Ugi Corporation · NYSE:UGI
Ugi — AGA Financial Forum 2012
35 slides from Ugi's conference presentation, May 2012
Slide 1: AGA Financial Forum May 2012
AGA Financial Forum May 2012 May 2012
Slide 2: About This Presentation
About This Presentation This presentation contains forward-looking statements which management believes to be reasonable as of today today’ss 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
Slide 3: About UGI Corporation
About UGI Corporation UGI Corporation is a distributor and marketer of energy products and services. NYSE: UGI Headquarters: Valley Forge, PA Market M k t Cap: C $3 3B ((as off M $3.3B May 3) FY11 Revenue: $6,091 million FY11 Net Income: $232 $232.9 9 million FY11 Dividend Yield: 3.4% Am
Slide 4: Investment Highlights
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 p excellence,, sound in
Slide 5: A Balanced Growth and Income Investment
A Balanced Growth and Income Investment UGI Corporation has an established record of dividend and earnings growth. Dividend Growth Adjusted EPS1 Growth $1.10 $2.40 $2.20 $1.00 $2.00 $0.90 $1.80 $0.80 $1.60 $1 40 $1.40 $0.70 $1.20 $0.60 $1.00 $0 80 $0.80 $0.50 $0.60 $0.40 $0.40 002 003 004 005 006 00
Slide 6: Diversified Cash Flow and Earnings
Diversified Cash Flow and Earnings1 Cash Generation Earnings Generation $220MM to $275MM Domestic Domestic Propane P Propane Utiliti Utilities Utiliti Utilities 20% 26% 29% 31% 15% 23% International International Propane 30% Propane 26% Midstream & Midstream & Marketing Marketing Cash available for
Slide 7: Related and Complementary Businesses
Related and Complementary Businesses UGI Corporation as a whole is greater than the sum of its parts. Similar End Uses Diverse business mix (heating, cooking, commercial Similar allows for: Margin / applications) customer pricing mix management (Residential Shared knowledge of andd commercial) com
Slide 8: Business Units
Business Units Domestic Propane International Propane Midstream & Marketing UGI Utilities May 2012
Slide 9: Domestic Propane
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 gpprovider in a highly g y fragmented g AmeriGas cylinder y
Slide 10: Domestic Propane: Heritage Acquisition Update
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
Slide 11: International Propane
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 g France, Scandinavia, Austria, Central European p market
Slide 12: UGI Utilities
UGI Utilities KEY STATS FINANCIAL OBJECTIVES Largest gas utility in PA with 575,000 Growth of core customer base customers and 173 Bcf gas throughput Manage expenses consistent with a Small electric utility with 62,000 distribution company customers, integrated g with g gas utility y Perio
Slide 13: UGI Utilities: Customer Conversions
UGI Utilities: Customer Conversions Heating Sources in 4 9M PA Homes1 4.9M 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 Util
Slide 14: Midstream & Marketing
Midstream & Marketing KEY STATS OBJECTIVES Marketing: M k ti Optimizing O ti i i returns t using i ab broad db 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
Slide 15: Auburn Pipeline Projects
Auburn Pipeline Projects Auburn I 9 mile pipeline to deliver Marcellus gas north to Tennessee Interstate Pipeline Announced: September 2010 Full Capacity: February 2012 Volumes transported: 120,000 Dth/d Auburn II 30 mile pipeline to extend Auburn south to Transco Pipeline Announced: Oct
Slide 16: Commonwealth Pipeline
Commonwealth Pipeline Joint Development Agreement with affiliates of Inergy and WGL 200-mile 200 mile FERC-regulated FERC regulated interstate pipeline Connect markets in Philadelphia, Baltimore, and Washington, D.C. metro t areas tot Marcellus M ll shale h l gas Will cross and interconnect
Slide 17: Diversified Growth Opportunities
Diversified Growth Opportunities UGI has h a variety i t off initiatives i iti ti iin place l tto d drive i growth th iin all ll its it businesses. b i 15 Bcf gas Heritage storage Gas gathering Propane p / pipelines acquisition Cylinder exchange and Natural gas national peaking accounts Natural gas
Slide 18: Diversified Growth Opportunities
Diversified Growth Opportunities Earnings contribution Integration period Capital investment 2012 2013 2014 2015 2016 opane Intl Shell LPG Acquisitions Pro I Propane Dom Heritage acquisition 15 Bcf gas storage LNG Expansion eting stream & Marke Auburn I pipeline Auburn II pipeline Mids Commonwealth
Slide 19: Investment Highlights
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 p excellence,, sound in
Slide 20: Contact
Contact P.O. Box 858 Valley Forge, PA 19482 Tel: 610-337-1000 www ugicorp com www.ugicorp.com Treasurer Hugh Gallagher (x1029) gallagherh@ugicorp com [email protected] Investor Relations Simon Bowman (x3645) @ g p [email protected] Finance Assistant Shelly Oates (x3202) May 2012 oatess@ugicor
Slide 21: Supplemental Data
CORPORATION Supplemental Data
Slide 22: UGI Corporation EPS Reconciliation
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 Net Income $232.9 $261.0 $258.5 $215.5 $204.3 $176.2 $187.5 $111.6 $ 98.9 $ 75.5 Adjustments: Cumulative effectof change in accounting Loss o
Slide 23: UGI Common Stock Data
Common Stock Data UGI Common Stock Data Year Ended September 30, 2011 2010 2009 2008 2007 2006 St kh ld ' equity Stockholders' it - end d off year (millions) ( illi ) $ 1,977.7 1 977 7 $ 1,824.5 1 824 5 $ 1,591.4 1 591 4 $ 1,417.7 1 417 7 $ 1,321.9 1 321 9 $ 1,099.6 1 099 6 Shares outstanding - end
Slide 24: AmeriGas Partners Financial Data
AmeriGas Partners Financial Data AmeriGas Financial Data: Year Ended September 30, (millions of dollars, except where otherwise indicated) 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
Slide 25: AmeriGas Partners EPS Reconciliation
AmeriGas Partners EPS Reconciliation AmeriGas Partners, L.P. Reconciliation of Adjusted EBITDA (millions of dollars) 2011 2010 2009 2008 2007 2006 2005 2004 2003 Net income attributable to AmeriGas Partners, L.P. 1 $ 138.5 $ 165.3 $ 224.6 $ 158.0 $ 190.8 $ 91.1 $ 60.8 $ 91.8 72.0 Income tax expense
Slide 26: AmeriGas Partners Cash Flow Reconciliation
AmeriGas Partners Cash Flow Reconciliation A AmeriGas iG P Partners, t L.P. L P Historical Hi t i l Distributable Di t ib t bl Cash C h Flow Fl Reconciliation R ili ti Year Ended September 30, ($ in millions) 2011 2010 2009 2008 2007 2006 Net Cash Provided by Operating Activities $ 188.9 $ 218.8 $ 3
Slide 27: AmeriGas Supplemental Information: Footnotes
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
Slide 28: AmeriGas Operating Statistics
AmeriGas Operating Statistics Operating Statistics - AmeriGas Year Ended September 30, 2011 2010 2009 2008 2007 2006 AmeriGas Propane Retail sales - millions of gallons Residential 344.0 358.7 380.6 399.0 400.1 378.6 Commercial / Industrial 330.0 330.4 339.9 354.5 358.1 343.2 Motor Fuel 123.1 117.9
Slide 29: International Propane: Income Statement
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) (5
Slide 30: International Propane: Summary Financial Data
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.
Slide 31: International Propane: Operating Statistics
International Propane: Operating Statistics Operating Statistics - International Propane Year Ended September p 30, 2011 2010 2009 2008 2007 2006 Antargaz 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
Slide 32: UGI Utilities: Summary Financial Data
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) Total Mar
Slide 33: UGI Utilities: Summary Financial Data (cont.)
UGI Utilities: Summary Financial Data (cont.) UGI Utilities Financial Data (continued): Year Ended September 30, (millions of dollars) 2011 2010 2009 2008 2007 2006 Revenues by segment: Gas Utility $ 1,026.4 $ 1,047.5 $ 1,241.0 $ 1,138.4 $ 1,045.0 $ 724.0 Electric Utility 109.1 120.2 138.5 139.2 121
Slide 34: UGI Utilities: Operating Statistics
UGI Utilities: Operating Statistics Operating Statistics - Utilities Year Ended September 30, 2011 2010 2009 2008 2007 2006 Degree days - percent of normal 104% 95% 104% 95% 95% 91% Miles of gas distribution main 12,200 11,900 11,900 7,867 7,800 7,700 Miles of electric distribution line 2,100 2,120
Slide 35: Energy Services: Summary Financial Data
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,