Slide 1: 2014 Q4 Earnings Conference Call
November 13, 2014 2014 Q4 Earnings Conference Call November 13, 2014
Slide 2: About This Presentation
November 13, 2014 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 cont
Slide 3: Presenters
November 13, 2014 John Walsh President & CEO, UGI Kirk Oliver Chief Financial Officer, UGI Jerry Sheridan President & CEO, AmeriGas
Slide 4: FY14 Results and FY15 Guidance
November 13, 2014 4 FY14 Results and FY15 Guidance * See appendix for Adjusted EPS reconciliation. $1.00 $1.25 $1.50 $1.75 $2.00 $2.25 2013 2014 Forecast 2015 Guidance FY 2015 Adjusted EPS* Guidance Range: $1.88 – $1.98 Adjusted EPS* $1.58 $1.99 $1.88 - $1.98 Weather impacts of U.S. and Europe
Slide 5: Strategic Milestones: Midstream & Marketing, UGI Utilities
November 13, 2014 5 Strategic Milestones Midstream & Marketing • 20% equity partner in PennEast Pipeline o 100+ mile pipeline will link Marcellus production with customers in southeast PA and central NJ • Project Manager and Pipeline Operator UGI Utilities • Record levels of customer additions and i
Slide 6: Strategic Milestones: AmeriGas, UGI International
November 13, 2014 6 Strategic Milestones AmeriGas • Strong ACE and National Accounts growth at AmeriGas • 8% ACE volume growth • Over 20% National Account volume growth UGI International • Purchase agreement to acquire Total’s LPG distribution business in France was signed earlier this week • Antici
Slide 7: Kirk Oliver, Chief Financial Officer
November 13, 2014 Kirk Oliver Chief Financial Officer
Slide 8: Fiscal Year Weather vs. Normal
November 13, 2014 8 Fiscal Year Weather vs. Normal (W A R M E R ) C O LD E R (W A R M E R ) 3.4% -4.9% -14.1% 3.7% -15.7% 0.9% 10.0% -0.5% -20.0% -10.0% 0.0% 10.0% 20.0% 2014 2013 AmeriGas Antargaz Flaga Gas Utility
Slide 9: AmeriGas
November 13, 2014 9 Opex includes all operating expenses, net of miscellaneous income. Excludes impact of mark-to- market changes in commodity hedging instruments. Total Margin represents total revenues less total cost of sales. AmeriGas VOLUME Colder weather MARGIN Higher retail unit margins OP
Slide 10: UGI International
November 13, 2014 10 UGI International MARGIN Lower volume due to warmer weather Slightly higher total margin at Flaga Slightly stronger Euro and British pound OPEX Increased costs at Flaga from BP Poland acquisition Expenses related to proposed acquisition of Total’s LPG distribution busi
Slide 11: Gas Utility
November 13, 2014 11 Gas Utility MARGIN Colder weather Higher core market and large firm delivery margins OPEX Higher distribution system maintenance Higher uncollectable accounts Lower pension expense Total Margin * Opex includes all operating expenses, net of miscellaneous income. Total
Slide 12: Midstream & Marketing
November 13, 2014 12 Midstream & Marketing MARGIN Higher capacity management, storage, and gathering margin Higher gas marketing margin Higher electric generation margin Locational basis differentials OPEX Increased operating and depreciation expenses associated with storage and natural ga
Slide 13: Q2 Basis Differentials
November 13, 2014 13 Q2 Basis Differentials (W A R M E R ) Spot Price Comparison Location – Texas Eastern Zone M-3 0 2 4 6 8 10 12 14 16 18 1-Jan 8-Jan 15-Jan 22-Jan 29-Jan 5-Feb 12-Feb 19-Feb 26-Feb 5-Mar 12-Mar 19-Mar 26-Mar 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Fiscal 2012 Pre-recession
Slide 14: Q2 Basis Differentials
November 13, 2014 14 Q2 Basis Differentials (W A R M E R ) Spot Price Comparison Location – Texas Eastern Zone M-3 0 10 20 30 40 50 60 70 80 90 1- Ja n 8- Ja n 15 -J an 22 -J an 29 -J an 5- Fe b 12 -F eb 19 -F eb 26 -F eb 5- M ar 12 -M ar 19 -M ar 26 -M ar 2007-08 2008-09 2009-10 2010-11 2011-12 201
Slide 15: Liquidity and Guidance
November 13, 2014 15 Liquidity and Guidance Total AmeriGas UGI International Utilities Midstream Corporate & Other Cash on Hand $419.5 $13.5 $140.2 $12.4 $8.1 $245.4 Revolving Credit Facilities $525.0 $123.8 $300.0 $240.0 NA Accounts Receivable Facility NA NA NA 46.4 NA Drawn on Facilities 109.0 0.0
Slide 16: Jerry Sheridan, CEO of AmeriGas
November 13, 2014 Jerry Sheridan CEO of AmeriGas
Slide 17: Q4 Adjusted EBITDA
November 13, 2014 17 Q4 Adjusted EBITDA * See appendix for Adjusted EBITDA reconciliation $46.5 $48.3 $30 $35 $40 $45 $50 Q4 2013 Q4 2014 Adjusted EBITDA*, $ Millions
Slide 18: Fiscal 2014 Adjusted EBITDA
November 13, 2014 18 Fiscal 2014 Adjusted EBITDA * See appendix for Adjusted EBITDA reconciliation $617.7 $664.8 $500 $540 $580 $620 $660 $700 FY2013 FY2014 Adjusted EBITDA*, $ Millions
Slide 19: Growth Initiatives
November 13, 2014 19 AmeriGas Cylinder Exchange (ACE) • Volume growth up 8% in fiscal 2014 • Added over 1,300 new locations • Now 48,000 distribution locations nationwide National Accounts • 22% volume growth in fiscal 2014 • Over 50 new accounts added Local Acquisitions • Seven deals closed in fisc
Slide 20: Strategic Milestones: Strong Balance Sheet and Earnings Power
November 13, 2014 20 Strong Balance Sheet • Leverage Ratio ~ 3.6x • Distribution coverage - 1.2x Earnings Power • Earnings have nearly doubled from just two years ago • FY15 Adjusted EBITDA Guidance of $670MM-$700MM • Supports long-term goals of 3%-4% EBITDA growth and 5% distribution growth Strateg
Slide 21: John Walsh, President & CEO
November 13, 2014 John Walsh President & CEO
Slide 22: Operational Highlights: Gas Utility, Midstream & Marketing
November 13, 2014 22 Operational Highlights Gas Utility • Added 16,000 residential heating customers and 2,000 new commercial customers • Moving forward with innovative approaches to support continued growth, such as GET Gas • Received the highest customer satisfaction score among large utilities in
Slide 23: Operational Highlights: UGI International, AmeriGas
November 13, 2014 23 Operational Highlights UGI International • Strong performance despite significantly warmer weather • Planned Total acquisition remains on track to close in first half of calendar year 2015 AmeriGas • Leveraged size and scale to ensure uninterrupted access to propane for customer
Slide 24: In Conclusion
November 13, 2014 24 In Conclusion Strongest financial performance in our history Progress on a range of strategic growth initiatives Significant growth opportunities across all four business segments in FY 2015 and beyond
Slide 25: Q&A
November 13, 2014 Q&A
Slide 26: Appendix
November 13, 2014 Appendix
Slide 27: UGI Supplemental Information: Footnotes
November 13, 2014 27 UGI Supplemental Information: Footnotes Management uses "adjusted net income attributable to UGI" and "adjusted diluted earnings per share," both of which are non-GAAP financial measures, when evaluating UGI's overall performance. Adjusted net income attributable to UGI is net
Slide 28: Adjusted EPS to GAAP EPS Reconciliation
November 13, 2014 28 Adjusted EPS to GAAP EPS Reconciliation Three Months Ended Twelve Months Ended September 30, September 30, 2014 2013 2014 2013 Adjusted diluted earnings (loss) per share: UGI Corporation earnings (loss) per share - diluted (0.11)$ (0.08)$ 1.92$ 1.60$ Net losses (gains) on Midstr
Slide 29: Adjusted Net Income to GAAP Net Income Reconciliation
November 13, 2014 29 Adjusted Net Income to GAAP Net Income Reconciliation Three Months Ended Twelve Months Ended September 30, September 30, 2014 2013 2014 2013 Adjusted net (loss) income attributable to UGI Corporation: Net (loss) income attributable to UGI Corporation (19.8)$ (14.2)$ 337.2$ 278.1
Slide 30: AmeriGas Supplemental Information: Footnotes
November 13, 2014 30 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 meas
Slide 31: AmeriGas Partners EBITDA Reconciliation
November 13, 2014 31 AmeriGas Partners EBITDA Reconciliation 2014 2013 2014 2013 Net (loss) income attributable to AmeriGas Partners, L.P. (47,347)$ (54,056)$ 289,893$ 221,222$ Income tax expense 407 1,155 2,611 1,671 Interest expense 40,617 41,213 165,581 165,432 Depreciation 37,095 41,638 154,020
Slide 32: AmeriGas Partners Adj. EBITDA Guidance Reconciliation
November 13, 2014 32 AmeriGas Partners Adj. EBITDA Guidance Reconciliation Forecast Fiscal Year Ending September 30, 2015 Net income attributable to AmeriGas Partners, L.P. (estimate) 323,000$ Interest expense (estimate) 163,000 Income tax expense (estimate) 4,000 Depreciation (estimate) 154,000 Amo
Slide 33: Investor Relations
November 13, 2014 Investor Relations: 610-337-1000 Daniel Platt (x1029) plattd@ugicorp.com