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AGA FINANCIAL FORUM – UGI Corp.

UGI Corp. · May 19, 2014 · 46 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. AGA FINANCIAL FORUM – UGI Corp. – slide 1
    AGA Financial Forum John Walsh President and CEO UGI Corporation May 19, 2014 May 19, 2014 1
  2. AGA FINANCIAL FORUM – UGI Corp. – slide 2
    Introduction UGI Corporation John Walsh President and CEO Kirk Oliver CFO Dan Platt Treasurer Simon Bowman Manager, Investor Relations and Treasury UGI Utilities Robert Beard President and CEO May 19, 2014 3
  3. AGA FINANCIAL FORUM – UGI Corp. – slide 3
    About UGI Corporation UGI Corporation (NYSE: UGI) is a distributor and marketer of energy products and services including natural gas, propane, butane, and electricity. Domestic Propane Midstream & UGI International UGI Utilities…
  4. AGA FINANCIAL FORUM – UGI Corp. – slide 4
    Commitment to Investors 6-10% annual earnings growth 4% annual dividend growth Cash flow Dividends Base business earnings growth 250 MM- 125 MM- 3-4% 290 MM* 140 MM* Organic investment and M&A1 Incremental earnings growth 125…
  5. AGA FINANCIAL FORUM – UGI Corp. – slide 5
    Dividend Track Record Consecutive dividends: 130 years, consecutive increases: 27 years 1.20 100% 1.00 80% 0.80 60% 0.60 40% 0.40 20% 0.20 0.00 0% 2014F 2005 2004 2006 2007 2008 2009 2010…
  6. AGA FINANCIAL FORUM – UGI Corp. – slide 6
    Total Shareholder Return Through 3/31/14 1 Year Total Return 3 Year Total Return 5 Year Total Return 24.0% 16.0% 28.0% 24.0% 12.0% 20.0% 16.0% 16.0% 8.0% 12.0% 8.0% 8.0% 4.0% 4.0% 0.0% 0.0% 0.0% UGI S&P 500 S&P 500 S&P 400…
  7. AGA FINANCIAL FORUM – UGI Corp. – slide 7
    Business Unit Overview May 19, 2014 8
  8. AGA FINANCIAL FORUM – UGI Corp. – slide 8
    UGI Utilities: Overview Pennsylvanias 2nd largest gas utility 46 of the 67 PA 600,000 gas 62,000 electric counties served customers customers 13,000 miles of main May 19, 2014 9
  9. AGA FINANCIAL FORUM – UGI Corp. – slide 9
    UGI Utilities: Growth Initiatives Attractive and growing service area Total Residential Customer Additions 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 - 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006…
  10. AGA FINANCIAL FORUM – UGI Corp. – slide 10
    UGI Utilities: Services Committed to serving customers in Pennsylvania Infrastructure replacement All cast iron main replaced by 2027 and all bare steel by 2043 Distribution System Improvement Charge (DSIC) DSIC approved in 2012…
  11. AGA FINANCIAL FORUM – UGI Corp. – slide 11
    UGI Utilities: Services Committed to serving customers in Pennsylvania GET Gas program: Improving accessibility of natural gas Innovative way to make natural gas available to more Pennsylvanians Program utilizes a standard 10-year…
  12. AGA FINANCIAL FORUM – UGI Corp. – slide 12
    Business Unit Overview May 19, 2014 13
  13. AGA FINANCIAL FORUM – UGI Corp. – slide 13
    AmeriGas: Overview Largest player in a fragmented industry 15% market share* 1 billion gallons sold 47,000 ACE distribution points 8,500 employees 2,500 Distribution locations 100 brands Goal: 3-4% EBITDA growth, 5%…
  14. AGA FINANCIAL FORUM – UGI Corp. – slide 14
    Unit Margin Management A long track record of exceptional margin management through volatile propane cost environments 1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 2005 2006 2007 2008 2009 2010 2011 2012 2013 Avg. Mt.…
  15. AGA FINANCIAL FORUM – UGI Corp. – slide 15
    Why Invest in AmeriGas Geographic Coverage End-use Diversity Efficient distribution achieved Significant commercial/industrial through greater customer density customer base Geographic diversity reduces Large presence in emerging…
  16. AGA FINANCIAL FORUM – UGI Corp. – slide 16
    AmeriGas: Growth Initiatives 3 Key Strategic Growth Initiatives Description Size Growth Contribution AmeriGas < 10% of Cylinder Counter-seasonal summer 4-6% Expected annual AmeriGas Exchange grilling tank exchange EBITDA growth…
  17. AGA FINANCIAL FORUM – UGI Corp. – slide 17
    Business Unit Overview May 19, 2014 18
  18. AGA FINANCIAL FORUM – UGI Corp. – slide 18
    International: Overview Eastern Europe United Kingdom and Nordics Over 140 MM Other brand gallons in FY13 names: Over 230 MM gallons in FY13 France & Benelux Over 300 MM gallons in FY13 May 19, 2014 19
  19. AGA FINANCIAL FORUM – UGI Corp. – slide 19
    Unit Margin Management Exceptional unit margin management through volatile periods Antargaz Margin History Avg. Platts Cost (/T) LPG Unit Margins 700 700 600 600 (/T) 500 500 400 400 300 300 200 200 2005…
  20. AGA FINANCIAL FORUM – UGI Corp. – slide 20
    EBITDA Contribution Increased diversification through acquisitions and integration FY13 EBITDA: 171 MM * Benelux FY08 EBITDA: 104 MM Austria Hungary Denmark Poland Czech Republic Romania Switzerland France Slovakia UK…
  21. AGA FINANCIAL FORUM – UGI Corp. – slide 21
    International: Growth Initiatives Both acquisition and organic growth opportunities Organic Growth Acquisition Opportunities Opportunities Natural gas marketing Bolt-on acquisitions in (France) Eastern Europe and Heating oil to LPG…
  22. AGA FINANCIAL FORUM – UGI Corp. – slide 22
    Business Unit Overview May 19, 2014 23
  23. AGA FINANCIAL FORUM – UGI Corp. – slide 23
    Midstream & Marketing: Overview Marketing Midstream Generation Natural Gas Pipelines/Gathering Hunlock: 130 MWs Auburn System combined cycle 100 Bcf 30,000 locations Storage (15 Bcf) Conemaugh: 102 MWs 36 LDCs coal-fired Meeker…
  24. AGA FINANCIAL FORUM – UGI Corp. – slide 24
    Marketing and Generation Marketing Generation Strategy: Target small and Generation assets provide medium-size businesses that balancing support for power value our services (hedging, marketing business and reduce management of energy…
  25. AGA FINANCIAL FORUM – UGI Corp. – slide 25
    Midstream Strategy Link supply to markets by leveraging UGIs existing pipeline infrastructure Build new pipeline capacity from prolific Marcellus areas to market centers in PA and beyond New pipeline infrastructure augments our…
  26. AGA FINANCIAL FORUM – UGI Corp. – slide 26
    Midstream Assets Erie Potter Warren McKean Tioga Bradford Susquehanna Crawford Wayne Forest Wyoming Venango Elk Cameron Sullivan Mercer Lycoming Pike Clinton Clarion Jefferson Luzerne Lawrence Monroe Clearfield Union…
  27. AGA FINANCIAL FORUM – UGI Corp. – slide 27
    Midstream Assets Auburn Gathering System Auburn I: 9-mile 12 pipeline running from Tennessee Pipeline to Wyoming County (aqua) Auburn II: 28-mile 20 pipeline running from Wyoming County to Transco (green) Total current investment:…
  28. AGA FINANCIAL FORUM – UGI Corp. – slide 28
    New Midstream Projects Auburn III Union Dale Lateral Two phases: 6-mile 12 pipeline to move locally- Additional compression at produced natural gas to UGI PNG, Manning Compressor Station one of UGIs utilities 9-mile 24 loop of Auburn…
  29. AGA FINANCIAL FORUM – UGI Corp. – slide 29
    In conclusion May 19, 2014 30
  30. AGA FINANCIAL FORUM – UGI Corp. – slide 30
    Why Invest in UGI 4 Reasons to Invest in UGI: Significant Cash Generation Diversification UGI provides diversified exposure to UGI generates over 125 million of free Commodities Customer Segments Geographies Supply Chain cash flow…
  31. AGA FINANCIAL FORUM – UGI Corp. – slide 31
    Growth Opportunities Multiple growth opportunities to achieve 6-10% earnings growth goal and 4% dividend growth goal National Accounts Gas Acquisitions gathering / pipelines Cylinder Natural gas exchange peaking/LNG Natural…
  32. AGA FINANCIAL FORUM – UGI Corp. – slide 32
    Total Shareholder Return Through 3/31/14 1 Year Total Return 3 Year Total Return 5 Year Total Return 24.0% 16.0% 28.0% 24.0% 12.0% 20.0% 16.0% 16.0% 8.0% 12.0% 8.0% 8.0% 4.0% 4.0% 0.0% 0.0% 0.0% UGI S&P 500 S&P 500 S&P 400…
  33. AGA FINANCIAL FORUM – UGI Corp. – slide 33
    Questions May 19, 2014 34
  34. AGA FINANCIAL FORUM – UGI Corp. – slide 34
    Appendix May 19, 2014 35
  35. AGA FINANCIAL FORUM – UGI Corp. – slide 35
    UGI Summary Financial Information Year Ended September 30, Income Statement 2013 2012 2011 2010 2009 2008 (millions of dollars) Revenues 7,194.7 6,521.3 6,090.9 5,591.4 5,737.8 6,648.2 Cost of sales (4,324.4) (4,099.1) (3,982.7)…
  36. AGA FINANCIAL FORUM – UGI Corp. – slide 36
    UGI EPS Reconciliation Reconciliation of Adjusted EPS to GAAP EPS Year Ended September 30, 2013 2012 2011 2010 2009 2008 GAAP Net Income 278.1 210.2 245.4 261.0 258.5 215.5 Adjustments: Net unrealized gains (losses) on unsettled…
  37. AGA FINANCIAL FORUM – UGI Corp. – slide 37
    UGI Long-term Debt Long-term Debt: Year Ended Sep 30, Year Ended Sep 30, AmeriGas Propane: 2013 2012 UGI Utilities: 2013 2012 AmeriGas Partners Senior Notes: Term Loan Credit Agreement 175.0 - 7.00%, due May 2022 980.8 980.8 Senior…
  38. AGA FINANCIAL FORUM – UGI Corp. – slide 38
    AmeriGas Propane Cash Flow Reconciliation Year Ended September 30, 2006 2007 2008 2009 2010 2011 2012 2013 Net Cash Provided by Operating Activities 179.5 207.1 180.2 367.5 218.8 188.9 344.4 356.9 Add: Acquisition and Transition…
  39. AGA FINANCIAL FORUM – UGI Corp. – slide 39
    AmeriGas Supplemental Information: Footnotes The enclosed supplemental information contains a reconciliation of Earnings before interest expense, income taxes, depreciation and amortization (EBITDA) and Adjusted EBITDA to Net Income.…
  40. AGA FINANCIAL FORUM – UGI Corp. – slide 40
    AmeriGas Propane EBITDA Reconciliation Year Ended September 30, (millions of dollars) 2013 2012 2011 2010 2009 Net income attributable to AmeriGas Partners, L.P. 1 221.6 11.0 138.5 165.3 224.6 Income tax expense 1.5 1.9 0.4 3.2 2.6…
  41. AGA FINANCIAL FORUM – UGI Corp. – slide 41
    International Propane (millions of dollars, except where otherwise indicated) 2013 2012 2011 2010 2009 2008 Income Statement - UGI International Revenues 2,179.2 1,946.0 1,488.7 1,059.5 955.3 1,124.8 Cost of sales (1,498.4) (1,325.8)…
  42. AGA FINANCIAL FORUM – UGI Corp. – slide 42
    UGI Utilities Year Ended September 30, (millions of dollars) 2013 2012 2011 2010 2009 2008 Income Statement - UGI Utilities Revenues 940.7 884.3 1,137.4 1,169.5 1,381.3 1,289.1 Cost of sales (466.0) (459.1) (678.5) (730.5) (944.8)…
  43. AGA FINANCIAL FORUM – UGI Corp. – slide 43
    Midstream & Marketing (millions of dollars) 2013 2012 2011 2010 2009 2008 Income Statement - Energy Services Revenues 1,040.8 859.4 1,059.7 1,145.9 1,224.7 1,619.5 Cost of sales (876.8) (730.9) (920.0) (1,010.7) (1,098.5) (1,495.4)…
  44. AGA FINANCIAL FORUM – UGI Corp. – slide 44
    Commodity Marketing Strategy: Target small & medium-size businesses that value our services (hedging, management of energy requirements) Commodity Marketing Margin (000s) 22% warmer than normal winter 80,000 Commodity spike to 13/Dth…
  45. AGA FINANCIAL FORUM – UGI Corp. – slide 45
    FAQs Frequently Asked Questions Is natural gas making significant inroads on areas traditionally served by heating oil Yes. Natural gas is less expensive and more convenient for consumers Most conversions take place within 75-100 feet…
  46. AGA FINANCIAL FORUM – UGI Corp. – slide 46
    Investor Relations: 610-337-7000 Simon Bowman (x3645) bowmansugicorp.com 47 May 19, 2014

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