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Adjusted Diluted EPS: $3.06, highest in UGI’s history.
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EPS CAGR: 6% over five years.
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Cost Savings: $75 million reduction in operating and administrative expenses.
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Shareholder Returns: $320 million returned through dividends.
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Dividend CAGR: 6% over the past 10 years.
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Capital Expenditure: $900 million, with 80% allocated to natural gas businesses.
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Debt Reduction: $460 million reduction at AmeriGas.
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Available Liquidity: $1.5 billion at fiscal year-end.
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Utility Customer Growth: Added over 12,000 customers, increasing the base to 962,000.
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Midstream and Marketing EBIT: $313 million, up $22 million year-over-year.
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UGI International EBIT: $323 million, up $89 million year-over-year.
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AmeriGas LPG Volumes: Down 10% due to customer attrition and warmer weather.
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Fiscal 2025 EPS Guidance: $2.75 to $3.05.
Release Date: November 22, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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UGI Corp (NYSE:UGI) achieved the highest adjusted diluted EPS in its history at $3.06, marking a significant financial milestone.
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The company successfully reduced operating and administrative expenses by $75 million, surpassing its cost-saving targets.
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UGI Corp (NYSE:UGI) returned approximately $320 million to shareholders through dividends, maintaining a 140-year history of consecutive dividend payments.
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The company completed significant infrastructure projects, including the Moody RNG project and the Carlyle LNG storage facility, enhancing its operational capabilities.
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UGI Corp (NYSE:UGI) improved its balance sheet by reducing AmeriGas’s debt by $460 million and completing over $2.5 billion in debt financing actions.
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AmeriGas continues to face challenges with a 10% decline in LPG volumes due to customer attrition and warmer weather.
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The company recorded a noncash pretax goodwill impairment charge of approximately $195 million for AmeriGas, reflecting lower growth expectations.
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UGI Corp (NYSE:UGI) anticipates continued volume declines at AmeriGas in fiscal 2025 as it works to stabilize the business.
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The company faces additional distribution costs at UGI International due to damage at a supply port in France, which may not be fully recoverable.
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Higher interest expenses impacted corporate and other segments, contributing to a $0.07 decrease in adjusted EPS.
Q: How do you view the strategic direction of AmeriGas, and what are your immediate priorities for this business? A: Robert Flexon, President and CEO, emphasized the need to stabilize AmeriGas by fixing past practices that contributed to customer churn. The focus is on making the business self-sustaining without additional equity from the parent company. Strategic opportunities may be considered in the future, but the immediate priority is improving performance and cash flow.