Slide 1: 2015 Q3 Earnings Conference Call
August 4, 2015 2015 Q3 Earnings Conference Call August 4, 2015
Slide 2: About This Presentation
August 4, 2015 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 control
Slide 3: Presenters: John Walsh, Kirk Oliver, Jerry Sheridan
August 4, 2015 John Walsh President & CEO, UGI Kirk Oliver Chief Financial Officer, UGI Jerry Sheridan President & CEO, AmeriGas
Slide 4: 2015 Q3 Results
August 4, 2015 4 $0.03 $0.10 $0.00 $0.04 $0.08 $0.12 Q3-15 Adjusted EPS Q3-14 Adjusted EPS • Q3-15 GAAP EPS was $0.05 • Q3-15 Adjusted EPS includes $0.06 loss related to impact of the Totalgaz acquisition • Expect FY Adjusted EPS at lower end of updated guidance of $2.00 – $2.10 • In-line with last
Slide 5: Market Update
August 4, 2015 5 Market Update • Demand for natural gas continues to grow • Pipeline capacity will remain constrained in medium-term due to “infrastructure gap” • Conversion activity remains strong as Gas Utility has added ~14,000 new heating customers YTD • AmeriGas National Accounts volume continu
Slide 6: Kirk Oliver, Chief Financial Officer
August 4, 2015 Kirk Oliver Chief Financial Officer
Slide 7: 2015 Q3 Financial Results
August 4, 2015 7 2015 Q3 Financial Results Three Months Ended June 30, 2015 2014 Adjusted diluted earnings per share: UGI Corporation earnings per share - diluted $ 0.05 $ 0.12 Net after-tax (gains) losses on commodity derivative instruments not associated with current period transactions (1) (2) (0
Slide 8: FY Q3 Weather vs. Normal
August 4, 2015 8 -18.5% -23.7% -2.0% -22.2% -9.3% -19.8% -15.5% -6.3% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 2015 2014 Antargaz Flaga Gas Utility AmeriGas COL D E R W A R M E R * HDD = Percent change in Heating Degree Days versus prior year FY Q3 Weather vs. Normal (10%)
Slide 9: AmeriGas
August 4, 2015 9 7.2 (5.7) (0.2) -$2 $0 $2 $4 $6 $8 $10 2014 Q3 Retail Propane Wholesale / Ancillary Sales & Svces Misc. Income Opex & Other D&A 2015 Q3 Operating Income, $ MM (0.1) (2.3) Opex includes all operating expenses, net of miscellaneous income. Excludes impact of mark-to-market changes in
Slide 10: UGI International
August 4, 2015 10 UGI International MARGIN Warmer weather than prior year at Antargaz Higher local currency gross margin Weaker Euro and British Pound Sterling OPEX Expenses related to acquisition of Totalgaz Weaker Euro and British Pound Sterling INTEREST EXPENSE Interest rate derivativ
Slide 11: Gas Utility
August 4, 2015 11 Gas Utility MARGIN Warmer Weather Customer Growth OPEX Higher distribution system maintenance Higher general and administrative expenses Higher depreciation expense OTHER Incremental margin from construction services * Opex includes all operating expenses, net of miscel
Slide 12: Midstream & Marketing
August 4, 2015 12 25.6 $0 $5 $10 $15 $20 $25 $30 2014 Q3 Natural Gas and Retail Power Marketing Capacity Management Retail Power Opex & Other D&A 2015 Q3 Income Before Taxes, $ MM Midstream & Marketing MARGIN Higher natural gas and retail power margin Lower capacity management margin due to lowe
Slide 13: Liquidity and Guidance
August 4, 2015 13 Liquidity and Guidance Total AmeriGas UGI International Utilities Midstream & Marketing Corporate & Other Cash on Hand $385.9 $16.2 $275.8 $16.5 $16.3 $61.1 Revolving Credit Facilities $525.0 $68.6 $300.0 $240.0 NA Accounts Rec ivable Facility NA NA NA 42.9 NA Drawn on Facilities 4
Slide 14: Jerry Sheridan, CEO of AmeriGas
August 4, 2015 Jerry Sheridan CEO of AmeriGas
Slide 15: Q3 Adjusted EBITDA
August 4, 2015 15 Q3 Adjusted EBITDA * See appendix for Adjusted EBITDA reconciliation $49 $55 $0 $20 $40 $60 Q3 2015 Q3 2014 Adjusted EBITDA*, $ Millions
Slide 16: Operational Highlights
August 4, 2015 16 • Weather was 18% warmer than normal and 10% warmer than the prior year while retail volume was 6% lower than the prior year • Cylinder exchange volume declined 2% as the quarter was the second wettest on record • Despite impact of weather, National Accounts volume up substantially
Slide 17: Operational Highlights
August 4, 2015 17 • Unit margin expanded $0.04 as propane prices were 56% lower than the prior year • Operating expenses 1% lower than last year as vehicle fuel was 30% less expensive • YTD completed 7 acquisitions • FY15 guidance range $635-645mm Operational Highlights
Slide 18: John Walsh, President & CEO
August 4, 2015 John Walsh President & CEO
Slide 19: Operational Highlights
August 4, 2015 19 Operational Highlights Totalgaz Acquisition • Closed on May 29, 2015 • Business focused on integration LNG Peaking Activities • Dramatic increase in peak demand • Transport, Marine, and Distributed Generation are new demand segments • Announced $60 million Manning LNG facility in M
Slide 20: In Conclusion
August 4, 2015 20 In Conclusion • Strong YTD performance demonstrates value of balanced portfolio • Focused on delivering outstanding customer service and operational efficiency • Significant progress on organic investments and M&A • Continued opportunities due to growth of natural gas demand and th
Slide 21: Q&A
August 4, 2015 Q&A
Slide 22: Appendix
August 4, 2015 Appendix
Slide 23: Growth Summary
August 4, 2015 23 Pipeline Projects Expected In- Service Date (Calendar Year) Capital Cost Peaking Projects International Acquisitions Description $80mm PennEast $200mm1 Nov 2017 117 miles; 1 bcf/day Sunbury $160mm Early 2017 35 miles; 200,000 Dth/day Auburn Loop 9 mile loop; 150,000 Dth/day Fall 20
Slide 24: UGI Supplemental Information: Footnotes
August 4, 2015 24 UGI Supplemental Information: Footnotes Management uses "adjusted net income attributable to UGI" and "adjusted diluted earnings per share," both of which are non-GAAP financial measures, when evaluating UGI's overall performance. Adjusted net income attributable to UGI is net in
Slide 25: Adjusted Net Income and EPS
August 4, 2015 25 Adjusted Net Income and EPS Three Months Ended Nine Months Ended June 30, June 30, 2015 2014 Adjusted net income attributable to UGI Corporation: Net income attributable to UGI Corporation 9.6$ 20.6$ Net after-tax (gains) losses on commodity derivative instruments not associated wi
Slide 26: AmeriGas Supplemental Information: Footnotes
August 4, 2015 26 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 measure
Slide 27: AmeriGas Partners EBITDA Reconciliation
August 4, 2015 27 AmeriGas Partners EBITDA Reconciliation 2015 2014 EBITDA and Adjusted EBITDA: Net (loss) income attributable to AmeriGas Partners, L.P. (25,578)$ (37,761)$ Income tax expense 802 847 Interest expense 40,274 41,328 Depreciation 37,370 37,069 Amortization 10,666 10,788 EBITDA 63,534
Slide 28: AmeriGas Partners Adj. EBITDA Guidance Reconciliation
August 4, 2015 28 AmeriGas Partners Adj. EBITDA Guidance Reconciliation Forecast Fiscal Year Ending September 30, 2015 Adjusted net income attributable to AmeriGas Partners, L.P. (estimate) (d) 280,000$ Interest expense (estimate) 163,000 Income tax expense (estimate) 4,000 Depreciation (estimate) 1
Slide 29: Investor Relations
August 4, 2015 Investor Relations: Will Ruthrauff 610-456-6571 ruthrauffw@ugicorp.com