM Midstream & Marketing MARGIN Higher capacity management and peaking service margin Higher natural gas gathering
Slide 13: Liquidity and Guidance
February 5, 2015 13 Liquidity and Guidance * See appendix for Adjusted EPS reconciliation. FY 2015 Adjusted EPS* Guidance Range: $1.88 – $1.98 Total AmeriGas UGI International Utilities Midstream Corporate & Other Cash on Hand $401.2 $18.5 $107.0 $5.3 $14.5 $255.9 Revolving Credit Facilities $525.0
Slide 14: Jerry Sheridan, CEO of AmeriGas
February 5, 2015 Jerry Sheridan CEO of AmeriGas
Slide 15: Q1 Adjusted EBITDA
February 5, 2015 15 Q1 Adjusted EBITDA * See appendix for Adjusted EBITDA reconciliation $230 $189 $0 $50 $100 $150 $200 $250 Q1 2014 Q1 2015 Adjusted EBITDA*, $ Millions
Slide 16: Operational Highlights
February 5, 2015 16 • Volume decreased 9.1% (34 million gallons) on weather that was 9.6% warmer than last year • Mt. Belvieu cost decreased 55% during the quarter • Mark-to-market adjustments are non-cash and associated primarily with hedges for fixed-price customers • Propane costs expected to rem
Slide 17: Growth Initiatives
February 5, 2015 17 Growth Initiatives • The AmeriGas Propane Exchange program’s volume increased 4% in the quarter and added 1,023 new locations year-over-year • The National Account program’s volume increased by 10% • Completed four smaller scale acquisitions and pipeline remains strong • Anticipa
Slide 18: John Walsh, President & CEO
February 5, 2015 John Walsh President & CEO
Slide 19: Operational Highlights
February 5, 2015 19 Operational Highlights PennEast • ~$1bn project expected to deliver one bcf of gas per day • Project partners have held a series of meetings in local communities; FERC will hold additional meetings • Expected to be on-stream by late 2017 Total LPG acquisition • Progressing as pla
Slide 20: Q2 Update
February 5, 2015 20 Q2 Update • January was cold in the Mid-Atlantic and Northeastern U.S. • Return to more normal temperatures in Europe • Cold weather and infrastructure gap driving higher prices for pipeline capacity
Slide 21: In Conclusion
February 5, 2015 21 In Conclusion • Solid quarter despite warmer weather • Return to more normal weather so far in Q2 • Strong cash flows and balance sheets provide capacity to fund future growth • Expect to deliver Adjusted EPS of $1.88 – $1.98 in FY 2015
Slide 22: Q&A
February 5, 2015 Q&A
Slide 23: Appendix
February 5, 2015 Appendix
Slide 24: UGI Supplemental Information: Footnotes
February 5, 2015 24 UGI Supplemental Information: Footnotes Management uses "adjusted net income attributable to UGI" and "adjusted diluted earnings per share," both of which are non-GAAP financial measures, when evaluating UGI's overall performance. Adjusted net income attributable to UGI is net
Slide 25: Adjusted EPS to GAAP EPS Reconciliation
February 5, 2015 25 Adjusted EPS to GAAP EPS Reconciliation Three Months Ended Twelve Months Ended December 31, December 31, 2014 2013 2014 2013 Adjusted diluted earnings per share: UGI Corporation earnings per share - diluted 0.19$ 0.70$ 1.42$ 1.71$ Net after-tax losses (gains) on commodity derivat
Slide 26: Adjusted Net Income to GAAP Net Income Reconciliation
February 5, 2015 26 Adjusted Net Income to GAAP Net Income Reconciliation Three Months Ended Twelve Months Ended December 31, December 31, 2014 2013 2014 2013 Adjusted net income attributable to UGI Corporation: Net income attributable to UGI Corporation 34.1$ 122.0$ 249.3$ 297.6$ Net after-tax loss
Slide 27: AmeriGas Supplemental Information: Footnotes
February 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 measu
Slide 28: AmeriGas Partners EBITDA Reconciliation
February 5, 2015 28 AmeriGas Partners EBITDA Reconciliation 2014 2013 2014 2013 EBITDA and Adjusted EBITDA: Net (loss) income attributable to AmeriGas Partners, L.P. (39,571)$ 134,898$ 115,424$ 259,455$ Income tax expense 870 1,431 2,050 2,475 Interest expense 41,034 41,590 165,025 165,826 Depreciat
Slide 29: AmeriGas Partners Adj. EBITDA Guidance Reconciliation
February 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)
Slide 30: Investor Relations Contact
February 5, 2015 Investor Relations: William Ruthrauff 610-456-6571 ruthrauffw@ugicorp.com