UGI Corporation · NYSE:UGI

UGI — Merger or Acquisition (January 2021)

11 slides from UGI's merger presentation, Jan 5, 2021

  1. Slide 1: Acquisition of Mountaineer Gas Company

    ACQUISITION OF MOUNTAINEER GAS COMPANY January 5, 2021

  2. Slide 2: Presenters

    Presenters UGI Corporation John Walsh Ted Jastrzebski Robert Beard President & CEO CFO Executive VP, Natural Gas 2

  3. Slide 3: About This Presentation

    About This Presentation UGI Corporation This presentation contains statements, estimates and projections that are forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended). Management believes that these are reasonable as of today’s date only. Actual r

  4. Slide 4: Mountaineer Acquisition Highlights

    Mountaineer Acquisition Highlights UGI Corporation • Be the preferred provider in all markets Aligns with UGI Corp Strategy • Leverage strengths and expertise • Grow earnings through acquisitions, capital projects and organic growth • Opportunity to make investments to support customer growth, ensur

  5. Slide 5: A Strategic Fit

    A Strategic Fit UGI Corporation / Rebalancing UGI’s Business Mix Platform for Renewable Energy Future • Growth investment in natural • Infrastructure replacement program gas and renewable solutions will lower methane and other GHG opportunities emissions • Gas LDCs provide stable, long • Assess othe

  6. Slide 6: Transaction Summary

    Transaction Summary UGI Corporation • On December 29, 2020, UGI entered into a definitive agreement to acquire Transaction Mountaineer Gas Company (“Mountaineer”) and Purchase Price • Enterprise Value of $540 million including the assumption of Mountaineer’s long- term debt ($140 million) • Enterpri

  7. Slide 7: Overview of Mountaineer Gas Company

    Overview of Mountaineer Gas Company UGI Corporation Largest LDC in West Virginia, serving ~215,000 customers (90% residential) across 50 of WV’s 55 counties • Fully rate-regulated business with $378 million rate base1 • ~6,000 miles of pipe (25% bare steel) • West Virginia has a constructive regulat

  8. Slide 8: Strengthening Our Rate-Base Growth

    Strengthening Our Rate-Base Growth UGI Corporation / • Strong existing stand-alone rate base at UGI Anticipate MGC rate base to grow by Utilities projected to grow at a CAGR stronger 4.5 approximately 10% - 12% CAGR over the than its historical growth rate long term; in line with expected rate base

  9. Slide 9: Overview of Utilities Businesses

    Overview of Utilities Businesses UGI Corporation / UGI Utilities + UGI Utilities MGC Total Employees 1,700 2,170 Total Customers 740,000 955,000 Net Leverage1,2 Miles of Gas Mains 12,300 18,200 Capital Expenditures1 $348M $403M Gas Bill as % of Median Inc.2 < 2.0% < 2.0% UGI Utility Service Area UGI

  10. Slide 10: Key Takeaways

    Key Takeaways UGI Corporation The acquisition of Mountaineer Gas Company strengthens UGI’s core business and provides an additional platform to deliver on our long-term commitment to provide shareholders with 6-10% annual adjusted EPS growth and 4% dividend growth.  Opportunity to invest and grow r

  11. Slide 11: UGI Corporation

    CORPORATION uonesodio |9N

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