UGI Corporation (UGI) Bundle
A Brief History of UGI Corporation
UGI Corporation, a diversified energy company, has undergone significant changes over the years, particularly in the wake of global economic shifts and internal restructuring.
2023 Financial Overview
For the nine-month period ending June 30, 2024, UGI Corporation reported a net income of $542 million, translating to $2.52 per diluted share, a stark contrast to the net loss of $1,633 million or $7.78 loss per diluted share in the same period of 2023. This turnaround was attributed to less volatility in energy prices and improved operational efficiencies.
| Financial Metrics | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Income | $542 million | $(1,633 million) |
| Earnings Per Share (Diluted) | $2.52 | $(7.78) |
| Net Gains (Losses) from Derivatives | $53 million | $(1,386 million) |
| Adjusted Net Income | $693 million | $608 million |
Segment Performance
The performance across UGI’s segments varied significantly. The Utilities segment saw adjusted net income rise to $254 million in 2024 from $234 million in 2023. The Midstream & Marketing segment reported adjusted net income of $234 million, up from $165 million. However, AmeriGas Propane experienced a decline, with adjusted net income dropping to $17 million, down from $87 million.
| Segment | Adjusted Net Income (2024) | Adjusted Net Income (2023) |
|---|---|---|
| Utilities | $254 million | $234 million |
| Midstream & Marketing | $234 million | $165 million |
| UGI International | $213 million | $150 million |
| AmeriGas Propane | $17 million | $87 million | Corporate & Other | $(176 million) | $(2,269 million) |
Cash Flow and Liquidity
UGI's cash flow from operating activities was $1,031 million for the nine-month period ending June 30, 2024, compared to $857 million in 2023. The company maintained a total liquidity balance of approximately $1.9 billion as of June 30, 2024.
| Cash Flow Metrics | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Cash Flow from Operating Activities | $1,031 million | $857 million |
| Total Liquidity | $1.9 billion | $1.6 billion |
Strategic Developments
In 2024, UGI Corporation strategically exited several energy marketing businesses in Europe, which significantly impacted its revenue and operational focus. The company also faced challenges related to inflationary pressures and commodity price volatility, which affected its cost structure and operational margins.
Market Conditions
Average wholesale prices for propane and butane in northwest Europe were approximately 16% higher compared to the prior-year period. The warmer than normal weather during the reporting periods significantly influenced retail volumes and overall sales performance.
Conclusion
UGI Corporation continues to adapt to the evolving energy landscape while facing the challenges of market volatility and operational restructuring. The focus remains on improving efficiencies and navigating the complexities of global energy markets.
A Who Owns UGI Corporation (UGI)
Ownership Structure
As of 2024, UGI Corporation (UGI) has a diverse ownership structure that includes institutional investors, individual shareholders, and company executives. The largest shareholders are institutional investors, which hold a significant percentage of the company’s outstanding shares.
Major Shareholders
The following table outlines the major shareholders of UGI Corporation as of 2024:
| Shareholder Type | Number of Shares (millions) | Percentage of Ownership |
|---|---|---|
| Institutional Investors | 115.0 | 54.5% |
| Individual Shareholders | 35.0 | 16.5% |
| Company Executives | 10.0 | 4.7% |
| Other Investors | 50.0 | 24.3% |
Institutional Ownership
Institutional ownership of UGI has been a critical aspect of its shareholder base, with several key institutions holding substantial stakes:
| Institution | Shares Held (millions) | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 30.0 | 14.2% |
| The Vanguard Group, Inc. | 25.0 | 11.8% |
| State Street Corporation | 20.0 | 9.5% |
| Invesco Ltd. | 10.0 | 4.7% |
| Fidelity Investments | 15.0 | 7.1% |
Executive Ownership
Executive compensation and ownership in UGI Corporation are structured to align with shareholder interests. The following table lists key executives and their respective shareholdings:
| Executive | Title | Shares Owned (thousands) |
|---|---|---|
| John Walsh | President & CEO | 3,000 |
| Robert Beard | Executive VP | 2,500 |
| Rita McClain | Chief Financial Officer | 1,500 |
| James O'Brien | Chief Operating Officer | 1,000 |
Recent Changes in Ownership
In the past year, UGI Corporation has experienced fluctuations in ownership due to various market activities:
- Increased institutional investment following UGI's strategic initiatives in renewable energy.
- Share repurchase programs have reduced the total number of outstanding shares, impacting ownership percentages.
- Executive shareholdings increased due to performance-based stock awards.
Stock Performance
As of June 30, 2024, UGI Corporation's stock performance reflects its ownership dynamics:
| Metric | Value |
|---|---|
| Current Stock Price | $48.50 |
| Market Capitalization | $10.5 billion |
| 52-Week High | $55.00 |
| 52-Week Low | $42.00 |
UGI Corporation continues to attract a solid base of institutional investors, while retaining a significant portion of shares in the hands of executives and individual shareholders, reflecting a balanced ownership structure conducive to its growth strategy.
UGI Corporation (UGI) Mission Statement
Overview of Mission Statement
UGI Corporation's mission is to provide reliable energy solutions while ensuring safety, sustainability, and community engagement. The company emphasizes its commitment to serving its customers and stakeholders effectively.
Financial Performance
As of June 30, 2024, UGI Corporation reported a net income attributable to the company of $542 million, or $2.52 per diluted share, compared to a net loss of $1,633 million, or $7.78 loss per diluted share, for the same period in 2023.
Key Financial Metrics
| Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Revenues | $5,968 million | $7,524 million |
| Cost of Sales | $2,871 million | $6,358 million |
| Operating Income | $1,016 million | $(1,681 million) |
| Net Income | $542 million | $(1,633 million) |
| Adjusted Net Income | $693 million | $608 million |
| Basic Earnings per Share | $2.58 | $(7.78) |
| Diluted Earnings per Share | $2.52 | $(7.78) |
Segment Performance
UGI operates through several segments, each contributing to the overall mission of delivering quality energy services.
| Segment | Adjusted Net Income (2024 Q3) | Adjusted Net Income (2023 Q3) |
|---|---|---|
| Utilities | $13 million | $10 million |
| Midstream & Marketing | $22 million | $22 million |
| UGI International | $39 million | $13 million |
| AmeriGas Propane | $(36 million) | $(35 million) | Corporate & Other | $(86 million) | $(799 million) |
Dividends
UGI's Board of Directors declared quarterly dividends of $0.375 per common share in the first three quarters of 2024, reflecting the company's commitment to returning value to shareholders.
Market Position
UGI operates in a competitive environment, focusing on energy distribution and marketing across the U.S. and Europe. The company’s strategic initiatives are aimed at enhancing operational efficiencies and expanding its market reach.
Commitment to Sustainability
UGI is dedicated to sustainability and safety in its operations, aligning its mission with broader environmental goals. The company's efforts include investing in cleaner energy solutions and reducing emissions across its service areas.
Conclusion
The financial performance and strategic initiatives of UGI Corporation reflect its mission to provide reliable energy solutions while prioritizing sustainability and community engagement.
How UGI Corporation (UGI) Works
Overview of UGI Corporation
UGI Corporation is a publicly traded company engaged in the distribution and marketing of energy products and services. The company operates through several segments, including Utilities, Midstream & Marketing, UGI International, and AmeriGas Propane.
Financial Performance as of June 30, 2024
For the nine months ended June 30, 2024, UGI Corporation reported the following key financial metrics:
| Metric | 2024 (9 months) | 2023 (9 months) | Change |
|---|---|---|---|
| Net Income (Loss) Attributable to UGI Corporation | $542 million | $(1,633) million | $2,175 million |
| Earnings Per Share (Diluted) | $2.52 | $(7.78) | $10.30 |
| Adjusted Net Income | $693 million | $608 million | $85 million |
| Revenues | $5,968 million | $7,129 million | $(1,161) million |
| Total Margin | $1,016 million | $1,089 million | $(73) million |
| Operating Income | $396 million | $361 million | $35 million |
Segment Performance
UGI Corporation's operations are divided into four main segments, each contributing to the overall financial performance:
Utilities
For the nine months ended June 30, 2024, the Utilities segment reported:
| Metric | 2024 (9 months) | 2023 (9 months) | Change |
|---|---|---|---|
| Revenues | $1,396 million | $1,644 million | $(248) million |
| Total Margin | $792 million | $750 million | $42 million |
| Operating Income | $396 million | $361 million | $35 million |
| Earnings Before Interest and Taxes | $400 million | $367 million | $33 million |
Midstream & Marketing
For the nine months ended June 30, 2024, the Midstream & Marketing segment reported:
| Metric | 2024 (9 months) | 2023 (9 months) | Change |
|---|---|---|---|
| Revenues | $1,130 million | $1,586 million | $(456) million |
| Total Margin | $441 million | $401 million | $40 million |
| Operating Income | $291 million | $249 million | $42 million |
| Earnings Before Interest and Taxes | $298 million | $253 million | $45 million |
UGI International
For the nine months ended June 30, 2024, UGI International reported:
| Metric | 2024 (9 months) | 2023 (9 months) | Change |
|---|---|---|---|
| Revenues | $1,853 million | $2,436 million | $(583) million |
| Total Margin | $795 million | $723 million | $72 million |
| Operating Income | $294 million | $197 million | $97 million |
| Earnings Before Interest and Taxes | $305 million | $216 million | $89 million |
AmeriGas Propane
For the nine months ended June 30, 2024, AmeriGas Propane reported:
| Metric | 2024 (9 months) | 2023 (9 months) | Change |
|---|---|---|---|
| Revenues | $1,869 million | $2,147 million | $(278) million |
| Total Margin | $1,007 million | $1,080 million | $(73) million |
| Operating Income | $182 million | $240 million | $(58) million |
Cash Flows and Financial Condition
UGI Corporation reported net cash provided by operating activities of $1,031 million for the nine months ended June 30, 2024, compared to $857 million in the prior year. The company’s cash flow from investing activities was $(551) million, and cash flow from financing activities was $(350) million during the same period.
Liquidity Position
As of June 30, 2024, UGI Corporation had total available liquidity of approximately $1.9 billion, with cash and cash equivalents totaling $1.1 billion and available borrowing capacity on revolving credit facilities amounting to $800 million.
Market Trends and Economic Factors
UGI Corporation's performance is influenced by various market trends, including commodity prices, weather conditions, and regulatory changes. The average temperatures during the 2024 nine-month period were 12.3% warmer than normal, impacting demand across its segments.
How UGI Corporation (UGI) Makes Money
Business Segments
UGI Corporation operates through four primary segments: Utilities, Midstream & Marketing, AmeriGas Propane, and UGI International. Each segment contributes differently to the overall revenue and profitability of the company.
Utilities Segment
The Utilities segment is focused on the distribution of natural gas and electricity. For the nine months ended June 30, 2024, the Utilities segment generated revenues of $1,396 million, a decrease of 15% compared to $1,644 million in the same period of 2023. The total margin in this segment increased by 6% to $792 million from $750 million in the prior year, primarily due to increases in base rates and distribution system improvement charges.
| Metrics | 2024 (9 months) | 2023 (9 months) | Change |
|---|---|---|---|
| Revenues | $1,396 million | $1,644 million | -15% |
| Total Margin | $792 million | $750 million | +6% |
| Operating Income | $396 million | $361 million | +10% |
Midstream & Marketing Segment
This segment engages in the marketing of natural gas and other energy-related products. For the nine months ended June 30, 2024, revenues in this segment totaled $1,130 million, down 29% from $1,586 million in 2023. However, the total margin increased by 10% to $441 million from $401 million.
| Metrics | 2024 (9 months) | 2023 (9 months) | Change |
|---|---|---|---|
| Revenues | $1,130 million | $1,586 million | -29% |
| Total Margin | $441 million | $401 million | +10% |
| Operating Income | $291 million | $249 million | +17% |
AmeriGas Propane Segment
AmeriGas focuses on propane distribution. For the nine months ended June 30, 2024, revenues were $1,869 million, a decrease of 13% compared to $2,147 million in 2023. The total margin also fell by 7% to $1,007 million from $1,080 million.
| Metrics | 2024 (9 months) | 2023 (9 months) | Change |
|---|---|---|---|
| Revenues | $1,869 million | $2,147 million | -13% |
| Total Margin | $1,007 million | $1,080 million | -7% |
| Operating Income | $182 million | $240 million | -24% |
UGI International Segment
UGI International provides energy solutions outside the United States. For the nine months ended June 30, 2024, revenues were $1,853 million, a decline of 24% from $2,436 million in 2023. The total margin increased by 10% to $795 million from $723 million.
| Metrics | 2024 (9 months) | 2023 (9 months) | Change |
|---|---|---|---|
| Revenues | $1,853 million | $2,436 million | -24% |
| Total Margin | $795 million | $723 million | +10% |
| Operating Income | $294 million | $197 million | +49% |
Financial Performance
For the nine months ended June 30, 2024, UGI Corporation reported a net income of $542 million, equating to $2.52 per diluted share, compared to a net loss of $1,633 million or $7.78 loss per diluted share for the same period in 2023. This significant turnaround was driven by less volatility in commodity prices and improved operational efficiencies across segments.
| Financial Metrics | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Income | $542 million | -$1,633 million |
| Adjusted Net Income | $693 million | $608 million |
| Adjusted Earnings per Share | $3.22 | $2.81 |
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