UGI Corporation (NYSE: UGI) today reported financial results for
the fiscal quarter ended December 31, 2024.
HIGHLIGHTS
- Q1 GAAP diluted EPS of $1.74 and adjusted diluted EPS of $1.37
compared to GAAP diluted EPS of $0.44 and adjusted diluted EPS of
$1.20 in the prior-year period.
- Q1 reportable segments earnings before interest expense and
income taxes1 ("EBIT") of $420 million compared to $425 million in
the prior-year period.
- Available liquidity of approximately $1.5 billion as of
December 31, 2024.
- Filed a gas base rate case for UGI Utilities with the PA Public
Utility Commission on January 27, 2025, requesting an overall
distribution rate increase of approximately $110 million.
- On February 5, 2025, AmeriGas Partners, L.P. and AmeriGas
Finance Corp issued a notice of redemption to fully redeem their
outstanding 2025 Senior Notes. The redemption will be funded by a
two-year unsecured intercompany loan between UGI International and
AmeriGas, which AmeriGas expects to repay using its free cash
flow.
"Disciplined execution within our natural gas and international
propane businesses along with a renewed focus on the operational
performance at AmeriGas led to a 14% increase in adjusted diluted
EPS over the prior year," said Bob Flexon, President and Chief
Executive Officer. "Our natural gas businesses benefited from
strong gas demand and higher gas rates at the West Virginia gas
utility, while our Global LPG businesses realized relatively
comparable volumes and reduced operating and administrative
expenses when compared to the prior-year period. The solid
underlying performance by our reportable segments, coupled with
benefits from our continuing tax planning strategies, led to the
strong fiscal first quarter results."
"At UGI, we are strengthening our foundation through renewed
focus on our people and culture, and driving operational
improvements, particularly at AmeriGas Propane where we must
significantly enhance our business processes, commercial practices,
and service quality. These operational improvements along with
disciplined capital allocation, strategic portfolio optimization,
and strong balance sheet management will better position UGI to
deliver consistent growth and greater value for its
shareholders."
EARNINGS CALL AND WEBCAST
UGI Corporation will hold a live Internet Audio Webcast of its
conference call to discuss the quarterly earnings and other current
activities at 9:00 AM ET on Thursday, February 6, 2025. Interested
parties may listen to the audio webcast both live and in replay on
the Internet at
https://www.ugicorp.com/investors/financial-reports/presentations
or by visiting the company website https://www.ugicorp.com and
clicking on Investors and then Presentations. A replay of the
webcast will be available after the event through to 11:59 PM ET
February 5, 2026.
ABOUT UGI
UGI Corporation (NYSE: UGI) is a distributor and marketer of
energy products and services in the US and Europe. UGI offers safe,
reliable, affordable, and sustainable energy solutions to customers
through its subsidiaries, which provide natural gas transmission
and distribution, electric generation and distribution, midstream
services, propane distribution, renewable natural gas generation,
distribution and marketing, and energy marketing services.
Comprehensive information about UGI Corporation is available on
the Internet at https://www.ugicorp.com.
USE OF NON-GAAP MEASURES
Management uses "adjusted net income attributable to UGI
Corporation" and "adjusted diluted earnings per share," both of
which are non-GAAP financial measures, when evaluating UGI's
overall performance. Management believes that these non-GAAP
measures provide meaningful information to investors about UGI’s
performance because they eliminate the impacts of (1) gains and
losses on commodity and certain foreign currency derivative
instruments not associated with current-period transactions and (2)
other significant discrete items that can affect the comparison of
period-over-period results. Volatility in net income attributable
to UGI can occur as a result of gains and losses on commodity and
certain foreign currency derivative instruments not associated with
current-period transactions but included in earnings in accordance
with U.S. generally accepted accounting principles ("GAAP").
Non-GAAP financial measures are not in accordance with, or an
alternative to, GAAP and should be considered in addition to, and
not as a substitute for, the comparable GAAP measures.
The tables on the last page of this press release reconcile net
income attributable to UGI Corporation, the most directly
comparable GAAP measure, to adjusted net income attributable to UGI
Corporation, and diluted earnings per share, the most comparable
GAAP measure, to adjusted diluted earnings per share, to reflect
the adjustments referred to above.
1 Reportable segments' EBIT represents an aggregate of our
reportable operating segment level EBIT, as determined in
accordance with GAAP.
USE OF FORWARD-LOOKING STATEMENTS
This press release contains statements, estimates and
projections that are forward-looking statements (as defined in
Section 21E of the Securities Exchange Act of 1934, as amended, and
Section 27A of the Securities Act of 1933, as amended). Such
statements use forward-looking words such as “believe,” “plan,”
“anticipate,” “continue,” “estimate,” “expect,” “may,” or other
similar words and terms of similar meaning, although not all
forward-looking statements contain such words. These statements
discuss plans, strategies, events or developments that we expect or
anticipate will or may occur in the future. Management believes
that these are 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; accordingly, there is no assurance that results will be
realized. You should read UGI’s Annual Report on Form 10-K for a
more extensive list of factors that could affect results. We
undertake no obligation (and expressly disclaim any obligation) to
update publicly any forward-looking statement, whether as a result
of new information or future events, except as required by the
federal securities laws.
SEGMENT RESULTS ($ in millions, except where otherwise
indicated)
Utilities
For the fiscal quarter ended December
31,
2024
2023
(Decrease) Increase
Revenues
$
485
$
493
$
(8
)
(2
)%
Total margin (a)
$
274
$
265
$
9
3
%
Operating and administrative expenses
$
91
$
88
$
3
3
%
Operating income
$
138
$
134
$
4
3
%
Earnings before interest expense and
income taxes
$
141
$
135
$
6
4
%
Gas Utility system throughput - billions
of cubic feet
Core market
31
30
1
3
%
Total
98
104
(6
)
(6
)%
Gas Utility heating degree days - %
(warmer) than normal (b)
(3.2
)%
(11.0
)%
Capital expenditures
$
106
$
82
$
24
29
%
- Gas Utility service territory experienced temperatures that
were 3% colder than the prior-year period.
- Core market volumes increased 3% largely due to colder than
prior-year weather.
- Total margin increased $9 million primarily resulting from
higher gas rates at the West Virginia gas utility.
- Operating and administrative expenses increased $3 million
primarily reflecting, among other things, higher personnel expenses
and higher uncollectible accounts expenses.
- Operating income increased $4 million due to the higher total
margin ($9 million) and lower operating and administrative expenses
($3 million), partially offset by higher depreciation expense ($3
million) from continued distribution system capital expenditure
activity.
Midstream & Marketing
For the fiscal quarter ended December
31,
2024
2023
(Decrease) Increase
Revenues
$
367
$
394
$
(27
)
(7
)%
Total margin (a)
$
138
$
155
$
(17
)
(11
)%
Operating and administrative expenses
$
29
$
31
$
(2
)
(6
)%
Operating income
$
91
$
99
$
(8
)
(8
)%
Earnings before interest expense and
income taxes
$
95
$
102
$
(7
)
(7
)%
Heating degree days - % (warmer) than
normal (b)
(3.9
)%
(6.8
)%
Capital expenditures
$
32
$
19
$
13
68
%
- Temperatures were 4% colder than the prior-year period.
- Total margin decreased $17 million largely due to lower
midstream margins ($10 million) which arose mainly from lower
natural gas gathering and processing activities, the absence of
power generation margin associated with the sale of Hunlock Creek
in September 2024 ($4 million), and lower capacity management
margins.
- Operating and administrative expenses decreased $2 million
largely reflecting lower personnel-related expenses.
- Operating income decreased $8 million as lower total margin
($17 million) was partially offset by reduced operating and
administrative expenses, lower depreciation expense and higher
other operating income ($6 million).
UGI International
For the fiscal quarter ended December
31,
2024
2023
(Decrease) Increase
Revenues
$
638
$
725
$
(87
)
(12
)%
Total margin (a)
$
264
$
279
$
(15
)
(5
)%
Operating and administrative expenses
(a)
$
134
$
147
$
(13
)
(9
)%
Operating income
$
106
$
113
$
(7
)
(6
)%
Earnings before interest expense and
income taxes
$
110
$
117
$
(7
)
(6
)%
LPG retail gallons sold (millions)
218
214
4
2
%
Heating degree days - % (warmer) than
normal (b)
(3.5
)%
(12.0
)%
Capital expenditures
$
14
$
12
$
2
17
%
UGI International base-currency results are translated into U.S.
dollars based upon exchange rates experienced during the reporting
periods. Differences in these translation rates affect the
comparison of line item amounts presented in the table above. The
functional currency of a significant portion of our UGI
International results is the euro and, to a much lesser extent, the
British pound sterling. During the 2024 and 2023 three-month
periods, the average unweighted euro-to-dollar translation rates
were approximately $1.07 and $1.08, respectively, and the average
unweighted British pound sterling-to-dollar translation rates were
approximately $1.28 and $1.24, respectively.
- Temperatures were 4% warmer than normal and 8% colder than the
prior-year period.
- Retail volumes were 2% higher than the prior-year period
largely due to higher volumes from crop drying campaigns and the
effects of colder weather.
- Total margin decreased $15 million primarily due to lower
margin from the non-core energy marketing activities and, to a
lesser extent, lower LPG unit margins partially offset by higher
LPG volumes.
- Operating and administrative expenses decreased $13 million
reflecting lower personnel-related and maintenance expenses, and
the effect of exiting substantially all of the non-core energy
marketing business.
- Operating income decreased $7 million reflecting lower total
margin ($15 million) and lower foreign currency transaction gains
($2 million), partially offset by lower operating and
administrative expenses ($13 million).
AmeriGas Propane
For the fiscal quarter ended December
31,
2024
2023
(Decrease) Increase
Revenues
$
627
$
629
$
(2
)
—
%
Total margin (a)
$
347
$
346
$
1
—
%
Operating and administrative expenses
$
236
$
243
$
(7
)
(3
)%
Operating income /earnings before interest
expense and income taxes
$
74
$
71
$
3
4
%
Retail gallons sold (millions)
204
206
(2
)
(1
)%
Heating degree days - % (warmer) colder
than normal (b)
(6.3
)%
(6.4
)%
Capital expenditures
$
23
$
20
$
3
15
%
- Temperatures were 6% warmer than normal and comparable to the
prior-year period.
- Retail gallons decreased 1% as the effect of net customer
attrition was partially offset by weather that was colder than the
prior December period.
- Total margin was fairly consistent as higher LPG unit margins
($7 million) offset the impact of a modest decline in retail volume
($3 million) and lower fee income.
- Operating and administrative expenses decreased $7 million
largely reflecting lower compensation.
- Operating income increased $3 million as lower operating and
administrative expenses were partially reduced by lower gain from
asset sales.
(a) Total margin represents total revenue less total cost of
sales. In the case of Utilities, total margin is also reduced by
certain revenue-related taxes. (b) Deviation from average heating
degree days is determined on a 10-year period utilizing
volume-weighted weather data.
REPORT OF EARNINGS – UGI CORPORATION (Millions of
dollars, except per share) (Unaudited)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2024
2023
2024
2023
Revenues:
Utilities
$
485
$
493
$
1,590
$
1,755
Midstream & Marketing
367
394
1,342
1,572
UGI International
638
725
2,192
2,813
AmeriGas Propane
627
629
2,269
2,444
Corporate & Other (a)
(87
)
(120
)
(274
)
(294
)
Total revenues
$
2,030
$
2,121
$
7,119
$
8,290
Earnings (loss) before interest expense
and income taxes:
Utilities
$
141
$
135
$
406
$
372
Midstream & Marketing
95
102
306
286
UGI International
110
117
316
285
AmeriGas Propane
74
71
145
229
Total reportable segments
420
425
1,173
1,172
Corporate & Other (a)
99
(205
)
(140
)
(1,179
)
Total earnings (loss) before interest
expense and income taxes
519
220
1,033
(7
)
Interest expense:
Utilities
(26
)
(23
)
(96
)
(84
)
Midstream & Marketing
(12
)
(11
)
(42
)
(45
)
UGI International
(10
)
(11
)
(43
)
(41
)
AmeriGas Propane
(33
)
(41
)
(148
)
(161
)
Corporate & Other, net (a)
(21
)
(14
)
(67
)
(56
)
Total interest expense
(102
)
(100
)
(396
)
(387
)
Income (loss) before income taxes
417
120
637
(394
)
Income tax expense
(42
)
(26
)
(87
)
(60
)
Net income (loss) attributable to UGI
Corporation
$
375
$
94
$
550
$
(454
)
Earnings (loss) per share attributable to
UGI shareholders:
Basic
$
1.74
$
0.45
$
2.58
$
(2.16
)
Diluted
$
1.74
$
0.44
$
2.55
$
(2.16
)
Weighted Average common shares outstanding
(thousands):
Basic
214,933
209,782
213,204
209,778
Diluted
215,695
215,570
215,875
209,778
Supplemental information:
Net income (loss) attributable to UGI
Corporation:
Utilities
$
89
$
86
$
240
$
224
Midstream & Marketing
89
92
235
208
UGI International
100
83
279
210
AmeriGas Propane
(46
)
16
(85
)
38
Total reportable segments
232
277
669
680
Corporate & Other (a)
143
(183
)
(119
)
(1,134
)
Total net income (loss) attributable to
UGI Corporation
$
375
$
94
$
550
$
(454
)
(a)
Corporate & Other includes
specific items attributable to our reportable segments that are not
included in profit measures used by our Chief Operating Decision
Maker in assessing our reportable segments' performance or
allocating resources. These specific items are shown in the section
titled "Non-GAAP Financial Measures - Adjusted Net Income (Loss)
Attributable to UGI and Adjusted Diluted Earnings Per Share" below.
Corporate & Other also includes the elimination of certain
intercompany transactions.
Non-GAAP Financial Measures - Adjusted
Net Income Attributable to UGI and Adjusted Diluted Earnings Per
Share.
The following tables reconcile net income attributable to UGI
Corporation, the most directly comparable GAAP measure, to adjusted
net income attributable to UGI Corporation, and reconcile diluted
earnings per share, the most comparable GAAP measure, to adjusted
diluted earnings per share, to reflect the adjustments referred to
previously:
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2024
2023
2024
2023
Adjusted net income attributable to UGI
Corporation (millions):
Net income (loss) attributable to UGI
Corporation
$
375
$
94
$
550
$
(454
)
Net (gains) losses on commodity derivative
instruments not associated with current-period transactions (net of
tax of $14, $(18), $49 and $(74), respectively)
(64
)
77
(201
)
303
Unrealized (gains) losses on foreign
currency derivative instruments (net of tax of $6, $(6), $3 and
$(6), respectively)
(16
)
14
(8
)
12
Loss associated with impairment of
AmeriGas Propane goodwill (net of tax of $0, $0, $(3), and $4,
respectively)
—
—
192
660
Loss on extinguishment of debt (net of tax
of $0, $0, $(3) and $(2), respectively)
—
—
6
7
Impairment of equity method investments
and assets (net of tax of $0, $0, $(3) and $0, respectively)
—
—
30
—
Business transformation expenses (net of
tax of $0, $0, $0, and $(2), respectively)
—
—
—
6
Costs associated with exit of the UGI
International energy marketing business (net of tax of $0, $(13),
$(2) and $(12), respectively)
—
65
4
80
AmeriGas operations enhancement for growth
project (net of tax of $0, $(2), $(4) and $(6), respectively)
—
5
14
18
Restructuring costs (net of tax of $0,
$(1), $(19) and $(1), respectively)
—
3
53
3
Net gain on sale of UGI headquarters
building (net of tax of $0, $0, $0 and $4, respectively)
—
—
—
(10
)
Loss on disposal of UGID (net of tax of
$0, $0, $(11), and $0, respectively)
—
—
55
—
Total adjustments (1)
(80
)
164
145
1,079
Adjusted net income attributable to UGI
Corporation
$
295
$
258
$
695
$
625
Adjusted diluted earnings per
share:
UGI Corporation earnings (loss) per share
— diluted (2)
$
1.74
$
0.44
$
2.55
$
(2.16
)
Net (gains) losses on commodity derivative
instruments not associated with current-period transactions
(0.30
)
0.37
(0.93
)
1.36
Unrealized (gains) losses on foreign
currency derivative instruments
(0.07
)
0.06
(0.04
)
0.06
Loss associated with impairment of
AmeriGas Propane goodwill
—
—
0.89
3.15
Loss on extinguishment of debt
—
—
0.03
0.03
Impairment of equity method investments
and assets
—
—
0.14
—
Business transformation expenses
—
—
—
0.03
Costs associated with the exit of the UGI
International energy marketing business
—
0.30
0.02
0.38
AmeriGas operations enhancement for growth
project
—
0.02
0.06
0.09
Restructuring costs
—
0.01
0.25
0.01
Net gain on sale of UGI headquarters
building
—
—
—
(0.05
)
Loss on disposal of UGID
—
—
0.25
—
Total adjustments (2)
(0.37
)
0.76
0.67
5.06
Adjusted diluted earnings per share
(2)
$
1.37
$
1.20
$
3.22
$
2.90
(1)
Income taxes associated with
pre-tax adjustments determined using statutory business unit tax
rates.
(2)
The loss per share for the twelve
months ended December 31, 2023, was determined excluding the effect
of 5.97 million dilutive shares as the impact of such shares would
have been antidilutive to the net loss for the period. Adjusted
earnings per share for the twelve months ended December 31, 2023,
was determined based upon fully diluted shares of 215.75
million.
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INVESTOR RELATIONS Tel: +1 610-337-1000 Tameka Morris, ext. 6297
Arnab Mukherjee, ext. 7498
UGI (NYSE:UGI)
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