Financial Performance - Net income attributable to UGI Corporation for the 2024 three-month period was 375million,or1.74 per diluted share, compared to 94million,or0.44 per diluted share, for the 2023 three-month period [142]. - Adjusted net income attributable to UGI Corporation for the 2024 three-month period was 295million,or1.37 per diluted share, compared to 258million,or1.20 per diluted share, for the 2023 three-month period [144]. - UGI International's adjusted net income increased by 17millioninthe2024three−monthperiod,mainlyduetolowerincometaxexpensesandreducedoperatingcosts[147].−AmeriGasPropane′sadjustednetincomedecreasedby62 million in the 2024 three-month period, primarily due to higher income tax expenses [148]. - Utilities' adjusted net income increased by 3 million in the 2024 three-month period, attributed to higher total margin from increased base rates effective January 2024 [145]. - Midstream & Marketing's adjusted net income decreased by 3 million in the 2024 three-month period, primarily due to lower total margin from natural gas marketing activities [146]. - The increase in adjusted net income during the 2024 three-month period was also influenced by significantly lower income tax expenses related to investment tax credits [144]. Revenue and Margin Analysis - Utilities revenues decreased by 8million(2485 million in the 2024 three-month period compared to 493millionin2023,primarilyduetolowerGasUtilityrevenues[151].−TotalmarginforUtilitiesincreasedby9 million (3%) to 274 million, driven by higher Gas Utility total margin from base rate increases effective January 1, 2024 [153]. - Midstream & Marketing revenues decreased by 27 million (7%) to 367million,mainlyduetolowerrevenuesfromnaturalgasmarketingactivitiesandtheabsenceofrevenuesfromUGIDsoldinSeptember2024[158].−UGIInternationalrevenuesdecreasedby87 million (12%) to 638million,reflectingsignificantlylowerenergymarketingactivitiesfollowingtheexitfromtheenergymarketingbusinessinBelgium,France,andtheNetherlands[162].−AmeriGasPropanerevenuesdecreasedslightlyby2 million (—%) to 627million,withtotalretailgallonssolddecreasingby117 million (11%) to 138million,primarilyduetolowermidstreammarginsfromnaturalgasgatheringandprocessingactivities[160].−UGIInternationaltotalmargindecreasedby15 million (5%) to 264million,reflectinglowermargincontributionsfromenergymarketingactivities[166].CashFlowandLiquidity−Cashflowprovidedbyoperatingactivitieswas164 million in the 2024 three-month period, compared to 119millioninthe2023three−monthperiod[199].−Cashflowusedbyinvestingactivitieswas232 million in the 2024 three-month period, up from 165millioninthe2023three−monthperiod[200].−Cashflowfromfinancingactivitieswas95 million in the 2024 three-month period, a significant increase from 3millioninthe2023three−monthperiod[202].−UGI′stotalavailableliquiditybalancewasapproximately1.5 billion as of December 31, 2024, including cash and cash equivalents and available borrowing capacity [178]. - As of December 31, 2024, UGI's cash and cash equivalents totaled 240million,upfrom213 million at September 30, 2024 [182]. Debt and Financing - Consolidated interest expense increased by 2millionto102 million in the 2024 three-month period, reflecting higher average long-term debt outstanding at Utilities and UGI Corporation [175]. - UGI Corporation's total long-term debt as of December 31, 2024, was 6.849billion,comparedto6.678 billion at September 30, 2024 [183]. - UGI Utilities issued 50millionof5.24125 million of 5.52% Senior Notes due November 30, 2034 [185]. - AmeriGas Partners has an outstanding principal balance of 218millionfor5.50475 million revolving credit facility and a 400milliontermloanfacilityinOctober2024[187].−Theaveragedailyshort−termborrowingsforUGICorporationwas263 million for the three months ended December 31, 2024 [192]. - UGI Utilities issued 50millionand125 million principal amount of senior notes in 2024, compared to 250millionin2023,withproceedsusedtoreduceshort−termborrowings[202].RegulatoryandOperationalUpdates−PAGasUtilityfiledarequesttoincreasebaseoperatingrevenuesby110 million annually, effective March 28, 2025, pending approval from the PAPUC [205]. - WV Gas Utility submitted a 2024 IREP filing requesting recovery of 19millionforcapitalinvestmentstotaling197 million, including 74millionin2025[206].−WVGasUtility′s2023IREPfilingrequestedrecoveryof10 million, an increase of 6million,forcapitalinvestmentstotaling131 million [207]. - A base rate case filing by WV Gas Utility sought a net revenue increase of 20million,withafinalorderapprovinga14 million increase effective January 1, 2024 [208]. Risk and Control - The company does not designate its commodity and certain foreign currency derivative instruments as hedges under GAAP, leading to volatility in net income attributable to UGI Corporation [137]. - A 10% decline in foreign currencies versus the USD would reduce the net book value of UGI International operations by approximately 75million[222].−Themaximumpotentiallossfromderivativeinstrumentcounterpartieswas201 million as of December 31, 2024 [225]. - The fair value of commodity price risk derivatives was 45million,reflectingachangeof(96) million due to market fluctuations [227]. - Management concluded that internal control over financial reporting was not effective due to a material weakness as of December 31, 2024 [231]. - The company is in the process of designing and implementing additional controls to validate cash flows used in the goodwill impairment test [231]. - A third-party specialist is being engaged to assist in developing valuation models and establishing reasonable assumptions [231]. - The identified material weakness cannot be considered remediated until controls have operated effectively for a sufficient period [232]. - No changes in internal control over financial reporting occurred during the most recent fiscal quarter that materially affected the company's internal controls [233].
UGI (UGI)2025-02-06 15:37