Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
SlideShare a Scribd company logo

Investor Presentation

•
•
U
UGI_Corporation

UGI Corporation is a balanced growth and income investment. It has a diversified portfolio of businesses including domestic and international propane, midstream and marketing, and utilities. This provides multiple revenue streams and risk hedging. The company aims for 6-10% EPS growth and 4% dividend growth annually through operational excellence, investments, and acquisitions. Significant cash generation supports growth and a growing dividend. UGI pursues further growth through organic investments and acquisitions.

1 of 36
Investor Presentation August 2012 August 2012
About This Presentation This presentation contains forward-looking statements which 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. Among them are adverse weather conditions, cost volatility and availability of all energy products, including propane, natural gas, electricity and fuel oil, increased customer conservation measures, the impact of pending and future legal proceedings, domestic and international political, regulatory and economic conditions including currency exchange rate fluctuations (particularly the euro), the timing and development of Marcellus Shale gas production, the timing and success of our acquisitions, commercial initiatives, and investments to grow our business and our ability to successfully integrate acquired businesses and achieve anticipated synergies. You should read UGI’s Annual Report on Form 10-K for a more extensive list of factors that could affect results. UGI undertakes no obligation to release revisions to its forward-looking statements to reflect events or circumstances occurring after today. August 2012 2
Investment Highlights UGI Corporation is a balanced growth and income investment.  Diversified, balanced portfolio of businesses creates multiple revenue streams, synergies, and a natural risk hedge  Proven strategy for achieving explicit financial goals through operational excellence, sound investment, and acquisition integration  6% - 10% EPS growth target  4% dividend growth target (payout ratio 35-45%)  Significant cash generation offers balanced growth and income through a growing dividend and diversified investment opportunities  Generate $100M+ of investible cash annually  Uninterrupted dividends for 128 years  Dividend increases for 25 consecutive years  Pursuing accelerated growth through a combination of organic capital investments and M&A Earnings Growth Balanced Dividend Growth 13.2% 10-year CAGR growth and income 7.3% 10-year CAGR August 2012 3
About UGI Corporation UGI Corporation is a distributor and marketer of energy products and services.  NYSE: UGI  Headquarters: Valley Forge, PA  Market Cap: $3.4B (as of Aug 9)  FY11 Revenue: $6,091 million  FY11 Net Income: $232.9 million AmeriGas also operates in  Dividend Yield: 3.6% (as of Aug 9) Hawaii and Alaska Propane Gas & Electric Domestic International Midstream & Marketing UGI Utilities August 2012 4
Related and Complementary Businesses UGI Corporation as a whole is greater than the sum of its parts. Similar End Uses (heating, cooking, Similar Margin / commercial customer applications) pricing mix management (Residential and commercial) Common approach to Common Large number of hedging / risk small dollar management Attributes transactions Distribution / Common logistics businesses suppliers (via truck, Leverage (refiners, pipeline, wires) producers) intellectual capital or physical assets August 2012 5
Diversified Growth Opportunities UGI has a variety of initiatives in place to drive growth in all its businesses. 15 Bcf gas Heritage storage Gas gathering Propane / pipelines acquisition Cylinder exchange and Natural gas national peaking accounts Natural gas Energy marketing marketing Organic Incorporate growth Marcellus into opportunities Utilities supply Shell LPG Customer UGI Corp acquisitions conversions International Propane Domestic Propane Midstream & Marketing UGI Utilities August 2012 6
A Balanced Growth and Income Investment UGI Corporation has an established record of dividend and earnings growth. Adjusted EPS1 Growth Dividend Growth $2,40 $1,10 $2,20 $1,00 $2,00 $1,80 $0,90 $1,60 $0,80 $1,40 $1,20 $0,70 $1,00 $0,60 $0,80 $0,50 $0,60 $0,40 $0,40 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2006 2002 2003 2004 2005 2007 2008 2009 2010 2011 (1) See reconciliation of Adjusted EPS to GAAP EPS in Appendix 7 August 2012
Diversified Cash Flow and Earnings1 Cash Generation Earnings Generation $220MM to $275MM Domestic Domestic Propane Propane Utilities Utilities 20% 26% 29% 31% 15% 23% International International Propane 30% Propane 26% Midstream & Midstream & Marketing Marketing Cash available for growth after UGI dividends $120MM to $140MM (1) Forecasted multi-year averages 8 August 2012
Business Units Domestic Propane International Propane Midstream & Marketing UGI Utilities August 2012
Domestic Propane KEY STATS FINANCIAL OBJECTIVES  AmeriGas Partners, L.P. (NYSE: APU)  3% annual EBITDA increase  #1 propane distributor in U.S.  5% annual distributions increase  2 million customers  Growth opportunities:  Leading provider in a highly fragmented  AmeriGas cylinder exchange market  National accounts  Bolt-on acquisitions KEY INITIATIVES  Integration of Heritage Propane  Drive productivity and efficiency  World class safety performance August 2012 10
Domestic Propane: Heritage Acquisition Update  Targeting a minimum of $50 million total synergies by fiscal 20131  Creates a stronger, more diversified, propane company  Extends AmeriGas’s geographic coverage  Tangible benefits to shareholders:  AmeriGas increased its distribution by 5% at its board meeting in April, which resulted in an annualized distribution rate of $3.20 per limited unit  This followed the 3% distribution increase after the closing of the Heritage Propane acquisition in January  Integration progress ahead of schedule due to warm weather (1) Synergies are net of customer attrition and exclude transition expenses August 2012 11
International Propane KEY STATS FINANCIAL OBJECTIVES  Over 700 million gallons balanced  Cash generation from mature Western across cylinder, bulk, autogas, and European markets wholesale segments  Earnings growth from developing  Serving France, Scandinavia, Austria, Central European markets UK, and most of Central Europe  Deliver benefits of Shell acquisition  Recent €140 million Shell LPG acquisition in October 2011 KEY INITIATIVES  Completion of Shell LPG integration  Organic growth opportunities:  Centralized piped networks  Customer conversions (oil to propane)  Pursue bolt-on acquisitions August 2012 12
UGI Utilities KEY STATS FINANCIAL OBJECTIVES  Largest gas utility in PA; nearly 600,000  Growth of core customer base customers and 173 Bcf gas throughput  Manage expenses consistent with a  Small electric utility with 60,000 distribution company customers, integrated with gas utility  Periodic rate cases as appropriate operations  Modernized infrastructure (84% of gas mains of plastic or coated steel) KEY INITIATIVES  Customer conversions (primarily fuel oil to natural gas)  Accelerate infrastructure replacement  Integration of Marcellus Shale production into supply plan August 2012 13
UGI Utilities: Customer Conversions Heating Sources in 4.9M PA Homes1 Gas Conversions/Upgrades Other² 4,6%  Gas Utility grows core heating Electricity 19,5% customer base by 1% to 2% annually Fuel Utility gas  Average over 10,000 new Oil/Kerosene 53,0% 19,4% heating customers each year  Utility connected 10,500 Bottled, residential customers in FY11 tank, or LP gas 3,5%  Utility will add a record number of new gas heating customers New Customer Additions 14.000 this year primarily through 12.000 FY12 Forecast conversions from heating oil 10.000 8.000 6.000 4.000 2.000 0 New Home Construction Conversions/Upgrades (1) Source: U.S. Census Bureau, 2010 August 2012 14 (2) Other heat sources include coal, wood, solar, and no fuel
Midstream & Marketing KEY STATS OBJECTIVES  Marketing:  Optimizing returns using a broad base  Gas: 125 Bcf, 30,000+ locations of assets in our Mid-Atlantic footprint  Power: 2MM MWhr/8,000 locations  Link Marcellus producers to  Midstream assets: attractive gas markets  Auburn I gathering system  Investments in deliverability and  Nat gas peaking assets infrastructure  14.7 Bcf storage in NE PA  Build position as a leading gas/power  Electric generation: 125 MW combined marketer cycle gas, 102 MW coal-fired, 11 MW landfill, 6.5 MW solar KEY INITIATIVES  Hunlock restart in Q3 of FY12  1.0 Bcf LNG storage in service in Q4 of FY12  Auburn II and Commonwealth Pipelines August 2012 15
Auburn Pipeline Projects Auburn I (orange)  9 mile pipeline to deliver Marcellus gas north to Tennessee Interstate Pipeline  Announced: September 2010  Came online at full capacity in Feb, 2012  Investment: approximately $16 million  Volumes transported: 120,000 Dth/d Auburn II (red)  30 mile pipeline to extend Auburn south to Transco Pipeline  Announced: October 2011  Targeted completion date: Late 2013  Investment: approximately $150 million  Capacity: 200,000 to 300,000 Dth/d August 2012 16
Commonwealth Pipeline  Joint Development Agreement with affiliates of Inergy and WGL  200-mile FERC-regulated interstate pipeline  Connect markets in Philadelphia, Baltimore, and Washington, D.C. metro areas to Marcellus shale gas  Will cross and interconnect with several interstate pipelines, resulting in even greater supply diversity  Capacity: 800,000 Dth/d  Approximate cost is $1.0 billion, funded equally by the sponsors  Currently negotiating precedent agreements with target customers August 2012 17
Diversified Growth Opportunities Earnings contribution Integration period Capital investment 2012 2013 2014 2015 2016 Propane Intl Shell LPG Acquisitions Propane Dom Heritage acquisition 15 Bcf gas storage LNG Expansion Midstream & Marketing Auburn I pipeline Auburn II pipeline Commonwealth pipeline Hunlock plant Utilities Conversions from oil to natural gas August 2012 18
Focus on Risk Management Ability to Invest Wisely  Investments consistent with our vision  Active business development teams in each business unit  Investment parameters set in advance to exceed WACC Commodity Prices  Hedge all known commodity price commitments  Hedge currency risk of propane costs  Limit credit risk and supplier risk across counterparties  Tight control of working capital Regulatory Changes  A management team accustomed to working with regulators Weather  Geographic diversification  Use of demand charges and other fixed fees Disciplined Financial Management August 2012 19
Investment Highlights UGI Corporation is a balanced growth and income investment.  Diversified, balanced portfolio of businesses creates multiple revenue streams, synergies, and a natural risk hedge  Proven strategy for achieving explicit financial goals through operational excellence, sound investment, and acquisition integration  6% - 10% EPS growth target  4% dividend growth target (payout ratio 35-45%)  Significant cash generation offers balanced growth and income through a growing dividend and diversified investment opportunities  Generate $100M+ of investible cash annually  Uninterrupted dividends for 128 years  Dividend increases for 25 consecutive years  Pursuing accelerated growth through a combination of organic capital investments and M&A Earnings Growth Balanced Dividend Growth 13.2% 10-year CAGR growth and income 7.3% 10-year CAGR August 2012 20
Contact P.O. Box 858 Valley Forge, PA 19482 Tel: 610-337-1000 www.ugicorp.com Treasurer Hugh Gallagher (x1029) gallagherh@ugicorp.com Investor Relations Simon Bowman (x3645) bowmans@ugicorp.com Finance Assistant Shelly Oates (x3202) oatess@ugicorp.com August 2012
Supplemental Data August 2012
UGI Corporation EPS Reconciliation UGI Reconciliation of Adjusted EPS to GAAP EPS (millions of dollars) 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 GAAP N et Income $232.9 $261.0 $258.5 $215.5 $204.3 $176.2 $187.5 $111.6 $ 98.9 $ 75.5 Adjust ment s: Cumulat ive effect of change in account ing Loss on early ext inguishment of debt at AmeriGas (10.3) (4.6) (9.4) (0.9) (0.2) Loss from discont inuance of cash flow hedge account ing at AmeriGas (3.3) Gain on sale of 50% ownership of Energy Vent ure 5.3 Gains from sale of AmeriGas st orage t erminals 10.4 12.5 Gain from sale of At lant ic Energy LLC - UGI Energy Services 17.2 Adjust ed N et Income $243.2 $247.1 $248.1 $215.5 $191.8 $175.5 $196.9 $111.6 $ 99.8 $ 75.7 GAAP EPS $2.06 $2.36 $2.36 $1.99 $1.89 $1.65 $1.77 $1.15 $1.14 $0.90 Adjust ed EPS $2.15 $2.24 $2.27 $1.99 $1.78 $1.64 $1.86 $1.15 $1.15 $0.90 Dilut ed Shares Out st anding 112.9 110.5 109.3 108.5 107.9 106.7 105.7 96.7 86.5 83.8 August 2012 23
Common Stock Data UGI Common Stock Data Year Ended Sept ember 30, 2011 2010 2009 2008 2007 2006 St ockholders' equit y - end of year (millions) $ 1,977.7 $ 1,824.5 $ 1,591.4 $ 1,417.7 $ 1,321.9 $ 1,099.6 Shares out st anding - end of year (millions) 111.9 110.4 108.7 107.9 106.6 105.5 Average shares out st anding (millions) 111.7 109.6 108.5 107.4 106.5 105.5 Ret urn on average common equit y 12.3% 15.3% 17.2% 15.7% 16.9% 16.8% Per common share: Book value - end of year $ 17.67 $ 16.53 $ 14.64 $ 13.14 $ 12.40 $ 10.42 Dividends paid $ 1.01 $ 0.85 $ 0.78 $ 0.75 $ 0.71 $ 0.68 Annual dividend rat e - end of year $ 1.04 $ 1.00 $ 0.80 $ 0.77 $ 0.74 $ 0.71 Dividend yield - end of year 4.0% 3.5% 3.2% 3.0% 2.8% 2.9% Price range: High $ 33.53 $ 29.00 $ 27.38 $ 28.87 $ 29.63 $ 28.64 Low $ 25.81 $ 23.18 $ 18.69 $ 23.99 $ 22.75 $ 20.21 Close $ 26.27 $ 28.61 $ 25.06 $ 25.78 $ 25.98 $ 24.45 August 2012 24
AmeriGas Partners Financial Data AmeriGas Financial Data: Year Ended Sept ember 30, (millions of dollars, except where ot herwise indicat ed) 2011 2010 2009 2008 2007 2006 Income Statement - AmeriGas Propane Revenues $ 2,538.0 $ 2,320.3 $ 2,260.1 $ 2,815.2 $ 2,277.4 $ 2,119.3 Cost of sales (1,605.3) (1,395.1) (1,316.5) (1,908.3) (1,437.2) (1,343.8) T ot al Margin 932.7 925.2 943.6 906.9 840.2 775.5 Operat ing expenses (620.6) (609.7) (615.1) (610.5) (562.5) (535.2) Depreciat ion and amort izat ion (94.7) (87.4) (83.9) (80.4) (75.6) (72.5) Gain on sale of st orage facilit y - - 39.9 - 46.1 - Ot her income, net 25.6 7.7 16.0 18.9 17.6 16.3 Operat ing income 242.9 235.8 300.5 234.9 265.8 184.1 Int erest expense (63.5) (65.1) (70.3) (72.9) (71.5) (74.1) Loss on ext inguishment of debt (38.1) - - - - (17.1) Income before income t axes 141.3 170.7 230.2 162.0 194.3 92.9 Income t axes - AmeriGas Propane, Inc. and Subsidiaries (1) (26.4) (32.3) (41.6) (29.7) (35.8) (16.5) N oncont rolling int erest s (2) (75.0) (91.1) (123.6) (88.4) (105.3) (51.3) N et income at t ribut able t o UGI $ 39.9 $ 47.3 $ 65.0 $ 43.9 $ 53.2 $ 25.1 Balance Sheet- AmeriGas Propane T ot al asset s $ 1,800.4 $ 1,690.9 $ 1,647.7 $ 1,722.8 $ 1,708.4 $ 1,627.2 Propert y, plant and equipment , net 645.8 642.8 628.9 616.8 634.0 580.6 Goodwill 696.3 683.1 670.1 645.2 645.1 619.1 Debt : Bank loans 95.5 91.0 - - - - Long-t erm debt 933.5 791.4 865.6 933.4 933.1 933.7 T ot al debt 1,029.0 882.4 865.6 933.4 933.1 933.7 (1) Primarily t axes relat ed t o t he general part ner's ownership int erest s in t he Part nership. (2) T he general public's int erest s in AmeriGas Part ners, L.P. August 2012 25
AmeriGas Partners EBITDA Reconciliation AmeriGas Partners, L.P. Reconciliation of Adjusted EBITDA (millions of dollars) 2011 2010 2009 2008 2007 2006 2005 2004 2003 N et income at t ribut able t o AmeriGas Part ners, L.P. 1 $ 138.5 $ 165.3 $ 224.6 $ 158.0 $ 190.8 $ 91.1 $ 60.8 $ 91.8 72.0 Income t ax expense 0.4 3.2 2.6 1.7 0.8 0.2 1.5 0.3 0.6 Int erest expense 63.5 65.1 70.4 72.9 71.5 74.1 79.9 83.2 87.2 Depreciat ion and amort izat ion 94.7 87.4 83.8 80.4 75.6 72.5 73.6 80.6 74.6 EBIT DA 297.1 321.0 381.4 313.0 338.7 237.9 215.8 255.9 234.4 Add back: Loss on ext inguishment of debt 38.1 17.1 33.6 3.0 Exclude: Gain on sale of st orage facilit y (39.9) (46.1) Add back: Lit igat ion reserve adjust ment 12.2 Exclude: Cumulat ive effect of account ing changes 7.0 Adjust ed EBIT DA $ 335.2 $ 340.2 $ 341.5 $ 313.0 $ 292.6 $ 255.0 $ 249.4 $ 255.9 $ 237.4 1 Periods prior to 2008 have been restated to conform to current presentation August 2012 26
AmeriGas Partners Cash Flow Reconciliation AmeriGas Partners, L.P. Historical Distributable Cash Flow Reconciliation Year Ended Sept ember 30, ($ in millions) 2011 2010 2009 2008 2007 2006 N et Cash Provided by Operat ing Act ivit ies $ 188.9 $ 218.8 $ 367.5 $ 180.2 $ 207.1 $ 179.5 Exclude the impact of working capital changes: Accounts Receivable 65.6 47.9 (74.1) 51.3 17.1 21.0 Inventories 20.5 24.6 (57.8) 19.0 18.8 9.0 Accounts Payable (25.7) (15.6) 58.1 (8.1) (17.8) (7.6) Collateral Deposits - - (17.8) 17.8 - - Other Current Assets (2.9) 4.4 (16.2) 5.3 (0.3) (15.1) Other Current Liabilities 37.4 (10.5) 21.6 (10.4) 12.3 - Provision for Uncollectible Accounts (12.8) (12.5) (9.3) (15.9) (9.5) (10.8) Other cash flows from operating activities, net 2.8 (2.1) (0.3) 1.4 (4.9) 6.0 Dist ribut able cash flow before capit al expendit ures 273.8 254.9 271.5 240.7 222.9 182.2 Capit al Expendit ures: Growth (39.0) (42.1) (41.2) (33.7) (46.6) (47.1) Maintenance (38.2) (41.1) (37.5) (29.1) (27.2) (23.6) Expendit ures for propert y, plant and equipment (77.2) (83.2) (78.7) (62.8) (73.8) (70.7) Dist ribut able cash flow 1 $ 235.6 $ 213.8 $ 234.0 $ 211.6 $ 195.7 $ 158.6 Divided by: Distributions paid $ 171.8 $ 161.6 $ 165.3 $ 144.7 $ 154.7 $ 130.8 Equals: Dist ribut ion Coverage 1.4x 1.3x 1.4x 1.5x 1.3x 1.2x Dist ribut ion rat e per limit ed part ner unit - end of year $ 2.96 $ 2.82 $ 2.68 $ 2.56 $ 2.44 $ 2.32 1 Distributable cash flow before capital expenditures less maintenance capital expenditures August 2012 27
AmeriGas Supplemental Information: Footnotes  The enclosed supplemental information contains a reconciliation of Earnings before interest expense, income taxes, depreciation and amortization ("EBITDA"), Adjusted EBITDA to Net Income and Distributable Cash Flow to Cash Flow from Operations.  EBITDA, Adjusted EBITDA and Distributable Cash Flow are not measures of performance or financial condition under accounting principles generally accepted in the United States ("GAAP"). Management believes EBITDA, Adjusted EBITDA and Distributable Cash Flow are meaningful non-GAAP financial measures used by investors to (1) compare the Partnership's operating performance with that of other companies within the propane industry and (2) assess the Partnership’s ability to pay distributions and meet its loan covenants. The Partnership's definitions of EBITDA, Adjusted EBITDA and Distributable Cash Flow may be different from those used by other companies.  EBITDA and Adjusted EBITDA should not be considered as alternatives to net income (loss) attributable to AmeriGas Partners, L.P. Management uses EBITDA to compare year-over-year profitability of the business without regard to capital structure as well as to compare the relative performance of the Partnership to that of other master limited partnerships without regard to their financing methods, capital structure, income taxes or historical cost basis. Management uses Adjusted EBITDA to exclude from AmeriGas Partners’ EBITDA gains and losses that competitors do not necessarily have to provide additional insight into the comparison of year-over-year profitability to that of other master limited partnerships. In view of the omission of interest, income taxes, depreciation and amortization from EBITDA and Adjusted EBITDA, management also assesses the profitability of the business by comparing net income attributable to AmeriGas Partners, L.P. for the relevant years. Management also uses EBITDA to assess the Partnership's profitability because its parent, UGI Corporation, uses the Partnership's EBITDA to assess the profitability of the Partnership, which is one of UGI Corporation’s industry segments. UGI Corporation discloses the Partnership's EBITDA in its disclosures about its industry segments as the profitability measure for its domestic propane segment.  Distributable cash flow as defined herein should not be considered an alternative to cash flows from operating activities or any other measure of financial performance calculated in accordance with generally accepted accounting principles as those items are used to measure operating performance, liquidity, or the ability to service debt obligations. Management believes that distributable cash flow provides additional information for evaluating our ability to declare and pay distributions to unitholders. August 2012 28
AmeriGas Operating Statistics O perating Statistics - AmeriGas Year Ended Sept ember 30, 2011 2010 2009 2008 2007 2006 AmeriGas Propane Ret ail sales - millions of gallons Resident ial 344.0 358.7 380.6 399.0 400.1 378.6 Commercial / Indust rial 330.0 330.4 339.9 354.5 358.1 343.2 Mot or Fuel 123.1 117.9 116.0 141.7 143.3 147.8 Agricult ural 37.4 44.6 44.4 47.3 52.9 52.0 T ransport 39.7 41.9 47.3 50.7 52.3 53.6 T ot al 874.2 893.4 928.2 993.2 1,006.7 975.2 W holesale sales - millions of gallons 124.8 129.2 119.7 111.2 117.4 119.7 Degree days - percent of normal 99% 98% 97% 97% 93% 90% N umber of employees 5,800 5,800 5,950 5,888 6,218 5,895 August 2012 29
International Propane: Income Statement International Propane Income Statement Data: Year Ended September 30, (millions of dollars, except where otherwise indicated) 2011 2010 2009 2008 2007 2006 Income Statement Revenues $ 1,488.7 $ 1,059.5 $ 955.3 $ 1,124.8 $ 800.4 $ 945.5 Cost of sales (970.8) (582.1) (429.5) (651.9) (388.6) (517.2) T otal Margin 517.9 477.4 525.8 472.9 411.8 428.3 O perating expenses, net of other income (361.2) (300.0) (317.9) (311.4) (272.4) (266.9) Depreciation and amortization (70.6) (60.4) (56.5) (54.7) (44.9) (42.1) O perating income 86.1 117.0 151.4 106.8 94.5 119.3 Loss from equity investees (0.9) (2.1) (3.1) (2.9) (3.8) (2.2) Interest expense (28.2) (25.4) (26.6) (29.7) (25.2) (24.8) Income before income taxes 57.0 89.5 121.7 74.2 65.5 92.3 Income taxes (15.7) (30.4) (43.7) (20.7) (19.2) (28.2) N oncontrolling interests (0.3) (0.3) 0.3 (1.2) (1.4) 3.0 N et income attributable to UGI $ 41.0 $ 58.8 $ 78.3 $ 52.3 $ 44.9 $ 67.1 August 2012 30
International Propane: Summary Financial Data International Propane Summary Financial Data: Year Ended September 30, (millions of dollars, except where otherwise indicated) 2011 2010 2009 2008 2007 2006 Revenues: Antargaz $ 1,050.6 $ 887.1 $ 837.7 $ 1,062.6 $ 759.2 $ 881.9 Flaga and other 438.1 172.4 117.6 62.2 41.2 63.6 T otal revenues $ 1,488.7 $ 1,059.5 $ 955.3 $ 1,124.8 $ 800.4 $ 945.5 T otal assets: Antargaz $ 1,636.6 $ 1,678.3 $ 1,705.6 $ 1,673.2 $ 1,648.9 $ 1,406.8 Flaga and other 428.8 320.2 260.1 196.8 196.8 183.4 T otal assets 2,065.4 1,998.5 1,965.7 1,870.0 1,845.7 1,590.2 Capital expenditures: Antargaz $ (48.9) $ (51.4) $ (70.5) $ (70.7) $ (61.8) $ (47.9) Flaga and other (16.5) (7.6) (5.8) (4.3) (2.5) (7.6) T otal capital expenditures $ (65.4) $ (59.0) $ (76.3) $ (75.0) $ (64.3) $ (55.5) Other financial information EBIT DA $ 155.5 $ 175.0 $ 205.1 $ 157.4 $ 134.2 $ 162.2 Investments in equity investees 0.3 0.4 3.0 63.1 63.9 58.2 Goodwill 674.0 689.7 717.3 667.9 676.6 601.6 Debt: Bank loans 18.9 92.4 9.1 79.4 8.9 9.4 Long-term debt 571.3 561.1 613.8 589.5 605.2 547.0 T otal debt $ 590.2 $ 653.5 $ 622.9 $ 668.9 $ 614.1 $ 556.4 August 2012 31
International Propane: Operating Statistics O perating Statistics - International Propane Year Ended Sept ember 30, 2011 2010 2009 2008 2007 2006 Ant argaz sales volumes - millions of gallons 270.5 279.9 289.3 292.6 269.1 315.2 Flaga sales volumes - millions of gallons 159.2 70.4 68.5 72.7 55.8 65.0 Ant argaz degree days - percent of normal 92% 99% 97% 96% 79% 96% Flaga degree days - percent of normal 95% 99% 91% 95% 78% 96% Ant argaz - number of employees 980 950 1,050 1,070 1,121 1,133 Flaga - number of employees 850 850 615 631 658 700 August 2012 32
UGI Utilities: Summary Financial Data UGI Utilities Financial Data: Year Ended September 30, (millions of dollars) 2011 2010 2009 2008 2007 2006 Income Statement Revenues $ 1,137.4 $ 1,169.5 $ 1,381.3 $ 1,289.1 $ 1,183.3 $ 822.0 Cost of sales (678.5) (730.5) (944.8) (920.4) (816.5) (573.9) T otal Margin 458.9 439.0 436.5 368.7 366.8 248.1 O perating expenses (189.0) (183.7) (206.2) (158.9) (151.6) (106.8) T axes other than income taxes (16.6) (18.6) (16.9) (18.3) (17.7) (14.3) Depreciation and amortization (52.5) (53.5) (51.1) (41.4) (40.9) (26.6) O ther income, net 10.8 6.3 7.2 12.9 8.5 4.5 O perating income 211.4 189.5 169.5 163.0 165.1 104.9 Interest expense (42.7) (42.3) (43.9) (39.1) (42.3) (24.4) Income before income taxes 168.7 147.2 125.6 123.9 122.8 80.5 Income taxes (63.5) (56.9) (46.9) (49.9) (48.6) (31.9) N et income attributable to UGI $ 105.2 $ 90.3 $ 78.7 $ 74.0 $ 74.2 $ 48.6 August 2012 33
UGI Utilities: Summary Financial Data (cont.) UGI Utilities Financial Data (continued): Year Ended Sept ember 30, (millions of dollars) 2011 2010 2009 2008 2007 2006 Revenues by segment: Gas Ut ilit y $ 1,026.4 $ 1,047.5 $ 1,241.0 $ 1,138.4 $ 1,045.0 $ 724.0 Elect ric Ut ilit y 109.1 120.2 138.5 139.2 121.9 98.0 Ot her and eliminat ions 1.8 1.8 1.8 11.5 16.4 - T ot al revenues $ 1,137.4 $ 1,169.5 $ 1,381.3 $ 1,289.1 $ 1,183.3 $ 822.0 T otal assets by segment: Gas Ut ilit y $ 2,028.7 $ 1,996.3 $ 1,915.9 $ 1,582.4 $ 1,530.4 $ 1,504.4 Elect ric Ut ilit y 140.6 143.3 113.2 112.1 110.1 105.3 Ot her and eliminat ions - - 1.1 - 8.5 - T ot al asset s 2,169.3 2,139.6 2,030.2 1,694.5 1,649.0 1,609.7 Capital expenditures by segment: Gas Ut ilit y $ (91.3) $ (73.5) $ (73.8) $ (58.3) $ (66.2) $ (49.2) Elect ric Ut ilit y (7.5) (8.1) (5.3) (6.1) (7.2) (9.0) Ot her and eliminat ions - - - - - - T ot al capit al expendit ures $ (98.9) $ (81.6) $ (79.1) $ (64.4) $ (73.4) $ (58.2) O ther financial information: Acquisit ions of businesses, net of cash acquired $ - $ - $ (292.6) $ - $ 23.7 $ (585.2) Proceeds from sale of Penn Fuel Propane - - 32.3 - - - Dividends paid t o UGI (99.5) (74.0) (61.2) (68.8) (40.0) (37.6) Propert y, plant and equipment , net 1,418.4 1,382.0 1,364.8 1,106.9 1,083.9 1,050.8 Goodwill 182.1 180.1 180.1 161.7 162.3 182.9 Debt : Bank Loans - 17.0 154.0 57.0 190.0 216.0 Long-t erm debt 640.0 640.0 640.0 532.0 512.0 512.0 T ot al debt 640.0 657.0 794.0 589.0 702.0 728.0 August 2012 34
UGI Utilities: Operating Statistics O perating Statistics - Utilities Year Ended Sept ember 30, 2011 2010 2009 2008 2007 2006 Degree days - percent of normal 104% 95% 104% 95% 95% 91% Miles of gas dist ribut ion main 12,200 11,900 11,900 7,867 7,800 7,700 Miles of elect ric dist ribut ion line 2,100 2,120 2,150 2,164 2,164 2,150 N umber of employees 1,400 1,400 1,430 1,210 1,238 1,433 Gas Ut ilit y syst em t hroughput - millions of cubic feet Resident ial - firm 42,968 38,810 42,999 35,320 35,820 19,330 Commercial - firm 16,003 17,154 21,057 17,735 18,377 11,361 Indust rial - firm 1,111 1,343 1,707 1,579 1,685 1,347 T ransport at ion - firm 64,811 56,044 51,676 40,628 42,065 23,747 T ransport at ion - int errupt ible 48,228 40,448 31,918 37,577 33,198 26,292 Ret ail - int errupt ible 48 92 344 907 640 561 T ot al 173,169 153,891 149,701 133,746 131,785 82,638 Elect ric dist ribut ion syst em sales - t housands of kilowat t hours Resident ial 547,823 528,165 520,558 526,819 534,714 530,129 Commercial 332,734 331,031 332,453 347,272 348,875 348,059 Indust rial and ot her 114,137 113,380 112,709 130,330 127,032 126,854 T ot al 994,694 972,576 965,720 1,004,421 1,010,621 1,005,042 August 2012 35
Energy Services: Summary Financial Data Energy Services Financial Data: Year Ended September 30, (millions of dollars) 2011 2010 2009 2008 2007 2006 Income Statement Revenues $ 1,059.7 $ 1,145.9 $ 1,224.7 $ 1,619.5 $ 1,336.1 $ 1,414.3 Cost of sales (920.0) (1,010.7) (1,098.5) (1,495.4) (1,235.2) (1,328.2) T otal Margin 139.7 135.2 126.2 124.1 100.9 86.1 O perating expenses, net of other income (48.8) (7.5) (52.9) (39.8) (36.6) (26.3) Depreciation and amortization (8.0) (7.7) (8.5) (7.0) (6.9) (6.7) O perating income 82.9 120.0 64.8 77.3 57.4 53.1 Interest expense (2.7) (0.2) - - - - Income before income taxes 80.2 119.8 64.8 77.3 57.4 53.1 Income taxes (27.7) (51.6) (26.7) (32.0) (22.9) (21.8) N et income attributable to UGI (*) $ 52.5 $ 68.2 $ 38.1 $ 45.3 $ 34.5 $ 31.3 Other financial information T otal capital expenditures $ (112.8) $ (116.4) $ (66.2) $ (30.7) $ (10.7) $ (7.0) T otal assets 580.7 450.8 344.1 312.3 254.9 238.5 (*) Includes after tax gain from the sale of Atlantic Energy of $17.2 August 2012 36

More Related Content

Investor Presentation

  • 1. Investor Presentation August 2012 August 2012
  • 2. About This Presentation This presentation contains forward-looking statements which 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. Among them are adverse weather conditions, cost volatility and availability of all energy products, including propane, natural gas, electricity and fuel oil, increased customer conservation measures, the impact of pending and future legal proceedings, domestic and international political, regulatory and economic conditions including currency exchange rate fluctuations (particularly the euro), the timing and development of Marcellus Shale gas production, the timing and success of our acquisitions, commercial initiatives, and investments to grow our business and our ability to successfully integrate acquired businesses and achieve anticipated synergies. You should read UGI’s Annual Report on Form 10-K for a more extensive list of factors that could affect results. UGI undertakes no obligation to release revisions to its forward-looking statements to reflect events or circumstances occurring after today. August 2012 2
  • 3. Investment Highlights UGI Corporation is a balanced growth and income investment.  Diversified, balanced portfolio of businesses creates multiple revenue streams, synergies, and a natural risk hedge  Proven strategy for achieving explicit financial goals through operational excellence, sound investment, and acquisition integration  6% - 10% EPS growth target  4% dividend growth target (payout ratio 35-45%)  Significant cash generation offers balanced growth and income through a growing dividend and diversified investment opportunities  Generate $100M+ of investible cash annually  Uninterrupted dividends for 128 years  Dividend increases for 25 consecutive years  Pursuing accelerated growth through a combination of organic capital investments and M&A Earnings Growth Balanced Dividend Growth 13.2% 10-year CAGR growth and income 7.3% 10-year CAGR August 2012 3
  • 4. About UGI Corporation UGI Corporation is a distributor and marketer of energy products and services.  NYSE: UGI  Headquarters: Valley Forge, PA  Market Cap: $3.4B (as of Aug 9)  FY11 Revenue: $6,091 million  FY11 Net Income: $232.9 million AmeriGas also operates in  Dividend Yield: 3.6% (as of Aug 9) Hawaii and Alaska Propane Gas & Electric Domestic International Midstream & Marketing UGI Utilities August 2012 4
  • 5. Related and Complementary Businesses UGI Corporation as a whole is greater than the sum of its parts. Similar End Uses (heating, cooking, Similar Margin / commercial customer applications) pricing mix management (Residential and commercial) Common approach to Common Large number of hedging / risk small dollar management Attributes transactions Distribution / Common logistics businesses suppliers (via truck, Leverage (refiners, pipeline, wires) producers) intellectual capital or physical assets August 2012 5
  • 6. Diversified Growth Opportunities UGI has a variety of initiatives in place to drive growth in all its businesses. 15 Bcf gas Heritage storage Gas gathering Propane / pipelines acquisition Cylinder exchange and Natural gas national peaking accounts Natural gas Energy marketing marketing Organic Incorporate growth Marcellus into opportunities Utilities supply Shell LPG Customer UGI Corp acquisitions conversions International Propane Domestic Propane Midstream & Marketing UGI Utilities August 2012 6
  • 7. A Balanced Growth and Income Investment UGI Corporation has an established record of dividend and earnings growth. Adjusted EPS1 Growth Dividend Growth $2,40 $1,10 $2,20 $1,00 $2,00 $1,80 $0,90 $1,60 $0,80 $1,40 $1,20 $0,70 $1,00 $0,60 $0,80 $0,50 $0,60 $0,40 $0,40 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2006 2002 2003 2004 2005 2007 2008 2009 2010 2011 (1) See reconciliation of Adjusted EPS to GAAP EPS in Appendix 7 August 2012
  • 8. Diversified Cash Flow and Earnings1 Cash Generation Earnings Generation $220MM to $275MM Domestic Domestic Propane Propane Utilities Utilities 20% 26% 29% 31% 15% 23% International International Propane 30% Propane 26% Midstream & Midstream & Marketing Marketing Cash available for growth after UGI dividends $120MM to $140MM (1) Forecasted multi-year averages 8 August 2012
  • 9. Business Units Domestic Propane International Propane Midstream & Marketing UGI Utilities August 2012
  • 10. Domestic Propane KEY STATS FINANCIAL OBJECTIVES  AmeriGas Partners, L.P. (NYSE: APU)  3% annual EBITDA increase  #1 propane distributor in U.S.  5% annual distributions increase  2 million customers  Growth opportunities:  Leading provider in a highly fragmented  AmeriGas cylinder exchange market  National accounts  Bolt-on acquisitions KEY INITIATIVES  Integration of Heritage Propane  Drive productivity and efficiency  World class safety performance August 2012 10
  • 11. Domestic Propane: Heritage Acquisition Update  Targeting a minimum of $50 million total synergies by fiscal 20131  Creates a stronger, more diversified, propane company  Extends AmeriGas’s geographic coverage  Tangible benefits to shareholders:  AmeriGas increased its distribution by 5% at its board meeting in April, which resulted in an annualized distribution rate of $3.20 per limited unit  This followed the 3% distribution increase after the closing of the Heritage Propane acquisition in January  Integration progress ahead of schedule due to warm weather (1) Synergies are net of customer attrition and exclude transition expenses August 2012 11
  • 12. International Propane KEY STATS FINANCIAL OBJECTIVES  Over 700 million gallons balanced  Cash generation from mature Western across cylinder, bulk, autogas, and European markets wholesale segments  Earnings growth from developing  Serving France, Scandinavia, Austria, Central European markets UK, and most of Central Europe  Deliver benefits of Shell acquisition  Recent €140 million Shell LPG acquisition in October 2011 KEY INITIATIVES  Completion of Shell LPG integration  Organic growth opportunities:  Centralized piped networks  Customer conversions (oil to propane)  Pursue bolt-on acquisitions August 2012 12
  • 13. UGI Utilities KEY STATS FINANCIAL OBJECTIVES  Largest gas utility in PA; nearly 600,000  Growth of core customer base customers and 173 Bcf gas throughput  Manage expenses consistent with a  Small electric utility with 60,000 distribution company customers, integrated with gas utility  Periodic rate cases as appropriate operations  Modernized infrastructure (84% of gas mains of plastic or coated steel) KEY INITIATIVES  Customer conversions (primarily fuel oil to natural gas)  Accelerate infrastructure replacement  Integration of Marcellus Shale production into supply plan August 2012 13
  • 14. UGI Utilities: Customer Conversions Heating Sources in 4.9M PA Homes1 Gas Conversions/Upgrades Other² 4,6%  Gas Utility grows core heating Electricity 19,5% customer base by 1% to 2% annually Fuel Utility gas  Average over 10,000 new Oil/Kerosene 53,0% 19,4% heating customers each year  Utility connected 10,500 Bottled, residential customers in FY11 tank, or LP gas 3,5%  Utility will add a record number of new gas heating customers New Customer Additions 14.000 this year primarily through 12.000 FY12 Forecast conversions from heating oil 10.000 8.000 6.000 4.000 2.000 0 New Home Construction Conversions/Upgrades (1) Source: U.S. Census Bureau, 2010 August 2012 14 (2) Other heat sources include coal, wood, solar, and no fuel
  • 15. Midstream & Marketing KEY STATS OBJECTIVES  Marketing:  Optimizing returns using a broad base  Gas: 125 Bcf, 30,000+ locations of assets in our Mid-Atlantic footprint  Power: 2MM MWhr/8,000 locations  Link Marcellus producers to  Midstream assets: attractive gas markets  Auburn I gathering system  Investments in deliverability and  Nat gas peaking assets infrastructure  14.7 Bcf storage in NE PA  Build position as a leading gas/power  Electric generation: 125 MW combined marketer cycle gas, 102 MW coal-fired, 11 MW landfill, 6.5 MW solar KEY INITIATIVES  Hunlock restart in Q3 of FY12  1.0 Bcf LNG storage in service in Q4 of FY12  Auburn II and Commonwealth Pipelines August 2012 15
  • 16. Auburn Pipeline Projects Auburn I (orange)  9 mile pipeline to deliver Marcellus gas north to Tennessee Interstate Pipeline  Announced: September 2010  Came online at full capacity in Feb, 2012  Investment: approximately $16 million  Volumes transported: 120,000 Dth/d Auburn II (red)  30 mile pipeline to extend Auburn south to Transco Pipeline  Announced: October 2011  Targeted completion date: Late 2013  Investment: approximately $150 million  Capacity: 200,000 to 300,000 Dth/d August 2012 16
  • 17. Commonwealth Pipeline  Joint Development Agreement with affiliates of Inergy and WGL  200-mile FERC-regulated interstate pipeline  Connect markets in Philadelphia, Baltimore, and Washington, D.C. metro areas to Marcellus shale gas  Will cross and interconnect with several interstate pipelines, resulting in even greater supply diversity  Capacity: 800,000 Dth/d  Approximate cost is $1.0 billion, funded equally by the sponsors  Currently negotiating precedent agreements with target customers August 2012 17
  • 18. Diversified Growth Opportunities Earnings contribution Integration period Capital investment 2012 2013 2014 2015 2016 Propane Intl Shell LPG Acquisitions Propane Dom Heritage acquisition 15 Bcf gas storage LNG Expansion Midstream & Marketing Auburn I pipeline Auburn II pipeline Commonwealth pipeline Hunlock plant Utilities Conversions from oil to natural gas August 2012 18
  • 19. Focus on Risk Management Ability to Invest Wisely  Investments consistent with our vision  Active business development teams in each business unit  Investment parameters set in advance to exceed WACC Commodity Prices  Hedge all known commodity price commitments  Hedge currency risk of propane costs  Limit credit risk and supplier risk across counterparties  Tight control of working capital Regulatory Changes  A management team accustomed to working with regulators Weather  Geographic diversification  Use of demand charges and other fixed fees Disciplined Financial Management August 2012 19
  • 20. Investment Highlights UGI Corporation is a balanced growth and income investment.  Diversified, balanced portfolio of businesses creates multiple revenue streams, synergies, and a natural risk hedge  Proven strategy for achieving explicit financial goals through operational excellence, sound investment, and acquisition integration  6% - 10% EPS growth target  4% dividend growth target (payout ratio 35-45%)  Significant cash generation offers balanced growth and income through a growing dividend and diversified investment opportunities  Generate $100M+ of investible cash annually  Uninterrupted dividends for 128 years  Dividend increases for 25 consecutive years  Pursuing accelerated growth through a combination of organic capital investments and M&A Earnings Growth Balanced Dividend Growth 13.2% 10-year CAGR growth and income 7.3% 10-year CAGR August 2012 20
  • 21. Contact P.O. Box 858 Valley Forge, PA 19482 Tel: 610-337-1000 www.ugicorp.com Treasurer Hugh Gallagher (x1029) gallagherh@ugicorp.com Investor Relations Simon Bowman (x3645) bowmans@ugicorp.com Finance Assistant Shelly Oates (x3202) oatess@ugicorp.com August 2012
  • 23. UGI Corporation EPS Reconciliation UGI Reconciliation of Adjusted EPS to GAAP EPS (millions of dollars) 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 GAAP N et Income $232.9 $261.0 $258.5 $215.5 $204.3 $176.2 $187.5 $111.6 $ 98.9 $ 75.5 Adjust ment s: Cumulat ive effect of change in account ing Loss on early ext inguishment of debt at AmeriGas (10.3) (4.6) (9.4) (0.9) (0.2) Loss from discont inuance of cash flow hedge account ing at AmeriGas (3.3) Gain on sale of 50% ownership of Energy Vent ure 5.3 Gains from sale of AmeriGas st orage t erminals 10.4 12.5 Gain from sale of At lant ic Energy LLC - UGI Energy Services 17.2 Adjust ed N et Income $243.2 $247.1 $248.1 $215.5 $191.8 $175.5 $196.9 $111.6 $ 99.8 $ 75.7 GAAP EPS $2.06 $2.36 $2.36 $1.99 $1.89 $1.65 $1.77 $1.15 $1.14 $0.90 Adjust ed EPS $2.15 $2.24 $2.27 $1.99 $1.78 $1.64 $1.86 $1.15 $1.15 $0.90 Dilut ed Shares Out st anding 112.9 110.5 109.3 108.5 107.9 106.7 105.7 96.7 86.5 83.8 August 2012 23
  • 24. Common Stock Data UGI Common Stock Data Year Ended Sept ember 30, 2011 2010 2009 2008 2007 2006 St ockholders' equit y - end of year (millions) $ 1,977.7 $ 1,824.5 $ 1,591.4 $ 1,417.7 $ 1,321.9 $ 1,099.6 Shares out st anding - end of year (millions) 111.9 110.4 108.7 107.9 106.6 105.5 Average shares out st anding (millions) 111.7 109.6 108.5 107.4 106.5 105.5 Ret urn on average common equit y 12.3% 15.3% 17.2% 15.7% 16.9% 16.8% Per common share: Book value - end of year $ 17.67 $ 16.53 $ 14.64 $ 13.14 $ 12.40 $ 10.42 Dividends paid $ 1.01 $ 0.85 $ 0.78 $ 0.75 $ 0.71 $ 0.68 Annual dividend rat e - end of year $ 1.04 $ 1.00 $ 0.80 $ 0.77 $ 0.74 $ 0.71 Dividend yield - end of year 4.0% 3.5% 3.2% 3.0% 2.8% 2.9% Price range: High $ 33.53 $ 29.00 $ 27.38 $ 28.87 $ 29.63 $ 28.64 Low $ 25.81 $ 23.18 $ 18.69 $ 23.99 $ 22.75 $ 20.21 Close $ 26.27 $ 28.61 $ 25.06 $ 25.78 $ 25.98 $ 24.45 August 2012 24
  • 25. AmeriGas Partners Financial Data AmeriGas Financial Data: Year Ended Sept ember 30, (millions of dollars, except where ot herwise indicat ed) 2011 2010 2009 2008 2007 2006 Income Statement - AmeriGas Propane Revenues $ 2,538.0 $ 2,320.3 $ 2,260.1 $ 2,815.2 $ 2,277.4 $ 2,119.3 Cost of sales (1,605.3) (1,395.1) (1,316.5) (1,908.3) (1,437.2) (1,343.8) T ot al Margin 932.7 925.2 943.6 906.9 840.2 775.5 Operat ing expenses (620.6) (609.7) (615.1) (610.5) (562.5) (535.2) Depreciat ion and amort izat ion (94.7) (87.4) (83.9) (80.4) (75.6) (72.5) Gain on sale of st orage facilit y - - 39.9 - 46.1 - Ot her income, net 25.6 7.7 16.0 18.9 17.6 16.3 Operat ing income 242.9 235.8 300.5 234.9 265.8 184.1 Int erest expense (63.5) (65.1) (70.3) (72.9) (71.5) (74.1) Loss on ext inguishment of debt (38.1) - - - - (17.1) Income before income t axes 141.3 170.7 230.2 162.0 194.3 92.9 Income t axes - AmeriGas Propane, Inc. and Subsidiaries (1) (26.4) (32.3) (41.6) (29.7) (35.8) (16.5) N oncont rolling int erest s (2) (75.0) (91.1) (123.6) (88.4) (105.3) (51.3) N et income at t ribut able t o UGI $ 39.9 $ 47.3 $ 65.0 $ 43.9 $ 53.2 $ 25.1 Balance Sheet- AmeriGas Propane T ot al asset s $ 1,800.4 $ 1,690.9 $ 1,647.7 $ 1,722.8 $ 1,708.4 $ 1,627.2 Propert y, plant and equipment , net 645.8 642.8 628.9 616.8 634.0 580.6 Goodwill 696.3 683.1 670.1 645.2 645.1 619.1 Debt : Bank loans 95.5 91.0 - - - - Long-t erm debt 933.5 791.4 865.6 933.4 933.1 933.7 T ot al debt 1,029.0 882.4 865.6 933.4 933.1 933.7 (1) Primarily t axes relat ed t o t he general part ner's ownership int erest s in t he Part nership. (2) T he general public's int erest s in AmeriGas Part ners, L.P. August 2012 25
  • 26. AmeriGas Partners EBITDA Reconciliation AmeriGas Partners, L.P. Reconciliation of Adjusted EBITDA (millions of dollars) 2011 2010 2009 2008 2007 2006 2005 2004 2003 N et income at t ribut able t o AmeriGas Part ners, L.P. 1 $ 138.5 $ 165.3 $ 224.6 $ 158.0 $ 190.8 $ 91.1 $ 60.8 $ 91.8 72.0 Income t ax expense 0.4 3.2 2.6 1.7 0.8 0.2 1.5 0.3 0.6 Int erest expense 63.5 65.1 70.4 72.9 71.5 74.1 79.9 83.2 87.2 Depreciat ion and amort izat ion 94.7 87.4 83.8 80.4 75.6 72.5 73.6 80.6 74.6 EBIT DA 297.1 321.0 381.4 313.0 338.7 237.9 215.8 255.9 234.4 Add back: Loss on ext inguishment of debt 38.1 17.1 33.6 3.0 Exclude: Gain on sale of st orage facilit y (39.9) (46.1) Add back: Lit igat ion reserve adjust ment 12.2 Exclude: Cumulat ive effect of account ing changes 7.0 Adjust ed EBIT DA $ 335.2 $ 340.2 $ 341.5 $ 313.0 $ 292.6 $ 255.0 $ 249.4 $ 255.9 $ 237.4 1 Periods prior to 2008 have been restated to conform to current presentation August 2012 26
  • 27. AmeriGas Partners Cash Flow Reconciliation AmeriGas Partners, L.P. Historical Distributable Cash Flow Reconciliation Year Ended Sept ember 30, ($ in millions) 2011 2010 2009 2008 2007 2006 N et Cash Provided by Operat ing Act ivit ies $ 188.9 $ 218.8 $ 367.5 $ 180.2 $ 207.1 $ 179.5 Exclude the impact of working capital changes: Accounts Receivable 65.6 47.9 (74.1) 51.3 17.1 21.0 Inventories 20.5 24.6 (57.8) 19.0 18.8 9.0 Accounts Payable (25.7) (15.6) 58.1 (8.1) (17.8) (7.6) Collateral Deposits - - (17.8) 17.8 - - Other Current Assets (2.9) 4.4 (16.2) 5.3 (0.3) (15.1) Other Current Liabilities 37.4 (10.5) 21.6 (10.4) 12.3 - Provision for Uncollectible Accounts (12.8) (12.5) (9.3) (15.9) (9.5) (10.8) Other cash flows from operating activities, net 2.8 (2.1) (0.3) 1.4 (4.9) 6.0 Dist ribut able cash flow before capit al expendit ures 273.8 254.9 271.5 240.7 222.9 182.2 Capit al Expendit ures: Growth (39.0) (42.1) (41.2) (33.7) (46.6) (47.1) Maintenance (38.2) (41.1) (37.5) (29.1) (27.2) (23.6) Expendit ures for propert y, plant and equipment (77.2) (83.2) (78.7) (62.8) (73.8) (70.7) Dist ribut able cash flow 1 $ 235.6 $ 213.8 $ 234.0 $ 211.6 $ 195.7 $ 158.6 Divided by: Distributions paid $ 171.8 $ 161.6 $ 165.3 $ 144.7 $ 154.7 $ 130.8 Equals: Dist ribut ion Coverage 1.4x 1.3x 1.4x 1.5x 1.3x 1.2x Dist ribut ion rat e per limit ed part ner unit - end of year $ 2.96 $ 2.82 $ 2.68 $ 2.56 $ 2.44 $ 2.32 1 Distributable cash flow before capital expenditures less maintenance capital expenditures August 2012 27
  • 28. AmeriGas Supplemental Information: Footnotes  The enclosed supplemental information contains a reconciliation of Earnings before interest expense, income taxes, depreciation and amortization ("EBITDA"), Adjusted EBITDA to Net Income and Distributable Cash Flow to Cash Flow from Operations.  EBITDA, Adjusted EBITDA and Distributable Cash Flow are not measures of performance or financial condition under accounting principles generally accepted in the United States ("GAAP"). Management believes EBITDA, Adjusted EBITDA and Distributable Cash Flow are meaningful non-GAAP financial measures used by investors to (1) compare the Partnership's operating performance with that of other companies within the propane industry and (2) assess the Partnership’s ability to pay distributions and meet its loan covenants. The Partnership's definitions of EBITDA, Adjusted EBITDA and Distributable Cash Flow may be different from those used by other companies.  EBITDA and Adjusted EBITDA should not be considered as alternatives to net income (loss) attributable to AmeriGas Partners, L.P. Management uses EBITDA to compare year-over-year profitability of the business without regard to capital structure as well as to compare the relative performance of the Partnership to that of other master limited partnerships without regard to their financing methods, capital structure, income taxes or historical cost basis. Management uses Adjusted EBITDA to exclude from AmeriGas Partners’ EBITDA gains and losses that competitors do not necessarily have to provide additional insight into the comparison of year-over-year profitability to that of other master limited partnerships. In view of the omission of interest, income taxes, depreciation and amortization from EBITDA and Adjusted EBITDA, management also assesses the profitability of the business by comparing net income attributable to AmeriGas Partners, L.P. for the relevant years. Management also uses EBITDA to assess the Partnership's profitability because its parent, UGI Corporation, uses the Partnership's EBITDA to assess the profitability of the Partnership, which is one of UGI Corporation’s industry segments. UGI Corporation discloses the Partnership's EBITDA in its disclosures about its industry segments as the profitability measure for its domestic propane segment.  Distributable cash flow as defined herein should not be considered an alternative to cash flows from operating activities or any other measure of financial performance calculated in accordance with generally accepted accounting principles as those items are used to measure operating performance, liquidity, or the ability to service debt obligations. Management believes that distributable cash flow provides additional information for evaluating our ability to declare and pay distributions to unitholders. August 2012 28
  • 29. AmeriGas Operating Statistics O perating Statistics - AmeriGas Year Ended Sept ember 30, 2011 2010 2009 2008 2007 2006 AmeriGas Propane Ret ail sales - millions of gallons Resident ial 344.0 358.7 380.6 399.0 400.1 378.6 Commercial / Indust rial 330.0 330.4 339.9 354.5 358.1 343.2 Mot or Fuel 123.1 117.9 116.0 141.7 143.3 147.8 Agricult ural 37.4 44.6 44.4 47.3 52.9 52.0 T ransport 39.7 41.9 47.3 50.7 52.3 53.6 T ot al 874.2 893.4 928.2 993.2 1,006.7 975.2 W holesale sales - millions of gallons 124.8 129.2 119.7 111.2 117.4 119.7 Degree days - percent of normal 99% 98% 97% 97% 93% 90% N umber of employees 5,800 5,800 5,950 5,888 6,218 5,895 August 2012 29
  • 30. International Propane: Income Statement International Propane Income Statement Data: Year Ended September 30, (millions of dollars, except where otherwise indicated) 2011 2010 2009 2008 2007 2006 Income Statement Revenues $ 1,488.7 $ 1,059.5 $ 955.3 $ 1,124.8 $ 800.4 $ 945.5 Cost of sales (970.8) (582.1) (429.5) (651.9) (388.6) (517.2) T otal Margin 517.9 477.4 525.8 472.9 411.8 428.3 O perating expenses, net of other income (361.2) (300.0) (317.9) (311.4) (272.4) (266.9) Depreciation and amortization (70.6) (60.4) (56.5) (54.7) (44.9) (42.1) O perating income 86.1 117.0 151.4 106.8 94.5 119.3 Loss from equity investees (0.9) (2.1) (3.1) (2.9) (3.8) (2.2) Interest expense (28.2) (25.4) (26.6) (29.7) (25.2) (24.8) Income before income taxes 57.0 89.5 121.7 74.2 65.5 92.3 Income taxes (15.7) (30.4) (43.7) (20.7) (19.2) (28.2) N oncontrolling interests (0.3) (0.3) 0.3 (1.2) (1.4) 3.0 N et income attributable to UGI $ 41.0 $ 58.8 $ 78.3 $ 52.3 $ 44.9 $ 67.1 August 2012 30
  • 31. International Propane: Summary Financial Data International Propane Summary Financial Data: Year Ended September 30, (millions of dollars, except where otherwise indicated) 2011 2010 2009 2008 2007 2006 Revenues: Antargaz $ 1,050.6 $ 887.1 $ 837.7 $ 1,062.6 $ 759.2 $ 881.9 Flaga and other 438.1 172.4 117.6 62.2 41.2 63.6 T otal revenues $ 1,488.7 $ 1,059.5 $ 955.3 $ 1,124.8 $ 800.4 $ 945.5 T otal assets: Antargaz $ 1,636.6 $ 1,678.3 $ 1,705.6 $ 1,673.2 $ 1,648.9 $ 1,406.8 Flaga and other 428.8 320.2 260.1 196.8 196.8 183.4 T otal assets 2,065.4 1,998.5 1,965.7 1,870.0 1,845.7 1,590.2 Capital expenditures: Antargaz $ (48.9) $ (51.4) $ (70.5) $ (70.7) $ (61.8) $ (47.9) Flaga and other (16.5) (7.6) (5.8) (4.3) (2.5) (7.6) T otal capital expenditures $ (65.4) $ (59.0) $ (76.3) $ (75.0) $ (64.3) $ (55.5) Other financial information EBIT DA $ 155.5 $ 175.0 $ 205.1 $ 157.4 $ 134.2 $ 162.2 Investments in equity investees 0.3 0.4 3.0 63.1 63.9 58.2 Goodwill 674.0 689.7 717.3 667.9 676.6 601.6 Debt: Bank loans 18.9 92.4 9.1 79.4 8.9 9.4 Long-term debt 571.3 561.1 613.8 589.5 605.2 547.0 T otal debt $ 590.2 $ 653.5 $ 622.9 $ 668.9 $ 614.1 $ 556.4 August 2012 31
  • 32. International Propane: Operating Statistics O perating Statistics - International Propane Year Ended Sept ember 30, 2011 2010 2009 2008 2007 2006 Ant argaz sales volumes - millions of gallons 270.5 279.9 289.3 292.6 269.1 315.2 Flaga sales volumes - millions of gallons 159.2 70.4 68.5 72.7 55.8 65.0 Ant argaz degree days - percent of normal 92% 99% 97% 96% 79% 96% Flaga degree days - percent of normal 95% 99% 91% 95% 78% 96% Ant argaz - number of employees 980 950 1,050 1,070 1,121 1,133 Flaga - number of employees 850 850 615 631 658 700 August 2012 32
  • 33. UGI Utilities: Summary Financial Data UGI Utilities Financial Data: Year Ended September 30, (millions of dollars) 2011 2010 2009 2008 2007 2006 Income Statement Revenues $ 1,137.4 $ 1,169.5 $ 1,381.3 $ 1,289.1 $ 1,183.3 $ 822.0 Cost of sales (678.5) (730.5) (944.8) (920.4) (816.5) (573.9) T otal Margin 458.9 439.0 436.5 368.7 366.8 248.1 O perating expenses (189.0) (183.7) (206.2) (158.9) (151.6) (106.8) T axes other than income taxes (16.6) (18.6) (16.9) (18.3) (17.7) (14.3) Depreciation and amortization (52.5) (53.5) (51.1) (41.4) (40.9) (26.6) O ther income, net 10.8 6.3 7.2 12.9 8.5 4.5 O perating income 211.4 189.5 169.5 163.0 165.1 104.9 Interest expense (42.7) (42.3) (43.9) (39.1) (42.3) (24.4) Income before income taxes 168.7 147.2 125.6 123.9 122.8 80.5 Income taxes (63.5) (56.9) (46.9) (49.9) (48.6) (31.9) N et income attributable to UGI $ 105.2 $ 90.3 $ 78.7 $ 74.0 $ 74.2 $ 48.6 August 2012 33
  • 34. UGI Utilities: Summary Financial Data (cont.) UGI Utilities Financial Data (continued): Year Ended Sept ember 30, (millions of dollars) 2011 2010 2009 2008 2007 2006 Revenues by segment: Gas Ut ilit y $ 1,026.4 $ 1,047.5 $ 1,241.0 $ 1,138.4 $ 1,045.0 $ 724.0 Elect ric Ut ilit y 109.1 120.2 138.5 139.2 121.9 98.0 Ot her and eliminat ions 1.8 1.8 1.8 11.5 16.4 - T ot al revenues $ 1,137.4 $ 1,169.5 $ 1,381.3 $ 1,289.1 $ 1,183.3 $ 822.0 T otal assets by segment: Gas Ut ilit y $ 2,028.7 $ 1,996.3 $ 1,915.9 $ 1,582.4 $ 1,530.4 $ 1,504.4 Elect ric Ut ilit y 140.6 143.3 113.2 112.1 110.1 105.3 Ot her and eliminat ions - - 1.1 - 8.5 - T ot al asset s 2,169.3 2,139.6 2,030.2 1,694.5 1,649.0 1,609.7 Capital expenditures by segment: Gas Ut ilit y $ (91.3) $ (73.5) $ (73.8) $ (58.3) $ (66.2) $ (49.2) Elect ric Ut ilit y (7.5) (8.1) (5.3) (6.1) (7.2) (9.0) Ot her and eliminat ions - - - - - - T ot al capit al expendit ures $ (98.9) $ (81.6) $ (79.1) $ (64.4) $ (73.4) $ (58.2) O ther financial information: Acquisit ions of businesses, net of cash acquired $ - $ - $ (292.6) $ - $ 23.7 $ (585.2) Proceeds from sale of Penn Fuel Propane - - 32.3 - - - Dividends paid t o UGI (99.5) (74.0) (61.2) (68.8) (40.0) (37.6) Propert y, plant and equipment , net 1,418.4 1,382.0 1,364.8 1,106.9 1,083.9 1,050.8 Goodwill 182.1 180.1 180.1 161.7 162.3 182.9 Debt : Bank Loans - 17.0 154.0 57.0 190.0 216.0 Long-t erm debt 640.0 640.0 640.0 532.0 512.0 512.0 T ot al debt 640.0 657.0 794.0 589.0 702.0 728.0 August 2012 34
  • 35. UGI Utilities: Operating Statistics O perating Statistics - Utilities Year Ended Sept ember 30, 2011 2010 2009 2008 2007 2006 Degree days - percent of normal 104% 95% 104% 95% 95% 91% Miles of gas dist ribut ion main 12,200 11,900 11,900 7,867 7,800 7,700 Miles of elect ric dist ribut ion line 2,100 2,120 2,150 2,164 2,164 2,150 N umber of employees 1,400 1,400 1,430 1,210 1,238 1,433 Gas Ut ilit y syst em t hroughput - millions of cubic feet Resident ial - firm 42,968 38,810 42,999 35,320 35,820 19,330 Commercial - firm 16,003 17,154 21,057 17,735 18,377 11,361 Indust rial - firm 1,111 1,343 1,707 1,579 1,685 1,347 T ransport at ion - firm 64,811 56,044 51,676 40,628 42,065 23,747 T ransport at ion - int errupt ible 48,228 40,448 31,918 37,577 33,198 26,292 Ret ail - int errupt ible 48 92 344 907 640 561 T ot al 173,169 153,891 149,701 133,746 131,785 82,638 Elect ric dist ribut ion syst em sales - t housands of kilowat t hours Resident ial 547,823 528,165 520,558 526,819 534,714 530,129 Commercial 332,734 331,031 332,453 347,272 348,875 348,059 Indust rial and ot her 114,137 113,380 112,709 130,330 127,032 126,854 T ot al 994,694 972,576 965,720 1,004,421 1,010,621 1,005,042 August 2012 35
  • 36. Energy Services: Summary Financial Data Energy Services Financial Data: Year Ended September 30, (millions of dollars) 2011 2010 2009 2008 2007 2006 Income Statement Revenues $ 1,059.7 $ 1,145.9 $ 1,224.7 $ 1,619.5 $ 1,336.1 $ 1,414.3 Cost of sales (920.0) (1,010.7) (1,098.5) (1,495.4) (1,235.2) (1,328.2) T otal Margin 139.7 135.2 126.2 124.1 100.9 86.1 O perating expenses, net of other income (48.8) (7.5) (52.9) (39.8) (36.6) (26.3) Depreciation and amortization (8.0) (7.7) (8.5) (7.0) (6.9) (6.7) O perating income 82.9 120.0 64.8 77.3 57.4 53.1 Interest expense (2.7) (0.2) - - - - Income before income taxes 80.2 119.8 64.8 77.3 57.4 53.1 Income taxes (27.7) (51.6) (26.7) (32.0) (22.9) (21.8) N et income attributable to UGI (*) $ 52.5 $ 68.2 $ 38.1 $ 45.3 $ 34.5 $ 31.3 Other financial information T otal capital expenditures $ (112.8) $ (116.4) $ (66.2) $ (30.7) $ (10.7) $ (7.0) T otal assets 580.7 450.8 344.1 312.3 254.9 238.5 (*) Includes after tax gain from the sale of Atlantic Energy of $17.2 August 2012 36