2012 Analyst Day                   October 17, 2012   1
About This PresentationThis presentation contains certain forward-looking statements that managementbelieves to be reasona...
Management TeamUGI Corporation       Business Unit ManagementLon Greenberg         Jerry SheridanJohn Walsh            Pau...
Agenda8:30 AM    Hugh Gallagher – Introductions8:35 AM    Lon Greenberg – Opening Remarks9:00 AM    Bob Beard – Utilities9...
Lon GreenbergChairman & CEO                 October 17, 2012   5
About UGI Corporation  UGI Corporation is a distributor and marketer of energy products and services             including...
About UGI Corporation      UGI operates in 50 states and 16 European countries                                            ...
UGI’s Businesses                                                       Similar EndFunctionally related with               ...
UGI’s BusinessesDiversification through:            Geographies                                    Value chain • Operation...
Diversified Growth Opportunities          UGI has a variety of initiatives in place to drive growth in all its businesses ...
Total Shareholder Return Proposition                                                                ~ 14%UGI is a balanced...
The UGI “Virtuous Circle”Income-producing businesses generate cash for growth            opportunities and dividendsBase b...
The UGI “Virtuous Circle”     Income-producing businesses generate cash for growth                 opportunities and divid...
Our Track Record     Goals:                                               Capital            4%        6-10%              ...
Dividend Performance History                      UGI has paid uninterrupted            4%                      dividends ...
Total Shareholder ReturnTotal Return CAGR (%)e                              3 yr     5 yr      10 yr                      ...
Fiscal 2013 GuidanceUGI and APU guidance:      $2.45-2.55                                    $630 -$660 MM UGI Corp Fiscal...
Meeting UGI’s growth goals        4%                                          Cash     dividend                           ...
EPS Growth Goals                                                                                    REINVESTMENT OF       ...
Performance Measures                                               7.3% Dividend growth*        Excellent returns        a...
Investment Thesis: FY13-FY15 Enhanced shareholder return achieved by:Meeting or exceeding                        Closing t...
Key “Takeaways” from Todayü Clear understanding of UGI’s earnings growth goals and achievabilityü Clear understanding of e...
Bob Beard                   UGI UtilitiesOctober 17, 2012                   23
Agenda• Keys to Success• Service Territory• Financial Performance• Customer Growth• Infrastructure Management• Looking For...
Keys to SuccessOperations   Focus on fundamentals and safe, efficient operations             Growth core heating customers...
Utilities HistoryUGI operates three natural gas utilities and one electricutility – each separately regulated:   • UGI Uti...
Service TerritoryOctober 17, 2012                       27
Service TerritoryPennsylvania’s largest gas utility   • 45 of the 67 PA counties served   • Service provided in 6 of the t...
Strong Financial Performance$ in millions           2007         2008            2009       2010       2011EBITDA         ...
Conservative Financial Management• Investment-grade credit ratings: A3 / A• Low leverage: Debt-to-total-capitalization und...
Focus on Customer Growth• In 2012 UGI Gas achieved +1.9% net  customer growth                                        Annua...
Historical Growth: ResidentialAnnual Residential Gas Customer Additions              October 17, 2012                   32
Historical Growth: Commercial                                          Commercial Customer Conversions• Record success in ...
Infrastructure Management          UGI Pipeline System                      15%                    Cast Iron /            ...
Infrastructure Management• UGI has proposed replacement of all cast iron main within  14 years and all bare steel main wit...
Constructive Regulatory Environment            Proactive communications with regulators• Base rate cases are generally set...
Looking ForwardWe are driving earnings growththrough: • Customer growth • Investments in infrastructure • Operational prod...
Questions?October 17, 2012                38
Jerry Sheridan                     AmeriGasOctober 17, 2012                    39
History of AmeriGas                   • Started in 1959                   • 165 acquisitions since 1982                   ...
History of Heritage                   160 BrandsOctober 17, 2012                           41
New AmeriGas Profile             AmeriGas provides service to all 50 states8,500+          Employees2,000           Locati...
Competitive Advantages•   Unmatched geographic coverage    •   Customer density = efficiency    •   Advantage in acquisiti...
The Propane Industry                                                       Retail Propane            Outlook              ...
The Propane Industry      AmeriGas Conservation                                                      New Propane-Heated   ...
Strategic Goals Strategic Growth                        AmeriGas Advantage     Initiatives                                ...
Unmatched Nationwide FootprintLargest player in a fragmented industry with 15% market share  Market share (%)  65         ...
Business Diversification                       Customer Base                                                    Geography ...
Strategic Growth Opportunities  AmeriGas Cylinder Exchange                          National Accounts• Counter-seasonal to...
Unit Margin Management         A long track record of exceptional margin management                through volatile propan...
Heritage UpdateHeritage Propane – 1 year later            October 17, 2012                     51
Heritage Timeline   On target to deliver at least $60                   million in net synergies in FY13   Jan           F...
Integration Team Status       TeamField operationsMetro LiftSales & Marketing    • Various teams focused on allNational Ac...
Much Has Gone Well• On pace to achieve at least $60 MM in synergies in  FY13• Implemented comprehensive change management ...
Acquisition Benefit: Critical Mass               AmeriGas District Locations        Before                               A...
Scale Drives Growth                Acquisitions                                                3% - 4%           ACE/Natio...
Our Track RecordGoals:                                      ü Maintain strong liquidity  5%           3%-4%               ...
EBITDA Growth                                                          Adjusted EBITDA ($ millions)1                 $700 ...
Distribution Growth                 Distributions per unit                                                              Di...
Conservative Financial Management                             Leverage Ratio*                                             ...
Questions?October 17, 2012                61
International Propane Panel•   John Walsh, Moderator•   Eric Naddeo•   Reinhard Schödlbauer•   Neil Murphy                ...
CharacteristicsCustomer segments:                                   U.S.      EuropeBulk delivery business (250 – 1,000 ga...
UGI’s Propane Businesses                        Domestic                                 InternationalBrand               ...
European Economic Environment  Economic outlook                             GDP Forecasts For UGI European Operations1  • ...
Unit Margin ManagementIntl. Propane has demonstrated the ability to manage margins in various cost  environments – this is...
UGI Europe Growth InitiativesORGANIC GROWTH:•   Heating Oil to LPG conversions in select countries•   Core bulk segment•  ...
Eric NaddeoAntargaz              October 17, 2012   68
One of the largest LPG Distributors in FranceLarge customer base:   • ~200,000 bulk customers   • ~300 MM gallons   • Over...
Impact of Shell LPG acquisition    Recent Benelux acquisition consolidates Antargaz’s position• Strong position in both cy...
Market Position  Strong market position combined with steady profitability enables                    ambitious growth pro...
Natural gasA new and promising market:•   Antargaz has been authorized by the government    • as a new natural gas supplie...
Market position A track record of increasing                 market share while maintaining strong margins25%   Butane cyl...
Conclusion• A strong, well-known brand• Significant market share of French LPG market• Strong market position in all segme...
Reinhard SchödlbauerFlaga                       October 17, 2012   75
FLAGA Group•   A leading LPG distributor in Central, Eastern    & Northern Europe•   Over 200 million retail gallons sold ...
FLAGA        from a family business to an Industry Leader1947   Founded by Adolf Bauer       Acquired by UGI Corporation, ...
Impact of Shell LPG acquisitionOctober 2011: Acquisition of Scandinavian SHELL LPG businesses -FLAGA / UGI now has a signi...
Growth Opportunities in Poland    Economic data:    • GDP growth forecasts:         • 2012 - 2.5%         • 2013 - 2.5%   ...
FLAGA Mid-Term Growth OpportunitiesMid-Term Opportunities• Increase customer density in our  existing markets• Customers c...
Neil MurphyAvantiGas              October 17, 2012   81
AvantiGas Overview• AvantiGas Established October 2011 – Formerly Shell Gas UK (LPG)• Market segments: Aerosol, Agricultur...
AvantiGas OverviewBoth geographic and industry growthopportunities:    • New geographies (Northern      Ireland, Ireland, ...
Future Developments for AvantiGas• Deliver the acquisition business plan• Pursue segment-specific growth• Leverage Pan-Eur...
Questions?             October 17, 2012   85
15 minute break                  October 17, 2012   86
Brad HallMidstream & Marketing               October 17, 2012
Overview                       Lines of Business Marketing               Generation                Midstream     Natural G...
OverviewNet Income: FY01 ~$4MM, FY06 ~$31MM, FY11 ~$53MM  Marketing           Generation           Midstream  55% of histo...
Commodity MarketingWe supply over 100 bcf of gas and over 2 MM MWhrs of power to 40,000commercial and industrial facilitie...
Commodity Marketing        Consistent, disciplined approach results in steady        earnings growth through numerous disr...
Commodity Marketing     Drivers: Organic growth / margin management / Strong credit review process / working capital disci...
Electric GenerationElectric generation strategy:• Our electric generation assets are former utility  rate plants that have...
Electric Generation     Drivers: Capacity payments / forward strip / gas prices• Electric Generation is not expected to be...
Natural Gas PeakingA customized, low-cost alternative to firm pipelinecapacity designed to serve a Utility’s needs on thec...
Ancillary LNG Opportunities In July, UGI started supplying drill rigs in the Marcellus with LNG   • LNG displaces diesel i...
Midstream   UGI footprint and the Marcellus Shale            Erie                                                         ...
Midstream StrategyLeverage UGI’s geographic position/demand, assets, and intellectual capital to build a significant midst...
Midstream Storage Assets                        ~ 15 Bcf in North-Central PA               Dominion Transmission          ...
Pipelines and Gathering: Auburn I• 9 miles of existing 12” pipeline• Runs north to Tennessee Interstate Pipeline•   Capaci...
Pipelines and Gathering: Auburn II• 28 miles 24”/12” pipeline• Will run south to Transco and UGI  PNG• Capacity 380,000 Dt...
Pipelines: Commonwealth•   Begins at MARC I and ends at the    Eagle interconnect near Downington,    PA•   Includes inter...
Midstream Drivers: Timely project completions / ROEs = expected returns• Targeting growth of 15%-20% primarily due to new ...
Questions?             October 17, 2012
John WalshPresident & COO                  October 17, 2012   105
What you have heard so far…   UGI Corporation is a balanced growth and income investment             AmeriGas             ...
Total Shareholder Return Proposition                                                                ~ 14%UGI is a balanced...
Dividend Growth  ü Consistently at or in excess of 4% (>7% 10-year CAGR)  ü Significant excess cash generation        $1.1...
EPS: Where will the growth come from?$3.10$2.80$2.50$2.20$1.90$1.60$1.30$1.00        2013 guidance             2014      2...
EPS Growth: 6% to 10%                                                                                    REINVESTMENT OF  ...
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
Analyst day presentation 10.07.12
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Analyst day presentation 10.07.12

  1. 1. 2012 Analyst Day October 17, 2012 1
  2. 2. About This PresentationThis presentation contains certain forward-looking statements that managementbelieves to be reasonable as of today’s date only. Actual results may differsignificantly because of risks and uncertainties that are difficult to predict and manyof which are beyond management’s control. You should read UGI’s Annual Report onForm 10-K for a more extensive list of factors that could affect results. Among themare adverse weather conditions, cost volatility and availability of all energy products,including propane, natural gas, electricity and fuel oil, increased customerconservation measures, the impact of pending and future legal proceedings,domestic and international political, regulatory and economic conditions includingcurrency exchange rate fluctuations (particularly the euro), the timing of developmentof Marcellus Shale gas production, the timing and success of our commercialinitiatives and investments to grow our business, and our ability to successfullyintegrate acquired businesses, including Heritage Propane, and achieve anticipatedsynergies. UGI undertakes no obligation to release revisions to its forward-lookingstatements to reflect events or circumstances occurring after today. October 17, 2012 2
  3. 3. Management TeamUGI Corporation Business Unit ManagementLon Greenberg Jerry SheridanJohn Walsh Paul GradyKirk Oliver John IannarelliDavinder Athwal Brad HallSimon Bowman Angela RodriguezHugh Gallagher Bob BeardMonica Gaudiosi Donald BrownJessica Milner Neil Murphy Eric Naddeo Reinhard Schödlbauer October 17, 2012 3
  4. 4. Agenda8:30 AM Hugh Gallagher – Introductions8:35 AM Lon Greenberg – Opening Remarks9:00 AM Bob Beard – Utilities9:25 AM Jerry Sheridan – AmeriGas9:55 AM John Walsh – International Propane Panel Discussion10:35 AM Break10:50 AM Brad Hall – Midstream & Marketing11:30 AM John Walsh – Financial Outlook11:45 AM Lon Greenberg – Closing Remarks/Q&A Session12:30 PM Lunch October 17, 2012 4
  5. 5. Lon GreenbergChairman & CEO October 17, 2012 5
  6. 6. About UGI Corporation UGI Corporation is a distributor and marketer of energy products and services including natural gas, propane, butane, and electricity. UGI Corporation (NYSE: UGI) Domestic Propane* International Midstream and Utilities Propane Marketing (NYSE: APU) 100+ local brand names*100% GP interest and 25% of outstanding LP units October 17, 2012 6
  7. 7. About UGI Corporation UGI operates in 50 states and 16 European countries AmeriGas also operates in Hawaii and AlaskaDomestic International Midstream & UGI UtilitiesPropane Propane Marketing October 17, 2012 7
  8. 8. UGI’s Businesses Similar EndFunctionally related with Uses (heating, numerous common Margin / cooking, commercial applications) Similar customer attributes pricing mix management (Residential and commercial) Common approach to Common Large number of hedging / risk small dollar management Attributes transactions Distribution / Common logistics businesses suppliers (via truck, Leverage (refiners, pipeline, wires) producers) intellectual capital or physical assets October 17, 2012 8
  9. 9. UGI’s BusinessesDiversification through: Geographies Value chain • Operations across the United States • Operations range from generation, and 16 European countries gathering, storage, transportation, and sale to the end user Customer segments Commodities • Retail end-users • Natural gas • Commercial/Industrial users • Propane/Butane • Wholesale • Electricity This Diversification = less risk, diversified income, cash flows, & unique growth opportunities October 17, 2012 9
  10. 10. Diversified Growth Opportunities UGI has a variety of initiatives in place to drive growth in all its businesses 15 Bcf gas storage Gas gathering Acquisitions / pipelines Cylinder exchange and Natural gas national peaking accounts Natural gas Energy marketing marketing Organic Incorporate growth Marcellus into opportunities Utilities supply CustomerAcquisitions UGI Corp conversions International Propane Domestic Propane Midstream & Marketing UGI Utilities October 17, 2012 10
  11. 11. Total Shareholder Return Proposition ~ 14%UGI is a balanced growth and income investment 4% dividend growth ~ 10% Reinvestment 4% of Cash dividend 3% - 4% growth ~ 8% EPS growth EPS growth from 4% from projects dividend growth projects 2% - 3% 2% - 3% Base EPS Base EPS Growth Base EPS Growth Growth 3%-4% 3%-4% 3%-4% October 17, 2012 11
  12. 12. The UGI “Virtuous Circle”Income-producing businesses generate cash for growth opportunities and dividendsBase business earnings Cash flow Dividends growth Incremental Organic earnings investment growth and M&A October 17, 2012 12
  13. 13. The UGI “Virtuous Circle” Income-producing businesses generate cash for growth opportunities and dividends Cash flow Dividends $250 MM- Base business earnings growth $125 MM- 3-4% $290 MM* $140 MM* Organic investment and M&A1 $125 MM- Incremental earnings growth 3-6% $150 MM**multi-year average forecast1 after business unit CAPEX October 17, 2012 13
  14. 14. Our Track Record Goals: Capital 4% 6-10% investment and M&A to Generate cash flow to pay for both growth strengthen our Dividend EPS growth position across projects and growth target target dividend units Accomplishments: Heritage 7.3% 13.0% acquisition $125+ MM Shell LPG Dividend EPS growth acquisition of investable growth (10- (10-year cash generated LNG storage annually year CAGR*) CAGR*) expansion*through FY11 October 17, 2012 14
  15. 15. Dividend Performance History UGI has paid uninterrupted 4% dividends for 128 years and Dividend growth target increased its dividend for the past 25 consecutive years 7.3% Dividend growth (10- year CAGR*)*through FY11 October 17, 2012 15
  16. 16. Total Shareholder ReturnTotal Return CAGR (%)e 3 yr 5 yr 10 yr 300UGI 12.0 7.6 13.7S&P 500 Utilities 12.3 2.4 11.3 UGIS&P 400 Midcap 14.3 3.8 10.8 225S&P 500 13.2 1.1 8.0 Total Return (%) 150 75 - Sep-02 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-12 Sep-11 UGI S&P 500 S&P 500 Utilities S&P 400 Mid Cap October 17, 2012 16
  17. 17. Fiscal 2013 GuidanceUGI and APU guidance: $2.45-2.55 $630 -$660 MM UGI Corp Fiscal Year 2013 EPS AmeriGas Partners Fiscal Year 2013 Guidance EBITDA Guidance More details on Fiscal 2013 guidance to follow… October 17, 2012 17
  18. 18. Meeting UGI’s growth goals 4% Cash dividend generation growth Midstream Investments, Intl./domestic Reinvestment propane acq., of Cash 3% - 4% Utility acq. Auburn II, Storage EPS growth from enhancements, LNG projects expansion, gathering systems, 2% - 3% Commonwealth Utility conversions/growth, AmeriGasBase EPS Growth EBITDA growth, Midstream & Marketing organic growth, natural 3%-4% gas marketing in France, etc. October 17, 2012 18
  19. 19. EPS Growth Goals REINVESTMENT OF $3.25 CASH:2013 guidance Midstream investments $3.00 Propane acquisitions - Int’l & domestic Utility acquisitions $2.75 PROJECTS: $2.50 Auburn II, Storage enhancements, LNG 2013 guidance expansion, gathering 2013 guidance systems, Commonwealth $2.25 $2.00 BASE GROWTH: Utility conversions/growth, AmeriGas 2013 2014 2015 EBITDA growth, Midstream & Marketing organic growth, natural gas marketing in France, etc. October 17, 2012 19
  20. 20. Performance Measures 7.3% Dividend growth* Excellent returns at a below-group multiple! 13.0% Earnings growth* 12.8x Forward P/E ratio Versus selected industry group1 at 15.4x*10-year CAGR through FY111Industry group includes SJI, WGL, NWN,NJR, ATO, GAS, STR, NFG, EGN October 17, 2012 20
  21. 21. Investment Thesis: FY13-FY15 Enhanced shareholder return achieved by:Meeting or exceeding Closing the our targets: “information gap”• 4%+ dividend growth • Increased information about• 6% to 10% EPS growth our businesses • Increased investor outreach • Better understanding of how UGI fits into the energy spaceThis will result in: • Stock price appreciation • Elimination of P/E valuation discount October 17, 2012 21
  22. 22. Key “Takeaways” from Todayü Clear understanding of UGI’s earnings growth goals and achievabilityü Clear understanding of each business unit’s key strategic initiativesü UGI expectations for the sources of future earnings and cash flowUGI is: • a diversified energy company offering balanced growth and income • 6% to 10% annual EPS growth • 4% annual dividend growth • significant cash generation for reinvestment (>$125MM per year) • an experienced management team • a track record of executing on organic and M&A growth opportunities in all of our businesses October 17, 2012 22
  23. 23. Bob Beard UGI UtilitiesOctober 17, 2012 23
  24. 24. Agenda• Keys to Success• Service Territory• Financial Performance• Customer Growth• Infrastructure Management• Looking Forward October 17, 2012 24
  25. 25. Keys to SuccessOperations Focus on fundamentals and safe, efficient operations Growth core heating customers by 1-2% annually in Growth current economic environment Service Remain a leader in customer satisfaction Proactive engagement with our regulatory, legislative,Regulation and municipal stakeholders October 17, 2012 25
  26. 26. Utilities HistoryUGI operates three natural gas utilities and one electricutility – each separately regulated: • UGI Utilities – UGI Gas in operation for over 130 years • Acquired UGI Penn Natural Gas in 2006 • Acquired UGI Central Penn Gas in 2008 • UGI Utilities – Electric (UGI Electric) – since 1925 October 17, 2012 26
  27. 27. Service TerritoryOctober 17, 2012 27
  28. 28. Service TerritoryPennsylvania’s largest gas utility • 45 of the 67 PA counties served • Service provided in 6 of the top 10 PA population centers • Service provided in 709 PA municipalitiesWide range of customer opportunities • ~600,000 gas customers adjacent to the Marcellus Shale region • ~60,000 electric customersAttractive and growing service areas • Gas Utility customer growth of ~2% in 2012 • UGI System covers 28% of the total square miles in PA • Approximately 12,000 miles of main October 17, 2012 28
  29. 29. Strong Financial Performance$ in millions 2007 2008 2009 2010 2011EBITDA $ 206.0 $ 204.3 $ 220.5 $ 243.0 $ 264.0D&A (40.9) (41.2) (51.1) (53.5) (52.6)EBIT 165.1 163.1 169.4 189.5 211.4Interest (42.3) (39.1) (43.9) (42.3) (42.7)Taxes (48.6) (50.0) (46.8) (56.9) (63.5)Net Income $ 74.2 $ 74.0 $ 78.7 $ 90.3 $ 105.2Dividends $ 40.0 $ 68.8 $ 61.2 $ 74.0 $ 99.5Debt / EBITDA 3.5x 2.9x 3.6x 2.7x 2.4xEBITDA / Interest 4.9x 5.2x 5.0x 5.7x 6.2x October 17, 2012 29
  30. 30. Conservative Financial Management• Investment-grade credit ratings: A3 / A• Low leverage: Debt-to-total-capitalization under 50%• Favorable debt maturity profile • $40 MM maturing in FY12 – repaid • $133 MM maturing in FY13 – refinancing is largely hedged• Strong liquidity • $300 MM working capital facility through October 31, 2015 • Over $290 MM of available liquidity at September 30, 2012 October 17, 2012 30
  31. 31. Focus on Customer Growth• In 2012 UGI Gas achieved +1.9% net customer growth Annual Natural Gas Savings over Oil• Focused on customer conversions from oil and other fuels $1,553 $1,485• Historical growth was from new housing market $922 $860• Estimate that ~500,000 potential customers in proximity to UGI’s $517 mains• The vast majority of conversions are oil customers within 75 to 100 feet 2008 2009 2010 2011 2012 of our mains October 17, 2012 31
  32. 32. Historical Growth: ResidentialAnnual Residential Gas Customer Additions October 17, 2012 32
  33. 33. Historical Growth: Commercial Commercial Customer Conversions• Record success in commercial conversions in 5,794 2012 4,845• Launching new fall 4,007 4,095 campaign targeted at small businesses 3,402 2,985• Multiple large C&I 2,232 conversions in 2012 and 1,719 scheduled for 2013 927• Increased interest in NGV fleets 34 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 October 17, 2012 33
  34. 34. Infrastructure Management UGI Pipeline System 15% Cast Iron / Bare Steel 85% Ahead of other PA Utilities: Contemporary 73% avg.• UGI has an aggressive capital replacement plan• 531 miles of cast iron and bare steel pipe replaced in last 10 years October 17, 2012 34
  35. 35. Infrastructure Management• UGI has proposed replacement of all cast iron main within 14 years and all bare steel main within 30 years• We have accelerated our spending and rate of replacement in infrastructure over the last 5 years Replacement Investment ($MM) 71.2 60.3 60.3 50.0 40.5 2009 2010 2011 2012 2013 October 17, 2012 35
  36. 36. Constructive Regulatory Environment Proactive communications with regulators• Base rate cases are generally settled in less than 9 months• Distribution System Improvement Charge (DSIC) approved in 2012 provides a quarterly surcharge to recover cost of infrastructure updates o Uses a fully forecasted test year of capital spending and expenses o Water companies in PA already had DSIC eligibility• All universal service (customer assistance) programs allow for full cost recovery• Fixed monthly customer charges help to reduce the reliance on heating degree days• PNG and CPG environmental and MGP-related costs are fully recoverable October 17, 2012 36
  37. 37. Looking ForwardWe are driving earnings growththrough: • Customer growth • Investments in infrastructure • Operational productivity • Continued addition of Marcellus shale gas into our distribution system October 17, 2012 37
  38. 38. Questions?October 17, 2012 38
  39. 39. Jerry Sheridan AmeriGasOctober 17, 2012 39
  40. 40. History of AmeriGas • Started in 1959 • 165 acquisitions since 1982 • Cal Gas acquisition in 1987 • Petrolane acquisition in 1993 • IPO as an MLP in 1995 • Columbia acquisition in 2001 • Heritage acquisition in 2012October 17, 2012 40
  41. 41. History of Heritage 160 BrandsOctober 17, 2012 41
  42. 42. New AmeriGas Profile AmeriGas provides service to all 50 states8,500+ Employees2,000 Locations2+ million Customers1.2+ billion Propane gallons sold annually8,000+ Bobtails and service trucks in fleet October 17, 2012 42
  43. 43. Competitive Advantages• Unmatched geographic coverage • Customer density = efficiency • Advantage in acquisitions, serving multi-state customers• Geographic and end-use diversity• Size provides purchasing advantage• Counter-seasonal business (ACE) and non-volumetric revenue streams (AmeriGuard, fuel surcharges) reduce reliance on heating degree days• Track record of acquisitions & delivering pro forma results• Strong balance sheet - supports continued growth October 17, 2012 43
  44. 44. The Propane Industry Retail Propane Outlook Consumption Trends*Supply• Supply continues to grow in the US as more wet-gas shale 11 production comes on line 10• Exports rising, bolstered by Asia 9• Relatively stable wholesale costs 8 expected for the near future 7 6Historical Retail Demand* 5• 2.9% annual decline in retail 4 propane consumption from 2005- 3 2011 2 1Forecasted Retail Demand* 0• Flat to slightly increasing in the 2005 2006 2007 2008 2009 2010 2011 near term (economic recovery, Retail Propane Volume - billion gallons housing starts) *American Petroleum Institute and ICF International October 17, 2012 44
  45. 45. The Propane Industry AmeriGas Conservation New Propane-Heated Study(1) Homes (2) Conservation has been 1%-2%; A nascent housing market recovery lower future propane prices will and commercial expansion will helpmitigate price-induced conservation offset structural conservation525 1.5% annual conservation 140,000500 120,000475 100,000450 80,000425 60,000400 40,000375 20,000350 0 2009 2010 2011 2012 2005 2006 2007 2008 2009 2010 2011 2012(f) Same customer sales(1) Annual study of AmeriGas heating customers – weather adjusted (2) U.S. Census Bureau, Survey of Construction 2000-2010 and American Housing Survey, American Community Survey, ICF estimates October 17, 2012 45
  46. 46. Strategic Goals Strategic Growth AmeriGas Advantage Initiatives • Leverage extensive distribution networkNational Accounts • Dedicated customer service / billing team • Counter seasonal summer businessAmeriGas Cylinder • Nationwide distribution footprint Exchange • Nationwide footprint provides synergy opportunities Acquisitions • Acquisition integration is a core strength October 17, 2012 46
  47. 47. Unmatched Nationwide FootprintLargest player in a fragmented industry with 15% market share Market share (%) 65 60.7 15.1 15 10 8.9 7.2 5 3.2 2.4 0.9 0.8 0.8 0 AmeriGas + Ferrellgas Suburban/ Growmark Cenex MFA Oil United Blossman All Heritage Inergy Co. Propane Gas Inc. Others Gas October 17, 2012 47
  48. 48. Business Diversification Customer Base Geography 23% 36% Southwest 24% 47% Commercial/ Industrial Residential Northwest 26% Northeast 27% Southeast 11% Transport 3% 3% Agriculture Motor FuelBased upon combined AmeriGas and Heritage retail gallons sold October 17, 2012 48for the 12 month period ended December 31, 2011
  49. 49. Strategic Growth Opportunities AmeriGas Cylinder Exchange National Accounts• Counter-seasonal to heating • Leverages national footprint season • Service multiple locations – one bill• Significant scale - 41,000 distribution points • Centralized account management• 13 million cylinders per year • Expected to grow at 3%-5% annually• Expected to grow at 3%-4% annually 16,000 14,000 12,000 10,000 8,000 ü Over 200 customers 6,000 4,000 ü Serves 31,000 locations 2,000 0 October 17, 2012 49
  50. 50. Unit Margin Management A long track record of exceptional margin management through volatile propane cost environments $1.80 $1.80 $1.60 $1.60Propane Unit Margins Avg. Mt. Belvieu Cost $1.40 $1.40 $1.20 $1.20 $1.00 $1.00 $0.80 $0.80 $0.60 $0.60 $0.40 $0.40 $0.20 $0.20 $0.00 $0.00 2005 2006 2007 2008 2009 2010 2011 2012(F) Avg. Mt. Belvieu Cost Propane Unit Margins October 17, 2012 50
  51. 51. Heritage UpdateHeritage Propane – 1 year later October 17, 2012 51
  52. 52. Heritage Timeline On target to deliver at least $60 million in net synergies in FY13 Jan Feb Mar Apr May Jun Jul Aug Septü$1.55 billion ü $289MM ü Leadership ü New business ü All back üFY 12 HY debt Equity Team model office blends financing offering appointed finalized functions completed down to the consolidatedüAcquisition ü $200 MM District ü Training for all completed Debt tender Managers Heritage ManagersTo Be Done FY13 - Final consolidation of 206 stores October 17, 2012 52
  53. 53. Integration Team Status TeamField operationsMetro LiftSales & Marketing • Various teams focused on allNational Accounts aspects of the integrationSupply & LogisticsReal Estate • Managed by an IntegrationITSAP Management OfficeFinanceProcurement • All projects on scheduleFee IncomeTaxHR and PayrollSynergy Tracking October 17, 2012 53
  54. 54. Much Has Gone Well• On pace to achieve at least $60 MM in synergies in FY13• Implemented comprehensive change management program• Built new leadership team that meshed leaders from both organizations• Successfully merging two different cultures October 17, 2012 54
  55. 55. Acquisition Benefit: Critical Mass AmeriGas District Locations Before After Consolidation 4.7% 17.2% 39.0% 44.0% 51.4% 43.8%<1MM Gallons 1-3MM Gallons >3MM Gallons Larger Districts Bring Greater Profitability October 17, 2012 55
  56. 56. Scale Drives Growth Acquisitions 3% - 4% ACE/National Accounts EBITDA Growth Biggest Sales Force in the Industry Better Segmentation – Really Understand Our CustomerGreat Customer Service – Delight the Customer October 17, 2012 56
  57. 57. Our Track RecordGoals: ü Maintain strong liquidity 5% 3%-4% ü Sound balance sheetDistribution EBITDA ü Conservative credit Growth Growth metricsAccomplishments: 5.5% 5.6% $525MM Revolving Credit FacilityDistribution EBITDA Balance sheet strength growth growth utilized to complete Heritage2006-2012 2006-2011 transaction October 17, 2012 57
  58. 58. EBITDA Growth Adjusted EBITDA ($ millions)1 $700 $645 $600 $500 $400 $300 $200 $100 $0 2006 2007 2008 2009 2010 2011 2012 2013(1) See appendix for reconciliation of historical adjusted EBITDA to Net Income. 2012 and 2013 represent the midpoint of current guidance as disclosed in the press release dated October 16, 2012 October 17, 2012 58
  59. 59. Distribution Growth Distributions per unit Distribution Coverage * (excluding special distributions) 1.5 1.4 $3.20 1.4 1.3 1.3 1.3 1.2 $2.96 $2.82 $2.68 0.7 $2.56 $2.44 $2.32 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012 2013 (F) (G)* 2012(F) and 2013(G) are based upon the midpoint of current guidance as disclosed in the press release dated October 16, 2012 and excludeHeritage transition expenses and transition capital expenditures October 17, 2012 59
  60. 60. Conservative Financial Management Leverage Ratio* Strong Financial Profile Debt / Adjusted EBITDA • Credit rating: Moody’s Ba2 / Ba3 • Long term debt < 7.0% on avg. 4.9 • Repaid over $230MM in long-term 4.5 debt since acquisition 3.9 3.7 3.7 • No significant maturities until 2019 3.7 3.5 3.2 3.1 • Growth capex and acquisitions to 3.0 be funded out of cash flow 2.5 2.6 • Liquidity: $427MM of $525MM credit facility available at 9/30/12 Coverage goals: • 1.2x dist. coverage or higher • 3.5x leverage ratio or lower • Use balance sheet strength to 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2013 (G) 2012(F) capitalize on special situations* 2012(F) and 2013(G) represent the midpoint of current guidance as disclosed in thepress release dated October 16, 2012 and include pro forma adjustments as defined inthe Amended and Restated Credit Agreement October 17, 2012 60
  61. 61. Questions?October 17, 2012 61
  62. 62. International Propane Panel• John Walsh, Moderator• Eric Naddeo• Reinhard Schödlbauer• Neil Murphy October 17, 2012 62
  63. 63. CharacteristicsCustomer segments: U.S. EuropeBulk delivery business (250 – 1,000 gallons) √ √Cylinder exchange √ √Motor fuel – forklifts √ √Motor fuel – over the road autogas √Competitive Landscape U.S. EuropeFragmented market √Larger share / fewer independent marketers √Pricing/Margin Management: U.S. EuropeFrequent changes (daily/weekly) √Less frequent (evolving to US model) √Competitive Advantages: U.S. EuropeScale √ √“Hub and spoke” truck-based delivery logistics √ √Risk management – credit and supply √ √Safety √ √Customer service √ √ October 17, 2012 63
  64. 64. UGI’s Propane Businesses Domestic InternationalBrand 100+ local brand namesCountries of France, Belgium, Netherlands, Luxembourg, Austria, U.S. Poland, Czech Republic, Hungary, Slovakia, Romania,operation Switzerland, Norway, Sweden, Denmark, Finland, U.K.Approx volume >1.2 billion (retail) >600 million (retail)(gallons) >100 million (wholesale) > 80 million (wholesale)Forecasted $630-$660 million ~ $200 millionEBITDA (in USD) Ferrellgas, Suburban, Total, SHV, DCC, MOL, Flogas, Calor, Vitogaz,Major Competitors 3,500 independent Independent marketers marketers Cylinder ~ 18% Cylinder ~18% Bulk ~ 74% Bulk ~62%Volume segments Autogas – na Autogas ~8% Wholesale ~ 8% Wholesale ~12% October 17, 2012 64
  65. 65. European Economic Environment Economic outlook GDP Forecasts For UGI European Operations1 • Scandinavia / Central Europe flat %y/y 2013 2014 to modest growth France 0.1% 0.6% • France and UK GDP growth: flat Emerging Europe 2.8% 3.2% • No exposure to Southern Europe U.K. -0.6% 1.4% Fuel consumption patterns • Propane distribution is a basic need for heating, cooking and industrial processes (i.e., a resilient business that can withstand economic downturns) UGI response • All entities across Europe share best practices • Unit margin management is a core competency in Europe, just as it is in the U.S. • AvantiGas is a new brand: additional opportunities for penetration into new markets1Forecasts provided by JPMorgan October 17, 2012 65Economics & Policy Research
  66. 66. Unit Margin ManagementIntl. Propane has demonstrated the ability to manage margins in various cost environments – this is a core strength of all of UGI’s Propane businesses Antargaz Margin History 700 € 700 €Propane Unit Margins (€/T) Avg. Platt’s Cost (€/T) 600 € 600 € 500 € 500 € 400 € 400 € 300 € 300 € 200 € 200 € Avg. Platts Cost Propane Unit Margins October 17, 2012 66
  67. 67. UGI Europe Growth InitiativesORGANIC GROWTH:• Heating Oil to LPG conversions in select countries• Core bulk segment• Penetration of new LPG markets in U.K.• Residential customer growth in Poland• Composite cylinder for specific channels• Commercial bulk business in Poland and Scandinavia• Expand natural gas marketing segment• Piped network development in France and PolandACQUISITION GROWTH:• Pursue opportunities to enhance position in current markets• Potential to build-out position in Northern and Central Europe October 17, 2012 67
  68. 68. Eric NaddeoAntargaz October 17, 2012 68
  69. 69. One of the largest LPG Distributors in FranceLarge customer base: • ~200,000 bulk customers • ~300 MM gallons • Over 3 million cylinder customers Cuijk • 24% market share q Gent Diegem q Nannine q q Valenciennes Waime q Le Havre s q HabayCompetitive advantages: Courbevoie Bertrange • Independent supply structure q Queven q Ris q Herrlisheim q St Georges • Customer density = efficiency q Vern q Bourogne q Donges • Strong logistics organization q St Barthélemy q Niort q Massay q Genlis q Gimeux q FeyzinFocus on: q Cournon • Customer satisfaction q Ambès q Domène • Innovation q Nérac q Calmont • Developing new market segments q Lacq q Loriol q Lavera q La Garde q Boussens Head office q Fully owned facilities q PLN q Partially owned facilities Filling plant Seaborne import facilities q Ajaccio with primary storage October 17, 2012 69
  70. 70. Impact of Shell LPG acquisition Recent Benelux acquisition consolidates Antargaz’s position• Strong position in both cylinder & bulk segments (approx 50 million gallons)• Market leader in Belgium, Luxembourg, significant share in Netherlands• Portfolio of over 35,000 bulk customers and 1,000 cylinder retailers• Synergies between France and Benelux: • Marketing (Brand name, product development) • Supply, industrial plants, logistics • Development of new markets (Nat gas) Netherlands• Potential growth: • Heating oil conversions • Natural gas Belgium Luxembourg October 17, 2012 70
  71. 71. Market Position Strong market position combined with steady profitability enables ambitious growth programsStability of the customer base: • Bulk • Long term contracts • Low churn rate (3%) • Average length of customer relationship: 15 years • Cylinder • Close links with the supermarket chains • Presence in 7,700 points of sale • Successful partnership with the Carrefour Group • Complete range of products to meet all consumer needs October 17, 2012 71
  72. 72. Natural gasA new and promising market:• Antargaz has been authorized by the government • as a new natural gas supplier • the only propane company active on the gas market• Antargaz is focused on the most profitable segment of the market: the 700,000 small and medium C&I consumers • Similar approach to our US strategy • Over 4 million Dth in contracts signed in 2012• Antargaz has developed a strategy of sales, marketing, and supply/IT resources to assure steady growth• In a fully deregulated market, Antargaz should be able to convert approximately 10 % of C&I market available to alternative nat gas suppliers• Expected annual EBITDA contribution of €2 MM to €5 MM over next several years October 17, 2012 72
  73. 73. Market position A track record of increasing market share while maintaining strong margins25% Butane cylinder €/Ton Gross Margin 120024%23% 110022%21% 100020% 90019% 2007 2008 2009 2010 2011 800 70025% 600 Propane cylinder24% 500 40023% FY07 FY08 FY09 FY10 FY11 FY1222% Propane Cylinder Butane Cylinder 2007 2008 2009 2010 2011 Propane Small Bulk All LPG segments average October 17, 2012 73
  74. 74. Conclusion• A strong, well-known brand• Significant market share of French LPG market• Strong market position in all segments• A focus on innovation and flexibility• Continue to seek new growth opportunities in the LPG and natural gas markets October 17, 2012 74
  75. 75. Reinhard SchödlbauerFlaga October 17, 2012 75
  76. 76. FLAGA Group• A leading LPG distributor in Central, Eastern & Northern Europe• Over 200 million retail gallons sold annually• Operating in 11 countries• 900 employees• Headquartered in Vienna, Austria 20% 21% Cylinder Bulk Autogas 59%October 17, 2012 76
  77. 77. FLAGA from a family business to an Industry Leader1947 Founded by Adolf Bauer Acquired by UGI Corporation, established footprint in Europe1999 Establishment of a Subsidiary in Switzerland2003 Acquisition of BP Czech Gas2004 Acquisition of PROGAS Austria, establishment2006 of J/V in SK, PL, HU, CZ and RO2008 Acquisition of the remaining 50% of JV2010 Acquisition of Shell Gas HU and PL and BP Gas DK Acquisition of Shell Gas Scandinavia2011 October 17, 2012 77
  78. 78. Impact of Shell LPG acquisitionOctober 2011: Acquisition of Scandinavian SHELL LPG businesses -FLAGA / UGI now has a significant presence in ScandinaviaIntegration update:• Detailed integration plan executed and completed August, 2012• Headcount reduction ~ 25%• Current status:• Operational merger and integration complete• No customer loss during integration process• Converted to FLAGA / UGI philosophy and processes• Will achieve all major pre-acquisition expectations October 17, 2012 78
  79. 79. Growth Opportunities in Poland Economic data: • GDP growth forecasts: • 2012 - 2.5% • 2013 - 2.5% • 2014 - 3.8% • Debt/GDP around 56%, forecast at 50% in 2014 ~ 38 million pop ~41 million popMarket: ~ 120,000 sq mi ~110,000 sq mi• Third largest LPG market in Europe ~ 1.2 billion gallons• Market consolidation under way – small regional players• UGI acquired Shell Gas Poland in 2011• Size of UGI Poland: over 65 million gallons and growingSignificant Growth Opportunities:• Highest number of new bulk installations in Europe• Growing commercial / industrial segment• Piped networks for small communities and developments• Largest shale gas field in Europe October 17, 2012 79
  80. 80. FLAGA Mid-Term Growth OpportunitiesMid-Term Opportunities• Increase customer density in our existing markets• Customers conversions from heating oil (Scandinavia)• Organic growth in developing Eastern European markets like Poland and Hungary• “Tuck-in” acquisitions• Expansion into new markets, i.e. Germany• Potential volume growth of >100 million gallons October 17, 2012 80
  81. 81. Neil MurphyAvantiGas October 17, 2012 81
  82. 82. AvantiGas Overview• AvantiGas Established October 2011 – Formerly Shell Gas UK (LPG)• Market segments: Aerosol, Agriculture, Commercial, Domestic, Industrial• >130 MM gallons • 42% bulk • 57% wholesale • 1% autogas• 13% Bulk LPG Market share• Strong supply position• Nationwide coverage October 17, 2012 82
  83. 83. AvantiGas OverviewBoth geographic and industry growthopportunities: • New geographies (Northern Ireland, Ireland, Scotland) • Residential bulk expansion • Expansion into new market segments Bulk LPG tonnage 850,000T Other 10% BP 12% Calor 44% AvantiGas 13% Flogas 21% October 17, 2012 83
  84. 84. Future Developments for AvantiGas• Deliver the acquisition business plan• Pursue segment-specific growth• Leverage Pan-European position of UGI to: • Develop a culture of best practice-sharing • Increase coverage of new geographies• Evaluate cylinder position in UK market• Drive value from unique market sectors - Aerosol• Selective acquisitions October 17, 2012 84
  85. 85. Questions? October 17, 2012 85
  86. 86. 15 minute break October 17, 2012 86
  87. 87. Brad HallMidstream & Marketing October 17, 2012
  88. 88. Overview Lines of Business Marketing Generation Midstream Natural Gas Generation Pipelines and• >100 Bcf • Hunlock: 125 MWs Gathering• > 30,000 locations combined cycle• 33 LDCs • Conemaugh: 102 Storage – 15 Bcf MWs coal-fired • Renewable energy: Peaking Power ~ 17 MWs • 1.25 Bcf LNG Storage• > 2 MM MWhrs Capacity• > 10,000 locations • 0.40 Bcf capacity in 6• 19 EDCs Propane Air plants Asset Management • 14 Bcf of storage October 17, 2012 88
  89. 89. OverviewNet Income: FY01 ~$4MM, FY06 ~$31MM, FY11 ~$53MM Marketing Generation Midstream 55% of historical 13% of historical 32% of historical EBIT EBIT EBIT 55% of future <5% of future >40% of future EBIT EBIT EBIT October 17, 2012 89
  90. 90. Commodity MarketingWe supply over 100 bcf of gas and over 2 MM MWhrs of power to 40,000commercial and industrial facilities throughout the Mid-Atlantic region Strategy Target small and medium-size businesses that value our services (hedging, management of energy requirements); we are not a wholesaler Characteristics • Little commodity exposure - back-to-back fulfillment • No trading or speculation • Excellent sales team • Very high customer retention rates • Customer diversification • Strong back office and IT to support the business • Supplier diversification • Very low bad debts rate • Credit insurance on large accounts October 17, 2012 90
  91. 91. Commodity Marketing Consistent, disciplined approach results in steady earnings growth through numerous disruptive events Commodity Marketing Margin 22% warmer than normal $s in 000s winter$80,000 Commodity spike to Katrina/Rita ~$13/Dth and$70,000 price spikes drop to ~$3/Dth$60,000 TXU (last$50,000 acquisition) Other$40,000 Retail Power Enron Natural Gas$30,000 Collapse$20,000$10,000 $- 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 F October 17, 2012 91
  92. 92. Commodity Marketing Drivers: Organic growth / margin management / Strong credit review process / working capital discipline• Targeting organic growth of 5%-7% per year• Historical financial / operational statistics: ($ millions) FY08 FY09 FY10 FY11 FY12 (F) Natural gas margin $ 44.6 $ 45.1 $ 55.6 $ 59.7 $ 42.3 Retail power margin 1.9 4.6 12.3 13.9 18.7 Other margin 1.0 0.7 2.2 3.3 2.9 Total margin 47.5 50.4 70.1 76.9 63.9 Operating Expenses (9.3) (11.4) (14.5) (16.4) (20.8) EBITDA 38.2 39.0 55.6 60.5 43.1 Depreciation and Amortization (1.1) (0.7) (0.3) - - Operating Income $ 37.1 $ 38.3 $ 55.3 $ 60.5 $ 43.1 Key statistics: Total customers serviced: 3,000 8,000 9,000 10,000 18,000 Natural gas: indivdual locations serviced 12,900 24,600 29,000 27,000 32,000 gas transportation systems utilized 33 33 33 33 33 Retail power: indivdual locations serviced 100 400 1,000 3,000 11,000 electric transmission systems utilized 10 10 13 19 19 October 17, 2012 92
  93. 93. Electric GenerationElectric generation strategy:• Our electric generation assets are former utility rate plants that have been modestly expanded in recent years• Our generation portfolio: • provides balancing support for our growing retail power marketing business • reduces supplier creditMajor electric generation assets:• Conemaugh: 6% ownership in Conemaugh, a coal- fired station with a net heat rate of ~ 9,700 btu/kwh (~102 MW)• Hunlock: 100% ownership of natural gas combined cycle plant with a net heat rate of ~7,700 btu/kwh (~125 MW)Renewable electric generation:• landfill gas and solar October 17, 2012 93
  94. 94. Electric Generation Drivers: Capacity payments / forward strip / gas prices• Electric Generation is not expected to be a significant source of earnings growth going forward• Net income contribution: • FY08: ~ $15MM • FY10: ~ $7MM • FY12 (fcst): ~ ($1MM) • Future: ~ $4MM-$8MM – about $.03 to $.06 per share net income contribution October 17, 2012 94
  95. 95. Natural Gas PeakingA customized, low-cost alternative to firm pipelinecapacity designed to serve a Utility’s needs on thecoldest days of winter• Works like an insurance contract – utilities pay to have the asset ready for utilization• Utilities reduce costs by using the cheaper peaking service – thereby lowering customer rates• Peaking facilities generate revenue based upon availability – assets do not have to run to generate earnings• Total margin from peaking has increased by nearly $11MM since FY08, a 12% CAGRUGI’s Peaking Fleet:• 1 Bcf LNG Tank expansion project is completed• LNG capacity is 1.25 Bcf / total peaking capacity is1.65 Bcf• Capacity to serve ~ 290,000 homes for 5 days during operation• Average contract term is >3years October 17, 2012 95
  96. 96. Ancillary LNG Opportunities In July, UGI started supplying drill rigs in the Marcellus with LNG • LNG displaces diesel in field compressors • Active discussions with producers representing over 1 Bcf/yr of potential demand • Very low cost liquefaction creates a competitive advantageOther opportunities: • LNG for transportation • LNG for large commercial facilities that are beyond the reach of gas mains October 17, 2012 96
  97. 97. Midstream UGI footprint and the Marcellus Shale Erie Potter Warren McKean Tioga Bradford Susquehanna Crawford Wayne Forest Wyoming Venango Elk Cameron Sullivan Mercer Lycoming Pike Clinton Clarion Jefferson LuzerneLawrence Monroe Clearfield Union Butler Centre Carbon Armstrong North Umberland Beaver Snyder Indiana Schuylkill Berks Allegheny UGI Storage Cambria Blair Dauphin Bucks Perry LNG Lebanon Westmoreland Huntingdon Propane-Air Washington Cumberland Chester Marcellus Shale Lancaster Auburn I Greene Fayette Somerset Bedford Fulton Franklin Adams York Auburn II Tennessee Transco October 17, 2012 97
  98. 98. Midstream StrategyLeverage UGI’s geographic position/demand, assets, and intellectual capital to build a significant midstream business in the Marcellus • Link supply to markets by leveraging UGI’s existing pipeline infrastructure • Build new capacity from prolific Marcellus areas to market centers in PA and beyond • Integrate pipeline infrastructure with other midstream assets such as storage, peaking, power generation and interstate contracts • Develop integrated products and services to enable utilities to transition from long haul pipelines to local supply options • Provide timely, competitive gathering services to producers October 17, 2012 98
  99. 99. Midstream Storage Assets ~ 15 Bcf in North-Central PA Dominion Transmission Tennessee Pipeline • Tioga : 11 Bcf; 184,000 dth/day • Meeker : 3 Bcf; 30,000 dth/day • Wharton: 1 Bcf; 10,000 dth/day • FERC regulated – Market- based rates• Future plans include the addition of • Investment: $10MM - $12MM pipeline interconnects with Tennessee, • Expected Completion: FY13 wheeling service, direct producer tie-ins, and reservoir expansion October 17, 2012 99
  100. 100. Pipelines and Gathering: Auburn I• 9 miles of existing 12” pipeline• Runs north to Tennessee Interstate Pipeline• Capacity 120,000 Dth/day• Investment: ~ $16 million• Announced: September 2010• At full capacity: February 2012• Anchor Shipper: Citrus Energy Corporation 100 100 October 17, 2012
  101. 101. Pipelines and Gathering: Auburn II• 28 miles 24”/12” pipeline• Will run south to Transco and UGI PNG• Capacity 380,000 Dth/day• Investment: ~ $160 million• Announced: October 2011• Current status: permitting, zoning and right of way acquisition phases• Expected in-service: winter FY14• Shippers include Citrus and UGI PNG 101 101 October 17, 2012
  102. 102. Pipelines: Commonwealth• Begins at MARC I and ends at the Eagle interconnect near Downington, PA• Includes interconnection with UGI’s Temple LNG facility• Approximately 800MMcf / day• UGI and a subsidiary of WGL have executed precedent agreements• Working to sign precedent agreements with additional shippers• The proposed route preserves the option to extend from Eagle to Cove Point, MD• Revised cost estimates prepared over the next 60 days based on more detailed engineering studies Conceptual Route October 17, 2012 102
  103. 103. Midstream Drivers: Timely project completions / ROEs = expected returns• Targeting growth of 15%-20% primarily due to new projects• Historical financial and operating information: ($ millions) FY08 FY09 FY10 FY11 FY12 (F) Peaking margin $ 18.4 $ 22.8 $ 22.5 $ 27.2 $ 29.0 Capacity management margin 10.9 10.9 7.1 9.2 3.4 Storage and gathering margin - - - 8.4 16.7 Total margin 29.3 33.7 29.6 44.8 49.1 Operating Expenses (3.4) (6.9) (4.2) (6.1) (9.1) EBITDA 25.9 26.8 25.4 38.7 40.0 Depreciation and Amortization (1.3) (1.7) (1.9) (2.1) (3.4) Operating Income $ 24.6 $ 25.1 $ 23.5 $ 36.6 $ 36.6 Key statistics: Peaking: LNG capacity (dth/day) 55,000 55,000 55,000 55,000 205,000 Propane air capacity (dth/day) 85,000 85,000 85,000 93,000 93,000 Average length of contract (yrs) 2.9 2.3 5.3 4.2 3.3 Storage Capacity: (BCF) 14.7 14.7 Gathering throughput: (dth/day) 120,000 October 17, 2012 103
  104. 104. Questions? October 17, 2012
  105. 105. John WalshPresident & COO October 17, 2012 105
  106. 106. What you have heard so far… UGI Corporation is a balanced growth and income investment AmeriGas Utilities• Significant scale drives 3% to 4% • Strong service territory EBITDA growth • Organic customer growth through• Diversified by end use and conversions geography • Low risk, A-rated Utility business• Diversification mitigates reliance on weather International Midstream and Marketing• Shell acquisition benefits • Focus on projects to build additional• Innovation (cylinders, nat gas scale as a Midstream business within marketing) the Marcellus• Scale increases bolt-on acquisition • Organic growth in energy marketing opportunities • Development of ancillary LNG• A nascent brand to develop in the UK opportunities October 17, 2012 106
  107. 107. Total Shareholder Return Proposition ~ 14%UGI is a balanced growth and income investment 4% dividend growth ~ 10% Reinvestment 4% of Cash dividend 3% - 4% growth ~ 8% EPS growth EPS growth from 4% from projects dividend growth projects 2% - 3% 2% - 3% Base EPS Base EPS Growth Base EPS Growth Growth 3%-4% 3%-4% 3%-4% October 17, 2012 107
  108. 108. Dividend Growth ü Consistently at or in excess of 4% (>7% 10-year CAGR) ü Significant excess cash generation $1.10 $1.00 $0.90 $0.80 $0.70 $0.60 $0.50 2003 2004 2005 2006 2007 2008 2009 2010 2012 2011*through FY11 October 17, 2012 108
  109. 109. EPS: Where will the growth come from?$3.10$2.80$2.50$2.20$1.90$1.60$1.30$1.00 2013 guidance 2014 2015 October 17, 2012 109
  110. 110. EPS Growth: 6% to 10% REINVESTMENT OF $3.25 CASH:2013 guidance Midstream investments $3.00 Propane acquisitions - Int’l & domestic Utility acquisitions $2.75 PROJECTS: $2.50 Auburn II, Storage enhancements, LNG 2013 guidance expansion, gathering 2013 guidance systems, Commonwealth $2.25 $2.00 BASE GROWTH: Utility conversions/growth, AmeriGas 2013 2014 2015 EBITDA growth, Midstream & Marketing organic growth, natural gas marketing in France, etc. October 17, 2012 110

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