Ugi Corporation · NYSE:UGI
Ugi — Q2 2020 Earnings Presentation
22 slides from Ugi's earnings presentation, May 7, 2020
Slide 1: Fiscal 2020 Second Quarter Results
Fiscal 2020 Second Quarter Results John L. Walsh President & CEO, UGI Corporation Ted J. Jastrzebski Chief Financial Officer, UGI Corporation Robert F. Beard Executive Vice President Natural Gas, UGI Corporation Roger Perreault Executive Vice President Global LPG, UGI Corporation 1
Slide 2: About This Presentation
About This Presentation This presentation contains statements, estimates and projections which are forward-looking statements (as defined in Section 21E of the Securities and Exchange Act of 1934, as amended). Management believes that these are reasonable as of today’s date only. Actual results may
Slide 3: Second Quarter Recap
Second Quarter Recap 3 John L. Walsh President & CEO, UGI
Slide 4: Second Quarter Earnings Recap
Second Quarter Earnings Recap • GAAP EPS of $1.07 and Adjusted EPS1 of $1.56 • Historically warm weather • YTD GAAP EPS and YTD Adjusted EPS1 increased 20% and 22%, respectively, versus the prior-year period Q2 2020 Weather Versus: Normal 1 Adjusted EPS Midstream & AmeriGas UGI International Marketi
Slide 5: UGI's COVID-19 Response
UGI’s COVID – 19 Response Employees Customers Communities • Implemented working • Provided uninterrupted • Provided critical services to from home procedures essential service to our 3 hundreds of healthcare across the organization for million customers centers and testing facilities over 4,000 empl
Slide 6: Natural Gas Business Update
Natural Gas Business Update • Natural Gas businesses exceeded expectations given the headwind of weather • COVID-19 Impact • Minimal disruption on volumes and associated margin • PA PUC moratorium on service terminations began in March • Investigating possibility of seeking special regulatory treatm
Slide 7: Global LPG Business Update
Global LPG Business Update • Business Transformation Update • Remain on track; reaffirm cost savings projections for FY20 • $30M in cost savings for AmeriGas • €5M in savings for UGI International • Adaptation to COVID-19 protocols validated strategic direction for investments in new technology solu
Slide 8: FY 2020 Guidance Update
FY 2020 Guidance Update • Updated fiscal year 2020 adjusted EPS guidance to a range of $2.45 - $2.551 per share, excluding the COVID-19 impact • COVID-19 pandemic could negatively impact earnings by an additional $0.20 - $0.30 per share • Estimate is uncertain and will depend on future developments
Slide 9: Second Quarter Financial Review
Second Quarter Financial Review Ted J. Jastrzebski Chief Financial Officer, UGI
Slide 10: Liquidity Update
Liquidity Update • Total available liquidity as of 3/31/20: $1.2 billion • Natural Gas and Global LPG businesses have access to capital, as available financing capacity is evenly distributed • Lower working capital requirements in Q1 and Q2 as a result of low commodity prices; higher cash generation
Slide 11: Second Quarter Adjusted Earnings
Second Quarter Adjusted Earnings 11 UGI Corporation | Fiscal 2020 Second Quarter Results
Slide 12: Second Quarter Results Recap
Second Quarter Results Recap 1 Adjusted EPS Adjusted EPS1 $0.31 $(0.15) $1.56 $1.563 $0.02 $1.432 $1.43 $0.03 $(0.08) UGI Utilities $0.39 $0.47 $0.24 Midstream & 12.9% 5.8% 18.6% 18.9% $0.21 Marketing Warmer Warmer Warmer Warmer $0.36 UGI than prior year $0.51 International Q2 2019 AmeriGas UGI Mids
Slide 13: Financial Results - AmeriGas
Financial Results - AmeriGas (Millions of dollars) Q2 FY 2019 Q2 FY 2020 Weather versus normal Earnings Before Interest Expense & Income Taxes $247.3 Total Margin (60.0) Operating and Administrative Expenses 20.0 4.4% Depreciation and Amortization (0.6) (9.1)% Other Income and Expense, net (0.7) Q2
Slide 14: Financial Results – UGI International
Financial Results – UGI International (Millions of dollars) Q2 FY 2019 Q2 FY 2020 Weather versus normal Earnings Before Interest Expense & Income Taxes $130.1 Colder Total Margin (20.5) Operating and Administrative Expenses 10.2 Realized FX Gains 6.0 Other Income and Expense, net 0.4 (7.5)% (12.9)%
Slide 15: Financial Results – Midstream & Marketing
Financial Results – Midstream & Marketing (Millions of dollars) Q2 FY2019 Q2 FY 2020 Weather versus normal Earnings Before Interest Expense & Income Taxes $52.8 Colder Total Margin 30.8 Operating and Administrative Expenses (2.3) Depreciation and Amortization (7.5) Other Income and Expense, net 5.4
Slide 16: Financial Results – Utilities
Financial Results – Utilities (Millions of dollars) Q2 FY 2019 Q2 FY2020 Weather versus normal Earnings Before Interest Expense & Income Taxes $120.3 Colder Total Margin (2.9) Operating and Administrative Expenses 2.4 Depreciation (3.5) Other Income and Expense, net (0.3) (0.8)% (20.5)% Earnings Bef
Slide 17: Conclusion and Q&A
Conclusion and Q&A John L. Walsh President & CEO, UGI
Slide 18: Strategic Overview
Strategic Overview • Dramatic fall in oil prices and impact on production levels will benefit UGI’s midstream business • Upward movement of future strip for natural gas will positively impact production in the NE and SW Marcellus • UGI Appalachia positioned well to serve increase in production • Tot
Slide 19: Q&A
Q&A 19
Slide 20: Appendix
Appendix
Slide 21: UGI Supplemental Footnotes
UGI Supplemental Footnotes • Management uses “adjusted net income attributable to UGI Corporation” and “adjusted diluted earnings per share,” both of which are non-GAAP financial measures, when evaluating UGI’s overall performance. Management believes that these non-GAAP measures provide meaningful
Slide 22: Investor Relations
Investor Relations: Brendan Heck Alanna Zahora 610-456-6608 610-337-1004 heckb@ugicorp.com zahoraa@ugicorp.com