UGI Reports Strong Fiscal Year 2015 Results and Issues Fiscal Year 2016 Guidance

UGI Corporation (NYSE: UGI) today reported adjusted net income
attributable to UGI of $353.8 million, or $2.01 per diluted share, for
the fiscal year ended September 30, 2015, compared to $353.8 million, or
$2.02 per diluted share for the fiscal year ended September 30, 2014.
Adjusted net income attributable to UGI excludes the impact of gains and
losses on commodity derivative instruments not associated with current
period transactions, acquisition and transition expenses associated with
the Finagaz acquisition, a loss on extinguishment of debt in France, and
the retroactive effects of a change in French tax legislation in 2014.
Adjusted earnings per diluted share for the year ended September 30,
2015 include a $0.01 loss as a result of the Finagaz acquisition, which
was completed on May 29, 2015. On a GAAP basis, net income attributable
to UGI was $281.0 million, or $1.60 per diluted share, for fiscal 2015,
compared to $337.2 million, or $1.92 per diluted share, for the prior
year period.

For the fourth fiscal quarter ended September 30, 2015, the company
reported adjusted net income attributable to UGI of $1.9 million, or
$0.01 per diluted share, compared to a loss of ($8.9) million, or
($0.05) per diluted share, for the fiscal quarter ended September 30,
2014. Adjusted results exclude the impact of gains and losses on
commodity derivative instruments not associated with current period
transactions and acquisition and transition expenses associated with the
Finagaz acquisition. On a GAAP basis, the company reported a net loss
attributable to UGI of ($9.2) million, or ($0.05) per share for the
quarter ended September 30, 2015 compared to a net loss of ($19.8)
million, or ($0.11) per share for the prior year period.

John L. Walsh, president and chief executive officer of UGI, said, “We
are pleased with our results this year as our business delivered
adjusted earnings that were in line with last year’s record year,
despite warmer and less extreme weather conditions in the U.S. We are
clearly seeing earnings contributions from investments made over the
past few years and we’re making excellent progress on a range of new
growth projects. In our Midstream & Marketing business we completed the
Auburn III and Temple LNG liquefaction expansions and filed with the
FERC for the Sunbury and PennEast Pipeline projects. In our Utility
business, we added approximately 17,000 new customers and continued to
invest heavily in infrastructure replacement and upgrade projects.
AmeriGas completed nine acquisitions and continued the volume growth in
its cylinder exchange and national accounts programs. Lastly, in our UGI
International segment, we completed the Finagaz acquisition in May and
the acquisition of Total’s LPG business in Hungary in September.”

Walsh continued, “Assuming normal weather patterns in 2016, we are
expecting continued strong performance as contributions from our major
new investments more than offset the impact of assumed normal weather in
our service territories. We expect adjusted diluted earnings per share
in the range of $2.15 to $2.30 for the fiscal year ending September 30,
2016.”

Segment Performance (Millions, except where otherwise indicated)

• Retail gallons sold decreased primarily due to temperatures that were
  8.9% warmer than the prior year.
• Revenues decreased primarily due to lower propane costs and the lower
  volume; average daily wholesale prices at Mont Belvieu, Texas in
  fiscal 2015 were approximately 50% lower than fiscal 2014.
• Total margin decreased as the lower retail volumes were partially
  offset by higher retail unit margins.
• The decrease in Partnership Adjusted EBITDA primarily reflects the
  lower total margin partially offset by lower operating and
  administrative expenses.

• Results include the impact of Finagaz, subsequent to its acquisition
  on May 29, 2015.
• Total retail gallons sold were higher principally reflecting the
  incremental retail gallons attributable to Finagaz.
• Revenues decreased primarily reflecting the combined impact on
  revenues of a weaker Euro and, to a lesser extent, the British Pound
  Sterling and the effect of lower LPG prices.
• Total margin increased as incremental margin from Finagaz, and
  slightly higher local currency total margin at AvantiGas and Antargaz
  were offset by the translation effects of the weaker Euro and British
  Pound.
• The decrease in operating income primarily reflects the higher total
  margin offset by increased operating, administrative, acquisition,
  transition and depreciation expenses related to the Finagaz
  acquisition.

• Temperatures in the Gas Utility service territory were 5.9% colder
  than normal but 3.7% warmer than the prior year.
• Despite the warmer weather, system throughput increased due to higher
  large customer delivery service volumes and core market customer
  growth.
• Revenues decreased reflecting lower revenue from off-system sales and
  the effects of lower gas recovery rates in fiscal 2015 partially
  offset by higher throughput.
• Total margin increased primarily due to higher core-market sales and
  higher large firm delivery service total margin.
• Operating and administrative expenses increased primarily due to
  higher distribution system and employee benefit expenses; depreciation
  expense increased primarily reflecting distribution system capital
  expenditures.
• Operating income decreased reflecting the slightly higher total margin
  more than offset by the higher operating, administrative, and
  depreciation expenses.

• Revenues decreased primarily reflecting lower natural gas prices in
  fiscal 2015.
• Total margin decreased reflecting lower natural gas marketing total
  margin due to lower average unit margins, and a decline in peaking
  total margin, reflecting lower natural gas prices in fiscal 2015,
  partially offset by:
  • Higher retail power total margin, reflecting higher unit margins,
    and higher natural gas gathering total margin, reflecting the
    expansion of our natural gas gathering system in the Marcellus
    region of Pennsylvania.
• Operating income decreased primarily reflecting the lower total
  margin, slightly higher operating and administrative expenses, and
  higher incremental depreciation principally associated with storage
  and natural gas gathering assets and the Conemaugh generating unit.

(a) Total margin represents total revenues less total cost of sales.

About UGI

UGI is a distributor and marketer of energy products and services.
Through subsidiaries, UGI operates natural gas and electric utilities in
Pennsylvania, distributes propane both domestically and internationally,
manages midstream energy and electric generation assets in Pennsylvania,
and engages in energy marketing in the Mid-Atlantic region. UGI, through
subsidiaries, is the sole General Partner and owns 26% of AmeriGas
Partners, L.P. (NYSE:APU), the nation's largest retail propane
distributor.

UGI Corporation will hold a live Internet Audio Webcast of its
conference call to discuss fiscal 2015 earnings and other current
activities at 9:00 AM ET on Tuesday, November 10, 2015. Interested
parties may listen to the audio webcast both live and in replay on the
Internet at http://www.ugicorp.com/investor-relations/events-and-presentations/default.aspx
or at the company website http://www.ugicorp.com
under Investor Relations. A telephonic replay will be available from
12:00 PM ET on November 10 through 11:59 PM ET on November 17. The
replay may be accessed at (855) 859-2056, and internationally at
1-404-537-3406, conference ID 62231286.

Comprehensive information about UGI Corporation is available on the
Internet at http://www.ugicorp.com.

This press release contains certain forward-looking statements that
management believes to be reasonable as of today’s date only. Actual
results may differ significantly because of risks and uncertainties that
are difficult to predict and many of which are beyond management’s
control. You should read UGI’s Annual Report on Form 10-K for a
more extensive list of factors that could affect results. Among
them are adverse weather conditions, cost volatility and availability of
all energy products, including propane, natural gas, electricity and
fuel oil, increased customer conservation measures, the impact of
pending and future legal proceedings, domestic and international
political, regulatory and economic conditions in the United States and
in foreign countries, including the current conflicts in the Middle East
and those involving Russia, and foreign currency exchange rate
fluctuations (particularly the euro), the timing of development of
Marcellus Shale gas production, the timing and success of our
acquisitions, commercial initiatives and investments to grow our
business, and our ability to successfully integrate acquired businesses
and achieve anticipated synergies. UGI undertakes no obligation
to release revisions to its forward-looking statements to reflect events
or circumstances occurring after today.

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