Ugi Corporation · NYSE:UGI
Ugi — Debt Investor Presentation (May 2025)
35 slides from Ugi's debt investor presentation, May 20, 2025
Slide 1: Investor Presentation May 2025
R Investor Presentation May 2025
Slide 2: Recipients of this presentation (each, a “Recipient”) should carefully review the offering memorandum relating
2 A m er iG as Recipients of this presentation (each, a “Recipient”) should carefully review the offering memorandum relating to the offering of the notes described herein, including the risk factors in that offering memorandum, before making any investment decision. This presentation is not an offe
Slide 3: Agenda
3 A m er iG as Agenda I Transaction Overview II Business Overview IV Key Credit Highlights V Financial Overview VI Q&A VII Appendix III Q2 ’25 Financial Results
Slide 4: Transaction Overview
R Transaction Overview
Slide 5: Summary of Indicative Terms – New Senior Notes
5 A m er iG as Summary of Indicative Terms – New Senior Notes Co-Issuers: AmeriGas Partners, L.P. and AmeriGas Finance Corp. (collectively, “AmeriGas” or the “Co-Issuers”) Issue: $550 million New Senior Unsecured Notes due 2030 (the “Notes”) Use of Proceeds: Proceeds from this offering, along with c
Slide 6: Sources & Uses and Pro Forma Capitalization
6 A m er iG as Sources & Uses and Pro Forma Capitalization ($ in millions) (1) As of Pro Forma 3/31/2025 3/31/2025 Cash and Cash Equivalents (2) $96 $2 ABL Revolver ($300 Facility Size | $299 BB) -- 36 Total Secured Debt $-- $36 5.875% Senior Notes due 2026 664 -- 5.750% Senior Notes due 2027 512 51
Slide 7: Debt Maturity Profile
7 A m er iG as $36 $262 $512 $493 $200 $550 2025 2026 2027 2028 2029 2030 RCF (Drawn) RCF (Undrawn) Senior Notes Intercompany Loan New Senior Notes $69 $101 $218 $664 $512 $493 2025 2026 2027 2028 2029 2030 RCF (Drawn) RCF (Undrawn) Senior Notes Debt Maturity Profile Debt Maturity Profile – Prior to
Slide 8: Management Presenters
R Management Presenters Sean O'Brien CFO, UGI Jason Rich Treasurer, UGI Michael Sharp President, AmeriGas
Slide 9: Business Overview
R Business Overview
Slide 10: AmeriGas Overview
10 A m er iG as AmeriGas Overview Key Highlights Bulk Distribution ~0.9mm tanks with 120 – 1,200 gallon capacity National Accounts Utilizing scale to serve regional and national customers Cylinder Exchange Portable tanks for barbecues and outdoor heating Source: Company Financials | 1 Based on volum
Slide 11: AmeriGas Overview (Cont'd)
11 A m er iG as 49% 28% 23% AmeriGas Overview (Cont’d) Source: Company Financials | 1 As of 9/30/2024. Formula-Based / Contract Floating • Prices calculated based on the applicable index which moves with the LPG spot market • Primary indices are Mont Belvieu and Conway Stated Price / Market • Price
Slide 12: AmeriGas Core Focus Areas
12 A m er iG as AmeriGas Core Focus Areas AmeriGas intends to build on Fiscal 2025’s positive results through execution on five core focus areas Optimizing our call center locations to elevate Customer Experience Utilizing data to re-write the routing playbook to remove today’s inefficiencies Improv
Slide 13: Optimizing Operating Model via POD Structure
13 A m er iG as Launched in September 2024, “PODs” is our retail field operating model that drives continuous collaboration between territory leaders, service, delivery, sales and other key support teams to make real-time business decisions. PODs are showing intense collaboration on routing, custome
Slide 14: Q2 '25 Financial Results
R Q2 ’25 Financial Results
Slide 15: Fiscal Q2 2025 Highlights
15 A m er iG as Fiscal Q2 2025 Highlights Volumes ✓ Fiscal Q2 2025 retail volume 3% favorable to Prior Year benefiting from the cold weather ✓ Fiscal YTD retail volume 1% favorable to Prior Year Financial Performance ✓ Fiscal Q2 EBIT1 $16M (+12%) favorable to Prior Year ✓ Fiscal YTD EBIT1 $19M (+9%)
Slide 16: Q2 '25 Financial Results
16 A m er iG as Q2 ’25 Financial Results ($ in millions) Adjusted EBITDA 1 Capital Expenditures Source: Company Financials | 1 Adjusted EBITDA is a non-GAAP measure and is calculated in accordance with UGI’s reported segment information. See Appendix for reconciliation. | 2 Adjusted EBTIDA – Capital
Slide 17: Q2 '25 Financial Results (Cont'd)
17 A m er iG as Q2 ’25 Financial Results (Cont’d) $1.51 $1.51 Six Months Ended 3/31/24 Six Months Ended 3/31/25 467 473 49 51 516 524 Six Months Ended 3/31/24 Six Months Ended 3/31/25 Adjusted Total Margin 1 ($ in millions) Adjusted Unit Margin per Gallon 1 Source: Company Financials | 1 Adjusted To
Slide 18: Key Credit Highlights
R Key Credit Highlights
Slide 19: Key Credit Highlights
19 A m er iG as Key Credit Highlights Well-Structured Customer Contracts Reliable Margin Management Market Leading Scale Experienced and Proven Management Team I II III IV
Slide 20: Well-Structured Customer Contracts
20 A m er iG as 49% 28% 23% The majority of our contracts have pass-through structures which enable recovery over the long-term despite the potential for short- term lags in covering higher commodity cost. Formula-Based / Contract Floating • Prices calculated based on the applicable index which move
Slide 21: Reliable Margin Management
21 A m er iG as Areas of Focus $1.32 $1.32 $1.32 $1.27 $1.29 $1.41 $1.47 $1.51 $1.51 $2.47 $2.37 $2.21 $2.38 $2.82 $2.75 $2.75 $2.77 $2.85 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Six Months Ended 3/31/2024 Six Months Ended 3/31/2025 Adjusted Unit Margin Per Gallon Unit Price Per Gall
Slide 22: Market Leading Scale
22 A m er iG as 11% 8% 5% 4% 70% AmeriGas Ferrellgas Suburban Propane Superior Plus All Others • Market leading scale and efficiency • Largest pure-play propane provider with a national footprint • Drives operational efficiencies, cost leadership, and enhanced service reliability • Fragmented market
Slide 23: Experienced and Proven Management Team
23 A m er iG as Experienced and Proven Management Team Experienced and proven management team with strong track record of success, leading transformative strategies IV Name Biography Bob Flexon President and CEO, UGI ▪ Assumed the current role on November 1, 2024 ▪ Other current positions include Ch
Slide 24: Financial Overview
R Financial Overview
Slide 25: Commitment to Financial Discipline
25 A m er iG as Commitment to Financial Discipline Prioritizing debt repayment out of free cash flow and management of near-term maturity profile Commitment to targeting long-term leverage target of 4.0x - 4.5x No borrowings under existing Senior Secured Revolving Credit Facility as of 3/31/25, supp
Slide 26: Historical Performance
26 A m er iG as Historical Performance ($ in millions) Adjusted EBITDA 1 Capital Expenditures Source: Company Financials | 1 Adjusted EBITDA is a non-GAAP measure and is calculated in accordance with UGI’s reported segment information. See Appendix for reconciliation. | 2 Adjusted EBTIDA – Capital E
Slide 27: Historical Performance (cont'd)
27 A m er iG as $1.29 $1.41 $1.47 $1.47 FY2022 FY2023 FY2024 LTM 3/31/25 888 823 737 743 156 115 90 92 1,044 938 827 835 FY2022 FY2023 FY2024 LTM 3/31/25 Historical Performance (cont’d) Adjusted Total Margin 1 ($ in millions) Adjusted Unit Margin per Gallon 1 Source: Company Financials | 1 Adjusted
Slide 28: Closing Summary
28 A m er iG as Closing Summary Call Center Right Shoring Routing & Delivery Billing LPG Supply & Logistics Customer Value & Retention Core Focus Areaso AmeriGas Propane is laser-focused on reducing leverage and addressing maturity profile o Industry leader in scale and geographic and end-use divers
Slide 29: Q&A
R Q&A
Slide 30: Appendix
R Appendix
Slide 31: UGI Corporation Overview
31 A m er iG as 27% 12% 27% 34% UGI Corporation Overview Global LPGNatural Gas FY24 Reportable Segment EBIT Contribution 2 Utilities 2nd largest regulated gas utility in Pennsylvania (PA) 1 and largest regulated gas utility in West Virginia (WV) 1 benefiting from constructive regulatory environments
Slide 32: LPG Market Overview
32 A m er iG as Source: Wood Mackenzie and EIA. CY 2024 U.S. LPG Demand by Region CY 2024 U.S LPG Demand By End-Use U.S. Refined Products Demand (‘000 bbl/d) Commentary (‘000 bbl/d) LPG Market Overview 0 2,000 4,000 6,000 8,000 10,000 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 LPG G
Slide 33: Non-GAAP Reconciliations
33 A m er iG as Non-GAAP Reconciliations Source: Company Financials ($ in millions) Year Ended September 30, Adjusted EBITDA Reconciliation: 2022 2023 2024 LTM 3/31/25 2024 2025 Net income (loss) attributable to AmeriGas Partners, L.P. ($38) ($616) ($243) ($217) $142 $168 Add: Income tax expense 2 -
Slide 34: Non-GAAP Reconciliations (cont'd)
34 A m er iG as Non-GAAP Reconciliations (cont’d) Source: Company Financials ($ in millions) Year Ended September 30, Adjusted Total Margin: 2018 2019 2020 2021 2022 2023 2024 LTM 3/31/25 2024 2025 Total revenues $2,823 $2,682 $2,381 $2,614 $2,943 $2,581 $2,271 $2,322 $1,424 $1,475 Cost of sales - p
Slide 35: UGI Corporation – FY23 and FY24 Adjusted Diluted Earnings per Share
35 A m er iG as UGI Corporation 1 – FY23 and FY24 Adjusted Diluted Earnings per Share Source: UGI Corporation Financials | 1 UGI Corporation will not be a guarantor of, or otherwise provide support for, the Notes | 2 Corporate & Other includes certain adjustments made to our reporting segments in ar