Ugi Corporation · NYSE:UGI
Ugi — Q2 2019 Earnings Presentation
26 slides from Ugi's earnings presentation, May 7, 2019
Slide 1: Fiscal 2019 Second Quarter Results
Fiscal 2019 Second Quarter Results John L. Walsh President & CEO, UGI Corporation Ted J. Jastrzebski Chief Financial Officer, UGI Corporation Hugh J. Gallagher President & CEO, AmeriGas
Slide 2: About This Presentation
About This Presentation 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
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 1 • GAAP EPS of $1.38 and Adjusted EPS of $1.43 • Prior-year period included $0.09 benefit related to TCJA at UGI Utilities • Slightly warmer-than-normal weather at Midstream & Marketing and UGI Utilities • Significantly warmer-than-normal weather at UGI International •
Slide 5: Key Accomplishments
Key Accomplishments • AmeriGas Merger Transaction announced • Expected to be accretive to UGI in 2020 • Expected to increase cash available for growth investments and dividends • Over $200 million in additional annual free cash flow to UGI • PennEast Pipeline Project was granted survey access in PA
Slide 6: Second Quarter Financial Review
Second Quarter Financial Review Ted J. Jastrzebski Chief Financial Officer, UGI
Slide 7: Second Quarter Adjusted Earnings
Second Quarter Adjusted Earnings ($ millions, except per share amounts) Q2 2018 Q2 2019 Net income attributable to UGI Corporation (GAAP) $276.0 $245.4 Net losses on commodity derivative instruments1,3 15.7 11.5 Unrealized losses (gains) on foreign currency derivative instruments1 1.3 (3.2) Integrat
Slide 8: Second Quarter Results Recap
Second Quarter Results Recap Adjusted EPS1 $1.75 $1.69 ($0.01) $0.01 ($0.22) Adjusted EPS1 $1.692 $1.50 ($0.04) $1.432 $0.00 $1.43 $0.51 UGI Utilities $0.47 4.9% 9.5% 1.2% 1.4% $0.43 Midstream & Colder Warmer Colder Colder Marketing $0.21 $1.25 than prior year UGI $0.50 International $0.51 $0.28 Ame
Slide 9: Financial Results - AmeriGas
Financial Results - AmeriGas (Millions of dollars) Q2 FY18 Q2 FY19 Weather versus normal 1 Adjusted EBITDA $309.5 Colder Retail Margin (20.3) Total Margin Wholesale and Other Total Margin 0.1 4.4% Partnership Operating and Administrative Expenses 2.4 Other Income and Expense, net (1.4) (0.5)% Adjust
Slide 10: Financial Results – UGI International
Financial Results – UGI International (Millions of dollars) Q2 FY18 Q2 FY19 Weather versus normal Income Before Taxes $117.5 Colder Total Margin (30.0) Operating and Administrative Expenses 18.0 Depreciation and Amortization 4.3 Interest Expense (0.9) 2.2% Other Income and Expense, net 15.1 (7.5)% I
Slide 11: Financial Results – Midstream & Marketing
Financial Results – Midstream & Marketing (Millions of dollars) Q2 FY18 Q2 FY19 Weather versus normal Income Before Taxes $107.6 Colder Total Margin (53.5) Operating and Administrative Expenses (3.2) Depreciation and Amortization (0.7) Interest Expense 0.2 (1.1)% (0.7)% Other Income and Expense, net
Slide 12: Financial Results – Utilities
Financial Results – Utilities (Millions of dollars) Q2 FY18 Q2 FY19 Weather versus normal Income Before Taxes $124.0 Total Margin (14.4) Colder Operating and Administrative Expenses 1.1 Depreciation (1.2) Interest Expense (1.1) Other Income and Expense, net (0.3) (2.2)% (0.8)% Income Before Taxes $1
Slide 13: Recent Financial Highlights
Recent Financial Highlights UGI FY19 Guidance • Adjusted EPS $2.40 - $2.601 • Improvements versus prior years • OpEx Management • Additional margin increase from new Midstream assets • Realized margin from LPG price increases enacted in prior quarters at UGI International • Tax effect impact at UGI
Slide 14: AmeriGas Second Quarter Recap
AmeriGas Second Quarter Recap Hugh J. Gallagher President and CEO, AmeriGas
Slide 15: Second Quarter Earnings Recap
Second Quarter Earnings Recap Adjusted EBITDA1 (Millions of dollars) • Weather in Q2 was 4% colder than normal and 5% colder than Q2 2018 • Retail volumes decreased 4% as AmeriGas experienced January and February weather that was a combined $309.5 $290.3 17% warmer than normal in the southeastern U.
Slide 16: Growth Initiatives
Growth Initiatives Home Delivery • Pilot program will go live this summer season Cylinder Exchange • Expansion with major retailer and large convenience store chain • Roll-out a significant number of additional “24/7” automated cylinder vending locations by the end of the calendar year Technology/In
Slide 17: Conclusion and Q&A
Conclusion and Q&A John L. Walsh President & CEO, UGI
Slide 18: Strategic Overview
Strategic Overview • Continue to build our fee-based income stream • Began construction on new LNG storage and vaporization facility near Bethlehem, PA; $60 million investment • Deploying record levels of capital at the Utility; expect to invest approximately $2 billion in capital over the next five
Slide 19: Q&A
Q&A
Slide 20: Appendix
Appendix
Slide 21: UGI Supplemental Footnotes
UGI Supplemental 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. For the periods presented, adjusted net income attributable to UGI is net income
Slide 22: UGI Adjusted Net Income and EPS
UGI Adjusted Net Income and EPS UGI Corporation | Fiscal 2019 Second Quarter Results 22
Slide 23: UGI Adjusted Net Income and EPS
UGI Adjusted Net Income and EPS UGI Corporation | Fiscal 2019 Second Quarter Results 23
Slide 24: AmeriGas Supplemental Footnotes
AmeriGas Supplemental 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 of performance or financial c
Slide 25: AmeriGas EBITDA and Adjusted EBITDA
AmeriGas EBITDA and Adjusted EBITDA UGI Corporation | Fiscal 2019 Second Quarter Results 25
Slide 26: Investor Relations
Investor Relations: Brendan Heck Alanna Zahora 610-456-6608 610-337-1004 heckb@ugicorp.com zahoraa@ugicorp.com