UGI Corporation Q2 FY2026 earnings call

• Strategic transactions: $70 million deal expected to close in Q1 2027, strategic partnership with Prime Data Centers to develop natural gas supply infrastructure in PA's Northern Tier, oversubscribed open season for Auburn pipeline expansion pending FERC approval. • UGI International: return on capital employed ~15%, generated over $800 million free cash flow in past three years, disciplined capital allocation. • Amerigas: operational transformation underway, recordable incident and lost time injury rates reduced by ~50%, customer service call volume down 32%, net promoter score up 67%, call center fully reshoring to US, route optimization program implemented, EBIT up 9% over two years. • Key takeaways: year-to-date results reflect strategic priorities, natural gas businesses performing well, Amerigas operational transformation delivering results, well positioned for natural gas growth opportunities, strategic actions sharpen focus, strengthen balance sheet, increase financial flexibility

Utilities: EBIT $250 million, up $9 million; total margin increased $23 million due to higher gas-based rates in Pennsylvania, weather normalization adjustment mitigated $19 million weather impact, operating and administrative expenses increased $8 million, depreciation and amortization rose $4 million. Midstream and marketing: EBIT $150 million, down $4 million; heating degree days 3% colder, longer cold weather duration focused on peaking customers, operating and administrative expenses higher due to new assets. Global LPG businesses - UGI International: EBIT $132 million, down $11 million; retail volumes 8% lower due to divestitures and warmer weather, total margin down $4 million offset by translation effects of stronger foreign currencies, operating and administrative expenses comparable, other income declined $11 million. Amerigas: EBIT $156 million, up $2 million; retail gallons decreased 5% due to warmer weather in West and customer attrition, total margin increased $2 million, OPEX increased $2 million. Year-to-date: adjusted diluted EPS $3.35, core EBIT growth driven by higher gas base rates offsetting warmer weather and LPG divestitures, offset by higher income tax expense and interest expense

• Revising fiscal 2026 adjusted diluted EPS guidance range to $2.75 to $2.90, primarily due to lower expected earnings contributions from midstream and marketing segment (delays in planned growth investments and lower production volume in Appalachian region) and slower operational improvements at Amerigas translating into earnings than originally anticipated. • UGI Corporation net leverage 3.7 times at end of quarter, lowest in five years; Amerigas net leverage 4.7 times, lowest in five years. • UGI International will pay special one-time dividend of $300 million to UGI Corporation using available liquidity, funds contributed to Amerigas to retire outstanding indebtedness, aiming to optimize consolidated cost of capital, accelerate deleveraging at Amerigas, and unlock investment capacity for growth opportunities

• In global LPG businesses, monitoring geopolitical situation involving Iran, but structure of LPG contracts and proactive actions give confidence no impact to margin or supply availability constraints. • For midstream, potential delays in inorganic growth opportunities due to reassessment of valuations by owners with potential growth in power and gas needs in region. • Amerigas facing challenges like customer attrition, warmer weather impacting retail volumes

Q: On decision to put equity into Amerigas from international, what changed in plans or was this always the plan?

A: Amerigas can stand on its own now, this is about optimizing cost of capital. Amerigas was in a different position before, now has better balance sheet, generating cash, and this improves consolidated cost of capital.

Q: Thoughts on Pennsylvania governor's letter related to utility affordability?

A: Doesn't impact current rate case, going through normal process, want to be constructive for the state.

Q: On midstream delay in investments as factor in guidance revised, organic or inorganic? Will they resolve?

A: Inorganic opportunities, valuations reassessed by owners, but anticipate seeing them in future.

Q: Capital and timing on Auburn expansion project?

A: Capital investment between $25 million - $30 million, open season showed strong interest, look forward to bringing it online.

Q: Next steps on data center announcement, capital infusion?

A: Sale of land provides capital return, will invest to deliver gas to data center, benefits later in decade