Ugi Corp 10-Q for FY2024 Q2

Ugi Corp (UGI)

10-Q 2024-05-02 For: 2024-03-31

Added on April 07, 2026

About this 10-Q

Ugi Corp filed this 10-Q on May 2, 2024, covering the quarter ended March 31, 2024 (FY2024 Q2).

Headline figures

Quarter ended March 31, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $2.47B; down 20.6% from $3.11B a year earlier
Net income: $496M; up 350.9% from net income of $110M a year earlier
Diluted EPS: $2.30; up 351.0% from $0.51 a year earlier

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Pennsylvania						23-2668356
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


Title of each class:	Trading Symbol(s):	Name of each exchange on which registered:
Common Stock, without par value	UGI	New York Stock Exchange
Corporate Units	UGIC	New York Stock Exchange


			Page

Glossary of Terms and Abbreviations			1

Part I Financial Information

Item 1. Financial Statements (unaudited)

Condensed Consolidated Balance Sheets as of March 31, 202 4 , September 30, 2023 and March 31, 202 3			5

Condensed Consolidated Statements of Income for the three a nd six months ended March 31, 202 4 and 202 3			6

Condensed Consolidated Statements of Comprehensive Income for the three and six months ended March 31, 202 4 and 202 3			7

Condensed Consolidated Statements of Cash Flows for the six months ended March 31, 202 4 and 202 3			8

Condensed Consolidated Statements of Changes in Equity for the three and si x months ended March 31, 202 4 and 202 3			9

Notes to Condensed Consolidated Financial Statements			10

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			37

Item 3. Quantitative and Qualitative Disclosures About Market Risk			56

Item 4. Controls and Procedures			58

Part II Other Information

Item 1. Legal Proceedings			59

Item 1A. Risk Factors			59





Item 6. Exhibits			59

Signatures			61


	March 31, 2024		September 30, 2023		March 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	263	$	241	$	321
Restricted cash	45		99		82
Accounts receivable (less allowances for doubtful accounts of $83, $71 and $80, respectively)	1,192		878		1,487
Accrued utility revenues	98		33		94

Inventories	375		433		433


Derivative instruments	38		75		110

Prepaid expenses and other current assets	203		286		233
Total current assets	2,214		2,045		2,760
Property, plant and equipment, (less accumulated depreciation of $4,781, $4,581 and $4,427, respectively)	8,608		8,547		8,255
Goodwill	3,048		3,027		3,709
Intangible assets, net	415		443		472
Utility regulatory assets	301		302		314
Derivative instruments	18		49		67


Other assets	1,020		988		852
Total assets	$	15,624	$	15,401	$	16,429
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	54	$	57	$	62

Short-term borrowings	333		649		453
Accounts payable	579		613		757


Derivative instruments	33		60		117

Other current liabilities	824		895		884
Total current liabilities	1,823		2,274		2,273
Long-term debt	6,730		6,543		6,702

Deferred income taxes	1,030		928		958

Derivative instruments	26		27		48
Other noncurrent liabilities	1,184		1,235		1,234
Total liabilities	10,793		11,007		11,215
Commitments and contingencies (Note 9)
Equity:
UGI Corporation stockholders’ equity:
Preferred stock, without par value (authorized – 5,000,000 shares; issued – 220,000, 220,000 and 220,000 Series A shares, respectively)	167		167		167
UGI Common Stock, without par value (authorized — 450,000,000 shares; issued — 211,052,608, 210,906,052 and 210,730,077 shares, respectively)	1,505		1,503		1,492
Retained earnings	3,460		3,027		3,842
Accumulated other comprehensive loss	(254)		(256)		(241)
Treasury stock, at cost	(56)		(55)		(55)
Total UGI Corporation stockholders’ equity	4,822		4,386		5,205
Noncontrolling interests	9		8		9
Total equity	4,831		4,394		5,214
Total liabilities and equity	$	15,624	$	15,401	$	16,429


	Three Months Ended March 31,				Six Months Ended March 31,
	2024		2023		2024		2023
Revenues	$	2,467	$	3,106	$	4,588	$	5,865
Costs and expenses:
Cost of sales (excluding depreciation and amortization shown below)	1,030		2,148		2,232		5,254
Operating and administrative expenses	591		587		1,121		1,116


Depreciation and amortization	138		132		275		263


Loss on disposal of UGI International energy marketing business	—		—		28		215
Other operating income, net	(9)		(16)		(17)		(34)
	1,750		2,851		3,639		6,814
Operating income (loss)	717		255		949		(949)
Income from equity investees	1		—		2		1


Other non-operating income (expense), net	11		2		(2)		(26)
Interest expense	(100)		(93)		(200)		(185)
Income (loss) before income taxes	629		164		749		(1,159)
Income tax (expense) benefit	(133)		(54)		(159)		315


Net income (loss) attributable to UGI Corporation	$	496	$	110	$	590	$	(844)
Earnings (loss) per common share attributable to UGI Corporation stockholders:
Basic	$	2.36	$	0.52	$	2.81	$	(4.02)
Diluted	$	2.30	$	0.51	$	2.74	$	(4.02)
Weighted-average common shares outstanding (thousands):
Basic	209,826		209,857		209,789		209,902
Diluted	215,245		216,120		215,393		209,902


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



Three Months Ended March 31, 2024	Total		Eliminations (a)		Utilities		Midstream & Marketing		UGI International		AmeriGas Propane		Corporate & Other
Revenues from contracts with customers:
Utility:
Core Market:
Residential	$	353	$	—	$	353	$	—	$	—	$	—	$	—
Commercial & Industrial	144		—		144		—		—		—		—
Large delivery service	54		—		54		—		—		—		—
Off-system sales and capacity releases	32		(24)		56		—		—		—		—
Other	11		—		11		—		—		—		—
Total Utility	594		(24)		618		—		—		—		—
Non-Utility:
LPG:
Retail	1,267		—		—		—		570		697		—
Wholesale	89		—		—		—		60		29		—
Energy Marketing	311		(38)		—		332		17		—		—
Midstream:
Pipeline	65		—		—		65		—		—		—
Peaking	8		(69)		—		77		—		—		—
Other	4		—		—		4		—		—		—
Electricity Generation	6		—		—		6		—		—		—
Other	67		—		—		—		16		51		—
Total Non-Utility	1,817		(107)		—		484		663		777		—
Total revenues from contracts with customers	2,411		(131)		618		484		663		777		—
Other revenues (c)	56		—		28		(1)		10		18		1
Total revenues	$	2,467	$	(131)	$	646	$	483	$	673	$	795	$	1


Three Months Ended March 31, 2023	Total		Eliminations (a)		Utilities		Midstream & Marketing		UGI International		AmeriGas Propane		Corporate & Other
Revenues from contracts with customers:
Utility:
Core Market:
Residential	$	424	$	—	$	424	$	—	$	—	$	—	$	—
Commercial & Industrial	177		—		177		—		—		—		—
Large delivery service	53		—		53		—		—		—		—
Off-system sales and capacity releases	45		(28)		73		—		—		—		—
Other	16		(1)		17		—		—		—		—
Total Utility	715		(29)		744		—		—		—		—
Non-Utility:
LPG:
Retail	1,328		—		—		—		573		755		—
Wholesale	109		—		—		—		64		45		—
Energy Marketing	740		(39)		—		498		281		—		—
Midstream:
Pipeline	66		—		—		66		—		—		—
Peaking	10		(58)		—		68		—		—		—
Other	4		—		—		4		—		—		—
Electricity Generation	2		—		—		2		—		—		—
Other	67		—		—		—		20		47		—
Total Non-Utility	2,326		(97)		—		638		938		847		—
Total revenues from contracts with customers	3,041		(126)		744		638		938		847		—
Other revenues (c)	65		(2)		30		—		10		20		7
Total revenues	$	3,106	$	(128)	$	774	$	638	$	948	$	867	$	7


Six Months Ended March 31, 2024	Total		Eliminations (a)		Utilities		Midstream & Marketing		UGI International		AmeriGas Propane		Corporate & Other
Revenues from contracts with customers:
Utility:
Core Market:
Residential	$	635	$	—	$	635	$	—	$	—	$	—	$	—
Commercial & Industrial	252		—		252		—		—		—		—

Large delivery service	103		—		103		—		—		—		—
Off-system sales and capacity releases	53		(36)		89		—		—		—		—
Other	20		—		20		—		—		—		—
Total Utility	1,063		(36)		1,099		—		—		—		—
Non-Utility:
LPG:
Retail	2,324		—		—		—		1,094		1,230		—
Wholesale	160		—		—		—		109		51		—
Energy Marketing (b)	638		(64)		—		604		140		—		(42)
Midstream:
Pipeline	130		—		—		130		—		—		—
Peaking	11		(111)		—		122		—		—		—
Other	7		—		—		7		—		—		—
Electricity Generation	14		—		—		14		—		—		—
Other	138		—		—		—		35		103		—
Total Non-Utility	3,422		(175)		—		877		1,378		1,384		(42)
Total revenues from contracts with customers	4,485		(211)		1,099		877		1,378		1,384		(42)
Other revenues (c)	103		—		40		—		20		40		3
Total revenues	$	4,588	$	(211)	$	1,139	$	877	$	1,398	$	1,424	$	(39)

























































Six Months Ended March 31, 2023	Total		Eliminations (a)		Utilities		Midstream & Marketing		UGI International		AmeriGas Propane		Corporate & Other
Revenues from contracts with customers:
Utility:
Core Market:
Residential	$	760	$	—	$	760	$	—	$	—	$	—	$	—
Commercial & Industrial	309		—		309		—		—		—		—
Large delivery service	100		—		100		—		—		—		—
Off-system sales and capacity releases	77		(61)		138		—		—		—		—
Other	26		(1)		27		—		—		—		—
Total Utility	1,272		(62)		1,334		—		—		—		—
Non-Utility:
LPG:
Retail	2,444		—		—		—		1,055		1,389		—
Wholesale	211		—		—		—		115		96		—
Energy Marketing	1,518		(116)		—		1,035		599		—		—
Midstream:
Pipeline	131		—		—		131		—		—		—
Peaking	27		(97)		—		124		—		—		—
Other	7		—		—		7		—		—		—
Electricity Generation	10		—		—		10		—		—		—
Other	142		—		—		—		38		104		—
Total Non-Utility	4,490		(213)		—		1,307		1,807		1,589		—
Total revenues from contracts with customers	5,762		(275)		1,334		1,307		1,807		1,589		—
Other revenues (c)	103		(2)		32		—		18		44		11
Total revenues	$	5,865	$	(277)	$	1,366	$	1,307	$	1,825	$	1,633	$	11



	Pension Benefits
Three Months Ended March 31,	2024		2023
Service cost	$	2	$	3
Interest cost	9		8
Expected return on assets	(11)		(12)

Amortization of:

Actuarial loss	1		—
Net benefit cost (income)	$	1	$	(1)



Six Months Ended March 31,	2024		2023
Service cost	$	4	$	5
Interest cost	18		17
Expected return on plan assets	(22)		(23)

Amortization of:

Actuarial loss (gain)	1		(1)
Net benefit cost (income)	$	1	$	(2)


	Asset (Liability)
	Level 1		Level 2		Level 3		Total
March 31, 2024:
Derivative instruments:
Assets:
Commodity contracts	$	107	$	39	$	—	$	146
Foreign currency contracts	$	—	$	16	$	—	$	16
Interest rate contracts	$	—	$	11	$	—	$	11

Liabilities:
Commodity contracts	$	(184)	$	(38)	$	—	$	(222)
Foreign currency contracts	$	—	$	(1)	$	—	$	(1)
Interest rate contracts	$	—	$	(3)	$	—	$	(3)

Non-qualified supplemental postretirement grantor trust investments (a)	$	41	$	—	$	—	$	41
September 30, 2023:
Derivative instruments:
Assets:
Commodity contracts (b)	$	117	$	115	$	—	$	232
Foreign currency contracts	$	—	$	38	$	—	$	38
Interest rate contracts	$	—	$	28	$	—	$	28

Liabilities:
Commodity contracts (b)	$	(193)	$	(81)	$	—	$	(274)
Foreign currency contracts	$	—	$	(2)	$	—	$	(2)


Non-qualified supplemental postretirement grantor trust investments (a)	$	39	$	—	$	—	$	39
March 31, 2023:
Derivative instruments:
Assets:
Commodity contracts	$	229	$	145	$	—	$	374
Foreign currency contracts	$	—	$	23	$	—	$	23
Interest rate contracts	$	—	$	25	$	—	$	25

Liabilities:
Commodity contracts	$	(294)	$	(138)	$	—	$	(432)
Foreign currency contracts	$	—	$	(4)	$	—	$	(4)
Interest rate contracts	$	—	$	(21)	$	—	$	(21)

Non-qualified supplemental postretirement grantor trust investments (a)	$	31	$	—	$	—	$	31


	March 31, 2024		September 30, 2023		March 31, 2023
Carrying amount	$	6,826	$	6,647	$	6,805
Estimated fair value	$	6,647	$	6,238	$	6,480


			Notional Amounts (in millions)
Type	Units	Settlements Extending Through	March 31, 2024		September 30, 2023		March 31, 2023
Commodity Price Risk:
Regulated Utility Operations
PA Gas Utility NYMEX natural gas futures and option contracts	Dekatherms	February 2025	13		38		12


Non-utility Operations
LPG swaps	Gallons	September 2026	425		727		691
Natural gas futures, forward, basis swap, options and pipeline contracts (a)	Dekatherms	March 2028	339		338		366




Electricity forward and futures contracts	Kilowatt hours	December 2027	544		1,260		1,890

Interest Rate Risk:
Interest rate swaps	Euro	March 2026	€	300	€	300	€	300
Interest rate swaps	USD	September 2026	$	1,263	$	1,270	$	1,277

Foreign Currency Exchange Rate Risk:
Forward foreign currency exchange contracts	USD	September 2026	$	240	$	425	$	285
Net investment hedge forward foreign exchange contracts	Euro	December 2026	€	256	€	256	€	331


	Six Months Ended March 31,
	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) including noncontrolling interests	$	590	$	(844)
Adjustments to reconcile net income (loss) including noncontrolling interests to net cash provided by operating activities:
Depreciation and amortization	275		263
Deferred income tax expense (benefit), net	95		(346)
Provision for uncollectible accounts	35		36

Changes in unrealized gains and losses on derivative instruments	54		1,713
Loss on disposal of UGI International energy marketing business	28		215




Settlement of Energy Services interest rate swap	—		32
Amortization of Energy Services interest rate swap settlement	(11)		—
Other, net	(11)		20
Net change in:
Accounts receivable and accrued utility revenues	(404)		(450)
Income taxes receivable	—		91
Inventories	63		254
Utility deferred fuel and power costs, net of changes in unsettled derivatives	3		40
Accounts payable	(20)		(148)
Derivative instruments collateral deposits paid	(38)		(453)
Other current assets	19		21
Other current liabilities	(37)		(20)
Net cash provided by operating activities	641		424
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures for property, plant and equipment	(325)		(414)
Acquisitions of businesses and assets, net of cash acquired	—		(9)
Investments in equity method investees	(47)		(63)
Settlements of net investment hedges	—		22
Other, net	19		(9)
Net cash used by investing activities	(353)		(473)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends on UGI Common Stock	(157)		(151)

Issuances of long-term debt, net of discount and issuance costs	409		1,277


	March 31, 2024		September 30, 2023		March 31, 2023
Regulatory assets (a):
Income taxes recoverable	$	93	$	94	$	94
Underfunded pension plans	109		111		118
Environmental costs	32		28		34
Deferred fuel and power costs	—		27		38
Removal costs, net	23		23		22
Other	55		64		53
Total regulatory assets	$	312	$	347	$	359
Regulatory liabilities (a):
Postretirement benefit overcollections	$	11	$	12	$	10

Deferred fuel and power refunds	34		55		28
State tax benefits — distribution system repairs	44		43		39

Excess federal deferred income taxes	250		254		262
Other	8		2		6
Total regulatory liabilities	$	347	$	366	$	345


	Carrying Value						Ownership Interest

Investees	March 31, 2024		September 30, 2023		March 31, 2023		March 31, 2024	September 30, 2023	March 31, 2023
Midstream & Marketing:
Aurum Renewables	$	46	$	45	$	19	40%	40%	40%
Pine Run	81		77		72		49%	49%	49%
MBL Bioenergy	157		122		78		99.99%	99.99%	99.99%
Other	21		20		20		various	various	various
Total Midstream & Marketing	305		264		189
UGI International	35		35		30		various	various	various

Total investments in equity method investees	$	340	$	299	$	219


	Three Months Ended March 31,				Six Months Ended March 31,
Adjusted diluted earnings per share	2024		2023		2024		2023
Utilities	$	0.72	$	0.66	$	1.12	$	1.04
Midstream & Marketing	0.56		0.31		0.98		0.66
UGI International	0.42		0.43		0.81		0.64
AmeriGas Propane	0.17		0.34		0.25		0.56
Corporate & Other (a)	0.43		(1.23)		(0.42)		(6.92)
Diluted earnings (loss) per share (c)	2.30		0.51		2.74		(4.02)
Net (gains) losses on commodity derivative instruments not associated with current-period transactions (c)	(0.50)		1.09		(0.16)		5.80
Unrealized losses on foreign currency derivative instruments	—		0.03		0.06		0.17



Business transformation expenses	—		0.01		—		0.01
AmeriGas operations enhancement for growth project	0.02		0.02		0.05		0.05


Restructuring costs	0.13		—		0.14		—
Costs associated with exit of UGI International energy marketing business	—		0.02		0.31		0.81
Impairment of assets	0.02		—		0.02		—

Total adjustments (a)	(0.33)		1.17		0.42		6.84
Adjusted diluted earnings per share (c)	$	1.97	$	1.68	$	3.16	$	2.82


Three Months Ended March 31,:
	Gain (Loss) Recognized in AOCI				Gain Reclassified from AOCI into Income				Location of Gain Reclassified from AOCI into Income
Cash Flow Hedges:	2024		2023		2024		2023



Interest rate contracts	$	17	$	(21)	$	14	$	7	Interest expense


Net Investment Hedges:
Foreign currency contracts	$	8	$	(1)

	Gain (Loss) Recognized in Income
Derivatives Not Designated as Hedging Instruments:	2024		2023		Location of Gain (Loss) Recognized in Income
Commodity contracts	$	(1)	$	6	Revenues
Commodity contracts	26		(343)		Cost of sales

Commodity contracts	(1)		2		Other operating income, net
Foreign currency contracts	8		(2)		Other non-operating income (expense), net
Total	$	32	$	(337)

Six Months Ended March 31,:
	Loss Recognized in AOCI				Gain Reclassified from AOCI into Income				Location of Gain Reclassified from AOCI into Income
Cash Flow Hedges:	2024		2023		2024		2023



Interest rate contracts	$	(5)	$	(17)	$	27	$	14	Interest expense


Net Investment Hedges:
Foreign currency contracts	$	(2)	$	(24)

	Gain (Loss) Recognized in Income
Derivatives Not Designated as Hedging Instruments:	2024		2023		Location of Gain (Loss) Recognized in Income
Commodity contracts	$	1	$	10	Revenues
Commodity contracts	(129)		(1,669)		Cost of sales

Commodity contracts	2		5		Other operating income, net
Foreign currency contracts	(8)		(34)		Other non-operating income (expense), net
Total	$	(134)	$	(1,688)


Three Months Ended March 31, 2024	Postretirement Benefit Plans		Derivative Instruments		Foreign Currency		Total
AOCI — December 31, 2023	$	17	$	1	$	(250)	$	(232)
Other comprehensive income (loss) before reclassification adjustments	—		12		(24)		(12)
Amounts reclassified from AOCI	(1)		(9)		—		(10)
Other comprehensive (loss) income attributable to UGI	(1)		3		(24)		(22)
AOCI — March 31, 2024	$	16	$	4	$	(274)	$	(254)

Three Months Ended March 31, 2023	Postretirement Benefit Plans		Derivative Instruments		Foreign Currency		Total
AOCI — December 31, 2022	$	14	$	35	$	(280)	$	(231)
Other comprehensive (loss) income before reclassification adjustments	—		(15)		10		(5)
Amounts reclassified from AOCI	—		(5)		—		(5)
Other comprehensive (loss) income attributable to UGI	—		(20)		10		(10)
AOCI — March 31, 2023	$	14	$	15	$	(270)	$	(241)

Six Months Ended March 31, 2024	Postretirement Benefit Plans		Derivative Instruments		Foreign Currency		Total
AOCI — September 30, 2023	$	17	$	26	$	(299)	$	(256)
Other comprehensive (loss) income before reclassification adjustments	—		(3)		25		22
Amounts reclassified from AOCI	(1)		(19)		—		(20)
Other comprehensive (loss) income attributable to UGI	(1)		(22)		25		2
AOCI — March 31, 2024	$	16	$	4	$	(274)	$	(254)

Six Months Ended March 31, 2023	Postretirement Benefit Plans		Derivative Instruments		Foreign Currency		Total
AOCI — September 30, 2022	$	14	$	37	$	(431)	$	(380)
Other comprehensive (loss) income before reclassification adjustments	—		(12)		161		149
Amounts reclassified from AOCI	—		(10)		—		(10)
Other comprehensive (loss) income attributable to UGI	—		(22)		161		139
AOCI — March 31, 2023	$	14	$	15	$	(270)	$	(241)


Three Months Ended March 31, 2024	Total		Eliminations			Utilities		Midstream & Marketing		UGI International		AmeriGas Propane		Corporate & Other (a)
Revenues from external customers	$	2,467	$	—		$	623	$	375	$	673	$	795	$	1
Intersegment revenues	$	—	$	(131)	(b)	$	23	$	108	$	—	$	—	$	—
Cost of sales	$	1,030	$	(131)	(b)	$	274	$	283	$	368	$	362	$	(126)
Operating income	$	717	$	1		$	225	$	151	$	124	$	138	$	78
Income (loss) from equity investees	1		—			—		2		(1)		—		—

Other non-operating income, net	11		—			1		—		8		—		2
Earnings before interest expense and income taxes	729		1			226		153		131		138		80
Interest expense	(100)		—			(24)		(9)		(11)		(40)		(16)
Income before income taxes	$	629	$	1		$	202	$	144	$	120	$	98	$	64

Depreciation and amortization	$	138	$	—		$	41	$	22	$	29	$	44	$	2
Capital expenditures (including the effects of accruals)	$	167	$	—		$	91	$	33	$	19	$	24	$	—

Three Months Ended March 31, 2023	Total		Eliminations			Utilities		Midstream & Marketing		UGI International		AmeriGas Propane		Corporate & Other (a)
Revenues from external customers	$	3,106	$	—		$	746	$	540	$	948	$	867	$	5
Intersegment revenues	$	—	$	(128)	(b)	$	28	$	98	$	—	$	—	$	2
Cost of sales	$	2,148	$	(126)	(b)	$	426	$	479	$	633	$	430	$	306
Operating income (loss)	$	255	$	(1)		$	203	$	103	$	120	$	138	$	(308)

Income (loss) income from equity investees	—		—			—		2		(2)		—		—


Other non-operating income (expense), net	2		—			2		—		10		—		(10)
Earnings (loss) before interest expense and income taxes	257		(1)			205		105		128		138		(318)
Interest expense	(93)		—			(21)		(11)		(9)		(39)		(13)
Income (loss) before income taxes	$	164	$	(1)		$	184	$	94	$	119	$	99	$	(331)

Depreciation and amortization	$	132	$	—		$	37	$	22	$	28	$	45	$	—
Capital expenditures (including the effects of accruals)	$	214	$	—		$	133	$	23	$	30	$	28	$	—

Six Months Ended March 31, 2024	Total		Eliminations			Utilities		Midstream & Marketing		UGI International		AmeriGas Propane		Corporate & Other (a)
Revenues from external customers	$	4,588	$	—		$	1,103	$	702	$	1,398	$	1,424	$	(39)
Intersegment revenues	$	—	$	(211)	(b)	$	36	$	175	$	—	$	—	$	—
Cost of sales	$	2,232	$	(211)	(b)	$	495	$	522	$	814	$	645	$	(33)
Operating income (loss)	$	949	$	—		$	359	$	250	$	237	$	209	$	(106)
Income (loss) from equity investees	2		—			—		5		(3)		—		—

Other non-operating (expense) income, net	(2)		—			2		—		14		—		(18)
Earnings (loss) before interest expense and income taxes	949		—			361		255		248		209		(124)
Interest expense	(200)		—			(47)		(20)		(22)		(81)		(30)
Income (loss) before income taxes	$	749	$	—		$	314	$	235	$	226	$	128	$	(154)

Depreciation and amortization	$	275	$	—		$	82	$	44	$	59	$	88	$	2
Capital expenditures (including the effects of accruals)	$	300	$	—		$	173	$	52	$	31	$	44	$	—
As of March 31, 2024
Total assets	$	15,624	$	(131)		$	5,850	$	3,204	$	3,030	$	3,467	$	204



Three Months Ended March 31, 2024	Location on Income Statement	Midstream & Marketing		UGI International		AmeriGas Propane

Net gains on commodity derivative instruments not associated with current-period transactions	Cost of sales	$	41	$	53	$	34
Net gains on commodity derivative instruments not associated with current-period transactions	Other operating income, net	$	—	$	1	$	—
Restructuring costs	Operating and administrative expenses	$	—	$	(34)	$	—
AmeriGas operations enhancement for growth project	Operating and administrative expenses	$	—	$	—	$	(6)

Unrealized gains on foreign currency derivative instruments	Other non-operating income (expense), net	$	—	$	1	$	—
Costs associated with exit of the UGI International energy marketing business	Operating and administrative expenses/Other operating income, net	$	—	$	(2)	$	—
Impairment of assets	Other operating income, net	$	—	$	(7)	$	—


Three Months Ended March 31, 2023	Location on Income Statement	Midstream & Marketing		UGI International		AmeriGas Propane
Net gains on commodity derivative instruments not associated with current-period transactions	Revenues	$	4	$	1	$	—
Net (losses) gains on commodity derivative instruments not associated with current-period transactions	Cost of sales	$	(78)	$	(235)	$	8
Net losses on commodity derivative instruments not associated with current-period transactions	Other operating income, net	$	—	$	(1)	$	—

AmeriGas operations enhancement for growth project	Operating and administrative expenses	$	—	$	—	$	(6)
Unrealized losses on foreign currency derivative instruments	Other non-operating income (expense), net	$	—	$	(10)	$	—


Adjusted net income attributable to UGI Corporation	Three Months Ended March 31,				Six Months Ended March 31,
(Dollars in millions)	2024		2023		2024		2023
Utilities	$	155	$	143	$	241	$	224
Midstream & Marketing	120		66		212		143
UGI International	91		92		174		137
AmeriGas Propane	37		73		53		122
Corporate & Other (a)	93		(264)		(90)		(1,470)
Net income (loss) attributable to UGI Corporation	496		110		590		(844)
Net (gains) losses on commodity derivative instruments not associated with current-period transactions (net of tax of $19, $(66), $1 and $(429), respectively)	(110)		235		(33)		1,234
Unrealized (gains) losses on foreign currency derivative instruments (net of tax of $0, $(3), $(6) and $(14), respectively)	(1)		7		13		36



Business transformation expenses (net of tax of $0, $0, $0 and $(1), respectively)	—		2		—		3
AmeriGas operations enhancement for growth project (net of tax of $(1), $(1), $(3) and $(3), respectively)	5		5		10		10


Restructuring costs (net of tax of $(9), $0, $(10) and $0, respectively)	27		—		30		—
Costs associated with exit of UGI International energy marketing business (net of tax of $(1), $4, $(14) and $(64), respectively)	1		4		66		170
Impairment of assets (net of tax of $(2), $0, $(2), and $0, respectively)	5		—		5		—
Total adjustments (a) (b)	(73)		253		91		1,453
Adjusted net income attributable to UGI Corporation	$	423	$	363	$	681	$	609


For the three months ended March 31,	2024			2023			Increase (Decrease)
(Dollars in millions)
Revenues	$	646		$	774		$	(128)	(17)	%
Total margin (a)	$	363		$	338		$	25	7	%
Operating and administrative expenses (a)	$	97		$	97		$	—	—	%
Operating income	$	225		$	203		$	22	11	%
Earnings before interest expense and income taxes	$	226		$	205		$	21	10	%
Gas Utility system throughput—bcf
Core market	45			44			1		2	%
Total	121			125			(4)		(3)	%
Electric Utility distribution sales - gwh	266			257			9		4	%
Gas Utility heating degree days—% (warmer) than normal (b)	(16.4)		%	(19.7)		%	—		—


For the six months ended March 31,	2024			2023			Increase (Decrease)
(Dollars in millions)
Revenues	$	1,139		$	1,366		$	(227)	(17)	%
Total margin (a)	$	628		$	594		$	34	6	%
Operating and administrative expenses (a)	$	185		$	188		$	(3)	(2)	%
Operating income	$	359		$	329		$	30	9	%
Earnings before interest expense and income taxes	$	361		$	333		$	28	8	%
Gas Utility system throughput—bcf
Core market	75			78			(3)		(4)	%
Total	225			219			6		3	%
Electric Utility distribution sales - gwh	507			503			4		1	%
Gas Utility heating degree days—% (warmer) than normal (b)	(14.2)		%	(11.6)		%	—		—


	March 31, 2024												September 30, 2023
(Millions of dollars)	Utilities		Midstream & Marketing		UGI International		AmeriGas Propane		Corp & Other		Total		Total
Short-term borrowings	$	151	$	36	$	146	$	—	$	—	$	333	$	649

Long-term debt (including current maturities):
Senior notes	$	1,755	$	—	$	432	$	2,362	$	—	$	4,549	$	4,329
Term loans	126		790		324		—		709		1,949		1,967
Other long-term debt	19		41		8		—		260		328		351
Unamortized debt issuance costs	(7)		(14)		(7)		(12)		(2)		(42)		(47)
Total long-term debt	$	1,893	$	817	$	757	$	2,350	$	967	$	6,784	$	6,600
Total debt	$	2,044	$	853	$	903	$	2,350	$	967	$	7,117	$	7,249


(Currency in millions)	Total Capacity		Borrowings Outstanding		Letters of Credit and Guarantees Outstanding		Available Borrowing Capacity
As of March 31, 2024
AmeriGas OLP	$	400	$	—	$	2	$	398
UGI International, LLC (a)	€	500	€	135	€	—	€	365
Energy Services	$	260	$	—	$	—	$	260
UGI Utilities	$	375	$	87	$	—	$	288
Mountaineer	$	150	$	64	$	—	$	86
UGI Corporation (b)	$	300	$	260	$	—	$	40
As of March 31, 2023
AmeriGas OLP	$	600	$	30	$	2	$	568
UGI International, LLC (a)	€	500	€	150	€	—	€	350
Energy Services	$	260	$	—	$	—	$	260
UGI Utilities	$	425	$	183	$	—	$	242
Mountaineer	$	150	$	59	$	—	$	91
UGI Corporation (b)	$	300	$	218	$	—	$	82


	For the six months ended				For the six months ended
	March 31, 2024				March 31, 2023
(Millions of dollars or euros)	Average		Peak		Average		Peak
AmeriGas OLP	$	—	$	25	$	153	$	242
UGI International, LLC	€	179	€	229	€	188	€	300
Energy Services	$	30	$	62	$	13	$	82
UGI Utilities	$	192	$	316	$	248	$	340
Mountaineer	$	88	$	104	$	85	$	101
UGI Corporation	$	238	$	289	$	236	$	292


	Asset (Liability)
(Millions of dollars)	Fair Value		Change in Fair Value
March 31, 2024
Commodity price risk (1)	$	(70)	$	(98)
Interest rate risk (2)	$	8	$	(13)
Foreign currency exchange rate risk (3)	$	15	$	(27)



31.1						Certification by the Interim Chief Executive Officer relating to the Registrant’s Report on Form 10-Q for the quarter ended March 31, 2024 , pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2						Certification by the Chief Financial Officer relating to the Registrant’s Report on Form 10-Q for the quarter ended March 31, 2024 , pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32						Certification by the Interim Chief Executive Officer and the Chief Financial Officer relating to the Registrant’s Report on Form 10-Q for the quarter ended March 31, 2024 , pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

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104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)


		UGI Corporation
		(Registrant)

Date:	May 2, 2024	By:	/s/ Sean P. O’Brien
			Sean P. O’Brien
			Chief Financial Officer


Date:	May 2, 2024	By:	/s/ Jean Felix Tematio Dontsop
			Jean Felix Tematio Dontsop
			Vice President, Chief Accounting Officer
			and Corporate Controller


Date:	May 2, 2024
		/s/ Mario Longhi
		Mario Longhi Interim President and Chief Executive Officer of UGI Corporation