Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission file number 1-11071 UGI CORPORATION (Exact name of registrant as specified in its charter) (State or Other Jurisdiction of Inc ...

UGI Corporation (NYSE:UGI) Q4 2023 Earnings Call Transcript November 17, 2023 9:00 AM ET Company Participants Tameka Morris - SD, IR Roger Perreault - President, CEO Sean O'Brien - CFO Robert Beard - COO Conference Call Participants Gabriel Moreen - Mizuho Cameron Taylor - Bank of America Sarah Akers - Wells Fargo Michael Gaugler - Janney Montgomery Scott Operator Good day, and thank you for standing by. Welcome to the UGI Corporation’s Fourth Quarter 2023 Earnings Conference Call. At this time, all partici ...

1 1 Fiscal 2023 Results & Business Update Ro ge r Pe r re a u l t President and CEO, UGI Corporation S e a n O ' B r i e n Chief Financial Officer, UGI Corporation Ro b e r t F. B e a rd Chief Operations Officer, UGI Corporation 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 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission file number 1-11071 UGI CORPORATION (Exact name of registrant as specified in its charter) Pennsylvania 23-2668356 (Stat ...

Financial Data and Key Metrics Changes - For Q3 2023, the company reported adjusted diluted earnings per share (EPS) of $0.00, compared to $0.06 in the prior year [11] - Year-to-date adjusted diluted EPS stands at $2.81, with EBIT from reportable segments remaining consistent with the prior year [4][5] - The company recorded a pre-tax non-cash goodwill impairment charge of approximately $660 million, reflecting lower growth expectations post-acquisition [12] Business Line Data and Key Metrics Changes - AmeriGas saw flat performance year-over-year, with higher margins offsetting increased operating and administrative expenses [11] - UGI International's performance decreased by $0.01, with higher LPG margins offset by lower earnings from non-core energy marketing [11] - The utility segment's EBIT was lower than the previous year, primarily due to higher operating and administrative expenses [12] Market Data and Key Metrics Changes - The global LPG businesses are expected to see a decline in natural gas and power marketing volumes for fiscal 2024 by more than 65% and 80% respectively due to exiting non-core energy marketing businesses [8] - UGI's utility segment added approximately 11,000 new residential heating and commercial customers year-to-date, indicating organic growth [6] Company Strategy and Development Direction - The company is focused on improving earnings reliability and strengthening the balance sheet, with a disciplined execution plan to reduce debt at AmeriGas by $200 million [5] - UGI continues to invest in regulated utilities, with approximately $400 million invested year-to-date in infrastructure replacement and betterment [6] - The company is shifting its focus towards fee-based structures in energy services to improve earnings reliability [28] Management's Comments on Operating Environment and Future Outlook - Management anticipates adjusted diluted EPS will be at the low end of the guidance range of $2.75 to $2.90 for the fiscal fourth quarter [6] - The company is emphasizing cost control measures to offset weather impacts and volume pressures experienced earlier in the year [6] - Management remains committed to a long-term growth rate of 6% to 10% despite recent challenges [35] Other Important Information - The company released its fifth annual ESG report, highlighting progress across key ESG initiatives [9] - UGI is actively monitoring energy conservation trends in response to energy security concerns and government mandates [9] Q&A Session Summary Question: Strategies for improving earnings quality - Management emphasized the need to carefully manage operating expenses and deploy capital thoughtfully in renewables and regulated utilities [20] Question: Potential M&A opportunities - Management is currently focused on improving the balance sheet and ensuring appropriate liquidity before considering M&A opportunities [20] Question: Earnings mix and volatility reduction - The company is working to reduce volatility by exiting the energy marketing business and shifting towards more stable earnings from natural gas [22][27] Question: Renewable investments and project updates - Management confirmed ongoing progress in RNG projects and expects small-scale facilities in the UK and Europe to be operational by the end of the year [24] Question: Balance sheet targets and leverage - The company aims to reduce AmeriGas' leverage ratio below 5 and increase liquidity at UGI Corp to the 3.5 to 4 range [31] Question: Impairment decision timing - The impairment was triggered by diminished growth expectations and increased interest rates, necessitating a reassessment of goodwill [33] Question: Long-term EPS growth cadence - Management reiterated a commitment to a long-term growth rate of 6% to 10%, with a focus on improving the balance sheet in the near term [35][36]

Financial Performance - Adjusted net income attributable to UGI Corporation for the three months ended March 31, 2023, was $363 million, compared to $413 million for the same period in 2022, reflecting a decrease of approximately 12.1%[154] - Adjusted diluted earnings per share for the three months ended March 31, 2023, was $1.68, down from $1.91 in the same period of 2022, representing a decline of about 12.0%[156] - UGI Corporation's net income attributable to the company for the three months ended March 31, 2023, was $110 million, down from $933 million in the same period of 2022, indicating a decrease of approximately 88.2%[154] - Net income attributable to UGI Corporation for the 2023 three-month period was $110 million, a decrease of 88% compared to $933 million in the 2022 three-month period[163] - Adjusted net income for the 2023 three-month period was $363 million, down 12% from $413 million in the 2022 three-month period, primarily due to lower earnings from the AmeriGas Propane business[166] - For the 2023 six-month period, UGI Corporation reported a net loss of $844 million, compared to a net income of $836 million in the 2022 six-month period, largely due to losses from commodity derivative instruments[173] Segment Performance - UGI International reported adjusted net income of $92 million for the three months ended March 31, 2023, compared to $89 million in the same period of 2022, indicating a growth of approximately 3.4%[154] - The Utilities segment achieved adjusted net income of $143 million for the three months ended March 31, 2023, compared to $134 million in the same period of 2022, marking an increase of about 6.7%[154] - The Midstream & Marketing segment's adjusted net income increased to $66 million for the three months ended March 31, 2023, from $58 million in the same period of 2022, representing an increase of approximately 13.8%[154] - Corporate & Other segment reported a net loss of $264 million for the three months ended March 31, 2023, compared to a net income of $514 million in the same period of 2022, reflecting a significant decline[154] Revenue and Sales - AmeriGas Propane's revenues decreased by $181 million (17%) to $867 million, with retail gallons sold down 15% due to warmer weather and operational challenges[182] - UGI International's revenues fell by $276 million (23%) to $948 million, while total margin increased by 7% to $315 million despite lower LPG retail gallons sold[187] - UGI International revenues decreased by $448 million (20%) to $1.825 billion for the six months ended March 31, 2023, compared to $2.273 billion in the prior year[217] - Midstream & Marketing revenues increased by $101 million (8%) to $1,307 million, driven by higher revenues from natural gas and power marketing activities[223] - Utilities revenues increased by $240 million (21%) to $1,366 million, reflecting a $226 million increase in Gas Utility revenues and a $14 million increase in Electric Utility revenues[229] Costs and Expenses - The company experienced significant inflationary pressures and volatility in energy commodity prices, impacting operating and distribution expenses across all business segments[162] - UGI International's total cost of sales decreased by $147 million during the 2023 six-month period, reflecting lower average retail propane volumes sold[214] - Consolidated interest expense increased to $185 million during the 2023 six-month period from $163 million in the prior period, largely due to higher credit agreement interest rates[236] Cash Flow and Liquidity - Cash flow from operating activities was $424 million in the 2023 six-month period, an increase from $400 million in the 2022 six-month period[267] - Cash flow used by investing activities was $473 million in the 2023 six-month period, compared to $515 million in the 2022 six-month period[268] - Cash flow used by financing activities was $46 million in the 2023 six-month period, a decrease from cash provided of $25 million in the 2022 six-month period[270] - Total available liquidity increased to approximately $1.9 billion as of March 31, 2023, compared to $1.7 billion at September 30, 2022, due to higher borrowing capacity[240] Debt and Financing - The Company had total long-term debt of $6,764 million as of March 31, 2023, compared to $6,632 million at September 30, 2022[245] - As of March 31, 2023, total borrowings outstanding amounted to $30 million for AmeriGas OLP, €150 million for UGI International, and $183 million for UGI Utilities[248] - The average daily short-term borrowings for AmeriGas OLP was $153 million, with a peak of $242 million for the six months ended March 31, 2023[250] Strategic Initiatives - The company anticipates continued volatility in energy product costs and demand due to weather conditions and regulatory changes, which may impact future performance[147] - The company continues to pursue the sale of its energy marketing business in France, although the sale is not considered probable within one year[160] - The company was authorized to implement a weather normalization adjustment rider as a five-year pilot program starting November 1, 2022[272] Other Financial Metrics - UGI management emphasizes the importance of non-GAAP measures, such as adjusted net income and adjusted diluted earnings per share, to provide a clearer picture of operational performance[152] - A 10% decline in the value of foreign currencies (euro and British pound) would reduce the aggregate net book value of UGI International operations by approximately $100 million[288] - The maximum potential loss from derivative instrument counterparties, based on gross fair values, was $422 million as of March 31, 2023[291] - The company has received cash collateral from derivative instrument counterparties totaling $55 million as of March 31, 2023[291] Capital Expenditures and Dividends - Cash expenditures for property, plant, and equipment were $414 million in the 2023 six-month period, up from $355 million in the 2022 six-month period[268] - UGI's Board of Directors approved an increase in the quarterly dividend rate to $0.375 per common share, reflecting a 4.2% increase from the previous rate[264]

Financial Data and Key Metrics Changes - UGI reported adjusted diluted EPS of $1.68 for Q2 2023, down from $1.91 in the prior year [9] - The company expects adjusted diluted EPS for fiscal 2023 to be within a revised range of $2.75 to $2.90 [8][14] Business Line Data and Key Metrics Changes - Natural gas businesses saw an increase of $0.09 year-over-year, benefiting from higher gas base rates and a weather normalization rider [9] - UGI International's earnings increased by $0.02 year-over-year, aided by the noncore European energy marketing business [9] - AmeriGas reported a decrease of $0.30 in earnings year-over-year due to adverse weather impacts and driver shortages [9][10] Market Data and Key Metrics Changes - The U.S. experienced extremely warm temperatures, impacting customer volumes, particularly in the East and South [5][10] - Severe weather events in the West also impeded growth and efficient service delivery [5][11] - Energy conservation efforts in Europe due to the Russia-Ukraine war affected LPG volumes [12] Company Strategy and Development Direction - UGI is focusing on investing in natural gas businesses and renewable energy solutions to rebalance its portfolio [7] - The company plans to maintain operational excellence and discipline in capital allocation, particularly in infrastructure replacement and renewable projects [17][18] - UGI is committed to transforming AmeriGas operationally to position for future growth [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in Q2 2023, including weather-related issues and inflationary pressures [5][6] - The company remains focused on controlling costs and improving operational metrics for the second half of the year [14][19] - UGI is optimistic about the exit strategy for the noncore energy marketing business and expects to see benefits from margin management efforts [12][20] Other Important Information - UGI's Board of Directors increased the quarterly dividend to $0.375 per share, marking the 139th consecutive year of dividend payments [8] - The company had available liquidity of $1.9 billion at the end of the quarter, bolstered by renewed credit agreements [15] Q&A Session Summary Question: Measures in place for AmeriGas cost expenses - Management discussed inflation impacts and emphasized controlling costs across the company, particularly at AmeriGas [22][23] Question: Future capital contributions from corporate level - A $31 million equity cure was provided to AmeriGas in Q2, with plans for opportunistic debt management in the future [24] Question: Customer acquisition and market impressions for AmeriGas - Management noted active customer acquisition efforts and challenges due to severe weather impacting volumes [25][26] Question: Contribution from noncore assets in UGI International - The noncore energy marketing business is performing as expected, contributing positively to margins [28][29] Question: Strategic considerations for the LPG business - Management confirmed the LPG business remains a strong cash source, with a commitment to balance investments between LPG and natural gas [31] Question: Outlook for renewables investment - UGI is on track to invest $1 billion to $1.25 billion in renewables, with over $500 million already committed [32]

1 1 1 Second Quarter Fiscal 2023 Results Ro ge r Pe r re a u l t President and CEO, UGI Corporation S e a n P. O ' B r i e n Chief Financial Officer, UGI Corporation Ro b e r t F. B e a rd Chief Operations Officer, UGI Corporation 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 u ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission file number 1-11071 UGI CORPORATION (Exact name of registrant as specified in its charter) Pennsylvania 23-2668356 ( ...

Financial Data and Key Metrics Changes - UGI reported adjusted diluted EPS of $1.14 for Q1 2023, an increase from $0.93 in the prior-year period, reflecting a $63 million increase in EBIT over the prior-year period [4][9] - The adjusted diluted EPS would have been $0.08 higher without the noncore energy marketing business [4] - The company had available liquidity of $1.2 billion at the end of the quarter, with strong cash flows generated [19] Business Line Data and Key Metrics Changes - AmeriGas reported EBIT of $110 million, up from $86 million in the prior-year period, despite a 2% decline in retail volume due to staffing shortages [12] - UGI International's EBIT decreased to $66 million from $82 million, attributed to lower volume in the European LPG business and significantly warmer weather [13] - The Midstream and Marketing segment reported EBIT of $107 million, an increase of $25 million over the prior year, benefiting from colder weather and increased margins from natural gas marketing activities [15][16] - The Utilities segment had EBIT of $128 million, $30 million higher than the prior year, driven by a 17% increase in core market volume due to colder weather [17] Market Data and Key Metrics Changes - The warmer weather in Europe led to an 18% decline in retail LPG volumes year-over-year for UGI International [13] - The company experienced elevated inflationary pressures, particularly in personnel-related costs, impacting overall expenses [11][14] Company Strategy and Development Direction - UGI is focused on a 3R strategy: delivering reliable earnings growth, investing in renewables, and rebalancing the portfolio [20] - The company has committed over $450 million to renewable projects and aims for 6% to 10% EPS growth and 4% dividend growth over the long term [8] - A strategic growth project at AmeriGas is aimed at enhancing customer experience and operational efficiencies [7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by sustained inflationary pressures and geopolitical tensions but expressed confidence in the company's ability to manage these headwinds [20] - The company plans to provide updated guidance at the end of the second quarter, with expectations for continued monitoring of weather impacts [22][23] Other Important Information - UGI Utilities filed a request to increase rates by approximately $11 million to fund ongoing system improvements [6] - The company is also working on bio LPG projects and renewable dimethyl ether as part of its renewable strategy [28] Q&A Session Summary Question: Context around Q1 relative to guidance expectations - Management indicated that Q1 was solid, with some upside due to margin management efficiencies, but did not provide specific guidance for the second quarter yet [21][22] Question: Dynamics in Midstream and Marketing segment - Management noted that December's severe weather volatility contributed to additional benefits, but it is uncertain if this will carry into Q2 [24] Question: Mountaineer gas rate case timeline - Management confirmed plans to file a rate case but did not predict whether it would be effective in FY 2023 or calendar 2023 [25][26] Question: Scale of RNG projects - Management stated that they have a healthy pipeline of RNG projects and are targeting double-digit rates of return while remaining disciplined in project selection [27][28]