UGI CORP /PA/

UGI CORP /PA/ Annual Report - How They Did This Year (Updated)

Hey there! Let’s break down UGI’s year in plain English. Think of this as a chat over coffee about whether this company’s worth your hard-earned cash.

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1. What does UGI do, and how was their year?

UGI (NYSE: UGI) sells energy—mostly natural gas, propane, and electricity—to homes and businesses. This year was a mixed bag. They turned a profit, but high energy prices and supply chain issues squeezed their margins.

Key details:

• They’re a Large Accelerated Filer with the SEC (meaning they meet strict financial reporting standards).
• Have 215.3 million shares outstanding, traded on the NYSE under UGI.

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2. Did they grow? Show me the money!

• Profit per Share:
  • Basic EPS: Uses 214.9 million shares (up 1.7% from 2023).
  • Diluted EPS: Accounts for potential new shares (215.3 million shares, just 0.3% higher than basic).
    Translation: Slight share growth diluted profits a tiny bit, but it’s not a red flag.
• Cash Flow: $1.1 billion in operating cash flow.
• Spending: Invested $974 million in infrastructure (pipelines, storage, etc.).

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3. Where the Money Comes From

• Midstream & Marketing: Quietly making green moves:
  • Partnered with Aurum Renewables and MBL Bioenergy to turn organic waste into clean energy.
  • Expanded natural gas infrastructure via Pine Run Midstream.
• Other Segments: AmeriGas (propane), Utilities, and International divisions remain core profit drivers, though the company didn’t break down specifics.

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4. Are they financially healthy?

• Transparency: Their financial controls are audited and SEC-approved—no funny business.
• Public Float: $7.08 billion worth of shares are actively traded, showing strong investor interest.
• Debt: Carries debt (like most utilities), but no immediate liquidity concerns noted.

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5. What’s next? 2024 expectations

• Renewables Watch: Their bioenergy projects are small today but could grow as governments push cleaner fuel.
• Guidance: Expects modest growth and steady dividends (they’ve paid shareholders for 139 years straight).

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Risks to keep on your radar

• Energy price swings (hurts margins).
• Euro volatility (they operate in Europe).
• Slow adoption of renewables could limit green projects.

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Bottom line for investors

UGI is a “tortoise” stock—not flashy, but reliable.

👍 Pros:

• Steady dividends (139-year streak!).
• Balanced mix of traditional energy and renewables.
• Audited finances add trust.

👎 Cons:

• Vulnerable to energy price swings.
• Limited details on European operations and some business segments.

Who should invest? Income-focused folks who want stability over explosive growth. Keep an eye on their renewable projects and energy costs.

TLDR: Slow-and-steady income stock. Not for thrill-seekers, but a solid pick for dividend lovers.

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Got questions? Drop me a note—happy to help! 👋

Note: UGI’s annual report lacked depth in some areas (like segment specifics), which could mean less transparency than some investors prefer.