CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
and MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
for the three months ended December 31, 2025 and 2024 (Unaudited)
TABLE OF CONTENTS
Pages
Glossary of Terms and Abbreviations 3
Financial Statements (unaudited):
4
Condensed Consolidated Balance Sheets as of December 31, 2025, September 30, 2025 and December 31,
2024
Condensed Consolidated Statements of Comprehensive Income for the three months ended December 31,
2025 and 2024 5
6
Condensed Consolidated Statements of Cash Flows for the three months ended December 31, 2025 and 2024
Condensed Consolidated Statements of Changes in Member's Equity for the three months ended
December 31, 2025 and 2024 7
Notes to Condensed Consolidated Financial Statements 8
Management's Discussion and Analysis of Financial Condition and Results of Operations 16
GLOSSARY OF TERMS AND ABBREVIATIONS
Terms and abbreviations used in this document are defined below:
UGI Energy Services and Related Entities
AmeriGas - AmeriGas Propane, L.P., an indirect wholly owned subsidiary of UGI Company - UGI Energy Services, LLC and its consolidated subsidiaries collectively Energy Services - UGI Energy Services, LLC, a wholly-owned subsidiary of Enterprises, or collectively, UGI Energy Services, LLC and its consolidated subsidiaries Enterprises - UGI Enterprises, LLC, a wholly owned subsidiary of UGI UGI - UGI Corporation UGI Utilities - UGI Utilities, Inc., a wholly owned subsidiary of UGI comprising PA Gas Utility and Electric UtilityOther Terms and Abbreviations
2025 Annual Report - Energy Services' Annual Report for the fiscal year ended September 30, 2025 2024 three-month period - Three months ended December 31, 2024 2025 three-month period - Three months ended December 31, 2025 AOCI - Accumulated Other Comprehensive Income (Loss) ASC - Accounting Standards Codification ASU - Accounting Standards Update Energy Services Credit Agreement - Revolving credit agreement entered into by Energy Services on March 6, 2020, as amended, scheduled to expire in May 2028 FASB - Financial Accounting Standards Board FERC - Federal Energy Regulatory Commission Fiscal 2026 - The fiscal year ending September 30, 2026 GAAP - U.S. generally accepted accounting principles ICE - Intercontinental Exchange LNG - Liquefied natural gas NPNS - Normal purchase and normal sale NYMEX - New York Mercantile Exchange Receivables Facility - A receivables purchase facility of Energy Services with an issuer of receivables-backed commercial paper RNG - Renewable natural gas SCAA - Storage Contract Administrative Agreement SOFR - Secured Overnight Financing Rate U.S. - United States of America USD - U.S. DollarCONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (Millions of dollars)
December 31, 2025 | September 30, 2025 | December 31, 2024 |
ASSETS | ||
Current assets: | ||
Cash and cash equivalents | $ 3 $ 8 | $ 68 |
Restricted cash | 11 3 | - |
Accounts receivable (less allowances for doubtful accounts of $2, $2 and $3, respectively) | 238 127 | 182 |
Inventories | 31 32 | 30 |
Derivative instruments | 9 21 | 17 |
Prepaid expenses and other current assets | 15 15 | 14 |
Total current assets | 307 206 | 311 |
Property, plant and equipment (less accumulated depreciation of $553, $533 and $477, respectively) | 1,981 1,984 | 1,957 |
Goodwill | 337 337 | 337 |
Intangible assets, net | 209 211 | 220 |
Derivative instruments | 7 5 | 13 |
Investments in equity method investees | 402 396 | 379 |
Other assets | 46 46 | 44 |
Total assets | $ 3,289 $ 3,185 | $ 3,261 |
LIABILITIES AND MEMBER'S EQUITY | ||
Current liabilities: | ||
Current maturities of long-term debt | $ 8 $ 8 | $ 8 |
Short-term borrowings | 22 17 | - |
Accounts payable | 158 81 | 123 |
Derivative instruments | 18 16 | 20 |
Other current liabilities | 38 68 | 41 |
Total current liabilities | 244 190 | 192 |
Long-term debt | 798 799 | 803 |
Deferred income taxes | 292 251 | 259 |
Derivative instruments | 2 2 | 9 |
Other noncurrent liabilities | 24 24 | 26 |
Total liabilities | 1,360 1,266 | 1,289 |
Member's equity | 1,929 1,919 | 1,972 |
Total liabilities and member's equity | $ 3,289 $ 3,185 | $ 3,261 |
See accompanying notes to condensed consolidated financial statements.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited) (Millions of dollars)
Three Months Ended
December 31, | ||
2025 | 2024 | |
Revenues | $ 427 $ | 366 |
Costs and expenses: | ||
Cost of sales (excluding depreciation and amortization shown below) | 290 | 170 |
Operating and administrative expenses | 35 | 29 |
Depreciation and amortization | 21 | 20 |
Other operating expense (income), net | (1) | (2) |
345 | 217 | |
Operating income | 82 | 149 |
Income (loss) from equity method investees | 4 | 4 |
Interest expense | (14) | (12) |
Income before income taxes | 72 | 141 |
Income tax benefit (expense) | (12) | 3 |
Net income | $ 60 | $ 144 |
Other comprehensive income: | ||
Net gains (losses) on derivative instruments (net of tax of $(1), $(3), respectively) | $ 1 | $ 7 |
Reclassifications of net (gains) losses on derivative instruments (net of tax of $0, $0 respectively) | (1) | (1) |
Other comprehensive income | - | 6 |
Comprehensive income | $ 60 | $ 150 |
See accompanying notes to condensed consolidated financial statements. | ||