Slide 1: Fiscal 2024 Results
1 Fiscal 2024 Results Mario Longhi Board Chair, UGI Corporation B o b F l e xo n President and CEO, UGI Corporation Sean O’Brien Chief Financial Officer, UGI Corporation 1 1
Slide 2: About This Presentation
About This Presentation This presentation contains statements, estimates and projections that are forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended). Such statements use forward-looking
Slide 3: Mario Longhi, Bob Flexon, Sean O'Brien
Mario Longhi Bob Flexon Sean O’Brien Board Chair President & Chief Chief Financial Executive Officer Officer 3 3
Slide 4: FY24 Year in Review
FY24 Year in Review FY24 GAAP Diluted EPS of $1.25 Solid financial performance Balance sheet improvement compared to ($7.16) in FY23 ✓ Record EBIT at the Utilities, Midstream ✓ ~$460M in debt reduction1 and key & Marketing, and UGI International financing activities to provide covenant Adjusted Dilu
Slide 5: FY24 Financial Review
FY24 Financial Review FY24 GAAP Diluted EPS of $1.25 compared to ($7.16) in FY23 Earnings Mix: Adjusted Diluted EPS1 FY24 Adjusted Diluted EPS1 – Comparison with FY23 37% FY23 63% 33% FY24 67% Natural Gas Global LPG 5 1. Adjusted diluted EPS is a non-GAAP measure. See Appendix for reconciliation. 5
Slide 6: FY24 Financial Results by Segment
FY24 Financial Results by Segment Utilities Midstream & Marketing Key Drivers Utilities • Higher margin from increased base rates and DSIC revenues • Lower OPEX largely due to reduced uncollectible accounts expenses • Increased depreciation from distribution system capex activity Midstream & Marketi
Slide 7: Balance Sheet Update
Balance Sheet Update ✓ $1.5 billion in available liquidity, comprising cash and cash equivalents and available Long-term Debt Maturity (as of September 30, 2024)1 borrowing capacity on revolving credit facilities, as of September 30, 2024 ✓ In FY24, completed $2.5+ billion of debt financing to suppo
Slide 8: FY25 Guidance
1 FY25 Guidance Adjusted Diluted EPS Guidance2 Capital Expenditure Rate Base Growth $2.75 - $3.05 $800 - $900 Million 9%+ 8 1. The forward-looking information used on this slide is for illustrative purposes only. Actual numbers may differ substantially from the figures presented. 2. Because we are u
Slide 9: Bob Flexon
Bob Flexon President & Chief Executive Officer, UGI Corporation 9 9
Slide 10: FY25 Strategic Priorities
FY25 Strategic Priorities Improved financial Talent and profile culture n Portfolio Operating model optimization and processes Performance at AmeriGas Propane 10 10
Slide 11: Q&A
Q Q & A 11 11
Slide 12: Appendix
UGI CORPORATION Appendix
Slide 13: Our Strategy to Maximize Shareholder Value
Our Strategy to Maximize Shareholder Value Maximize value for our shareholders Sustainably grow earnings through strong execution Capitalize on our market and disciplined capital leading positions and allocation optimize our strategic Operate a high-performing, assets customer-centric and results- d
Slide 14: Shareholder Value Proposition
Shareholder Value Proposition International energy distributor with an attractive business mix and leading position in key markets 75%+ Targeted Earnings from the Natural Gas Businesses1 Building a culture of continuous improvement to drive cost competitiveness and sustainable cost savings Focused o
Slide 15: Our Business Portfolio
Our Business Portfolio Lines of Business Natural Gas Global LPG Utilities Midstream & Marketing UGI International AmeriGas Propane Segments FY24 Reportable 34% 12% Segment EBIT 27% Contribution1 27% FY24 Total Volume 378 bcf 267 bcf 875 million gallons 827 million gallons Key Highlights2 • 2nd large
Slide 16: Utilities: Capital Investment Drive Attractive Rate Base Growth
Utilities: Capital Investment Drive Attractive Rate Base Growth • Robust capital spend to modernize infrastructure and expand our systems drives reliable earnings growth and rebalancing of our portfolio • Fully projected future test year (PA) and DSIC / IREP programs reduce regulatory lag and allow
Slide 17: Our Midstream & Marketing Segment
Our Midstream & Marketing Segment Our diversified Midstream & Marketing business leverages strategic assets located across the Appalachian basin, is backed by a large customer base, and provides stable earnings underpinned by a significant proportion of fee-based contract structures. Total Margin1 (
Slide 18: A Robust Mix of Midstream Services
A Robust Mix of Midstream Services The Midstream operations leverages an asset portfolio to Gathering optimize earnings and is underpinned by significant fee- • 14 natural gas pipelines and gathering systems across NE and SW Pennsylvania serving based margin, including minimum volume commitments pro
Slide 19: Our Renewables Investment
Our Renewables Investment Renewable Natural Gas Projects Committed to Date1,2 11 Feedstock Production3 (~Mmcf) FY22 FY23 FY24 FY25 High-quality RNG projects in multiple New Energy One– Joint Venture (<25%) 250 states Cayuga - Spruce Haven 50 Cayuga - Allen Farms 85 Total Cayuga - EL-VI 55 Commitment
Slide 20: Global LPG: Effective Contract Structures to Support Margin Management
Global LPG: Effective Contract Structures to Support Margin Management Over the long-term, our Global LPG businesses have consistently maintained unit margins by realizing economies of scale utilizing its large customer base and strong distribution network. FY24 Contract Types by Volume Unit Margins
Slide 21: Capital Allocation Framework
Capital Allocation Framework Shareholder Return ➢ Maintain commitment to the dividends 1 ➢ Strong dividend payout ratio between 45% - 55% Balance Sheet ➢ Maintain attractive liquidity to navigate market dynamics 2 Improvement ➢ Target net debt to adjusted EBITDA (leverage ratio)1 between 3.5 – 4.0x2
Slide 22: Our Dividend Commitment
Our Dividend Commitment 10 Year CAGR: 6% Strong history of Dividends Per Share1 ($) $1.44 $1.50 $1.50 returning cash to 140 years $1.30 $1.32 $1.38 shareholders in Consecutively Paying $0.87 $0.91 $0.95 $1.00 $1.04 the form of Dividends dividends 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 202
Slide 23: FY24 - 27 Financial Targets
FY24 - 27 Financial Targets 1 4 – 6% $3.7 - $4.1B 9%+ 3.5 – 4.0x EPS Growth Rate Capital Expenditure Rate Base Growth Rate Leverage Ratio2 Executing on our strategy to deliver sustainable shareholder value 1.23 The forward-looking information used on this slide is as of May 2, 2024, and is for illus
Slide 24: FY24-27 Capital Deployment Plan
FY24-27 Capital Deployment Plan 1 Uses of Cash Growth and Maintenance Capital by Segment ~$1.3B Utilities ~$0.2B 7% ~$0.6B 9% ~$3.3B Midstream & Marketing 18% ~$3.9B2 UGI International 66% AmeriGas Propane ➢ Capital plan funded by cash flow from operations ➢ ~85% of total capital invested in natural
Slide 25: FY24 Segment Results Recap – Natural Gas
FY24 Segment Results Recap – Natural Gas FY24 EBIT - Comparison with FY23 ($ in million) Utilities Midstream & Marketing FY23 Total OPEX D&A Other FY24 FY23 Total OPEX D&A Other FY24 EBIT Margin EBIT EBIT Margin EBIT Key Drivers Key Drivers • Total margin growth primarily due to increases in gas and
Slide 26: FY24 Segment Results Recap – Global LPG
FY24 Segment Results Recap – Global LPG FY24 EBIT - Comparison with FY23 ($ in million) UGI International AmeriGas Propane FY23 Total OPEX D&A Other FY24 FY23 Total OPEX D&A Other FY24 EBIT Margin EBIT EBIT Margin EBIT Key Drivers Key Drivers • Slightly lower retail volumes as warmer weather and low
Slide 27: Strong Strides in Environmental, Social and Governance (ESG)
Strong Strides in Environmental, Social and Governance (“ESG”) Our ESG Ratings AAA rating B rating Prime status Medium-Risk MSCI Carbon Disclosure Project ISS ESG Corporate Rating1 Morningstar Sustainalytics Environmental Commitments and Progress2 Scope 1 Emissions Reduction Commitment Pipeline Repl
Slide 28: UGI in the Community
UGI in the Community $2.8+ million $1+ million 1 42,000+ 1 UGI’s financial contribution Invested in various education Volunteer hours to communities in FY24 initiatives through EITC Continued Focus on Safety Investing in the Next Generation Improve literacy Inspire future STEM professionals Build fu
Slide 29: FY24 Adjusted Diluted Earnings per Share
FY24 Adjusted Diluted Earnings per Share FY24 FY23 Utilities $1.10 $1.01 Midstream & Marketing 1.11 0.89 UGI International 1.22 0.80 AmeriGas Propane (0.11) 0.33 Corporate & Other (a) (2.07) (10.19) Diluted earnings (loss) per share (b) 1.25 (7.16) Net (gains) losses on commodity derivative instrume
Slide 30: FY24 Adjusted Net Income
FY24 Adjusted Net Income ($ in Million) FY24 FY23 Utilities $237 $219 Midstream & Marketing 238 193 UGI International 262 172 AmeriGas Propane (23) 71 Corporate & Other (a) (445) (2,157) Net income (loss) attributable to UGI Corporation 269 (1,502) Net (gains) losses on commodity derivative instrume
Slide 31: Midstream and Marketing Margin (non-GAAP)
Midstream and Marketing Margin (non-GAAP) ($ in Million) FY24 FY23 FY22 FY21 FY20 Total Revenues $1,369 $1,847 $2,326 $1,406 $1,247 Less: Total Cost of Sales (864) (1,360) (1,876) (1,033) (892) Margin - Midstream & Marketing $505 $487 $450 $373 $355 Less: HVAC - - - - (21) UGI Energy Services Margin
Slide 32: FY24 Segment Reconciliation (GAAP)
FY24 Segment Reconciliation (GAAP) ($ in Million) Midstream & UGI AmeriGas Corp & ($ in Million) Total Utilities Marketing International Propane Other Revenues $7,210 $1,598 $1,369 $2,279 $2,271 ($307) Cost of sales (3,529) (650) (864) (1,301) (1,059) 345 1 Total margin $3,681 $948 $505 $978 $1,212
Slide 33: UGI Corporation Adjusted EBITDA (non-GAAP)
UGI Corporation Adjusted EBITDA (non-GAAP) ($ in Million) FY24 FY23 FY22 FY21 Net income (loss) including noncontrolling interests $269 ($1,502) $1,073 $1,467 Income taxes 71 (335) 313 522 Interest expense 394 379 329 310 Depreciation and amortization 551 532 518 502 EBITDA 1,285 (926) 2,233 2,801 U
Slide 34: Notes to ESG Commitments
Notes to ESG Commitments Committed to reducing Scope I emissions by 55% by 2025 using 2020 as the base year 1. Scope 1 emissions reduction target did not include emissions from the Mountaineer acquisition, which closed in September 2021. The target also excluded the Moraine East acquisition and only