October 01, 2016 12:42 PM ET

Gas Utilities

Company Overview of UGI Utilities Inc.

Company Overview

UGI Utilities, Inc. operates as a public utility company in Pennsylvania. It owns and operates three natural gas distribution utilities and an electric distribution utility. The company operates in two segments, Gas Utility and Electric Utility. The Gas Utility segment provides natural gas distribution services to approximately 617,000 customers in 46 eastern and central Pennsylvania counties through its distribution system of approximately 12,000 miles of gas mains, as well as approximately 500 customers in portions of one Maryland County. The Electric Utility segment offers regulated electric distribution services to approximately 62,000 customers in Luzerne and Wyoming counties in northea...

2525 North 12th Street

Suite 360

Reading, PA 19605

United States

Founded in 1925

1,520 Employees

Phone:

610-796-3400

Key Executives for UGI Utilities Inc.

Chief Executive Officer, President and Director
Age: 51
Chief Financial Officer and Vice President of Finance
Age: 44
Vice President of Operations
Age: 64
Vice Chairman and President of UGI Corp
Age: 61
Chief Information Officer and Vice President
Compensation as of Fiscal Year 2016.

UGI Utilities Inc. Key Developments

UGI Utilities Inc. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended June 30, 2016; Revised Earnings Guidance for Fiscal Ending September 30, 2016

UGI Utilities Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended June 30, 2016. The group reported total revenue of $1,130.8 million, total operating income of $155.7 million, income before income taxes of $62.2 million, net income attributable to company of $60.7 million or $0.34 per diluted share against total revenue of $1,148.1 million, total operating income of $56.1 million, loss before income taxes of $11.4 million, net income attributable to company of $9.6 million or $0.05 per diluted share a year ago. Adjusted net income attributable to ugi corporation was $40 million or $0.23 per diluted share against $12.4 million or $0.07 per diluted share a year ago. Adjusted net income excludes the impact of unrealized gains and losses on commodity derivative instruments, acquisition and integration expenses for the Finagaz acquisition, and losses from early extinguishments of debt. For the nine months, the group reported total revenue of $4,709.5 million, total operating income of $1,076.6 million, income before income taxes of $867.8 million, net income attributable to company of $408.5 million or $2.33 per diluted share against total revenue of $5,608.3 million, total operating income of $841.5 million, income before income taxes of $655.7 million, net income attributable to company of $290.2 million or $1.65 per diluted share a year ago. Adjusted net income attributable to ugi corporation was $368.6 million or $2.10 per diluted share against $351.9 million or $2 per diluted share a year ago. Capital expenditures were $56.5 million against $43.3 million a year ago. Based on the results of the first nine months of the fiscal year, the company now expects full year adjusted earnings per share to be at the upper end, or slightly above, the guidance range of $1.95 to $2.05 for the fiscal year ending September 30, 2016, assuming normal weather.

UGI Utilities Announces Unaudited Earnings Results for the Second Quarter and Six Months Ended March 31, 2016

UGI Utilities announced unaudited earnings results for the second quarter and six months ended March 31, 2016. For the quarter, net income was $63.2 million compared to $79.6 million, for the prior-year period. For the quarter, the company reported revenues of $322.0 million compared to $500.6 million a year ago. Operating income was $114.5 million against $142.7 million a year ago. Capital expenditures were $48.1 million against $41.3 million a year ago. Income before income taxes was $105.2 million against $132.0 million a year ago. For the six months, the company reported revenues of $520.0 million against $787.9 million a year ago. Operating income was $162.8 million against $218.3 million a year ago. Net income was $86.6 million compared to $118.4 million, for the prior-year period.

UGI Utilities Inc. Enters into Note Purchase Agreement

On April 22, 2016, UGI Utilities Inc. entered into a Note Purchase Agreement with certain persons relating to the private placement of (i) $100 million aggregate principal amount of 2.95% Senior Notes, Series A, due June 30, 2026, (ii) $200 million aggregate principal amount of 4.12% Senior Notes, Series B, due September 30, 2046 and (iii) $100 million aggregate principal amount of 4.12% Senior Notes, Series C, due October 31, 2046. The private placement of the Notes is exempt from registration under the Securities Act of 1933, as amended. Interest payments will be payable semi-annually on the Series A Notes on June 30th and December 30th of each year; on the Series B Notes on March 30th and September 30th of each year; and on the Series C Notes on April 30th and October 31st of each year. The Notes will be unsecured and unsubordinated obligations of the Company, ranking pari passu in all respects with the Company's existing and future unsecured and unsubordinated indebtedness. If any subsidiary guarantees or otherwise becomes liable for the Company's obligations under a primary credit facility, the subsidiary will provide a guaranty of payment of the Notes and compliance with the Note Purchase Agreement. The net proceeds from the sale of the Notes will be used to refinance existing debt and for other general corporate purposes. The pricing of the Notes occurred on March 31, 2016 and funding is expected to occur on June 30, 2016 for the Series A Notes, September 30, 2016 for the Series B Notes, and October 31, 2016 for the Series C Notes. The Note Purchase Agreement includes the usual and customary covenants for note purchase agreements of this type, including, among others, covenants relating to the maintenance of existence, payment of taxes when due, compliance with laws, maintenance of properties in good repair, compliance with the Office of Foreign Assets Control of the United States Department of the Treasury, maintenance of insurance, maintenance of books and records, pari passu ranking, merger and consolidation, line of business, anti-terrorism sanctions, and change in control. The Note Purchase Agreement also contains restrictive and financial covenants, specifying, among other things, that the sale of assets is limited to 15% of consolidated total assets as of the end of any period of twelve consecutive months subject to safe harbors for debt prepayment or property reinvestments and specified exclusions, that indebtedness plus basket liens will not at any time exceed 10% of consolidated total assets, and that the ratio of total debt to total capitalization will not at any time exceed 0.65 to 1.00.

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Recent Private Companies Transactions

Type
Date
Target
Private Placement
March 31, 2016
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