Slide 1: Fiscal 2016 Third Quarter Results
Fiscal 2016 Third Quarter Results John Walsh President & CEO, UGI Kirk Oliver Chief Financial Officer, UGI Jerry Sheridan President & CEO, AmeriGas 1
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: Third Quarter Recap
Third Quarter Recap John Walsh President & CEO, UGI 3
Slide 4: Third Quarter Earnings Recap
Third Quarter Earnings Recap Adjusted EPS1 • Superior execution aided by cooler $0.25 weather in early spring shoulder $0.20 $0.23 months $0.15 • International segment delivered $0.10 outstanding results driven by Finagaz acquisition and higher unit margins $0.05 $0.07 • On track to deliver record f
Slide 5: Key Accomplishments
Key Accomplishments • Filed UGI Gas rate case settlement in June. If approved, our new rates would increase by $27 million and become effective mid-October • Recently expanded LNG facility in Temple, PA is being fully utilized • $1.35 billion AmeriGas refinancing will lower its cost of capital and a
Slide 6: Financial Review
Financial Review Kirk Oliver Chief Financial Officer, UGI 6
Slide 7: Q3 Adjusted Earnings
Q3 Adjusted Earnings Three Months Ended June 30, (millions) 2016 2015 Net income attributable to UGI Corporation $60.7 $9.6 Net after-tax gains on commodity derivative instruments1 (29.6) (4.9) Net after-tax acquisition and integration expenses2 2.8 3.1 Loss on extinguishments of debt3 6.1 4.6 Adjus
Slide 8: Q3 Weather – Colder Than Prior Year
Q3 Weather – Colder Than Prior Year VERSUS NORMAL1 COLDER WARMER 5.5% 23.6% 37.8% 30.9% VERSUS PRIOR YEAR1 Colder Colder Colder Colder 8 1Percent change in Heating Degree Days.
Slide 9: Financial Results – AmeriGas
Financial Results – AmeriGas FY FY 2015 2016 Weather (millions) Q3 Adjusted EBITDA $ 48.9 Retail Volume $ 0.7 vs. Normal Total Retail Unit Margin $ 9.2 Margin Wholesale and Other Total Margin $ (0.6) Operating and Administrative Expenses $ 6.1 Other $ 0.3 Q3 Adjusted EBITDA1 $ 64.6 • Volume comparab
Slide 10: Financial Results – UGI International
Financial Results – UGI International FY FY UGI France (millions) 2015 2016 Weather Q3 Loss Before Taxes $ (16.9) Total Margin $ 78.7 vs. Normal Operating and Administrative Expenses $ (37.9) Depreciation and Amortization $ (6.3) Interest Expense $ 10.8 Other $ (0.7) Q3 Income Before Taxes $ 27.7 Ac
Slide 11: Financial Results – UGI Utilities
Financial Results – UGI Utilities FY FY Gas Utility (millions) 2015 2016 Weather Q3 Income Before Taxes $ 10.3 Total Margin $ 6.2 vs. Normal Operating and Administrative Expenses $ 7.9 Depreciation and Amortization $ (0.7) Interest Expense $ 0.8 Other $ (3.8) Q3 Income Before Taxes $ 20.7 • Total ma
Slide 12: Financial Results – Midstream & Marketing
Financial Results – Midstream & Marketing FY FY 2015 2016 Weather (millions) Q3 Income Before Taxes $ 19.0 Total Margin $ (7.9) vs. Normal Operating and Administrative Expenses $ 0.5 Depreciation and Amortization $ (0.5) Interest Expense $ 0.1 Other $ (0.3) Q3 Income Before Taxes $ 10.9 • Lower marg
Slide 13: Liquidity and Guidance
Liquidity and Guidance Liquidity Guidance • Strong cash generation • FY 16 Adjusted EPS at the upper end, or slightly • Access to cash and bank above, our guidance range capacity of $1.95 to $2.051 • AmeriGas refinancing lowered average borrowing costs and extended maturities • Utility drew $100 mil
Slide 14: Third Quarter Recap
Third Quarter Recap Jerry Sheridan President & CEO, AmeriGas 14
Slide 15: Third Quarter Recap
Third Quarter Recap $mm Adjusted EBITDA1 Solid margin management, $100 expense control and colder weather contributed to strong $80 results $65 Weather was 7.5% warmer $60 than normal and 5.5% colder $49 than the prior year $40 Increased unit margins $0.04 despite 26% increase in propane costs
Slide 16: Growth Initiatives
Growth Initiatives Cylinder Exchange • 3% increase in cylinders sold, driven by a 14% increase in the month of June National Accounts: • Volume increased 6% as it benefited from the cooler weather and account growth Acquisitions • Completed two acquisitions in June and one in July • Have closed six
Slide 17: Refinancing and Guidance
Refinancing and Guidance • Completed $1.35 billion refinancing o $675 million matures 2024 o $675 million matures 2026 • Extends our weighted average maturities from 3.8 years to 9 years • Reduces cash interest by $5 million per year • Continue to focus on solid distribution coverage to support annu
Slide 18: Conclusion
Conclusion John Walsh President & CEO, UGI 18
Slide 19: Strategic Investments Update
Strategic Investments Update Midstream & Marketing Utilities Sunbury Pipeline • Project activity is robust and expected to • Currently under construction continue • Completion early 2017 • In service Summer 2017 • New UGI Gas rates are expected to become effective in October PennEast Pipeline • Draf
Slide 20: Conclusion
Conclusion • Strong results with record third quarter earnings • Major investments are clearly yielding results • Continue to expect the strong underlying demand for natural gas will stress the existing infrastructure • The increasing “infrastructure gap” will continue to yield investment opportunit
Slide 21: Appendix
ry Appendix . ay
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures 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 incom
Slide 23: UGI Adjusted Net Income and EPS
UGI Adjusted Net Income and EPS Three Months Ended June 30, (Dollars in millions, except per share amounts) 2016 2015 Adjusted net income attributable to UGI Corporation: Net income attributable to UGI Corporation $ 60.7 $ 9.6 Net gains on commodity derivative instruments not associated with current
Slide 24: UGI Segment Summary
UGI Segment Summary Midstream & Marketing UGI International Three Months Ended Elim- AmeriGas UGI Energy Electric UGI Flaga & Corporate June 30, 2016 Total inations Propane Utilities Services Generation France Other & Other (b) Revenues 1,130.8 (20.0) (c) 446.7 140.3 156.8 11.7 280.7 114.8 (0.2) Cos
Slide 25: AmeriGas Non-GAAP Financial Measures
AmeriGas Non-GAAP Financial Measures Management believes earnings before interest, income taxes, depreciation and amortization (“EBITDA”), as adjusted for the effects of gains and losses on commodity derivative instruments not associated with current-period transactions and other gains and losses
Slide 26: AmeriGas Adjusted EBITDA
AmeriGas Adjusted EBITDA Three Months Ended June 30, EBITDA and Adjusted EBITDA: 2016 2015 Net (loss) income attributable to AmeriGas Partners $ (33.1) $ (25.6) Income tax expense (a) 1.0 0.7 Interest expense 40.8 40.3 Depreciation 35.7 37.4 Amortization 10.7 10.7 EBITDA 55.1 63.5 Subtract net (gain
Slide 27: Investor Relations
Investor Relations: Will Ruthrauff 610-456-6571 27 ruthrauffw@ugicorp.com