Financial Performance & Targets - UGI Corporation's YTD FY25 GAAP diluted EPS is $3.93, compared to $2.74 in YTD FY24[39] - The company increased its Fiscal 2025 adjusted EPS guidance to a range of $3.00 - $3.15 per share[39] - The company targets a long-term EPS growth rate of 4-6%[18] - The company targets a rate base growth of 9%+[18] - The company's leverage ratio target is between 3.5 – 4.0x[23] Capital Allocation & Deployment - The company plans to deploy approximately $3.9 billion in capital from FY24-27[25] - Approximately 66% of the capital will be returned to shareholders[25] - Approximately 18% of the capital will be used for debt reduction[25] - Approximately 85% of total capital invested in natural gas businesses[26] ESG - The company targets a 55% reduction in 5-year Scope-1 GHG Emissions[31]

Industry Overview - Natural gas distribution companies transport natural gas from production regions to consumers across the U.S., utilizing extensive underground pipeline networks [1] - The industry is transitioning towards cleaner energy, with natural gas serving as a critical bridge fuel for decarbonization goals [1] - The U.S. has 3,353 trillion cubic feet of natural gas and operates a 2.6-million-mile pipeline network, but faces challenges from aging infrastructure and competition from alternative energy sources [3] Future Outlook - U.S. Energy Information Administration (EIA) projects an increase in domestic dry natural gas production in 2025, particularly in the Permian and Eagle Ford regions [4] - LNG export volumes are expected to rise by 22.7% year-over-year in 2025 and 9.6% in 2026, highlighting the importance of gas pipelines for transportation to export terminals [4] - Interest rates have declined by 100 basis points, benefiting capital-intensive utilities planning infrastructure upgrades [5] Investment Opportunities - Natural gas utilities are investing approximately $37 billion annually to enhance the reliability of distribution and transmission systems, indicating long-term growth potential [6] - The Zacks Utility Gas Distribution industry ranks 52, placing it in the top 21% of the 244 Zacks industries, reflecting strong near-term prospects [7][8] Performance Metrics - The Gas Distribution industry has outperformed the S&P 500 and the Utility sector over the past year, with an 18.1% gain compared to 10.8% for the S&P 500 [9] - The industry is currently trading at a trailing 12-month EV/EBITDA ratio of 11.12X, lower than the S&P 500's 16.96X and the sector's 15.09X, suggesting a potential valuation opportunity [12] Company Highlights - **Atmos Energy Corporation (ATO)**: Plans to invest $3.7 billion in fiscal 2025, with a current dividend yield of 2.23% and long-term earnings growth projected at 7.19% [18][19] - **UGI Corporation**: Expected to invest $3.7-$4.1 billion through fiscal 2027, with a dividend yield of 4.12% and long-term earnings growth of 5.2% [22][23] - **ONE Gas Inc. (OGS)**: Aims to invest $4 billion through 2029, with a dividend yield of 3.64% and long-term earnings growth of 5.6% [26][27] - **Northwest Natural Holding Company (NWN)**: Plans to invest $2.5-$2.7 billion through 2030, with a dividend yield of 3.64% [30][31]

Have you been paying attention to shares of UGI (UGI) ? Shares have been on the move with the stock up 1% over the past month. The stock hit a new 52-week high of $36.74 in the previous session. UGI has gained 29.3% since the start of the year compared to the 8.3% gain for the Zacks Utilities sector and the 3% return for the Zacks Utility - Gas Distribution industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate ...

Key Takeaways SWX's EPS estimate for 2025 rose 5.1% to $3.72, with long-term growth projected at 9.9%. Southwest Gas plans $4.3B in capital investments from 2025-2029 to support expansion and upgrades. SWX added 40,000 new meter sets in 12 months, with 1.4% annual customer growth expected through 2029.Southwest Gas (SWX) focuses on consistent investments to strengthen its infrastructure, which has played a critical role in expanding the company's operations. Southwest Gas is also gaining from consistent c ...

Key Takeaways UGI's AmeriGas is selling Hawaii propane assets to Isle Gas, with closing expected in Q4 fiscal 2025. The deal includes 750,000 gallons of storage and a delivery fleet, with proceeds used to reduce debt. UGI aims to boost efficiency and fund growth by exiting non-core markets and cutting long-term costs.UGI Corporation (UGI) announced that its subsidiary, AmeriGas Propane, L.P. (AmeriGas), has entered into a definitive agreement to divest some of its assets in Hawaii to Isle Gas, a wholly ow ...

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium also includes the Zacks Style Scores. What are ...

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Key Takeaways UGI plans $800-$900M in fiscal 2025 and up to $4.1B by 2027 to modernize infrastructure. Fiscal 2025 EPS estimate rose 3.3% to $3.13, with sales expected to grow 8.4% to $7.81B. UGI's 16.21% ROE and 141-year dividend track record underscore consistent performance.UGI Corporation’s (UGI) planned investments should help upgrade and replace its aging infrastructure and boost its overall performance. Given its growth opportunities and strong return on equity (ROE), UGI makes for a solid investme ...

A month has gone by since the last earnings report for UGI (UGI) . Shares have added about 1.2% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is UGI due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.How Have Estimates Been Moving Since Then?It turns out, fresh estimat ...

Core Viewpoint - UGI shares have shown strong performance, increasing 29.3% year-to-date, outperforming the Zacks Utilities sector and the Zacks Utility - Gas Distribution industry [1][3]. Financial Performance - UGI has consistently exceeded earnings expectations, reporting an EPS of $2.21 against a consensus estimate of $1.8 in its last earnings report [2]. - For the current fiscal year, UGI is projected to achieve earnings of $3.11 per share on revenues of $7.81 billion, reflecting a 1.63% increase in EPS and an 8.36% increase in revenues [3]. - The next fiscal year forecasts an EPS of $3.14 on revenues of $8.74 billion, indicating a year-over-year change of 0.86% in EPS and 11.82% in revenues [3]. Valuation Metrics - UGI's current valuation metrics show it trading at 11.7X current fiscal year EPS estimates, below the peer industry average of 16.6X [7]. - On a trailing cash flow basis, UGI trades at 5.6X compared to the peer group's average of 8.2X [7]. - The stock has a PEG ratio of 2.26, which does not place it among the top value stocks [7]. Style Scores and Zacks Rank - UGI has a Value Score of A, a Growth Score of B, and a Momentum Score of F, resulting in a combined VGM Score of A [6]. - The stock holds a Zacks Rank of 2 (Buy), supported by rising earnings estimates, indicating potential for further gains [8].