UGI CORP PA
For the period ended Jun 30, 2024. Filed Aug 8, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 8, 2024
UGI$37.04-0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-02.
0000884614-24-000055
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-08.
0000884614-24-000072
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 157 previous paragraphs and 165 current paragraphs.
66 unchanged; 75 reworded; 24 added; 14 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 13 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (24)
Current report
International; (5) loss on extinguishments of debt of $5 million, primarily at AmeriGas Propane; and (6) $2 million of costs associated with the exit of our UGI International energy marketing business in Europe.
Current report
Midstream & Marketing’s adjusted net income attributable to UGI Corporation in the 2024 three-month period was comparable to the prior-year period as slightly lower total margin was largely offset by lower operating and administrative expenses.
Current report
AmeriGas Propane’s adjusted net loss attributable to UGI Corporation increased $1 million in the 2024 three-month period as lower total margin, primarily resulting from lower retail propane volumes sold and lower average retail propane unit margins, was largely offset by lower operating and administrative expenses.
Current report
2024 nine-month period compared with 2023 nine-month period
Current report
Midstream & Marketing total margin was comparable to the prior-year period as higher storage and natural gas pipeline gathering margin was offset by lower total margin from natural gas marketing activities, reflecting the effects of lower capacity management margin.
Current report
Total margin decreased $35 million in the 2024 three-month period largely attributable to the lower retail propane volumes sold ($28 million) and lower average retail propane unit margins ($5 million).
Current report
Operating loss and loss before interest expense and income taxes increased $19 million during the 2023 three-month period, primarily reflecting the decrease in total margin ($35 million), partially offset by lower operating and administrative expenses ($17 million). The decrease in operating and administrative expenses reflects, among other things, lower compensation expenses and advertising expenses.
Current report
2024 Nine-Month Period Compared with the 2023 Nine-Month Period
Current report
Our consolidated interest expense during the 2024 nine-month period was $296 million compared to $281 million during the 2023 nine-month period. The increase largely reflects higher total long-term debt interest expense including the effects of higher average long-term debt outstanding at Utilities and Midstream & Marketing and a higher average interest rate on UGI International long-term debt, partially offset by lower average long-term debt outstanding at AmeriGas Propane. The increase in long-term debt interest expense was partially offset by lower short-term debt interest expense principally reflecting the effects of lower average credit agreement borrowings during the 2024 nine-month period.
Current report
(c)Terminated in August 2024, concurrent with entering into the AmeriGas Senior Secured Revolving Credit Facility (see additional information below under AmeriGas Senior Secured Revolving Credit Facility).
Current report
Energy Services Term Loan Credit Agreement. In June 2024, Energy Services entered into the second amendment to the Energy Services Term Loan Credit Agreement. The Energy Services Term Loan Credit Agreement was amended primarily to amend the applicable margins on borrowings to 2.50% per annum for Term SOFR loans and 1.50% per annum for base rate loans.
Current report
Energy Services Credit Agreement. In May 2024, Energy Services entered into the fourth amendment to the UGI Energy Services Credit Agreement. The amended credit agreement provides for borrowings up to $300 million, including a $50 million sublimit for letters of credit. Borrowings under the credit agreement can be used for general corporate purposes and ongoing working capital needs of Energy Services and is scheduled to expire in May 2028.
Current report
UGI International 2023 Credit Agreement. In June 2024, UGI International, LLC and its indirect wholly-owned subsidiary, UGI International Holdings B.V., entered into the first amendment to the UGI International 2023 Credit Agreement, which provides for the establishment and incorporation of specific key performance indicators with respect to Environmental, Social and Governance targets, whereby based on UGI International, LLC’s performance against the key performance indicators, certain adjustments of up to 0.05% in total to the applicable margin may be made.
Current report
AmeriGas Senior Secured Revolving Credit Facility. In August 2024, AmeriGas OLP entered into the AmeriGas Senior Secured Revolving Credit Facility, a five-year senior secured revolving credit facility maturing August 2029, providing for borrowings up to $200 million (including a $20 million sublimit for letters of credit). AmeriGas OLP may request an increase in the amount of loan commitments up to a maximum aggregate amount of $150 million. Borrowings under this credit facility were used to pay off borrowings under the 2022 AmeriGas OLP Credit Agreement and are available for general corporate purposes and ongoing working capital needs of AmeriGas OLP. Concurrently with entering into AmeriGas Senior Secured
Current report
Revolving Credit Facility, AmeriGas OLP terminated the 2022 AmeriGas OLP Credit Agreement and with it, eliminated the debt to EBITDA covenant ratio.
Current report
AmeriGas Partners Senior Notes. In June 2024, pursuant to an early tender offer, AmeriGas Partners and AmeriGas Finance Corp, repurchased $475 million aggregate principal amount of the 5.50% Senior Notes due May 2025. Cash on hand, a $315 million cash contribution from the Company and other sources of liquidity were used for the repurchase. Following the repurchase, $218 million aggregate principal amount of these senior notes remain outstanding at June 30, 2024.
Current report
UGI Corporation
Current report
UGI Corporation Senior Notes. In June 2024, UGI issued, in an underwritten private placement, an aggregate $700 million principal amount of 5.00% UGI Corporation Senior Notes due June 2028. The UGI Corporation Senior Notes are senior, unsecured obligations and rank equal in right of payment with our existing and future senior, unsecured indebtedness. Interest is payable semi-annually on June 1 and December 1 of each year, beginning on December 1, 2024, and will mature on June 1, 2028, unless earlier repurchased or converted. The net proceeds from the issuance of the UGI Corporation Senior Notes of approximately $682 million, after underwriters fees and other debt issuance costs, were used (1) to repay a portion of borrowings under the UGI Corporation Credit Facilities; (2) to make cash contribution of $315 million to the Partnership to repay a portion of its 5.50% Senior Notes as described above; and (3) for general corporate purposes.
Current report
The UGI Corporation Senior Notes are convertible subject to the occurrence of certain events and circumstances. Before March 1, 2028, noteholders will have the right to convert their notes only upon the occurrence of certain events. From and after March 1, 2028, holders of the UGI Corporation Senior Notes may convert their notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. As of June 30, 2024, none of the events permitting the noteholders to convert their notes early occurred. Accordingly, the UGI Corporation Senior Notes are classified as “Long-term debt” on the Condensed Consolidated Balance Sheet at June 30, 2024.
Current report
Upon conversion, the Company will pay cash up to the aggregate principal amount of the UGI Corporation Senior notes. For the remainder of the amount in excess of the aggregate principal amount, if applicable, the Company will have the sole right to elect the settlement method upon conversion which can be either entirely in cash or in a combination of cash and shares of its common stock. The default settlement method as defined in the agreement is combination settlement with a specified dollar amount of $1,000 per $1,000 principal of the UGI Corporation Senior Notes, and any incremental value settled in shares of the Company’s common stock. The initial conversion rate is 36.2319 shares of the Company’s common stock per $1,000 principal amount of the UGI Corporation Senior Notes, which represents an initial conversion price of approximately $27.60 per share of the Company’s common stock. The conversion rate and conversion price will be subject to customary adjustments upon the occurrence of certain events. In addition, if certain corporate events that constitute a “Make-Whole Fundamental Change” (as defined in the Indenture) occur, then the conversion rate will, in certain circumstances, be increased for a specified period of time.
Current report
The Company may not redeem the UGI Corporation Senior Notes at its option before maturity.
Current report
Equity Units. In May 2021, the Company issued 2.2 million Equity Units with a total notional value of $220 million. Each Equity Unit had a stated amount of $100 and consisted of (i) a 10% undivided beneficial ownership interest in one share of Convertible Preferred Stock with a liquidation preference of $1,000 per share and (ii) a 2024 Purchase Contract. See Note 13 to the Consolidated Financial Statements in the Company’s 2023 Annual Report for additional information on the issuance of the Equity Units.
Current report
Pursuant to the terms of the Equity Units, in May 2024, the Company announced the unsuccessful final remarketing of its Convertible Preferred Stock. As a result, each holder of an Equity Unit received 2.2973 shares of UGI common stock, without par value, with cash paid in lieu of any fractional shares. During the third quarter of Fiscal 2024, the Company (i) made the final contract adjustment payment to settle the 2024 Purchase Contract in full; (ii) canceled the Convertible Preferred Stock; and (iii) in a non-cash transaction, converted the Equity Units into 5,054,030 shares of UGI Common Stock and issued the shares to the holders of the Equity Units under the 2024 Purchase Contract.
Current report
Mountaineer. On July 31, 2024, Mountaineer submitted its 2024 IREP filing to the WVPSC requesting recovery of $19 million, which includes $3 million of prior year under-recovery, for costs associated with capital investments after December 31, 2022, that total $197 million, including $74 million in calendar year 2025. The filing included capital investments totaling $418 million over the 2025 - 2029 period.
Removed paragraphs (14)
Previous report
AmeriGas Propane’s adjusted net income attributable to UGI Corporation decreased $36 million in the 2024 three-month period. This decrease is primarily attributable to higher income taxes reflecting valuation allowance on disallowed interest expense following its goodwill impairment charge in the third quarter of Fiscal 2023. Total margin was lower in the 2024 three-month period, primarily resulting from lower retail propane volumes sold, partially offset by the benefit of higher average retail propane unit margin. The decrease in total margin was largely offset by lower operating and administrative expenses, primarily reflecting lower advertising and compensation expenses.
Previous report
2024 six-month period compared with 2023 six-month period
Previous report
Utilities
Previous report
Midstream & Marketing
Previous report
2024 Six-Month Period Compared with the 2023 Six-Month Period
Previous report
Utilities
Previous report
Midstream & Marketing
Previous report
Total margin decreased $38 million in the 2024 six-month period largely attributable to the lower retail propane volumes sold ($66 million), partially offset by higher average retail propane unit margins ($24 million).
Previous report
Operating income and earnings before interest expense and income taxes each decreased $39 million during the 2024 six-month period primarily reflecting the decrease in total margin ($38 million) and, to a much lesser extent, slightly higher operating and administrative expenses ($3 million). The increase in operating and administrative expenses reflects, among other things, higher vehicle expenses and salaries and benefits expenses, partially offset by lower advertising expenses.
Previous report
Our consolidated interest expense during the 2024 six-month period was $200 million compared to $185 million during the 2023 six-month period. This increase largely reflects slightly higher credit agreement interest rates and higher long-term debt outstanding principally at Utilities and Midstream & Marketing, partially offset by lower average debt outstanding at AmeriGas Propane.
Previous report
2022 AmeriGas OLP Credit Agreement. Under the 2022 AmeriGas OLP Credit Agreement, AmeriGas OLP, as borrower, is required to comply with financial covenants related to leverage and interest coverage measured at the Partnership and at AmeriGas OLP. The 2022 AmeriGas OLP Credit Agreement contains an equity cure provision, which allows AmeriGas OLP’s direct or indirect parent, including UGI and its other subsidiaries, to fund capital contributions to eliminate any EBITDA (as defined in the 2022 AmeriGas OLP Credit Agreement) shortfalls that would otherwise result in non-compliance with these financial covenants. Each equity cure is eligible to eliminate such EBITDA shortfalls up to four quarters after contribution. We are permitted to use the equity cure provision five times over the course of the Credit Agreement, twice during any rolling four-quarter period, and not in consecutive quarters.
Previous report
UGI made capital contributions to AmeriGas OLP during Fiscal 2023, a portion of which represented one equity cure that was eligible to eliminate any EBITDA shortfalls through December 31, 2023, in accordance with the 2022 AmeriGas OLP Credit Agreement. As a result of such capital contributions, AmeriGas OLP and the Partnership were in compliance with all financial covenants after consideration of the equity cure provision as of December 31, 2023. As of March 31, 2024, the Partnership was in compliance with all debt covenants as set forth in the 2022 AmeriGas OLP Credit Agreement without the consideration of the equity cure provision. The financial covenant leverage ratio under the 2022 AmeriGas OLP Credit Agreement as of March 31, 2024 must be no greater than 5.75, with a decrease to 5.50 beginning in September 2024. The actual leverage ratio as of March 31, 2024 was 5.74.
Previous report
UGI provided an irrevocable letter of support whereby UGI has committed to fund any such EBITDA shortfalls and debt service, if any. Based on the support and the projected EBITDA, AmeriGas OLP is expected to remain in compliance with its financial debt covenants for the succeeding twelve-month period.
Previous report
On November 15, 2023, the Partnership entered into an amendment to the 2022 AmeriGas OLP Credit Agreement, which amends certain provisions of the credit agreement to, among other things, (i) reduce the maximum revolver amount from $600 million to $400 million, (ii) reduce the minimum interest coverage ratio, effective for the fourth quarter of Fiscal 2023 through the end of Fiscal 2024 and (iii) provided that, beginning for the first quarter of Fiscal 2025, the minimum interest coverage ratio will remain reduced if the net leverage ratio is below a certain threshold as defined by the agreement; if the net leverage ratio exceeds such threshold, the minimum interest coverage ratio will revert to the original ratio as defined by the agreement.
Reworded paragraphs (75)
Previous wording
A forward-looking statement may include a statement of the assumptions or bases underlying the forward-looking statement. We believe that we have chosen these assumptions or bases in good faith and that they are reasonable. However, we caution you against relying on any forward-looking statement as these statements are subject to risks and uncertainties that may cause actual results to vary from assumed facts or bases, and the differences between actual results and assumed facts or bases can be material, depending on the circumstances. When considering forward-looking statements, you should keep in mind those factors set forth in Item 1A. Risk Factors in the Company’s 2023 Annual Report and the following important factors that could affect our future results and could cause those results to differ materially from those expressed in our forward-looking statements: (1) weather conditions, including increasingly uncertain weather patterns due to climate change, resulting in reduced demand, the seasonal nature of our business, and disruptions in our operations and supply chain; (2) cost volatility and availability of energy products, including propane and other LPG, electricity, and natural gas, as well as the availability of LPG cylinders, and the capacity to transport product to our customers; (3) changes in domestic and foreign laws and regulations, including safety, health, tax, transportation, consumer protection, data privacy, accounting, and environmental matters, such as regulatory responses to climate change; (4) inability to timely recover costs through utility rate proceedings; (5) the impact of pending and future legal or regulatory proceedings, inquiries or investigations; (6) competitive pressures from the same and alternative energy sources; (7) failure to acquire new customers or retain current customers thereby reducing or limiting any increase in revenues; (8) liability for environmental claims; (9) increased customer conservation measures due to high energy prices and improvements in energy efficiency and technology resulting in reduced demand; (10) adverse labor relations and our ability to address existing or potential workforce shortages; (11) customer, counterparty, supplier, or vendor defaults; (12) liability for uninsured claims and for claims in excess of insurance coverage, including those for personal injury and property damage arising from explosions, acts of war, terrorism, natural disasters, pandemics, and other catastrophic events that may result from operating hazards and risks incidental to generating and distributing electricity and transporting, storing and distributing natural gas and LPG in all forms; (13) transmission or distribution system service interruptions; (14) political, regulatory and economic conditions in the United States, Europe and other foreign countries, including uncertainties related to the war between Russia and Ukraine, the European energy crisis, and foreign currency exchange rate fluctuatio…
Excerpt shortened here; the source contains the full paragraph.
Current wording
A forward-looking statement may include a statement of the assumptions or bases underlying the forward-looking statement. We believe that we have chosen these assumptions or bases in good faith and that they are reasonable. However, we caution you against relying on any forward-looking statement as these statements are subject to risks and uncertainties that may cause actual results to vary from assumed facts or bases, and the differences between actual results and assumed facts or bases can be material, depending on the circumstances. When considering forward-looking statements, you should keep in mind those factors set forth in Item 1A. Risk Factors in the Company’s 2023 Annual Report and the following important factors that could affect our future results and could cause those results to differ materially from those expressed in our forward-looking statements: (1) weather conditions, including increasingly uncertain weather patterns due to climate change, resulting in reduced demand, the seasonal nature of our business, and disruptions in our operations and supply chain; (2) cost volatility and availability of energy products, including propane and other LPG, electricity, and natural gas, as well as the availability of LPG cylinders, and the capacity to transport product to our customers; (3) changes in domestic and foreign laws and regulations, including safety, health, tax, transportation, consumer protection, data privacy, accounting, and environmental matters, such as regulatory responses to climate change; (4) inability to timely recover costs through utility rate proceedings; (5) the impact of pending and future legal or regulatory proceedings, inquiries or investigations; (6) competitive pressures from the same and alternative energy sources; (7) failure to acquire new customers or retain current customers thereby reducing or limiting any increase in revenues; (8) liability for environmental claims; (9) increased customer conservation measures due to high energy prices and improvements in energy efficiency and technology resulting in reduced demand; (10) adverse labor relations and our ability to address existing or potential workforce shortages; (11) customer, counterparty, supplier, or vendor defaults; (12) liability for uninsured claims and for claims in excess of insurance coverage, including those for personal injury and property damage arising from explosions, acts of war, terrorism, natural disasters, pandemics, and other catastrophic events that may result from operating hazards and risks incidental to generating and distributing electricity and transporting, storing and distributing natural gas and LPG in all forms; (13) transmission or distribution system service interruptions; (14) political, regulatory and economic conditions in the United States, Europe and other foreign countries, including uncertainties related to the war between Russia and Ukraine, the conflict in the Middle East, the European energy crisis, and foreign …
Excerpt shortened here; the source contains the full paragraph.
Previous wording
The following analyses compare the Company’s results of operations for the 2024 three-month period with the 2023 three-month period and the 2024 six-month period with the 2023 six-month period. Our analysis of results of operations should be read in conjunction with the segment information included in Note 15 to Condensed Consolidated Financial Statements.
Current wording
The following analyses compare the Company’s results of operations for the 2024 three-month period with the 2023 three-month period and the 2024 nine-month period with the 2023 nine-month period. Our analysis of results of operations should be read in conjunction with the segment information included in Note 15 to Condensed Consolidated Financial Statements.
Previous wording
France. In October 2023, UGI International, through a wholly-owned subsidiary, sold substantially all of its energy marketing business located in France for a net cash payment to the buyer of $28 million. In conjunction with the sale, during the first quarter of Fiscal 2024, the Company recorded a pre-tax loss of $28 million, which amount principally represents the net payment to the buyer. The carrying values of the assets and liabilities associated with this business, principally comprising certain commodity derivative instruments, energy certificates and certain working capital, were not material.
Current wording
France. In October 2023, UGI International, through a wholly-owned subsidiary, sold substantially all of its energy marketing business located in France for a net cash payment to the buyer of $29 million. In conjunction with the sale, during the nine months ended June 30, 2024, the Company recorded a pre-tax loss of $29 million, which amount principally represents the net payment to the buyer. The carrying values of the assets and liabilities associated with this business, principally comprising certain commodity derivative instruments, energy certificates and certain working capital, were not material.
Previous wording
The following tables reflect the adjustments referred to above and reconcile net income (loss) attributable to UGI Corporation, the most directly comparable GAAP measure, to adjusted net income attributable to UGI Corporation, and reconcile diluted earnings per share, the most directly comparable GAAP measure, to adjusted diluted earnings per share:
Current wording
The following tables reflect the adjustments referred to above and reconcile net income (loss) attributable to UGI Corporation, the most directly comparable GAAP measure, to adjusted net income (loss) attributable to UGI Corporation, and reconcile diluted (loss) earnings per share, the most directly comparable GAAP measure, to adjusted diluted earnings per share:
Previous wording
(c)The loss per share for the six months ended March 31, 2023, was determined excluding the effect of 6.35 million dilutive shares as the impact of such shares would have been antidilutive due to the net loss for the period. Adjusted earnings per share for the six months ended March 31, 2023, was determined based upon fully diluted shares of 216.25 million.
Current wording
(c)The loss per share for the three months ended June 30, 2024 and nine months ended June 30, 2023, was determined excluding the effect of 3.82 million and 6.22 million dilutive shares, respectively, as the impact of such shares would have been antidilutive due to the net loss for the periods. The adjusted earnings per share for the three months ended June 30, 2024 and nine months ended June 30, 2023, was determined based upon fully diluted shares of 214.50 million and 216.03 million, respectively.
Previous wording
Discussion. Net income attributable to UGI Corporation for the 2024 three-month period was $496 million (equal to $2.30 per diluted share) compared to $110 million (equal to $0.51 per diluted share) for the 2023 three-month period. These results include net gains (losses) from changes in unrealized commodity derivative instruments and certain foreign currency derivative instruments of $111 million and $(242) million during the 2024 and 2023 three-month periods, respectively. The higher gains from changes in commodity derivative instruments during the 2024 three-month period principally reflects significantly less volatility in commodity energy prices following unprecedented volatility in such prices during the 2023 three-month period and the effects of significantly lower energy marketing activities in Europe resulting from the exit of substantially all of UGI International’s energy marketing business.
Current wording
Discussion. Net loss attributable to UGI Corporation for the 2024 three-month period was $48 million (equal to $0.23 loss per diluted share) compared to $789 million (equal to $3.76 loss per diluted share) for the 2023 three-month period. These results include net gains (losses) from changes in unrealized commodity derivative instruments and certain foreign currency derivative instruments of $33 million and $(116) million during the 2024 and 2023 three-month periods, respectively. The higher gains from changes in commodity derivative instruments during the 2024 three-month period principally reflects significantly less volatility in commodity energy prices following unprecedented volatility in such prices during the 2023 three-month period and the effects of significantly lower energy marketing activities in Europe resulting from the exit of substantially all of UGI International’s energy marketing business.
Previous wording
Net income attributable to UGI Corporation during the 2024 three-month period also includes (1) restructuring costs of $27 million, largely attributable to a reduction in workforce and related costs primarily at UGI International; (2) an impairment of assets of $5 million at UGI International; (3) external advisory fees of $5 million associated with AmeriGas operations enhancement for growth project; and (4) $1 million of costs associated with the exit of our UGI International energy marketing business in Europe.
Current wording
Net loss attributable to UGI Corporation during the 2024 three-month period also includes (1) a $45 million impairment of assets held-for-sale associated with UGID; (2) a $25 million impairment associated with equity method investments at UGI International; (3) external advisory fees of $9 million associated with AmeriGas operations enhancement for growth project; (4) restructuring costs of $7 million, largely attributable to a reduction in workforce and related costs, primarily at UGI
Previous wording
Net income attributable to UGI Corporation during the 2023 three-month period also includes (1) external advisory fees of $5 million associated with AmeriGas operations enhancement for growth project; (2) $4 million of costs associated with the exit of our UGI International energy marketing business in Europe; and (3) business transformation expenses of $2 million associated with corporate support functions.
Current wording
Net loss attributable to UGI Corporation during the 2023 three-month period also includes (1) a $660 million loss associated with impairment of AmeriGas Propane goodwill; (2) loss on extinguishments of debt of $7 million at AmeriGas Propane; (3) external advisory fees of $4 million associated with AmeriGas operations enhancement for growth project; and (4) business transformation expenses of $1 million associated with corporate support functions.
Previous wording
Adjusted net income attributable to UGI Corporation for the 2024 three-month period was $423 million (equal to $1.97 per diluted share) compared to adjusted net income of $363 million (equal to $1.68 per diluted share) for the 2023 three-month period. The increase in adjusted net income attributable to UGI Corporation during the 2024 three-month period reflects higher earnings contributions from the Utilities and Midstream & Marketing segments, partially offset by lower earnings contributions from the AmeriGas Propane segment. The earnings contribution from the UGI International segment was comparable to the prior-year period. During the 2024 three-month period, temperatures in the Utilities and Midstream & Marketing segments were colder than the prior-year period while temperatures in the UGI International and AmeriGas Propane segments were warmer than the prior-year period.
Current wording
Adjusted net income attributable to UGI Corporation for the 2024 three-month period was $12 million (equal to $0.06 per diluted share) compared to adjusted net loss of $1 million (equal to $0.00 per diluted share) for the 2023 three-month period. The increase in adjusted net income attributable to UGI Corporation during the 2024 three-month period reflects higher earnings contributions primarily from our UGI International segment and, to a much lesser extent, our Utilities segment. The earnings contribution from the Midstream & Marketing and AmeriGas Propane segments were comparable to the prior-year period. During the 2024 three-month period, temperatures in most of our segments were significantly warmer than the prior-year period.
Previous wording
Utilities’ adjusted net income attributable to UGI Corporation increased $12 million in the 2024 three-month period compared to the prior-year period. The increase was largely attributable to higher total margin due in large part to increases in base rates for both PA Gas Utility and Mountaineer during Fiscal 2024.
Current wording
Utilities’ adjusted net income attributable to UGI Corporation increased $3 million in the 2024 three-month period compared to the prior-year period. The increase was largely attributable to higher total margin due in large part to increases in base rates at PA Gas Utility, Mountaineer and Electric Utility during Fiscal 2024.
Previous wording
UGI International’s adjusted net income attributable to UGI Corporation decreased $1 million in the 2024 three-month period, principally reflecting lower total margin from our energy marketing business, substantially offset by the benefit from higher average unit margin from our LPG business attributable to strong margin management efforts and lower operating and administrative expenses, primarily reflecting lower personnel and maintenance expenses.
Current wording
UGI International’s adjusted net income attributable to UGI Corporation increased $26 million in the 2024 three-month period, reflecting higher total margin from our LPG business that benefited from higher average unit margin attributable to strong margin management efforts, lower operating and administrative expenses and higher other income.
Previous wording
Discussion. Net income attributable to UGI Corporation for the 2024 six-month period was $590 million (equal to $2.74 per diluted share) compared to net loss attributable to UGI Corporation of $844 million (equal to $4.02 loss per diluted share) for the 2023 six-month period. These results include net gains (losses) from changes in unrealized commodity derivative instruments and certain foreign currency derivative instruments of $20 million and $(1,270) million during the 2024 and 2023 six-month periods, respectively. The higher gains from changes in commodity derivative instruments during the 2024 six-month period, principally reflects significantly less volatility in commodity energy prices in Europe following unprecedented volatility in such prices during the 2023 six-month period and the effects of significantly lower energy marketing activities in Europe resulting from the exit of substantially all of UGI International’s energy marketing business.
Current wording
Discussion. Net income attributable to UGI Corporation for the 2024 nine-month period was $542 million (equal to $2.52 per diluted share) compared to net loss attributable to UGI Corporation of $1,633 million (equal to $7.78 loss per diluted share) for the 2023 nine-month period. These results include net gains (losses) from changes in unrealized commodity derivative instruments and certain foreign currency derivative instruments of $53 million and $(1,386) million during the 2024 and 2023 nine-month periods, respectively. The higher gains from changes in commodity derivative instruments during the 2024 nine-month period, principally reflects significantly less volatility in commodity energy prices in Europe following unprecedented volatility in such prices during the 2023 nine-month period and the effects of significantly lower energy marketing activities in Europe resulting from the exit of substantially all of UGI International’s energy marketing business.
Previous wording
Net income attributable to UGI Corporation during the 2024 six-month period also includes (1) $66 million of costs associated with the exit of our UGI International energy marketing business in Europe, principally reflecting wind-down activities in the Netherlands and the loss on the sale of the energy marketing business located in France; (2) restructuring costs of $30 million largely attributable to a reduction in workforce and related costs; (3) external advisory fees of $10 million associated with AmeriGas operations enhancement for growth project; and (4) an impairment of assets of $5 million at UGI International.
Current wording
Net income attributable to UGI Corporation during the 2024 nine-month period also includes (1) $68 million of costs associated with the exit of our UGI International energy marketing business in Europe, principally reflecting wind-down activities in the Netherlands and the loss on the sale of the energy marketing business located in France; (2) a $45 million impairment of assets held for sale associated with UGID; (3) restructuring costs of $37 million largely attributable to a reduction in workforce and related costs, primarily at UGI International; (4) a $25 million impairment associated with equity method investments at UGI International; (5) external advisory fees of $19 million associated with AmeriGas operations enhancement for growth project; (6) loss on extinguishments of debt of $5 million, primarily at AmeriGas Propane; and (7) an impairment of assets of $5 million at UGI International.
Previous wording
Net loss attributable to UGI Corporation during the 2023 six-month period also includes (1) $170 million costs associated with the exit of our UGI International energy marketing business in Europe, principally reflecting the loss on the sale of the energy marketing business located in the U.K. and an impairment of assets; (2) external advisory fees of $10 million associated with AmeriGas operations enhancement for growth project; and (3) business transformation expenses of $3 million associated with corporate support functions.
Current wording
Net loss attributable to UGI Corporation during the 2023 nine-month period also includes (1) a $660 million loss associated with impairment of AmeriGas Propane goodwill; (2) $170 million of costs associated with the exit of our UGI International energy marketing business in Europe, principally reflecting the loss on the sale of the energy marketing business located in the U.K. and an impairment of assets; (3) external advisory fees of $14 million associated with AmeriGas operations enhancement for growth project; (4) loss on extinguishments of debt of $7 million at AmeriGas Propane; and (5) business transformation expenses of $4 million associated with corporate support functions.
Previous wording
Adjusted net income attributable to UGI Corporation for the 2024 six-month period was $681 million (equal to $3.16 per diluted share) compared to $609 million (equal to $2.82 per diluted share) for the 2023 six-month period. The increase in adjusted net income attributable to UGI Corporation for the 2024 six-month period reflects higher earnings contributions from the Utilities, Midstream & Marketing and UGI International segments, partially offset by lower earnings contributions from the AmeriGas Propane segment. During the 2024 six-month period, temperatures in all of our segments were warmer than the prior-year period.
Current wording
Adjusted net income attributable to UGI Corporation for the 2024 nine-month period was $693 million (equal to $3.22 per diluted share) compared to $608 million (equal to $2.81 per diluted share) for the 2023 nine-month period. The increase in adjusted net income attributable to UGI Corporation for the 2024 nine-month period reflects higher earnings contributions from the Midstream & Marketing, UGI International and Utilities segments, partially offset by lower earnings contributions from the AmeriGas Propane segment. During the 2024 nine-month period, temperatures in all of our segments were warmer than the prior-year period.
Previous wording
Utilities’ adjusted net income attributable to UGI Corporation increased $17 million in the 2024 six-month period. The increase was largely attributable to higher total margin due in large part to increases in base rates for both PA Gas Utility and Mountaineer during Fiscal 2024 and the implementation of the weather normalization adjustments for PA Gas Utility (effective November 2022).
Current wording
Utilities’ adjusted net income attributable to UGI Corporation increased $20 million in the 2024 nine-month period. The increase was largely attributable to higher total margin due in large part to increases in base rates at PA Gas Utility, Mountaineer and Electric Utility during Fiscal 2024, increases in DSIC revenues and the implementation of the weather normalization adjustments for PA Gas Utility (effective November 2022).
Previous wording
Midstream & Marketing’s adjusted net income attributable to UGI Corporation increased $69 million in the 2024 six-month period. The increase is primarily attributable to higher total margin from natural gas marketing activities and lower income taxes reflecting higher investment tax credits in the 2024 six-month period.
Current wording
Midstream & Marketing’s adjusted net income attributable to UGI Corporation increased $69 million in the 2024 nine-month period. The increase is primarily attributable to higher total margin from natural gas marketing activities and lower income taxes reflecting higher investment tax credits in the 2024 nine-month period.
Previous wording
UGI International’s adjusted net income attributable to UGI Corporation increased $37 million in the 2024 six-month period. The increase is mainly attributable to higher margin contributions from our LPG business, principally reflecting the benefit from higher average unit margins attributable to strong margin management efforts and the effects of higher LPG retail volumes sold. The increase also reflects lower operating and administrative expenses resulting from lower personnel and maintenance expenses, partially offset by the effects of inflationary increases.
Current wording
UGI International’s adjusted net income attributable to UGI Corporation increased $63 million in the 2024 nine-month period. The increase is mainly attributable to higher margin contributions from our LPG business, principally reflecting the benefit from higher average unit margins attributable to strong margin management efforts and lower operating and administrative expenses.
Previous wording
AmeriGas Propane’s adjusted net income attributable to UGI Corporation decreased $69 million in the 2024 six-month period. The decrease principally reflects lower total margin largely attributable to lower retail propane volumes sold, partially offset by the benefit of higher average retail propane unit margins in the 2024 six-month period. This decrease is also attributable to higher income taxes reflecting valuation allowance on disallowed interest expense following its goodwill impairment charge in the third quarter of Fiscal 2023.
Current wording
AmeriGas Propane’s adjusted net income attributable to UGI Corporation decreased $70 million in the 2024 nine-month period. The decrease principally reflects lower total margin, largely attributable to lower retail propane volumes sold, partially offset by the benefit of higher average retail propane unit margins, and lower operating and administrative expenses in the 2024 nine-month period.
Previous wording
(a)Total margin represents revenues less cost of sales and revenue-related taxes (i.e., gross receipts and business and occupation taxes) of $16 million and $17 million during the 2024 and 2023 six-month periods, respectively. For financial statement purposes, revenue-related taxes are included in “Operating and administrative expenses” on the Condensed Consolidated Statements of Income (but are excluded from operating and administrative expenses presented above).
Current wording
(a)Total margin represents revenues less cost of sales and revenue-related taxes (i.e., gross receipts and business and occupation taxes) of $4 million each during the 2024 and 2023 three-month periods. For financial statement purposes, revenue-related taxes are included in “Operating and administrative expenses” on the Condensed Consolidated Statements of Income (but are excluded from operating and administrative expenses presented above).
Previous wording
Temperatures in Gas Utility’s service territories during the 2024 three-month period were 16.4% warmer than normal and 4.7% colder than the prior-year period. The slight increase in Gas Utility core market volumes during the 2024 three-month period is largely related to growth in the core market customers and colder weather than the prior-year period. Total Gas Utility volume decreased 3% during the 2024 three-month period, notwithstanding the slight increase in core market volumes, primarily reflecting lower interruptible delivery service volumes. The increase in Electric Utility distribution sales volumes is primarily attributable to the weather that was colder than the prior-year period.
Current wording
Temperatures in Gas Utility’s service territories during the 2024 three-month period were 26.1% warmer than normal and 16.6% warmer than the prior-year period. Gas Utility core market volumes during the 2024 three-month period were comparable to the prior-year period as growth in the core market customers were largely offset by the impact from the significantly warmer weather. Total Gas Utility volume increased 1% during the 2024 three-month period, primarily reflecting higher large firm delivery service volumes. The increase in Electric Utility distribution sales volumes is primarily attributable to an increase in cooling degree days during the 2024 three-month period and, to a lesser extent, customer growth.
Previous wording
Utilities revenues decreased $128 million in the 2024 three-month period substantially due to lower Gas Utility revenues. The decrease in Gas Utility revenues was largely attributable to lower PGC and PGA rates reflecting lower natural gas costs and lower off-system sales. These decreases were partially offset by the effects of increases in base rates for PA Gas Utility (effective October 1, 2023) and Mountaineer (effective January 1, 2024), increase in DSIC revenues and slightly higher core market volumes. Electric Utility revenues were comparable to the prior-year period.
Current wording
Utilities revenues decreased $21 million in the 2024 three-month period substantially due to lower Gas Utility revenues. The decrease in Gas Utility revenues was largely attributable to lower PGC and PGA rates reflecting lower natural gas costs. These decreases were partially offset by the effects of increases in base rates for PA Gas Utility (effective October 1, 2023) and Mountaineer (effective January 1, 2024) and increase in DSIC revenues. Electric Utility revenues increased slightly during the 2024 three-month period, largely reflecting higher base rates and sales volumes, partially offset by lower DS rates.
Previous wording
Utilities cost of sales decreased $152 million in the 2024 three-month period primarily attributable to Gas Utility ($148 million) mainly reflecting lower PGC and PGA rates and lower cost of sales associated with off-system sales. Electric Utility cost of sales decreased $4 million during the 2024 three-month period largely reflecting the lower DS rates.
Current wording
Utilities cost of sales decreased $29 million in the 2024 three-month period substantially due to lower Gas Utility cost of sales, reflecting lower PGC and PGA rates. Electric Utility cost of sales during the 2024 three-month period was comparable to the prior-year period as the effects of the higher sales volumes were offset by the lower DS rates.
Previous wording
Utilities total margin increased $25 million during the 2024 three-month period primarily attributable to higher Gas Utility total margin ($21 million), mainly reflecting the effects of increases in base rates for PA Gas Utility (effective October 1, 2023) and Mountaineer (effective January 1, 2024), increases in DSIC revenue and the impacts from growth in the core market customers. Electric Utility margin increased by $4 million during the 2024 three-month period mainly reflecting the increase in base rates effective October 1, 2023.
Current wording
Utilities total margin increased $8 million during the 2024 three-month period primarily attributable to higher Gas Utility total margin ($5 million), mainly reflecting the effects of increases in base rates for PA Gas Utility (effective October 1, 2023) and Mountaineer (effective January 1, 2024), increases in DSIC revenue and the impacts from growth in the core market customers. Electric Utility margin increased $3 million during the 2024 three-month period mainly reflecting the increase in base rates effective October 1, 2023 and, to a lesser extent, the higher sales volumes.
Previous wording
Utilities operating income and earnings before interest expense and income taxes increased $22 million and $21 million, respectively, during the 2024 three-month period. These increases largely reflect the previously mentioned increase in total margin, partially offset by higher depreciation expense ($4 million). Operating and administrative expenses were comparable to the prior-year period, reflecting lower uncollectible accounts expenses and contract labor costs, largely offset by higher employee benefits expense. The higher depreciation expense compared to the prior-year period reflects the effects of continued distribution system capital expenditure activity.
Current wording
Utilities operating income and earnings before interest expense and income taxes each increased $5 million during the 2024 three-month period. These increases largely reflect the previously mentioned increase in total margin ($8 million), partially offset by higher depreciation expense ($4 million). Operating and administrative expenses were slightly lower compared to the prior-year period, reflecting lower uncollectible accounts expenses and contract labor costs. The higher depreciation expense compared to the prior-year period reflects the effects of continued distribution system capital expenditure activity.
Previous wording
Average temperatures across Midstream & Marketing’s energy marketing territory during the 2024 three-month period were 13.4% warmer than normal and 3.4% colder than the prior-year period.
Current wording
Average temperatures across Midstream & Marketing’s energy marketing territory during the 2024 three-month period were 23.5% warmer than normal and 18.3% warmer than the prior-year period.
Previous wording
Midstream & Marketing revenues decreased $155 million compared to the prior-year period, primarily reflecting lower revenues from natural gas marketing activities ($154 million), including the effects of peaking and capacity management activities, that were primarily impacted by lower natural gas prices.
Current wording
Midstream & Marketing revenues decreased $26 million compared to the prior-year period, primarily reflecting lower revenues from natural gas marketing activities ($29 million), including the effects of peaking and capacity management activities, that were primarily impacted by lower natural gas prices. The decrease was slightly offset by lower revenues related to retail power marketing activities.
Previous wording
Midstream & Marketing cost of sales decreased $471 million compared to the prior-year period, primarily reflecting lower natural gas costs ($461 million) related to the previously mentioned natural gas marketing activities and, to a much lesser extent, lower cost of sales related to retail power marketing activities.
Current wording
Midstream & Marketing cost of sales decreased $25 million compared to the prior-year period, primarily reflecting lower natural gas costs ($22 million) related to the previously mentioned natural gas marketing activities.
Previous wording
Midstream & Marketing operating income and earnings before interest expense and income taxes during the 2024 three-month period each increased $48 million compared to the prior-year period, largely attributable to the higher total margin and lower operating and administrative expenses ($6 million). The lower operating and administrative expenses during the 2024 three-month period primarily reflects lower salary and benefits expenses and maintenance expenses.
Current wording
Midstream & Marketing operating income and earnings before interest expense and income taxes during the 2024 three-month period were comparable to the prior-year period as slightly lower total margin was more than offset by slightly lower operating and administrative expenses and other operating income.
Previous wording
Average temperatures during the 2024 three-month period were 13.2% warmer than normal and 8.4% warmer than the prior-year period. Notwithstanding the significantly warmer weather, total LPG retail gallons sold during the 2024 three-month period were comparable to the prior-year period as the effects of the warmer weather and lower cylinder volumes were largely offset by growth from natural gas conversions to LPG and higher auto gas volumes sold.
Current wording
Average temperatures during the 2024 three-month period were 10.0% warmer than normal and 2.8% warmer than the prior-year period. Total LPG retail gallons sold during the 2024 three-month period were 4% lower than in the prior-year period largely due to the effects of the warmer weather and lower growth from natural gas conversions to LPG.
Previous wording
UGI International base-currency results are translated into USD based upon exchange rates experienced during the reporting periods. The functional currency of a significant portion of our UGI International results is the euro and, to a much lesser extent, the British pound sterling. During the 2024 and 2023 three-month periods, the average unweighted euro-to-USD translation rates were approximately $1.09 and $1.07, respectively, and the average unweighted British pound sterling-to-USD translation rates were approximately $1.27 and $1.22, respectively. Fluctuations in these foreign currency exchange rates can have a significant impact on the individual financial statement components discussed below. The Company uses forward foreign currency exchange contracts entered into over multi-year periods to reduce the volatility in earnings that may result from such changes in foreign currency exchange rates. These forward foreign currency exchange contracts resulted in net realized gains of $6 million and $8 million in the 2024 and 2023 three-month periods, respectively.
Current wording
UGI International base-currency results are translated into USD based upon exchange rates experienced during the reporting periods. The functional currency of a significant portion of our UGI International results is the euro and, to a much lesser extent, the British pound sterling. During the 2024 and 2023 three-month periods, the average unweighted euro-to-USD translation rates were approximately $1.08 and $1.09, respectively, and the average unweighted British pound sterling-to-USD translation rates were approximately $1.26 and $1.25, respectively. Fluctuations in these foreign currency exchange rates can have a significant impact on the individual financial statement components discussed below. The Company uses forward foreign currency exchange contracts entered into over multi-year periods to reduce the volatility in earnings that may result from such changes in foreign currency exchange rates. Net realized gains (losses) on these forward foreign currency exchange contracts did not have a material impact on either of the three-month periods.
Previous wording
Average wholesale prices for propane and butane during the 2024 six-month period in northwest Europe were approximately 14% and 15% lower, respectively, compared with the prior-year period. UGI International revenues and cost of sales decreased $427 million and $481 million, respectively, during the 2024 six-month period compared to the prior-year period. The decrease in revenues and cost of sales principally reflects significantly lower energy marketing activities during the 2024 six-month period resulting from the exit of substantially all of UGI International’s energy marketing business in Belgium, France and the Netherlands in Fiscal 2024. The decrease in revenues from the energy marketing business was partially offset by the translation effects of the stronger foreign currencies (approximately $50 million), LPG price increases across Europe and the higher LPG retail volumes sold. The decrease in cost of sales was also attributable to lower LPG product costs, partially offset by the translation effects of the stronger foreign currencies (approximately $31 million) and the higher LPG retail volumes sold.
Current wording
Average wholesale prices for propane and butane during the 2024 three-month period in northwest Europe were each approximately 16% higher compared with the prior-year period. UGI International revenues and cost of sales decreased $156 million and $174 million, respectively, during the 2024 three-month period compared to the prior-year period. The decrease in revenues and cost of sales principally reflects significantly lower energy marketing activities during the 2024 three-month period resulting from the exit of substantially all of UGI International’s energy marketing business in Belgium, France and the Netherlands. The decrease in revenues from the energy marketing business was partially offset by the effects of LPG price increases across Europe. The decrease in cost of sales was also attributable to lower LPG volumes sold.
Previous wording
UGI International total margin decreased $10 million during the 2024 three-month period primarily reflecting lower margin contributions from our energy marketing activities resulting from the impact of the aforementioned exit of substantially all of UGI International’s energy marketing business. The decrease in UGI International total margin was partially offset by higher margin contributions from our LPG business, largely reflecting the effects of higher average unit margins attributable to strong margin management efforts and the translation effects of the stronger foreign currencies (approximately $5 million).
Current wording
UGI International total margin increased $18 million during the 2024 three-month period primarily reflecting higher margin contributions from our LPG business and, to a lesser extent, our energy marketing activities. The higher margin contribution from our LPG business reflects the effects of higher average unit margins attributable to strong margin management efforts. The higher margin contributions from our energy marketing activities result from the impact of the aforementioned exit of substantially all of UGI International’s energy marketing business.
Previous wording
UGI International operating income and earnings before interest expense and income taxes increased $61 million and $54 million, respectively, during the 2024 six-month period. The increase in operating income principally reflects the previously mentioned $54 million increase in total margin and lower operating and administrative expenses ($12 million), partially offset by lower foreign currency transaction gains ($8 million). The lower operating and administrative expenses in the 2024 six-month period primarily reflects lower personnel and maintenance expenses, partially offset by the effects of inflationary increases and the translation effects of the stronger foreign currencies (approximately $12 million). The increase in earnings before interest expense and income taxes in the 2024 six-month period largely reflects the $61 million increase in operating income, partially offset by lower realized gains on foreign currency exchange contracts entered into in order to reduce volatility in UGI International earnings resulting from the effects of changes in foreign currency exchange rates ($6 million).
Current wording
UGI International operating income and earnings before interest expense and income taxes increased $36 million and $35 million, respectively, during the 2024 three-month period. The increase in operating income principally reflects lower operating and administrative expenses ($19 million), the previously mentioned $18 million increase in total margin and higher gains associated with sales of assets ($6 million), partially offset by lower other operating income ($5 million). The lower operating and administrative expenses in the 2024 three-month period primarily reflects lower personnel and maintenance expenses, partially offset by the effects of inflationary increases. The increase in earnings before interest expense and income taxes in the 2024 three-month period largely reflects the $36 million increase in operating income.
Previous wording
Average temperatures during the 2024 three-month period were 8.6% warmer than normal and 3.0% warmer than the prior-year period. Total retail gallons sold decreased 6% during the 2024 three-month period primarily due to continuing customer attrition and the effects of the warmer weather.
Current wording
Average temperatures during the 2024 three-month period were 5.5% warmer than normal and 8.7% warmer than the prior-year period. Total retail gallons sold decreased 13% during the 2024 three-month period primarily due to continuing customer attrition and the effects of the warmer weather.
Previous wording
Average daily wholesale propane commodity prices during the 2024 three-month period at Mont Belvieu, Texas, one of the major supply points in the U.S., were approximately 3% higher than such prices during the 2023 three-month period. Total revenues decreased $72 million during the 2024 three-month period largely reflecting the lower retail volumes sold ($49 million), lower wholesale revenues ($16 million) and the effects of lower average retail propane selling prices ($8 million).
Current wording
Average daily wholesale propane commodity prices during the 2024 three-month period at Mont Belvieu, Texas, one of the major supply points in the U.S., were approximately 12% higher than such prices during the 2023 three-month period. Total revenues decreased $69 million during the 2024 three-month period largely reflecting the lower retail volumes sold ($55 million), lower wholesale revenues ($6 million) and the effects of lower average retail propane selling prices ($5 million).
Previous wording
Total cost of sales decreased $68 million during the 2024 three-month period largely reflecting the lower retail propane volumes sold ($24 million), the lower retail propane product costs ($27 million) and the lower wholesale cost of sales ($15 million).
Current wording
Total cost of sales decreased $34 million during the 2024 three-month period largely reflecting the lower retail propane volumes sold ($26 million) and the lower wholesale cost of sales ($5 million).
Previous wording
Our consolidated interest expense during the 2024 three-month period was $100 million compared to $93 million during the 2023 three-month period. This increase largely reflects slightly higher credit agreement interest rates and higher long-term debt outstanding principally at Utilities and Midstream & Marketing, partially offset by lower average debt outstanding at AmeriGas Propane.
Current wording
Our consolidated interest expense during the 2024 three-month period was comparable to the prior-year period as the impact from lower average credit agreement borrowings outstanding during the 2024 three-month period was largely offset by slightly higher total interest expense on long-term debt.
Previous wording
The decrease in the Company’s income tax rate for the 2024 three-month period reflects an increase in investment tax credits mainly at our Midstream & Marketing segment.
Current wording
The increase in the Company’s income tax rate for the 2024 three-month period was principally related to the effects of establishing a full valuation allowance against current year losses in the Netherlands, partially offset by an increase in investment tax credits mainly at our Midstream & Marketing segment.
Previous wording
(a)Total margin represents revenues less cost of sales and revenue-related taxes (i.e., gross receipts and business and occupation taxes) of $9 million and $10 million during the 2024 and 2023 three-month periods, respectively. For financial statement purposes, revenue-related taxes are included in “Operating and administrative expenses” on the Condensed Consolidated Statements of Income (but are excluded from operating and administrative expenses presented above).
Current wording
(a)Total margin represents revenues less cost of sales and revenue-related taxes (i.e., gross receipts and business and occupation taxes) of $20 million and $21 million during the 2024 and 2023 nine-month periods, respectively. For financial statement purposes, revenue-related taxes are included in “Operating and administrative expenses” on the Condensed Consolidated Statements of Income (but are excluded from operating and administrative expenses presented above).
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Previous report — wording carried elsewhere
Midstream & Marketing’s adjusted net income attributable to UGI Corporation increased $54 million in the 2024 three-month period, primarily attributable to higher total margin mainly from natural gas marketing activities and lower income taxes reflecting higher investment tax credits in the 2024 three-month period.
Previous report — wording carried elsewhere
Midstream & Marketing total margin increased $41 million compared to the prior-year period, primarily reflecting higher margins from natural gas marketing activities ($46 million), primarily reflecting the effects of higher capacity management and peaking activities, partially offset by lower total margin from renewable energy ($2 million).