UGI CORP /PA/ Q4 FY2024 earnings call

• Fiscal 2024 was a pivotal year with record adjusted diluted EPS of $3.06. Three segments achieved record EBIT. - Achieved $75 million in operating and administrative cost savings, accelerating the timeline for $70M-$100M permanent savings. - Returned ~$320 million to shareholders via dividends. - Deployed ~$500 million in regulated utilities for infrastructure replacement, completed Moody Project RNG, and began construction of Carlisle LNG facility and Manning LNG expansion. - Reduced AmeriGas debt by $460 million and improved liquidity. - Focus for 2025 includes stabilizing AmeriGas, optimizing LPG portfolio, and disciplined capital allocation.

Regulated Utilities: EBIT increased by $35 million compared to the prior year, driven by higher gas and electric base rates, DISC program benefits, and customer growth. Over 12,000 residential and commercial customers were added, and operating and administrative expenses decreased by $5 million. Midstream and Marketing: Record EBIT of $313 million, up $22 million from the prior year,受益于 fee-based portfolio and peaking asset optimization during cold snaps, though offset by lower margins from renewable energy marketing. Operating expenses decreased by $8 million. UGI International: Record EBIT of $323 million, up $89 million, due to higher LPG unit margins, lower operating and administrative expenses, and tax benefits from a favorable regulatory change. AmeriGas: LPG volumes declined by 10% due to customer attrition and warmer weather, resulting in a $119 million reduction in total margin. Operating expenses decreased by $17 million, but a non-cash pre-tax goodwill impairment charge of $195 million was recorded. Corporate and Other: Decreased by $0.07, primarily due to higher interest expense.

• Fiscal 2025 adjusted diluted EPS guidance range: $2.75-$3.05, assuming normal weather and current tax regime. - Considerations include AmeriGas stabilization, additional interest expense from recent financing, and tax benefits from RNG. - UGI International faces $0.05-$0.08 additional distribution costs due to France supply port damage, with repairs expected to take 18 months.

• AmeriGas faces customer attrition and the need to stabilize the business. - Weather conditions can impact volume and margins. - UGI International's supply port in France damage affects supply and logistics, with potential unrecoverable distribution costs.

Q: Julien Dumoulin-Smith asked about the strategic direction for AmeriGas and if there's further equity going into it.

A: Bob Flexon stated AmeriGas needs to stabilize, has teams mobilized, and will focus on internal fixes; no equity will be going into AmeriGas, it must support itself.

Q: Gabriel Moreen inquired about AmeriGas customer attrition and midstream guidance.

A: Sean O'Brien said AmeriGas volume declines will continue as it stabilizes, and midstream marketing uplift from 2024 won't be repeated normally; midstream has growth projects like LNG facilities and RNG, with future potential from PJM and data center demand.