Core Insights - UGI Corporation's Vice President, Jean Felix Tematio, sold 12,840 shares of UGI Common Stock for approximately $489,000 on February 11, 2026, indicating a significant transaction by a key executive [1][2]. Company Overview - UGI Corporation reported a total revenue of $7.34 billion and a net income of $600 million for the trailing twelve months (TTM) [4]. - The company has a dividend yield of 3.92% and a 1-year price change of 17.09% as of February 21, 2026 [4]. - UGI operates as a diversified energy distributor, providing propane, liquefied petroleum gas (LPG), natural gas, and electricity, serving approximately 1.4 million propane customers, 672,000 natural gas customers, and 62,500 electricity customers [5]. Recent Financial Performance - In Q1 FY 2026, UGI reported a net income of $297 million, which is a significant improvement compared to the previous two quarters that experienced net losses, although it is approximately 20% lower than the same quarter last year [6]. Corporate Developments - The company is undergoing restructuring after liquidating its petroleum gas distribution business in multiple European countries in January 2026 and appointed a new Chief Strategy Officer in February [7]. - UGI is expanding its operations into multiple states, including Pennsylvania and Hawai'i [7]. Stock Performance - UGI's stock has seen an increase over the past two years but is currently down about 5% in 2026 as of February 21 [8]. - Despite fluctuations in financial performance, the company’s petroleum gas distribution remains strong, suggesting potential for consistent revenue [9].

Company Overview - UGI Corporation is a diversified energy distributor with a portfolio that includes propane, natural gas, and electricity, leveraging an integrated infrastructure network to deliver energy products and services across multiple markets [6][9] - The company reported a total revenue of $7.34 billion and a net income of $600 million for the trailing twelve months (TTM) [4] Recent Transactions - Bragg Financial Advisors increased its stake in UGI by 207,861 shares, valued at approximately $7.36 million, as disclosed in a SEC filing dated February 13, 2026 [2] - Following this transaction, Bragg Financial Advisors' total exposure to UGI rose to 1,316,362 shares, with the position's value increasing by $12.40 million from the previous filing [2] Financial Performance - UGI opened fiscal 2026 with quarterly revenue of $2.08 billion, reflecting a 5% growth in total reportable segment EBIT to $441 million [7] - The adjusted diluted EPS for the quarter was reported at $1.26, with the Utilities segment achieving a 12% growth in operating income, supported by base rate increases in Pennsylvania and a 16% growth in core market volumes during colder weather [7] Market Position - As of February 12, 2026, UGI shares were priced at $38.26, representing a 23% increase over the past year, outperforming the S&P 500 by 10.64 percentage points [8] - The company is also focusing on regulated earnings growth, with rate case filings requesting $99 million and $27 million in distribution increases [10] Strategic Moves - UGI is reshaping its portfolio by divesting LPG businesses in several European countries, which is expected to generate approximately $215 million in cash [10] - Moody's has upgraded AmeriGas' outlook to positive, indicating a favorable view of the company's future performance [10]

Financial Performance - Net income attributable to UGI Corporation for the three-month period ended December 31, 2025, was $297 million, or $1.34 per diluted share, compared to $375 million, or $1.74 per diluted share, for the same period in 2024[145]. - Adjusted net income attributable to UGI Corporation for the three-month period ended December 31, 2025, was $279 million, or $1.26 per diluted share, compared to $295 million, or $1.37 per diluted share, for the same period in 2024[147]. - The Utilities segment's adjusted net income increased by $9 million during the 2025 period, primarily due to higher total margin[148]. - The Midstream & Marketing segment's adjusted net income decreased by $28 million during the 2025 period, mainly due to higher income tax expenses[148]. - UGI International's adjusted net income increased by $3 million during the 2025 period, attributed to higher total margin offset by increased income tax expenses[149]. - AmeriGas Propane's adjusted net income increased by $70 million during the 2025 period, primarily due to significantly lower income tax expenses[149]. Revenue and Volume Changes - Utilities revenues increased by $106 million (22%) in the 2025 three-month period compared to 2024, primarily driven by higher Gas Utility revenues of $103 million[150]. - Gas Utility core market volumes rose by 16% during the 2025 period, reflecting colder weather conditions, while total Gas Utility volume increased by 3%[151]. - Midstream & Marketing revenues increased by $60 million (16%) in the 2025 period, mainly due to higher revenues from natural gas marketing activities[157]. - UGI International revenues decreased by $63 million (10%) in the 2025 period, attributed to lower LPG retail volumes sold and lower LPG prices[163]. - AmeriGas Propane revenues decreased by $27 million (4%) in the 2025 period, primarily due to lower wholesale revenues and lower average retail propane selling prices[171]. Operating Income and Margins - Utilities operating income increased by $17 million (12%) in the 2025 period, reflecting a rise in total margin[155]. - UGI International total margin increased by $20 million (8%) during the 2025 period, driven by higher average unit margins and favorable currency translation effects[168]. - AmeriGas Propane total margin increased by $2 million (1%) in the 2025 period, despite lower fee income[175]. Cash Flow and Liquidity - Cash flow from operating activities was $66 million in the 2025 three-month period, down from $164 million in the 2024 period, while cash flow before changes in working capital increased to $438 million from $427 million[206]. - Cash used in investing activities was $145 million in the 2025 three-month period, compared to $232 million in the 2024 period, with cash expenditures for property, plant, and equipment at $221 million[207]. - Cash flow used by financing activities was $6 million in the 2025 three-month period, down from cash flow provided of $95 million in the 2024 period, including the issuance of $150 million in senior notes[209]. - Total available liquidity, including cash and cash equivalents and available borrowing capacity, was approximately $1.6 billion as of December 31, 2025[181]. - As of December 31, 2025, UGI Corporation had $251 million in cash and cash equivalents, down from $335 million as of September 30, 2025[184]. Debt and Financing - The total long-term debt of UGI Corporation was $6,773 million as of December 31, 2025, compared to $6,648 million as of September 30, 2025[186]. - UGI Corporation's total debt, including short-term borrowings, was $7,214 million as of December 31, 2025, compared to $7,134 million as of September 30, 2025[186]. - The company has $700 million in outstanding 5.00% Senior Notes due June 2028, which are convertible from January 1, 2026, to March 31, 2026[189][190]. - UGI Utilities issued $150 million of 5.10% Senior Notes due November 15, 2030, and $125 million of 5.68% Senior Notes due November 15, 2035, in November 2025[188]. - The average daily short-term borrowings for UGI Corporation were $251 million for the three months ended December 31, 2025, with a peak of $288 million[199]. Shareholder Actions - The company declared a cash dividend of $0.375 per common share on November 20, 2025, payable on January 1, 2026[202]. - UGI purchased 0.3 million shares of Common Stock for a total price of $12 during the three months ended December 31, 2025, and extended its share repurchase program for up to 8 million shares until February 2030[203]. Regulatory and Market Risks - PA Gas Utility filed a request to increase its base operating revenues by $99 million annually, effective March 29, 2026, to fund system improvements[211]. - WV Gas Utility submitted a base rate case seeking a net revenue increase of $27 million, with new rates requested to be effective March 5, 2026[213]. - A 10% decline in foreign currencies against the USD would reduce the net book value of UGI International operations by approximately $165 million[230]. - UGI maintains credit policies to mitigate derivative instrument credit risk, evaluating counterparties' financial conditions and credit ratings[232]. - As of December 31, 2025, the maximum potential loss from derivative counterparties failing to perform is $83 million[233]. Derivative Instruments and Risk Management - UGI Corporation uses derivative financial instruments to hedge against commodity price risk, including forward purchase contracts and options[223]. - The company has diversified its supplier base to mitigate risks associated with fixed-price sales contracts for natural gas[225]. - UGI Corporation employs forward foreign currency exchange contracts to hedge approximately 90% of anticipated foreign currency earnings before income taxes[231]. - The fair value change due to commodity price risk was a decrease of $52 million, reflecting a 10% adverse change in market prices[235]. - The fair value change due to interest rate risk was a decrease of $10 million, reflecting a 50 basis point adverse change in prevailing market interest rates[236]. - The fair value change due to foreign currency exchange rate risk was a decrease of $12 million, reflecting a 10% adverse change in the value of the Euro and British pound sterling against the USD[236].

Core Insights - UGI Corporation reported fiscal first-quarter 2026 earnings of $1.26 per share, missing the Zacks Consensus Estimate of $1.50 by 16% and down 8.03% from $1.37 per share in the same quarter last year [1][9] - Total revenues for the quarter were $2.08 billion, falling short of the Zacks Consensus Estimate of $2.13 billion by 2.07%, but representing a 2.61% increase from $2.03 billion in the prior year [2][9] Financial Performance - Earnings before interest expense and income tax (EBIT) for the fiscal first quarter of 2026 were $462 million, an 11% decline from $519 million in the year-ago quarter [3] - Interest expenses increased to $111 million, up 8.82% from $102 million in the previous year [3] Strategic Developments - UGI filed new gas base rate cases for UGI Utilities and Mountaineer Gas, seeking overall distribution rate increases of $99 million and $27 million, respectively [3] - The company entered into agreements for the divestiture of LPG businesses in several countries for an enterprise value of nearly $56.59 million, contributing to $215 million in cash proceeds from divestitures since fiscal 2025 [4] - UGI invested $225 million in the fiscal first quarter of 2026, with 73% allocated to regulated utilities [4] Operational Highlights - The New Carlisle LNG storage and vaporization facility commenced operations in the fiscal first quarter of 2026 [5] - Segment performance showed mixed results: - AmeriGas Propane EBIT was $72 million, down 2.70% year-over-year - UGI International EBIT increased by 12.7% to $124 million - Midstream & Marketing EBIT declined by 7.37% to $88 million - UGI Utilities EBIT rose 10.2% to $157 million [6][7]

Financial Data and Key Metrics Changes - For Q1 2026, total reportable segments EBIT was $441 million, a 5% increase from the prior year, driven by strong performance in natural gas businesses and effective margin management in LPG operations [4][10] - Adjusted diluted EPS for the quarter was $1.26, down from $1.37 in the prior year, reflecting the absence of investment tax credits, higher interest expenses, and lost earnings from divestitures [10] - Available liquidity at the end of the quarter was $1.6 billion, an increase of $100 million year-over-year [15] Business Line Data and Key Metrics Changes - Utilities segment delivered EBIT of $157 million, up $16 million year-over-year, with a 16% increase in core market volumes due to colder weather [11] - Midstream and Marketing reported EBIT of $88 million, down from $95 million in the prior year, impacted by pipeline rate increases [12] - UGI International reported EBIT of $124 million, up $14 million year-over-year, due to operating efficiencies despite lower retail LPG volumes [14] Market Data and Key Metrics Changes - The gas utility service territories experienced temperatures approximately 21% colder than the prior year, contributing to increased demand [11] - Retail LPG volumes were lower due to reduced crop drying campaigns and divestitures, but total margin increased due to effective margin management [14] Company Strategy and Development Direction - The company is focused on operational excellence, safety, and cultural transformation to unlock intrinsic value [4] - Capital discipline is emphasized, with LPG portfolio optimization nearly complete and natural gas infrastructure positioned to capture growing demand [5] - A new Chief Strategic Officer role has been created to focus on medium to long-term growth opportunities and sustainability [36][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to meet strong winter demand, with improved safety metrics and operational efficiency [4][17] - The company is actively engaged in discussions with power providers to meet increasing natural gas demand in Pennsylvania [30] Other Important Information - Moody's upgraded AmeriGas's outlook to positive, reflecting operational and financial improvements [6][16] - The company filed a gas base rate case for UGI Utilities and Mountaineer Gas Company, requesting distribution rate increases to support infrastructure investments [8] Q&A Session Summary Question: How has AmeriGas performed through extreme winter weather? - Management noted improved performance metrics, with record safety and customer satisfaction, despite some delivery challenges due to road conditions [20][21] Question: Can you discuss the decision for a rate case in Pennsylvania? - Management clarified that the rate case focuses on maintaining affordability and efficiency, with no extraordinary structural changes [27][28] Question: What is the status of NDAs related to increasing natural gas demand? - Management indicated ongoing discussions with power providers, hoping to announce developments within the fiscal year [30][31] Question: Why create the Chief Strategic Officer role now? - The role is aimed at focusing on long-term growth and sustainability, reflecting the company's evolution and need for strategic oversight [36][39] Question: Can you quantify the lag in recovery of pipeline transportation costs? - Management estimated the lag to be around $5 million, which is expected to be recovered over the fiscal year [42][43]

Financial Data and Key Metrics Changes - For Q1 2026, total reportable segments EBIT was $441 million, a 5% increase from the prior year, driven by strong performance in natural gas businesses and effective margin management in LPG operations [4][10] - Adjusted diluted EPS for the quarter was $1.26, down from $1.37 in the prior year, reflecting the absence of investment tax credits, higher interest expenses, and lost earnings from divestitures [10] Business Line Data and Key Metrics Changes - Utilities segment delivered EBIT of $157 million, up $16 million year-over-year, with a 16% increase in core market volumes due to colder weather [11] - Midstream and Marketing reported EBIT of $88 million, down from $95 million in the prior year, impacted by pipeline rate increases [12] - UGI International reported EBIT of $124 million, up $14 million, due to operating efficiencies despite lower retail LPG volumes from divestitures [12][14] - AmeriGas reported EBIT of $72 million, down $2 million, with total retail LPG volume up due to colder weather, but impacted by divestitures [14] Market Data and Key Metrics Changes - The natural gas utility experienced temperatures approximately 21% colder than the prior year, contributing to increased volumes and margins [11] - The company deployed $225 million in capital during the quarter, with 73% allocated to regulated utilities for infrastructure improvements [7] Company Strategy and Development Direction - The company is focused on operational excellence, safety, and cultural transformation to unlock intrinsic value [4] - Capital discipline is emphasized, with LPG portfolio optimization nearly complete and natural gas infrastructure positioned for growth in Pennsylvania [5][7] - A new Chief Strategic Officer role has been created to focus on medium to long-term growth opportunities and sustainability [36][39] Management's Comments on Operating Environment and Future Outlook - Management noted strong demand for propane during extreme winter weather, with operational improvements leading to better customer satisfaction metrics [22][49] - The company is committed to maintaining affordable natural gas service while investing in infrastructure upgrades [8][28] Other Important Information - Moody's upgraded AmeriGas's outlook to positive, reflecting operational and financial improvements [6][16] - The company filed gas base rate cases for UGI Utilities and Mountaineer Gas Company, requesting distribution rate increases to support ongoing investments [8] Q&A Session Summary Question: How has AmeriGas performed through extreme winter weather? - Management indicated improved performance metrics, with record safety and customer satisfaction, despite some delivery challenges due to road conditions [20][22] Question: What is the rationale behind the recent rate case in Pennsylvania? - Management emphasized ongoing efforts to manage operational expenses and maintain affordability for customers, with no extraordinary changes in the rate case structure [26][27] Question: What is the status of discussions regarding increasing natural gas demand in Pennsylvania? - Management confirmed ongoing discussions with power providers and hopes to announce developments within the fiscal year [29][30] Question: Why create the Chief Strategic Officer role now? - The role is intended to focus on long-term growth and sustainability, reflecting the company's evolution and need for strategic oversight [36][39] Question: Can you quantify the lag in recovery of pipeline transportation costs? - Management indicated a rate increase on FERC pipelines incurred, with an estimated recovery of around $5 million expected in fiscal 2026 [41][43]

Financial Data and Key Metrics Changes - For Q1 2026, total reportable segments EBIT was $441 million, a 5% increase from the prior year, driven by strong performance in natural gas businesses and effective margin management in LPG operations [4][10] - Adjusted diluted EPS for the quarter was $1.26, down from $1.37 in the prior year, reflecting the absence of investment tax credits, higher interest expenses, and lost earnings from divestitures [10] - Available liquidity at the end of the quarter was $1.6 billion, an increase of $100 million over the prior year [14] Business Line Data and Key Metrics Changes - Utilities segment delivered EBIT of $157 million, up $16 million year-over-year, supported by colder weather and increased core market volumes [11] - Midstream and Marketing reported EBIT of $88 million, down from $95 million in the prior year, impacted by pipeline rate increases [12] - UGI International reported EBIT of $124 million, an increase of $14 million, due to operating efficiencies despite lower retail LPG volumes from divestitures [12][13] - AmeriGas reported EBIT of $72 million, down $2 million, with total retail LPG volume up due to colder weather in the east [13] Market Data and Key Metrics Changes - The gas utility service territories experienced temperatures approximately 21% colder than the prior year, driving a 16% increase in core market volumes [11] - Retail LPG volumes were lower due to reduced crop drying campaigns and divestitures, but total margin increased due to effective margin management [13] Company Strategy and Development Direction - The company is focused on operational excellence, safety, and cultural transformation to unlock intrinsic value [4] - Capital discipline is emphasized, with LPG portfolio optimization nearly complete and natural gas infrastructure positioned to capture growing demand [5] - A new Chief Strategic Officer role has been created to focus on medium to long-term growth opportunities and sustainability [34][36] Management's Comments on Operating Environment and Future Outlook - Management noted strong demand during extreme winter weather, with efforts to redeploy resources to meet customer needs [20][21] - The company is committed to maintaining affordability for customers while investing in infrastructure and safety [25][26] - Discussions are ongoing regarding increasing natural gas demand in Pennsylvania, with hopes to announce developments during the fiscal year [27][28] Other Important Information - Moody's upgraded AmeriGas's outlook to positive, reflecting operational and financial improvements [6][15] - The company plans to contribute $3 million to the UGI Utilities Operation Share Energy Fund to assist low and moderate-income customers [8] Q&A Session Summary Question: How has AmeriGas performed through extreme winter weather? - Management indicated improved performance metrics, with record safety and customer satisfaction, despite some delivery challenges due to road conditions [19][20] Question: What is the rationale for the recent rate case in Pennsylvania? - The company emphasized ongoing efforts to manage operational expenses and maintain affordability for customers, with no extraordinary changes in the rate case structure [25][26] Question: What is the status of discussions regarding increasing natural gas demand? - Management confirmed ongoing discussions with power providers and hopes to announce developments within the fiscal year [27][28] Question: What is the impact of pipeline transportation cost recovery on the midstream business? - Management noted a timing lag in recovering pipeline transportation costs, with an estimated recovery of around $5 million expected [39][40]

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Fiscal 2026 First Quarter Earnings Presentation February 5, 2026 About This Presentation 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, 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, althou ...

EARNINGS CALL AND WEBCAST Press Release UGI Reports First Quarter Results February 4, 2026 VALLEY FORGE, PA - UGI Corporation (NYSE: UGI) today reported financial results for the fiscal quarter ended December 31, 2025. HIGHLIGHTS Bob Flexon, President and Chief Executive Officer, said, "UGI had a solid start to fiscal 2026, delivering 5% growth in total reportable segment EBIT in line with our expectation. Our natural gas businesses produced strong results, driven by strong gas demand and the impact of the ...