UGI Corporation (NYSE:UGI) Q4 2014 Earnings Conference Call - Final Transcript

Feb 05, 2015 • 09:00 am ET


UGI Corporation (NYSE:UGI) Q4 2014 Earnings Conference Call - Final Transcript


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Good morning, my name is Tiffany. And I'll be your conference operator today. At this time, I would like to welcome everyone to the UGI AmeriGas First Quarter 2015 Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. (Operator Instructions). Thank you. Daniel Platt, Treasurer of UGI. You may begin your conference.

Daniel Platt

Thank you, Tiffany. Good morning and thank you for joining us. As we begin, let me remind you that our comments today will include certain forward-looking statements, which management of UGI and AmeriGas believe 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 our Annual Reports on Form 10-K for a more extensive list of factors that could affect results.

But among them are adverse weather conditions, cost volatility and availability of our energy products, increased customer conservation measures, the impact of pending and future legal proceedings, domestic and international political, regulatory and economic conditions, currency exchange rate fluctuations, the timing of development of Marcellus Shale gas production, the timing and success of our commercial initiatives and investments to grow our business, and our ability to successfully integrate acquired businesses and achieve anticipated synergies.UGI and AmeriGas undertake no obligation to release revisions to the forward-looking statements to reflect events or circumstances occurring after today.

In addition, our remarks will reference certain non-GAAP financial measures that management believes provide useful information to investors to more effectively evaluate the year-over-year results of operations of the company. These, non-GAAP financial measures are not comparable to measures used by other companies and should be considered in conjunction with performance measures such as cash flow from operating activities.With me today are Hugh Gallagher, CFO of AmeriGas Propane, Kirk Oliver, CFO of UGI Corporation, Jerry Sheridan, President and CEO of AmeriGas Propane and your host President and CEO of UGI Corporation John Walsh. John?

John Walsh

Thanks Dan. Good morning and welcome to our call. I trust that you've all had a chance to review our press releases reporting first quarter results for UGI and AmeriGas.It was a busy quarter for us and while weather was less favorable than Q1 of fiscal '14, we saw strong underlying demand in many of the markets that we serve. I'll comment on our key activities and market developments in the first quarter then turn it over to Kirk who will provide you with a detailed overview of UGI's financial performance. Jerry will review Q1 for AmeriGas and I'll wrap up with an update on our strategic initiatives.Our Q1 adjusted EPS was $0.66, compared to $0.71 for the first quarter of FY14. Due to the significant declines in commodity values over the past six months, we booked mark-to-market adjustments on unsettled hedges of $0.47 in the quarter. The largest adjustments were in AmeriGas and Midstream & Marketing.Our adjusted EPS reflected