UGI Corp (UGI) 2024 Q2 法說會逐字稿

Good day, and thank you for standing by. Welcome to the UGI Corporation Q2 2024 Earnings Conference Call.(Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，感謝您的支持。歡迎參加 UGI Corporation 2024 年第二季財報電話會議。

I would now like to hand the conference over to your first speaker today, Tameka Morris, Senior Director of Investor Relations. Please go ahead.

現在我想將會議交給今天的第一位發言人，投資者關係高級總監 Tameka Morris。請繼續。

Good morning, everyone. Thank you for joining our fiscal 2024 second quarter earnings call. With me today are Mario Longhi, Interim President and CEO; Sean O'Brien, CFO; and Bob Beard, COO.

大家，早安。感謝您參加我們的 2024 財年第二季財報電話會議。今天和我在一起的有臨時總裁兼執行長 Mario Longhi；肖恩‧奧布萊恩，財務長；和首席營運長鮑勃·比爾德 (Bob Beard)。

On today's call, we will provide a strategic update on the business and discuss our financial results for the quarter before concluding with a question-and-answer session.

在今天的電話會議上，我們將提供業務的策略更新，並討論本季的財務業績，然後以問答環節結束。

Before we begin, let me remind you that our comments today include certain forward-looking statements, which 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. Please read our earnings release and our most recent annual report for an extensive list of factors that could affect results. We assume no duty to update or revise forward-looking statements to reflect events or circumstances that are different from expectations.

在開始之前，請允許我提醒您，我們今天的評論包括某些前瞻性陳述，管理層認為這些陳述僅截至今天才合理。由於難以預測的風險和不確定性，實際結果可能會大不相同。請閱讀我們的收益報告和最新的年度報告，以了解可能影響結果的廣泛因素。我們不承擔更新或修改前瞻性陳述以反映與預期不同的事件或情況的責任。

We will also describe our business using certain non-GAAP financial measures. Reconciliations of these measures to the comparable GAAP measures are available within our presentation.

我們也將使用某些非公認會計準則財務指標來描述我們的業務。我們的簡報中提供了這些衡量標準與可比較的公認會計準則衡量標準的對帳。

Now I'm pleased to turn the call over to Mario.

現在我很高興將電話轉給馬裡奧。

Thank you, Tameka, and good morning, everyone. I'd like to begin by commenting on UGI's second quarter and year-to-date financial results before providing a broader strategic update.

謝謝你，Tameka，大家早安。我想先評論 UGI 第二季度和今年迄今為止的財務業績，然後再提供更廣泛的策略更新。

UGI had a strong fiscal 2024 second quarter, reporting adjusted earnings per share of $1.97, which was a $0.29 increase over the prior year. This performance reflects the resilience of our portfolio and the dedication of our people, and was largely driven by the natural gas businesses. These natural gas businesses delivered record second quarter earnings, a 32% increase in adjusted net income over the prior year.

UGI 2024 財年第二季業績強勁，調整後每股收益為 1.97 美元，比上年增長 0.29 美元。這項績效反映了我們投資組合的彈性和員工的奉獻精神，並且很大程度上是由天然氣業務推動的。這些天然氣業務第二季獲利創歷史新高，調整後淨利比上年成長 32%。

We also implemented effective cost control across the enterprise, and this resulted in a $27 million year-over-year reduction in operating and administrative expenses. With a robust performance in the first half of the fiscal year, we are on track to deliver within our fiscal 2024 adjusted EPS guidance range of $2.70 to $3. We are also pleased to mark the 140th year of consecutively paying dividends, demonstrating our commitment to returning value to shareholders.

我們還在整個企業內實施了有效的成本控制，這使得營運和管理費用比去年同期減少了 2,700 萬美元。憑藉本財年上半年的強勁業績，我們預計在 2024 財年調整後每股收益指引範圍內實現 2.70 美元至 3 美元的目標。我們也很高興迎來連續股利 140 週年，這反映了我們對股東回報價值的承諾。

Sean will provide further commentary on the financial performance shortly, but now I will pivot to the broader strategic update. As we announced yesterday, we completed the strategic review of the LPG businesses, primarily focused on AmeriGas that was launched at the end of August 2023. The process was extensive, and together with our financial advisers, we considered different scenarios, including a potential sale, spin and joint venture of AmeriGas. Although we conducted a due diligence process with multiple strategic and financial parties, the Board decided that in the current market, the company should focus on a restructuring and operational improvement plan for AmeriGas. The Board remains open to all opportunities to maximize shareholder value.

肖恩將很快對財務業績發表進一步評論，但現在我將轉向更廣泛的策略更新。正如我們昨天宣布的，我們完成了對液化石油氣業務的策略審查，主要關注於2023 年8 月底推出的AmeriGas。出售、AmeriGas 的分拆和合資企業。儘管我們與多個策略和財務方進行了盡職調查，但董事會決定在當前市場上，公司應專注於 AmeriGas 的重組和營運改進計劃。董事會對所有實現股東價值最大化的機會持開放態度。

Also, in conjunction with the review, over the past few months, we have reassessed our operating strategy, evaluated whether there are opportunities to change the way we work to achieve greater operational efficiencies and scrutinize how we allocate and prioritize capital. This assessment was based on our objective to create sustainable shareholder value by improving the earnings quality of our businesses to enable reliable earnings growth, strength in the balance sheet and prudently allocate capital.

此外，在過去幾個月的審查中，我們重新評估了我們的營運策略，評估是否有機會改變我們的工作方式以實現更高的營運效率，並審查我們如何分配和優先考慮資本。這項評估基於我們的目標，即透過提高業務獲利品質來創造可持續的股東價值，以實現可靠的獲利成長、資產負債表的實力和審慎的資本配置。

As we move forward, we firmly believe that disciplined execution of our repositioned strategy will accomplish these objectives. We must operate as a high-performing, customer-centered and results-driven organization, where we capitalize on our market-leading positions, optimize our strategically located assets and sustainably grow earnings through strong execution, effective cost control and disciplined capital deployment.

隨著我們的前進，我們堅信，嚴格執行我們重新定位的策略將實現這些目標。我們必須作為一個高績效、以客戶為中心、以結果為導向的組織來運營，充分利用我們的市場領先地位，優化我們的戰略性資產，並透過強有力的執行力、有效的成本控制和嚴格的資本部署來可持續地增長收益。

It is clear to us that we have an attractive business portfolio: our growth-oriented regulated utilities business, operating constructive regulatory environments and have a long runway of investment opportunities that provide top-tier return on equity. Our Midstream & Marketing business holds LNG peaking facilities, natural gas and propane storage, gathering systems and pipeline assets that enable the business to sustain earnings growth, as evidenced in the second quarter results. While these natural gas businesses continue to deliver strong results, we are committed to further optimizing their performance, holding the businesses to higher levels of operational excellence.

我們很清楚，我們擁有有吸引力的業務組合：我們以成長為導向的受監管公用事業業務，經營建設性的監管環境，並擁有長期的投資機會，可提供頂級的股本回報率。我們的中游和行銷業務擁有液化天然氣調峰設施、天然氣和丙烷儲存、收集系統和管道資產，使業務能夠維持獲利成長，正如第二季業績所證明的那樣。在這些天然氣業務持續強勁業績的同時，我們致力於進一步優化其業績，使業務達到更高水準的卓越營運。

Turning to the global LPG business. At UGI International, we have market-leading positions and strong brand loyalty in select markets, which supports our ability to achieve strong margins and attractive free cash flow generation. Similarly, in the U.S., AmeriGas has a market-leading position in retail propane distribution in a highly competitive market. We must run that business differently and better to realize the benefits of that position. And so shortly, Bob will walk you through the basic approach to accomplish that objective.

轉向全球液化石油氣業務。在 UGI International，我們在特定市場擁有市場領先地位和強大的品牌忠誠度，這支持我們實現強勁利潤和產生有吸引力的自由現金流的能力。同樣，在美國，AmeriGas 在競爭激烈的市場中在零售丙烷分銷方面擁有市場領先地位。我們必須以不同的方式更好地經營該業務，以實現該職位的好處。很快，鮑伯將引導您完成實現該目標的基本方法。

Moving forward, we will pursue opportunities to streamline our global LPG footprint and create more operational efficiencies. And specifically at AmeriGas, we will share an overview of our plan to turn around that business with the intent to achieve stability and growth. Ultimately, through organic growth and continued investment, we intend to further shift the portfolio to become more predominantly the natural gas business in the future.

展望未來，我們將尋求機會精簡我們的全球液化石油氣足跡並提高營運效率。特別是在 AmeriGas，我們將概述我們扭轉該業務的計劃，以實現穩定和成長。最終，透過有機成長和持續投資，我們打算進一步轉變投資組合，在未來更加以天然氣業務為主。

And now that takes me to 4 strategic actions culminating from the review, and these strategic actions are: one, to pursue opportunities to enhance our portfolio and drive reliable earnings growth; two, stabilize and optimize AmeriGas; three, achieve operational efficiencies; and four, strengthen the balance sheet.

現在，我從審查中得出了 4 項策略行動，這些策略行動是：第一，尋求機會來增強我們的投資組合併推動可靠的獲利成長；二、穩定並優化AmeriGas；三、實現營運效率；四是強化資產負債表。

Looking at our footprint. We operate in 18 countries in the U.S. and Europe as well as across several customer segments. Within the portfolio, particularly in the LPG businesses, we will continue to explore options for the underperforming and less strategic areas or customer segments. As an example, in April, we entered into an agreement to divest of our LPG businesses in Switzerland, which service approximately 3,800 customers, and we anticipate receiving net cash proceeds of approximately $27 million.

看著我們的足跡。我們的業務遍及美國和歐洲的 18 個國家以及多個客戶群。在投資組合中，特別是在液化石油氣業務中，我們將繼續探索針對錶現不佳和策略性較低的領域或客戶群的選擇。例如，4 月份，我們簽訂了剝離瑞士液化石油氣業務的協議，該業務為約 3,800 名客戶提供服務，我們預計將獲得約 2,700 萬美元的淨現金收益。

Next, over the past few months, we have shared our intention to permanently reduce costs and strengthen the balance sheet. We have made clear progress in both areas, as evidenced by a $16 million decline in our year-to-date operating expenses as well as various financing and debt reduction actions taken in the past year. Those efforts will continue, and the team will provide further insight shortly.

接下來，在過去的幾個月裡，我們表達了永久降低成本和強化資產負債表的意圖。我們在這兩個領域都取得了明顯的進展，今年迄今的營運費用減少了 1,600 萬美元，以及去年採取的各種融資和債務削減行動就證明了這一點。這些努力將繼續下去，團隊很快就會提供進一步的見解。

I will now hand the call to Bob, who was integrally involved in this strategic review. He will take the lead in implementing the action plan to stabilize and optimize AmeriGas.

我現在將電話轉給鮑勃，他全面參與了本次策略審查。他將主導AmeriGas穩定優化行動計畫。

Thanks, Mario, and good morning, everyone. As you are aware, AmeriGas has encountered operational challenges over the past several years that have impacted our service standards, resulted in higher customer attrition rates and placed significant pressure on our debt covenants. The strategic review helped us better frame the weaknesses in our operating model. While these challenges are not new and you've heard us discuss several of them over time, the strategic review identified a level of detail that was necessary for us to formulate a more comprehensive and effective action plan to address those shortcomings. We gained more clarity on what needs to be done, and we're committed to doing it.

謝謝，馬裡奧，大家早安。如您所知，AmeriGas 在過去幾年中遇到了營運挑戰，這些挑戰影響了我們的服務標準，導致客戶流失率更高，並對我們的債務契約造成了巨大壓力。策略審查幫助我們更能找出營運模式中的弱點。雖然這些挑戰並不新鮮，而且您已經聽到我們隨著時間的推移討論了其中的一些挑戰，但策略審查確定了我們制定更全面、更有效的行動計劃來解決這些缺點所必需的詳細程度。我們更加清楚需要做什麼，並且我們致力於這樣做。

Our overall focus will be on improving our performance in customer satisfaction, service reliability and overall operational excellence. We are committed to addressing these challenges. To initiate this journey, we have streamlined our operational model, creating a simpler and more focused model that enables us to anticipate and more effectively address the evolving needs of our customers. While there are many key indicators associated with measuring these continued operational improvements, the ultimate measure of our success will be the financial results of the business.

我們的整體重點將是提高客戶滿意度、服務可靠性和整體卓越營運的表現。我們致力於應對這些挑戰。為了開啟這段旅程，我們簡化了營運模式，創造了一個更簡單、更專注的模式，使我們能夠預測並更有效地滿足客戶不斷變化的需求。雖然有許多與衡量這些持續營運改善相關的關鍵指標，但衡量我們成功的最終標準將是業務的財務表現。

To support this overarching goal, we're actively pursuing efficiency measures to ensure that our cost structure remains aligned with the earnings trajectory of the business. In line with this objective, we have initiated permanent cost reduction measures that do not compromise our operational capabilities. A number of these actions were completed in late April 2024.

為了支持這一總體目標，我們正在積極採取效率措施，以確保我們的成本結構與業務的獲利軌跡保持一致。為了實現這一目標，我們啟動了永久性的成本削減措施，但這些措施不會損害我們的營運能力。其中一些行動已於 2024 年 4 月下旬完成。

Next, as Mario shared, we remain open to opportunities to streamline our footprint and focus on core customer segments. Also of importance, we are working to adjust our capital structure and address AmeriGas' balance sheet, which is currently constrained. Sean will speak to the progress we've made and additional actions that will be taken in the near term.

接下來，正如馬裡奧分享的那樣，我們仍然對精簡我們的足跡並專注於核心客戶群的機會持開放態度。同樣重要的是，我們正在努力調整我們的資本結構並解決 AmeriGas 目前受到限制的資產負債表問題。肖恩將談到我們所取得的進展以及近期將採取的其他行動。

Overall, with diligent execution of our new operating strategy and a renewed commitment to our values, we anticipate that AmeriGas will begin to see stability in its operating performance and resume being a cash contributor to UGI by fiscal 2026.

總體而言，透過努力執行我們的新營運策略以及對我們價值觀的重新承諾，我們預計 AmeriGas 將開始看到其營運績效的穩定性，並在 2026 財年恢復成為 UGI 的現金捐贈者。

And now I'll hand the call over to Sean.

現在我將把電話轉給肖恩。

Thanks, Bob, and good morning. First, I will provide my comments on the performance for the quarter before turning to the midterm outlook for UGI. As Mario mentioned, for the fiscal 2024 second quarter, UGI delivered adjusted diluted EPS of $1.97 in comparison to $1.68 in the prior year period. The utility segment was up $0.06, largely due to higher gas rates in both Pennsylvania and West Virginia as well as higher electric rates that were implemented during the fiscal year.

謝謝，鮑勃，早安。首先，我將在轉向 UGI 的中期前景之前對本季的業績發表評論。正如 Mario 所提到的，2024 財年第二季度，UGI 調整後稀釋後每股收益為 1.97 美元，而去年同期為 1.68 美元。公用事業板塊上漲了 0.06 美元，主要是由於賓州和西維吉尼亞州的天然氣價格上漲以及本財年實施的電費上漲。

Midstream & Marketing was up $0.25, as the business realized higher margins from natural gas marketing activities and the effect of investment tax credits on completed RNG projects. UGI International was down $0.01 from lower earnings attributable to the noncore energy marketing business, and this was partially offset by higher LPG unit margins and lower operating and administrative expenses. AmeriGas was down $0.17, predominantly due to higher income taxes resulting from limitations on interest deductibility.

中游和行銷上漲 0.25 美元，因為該業務從天然氣行銷活動中實現了更高的利潤，以及投資稅收抵免對已完成的 RNG 項目的影響。 UGI International 因非核心能源行銷業務而導致收益下降，股價下跌 0.01 美元，但液化石油氣單位利潤率上升以及營運和管理費用下降部分抵消了這一影響。 AmeriGas 下跌 0.17 美元，主要是由於利息扣除限制導致所得稅增加。

Lastly, Corporate & Other was up $0.16, where tax benefits were realized, offsetting the effects of the tax headwind faced at AmeriGas. While there was variability in the segment-level tax expense, UGI's annual effective tax rate is expected to be slightly lower than prior year.

最後，企業及其他業務上漲 0.16 美元，實現了稅收優惠，抵消了 AmeriGas 面臨的稅收逆風的影響。儘管部門層級的稅收支出存在變化，但 UGI 的年度有效稅率預計將略低於去年。

Turning to the next slide. I now will walk you through the key drivers for each reportable segment when compared to the prior year. At the utility segment, EBIT was $226 million for the fiscal second quarter, up $21 million over the prior year period. We saw a modest increase in core market volumes with weather for the quarter being 5% colder than the prior year. Utilities realized an increase of $25 million in total margins due to higher gas and electric base rates, incremental benefits from the DISC program as well as continued customer growth. The business continues to expand its customer base and added more than 3,000 new residential heating and commercial customers during the quarter.

轉到下一張投影片。現在，我將向您介紹與前一年相比每個可報告細分市場的關鍵驅動因素。在公用事業領域，第二財季的息稅前利潤為 2.26 億美元，比去年同期增加 2,100 萬美元。我們看到核心市場成交量小幅成長，本季天氣比去年同期冷 5%。由於天然氣和電力基本費率的提高、DISC 計劃帶來的增量收益以及客戶的持續成長，公用事業公司的總利潤增加了 2,500 萬美元。該業務持續擴大客戶群，本季新增 3,000 多個住宅暖氣和商業客戶。

Operating and administrative expenses were comparable with the prior year, as lower uncollectible account expense and contract labor costs were largely offset by higher employee benefit expense. There was also increased depreciation and amortization expense with the continued investment in the distribution system. On a year-to-date basis, we invested roughly $170 million at the regulated utilities, primarily in replacing aging infrastructure.

營運和管理費用與上一年相當，因為壞帳費用和合約人工成本的減少在很大程度上被員工福利費用的增加所抵消。隨著對分銷系統的持續投資，折舊和攤銷費用也有所增加。今年迄今為止，我們向受監管的公用事業公司投資了約 1.7 億美元，主要用於更換老化的基礎設施。

Next, Midstream & Marketing reported EBIT of $153 million, a $48 million increase over the prior year. Total margin was up $41 million on higher margins from natural gas marketing activities, including the effects of peaking and capacity management margins. Operating and administrative expenses were down $6 million due to lower salary and benefits as well as maintenance expenses.

接下來，Midstream & Marketing 報告息稅前利潤為 1.53 億美元，比前一年增加 4,800 萬美元。由於天然氣行銷活動帶來更高的利潤，包括尖峰和容量管理利潤的影響，總利潤增加了 4,100 萬美元。由於工資和福利以及維護費用減少，營運和管理費用減少了 600 萬美元。

At UGI International, EBIT was $131 million, up $3 million on a year-over-year basis. LPG volumes were comparable to the prior year, as the effect of warmer weather was offset by natural gas to LPG conversions and higher auto gas volumes sold. Total margin was down $10 million, driven by lower margin as we exit the noncore energy marketing business. This was partially offset by higher LPG unit margins and the translation effect of stronger foreign currencies, amounting to approximately $5 million.

UGI International 的息稅前利潤為 1.31 億美元，年增 300 萬美元。液化石油氣銷量與去年相當，因為天氣變暖的影響被天然氣轉化為液化石油氣和汽車燃氣銷售增加所抵消。由於我們退出非核心能源行銷業務，利潤率下降，導致總利潤率下降了 1000 萬美元。這被較高的液化石油氣單位利潤和外幣走強的換算影響部分抵消，金額約為 500 萬美元。

Operating and administrative expenses were down $16 million due to lower personnel and maintenance costs, partially offset by the translation effects of the stronger foreign currencies.

由於人員和維護成本降低，營運和管理費用減少了 1,600 萬美元，但部分被強勢外幣的換算影響所抵消。

Lastly at AmeriGas. EBIT was comparable with prior year, as reductions in total margin were offset by reduced operating and administrative expenses. For the quarter, we saw warmer weather which, when coupled with customer loss, led to a 6% reduction in retail volumes over the prior year. There was a modest increase in cylinder exchange volumes and a slight reduction in national accounts with lower usage in the railroad customer segment.

最後是AmeriGas。息稅前利潤與去年持平，因為總利潤率的下降被營運和管理費用的減少所抵消。本季，天氣變暖，再加上客戶流失，導致零售量比前一年減少 6%。鋼瓶交換量略有增加，國民帳略有減少，鐵路客戶群的使用量較低。

The effects of lower volumes were partially offset by higher LPG unit markets, leading to a $4 million reduction in total margin when compared to the prior year. Operating and administrative expenses were down $5 million, reflecting among other things, lower compensation and advertising expenses, partially offset by higher vehicle expenses.

液化石油氣單位市場的成長部分抵消了銷售下降的影響，導致總利潤率比前一年減少了 400 萬美元。營運和管理費用減少了 500 萬美元，主要反映了薪資和廣告費用的減少，但部分被車輛費用的增加所抵消。

Moving to liquidity. At the end of the quarter, UGI had available liquidity of $1.7 billion, inclusive of cash and cash equivalents and available borrowing capacity on our revolving credit facilities. During the quarter, we executed $38 million of open market bond repurchases at AmeriGas, and the business ended the period with approximately $100 million of cash on hand. Since the beginning of fiscal 2023, we have reduced absolute debt at AmeriGas by approximately $340 million, executing on our objective to strengthen and provide more buffer on the credit metrics.

轉向流動性。截至本季末，UGI 的可用流動資金為 17 億美元，包括現金和現金等價物以及我們循環信貸額度的可用借貸能力。本季度，我們在 AmeriGas 執行了 3,800 萬美元的公開市場債券回購，該業務在本季末手頭現金約為 1 億美元。自 2023 財年開始以來，我們已將 AmeriGas 的絕對債務減少了約 3.4 億美元，以實現我們加強信貸指標並提供更多緩衝的目標。

During the back half of fiscal 2024, our goal is to reduce debt by another $350 million to $450 million, using both free cash flow generated from AmeriGas and between $200 million to $300 million of parental contribution. As Bob mentioned, he is spearheading the action to stabilize and optimize AmeriGas. To support those actions, we will pursue options to address the revolver that, while undrawn, has restricted debt covenants. This will enable the business to work through the planned operational improvements without quarterly covenant compliance pressures.

在 2024 財年下半年，我們的目標是利用 AmeriGas 產生的自由現金流和 2 億至 3 億美元的母公司捐款，再減少 3.5 億至 4.5 億美元的債務。正如鮑勃所提到的，他正在帶頭採取穩定和優化 AmeriGas 的行動。為了支持這些行動，我們將尋求解決左輪手槍問題的方案，雖然尚未動用，但它限制了債務契約。這將使企業能夠完成計劃的營運改進，而無需面臨季度契約合規壓力。

As I pivot to our outlook, let me briefly remind you of our core financial objectives that Mario shared at the onset. Our objectives are to improve the earnings quality of our business and deliver reliable earnings growth, strengthen the balance sheet and be disciplined in how we allocate capital, which will facilitate sustainable shareholder value creation.

當我轉向我們的前景時，讓我簡要提醒您馬裡奧一開始分享的我們的核心財務目標。我們的目標是提高業務獲利質量，實現可靠的獲利成長，強化資產負債表，嚴格控制資本分配方式，從而促進可持續的股東價值創造。

Starting with our fiscal 2024 guidance. For the fiscal year-to-date, UGI has delivered $3.16 of adjusted EPS, led by increased margins from natural gas marketing activities in the U.S., higher base rates at the regulated utilities, increased LPG volumes and unit margins at UGI International and lower operating and administrative expenses across the enterprise. These benefits were partially offset by the effects of warmer weather in the LPG businesses and reduced total margins at AmeriGas Propane.

從我們的 2024 財年指導開始。本財年迄今，UGI 調整後每股收益為3.16 美元，主要是由於美國天然氣行銷活動的利潤增加、受監管公用事業公司的基本費率提高、UGI International 的液化石油氣銷量和單位利潤增加以及運營利潤率下降以及整個企業的管理費用。這些收益被液化石油氣業務溫暖天氣的影響以及 AmeriGas Propane 總利潤率下降所部分抵消。

We are pleased with the strong start to the year. Based on the cyclical nature of the business and our earnings projection for the back half of the year, we are holding our fiscal 2024 adjusted EPS guidance range of $2.70 to $3.

我們對今年的強勁開局感到高興。根據業務的周期性性質和我們對今年下半年的獲利預測，我們將 2024 財年調整後每股收益指引範圍維持在 2.70 美元至 3 美元之間。

Now this slide summarizes several financial targets between fiscal 2024 and to 2027. Over that period, we are targeting a 4% to 6% EPS growth rate. Fiscal 2025 and 2026 will be rebuilding years, where we continue to execute the strategy that was previously outlined. We anticipate investing capital of approximately $3.9 billion across UGI during that period. A primary driver of the targeted EPS growth is our planned investment of approximately $2.6 billion at the regulated utilities, which will facilitate 9%-plus rate base growth as well as organic growth throughout the remaining portfolio.

現在這張投影片總結了 2024 財年至 2027 財年的幾個財務目標。 2025 財年和 2026 財年將是重建年，我們將繼續執行先前概述的策略。我們預計在此期間 UGI 的投資資本約為 39 億美元。目標 EPS 成長的主要驅動力是我們計劃對受監管公用事業投資約 26 億美元，這將促進 9% 以上的基礎成長率以及整個剩餘投資組合的有機成長。

As I'll address shortly, the outlook does not include incremental debt, and we anticipate that UGI will achieve its targeted leverage ratio during the plan period. As we shared previously, our team is focused on increasing efficiencies and lowering our operating costs. We are on track to deliver the targeted permanent cost savings of $70 million to $100 million by the end of fiscal 2025, using fiscal 2023 as the base year. We have line of sight into the labor and nonlabor actions required to achieve these targets, and we've already executed on actions that are intended to deliver those savings projected for fiscal 2024. On a fiscal year-to-date basis, these measures have already contributed to the $16 million reduction in total OpEx when compared to the prior year.

正如我稍後將談到的，前景不包括增量債務，我們預計 UGI 將在計劃期間實現其目標槓桿率。正如我們之前分享的，我們的團隊專注於提高效率和降低營運成本。我們預計以 2023 財年為基準年，在 2025 財年末實現永久成本節省 7,000 萬至 1 億美元的目標。我們專注於實現這些目標所需的勞工和非勞工行動，並且我們已經執行了旨在實現 2024 財年預計節省的行動。減少1600 萬美元。

Turning to capital allocation. We will continue to apply a disciplined framework, where we prioritize returns to shareholders, actions that will strengthen the balance sheet and improve financial flexibility and invest in areas with the highest potential returns to our shareholders, which will also benefit our customers.

轉向資本配置。我們將繼續採用嚴格的框架，優先考慮股東回報，採取行動加強資產負債表，提高財務靈活性，並投資於為股東帶來最高潛在回報的領域，這也將使我們的客戶受益。

On the next 2 slides, I'll comment on our outlook through to fiscal 2027, as we adhere to this framework. UGI has a long track record of paying dividends. As we balance our priorities over the next 2 years, we remain committed to preserving that history. Between fiscal 2024 and 2026, as we focus on strengthening the balance sheet and stabilizing AmeriGas, we expect that dividends will stay flat while still achieving a payout ratio close to 50%. Now as we move to fiscal 2027, we anticipate returning to our targeted 4% dividend growth rate over the long term.

在接下來的兩張幻燈片中，我將評論我們對 2027 財年的展望，因為我們堅持這個框架。 UGI 擁有長期支付股息的記錄。當我們平衡未來兩年的優先事項時，我們仍然致力於保存這段歷史。 2024 財年至 2026 財年，由於我們專注於加強資產負債表和穩定 AmeriGas，我們預計股息將保持不變，同時仍實現接近 50% 的派息率。現在，隨著我們進入 2027 財年，我們預計長期股息成長率將恢復到 4% 的目標。

Slide 21 walks you through our targeted cash deployment plan for fiscal 2024 through to '27, which aligns with the priorities that we shared previously. The plan will be fully funded by cash flow from operations, as we do not anticipate any additional equity needs while reducing absolute debt for UGI. In addition, of the roughly $3.9 billion in capital expenditures, approximately 85% will be invested in our natural gas businesses, predominantly in our regulated utilities, where we have ample opportunities to deploy growth capital.

投影片 21 將引導您了解我們從 2024 財年到 27 財年的目標現金部署計劃，該計劃與我們先前分享的優先事項一致。該計劃將完全由營運現金流提供資金，因為我們預計在減少 UGI 絕對債務的同時不會有任何額外的股權需求。此外，在約 39 億美元的資本支出中，約 85% 將投資於我們的天然氣業務，主要是我們受監管的公用事業公司，我們有充足的機會部署成長資本。

And with that, I'll hand the call back over to Mario.

然後，我會將電話轉回給馬裡奧。

Thanks, Sean. As I close, I want to emphasize our conviction that diligent execution of the fundamentals will enable UGI to build a strong momentum of balanced growth and value creation. We have embarked on that journey and are taking the necessary actions to achieve the financial commitments that we have outlined. We have the financial capacity to maintain investments in the natural gas businesses, particularly in the regulated utilities, which are expected to deliver 9% plus in rate base growth. .

謝謝，肖恩。在結束語中，我想強調我們的信念，即勤勉地執行基本原則將使 UGI 建立平衡成長和價值創造的強勁勢頭。我們已經踏上這趟旅程，並正在採取必要的行動來實現我們概述的財務承諾。我們有財務能力維持對天然氣業務的投資，特別是對受監管公用事業的投資，預計這些業務將帶來 9% 以上的利率基礎成長。 。

These businesses provide strong return and benefit from the free cash flow-generating LPG businesses. With this model, between fiscal 2024 and 2027, we will target a 4% to 6% EPS growth rate and leverage ratio between 3.5 to 4x. We will also preserve our commitment to the dividend, which has been synonymous with our brand over the past 140 years, keeping the amount flat through fiscal 2026. Our intent is to return to a long-term dividend growth rate of 4% in fiscal 2027.

這些業務提供了豐厚的回報，並從產生自由現金流的液化石油氣業務中受益。透過這個模型，在2024年至2027財年期間，我們的目標是每股盈餘成長率為4%至6%，槓桿率為3.5至4倍。我們也將保持對股息的承諾，在過去 140 年裡，股息一直是我們品牌的代名詞，到 2026 財年保持股息金額不變。 。

I thank you for your continued interest and support of UGI. And I'll now turn the call back to our operator to open the line for questions.

感謝您對 UGI 的持續關注與支持。現在我將把電話轉回給我們的接線生以開通提問線路。

(Operator Instructions)

（操作員說明）

Our first question comes from the line of Christopher Jeffrey of Mizuho Securities.

我們的第一個問題來自瑞穗證券的克里斯多福·傑弗裡。

Maybe just starting with the around $400 million of debt reduction at AmeriGas. Just kind of curious what the approach will be to accomplishing that. How much is involved with internally generated cash flows at AmeriGas versus doing something more external intervention?

也許這只是從 AmeriGas 約 4 億美元的債務削減開始。只是有點好奇實現這目標的方法是什麼。與進行更多外部介入相比，AmeriGas 內部產生的現金流量有多少？

This is Sean. I can hit that. Maybe I'll take you back historically. We took about $300 million out last year. AmeriGas contributed somewhere around $20 million, $30 million of that last year. As we look at this year, first and foremost, we were able to take almost $40 million out through the OMR repurchases that we did in Q3. That was all with AmeriGas cash. So that $40 million came from AmeriGas.

這是肖恩。我可以打那個。也許我會帶你回到歷史。去年我們拿出了大約 3 億美元。 AmeriGas 貢獻了約 2000 萬美元，去年為 3000 萬美元。就我們今年而言，首先也是最重要的是，我們透過第三季的 OMR 回購籌集了近 4,000 萬美元。這一切都是用 AmeriGas 現金完成的。因此，這 4000 萬美元來自 AmeriGas。

As we look to the back half of the year and our goal to continue to improve the balance sheet, we see AmeriGas cash providing maybe another $150 million of debt reduction, and then another maybe $200 million to $300 million from Corp. And that should get you to that total that we're looking for.

當我們展望今年下半年以及我們繼續改善資產負債表的目標時，我們看到 AmeriGas 現金可能會再提供 1.5 億美元的債務削減，然後公司可能會再提供 2 億至 3 億美元的資金。了我們正在尋找的總數。

One thing to keep in mind, as we achieve all this, we'll have taken over $700 million of AmeriGas debt off the balance sheet. So we're pretty proud of that. But directly to answer your question, you're looking at about $200 million coming from AmeriGas cash and another $200 million or so coming from a corporate injection.

需要記住的一件事是，當我們實現這一切時，我們將從資產負債表中扣除超過 7 億美元的 AmeriGas 債務。所以我們對此感到非常自豪。但直接回答你的問題，你會看到大約 2 億美元來自 AmeriGas 現金，另外 2 億美元左右來自公司注入。

Got it. And maybe just to clarify that, coming from the Corp., is that just cash on hand? Or would that be involved with the asset sales that you've mentioned? Or...

知道了。也許只是為了澄清，來自公司的這只是手邊的現金嗎？或者說這是否與您提到的資產出售有關？或者...

Yes, all of the above. So we're also optimizing the structure. Obviously, that cash can be more optimally raised or utilized from corporate fungibility. But we also -- as Mario mentioned, we had a $27 million asset sale. I think if you listen to the remarks that Mario made, we're continuing to look at the portfolio and opportunities to generate cash through some potential asset sales. So all of the above. And the good news is we've already executed on almost $30 million of an asset sale that will contribute to that cash coming down.

是的，以上都是。所以我們也在優化結構。顯然，透過企業的可替代性可以更有效地籌集或利用現金。但正如馬裡奧提到的，我們也出售了 2700 萬美元的資產。我認為，如果你聽過馬裡奧的言論，我們將繼續關注投資組合和透過一些潛在資產出售產生現金的機會。所以以上都是。好消息是我們已經執行了近 3000 萬美元的資產出售，這將有助於現金的減少。

Got it. Great. And then maybe just last one on this as far as options to kind of adjust fee revolver at AmeriGas, as you mentioned. Any early insights into that?

知道了。偉大的。正如您所提到的，也許只是最後一個關於 AmeriGas 調整費用左輪手槍的選項。對此有什麼早期見解嗎？

Yes. I think a couple of things. You heard Bob and Mario lay out a plan to get to stabilize and optimize AmeriGas. We want to be able to buy some time. So we are looking pretty heavily at removing but replacing the revolver with another instrument that does not have a quarterly covenant that puts us under that quarterly pressure. It gives us some time as we work through this turnaround and gives us time to basically execute on the things we want to without having that quarterly pressure on AmeriGas and probably more importantly, on corporate as well. So we have started down that path. We have some strategies that we've been working on for a little while. And we'll keep you abreast, but I'm hopeful that we could be successful.

是的。我認為有幾件事。您聽說鮑勃和馬裡奧制定了一項穩定和優化 AmeriGas 的計劃。我們希望能夠爭取一些時間。因此，我們正在大力考慮移除左輪手槍，並將其替換為另一種沒有季度契約的樂器，這使我們面臨季度壓力。它給了我們一些時間來完成這次轉變，讓我們有時間基本上執行我們想要做的事情，而不會給 AmeriGas 帶來季度壓力，更重要的是，也不會給公司帶來壓力。所以我們已經開始沿著這條路走下去了。我們已經制定了一些策略一段時間了。我們會及時通知您，但我希望我們能夠取得成功。

Maybe, Sean, and if I could just squeeze one last one, just the 4% to 6% growth rate. Should we be thinking about that as kind of the CAGR from '24 to '27? Are you looking at like kind of midpoint of guidance? Anything in particular as far as base?

也許，肖恩，如果我能擠出最後一個，那就是 4% 到 6% 的成長率。我們是否應該將其視為 24 年至 27 年的複合年增長率？您是否正在尋找類似的指導中點？就基礎而言，有什麼特別的嗎？

Yes. I think it's yes to most of that. I mean it is a '24 to '27, Chris. I think the way to think about that 4% to 6% is we're in a period of balance sheet repair. We're in a period of being very disciplined with capital. So that's why that range came down a little bit, I think, from historical for the company. But it is that period. We feel comfortable. On one side of the fence, we have businesses growing quite a bit. You've got 9% rate base growth. You got nat gas performing really well. So we do think of it as trying to -- we've got a midpoint in there, but it is '24 to '27.

是的。我認為大部分都是肯定的。我的意思是，這是 24 到 27 年間，克里斯。我認為考慮 4% 到 6% 的方式是我們正處於資產負債表修復時期。我們正處於一個對資本非常嚴格的時期。因此，我認為，這就是為什麼該範圍比該公司的歷史水平略有下降。但就是那個時期。我們感覺很舒服。一方面，我們的業務成長相當快。您的基礎成長率為 9%。你們的天然氣表現非常好。所以我們確實認為它是在嘗試——我們在那裡有一個中點，但它是'24到'27。

Congratulations on the announcement and all the help throughout the process.

恭喜您的宣布以及整個過程中的所有幫助。

(Operator Instructions)

（操作員說明）

Our next question comes from the line of Paul Fremont of Ladenburg.

我們的下一個問題來自拉登堡的保羅·弗里蒙特。

I guess my question relates to the Midstream & Marketing. So if total margin is up $41 million and Marketing is $46 million, can you just walk us through what would be sort of the -- what the chart would look like if it was just Midstream and what the sort of comparator would look like?

我想我的問題與中游和行銷有關。因此，如果總利潤增加 4100 萬美元，行銷增加 4600 萬美元，您能否向我們介紹一下如果只是中游，圖表會是什麼樣子以及比較器會是什麼樣子？

Yes, Paul, this is Sean. A couple of things. I think you're looking at a big increase. The drivers, the biggest driver, I think, as we tried to allude, is capacity values on our -- we've got basis differentials on the gas pipelines that we've contract and we saw some pretty good spreads on the basis. So we were able to take advantage of those contracts, those capacity contracts. And that drove a significant portion of the value. I think the other piece to consider is we have a storage business. If you look at this year, that storage business was in the black and last year, based on the timing of the contracts, we lost money.

是的，保羅，這是肖恩。有幾件事。我認為您正在看到大幅增長。我認為，正如我們試圖暗示的那樣，驅動因素，最大的驅動因素是我們的產能價值——我們在簽訂合約的天然氣管道上有基差，並且在此基礎上我們看到了一些相當不錯的價差。所以我們能夠利用這些合同，那些產能合約。這推動了價值的很大一部分。我認為另一件需要考慮的事情是我們有儲存業務。如果你看看今年，儲存業務是獲利的，而去年，根據合約的時間安排，我們虧損了。

So that's one of the bigger drivers as well. You had a loss sitting in '23 and you had a modest earnings this year. Those are the 2 biggest drivers of that $48 million. I know you didn't ask about it, but the other highlight would be that OpEx across the company. We see operating costs coming down. There's a pretty big focus on that. And the Midstream business contributed to that goal as well.

所以這也是更大的驅動因素之一。你在 23 年經歷了虧損，而今年你的收入卻微薄。這是這 4800 萬美元的兩個最大驅動因素。我知道您沒有問過這個問題，但另一個亮點是整個公司的營運支出。我們看到營運成本正在下降。人們非常關注這一點。中游業務也為此目標做出了貢獻。

So hopefully, that answers your question, but those are the drivers of what is happening in the Energy Services business.

希望這能回答您的問題，但這些是能源服務業務中正在發生的事情的驅動因素。

Okay. I guess I'm still not understanding. So was Midstream up quarter-over-quarter by itself, if you exclude Marketing from the picture?

好的。我想我還是沒明白。那麼，如果您將行銷排除在外，中游業務是否會單獨實現季度環比成長？

If you exclude Marketing from the picture, Midstream was up quarter-over-quarter, yes.

如果您將行銷業務排除在外，那麼中游業務環比增長，是的。

And by how much?

增加多少？

It's going to be a much -- the majority of the gain was the Marketing side of the equation. So it's going to be less than $10 million.

這將是一個很大的收益——大部分收益來自於行銷方面。所以它將少於 1000 萬美元。

Okay. And then I guess, one of your peers seem to experience a significant uplift in storage margins during the quarter. Did you experience any significant changes in storage margins?

好的。然後我猜想，您的一位同行似乎在本季度經歷了儲存利潤率的顯著提升。您是否經歷過儲存空間的顯著變化？

No. As I mentioned, we were positive. We saw some gains in storage. I wouldn't call them outsized gains, but the big delta on the storage business was the fact that we had losses last year. So a solid quarter from a storage perspective, but I wouldn't say it was outsized gains.

不，正如我所提到的，我們持積極態度。我們看到儲存方面取得了一些進展。我不會稱之為巨大的收益，但儲存業務的最大增量是我們去年虧損的事實。從儲存的角度來看，這是一個穩定的季度，但我不會說這是巨大的收益。

And then, I guess, last question with sort of very strong rate base growth and sort of the time that it's going to take you to sort of focus on balance sheet repair. Have you considered the possibility of issuing equity, essentially rebasing and doing the balance sheet repair upfront as opposed to doing it sort of over time?

然後，我想，最後一個問題涉及非常強勁的利率基礎成長，以及您需要花一些時間來關注資產負債表修復。您是否考慮過發行股票的可能性，本質上是重新調整基礎並預先修復資產負債表，而不是隨著時間的推移進行修復？

Yes. We've considered many, many scenarios, Paul. I think at the moment, in our written remarks, I believe we've mentioned that equity, we don't have equity in the equation currently, but we are definitely taking a lot of steps to improve the balance sheet. We're doing a lot of cost reductions. We're being very careful on where we're going to deploy capital. We did announce that we're going to hold the growth on the dividend flat. So we're doing -- and lastly, we're looking at some portfolio optimization to generate cash. So those are the avenues we're using to not put debt on, improve the balance sheet at the moment. Right now, we do not have equity in the equation.

是的。保羅，我們考慮了很多很多場景。我認為目前，在我們的書面發言中，我相信我們已經提到了股權，目前我們在等式中沒有股權，但我們肯定會採取很多措施來改善資產負債表。我們正在大量降低成本。我們對資本的配置非常謹慎。我們確實宣布我們將保持股息成長不變。所以我們正在做——最後，我們正在考慮一些投資組合優化來產生現金。因此，這些都是我們目前用來避免負債、改善資產負債表的途徑。目前，我們在等式中沒有公平性。

I am showing no further questions at this time. I would now like to turn it back to Mario Longhi for closing remarks.

我目前沒有提出任何進一步的問題。現在我想請馬裡奧隆吉 (Mario Longhi) 發表閉幕詞。

I want to thank everyone for taking the time to participate with us in this call, and we look forward to the next conversation we're going to have. So I wish everyone a good day.

我要感謝大家抽空與我們一起參加本次電話會議，我們期待下一次對話。所以我祝大家有美好的一天。

All right. This concludes the program, so thank you for your participation in today's conference. You may now disconnect.

好的。本次會議到此結束，感謝您參加今天的會議。您現在可以斷開連線。