UGI Corporation (NYSE:UGI) Q2 2022 Earnings Conference Call May 5, 2022 9:00 AM ET

Company Participants

Tameka Morris - Director of Investor Relations

Roger Perreault - President, Chief Executive Officer, Executive Vice President of Global LPG

Thaddeus Jastrzebski - Chief Financial Officer

Conference Call Participants

Kody Clark - Bank of America

Marc Solecitto - Barclays

Operator

Hi, and welcome to UGI Corp. Q2 2022 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]

I would now like to turn the conference over to your speaker for today. Tameka Morris, you may begin.

Tameka Morris

Good morning, everyone, and thank you for joining our fiscal 2022 second quarter earnings call. With me today are Roger Perreault, President and CEO; Ted Jastrzebski, CFO; and Bob Beard, Executive Vice President, Natural Gas, Global Engineering & Construction and Procurement.

Roger and Ted will provide an overview of our results and the entire team will then be available to answer your questions. 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.

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.

Now, I'm pleased to turn the call over to Roger.

Roger Perreault

Thank you, Tameka and good morning, everyone. On today's call, we will provide a business update, review our financial results for the quarter and discuss the outlook for the rest of this fiscal year before concluding with a question-and-answer session. Let's start with an overview of market conditions and UGI's financial results in our fiscal year second quarter. While we continue to operate in a dynamic macroeconomic and geopolitical environment, our business has shown tremendous resiliency and made good strides on several key strategic priorities.

For the fiscal second quarter, UGI reported adjusted EPS of $1.91, and our reportable segments delivered adjusted EBIT of $631 million, which was fairly consistent with the prior fiscal year. We saw strong results from our natural gas businesses largely due to incremental earnings from our recent acquisitions, Mountaineer and Stonehenge. UGI International reported higher LPG margin as the business worked to recover the significant increases in commodity costs. In addition, we began to realize benefits from the several expense control actions implemented during the quarter. This performance partially offset the lower delivered volumes at AmeriGas and decline in energy marketing margin at UGI International. For the full fiscal year, we expect adjusted EPS for fiscal 2022 to be within a revised guidance range of $2.90 to $3 inclusive of the effects of margin management and expense control actions implemented in the first quarter, and we expect to see benefits throughout the year.