UGI CORP /PA/
For the period ended Mar 31, 2025. Filed May 8, 2025.
View on SEC.govAbout this filing
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.
Mar 31, 2025 · Filed May 8, 2025
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 2024-12-31; filed 2025-02-06.
0000884614-25-000008
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-08.
0000884614-25-000017
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 100 previous paragraphs and 137 current paragraphs.
49 unchanged; 43 reworded; 27 added; 4 removed; 4 previous and 18 current paragraphs rearranged.
Tables are not compared: 8 previous and 12 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 (27)
Current report
UGI International’s adjusted net income attributable to UGI Corporation increased $2 million in the 2025 three-month period, reflecting lower operating and administrative expenses substantially offset by higher income tax expenses.
Current report
AmeriGas Propane’s adjusted net income attributable to UGI Corporation decreased $12 million in the 2025 three-month period as higher total margin, primarily resulting from higher retail propane volumes sold and higher average retail propane unit margins was more than offset by higher income tax expenses.
Current report
2025 six-month period compared with 2024 six-month period
Current report
Net income attributable to UGI Corporation for the 2025 six-month period was $854 million (equal to $3.93 per diluted share) compared to $590 million (equal to $2.74 per diluted share) for the 2024 six-month period. These results include net gains from changes in unrealized commodity derivative instruments and certain foreign currency derivative instruments of $75 million and $20 million during the 2025 and 2024 six-month periods, respectively.
Current report
Temperatures in Gas Utility’s service territories during the 2025 three-month period were 0.3% colder than normal and 15.1% colder than the prior-year period. Gas Utility core market volumes increased 18% during the 2025 three-month period, principally reflecting the impact from the significantly colder weather compared to the prior-year period. Total Gas Utility volume increased 6% during the 2025 three-month period, mainly reflecting the increase in core market volumes. The increase in Electric Utility distribution sales volumes is primarily attributable to colder weather during the 2025 three-month period.
Current report
Utilities revenues increased $127 million in the 2025 three-month period, primarily reflecting higher Gas Utility revenues ($122 million). The increase in Gas Utility revenues was largely attributable to the higher core market volumes and higher off-system sales, partially offset by the effects of the weather normalization adjustments. The increase in Electric Utility revenues ($5 million) in the 2025 three-month period is principally attributable to the higher sales volumes and higher DS rates.
Current report
Midstream & Marketing total margin was slightly higher than the prior-year period as the effects of higher capacity management margin ($5 million) and higher total margin from natural gas marketing activities ($3 million) was largely offset by lower midstream margins ($5 million), mainly from lower natural gas gathering and processing activities, and absence of margins from UGID that was sold in September 2024 ($3 million).
Current report
Midstream & Marketing operating income and earnings before interest expense and income taxes during the 2025 three-month period were comparable to the prior-year period as slightly higher total margin was substantially offset by slightly higher operating and administrative expenses.
Current report
Average temperatures during the 2025 three-month period were 2.2% warmer than normal and 10.4.% colder than the prior-year period. Notwithstanding the colder weather, total LPG retail gallons sold during the 2025 three-month period were 4% lower than the prior-year period, largely due to continued structural conservation and the absence of certain customers who previously converted from natural gas to LPG, substantially offset by the impact from the colder weather.
Current report
UGI International total margin decreased $3 million during the 2025 three-month period, primarily reflecting lower margin contributions from our LPG business. The lower margin contribution from our LPG business reflects lower LPG retail volumes sold and the translation effects of the weaker foreign currencies (approximately $9 million), substantially offset by the effects of higher average unit margins attributable to strong margin management efforts. Our energy marketing activities did not have a material impact on either of the three-month periods as the aforementioned exit of substantially all of UGI International’s energy marketing business was completed as of the end of the first quarter of Fiscal 2024.
Current report
UGI International operating income and earnings before interest expense and income taxes increased $15 million and $12 million, respectively, during the 2025 three-month period. The increase in operating income principally reflects lower operating and administrative expenses ($13 million) and slightly higher other operating income, partially offset by the $3 million decrease in total margin. The lower operating and administrative expenses in the 2025 three-month period primarily reflects lower personnel and maintenance expenses, lower distribution expenses due to lower retail volumes sold and the translation effects of the weaker foreign currencies (approximately $6 million), partially offset by the effects of inflationary increases. The increase in earnings before interest expense and income taxes in the 2025 three-month period largely reflects the $15 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 ($3 million).
Current report
Total cost of sales increased $40 million during the 2025 three-month period largely reflecting the higher retail propane product costs ($22 million), the higher volumes sold ($10 million) and the higher wholesale cost of sales ($8 million).
Current report
Operating income and earnings before interest expense and income taxes each increased $16 million during the 2025 three-month period, primarily reflecting the increase in total margin ($13 million) and higher gains on asset sales ($4 million). Operating and administrative expenses were comparable to the prior-year period as lower compensation expenses were substantially offset by higher general insurance expenses.
Current report
2025 Six-Month Period Compared with the 2024 Six-Month Period
Current report
Utilities cost of sales increased $88 million in the 2025 six-month period, primarily reflecting higher Gas Utility cost of sales ($84 million). The increase in Gas Utility cost of sales was largely attributable to the higher core market volumes and higher cost of sales associated with off-system sales. The increase in Electric Utility cost of sales ($4 million) is principally attributable to the higher sales volumes and higher DS rates.
Current report
Midstream & Marketing revenues increased $77 million compared to the prior-year period, primarily reflecting higher revenues from natural gas marketing activities ($84 million), including the effects of capacity management activities, that were primarily impacted by the colder weather, and higher revenues from renewable energy ($6 million). These increases were partially offset by absence of revenues from UGID that was sold in September 2024 ($18 million).
Current report
Midstream & Marketing cost of sales increased $92 million compared to the prior-year period, primarily reflecting higher natural gas costs ($81 million) related to the previously mentioned natural gas marketing activities, higher midstream cost of sales ($13 million), mainly from higher peaking activities, and higher cost of sales from renewable energy ($4 million). These increases were partially offset by absence of cost of sales from UGID that was sold in September 2024 ($11 million).
Current report
UGI International
Current report
Average temperatures during the 2025 six-month period were 1.1% warmer than normal and 6.1% colder than the prior-year period. Total retail gallons sold increased 1% during the 2025 six-month period, primarily due to the impact from the colder weather, partially offset by continuing customer attrition.
Current report
Total cost of sales increased $37 million during the 2025 six-month period largely reflecting higher retail propane product costs ($22 million), the higher volumes sold ($7 million) and the higher wholesale cost of sales ($8 million).
Current report
Total margin increased $14 million in the 2025 six-month period reflecting higher average retail propane unit margins ($14 million) and the higher retail propane volumes sold ($9 million), partially offset by lower fee income ($7 million).
Current report
Interest Expense and Income Taxes
Current report
(a) Represents the elimination of the intersegment loan between UGI International to AmeriGas Partners.
Current report
Mountaineer Senior Notes. In April 2025, Mountaineer entered into a note purchase agreement which provides for the private placement of (1) $50 million aggregate principal amount of 6.11% Senior Notes due June 1, 2035, and (2) $20 million aggregate principal amount of 6.21% Senior Notes due June 1, 2037. The Senior Notes are expected to be funded on or before May 30, 2025. These Senior Notes, when funded, are unsecured and will rank equally with Mountaineer’s existing outstanding senior debt. Mountaineer expects to use the net proceeds from the issuance of the Senior Notes to reduce short-term borrowings and for general corporate purposes.
Current report
Dividends and Repurchases of Common Stock
Current report
Pursuant to the UGI share repurchase program authorized in February 2022, which allows for the repurchase of up to 8 million shares of UGI Common Stock, expiring February 2026, during the six months ended March 31, 2025, the Company purchased 0.5 million shares on the open market at a total purchase price of approximately $17 million.
Current report
On December 10, 2024, the NTSB staff presented its draft findings to the NTSB Board. On April 8, 2025, the NTSB released its final report concluding that a fracture in an R.M. Palmer steam pipe created elevated underground temperatures that caused thermal degradation of a UGI Utilities service tee, resulting in a natural gas leak, and recommended UGI Utilities inventory and address risks to plastic gas assets in high-temperature environments.
Removed paragraphs (4)
Previous report
Utilities
Previous report
Midstream & Marketing
Previous report
Total cost of sales decreased $3 million during the 2024 three-month period largely reflecting the lower retail propane volumes sold.
Reworded paragraphs (43)
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 2024 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.
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 2024 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, trade restrictions and policies, such as tariffs and related sanctions, 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, t…
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. 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 2025 three-month period with the 2024 three-month period and the 2025 six-month period with the 2024 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.
Previous wording
Net income attributable to UGI Corporation for the 2024 three-month period was $375 million (equal to $1.74 per diluted share) compared to $94 million (equal to $0.44 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 $80 million and $(91) million during the 2024 and 2023 three-month periods, respectively.
Current wording
Net income attributable to UGI Corporation for the 2025 three-month period was $479 million (equal to $2.19 per diluted share) compared to $496 million (equal to $2.30 earnings per diluted share) for the 2024 three-month period. These results include net gains (losses) from changes in unrealized commodity derivative instruments and certain foreign currency derivative instruments of $(5) million and $111 million during the 2025 and 2024 three-month periods, respectively.
Previous wording
Adjusted net income attributable to UGI Corporation for the 2024 three-month period was $295 million (equal to $1.37 per diluted share) compared to $258 million (equal to $1.20 per diluted share) for the 2023 three-month period. The increase in adjusted net income attributable to UGI Corporation for the 2024 three-month period reflects higher earnings contributions from the UGI International and, to a much lesser extent, Utilities segments, offset by lower earnings contributions from the AmeriGas Propane and, to a much lesser extent, Midstream & Marketing segments. In addition, the increase in adjusted net income during the 2024 three-month period also reflects significantly lower income tax expenses primarily related to an increase in investment tax credits in our Midstream & Marketing segment and the release of a valuation allowance on deferred tax assets expected to be utilized in the current year in our UGI International segment. During the 2024 three-month period, temperatures in all of our segments were colder than the prior-year period, with significantly colder temperatures during the peak heating season month of December 2024.
Current wording
Adjusted net income attributable to UGI Corporation for the 2025 three-month period was $484 million (equal to $2.21 per diluted share) compared to adjusted net income of $423 million (equal to $1.97 per diluted share) for the 2024 three-month period. The increase in adjusted net income attributable to UGI Corporation during the 2025 three-month period reflects higher earnings contributions primarily from our Midstream & Marketing and Utilities segments and, to a much lesser extent, our UGI International segment, partially offset by lower earnings contributions from the AmeriGas Propane segment. In addition, the increase in adjusted net income during the 2025 three-month period also reflects significantly lower income tax expenses primarily related to an increase in investment tax credits in our Midstream & Marketing segment and the release of a valuation allowance on deferred tax assets expected to be utilized in the current year in our UGI International segment. During the 2025 three-month period, temperatures in all of our segments were significantly colder than the prior-year period.
Previous wording
Net income attributable to UGI Corporation during the 2023 three-month period also includes (1) $65 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) external advisory fees of $5 million associated with AmeriGas operations enhancement for growth project; and (3) restructuring costs of $3 million largely attributable to a reduction in workforce and related costs.
Current 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.
Previous wording
Utilities’ adjusted net income attributable to UGI Corporation increased $3 million in the 2024 three-month period. The increase was largely attributable to higher total margin due in large part to increases in base rates at WV Gas Utility effective January 2024 and the impacts from growth in the core market customers.
Current wording
Utilities’ adjusted net income attributable to UGI Corporation increased $14 million in the 2025 six-month period. The increase was largely attributable to higher total margin due in large part to higher core market volumes and the increase in the base rate at WV Gas Utility effective January 2024, partially offset by higher operating and administrative expenses.
Previous wording
Midstream & Marketing’s adjusted net income attributable to UGI Corporation decreased $3 million in the 2024 three-month period. The decrease is primarily attributable to lower total margin from natural gas marketing activities, partially offset by lower income tax expenses, reflecting higher investment tax credits in the 2024 three-month period.
Current wording
Midstream & Marketing’s adjusted net income attributable to UGI Corporation increased $27 million in the 2025 six-month period. The increase is primarily attributable to lower income tax expenses, reflecting higher investment tax credits in the 2025 six-month period, partially offset by lower total margin from lower midstream margins.
Previous wording
UGI International’s adjusted net income attributable to UGI Corporation increased $17 million in the 2024 three-month period. The increase is mainly attributable to lower income tax expenses and lower operating and administrative expenses, partially offset by lower margin contributions primarily from our energy marketing activities, reflecting the exit of substantially all of UGI International’s energy marketing business in Fiscal 2024.
Current wording
UGI International’s adjusted net income attributable to UGI Corporation increased $19 million in the 2025 six-month period. The increase is mainly attributable to lower operating and administrative expenses and lower income tax expenses, partially offset by lower margin contributions primarily from our energy marketing activities, reflecting the exit of substantially all of UGI International’s energy marketing business in Fiscal 2024.
Previous wording
AmeriGas Propane’s adjusted net income attributable to UGI Corporation decreased $62 million in the 2024 three-month period. The decrease principally reflects higher income tax expenses, partially offset by lower operating and administrative expenses in the 2024 three-month period.
Current wording
AmeriGas Propane’s adjusted net income attributable to UGI Corporation decreased $74 million in the 2025 six-month period. The decrease principally reflects higher income tax expenses, partially offset by higher total margin and lower operating and administrative expenses in the 2025 six-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 $7 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).
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 $10 million and $9 million during the 2025 and 2024 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).
Previous wording
Utilities cost of sales decreased $17 million in the 2024 three-month period, reflecting lower Gas Utility cost of sales. The decrease in Gas Utility cost of sales was mainly attributable to lower PGC and PGA rates, partially offset by the slightly higher core market volumes and higher cost of sales associated with off-system sales. Electric Utility cost of sales was comparable to the prior-year period.
Current wording
Utilities cost of sales increased $105 million in the 2025 three-month period, primarily reflecting higher Gas Utility cost of sales ($100 million). The increase in Gas Utility cost of sales was largely attributable to the higher core market volumes and higher cost of sales associated with off-system sales. The increase in Electric Utility cost of sales ($5 million) is principally attributable to the higher sales volumes and higher DS rates.
Previous wording
Average temperatures across Midstream & Marketing’s energy marketing territory during the 2024 three-month period were 3.9% warmer than normal and 4.2% colder than the prior-year period.
Current wording
Average temperatures across Midstream & Marketing’s energy marketing territory during the 2025 three-month period were 2.5% colder than normal and 14.9% colder than the prior-year period.
Previous wording
Midstream & Marketing revenues decreased $27 million compared to the prior-year period, primarily reflecting (1) lower revenues from natural gas marketing activities ($13 million) that were primarily impacted by lower natural gas prices; (2) lower midstream revenues ($10 million), mainly from lower natural gas gathering and processing activities; and (3) absence of revenues from UGID that was sold in September 2024 ($9 million). The decrease in revenues was partially offset by higher revenues from renewable energy ($5 million).
Current wording
Midstream & Marketing revenues increased $104 million compared to the prior-year period, primarily reflecting higher revenues from natural gas marketing activities ($97 million), including the effects of capacity management activities, that were primarily impacted by the colder weather, and higher midstream revenues ($5 million), mainly from higher peaking revenues. These increases were partially offset by absence of revenues from UGID that was sold in September 2024 ($9 million).
Previous wording
Midstream & Marketing cost of sales decreased $10 million compared to the prior-year period, primarily reflecting lower natural gas costs ($8 million) related to the previously mentioned natural gas marketing activities and absence of cost of sales from UGID that was sold in September 2024 ($5 million), partially offset by higher cost of sales from renewable energy ($4 million).
Current wording
Midstream & Marketing cost of sales increased $102 million compared to the prior-year period, primarily reflecting higher natural gas costs ($89 million) related to the previously mentioned natural gas marketing activities and higher midstream cost of sales ($10 million), mainly from higher peaking activities. These increases were partially offset by absence of cost of sales from UGID that was sold in September 2024 ($6 million).
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 $1.07 and $1.08, respectively, and the average unweighted British pound sterling-to-USD translation rates were approximately $1.28 and $1.24, 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 realized net gains of $4 million each in the 2024 and 2023 three-month periods.
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 2025 and 2024 three-month periods, the average unweighted euro-to-USD translation rates were approximately $1.05 and $1.09, respectively, and the average unweighted British pound sterling-to-USD translation rates were approximately $1.26 and $1.27, 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 realized net gains of $3 million and $6 million in the 2025 and 2024 three-month periods, respectively.
Previous wording
Average temperatures during the 2024 three-month period were 6.3% warmer than normal and comparable to the prior-year period. Although average temperatures during the 2024 three-month period were comparable to the prior-year period, we experienced significantly colder temperatures during the peak heating season month of December 2024. Total retail gallons sold decreased 1% during the 2024 three-month period, primarily due to continuing customer attrition.
Current wording
Average temperatures during the 2025 three-month period were 2.8% colder than normal and 10.5% colder than the prior-year period. Total retail gallons sold increased 3% during the 2025 three-month period primarily due to the impact from the colder weather, partially offset by continuing customer attrition.
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 14.9% higher than such prices during the 2023 three-month period. Total revenues decreased $2 million during the 2024 three-month period reflecting the lower retail volumes sold ($5 million) and slightly lower fee income that was largely offset by the effects of higher average retail propane selling prices ($6 million).
Current wording
Average daily wholesale propane commodity prices during the 2025 three-month period at Mont Belvieu, Texas, one of the major supply points in the U.S., were approximately 7% higher than such prices during the 2024 three-month period. Total revenues increased $53 million during the 2025 three-month period largely reflecting the effects of higher average retail propane selling prices ($30 million), higher retail volumes sold ($21 million) and higher wholesale revenues ($6 million), partially offset by lower fee income ($4 million).
Previous wording
Total margin increased $1 million in the 2024 three-month period reflecting higher average retail propane unit margins ($7 million) that was largely offset by the lower retail propane volumes sold ($3 million) and slightly lower fee income.
Current wording
Total margin increased $13 million in the 2025 three-month period largely attributable to the higher retail propane volumes sold ($12 million) and higher average retail propane unit margins ($7 million), partially offset by lower fee income ($4 million).
Previous wording
Temperatures in Gas Utility’s service territories during the 2024 three-month period were 3.2% warmer than normal and 3.1% 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 the colder weather compared to the prior-year period. Total Gas Utility volume decreased 6% during the 2024 three-month period, notwithstanding the increase in core market volumes, primarily reflecting lower large firm delivery service volumes. Electric Utility distribution sales volumes were comparable to the prior-year period.
Current wording
Temperatures in Gas Utility’s service territories during the 2025 six-month period were 1.1% warmer than normal and 10.1% colder than the prior-year period. Gas Utility core market volumes increased 12% during the 2025 six-month period, principally reflecting the impact from the colder weather compared to the prior-year period. Total Gas Utility volume was comparable to the prior year period, notwithstanding the increase in core market volumes, primarily reflecting lower large firm delivery service volumes. The increase in Electric Utility distribution sales volumes is primarily attributable to colder weather during the 2025 six-month period.
Previous wording
Utilities revenues decreased $8 million in the 2024 three-month period, reflecting 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, to a lesser extent, the effects of the weather normalization adjustments for Gas Utility. These decreases were partially offset by the effects of increases in base rates for WV Gas Utility effective January 1, 2024, the slightly higher core market volumes and higher off-system sales. Electric Utility revenues were comparable to the prior-year period.
Current wording
Utilities revenues increased $119 million in the 2025 six-month period, primarily reflecting higher Gas Utility revenues ($114 million). The increase in Gas Utility revenues was largely attributable to the higher core market volumes, the increase in the base rate for WV Gas Utility effective January 1, 2024 and higher off-system sales. These increases were partially offset by the effects of the weather normalization adjustments. The increase in Electric Utility revenues ($5 million) in the 2025 six-month period is principally attributable to the higher sales volumes and higher DS rates.
Previous wording
Utilities total margin increased $9 million during the 2024 three-month period, reflecting higher Gas Utility total margin. The increase in Gas Utility total margin mainly reflects the effects of increases in base rates for WV Gas Utility effective January 1, 2024 and the impacts from growth in the core market customers, partially offset by the effects of the weather normalization adjustments for Gas Utility. Electric Utility margin was comparable to the prior-year period.
Current wording
Utilities total margin increased $31 million during the 2025 six-month period, reflecting higher Gas Utility total margin. The increase in Gas Utility total margin mainly reflects the higher core market volumes and the increase in the base rate for WV Gas Utility effective January 1, 2024, partially offset by the effects of the weather normalization adjustments. Electric Utility margin was comparable to the prior-year period.
Previous wording
Utilities operating income and earnings before interest expense and income taxes increased $4 million and $6 million, respectively, during the 2024 three-month period. These increases largely reflect the previously mentioned increase in total margin ($9 million), partially offset by higher operating and administrative expenses ($3 million) and higher depreciation expense ($3 million). The higher operating and administrative expenses reflect, among other things, higher personnel expenses and higher uncollectible accounts expenses. 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 increased $19 million and $21 million, respectively, during the 2025 six-month period. These increases largely reflect the increase in total margin ($31 million), partially offset by higher operating and administrative expenses ($9 million) and higher depreciation expense ($6 million). The higher operating and administrative expenses reflect, among other things, higher maintenance expenses, higher personnel expenses and higher uncollectible accounts expenses. The higher depreciation expense compared to the prior-year period reflects the effects of continued distribution system capital expenditure activity.
Previous wording
Midstream & Marketing total margin decreased $17 million compared to the prior-year period, primarily reflecting (1) lower midstream margins ($10 million) mainly from lower natural gas gathering and processing activities, (2) absence of margins from UGID that was sold in September 2024 ($4 million) and (3) lower margins from capacity management activities.
Current wording
Midstream & Marketing total margin decreased $15 million compared to the prior-year period, primarily reflecting lower midstream margins ($15 million), mainly from lower natural gas gathering and processing activities, and absence of margins from UGID that was sold in September 2024 ($7 million). These increases were partially offset by higher total margin from natural gas marketing activities ($3 million) and higher margins from renewable energy ($2 million).
Previous wording
Midstream & Marketing operating income and earnings before interest expense and income taxes during the 2024 three-month period decreased $8 million and $7 million, respectively, compared to the prior-year period. The decrease in operating income is largely attributable to the lower total margin, partially offset by higher other operating income ($5 million), slightly lower operating and administrative expenses ($2 million) and depreciation and amortization expense ($2 million). The decrease in earnings before interest expense and income taxes principally reflects the decrease in operating income.
Current wording
Midstream & Marketing operating income and earnings before interest expense and income taxes during the 2025 six-month period decreased $8 million and $6 million, respectively, compared to the prior-year period. The decrease in operating income is largely attributable to the lower total margin ($15 million), partially offset by higher other operating income ($4 million) and lower depreciation and amortization expense ($4 million). The decrease in earnings before interest expense and income taxes principally reflects the decrease in operating income ($8 million), partially offset by slightly higher income from equity investees ($2 million).
Previous wording
Average temperatures during the 2024 three-month period were 3.5% warmer than normal and 8.2% colder than the prior-year period. Total LPG retail gallons sold during the 2024 three-month period slightly increased compared to the prior-year period, largely attributable to higher crop drying campaigns and colder weather, partially offset by lower natural gas conversions to LPG.
Current wording
Average temperatures during the 2025 six-month period were 2.8% warmer than normal and 9.4% colder than the prior-year period. Notwithstanding the colder weather, total LPG retail gallons sold during the 2025 six-month period slightly decreased compared to the prior-year period, largely attributable to continued structural conservation and the absence of certain customers who previously converted from natural gas to LPG, substantially offset by the impact from the colder weather and higher crop drying campaigns.
Previous wording
Average wholesale prices for propane and butane during the 2024 three-month period in northwest Europe were approximately 13.5% and 5.3% higher, respectively, compared with the prior-year period. UGI International revenues and cost of sales decreased $87 million and $72 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 in Fiscal 2024. The decrease in revenues from the energy marketing activities was partially offset by LPG price increases across Europe. The decrease in cost of sales from the energy marketing activities was partially offset by higher LPG product costs.
Current wording
Average wholesale prices for propane and butane during the 2025 six-month period in northwest Europe were approximately 12.3% and 7.8% higher, respectively, compared with the prior-year period. UGI International revenues and cost of sales decreased $110 million and $92 million, respectively, during the 2025 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 2025 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 was also attributable to the lower LPG retail volumes sold and the translation effects of the weaker foreign currencies (approximately $24 million), partially offset by LPG price increases across Europe. The decrease in cost of sales was also attributable to the lower LPG retail volumes sold and the translation effects of the weaker foreign currencies (approximately $12 million), substantially offset by higher LPG product costs.
Previous wording
UGI International total margin decreased $15 million during the 2024 three-month period reflecting lower margin contributions primarily from our energy marketing activities and, to a much lesser extent, lower margin contributions from our LPG business. The lower margin from our energy marketing activities reflects the impact of the aforementioned exit of substantially all of UGI International’s energy marketing business. The slightly lower margin from our LPG business primarily reflects the effects of lower average unit margins in the 2024 three-month period.
Current wording
UGI International total margin decreased $18 million during the 2025 six-month period primarily reflecting the translation effects of the weaker foreign currencies (approximately $12 million) and lower margin contributions primarily from our energy marketing activities, partially offset by slightly higher margin contributions from our LPG business. The lower margin from our energy marketing activities reflects the impact of the aforementioned exit of substantially all of UGI International’s energy marketing business. The slightly higher margin from our LPG business primarily reflects the effects of higher average unit margins in the 2025 six-month period, substantially offset by the lower LPG retail volumes sold.
Previous wording
UGI International operating income and earnings before interest expense and income taxes decreased $7 million each during the 2024 three-month period. The decrease in operating income principally reflects the previously mentioned $15 million decrease in total margin and lower foreign currency transaction gains ($2 million), partially offset by lower operating and administrative expenses ($13 million). The lower operating and administrative expenses in the 2024 three-month period primarily reflects lower personnel and maintenance expenses in our LPG business and a decline in energy marketing-related operating expenses, partially offset by the effects of inflationary increases. The decrease in earnings before interest expense and income taxes in the 2024 three-month period largely reflects the $7 million decrease in operating income.
Current wording
UGI International operating income and earnings before interest expense and income taxes increased $8 million and $5 million, respectively, during the 2025 six-month period. The increase in operating income principally reflects lower operating and administrative expenses ($26 million), partially offset by the decrease in total margin ($18 million). The lower operating and administrative expenses in the 2025 six-month period primarily reflects lower personnel and maintenance expenses in our LPG business, the translation effects of the weaker foreign currencies (approximately $7 million) and a decline in energy marketing-related operating expenses, partially offset by the effects of inflationary increases. The increase in earnings before interest expense and income taxes in the 2025 six-month period largely reflects the $8 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 ($3 million).
Previous wording
Operating income and earnings before interest expense and income taxes each increased $3 million during the 2024 three-month period primarily reflecting lower operating and administrative expenses ($7 million), partially offset by slightly lower gains on asset sales. The decrease in operating and administrative expenses primarily reflects lower compensation expenses.
Current wording
Operating income and earnings before interest expense and income taxes each increased $19 million during the 2025 six-month period, primarily reflecting the increase in total margin ($14 million) and lower operating and administrative expenses ($8 million). The decrease in operating and administrative expenses primarily reflects lower compensation expenses.
Previous wording
The Company expects to have sufficient liquidity including cash on hand and available borrowing capacity, to continue to support long-term commitments and ongoing operations. Our total available liquidity balance, comprising cash and cash equivalents and available borrowing capacity on our revolving credit facilities, totaled approximately $1.5 billion at December 31, 2024 and September 30, 2024.
Current wording
The Company expects to have sufficient liquidity including cash on hand and available borrowing capacity, to continue to support long-term commitments and ongoing operations. Our total available liquidity balance, comprising cash and cash equivalents and available borrowing capacity on our revolving credit facilities, totaled approximately $1.9 billion and $1.5 billion at March 31, 2025 and September 30, 2024, respectively. The Company does not have any senior notes or term loans maturing in the next twelve months. UGI and its subsidiaries were in compliance with all of its debt covenants as of March 31, 2025.
Previous wording
The primary sources of UGI’s cash and cash equivalents are the dividends and other cash payments made to UGI or its corporate subsidiaries by its principal business units. Our cash and cash equivalents totaled $240 million at December 31, 2024, compared with $213 million at September 30, 2024. Excluding cash and cash equivalents that reside at UGI’s operating subsidiaries, at December 31, 2024 and September 30, 2024, UGI had $102 million and $72 million of cash and cash equivalents, respectively. Such cash is available to pay dividends on UGI Common Stock and for investment purposes.
Current wording
The primary sources of UGI’s cash and cash equivalents are the dividends and other cash payments made to UGI or its corporate subsidiaries by its principal business units. Our cash and cash equivalents totaled $426 million at March 31, 2025, compared with $213 million at September 30, 2024. Excluding cash and cash equivalents that reside at UGI’s operating subsidiaries, at March 31, 2025 and September 30, 2024, UGI had $162 million and $72 million of cash and cash equivalents, respectively. Such cash is available to pay dividends on UGI Common Stock and for investment purposes.
Previous wording
The following significant financing activities occurred during the 2024 three-month period. See Note 8 to Condensed Consolidated Financial Statements for additional information on these transactions.
Current wording
The following significant financing activities occurred during Fiscal 2025. See Note 8 to Condensed Consolidated Financial Statements for additional information on these transactions.
Previous wording
On February 4, 2025, UGI International borrowed $221 million under its revolving credit facility. The proceeds from these borrowings were subsequently used to fund an intercompany loan of $221 million to AmeriGas Partners. AmeriGas Partners expects to use the proceeds from the intercompany loan to redeem the outstanding principal balance of the 5.50% Senior Notes maturing in May 2025. Concurrent with the intercompany loan agreement, on February 5, 2025, AmeriGas Partners issued a notice of early redemption for the remaining 5.50% Senior Notes maturing in May 2025, having an aggregate principal balance of $218 million, plus accrued and unpaid interest.
Current wording
AmeriGas Partners Senior Notes. On February 4, 2025, UGI International borrowed $221 million under its revolving credit facility. The proceeds from these borrowings were subsequently used to fund an intercompany loan of $221 million to AmeriGas Partners. In March 2025, AmeriGas Partners and AmeriGas Finance Corp, using the cash on hand from borrowings under the intercompany loan, redeemed all of the $218 million outstanding aggregate principal balance of the 5.50% Senior Notes due May 2025, plus accrued and unpaid interest. As of March 31, 2025, borrowings outstanding on the intercompany loan were $200 million.
Previous wording
(b)Permits UGI International, LLC or UGI International Holdings B.V. to borrow in euros or USD. At December 31, 2024 and 2023, the amount borrowed consisted of euro-denominated borrowings equivalent to $114 million and $182 million, respectively.
Current wording
(b)Permits UGI International, LLC or UGI International Holdings B.V. to borrow in euros or USD. At March 31, 2025, the amount borrowed consisted of euro-denominated borrowings equivalent to $87 million and USD-denominated borrowings of $221 million. At March 31, 2024, the amount borrowed consisted of euro-denominated borrowings equivalent to $146 million.
Previous wording
(c)Borrowings outstanding have been classified as “Long-term debt” on the Condensed Consolidated Balance Sheets. Subsequent to December 31, 2024, the Company made a net repayment of $17 million of such borrowings and classified these net repayments as “Current maturities of long-term debt” on the December 31, 2024 Condensed Consolidated Balance Sheet.
Current wording
(c)Borrowings outstanding have been classified as “Long-term debt” on the Condensed Consolidated Balance Sheets.
Previous wording
At December 31, 2024, the outstanding balance of ESFC trade receivables was $82 million, none of which were sold to the bank. At December 31, 2023, the outstanding balance of ESFC trade receivables was $95 million, $60 million of which was sold to the bank. There were no sales of receivables under the Receivables Facility during the three months ended December 31, 2024. During the three months ended December 31, 2023, peak sales of receivables and average daily amounts sold were $70 million and $45 million, respectively.
Current wording
At March 31, 2025, the outstanding balance of ESFC trade receivables was $110 million, none of which were sold to the bank. At March 31, 2024, the outstanding balance of ESFC trade receivables was $87 million, $36 million of which was sold to the bank. There were no sales of receivables under the Receivables Facility during the six months ended March 31, 2025. During the six months ended March 31, 2024, peak sales of receivables and average daily amounts sold were $97 million and $42 million, respectively.
Previous wording
On November 20, 2024, UGI’s Board of Directors declared a cash dividend equal to $0.375 per common share. The dividend was paid on January 1, 2025, to shareholders of record on December 16, 2024. On February 5, 2025, UGI’s Board of Directors declared a cash dividend equal to $0.375 per common share. The dividend will be payable on April 1, 2025, to shareholders of record on March 17, 2025.
Current wording
On November 20, 2024, UGI’s Board of Directors declared a cash dividend equal to $0.375 per common share. The dividend was paid on January 1, 2025, to shareholders of record on December 16, 2024. On February 5, 2025, UGI’s Board of Directors declared a cash dividend equal to $0.375 per common share. The dividend was paid on April 1, 2025, to shareholders of record on March 17, 2025. On May 7, 2025, UGI’s Board of Directors declared a quarterly dividend of $0.375 per common share. The dividend is payable July 1, 2025, to shareholders of record on June 16, 2025.
Previous wording
Operating Activities. Year-to-year variations in our cash flows from operating activities can be significantly affected by changes in operating working capital, especially during periods with significant changes in energy commodity prices. Cash flow provided by operating activities was $164 million in the 2024 three-month period compared to cash provided by operating activities of $119 million in the 2023 three-month period. Cash flow provided by operating activities before changes in operating working capital was $427 million in the 2024 three-month period compared to $376 million in the 2023 three-month period. Cash used to fund changes in operating working capital totaled $263 million in the 2024 three-month period, as compared to the $257 million of cash used to fund changes in operating working capital in the 2023 three-month period. The prior-year period includes $35 million of derivative instrument collateral deposit net repayments principally at our UGI International and Midstream & Marketing segments compared to collateral received of $47 million in the 2024 three-month period. The 2024 three-month period includes net refunds of deferred fuel and power costs of $2 million compared to net recoveries of $26 million in the prior-year period. Changes in operating working capital during the 2024 three-month period reflect, among other things, increases in cash used to fund accounts receivable and accounts payable offset by increased cash from changes in inventory.
Current wording
Operating Activities. Year-to-year variations in our cash flows from operating activities can be significantly affected by changes in operating working capital, especially during periods with significant changes in energy commodity prices. Cash flow provided by operating activities was $848 million in the 2025 six-month period compared to cash provided by operating activities of $641 million in the 2024 six-month period. Cash flow provided by operating activities before changes in operating working capital was $1,122 million in the 2025 six-month period compared to $1,055 million in the 2024 six-month period. Cash used to fund changes in operating working capital totaled $274 million in the 2025 six-month period, as compared to the $414 million of cash used to fund changes in operating working capital in the 2024 six-month period. The current-year period includes $67 million of derivative instrument collateral deposit receipts principally at our Midstream & Marketing segment compared to $38 million of such repayments principally at our UGI International segment in the prior-year period. The decrease in cash required to fund changes in operating working capital in the 2025 six-month period reflects, among other things, an increase in cash from accounts payable and other current assets partially offset by increased cash required to find accounts receivable.
Previous wording
Investing Activities. Investing activity cash flow is principally affected by cash expenditures for property, plant and equipment; cash paid for acquisitions of businesses and assets; investments in equity method investees; and cash activity associated with dispositions of businesses and assets. Cash flow used by investing activities was $232 million in the 2024 three-month period compared to $165 million in the 2023 three-month period. Cash expenditures for property, plant and equipment were $211 million in the 2024 three-month period compared with $156 million in the 2023 three-month period principally reflecting higher cash capital expenditures at our Midstream & Marketing and Utilities segments. Investments in equity method investments during the 2024 three-month period principally reflects our continuing investments in renewable energy projects at our Midstream & Marketing segment.
Current wording
Investing Activities. Investing activity cash flow is principally affected by cash expenditures for property, plant and equipment; cash paid for acquisitions of businesses and assets; investments in equity method investees; and cash activity associated with dispositions of businesses and assets. Cash flow used by investing activities was $367 million in the 2025 six-month period compared to $353 million in the 2024 six-month period. Cash expenditures for property, plant and equipment were $357 million in the 2025 six-month period compared with $325 million in the 2024 six-month period principally reflecting higher cash capital expenditures at our Midstream & Marketing and Utilities segments. Investments in equity method investments during the 2025 six-month period principally reflects our continuing investments in renewable energy projects at our Midstream & Marketing segment.
Previous wording
Cash flow provided by financing activities was $95 million in the 2024 three-month period compared to $3 million in the 2023 three-month period. The 2024 three-month period includes the issuance by UGI Utilities of $50 million and $125 million principal amount of senior notes. The 2023 three-month period includes the issuance by UGI Utilities of $250 million principal amount of senior notes. The net proceeds from these issuances were used to reduce short-term borrowings and for general corporate purposes. The 2024 three-month period activities also include, among other things, entering into the UGI Corporation
Current wording
Cash flow used by financing activities was $268 million in the 2025 six-month period compared to $321 million in the 2024 six-month period. The 2025 six-month period includes, among other things, (a) the issuance by UGI Utilities of $50 million and $125 million principal amount of senior notes (b) entering into the UGI Corporation 2025 Credit Agreement consisting of (1) a $475 million revolving credit facility and (2) a $400 million variable-rate term loan, proceeds from the UGI Corporation 2025 Credit Agreement were used to prepay all borrowings under the UGI Corporation Credit Facility Agreement due August 29, 2025 and, concurrent with such repayment, terminated the agreement, (c) the repurchase by AmeriGas Propane of the $218 outstanding aggregate principal balance of the 5.50% Senior Notes due May 2025. The 2024 six-month period includes the issuance by UGI Utilities of $250 million principal amount of senior notes.
Showing the first 40 of 43 pairs. Open the source sections for the rest.
Rearranged current paragraphs (18)
Current report — wording carried from elsewhere
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Current report — wording carried from elsewhere
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 report — wording carried from elsewhere
Utilities’ adjusted net income attributable to UGI Corporation increased $11 million in the 2025 three-month period compared to the prior-year period, primarily attributable to higher total margin due in large part to higher core market volumes.
Current report — wording carried from elsewhere
Midstream & Marketing’s adjusted net income attributable to UGI Corporation increased $30 million in the 2025 three-month period, primarily attributable to lower income tax expenses, reflecting higher investment tax credits in the 2025 three-month period.
Current report — wording carried from elsewhere
Adjusted net income attributable to UGI Corporation for the 2025 six-month period was $779 million (equal to $3.58 per diluted share) compared to $681 million (equal to $3.16 per diluted share) for the 2024 six-month period. The increase in adjusted net income attributable to UGI Corporation for the 2025 six-month period reflects higher earnings contributions from our Midstream & Marketing, UGI International and Utilities segments, partially offset by lower earnings contributions from the AmeriGas Propane segment. In addition, the increase in adjusted net income during the 2025 six-month period also reflects significantly lower income tax expenses primarily related to an increase in investment tax credits in our Midstream & Marketing segment and the release of a valuation allowance on deferred tax assets expected to be utilized in the current year in our UGI International segment. During the 2025 six-month period, temperatures in all of our segments were significantly colder than the prior-year period.
Current report — wording carried from elsewhere
Utilities total margin increased $22 million during the 2025 three-month period, reflecting higher Gas Utility total margin ($22 million). The increase in Gas Utility total margin mainly reflects the higher core market volumes, partially offset by the effects of the weather normalization adjustments. Electric Utility margin was comparable to the prior-year period.
Current report — wording carried from elsewhere
Utilities operating income and earnings before interest expense and income taxes each increased $15 million during the 2025 three-month period. These increases largely reflect the increase in total margin ($22 million), partially offset by higher operating and administrative expenses ($6 million) and higher depreciation expense ($3 million). The higher operating and administrative expenses reflect, among other things, higher maintenance expense and slightly higher uncollectible accounts expenses. The higher depreciation expense compared to the prior-year period reflects the effects of continued distribution system capital expenditure activity.
Current report — wording carried from elsewhere
Average wholesale prices for propane and butane during the 2025 three-month period in northwest Europe were approximately 11.1% and 10.2% higher, respectively, compared with the prior-year period. UGI International revenues and cost of sales decreased $23 million and $20 million, respectively, during the 2025 three-month period compared to the prior-year period. The decrease in revenues principally reflects lower LPG volumes sold and the translation effects of the weaker foreign currencies (approximately $19 million), substantially offset by the effects of LPG price increases across Europe. The decrease in cost of sales principally reflects lower LPG volumes sold and the translation effects of the weaker foreign currencies (approximately $10 million), substantially offset by higher LPG product costs.
Current report — wording carried from elsewhere
(a)Total margin represents revenues less cost of sales and revenue-related taxes (i.e., gross receipts and business and occupation taxes) of $17 million and $16 million during the 2025 and 2024 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 report — wording carried from elsewhere
(b)Deviation from average heating degree days is determined on a 10-year period utilizing volume-weighted weather data based on weather statistics provided by NOAA for airports located within Gas Utility’s service territories.
Current report — wording carried from elsewhere
Average temperatures across Midstream & Marketing’s energy marketing territory during the 2025 six-month period were 0.1% warmer than normal and 10.5% colder than the prior-year period.
Current report — wording carried from elsewhere
(b)Deviation from average heating degree days is determined on a rolling 10-year period utilizing volume-weighted weather data at locations in our UGI International service territories.
Current report — wording carried from elsewhere
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 2025 and 2024 six-month periods, the average unweighted euro-to-USD translation rates were approximately $1.06 and $1.08, respectively, and the average unweighted British pound sterling-to-USD translation rates were approximately $1.27 and $1.26, 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 realized net gains of $7 million and $10 million in the 2025 and 2024 six-month periods, respectively.
Current report — wording carried from elsewhere
(a)Total margin represents total revenues less total cost of sales.
Current report — wording carried from elsewhere
(b)Deviation from average heating degree days is determined on a rolling 10-year period utilizing volume-weighted weather data based on weather statistics provided by NOAA for 344 regions in the U.S., excluding Alaska and Hawaii.
Current report — wording carried from elsewhere
Average daily wholesale propane commodity prices during the 2025 six-month period at Mont Belvieu, Texas, one of the major supply points in the U.S., were approximately 11% higher than such prices during the 2024 six-month period. Total revenues increased $51 million during the 2025 six-month period reflecting the effects of higher average retail propane selling prices ($36 million), higher retail volumes sold ($16 million) and higher wholesale revenues ($6 million), partially offset by lower fee income ($7 million).
Current report — wording carried from elsewhere
Our consolidated interest expense during the 2025 six-month period was $204 million compared to $200 million during the 2024 six-month period. The slight increase in interest expense reflects the effects of higher average long-term debt outstanding at Utilities and UGI Corporation, substantially offset by lower interest expense from lower average long-term debt outstanding at AmeriGas Propane and lower average credit agreement borrowings during the 2025 six-month period.
Current report — wording carried from elsewhere
The decrease in the Company’s income tax rate for the 2025 six-month period principally reflects an increase in investment tax credits in our Midstream & Marketing segment and the release of a valuation allowance on deferred tax assets expected to be utilized by our UGI International segment.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
(a)Total margin represents revenues less cost of sales.
Previous report — wording carried elsewhere
(a)Total margin represents revenues less cost of sales.
Previous report — wording carried elsewhere
As of December 31, 2024, except for $218 million outstanding principal balance of AmeriGas Partners 5.50% Senior Notes maturing in May 2025, the Company does not have any senior notes or term loans maturing in the next twelve months. UGI and its subsidiaries were in compliance with all of its debt covenants as of December 31, 2024.
Previous report — wording carried elsewhere
2025 Credit Agreement consisting of (1) a $475 million revolving credit facility and (2) a $400 million variable-rate term loan. Proceeds from the UGI Corporation 2025 Credit Agreement were used to prepay all borrowings under the UGI Corporation Credit Facility Agreement due August 29, 2025 and, concurrent with such repayment, terminated the agreement.